Much has been made of the recently adopted flexibility in categorical program funding, and some have celebrated the newly introduced funding as a political victory. However, the fact remains that the flexibility being given, although helpful, comes with historic overall reductions in K-adult funding, and specific reductions to programs and services to students.

The flexibility also jeopardizes revenue limit programs such as adult education and ROC/Ps. ACSA Management Services Executive Brett McFadden said that although it’s recognized that these programs, like all others, needed to be part of the financial solution to protect the entire school district, there is a caveat.

“It should also be noted that adult education and ROC/Ps are not categorical programs, and generate revenues through their ADA,” McFadden said. “Granting complete flexibility over these programs could inhibit their ability to generate additional ADA and therefore revenues.”

With this perspective in mind, ACSA and Total School Solutions recommend a careful analysis of the new flexibility provisions in relationship to local educational agency missions and student needs before approving and implementing categorical fund transfers under the new law.

The education management community has been asking for categorical flexibility for a long time. Local education leaders and stakeholders are more aware of the needs of their own unique student populations and, therefore, are in a better position to decide which programs to continue, fund and/or expand.

McFadden said the timing of this action may not be politically helpful to local districts and county offices under the current climate. But in the long term, the flexibility will most likely result in better-targeted services to students.

LEAs are reminded, though, that this flexibility will come with increased accountability and a higher level of responsibility for education leaders. The Legislature as well as other education stakeholders will be watching very closely how K-adult management teams handle the newly established fiscal flexibility.

Tahir Ahad, president of Total School Solutions, urged caution in the use of flexibility since it has not been made permanent.

“If LEAs continue with the use of funding in a ‘business as usual’ manner, or if the flexibility provisions are used to irreparably damage services to at-risk students, the logical outcome would be a reconsideration of the flexibility provided by the state,” Ahad said. “Under the Budget Act, Tier 3 flexibility is in place for five years and then subject to review by state lawmakers.

“We have to remember that many categorical programs were created because of a general perception that local education leaders were not adequately addressing particular policy issues on their own.”

The use of categorical funds, and their utility to students, varies from district to district. Each district should consider its unique circumstances and needs of their student population before redirecting funds and/or eliminating services, Ahad said.

There are difficult fiscal decisions to be made. For many LEAs, this is a time of “fiscal survival.” But the core mission remains the education and care for our students.