for EDAD 540 - Financial Aspects of Education

(adapted from the NCES - National Council of Education Statistics website, http://nces.ed.gov/, the textbook (Financing Education in a Climate of Change. (1998).Burrup, Brimley and Garfield) and the Michigan Financial Data & Ranking Glossary of Terms http://www.state.mi.us/mde/reports/B1014/terms.html

 
Academic support: (See Expenditures.) .

Appropriations (federal funds): Budget authority provided through the congressional appropriation process that permits federal agencies to incur obligations and to make payments.

Appropriations (institutional revenues): An amount (other than a grant or contract) received from or made available to an institution through an act of a legislative body.

Auxiliary enterprises: (See Revenues.)

Average daily attendance (ADA): The aggregate attendance of students in a school during a reporting period (normally a school year) divided by the number of days that school is in session during this period. Only days on which the students are under the guidance and direction of teachers should be considered days that school is in session.

Average daily membership (ADM): The aggregate membership of a school during a reporting period (normally a school year) divided by the number of days that school is in session during this period. Only days on which the students are under the guidance and direction of teachers should be considered days that school is in session. The average daily membership for groups of schools having varying lengths of terms is the average of the average daily memberships obtained for the individual schools.

  B

Bilingual education: Programs in which students with limited English proficiency are taught using their native language.

 
Carnegie unit: A standard of measurement used for secondary education that represents the completion of a course that meets one period per day for one year.

Cohort: A group of individuals who have a statistical factor in common, for example, year of birth.

Combined elementary and secondary school: A school that encompasses instruction at both the elementary and secondary levels. Examples of combined elementary and secondary school grade spans would be grades 1-12 or grades 5-12.

Comprehensive reform: Efforts to improve education for all students by establishing high content and performance standards and redesigning the various components of the educational system in a coordinated and coherent fashion to support students' learning to the standards.

Constant dollars: Dollar amounts that have been adjusted by means of price and cost indexes to eliminate inflationary factors and allow direct comparison across years.

Consumer price index (CPI): This price index measures the average change in the cost of a fixed-market basket of goods and services purchased by consumers.

Control of institutions: A classification of institutions of elementary/secondary or higher education by whether the institution is operated by publicly elected or appointed officials (public control) or by privately elected or appointed officials and derives its major source of funds from private sources (private control).

Core subjects: A Nation at Risk recommended that all students seeking a high school diploma be required to enroll in a core curriculum called "New Basics." The core subjects included in this plan are 4 units of English; 3 units each of science, social studies, and mathematics; and 0.5 units of computer science.

Cost of college attendance: Cost of living for students attending postsecondary institutions, including tuition and fees, books, room and board, child care, transportation, and other miscellaneous expenses.

Current dollars: Dollar amounts that have not been adjusted to compensate for inflation.

Current expenditures (elementary/secondary): Expenditures for the day-to-day operations of the schools. Expenditures for items lasting more than one year (such as school buses and computers) are not included in current expenditures.

Current expenditures per pupil in enrollment: (See Expenditures.)

Current-fund expenditures: (See Expenditures.)

Current-fund revenues: (See Revenues.)

 
D

Dependent student: A student who under federal criteria is considered to be financially dependent on his or her parents or guardians. Most full-time students are considered dependent until they are 24 years old.

 
Educational and general expenditures: (See Expenditures.)

Enrollment: The total number of students registered in a given school unit at a given time, generally in the fall of a year.

Equality:

Equity (Horizontal equity): Fairness in relation to equal treatment of different people who are in the same circumstances.

Equity (Vertical equity). Justice or fairness in how individuals who are in different circumstances are treated. eg. in linking the amount of tax paid to personal income.

Expected family contribution (EFC): The amount that a family is expected to pay toward meeting the costs of postsecondary attendance (both students and parents of dependent students are expected to make contributions). This amount is determined through an analysis of need (i.e., the Congressional Methodology) and is based on taxable and nontaxable income and assets as well as family size, the number of family members attending postsecondary institutions, extraordinary medical expenses, and so forth. For dependent students, the EFC consists of both a parental contribution and a separately calculated student contribution. The minimum student contribution in 1988-89 was $700 for freshmen and $900 for other undergraduates.

Expenditures: Charges incurred, whether paid or unpaid, which are presumed to benefit the current fiscal year. For elementary/secondary schools, these include all charges for current outlays plus capital outlays and interest on school debt. For institutions of higher education, these include current outlays plus capital outlays. For government, these include charges net of recoveries and other correcting transactions other than for retirement of debt, investment in securities, extension of credit, or as agency transaction. Also, government expenditures include only external transactions, such as the provision of prerequisites or other payments in kind. Aggregates for groups of governments exclude intergovernmental transactions among the governments.

• Total Instructional Expenditure: The total basic, added needs, and adult education classroom instructional costs.
• Instructional Salaries: The total classroom instructional salary and fringe benefit costs for classroom instructional personnel.

Academic support: This category of college expenditures includes expenditures for support services that are an integral part of the institution's primary missions of instruction, research, or public service. Includes expenditures for libraries, galleries, audio/visual services, academic computing support, ancillary support, academic administration, personnel development, and course and curriculum development.

Capital outlay: The expenditures for property, and for buildings and alterations completed by school district staff or contractors.

Current expenditures (elementary/secondary): The expenditures for operating local public schools, excluding capital outlay and interest on school debt. These expenditures include such items as salaries for school personnel, fixed charges, student transportation, school books and materials, and energy costs. Beginning in 1980-81, expenditures for state administration are excluded.

Current expenditures per pupil in enrollment: Current expenditures for the regular school term divided by the total number of students registered in a given school unit at a given time, generally in the fall of a year.

Current-fund expenditures (higher education): Money spent to meet current operating costs, including salaries, wages, utilities, student services, public services, research libraries, scholarships, fellowships, auxiliary enterprises, hospitals, and independent operations. Excludes loans, capital expenditures, and investments.

Educational and general expenditures: The sum of current-fund expenditures for instruction, research, public service, academic support, student services, institutional support, operation and maintenance of plant, and awards from restricted and unrestricted funds.

Expenditures per pupil: Charges incurred for a particular period of time divided by a student unit of measure, such as enrollment, average daily attendance, or average daily membership.

 
Family income: The combined income of all family members 14 years old and older living in the household for the period of 1 year. Income includes money income from jobs; net income from business, farm, or rent; pensions; dividends; interest; social security payments; and any other money income.

Federal aid: Student financial aid provided through the federal government. This aid can either be provided by or administered by a federal agency. Federal agencies providing aid include the Department of Education, Department of Health and Human Services, Department of Defense, Veterans Administration, and the National Science Foundation. Federal aid can be in the form of grants, loans, and work-study aid.

Federal funds: Amounts collected and used by the federal government for the general purposes of the government. There are four types of federal fund accounts: the general fund, special funds, public enterprise funds, and intragovernmental funds. The major federal fund is the general fund, which is derived from general taxes and borrowing. Federal funds also include certain earmarked collections, such as those generated by and used to finance a continuing cycle of businesstype operations.

Fiscal year: The yearly accounting period for the federal government, which begins on October 1 and ends on the following September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 1992 begins on October 1, 1991, and ends on September 30, 1992. (From fiscal year 1844 to fiscal year 1976 the fiscal year began on July 1 and ended on the following June 30.)

Free lunch eligibles: The National School Lunch Program's assistance program for low-income children. Families with school-age children who fall below the poverty level and have no other significant assets are eligible to receive government assistance in the form of free or reduced-price school lunches.

Full-time enrollment: The number of students enrolled in higher education courses with a total credit load equal to at least 75 percent of the normal fulltime course load.

Full-time-equivalent (FTE) enrollment: For institutions of higher education, enrollment of fulltime students, plus the fulltime equivalent of parttime students as reported by institutions. In the absence of an equivalent reported by an institution, the FTE enrollment is estimated by adding onethird of parttime enrollment to fulltime enrollment.

Full-time instructional faculty: Those members of the instruction/research staff who are employed full time as defined by the institution, including faculty with released time for research and faculty on sabbatical leave. The fulltime category excludes faculty who are employed to teach less than two semesters, three quarters, two trimesters, or two 4month sessions; replacements for faculty on sabbatical leave or those on leave without pay; faculty for preclinical and clinical medicine; faculty who are donating their services; faculty who are members of military organizations and who are paid on a different pay scale from civilian employees; academic officers whose primary duties are administrative; and graduate students who assist in the instruction of courses.

Full-time worker: One who is employed for 35 or more hours per week, including paid leave for illness, vacation, and holidays. Hours may be reported either for a survey reference week, or for the previous calendar year, in which case they refer to the usual hours worked.

 
G

Geographic region: 1) The four regions used by the Bureau of Economic Analysis of the U.S. Department of Commerce, the National Assessment of Educational Progress, and the National Education Association (NEA) are as follows (note that the NEA designated the Central region as the Middle region in its classification):

Government appropriation: An amount (other than a grant or contract) received from or made available to an institution through an act of a legislative body.

Government grant or contract: Revenues from a government agency for a specific research project or other program.

Grants: Also known as scholarships, these are funds for postsecondary education that do not have to be repaid.

Gross Domestic Product (GDP): Gross national product less net property income from abroad. Both gross national product and gross domestic product aggregate only the incomes of residents of a nation, corporate and individual, derived directly from the current production of goods and services. However, gross national product also includes net property from abroad. (See also Gross National Product.)

Gross National Product (GNP): A measure of the money value of the goods and services available to the nation from economic activity. GNP can be viewed in terms of expenditure categories, which include purchases of goods and services by consumers and government, gross private domestic investment, and net exports of goods and services. The goods and services included are largely those bought for final use (excluding illegal transactions) in the market economy. A number of inclusions, however, represent imputed values, the most important of which is rental value of owneroccupied housing. GNP, in this broad context, measures the output attributable to the factors of production, labor, and property supplied by U.S. residents.

Group of Seven (G-7): This group is composed of seven industrialized nations with large economies: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.

 
H:

Higher education price index: A price index that measures average changes in the prices of goods and services purchased by colleges and universities through currentfund education and general expenditures (excluding expenditures for sponsored research and auxiliary enterprises).

 
Independent operations: A group of selfsupporting activities under the control of a college or university. For purposes of financial surveys conducted by the National Center for Education Statistics, this category is composed principally of federally funded research and development centers (FFRDC).

Inflation: An upward movement in general price levels that results in a decline of purchasing power.

Institutional support: The category of higher education expenditures that includes daytoday operational support for colleges, excluding expenditures for physical plant operations. Examples of institutional support include general administrative services, executive direction and planning, legal and fiscal operations, and community relations.

Instruction: (See Expenditures.)

Instructional expenditures (elementary/secondary): Current expenditures for activities directly associated with the interaction between teachers and students. These include teacher salaries and benefits, supplies (such as textbooks), and purchased instructional services.

Instructional staff: Full-time-equivalent number of positions, not the number of different individuals occupying the positions during the school year. In local schools, includes all public elementary and secondary (junior and senior high) dayschool positions that are in the nature of teaching or in the improvement of the teachinglearning situation. Includes consultants or supervisors of instruction, principals, teachers, guidance personnel, librarians, psychological personnel, and other instructional staff. Excludes administrative staff, attendance personnel, clerical personnel, and junior college staff.

Merit Pay

Pay Equity

Revenue

Local: Revenue produced within the school district boundaries for operating the schools and available to the district in the amount produced. The major source of local revenue in most districts is the general property tax levy.

State: Revenues received or to be received from the State of Michigan which are appropriated by the state out of state levied funds. The major source of state revenue in most districts is the State School Aid membership allowance.

Federal: Revenue received or to be received from the federal government which is redistributed by the state; or redistributed by a local unit of government, such as a county or a city; or allocated directly by a federal agency, i.e. U.S. Department of Education.

ALL SOURCES: Includes revenues from local, state, federal and intermediate units of government (i.e. county), as well as incoming transfers and other transactions. Please note, the total of local, state and federal revenues will not add to the "ALL SOURCES" total because intermediate revenues and incoming transfers are not included in any of the individual revenue columns.

Support Services

: The cost of activities which provide administrative, technical and logistical support to facilitate and enhance instruction. Instructional:The costs of pupil support services and instructional staff support services. These include, but are not limited to, speech therapists, guidance counselors, school nurses, and curriculum specialists.

Business and Administration:The total cost of general administration, school administration, business services, central services and other support services.

Operations and Maintenance:--The cost of those activities concerned with keeping the physical plant open, comfortable, and safe for use.

Total Support Services:The total cost of support services. In addition to instructional support, business and administration, and operations and maintenance, this includes transportation services.

Support Services Salaries:The total support services salary and fringe benefits cost for support services personnel.

Per PupilA revenue or expenditure category divided by the total State Aid Membership of the school district.

Pupil Teacher Ratio:Calculated by dividing the total K-12 enrollment not including Special Education by the Total K-12 Teachers.

VoucherA document or chit, usually issued by the state, that can be used by parents to pay tuition at an out-of-district public school, a private school, and/or a religious school. The term is also used more broadly to describe school-choice proposals in which states would help pay tuition for children attending private or religious schools.