So far in our #OUSDBudget Real Talk series, we have asked and answered the following questions:

  • How much money does OUSD spend overall and per pupil?
  • How much does it spend on schools versus centrally?

Now we look at the question of equity.

“Equity” is a frequently used term in Oakland; some might even say it’s over-used and misused. OUSD’s Deputy Chief for Equity, Chris Chatmon, provides a definition that is succinct, free of jargon, and spot-on: Provide everyone access to what they need to be successful.

So, when we ask if OUSD’s spending is equitable, we’re asking: is OUSD allocating more resources to students who need more support to be successful? This is a complex and challenging question, but fortunately, last year’s ERS report was quite illuminating. And unfortunately, the answer is: not really.

The key slide is #36.

This slide shows the per pupil spending for schools at each grade level, after weighting the spending based on the student needs at each school, arranged by grade level and then by percentage of Free/Reduced Lunch (FRL) participation, the most commonly used indicator for the poverty level of students need. In a perfectly equitable system, the weighted per pupil spending would be even across all schools in the system.

It’s worth noting that the variation in per weighted spending in OUSD is less than the variation without weighting, suggesting that the incremental supports for needier schools are creating a somewhat more equitable environment, but there’s still a surprising amount of variability and certainly no obvious trend showing needier schools getting more.

The state of California’s new Local Control Funding Formula (LCFF) is intended to provide more resources to students who need more support. So OUSD receives more dollars per student for high need students – low-income, English learners, and foster students. OUSD also receives more dollars for the schools that have a high concentration of low-income, English learners, and foster students.

So why would we see so much variability in per pupil spending between sites? Because the money all goes to Oakland Unified as a district, not to each individual school, and district staff use internal allocation formulas to determine the resources that each school receives. At OUSD:

  • schools receive a certain allocation of Full Time Equivalent (FTE) people of different job types (e.g. teacher, assistant principal) based on student-to-staff ratios;
  • Those FTE are added to school budgets based on average salaries, not actual salaries.

The result of this “base allocation” approach is that the district spends less per pupil in schools that have a higher proportion of beginning teachers (i.e. those with lower salaries). And unfortunately, in general, schools with higher poverty levels tend to have more novice teachers. You can see this information yourself- look up teacher experience data by school on OUSD’s public dashboards.

And, while there are exceptions, schools with a higher proportions of English Language learners also tend to have fewer experienced teachers and thus lower per pupil expenditures, as visible on Slide #26:

According to OUSD, the reason they use average not actual salaries in the base allocation is to prevent principals from hiring new teachers instead of experienced teachers for financial reasons– although actual salaries were used several years ago.

After the “base allocation” of staffing is completed, OUSD then distributes remaining funds available to each school via several district-created allocation formulas– based on the grade levels served

($175-$300 per pupil), number of “LCFF eligible” students,[1] current School Performance Framework tier ($70-$215 per pupil), and on “Z score,” which the district uses to measure challenging “environmental factors” such as neighborhood crime ($25K – $100K per school). This part of the budgeting process is commendable, delivering on an intention that students with higher needs should receive some additional resources. But, because running schools requires a lot of people, the “base staffing allocation” uses up more than 85% of unrestricted General Fund resources,[2] leaving less for this equity-driven redistribution. And, school sites end up with less flexibility on how they spend the governmental funding that their students generate for the district.

When talking about school site funding equity, many people wonder about the impact of parent fundraising as well. Parent fundraising tends to exacerbate inequity, since schools with more affluent families are able to raise much more per student. Here’s a slide similar to what we’ve seen before, but ordered by total school funding, including private fundraising. With few exceptions, the biggest raisers seem to extend their “lead” in terms of funding:

There are some nascent efforts to address this inequity in private fundraising, but nothing on the multi-million dollar order needed to truly tackle the problem. We hope to see more efforts, but any will likely face serious challenges as described in this recent NY Times article.

In any case, sharing the wealth of bake sales and walk-a-thon dollars isn’t enough to get schools to an equitable distribution of resources. And, these

patterns of funding inequity are not unique to OUSD. Researchers recently found that LAUSD has diverted money from high need elementary students, and Public Advocates filed a complaint against Long Beach USD for not equitably using resources to serve high-need students. The highly regarded Oakland-based research and advocacy group EdTrust-West recently released a report highlighting the challenge.

However, some California districts have found ways to use their budgeting and internal resource allocation process to increase equity and ensure students get “access to what they need to be successful.” We call on OUSD’s leadership to do the same for Oakland students.

Next in the series: unpacking some other big financial challenges, including Special Education, pension obligations, and the impact of facilities. We’d also love to hear what questions you’re hoping we’d write about. Please let us know by commenting on our Facebook and Twitter– or just e-mail us. We’re also open to elevating the voice of others who would like to offer a perspective on the #OUSDBudget as a guest author. Let us know if you’re interested!

[1] After reviewing OUSD budget presentations, we found formulas for most of the allocations but couldn’t find the formula for how LCFF supplemental funds are allocated, nor Title I and other federal categorical monies. These funds can be significant for some Oakland schools.

[2] Thank you to OUSD for their work to increase fiscal transparency; this calculation come from OUSD’s new Fiscal Transparency website. Click on “Budgeted Expenses Dashboard,” select “General Fund” from the “Fund” drop down menu, select “Unrestricted” from the “Resource Type” drop down menu, and add up the Certificated salaries (43.3%), Classified salaries (17.5%) and Employee Benefits (25.6%).

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