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What Business Leaders Need to Know about the Courts and
School Finance
Alfred A. Lindseth
Sutherland, Asbill & Brennan LLP
Q: Based on your best guess, what is the average amount of money spent each
year for a child in public schools in your school district (with prompt)?
$10,400
$5,262
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Average ActualSpending
Average EstimatedSpending
Source: Howell & West, School Spending, Education Next, Summer, 2008, p. 39.
$47,424
$33,054
$0
$10,000
$20,000
$30,000
$40,000
$50,000
Average ActualTeacher Salaries
Average Estimatefrom Survey
Q: Based on your best guess, what is the average annual salary of a public school teacher in your state?
Source: Howell & West, School Spending, Education Next, Summer, 2008, p. 39.
Types of Litigation
• Federal Court lawsuits to desegregate school districts in south and north.
• State Court “equity” lawsuits designed to equalize spending between school districts of a state.
• State Court educational “adequacy”’ lawsuits to require states to fulfill their obligations under the “education clause” of the state constitution.
Examples of Constitutional Language
• Provide a system of “free common schools” (New York)
• Shall “cherish the interests of literature and the sciences” (Massachusetts)
• Make “suitable provision for finance of the educational interests of the state” (Kansas)
• Establish a “complete and uniform” and “thorough and efficient system” (Wyoming)
Adequacy Cases Dismissed on Separation of Powers Grounds
• Florida• Illinois• Nebraska• Oklahoma• Oregon• Colorado
• Alabama• Rhode island• Pennsylvania• Ohio• Kentucky (II)
Plaintiffs’ Victories(mostly from 1989 to 2005)
• Arizona (facilities)• Arkansas• Connecticut• Kansas• Montana• New Jersey• Kentucky (I)• Maryland (Consent
Order)
• New York• North Carolina• Wyoming• Massachusetts (I)• Vermont• New Hampshire• Washington*
Figure 2: Real Spending per Pupil: Wyoming and U.S. Average
$0
$2,500
$5,000
$7,500
$10,000
$12,500
$15,000
$17,500
1986 1991 1996 2001 2006
Wyoming
U.S. average
court decision
WY
U.S.
Defense Victories(mostly since 2005)
• Arizona (operational expenses)• Texas• Alaska• South Carolina• Massachusetts (II)• Louisiana• South Dakota• Missouri
Did students in states which implemented large scale court-ordered funding increases for K-12 education significantly improve their performance, relative to students in other states, during the period of the remedy?
NAEP Performance of Whites, Wyoming and U.S. Average
200
225
250
275
300
4thRead,92-07
4thMath, 92-
09
8thMath, 92-
09
National average
Wyoming
NAEP Performance of Hispanics, Wyoming and U.S. Average
175
200
225
250
275
4thRead,92-07
4thMath, 92-
09
8thMath, 92-
09
National average
Wyoming
Per Pupil ExpendituresWyoming versus its Neighbors, 2007*
$16,386
$12,424$10,815 $10,607
$0$2,000$4,000$6,000$8,000
$10,000$12,000$14,000$16,000$18,000$20,000
Wyo. Mont. N. Dak S. Dak
Ad
jus
ted
PP
E
*Adjusted for regional cost differences
Source: 2010 Quality Counts Issue, Education Week, Jan. 14, 2010, p. 48
NAEP Performance of Blacks, Kentucky and U.S. Average
175
200
225
250
275
4th Read,92-07
4th Math,92-09
8th Math,92-09
National average Kentucky
NAEP Performance of Whites, Kentucky and U.S. Average
200
225
250
275
300
4th Read,92-07
4th Math,92-09
8th Math,92-09
National average Kentucky
New Jersey and National NAEP Trends for Black Students1992 to 2007/2009
191
203192
222
236
260
198
212
198
228
242
267
150
170
190
210
230
250
270
290
4th Read, 92-07 4th Math, 92-09
8th Math, 92-09
National New J ersey
191
184
192
198197
199
203
198
191
200199
212
170
175
180
185
190
195
200
205
210
215
1992 1994 1996 1998 2000 2002 2003 2005 2007
National New Jersey
New Jersey and National NAEP Trends for Black Students, 4th grade reading,
1992 to 2007
New Jersey and National NAEP Trends for Hispanic Students1992 to 2007/2009
194204 201
227
247
266
195
214204
232
245
272
150
170
190
210
230
250
270
290
4th Read, 92-07 4th Math, 92-09
8th Math, 92-09
National New J ersey
Massachusetts and National NAEP Trends for White Students, 1992 to 2007
Massachusetts and National NAEP Trends for Black Students, 1992 to 2007
Courts have Refused to Consider other
Causes of Poor Performance:
• Teacher compensation unrelated to success in classroom
• Restrictive union work rules• Tenure rules affecting ability to
terminate incompetent teachers• Waste and inefficiency in local
operations• Perverse incentives
The Time is Ripe for True Reform
• Court orders are no longer as dominant as they were in many states
• Fiscal constraints demand solutions, other than increased spending
• The Obama administration is supporting more innovative approaches