Equity and Adequacy: A Funding Crisis in the Tennessee Education System.

140 Pages·2015·0.39 MB·English

by  Scott F. Collins

East Tennessee State University
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Electronic Theses and Dissertations Student Works
12-2004
Equity and Adequacy: A Funding Crisis in the
Tennessee Education System.
Scott F. Collins
East Tennessee State University
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Collins, Scott F., "Equity and Adequacy: A Funding Crisis in the Tennessee Education System." (2004).Electronic Theses and
Dissertations.Paper 951. https://dc.etsu.edu/etd/951
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Equity and Adequacy: A Funding Crisis in the Tennessee Education System

A dissertation
presented to
the faculty of the Department of Educational Leadership
and Policy Analysis
East Tennessee State University

In partial fulfillment
of the requirements for the degree
Doctor in Education

by
Scott F. Collins
December 2004

Dr. Louise MacKay, Chair
Dr. Cecil Blankenship
Dr. Terry Tollefson
Dr. Russell West

Keywords: General and Efficient, Uniform, Equitable Allocation, Reasonably Equal, Vertical
Equity, Equal Opportunity to a Quality Education, Adequate
ABSTRACT

Equity and Adequacy: A Funding Crisis in the Tennessee Education System
by
Scott F. Collins

Tennessee is experiencing a budget crisis related to the dollar amount per-pupil expended on
kindergarten- through 12th-grade education when compared to other states. Public schools
across America are operating in a time of increased expectations. Recent legislative initiatives at
both the state and federal level have created new systems of testing and performance standards
that will hold schools and teachers accountable for students' achievement. Given the rapid
changes that are being made, many state policymakers have noted the importance of designing
better financial schemes for public schools with sufficient resources to meet the demand for
better education; however, funding and accountability are difficult when creating an alignment
between the two.

Issues surrounding the financing of public education are complicated. Whereas a quality
education is universally understood to be an essential component of students' development and
social mobility, the specific policies surrounding the allocation of funds to school districts in
Tennessee are complex and based on formulas that are often only understood by experts.

The purpose of this qualitative study was to explore the perceptions of various school directors
and administrators in both small and large systems across the state as to the best way to fund
kindergarten- through 12th-grade education in a more adequate and equitable manner. Data were
collected through audio-taped interviews and transcribed for inductive analysis.

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The participants' perceptions about their level of satisfaction of the current Basic Education
Program's (BEP) funding of kindergarten- through 12th-grade education in Tennessee were very
favorable. Fewer than 90% of school district officials agreed that there should be an established
set of criteria that define a standard of adequacy. Because some schools need more money than
others do, participants said this inability to raise sufficient revenue must be addressed through
state legislation. All 20 participants stated that equity and adequacy remained a problem in the
BEP and each gave suggestions and identified some areas in which to begin correcting the
discrepancies. All 20 participants said that they thought the BEP was a much better funding
mechanism, overall, than the old Tennessee Foundation Program (TFP) for both large and small
systems.

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Copyright 2004 by Scott F. Collins
All Rights Reserved

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DEDICATION
This study is dedicated to my family, to my children, Chelcea and Lindsy, and to my
parents, Coy and Winnie. Thank you for your support and encouragement, but most of all your
love. I realize how blessed I am to have a family who is willing to let me be all I can be. To my
children, I pray that you will always set your goals very high and work hard to achieve them.
Your daddy will most certainly be your biggest fan and be proud of you always!
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ACKNOWLEDGMENTS
What a blessing I have had from so many people who supported me throughout this
process. It certainly would not have been possible without the encouragement of my family’s
love and patience. I thank my children, Chelcea and Lindsy, and my parents, Coy and Winnie
Collins, for pushing me to do it. Total commitment and endurance are the keys to getting
through such a program. I appreciate all of my friends for believing in me and providing a gentle
word of encouragement just when I needed it most.
I must thank my friends in the cohort program for helping me get through some very
difficult times and to my friend, Greg, who every Monday night, crossed the mountain and gave
me encouragement to continue. I thank you for this!
Finally, I want to thank the dedicated faculty of the Department of Educational
Leadership and Policy Analysis at East Tennessee State University. I am grateful to you for
providing me with the learning experiences in the program that will be useful throughout the rest
of my career. I have the greatest respect for my committee members, Dr. Louise MacKay, Dr.
Terry Tollefson, Dr. Cecil Blankenship, and Dr. Russell West. I extend a special thanks to my
chairperson and advisor, Dr. Louise MacKay, from whom I have learned so much. I appreciate
her suggestions, feedback, and her patience so much. Lastly, I must thank Dr. Ronald Lindahl,
who, during the screening process, kept pushing me to be in the program and Dr. Russell Mays,
who always gave me encouragement. I cannot express enough gratitude to my friend, Debby
Bryan, who typed all my interviews. Had it not being for her expertise and professionalism in
helping me with this dissertation, it would have been a nightmare. Again, thanks to all of you for
your help!
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CONTENTS

Page

ABSTRACT .................................................................................................................. 2
DEDICATION.................................................................................................................. 5
ACKNOWLEDGMENTS................................................................................................. 6

Chapter
1. INTRODUCTION ................................................................................................... 11
Definitions of Terms.............................................................................................. 13
Statement of the Problem....................................................................................... 15
Research Questions................................................................................................ 16
Limitations and Delimitations................................................................................. 17
Overview of the Study........................................................................................... 17
2. REVIEW OF LITERATURE.................................................................................... 19
Introduction........................................................................................................... 19
Definition of Equity and Adequacy........................................................................ 19
Legislative Responsibilities.................................................................................... 21
Cost to Local Governments................................................................................... 22
Formation of Tennessee School Systems for Equity............................................... 23
The Extent of Financial Disparity........................................................................... 25
Remedying Fiscal Equity Problems........................................................................ 25
Early Supreme Court Cases................................................................................... 27
Factual Patterns for Litigation................................................................................ 29
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Chapter Page

The Legal Basis for School Finance Litigation....................................................... 30
Property Tax Reform............................................................................................. 31
Tax Reform Issues................................................................................................. 33
Tennessee’s System of Taxation............................................................................ 34
Tax Resistance to Support the Plan........................................................................ 37
Room to Improve.................................................................................................. 38
Spending and Students' Performance...................................................................... 38
Students' Performance: Raising the Bar.................................................................. 39
An Overview of Kindergarten- Through 12th-Grade Education Finance................. 41
Money and Public Schools: How Much Does it Cost?............................................ 41
Determining Funding Formulas for Public Schools................................................. 43
Flat Grant........................................................................................................ 43
Power Equalization.......................................................................................... 44
Foundation Plan............................................................................................... 44
Full State Funding............................................................................................ 45
Summary............................................................................................................... 46
3. RESEARCH METHODOLOGY............................................................................... 48
Research Design.................................................................................................... 48
Selection of a Research Paradigm..................................................................... 48
Population and Sample.......................................................................................... 50
Data Collection...................................................................................................... 50
Data Analysis......................................................................................................... 51
4. ANALYSIS OF DATA............................................................................................. 53
Levels of Satisfaction With BEP Funding............................................................... 56
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Chapter Page

Distribution of BEP Funds: Adequacy and Equity.................................................. 72
Perceptions of Success of the BEP......................................................................... 77
Perceptions of the Strengths and Weaknesses of the BEP....................................... 83
Effects of the No Child Left Behind Act on the BEP.............................................. 87
Relationship Between School Funding and Students' Performance.......................... 91
Attracting and Retaining Highly-Qualified Teachers............................................... 97
Obligation of the State and Local Districts in Funding Education........................... 103
Participants' Overall Assessment of the BEP.......................................................... 108
Suggestions for Improvement of the BEP.............................................................. 111
5. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS FOR PRACTICE
AND FUTURE RESEARCH.................................................................................... 114
Findings................................................................................................................. 115
Levels of Satisfaction With BEP Funding......................................................... 116
Distribution of Funds: Adequacy and Equity.................................................... 117
Perceptions of Success of the BEP................................................................... 118
Perceptions of the Strengths and Weaknesses of the BEP................................. 119
Effects of the No Child Left Behind Act on the BEP......................................... 119
Relationship Between School Funding and Students' Performance.................... 120
Improving and Retaining Strong Highly-Qualified Teachers............................. 121
Obligation of the State and Local Districts in Funding Education...................... 122
Participants' Overall Assessment of the BEP..................................................... 123
Suggestions for Improvement of the BEP......................................................... 123
Conclusions........................................................................................................... 123
Equity.............................................................................................................. 123
Adequacy......................................................................................................... 124
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