2008-09 Pennsylvania Education Budget Benefits Children, Schools and Taxpayers; Lays Groundwork for Long-Term Funding Adequacy

Pennsylvania's new education budget lays the foundation for academic success for all students by providing the largest increase in basic education funding in at least two decades, while also introducing a needs-based school funding formula that directs state dollars into proven programs that reap results for our children, Governor Edward G. Rendell said.

The spending plan approved today also means further relief to property owners, by increasing the state's share of school funding and lessening school districts' reliance on property taxes as a revenue source.

"We now begin a better way of funding our schools -- a system where fairness is the benchmark, accountability is the norm, and academic success for all students is the end result," the Governor said. "The General Assembly has taken a major step forward by setting a goal in law to meet the state's commitment to adequate school funding over the next six years."

The budget includes an additional $347 million in Pre-K-12 and higher education funding, a 3 percent increase from last year.

The new budget introduces a predictable state funding formula for the first time in nearly two decades. It increases funding for basic education by $274 million, or 5.5 percent, while also continuing to fund successful initiatives that are benefiting children from early childhood through graduation.

"This historic funding formula is a major step toward the ultimate goal of providing every child and every school with the resources needed to ensure academic success," Governor Rendell said. "For too long, the quality of education across the commonwealth has been based more on the wealth of the community rather than the potential of the child."

The state's additional investments in Pennsylvania's schools also will help alleviate the need for local property tax increases in school districts. As the state's share of school funding has dropped in recent decades, local property taxes have been forced to rise. The property tax relief law that Governor Rendell signed in 2006 will save taxpayers nearly $800 million this year, and enacting fair, long-term school funding at the state level will help keep property tax increases in check.

The funding formula will drive additional state resources to each of Pennsylvania's 501 school districts, with every district being guaranteed at least a 3 percent increase in basic education funding. Larger increases will go to those districts identified in the General Assembly's Costing-Out Study as needing additional resources to aid student achievement.

The formula will aid school districts across the commonwealth, in all regions, particularly those with high tax burdens or low wealth. The statewide benefits to districts include:

-- In northeast Pennsylvania, the five districts with the largest adequacy gaps will see an average of $364 per pupil in additional state funding next year, or more than $9,000 in additional resources for every class of 25 students. For the seven school districts with the highest tax burden, it would take an average 11 percent property tax increase to generate school revenues equal to this year's basic education subsidy increase.

-- In southwest Pennsylvania, the 10 districts with the largest adequacy gaps will see an average of $230 per pupil in additional state funding next year, or about $5,750 in additional resources for every class of 25 students.

-- In the five districts in the Erie region, where enrollment has increased in the last decade, this year's budget provides $4 million in state aid to reduce the burden on local taxpayers.

-- The five districts in the Harrisburg region with the largest adequacy gaps will see an average of $442 per pupil in additional state funding thanks to the new budget - more than $8,800 in additional resources for every class of 20 students.

-- In the 10 fastest-growing Lehigh Valley school districts, where enrollment has increased by more than 10 percent in the past decade, this year's budget provides $18 million in state aid to reduce the burden on local taxpayers.

In November, the General Assembly's Costing-Out Report provided -- for the first time ever -- a Pennsylvania-specific funding target for each school district by showing the level of resources needed to help every student succeed. The budget signed today begins implementing the legislature's findings with the additional $274 million in basic education funding as the first step toward what Governor Rendell hopes will be a long-term commitment to meeting the adequacy gap in every school district.

"Legislative leaders on both sides of the aisle are to be commended for recognizing that, even in difficult economic times, funding our schools is a must if we are to ensure Pennsylvania continues on a path to success," the Governor said. "Even in a lean year, we are enrolling more children in pre-kindergarten, expanding our innovative Classrooms for the Future program to reach more schools and putting more money into tuition grants to make college more affordable."

The education budget takes a long overdue approach to school funding by addressing the adequacy gap in each district, while also driving money into the neediest districts using a formula that stresses investments in proven school improvement strategies.

"Pennsylvania's progress in increasing student achievement over the past five years has made us a national leader," the Governor said. "This year's budget will continue to fulfill our commitment of investing in the programs that are proven to help students learn, while also helping homeowners gain further relief from property taxes."

Among the benefits of this new budget on various school districts:

-- The additional funding will allow 1,380 more students in the Reading School District to receive quality full-day kindergarten and pre-k programs by hiring 22 new early childhood teachers.

-- The Pleasant Valley School District in Monroe County will be able to expand curriculum offerings through online courses in subjects including trigonometry, economics, earth science and American history.

-- Erie City School District will be able to offer Spanish and Chinese instruction to 1,785 elementary students. Research has demonstrated the study of world languages increases student performance in reading and mathematics.

-- Pocono Mountain School District will use some of its state funding to target small group tutoring to 1,323 additional students who are struggling to meet proficiency. The district will be able to provide individualized support to these students while also maintaining a low student-to-teacher ratio.

-- About 5,650 students in the Allentown City School District will be able to receive targeted supports in math and reading through new curriculum and teacher professional development. The district's PSSA scores indicate that, while elementary students are slowly progressing, secondary reading achievement remains static, a statistic that the new funding can help improve.

-- Perry County's Susquenita School District will expand its courses to include instruction in culinary arts, textile arts and child development.

Education Secretary Gerald L. Zahorchak said the new education budget will enable Pennsylvania to maintain its momentum toward ensuring every child graduates with the skills and academic proficiency needed to succeed beyond high school.

"Our continuous goal has been to provide adequate educational resources that will reach children early, help sustain their momentum throughout school and graduate with the skills and knowledge they need to excel in the global economy," Zahorchak said. "This budget continues to build on the successful investments we have made in public education."

In addition to the historic basic education funding formula, other important budget initiatives include:

EARLY CHILDHOOD EDUCATION

The 2008-09 education budget invests $86.4 million in Pennsylvania Pre-K Counts, a 15 percent increase from 2007-08, to enable 800 more children to participate in the commonwealth's hallmark, voluntary pre-kindergarten initiative and to respond to parents' requests for more full-day enrollment opportunities among some of the existing half-day programs.

CLASSROOMS FOR THE FUTURE

The budget includes $45 million for technology and $15 million for professional development to continue the multi-year rollout of Classrooms for the Future. Thousands of high school English, math, science and social studies classrooms across Pennsylvania have been outfitted with laptop computers, electronic "smartboards" and other high-tech tools so students can graduate with the 21st Century skills needed to compete and succeed in a global economy. Because of the overwhelming demand from Pennsylvania's teachers and students, Governor Rendell said he hopes to continue the expansion of Classrooms for the Future in the 2009-10 budget, enabling all interested high schools to benefit from this initiative.

SCIENCE: IT'S ELEMENTARY

The groundbreaking effort to promote science learning in elementary schools will receive $14.5 million -- a 7.4 percent increase -- in 2008-09, enabling thousand of more students to benefit from this hands-on learning experience and be ready for higher-order science classes in middle and high school. Since its start in 2006, Science: It's Elementary has helped introduce the core concepts of science to the next generation of scientists, engineers and inventors at an earlier age. Students in Science: It's Elementary classrooms score an average of 15 points better on science assessments than their non-participating peers.

DUAL ENROLLMENT

Pennsylvania's Dual Enrollment program is designed to serve a wide-range of students, but particularly those who attend college at disproportionately low rates. The budget continues the $10 million in annual funding for Dual Enrollment, which allows high school students to take college courses through community colleges and four-year colleges and universities. By encouraging the participation of students who might otherwise be unlikely to attend college, the Dual Enrollment program helps ensure all students have the opportunity to earn a post-secondary degree and become self-sufficient, productive taxpayers.

HIGHER EDUCATION

The budget continues to invest in the commonwealth's higher education institutions to offer affordable and accessible post-secondary education in Pennsylvania. State funding for student tuition grants through PHEAA will increase by $21.2 million, or 5.5 percent. The state's community colleges will receive a 3 percent operating increase, which will bring our investment to $281 million. An additional $14.5 million will be provided to the State System of Higher Education to keep the tuition increases at our four-year state universities at record lows.

The increases in state-funded student tuition grants and additional support for the SSHE will enable families to save an average of nearly $200 per student, and up to $600 for the poorest families, thanks to the expansion of the federal Pell Grant program.

Graphics, budget highlights and additional details about the 2008-09 state budget are online at http://www.budget.state.pa.us.

The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit http://www.governor.state.pa.us.

Contact:

Chuck Ardo

717-783-1116

Michael Race (PDE)

717-343-5087