President Biden’s Fiscal Year 2022 budget proposes $20 billion in funding for a new Title I Equity Grants program that has the potential to incentivize changes to school funding systems, with a primary goal of improving equity and driving resources to support students with the greatest needs. Eligible school districts and charter schools (local education agencies, or LEAs) receiving these funds can use them to address four priority areas:
- Address long-standing disparities between under-resourced school districts and their wealthier counterparts by providing meaningful incentives to examine and address inequalities in school funding systems.
- Ensure that teachers at Title I schools are paid competitively.
- Increase preparation for, access to, and success in rigorous coursework.
- Expand access to high-quality preschool for underserved children and families.
The first priority area focuses on funding equity, which means ensuring that districts and schools direct more resources to the students who need them the most. The Biden administration is looking to use the relatively small pot of federal education funds (as a share of total school funding) to push greater equity in the much larger pot of state and local school funding systems (which generate and distribute about 90% of total money for schools). Just as a small lever can move a large object, a targeted funding program could have an outsized impact with the right incentives. And that’s the potential of this ambitious proposal. But there’s still a lot to figure out, if and when this new program comes to fruition.
Title I is one of the largest federal funding streams for K-12 education and is primarily directed by a formula for schools and districts serving high proportions of low-income students to provide supplemental educational supports. Biden’s proposal would not change the structure or formula for Title I. Instead, it would create a new grant program on top of current Title I structures. This new grant would rely on a different allocation formula that targets a greater share of funds to LEAs with the greatest concentrations of poverty. This is significant, because it might signal a step towards changing the Title I formula as a whole.
The FY22 budget proposal is still in its early stages and requires congressional approval and a lot more work to iron out details. If this proposal is ultimately implemented, four key questions that advocates nationwide should be asking include:
1. Will recipients of these funds need to address all four priorities, or can they pick and choose?
School funding reform is challenging work that often requires a significant investment of political and financial capital. If states can opt to apply funds to other priorities that may be relatively easier to implement, what’s the incentive to engage in broad, meaningful funding reform?
2. What are the expectations for the state-level School Funding Equity Commissions and the plans they develop?
The proposal includes allocating $50 million to voluntary School Funding Equity Commissions. These state commissions would measure gaps in funding equity and adequacy, develop plans to address those gaps, and report progress on the milestones and metrics set forth in those plans. However, it’s not clear if the commissions are focused on allocations of funding through state funding formulas or the allocation of funds from districts out to schools at the local level, or both? These two processes are typically separate and have different equity challenges and potential remedies. Both allocation structures can force equity, and both can be politically and practically complex.
3. How do the school-level reporting requirements relate to similar requirements under current federal law? Does the Title I Equity Grants program represent a change to those provisions? If not, what does this FY22 proposal intend to achieve?
The process of defining a common definition of per pupil expenditure at the LEA or school level is more complex than it may sound on its face. Given that a similar provision aimed at promoting transparency regarding school-level spending already exists in law, it’s not clear what this proposal aims to achieve that’s different. Transparency can be a powerful tool for equity, but not if adding a new calculation muddies an already poorly understood concept.
4. Finally, how will the Title I Equity Grants program ensure that state plans for funding equity are effective for students with the greatest needs?
Some reporting language indicates that states will need to, “Demonstrate progress in improving the equity and adequacy of their funding systems to be eligible for future increases in funding.” Does that mean that future Title I allocations will include incentives for demonstrated progress toward equity (and adequacy) goals? Is this a carrot or a stick, how much funding might be somehow contingent, and how will “progress” be defined — especially to ensure that more funding is directed to student groups who need additional resources, including students with disabilities and English language learners?
The Biden administration’s Title I Equity Grants program brings welcome attention to a foundational issue for educational equity — ensuring that students who need the most resources receive them. While the FY22 proposal faces significant congressional and administrative hurdles, it highlights the need to address funding inequities in state and school district spending plans. Ultimately, the proposal has the potential to be an effective lever for change if it can set up meaningful incentives for states and districts and define success through prioritizing the needs of our most marginalized students.