How can the Department of Education assist schools that have not yet achieved the same level of success? We must replicate these principles and practices in every school and classroom across the state. And we will provide the tools and resources to make that happen.

In 2004, the Legislature passed Act 51, also known as the Reinventing Education Act. This year, implementing one of the requirements of Act 51, the department allocated funds directly to schools based on the individual needs of their students using a "Weighted Student Formula." This allocation formula helps to ensure equity of funding across the state school system. Schools with similar types and numbers of students should receive similar amounts of money.

There are several things that we know about our students' needs and how we must now allocate our resources based on those needs.

First, we know that students who come from economically disadvantaged households, students with special learning needs and students whose first language is not English need additional resources and help to reach proficiency on our state assessments. Such students account for 51 percent of our student population.

Second, we know that small, rural and unique schools have their own special challenges. The department will keep these concerns in mind as we continue to modify and implement an allocation formula in future years that will enable more schools to be successful and provide all students with adequate educational opportunities.

So, where do the department's education dollars go? At one level, the answer is a simple one. In our operating budget, 65 cents out of every dollar is for salaries and fringe benefits; 25 cents is for utilities, contracted services, minor repair and maintenance, and instructional materials; and 10 cents is for debt service.

But from other perspectives, the expenditure of funds is more complex. Another requirement of Act 51 is that at least 70 percent of the department's operating budget (excluding the 10 percent dedicated to debt service) is to be spent by school principals. Of the remaining funds, 73 cents out of every dollar is spent by principals, while 23 cents is expended at the state level on behalf of all schools, and just 4 cents goes to instructional support and administration at the state and district levels. At 4 percent, the department's administrative costs are less than in most other states.

The department's budget appears to have grown significantly over the past 30 years, while our student population has remained relatively flat. Yes, that is true, but much of this apparent growth is due to changes in how the budget is now configured.

The budget increase is primarily due to the following:

Pass-through costs are dollars that were previously handled by departments other than education, but are now passed through the public school system to cover such things as employee health funds, pension accumulation, debt service and risk management. Most of the pass-through costs are from the Department of Budget and Finance. More than $600 million previously handled by the state's finance department is now passed though the public school system.

Since 1997, special-education costs have expanded in conjunction with the department's efforts to comply with the Felix Consent Decree. These additional costs now total almost $400 million per year.

And most recently under Act 51, programs have been transferred from other state agencies to the public school system. For example, about $65 million in night security, student transportation, repair and maintenance and facilities development and maintenance costs previously covered in other state agency budgets became the responsibility of the Department of Education in 2006.

In summary, a review of budget figures over the past 30 years shows that $1 billion of the department's $2 billion budget is attributable to pass-through fringe benefits and debt-service costs, and to special-education costs.

Excluding these costs, and adjusting for inflation, the 30-year budget growth is 2 percent per year. Such budget growth is consistent with national education figures, and less than in many other states.

Education is a costly item in the state's overall budget because the welfare of the state depends upon the intellectual, social and physical preparation of its young citizens. The department is obligated and committed to spending its resources wisely. We believe, and the data clearly show, we are demonstrating responsible stewardship of the trust that the state's citizenry place in its public school system.