Cincinnati Public Schools is among only a few school districts nationwide to pioneer the use of student-based budgeting. After three years of discussion and development, student-based budgeting — a new way of distributing resources — took effect in the 1999-2000 school year.
Unlike the previous centrally controlled allocation system, which resulted in wide swings in funding levels from school to school, dollars now follow the student under student-based budgeting. A key premise of student-based budgeting is that all students with the same level of need receive the same level of funding within school categories. Money to schools follows the students — meaning a school's budget is tied to its enrollment — and schools determine how allotted money is spent.
The bottom line is greater equity for students and schools. By equalizing the per-pupil funding amounts within major student categories, the district took an important step toward closing the equity gap that existed among schools.
The primary focus is improving student achievement, to help all students meet or exceed standards. The district is now funding the student, not the school, so that every student with the same educational need receives the same dollars, even if that student moves to another school. Before student-based budgeting, the district funded staff to go to a school to teach.
Besides being a fairer system of funding schools, student-based budgeting is designed to motivate schools to keep current students and attract additional ones. Enrollment is measured three times a year, with budgets adjusted accordingly. Revenue is adjusted for decreases as well as increases in enrollment.
Student-based budgeting also offers schools a tool to improve student performance. Research indicates that authority over budgeting is among the characteristics of schools that produce higher levels of student achievement.
Student-based budgeting ties a school's funding to its enrollment. As a result, the majority of each school's funding — 75 to 80 percent — is distributed through student-based allocations.
Because it's not feasible to entirely fund schools on a per-student basis, several other funding categories are included in a school's budget. The budget categories for Student-based Budgeting are:
Per Student. The bulk of each school's funding is allocated on a per-student basis. These funds are used to pay for essential personnel for classrooms and educational support, and for administrative, clerical and maintenance positions as well as routine instructional and administrative goods and services. Students at different grade levels are given different weights. Some groups of students such as gifted, students with disabilities, limited English proficiency, low income or vocational receive higher weights because of higher educational costs.
Non-Standard Special Education. Schools receive funding beyond the standard special-education allocation if necessary to meet the needs of students with disabilities.
Actuals. Schools receive funding to cover the actual costs of certain expenses, such as transportation and utilities.
Any budget surpluses schools accumulate also can be carried over to the following school year. In the past, schools have been able to carry over only a limited amount of non-personnel funds. A few subsidies are available such as assistance for small schools with enrollments of 300 students or less. Schools also may gain additional revenue from student-fee incentives or collecting lost book fines.
The student-based budgeting system is reviewed and adjusted periodically.