Identifies factors preventing the education finance system from supporting high-level student learning. Recommends transparent, flexible, and strategic funding mechanisms and practices, including student-based funding and school-linked accounts.
- Successful Strategy: Delivering resources transparently and flexibly, by itself, can remove many of the impediments associated with conventional finance systems.
- Observation: Convert federal, state, and local general and categorical dollars into "student-based funding" that supports students' basic and special needs, and adjust this amount for regional cost differences.
- Observation: Create and support information systems that link student performance, finance, human resource, and family/community information.
- Observation: Strengthen charter laws, or create other mechanisms, to allow outside-the-box experiments on resource and school options.
- Observation: Adapt resources to local needs. This requires local educators to consider the relative advantages of resource options.
- Challenge: Where educators have good ideas about matching resources with needs, they often lack the flexibility to use resources in those effective ways. Targeted spending programs and traditional collective bargaining agreements apply one-size-fits-all solutions to schools facing different challenges and levels of funding.