State Educational Technology Directors Association
VSDL Virtual Schools and Distance Learning




Executive Summary
Building Partnerships and Leveraging Resources
Technology Leadership Skills
Data Drive Decision-Making
High Quality Prof Dev: Teaching & Learning

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Finance and Infrastructure Considerations

The goal of this set of materials is to provide a starting point for state educational leaders in developing appropriate policies for funding virtual schools and distance learning in their states. Ideally, states will develop policies that build on their current practices and align with overall state approaches to funding educational activities. The questions below are intended to help state leaders identify some of the assumptions that underlie those approaches, so that their policy development will be sound and acceptable to colleagues and leaders across the state.

1. What is the state's education oversight philosophy?

In other areas of education, what role does the state play? Do they tend to have a high level of involvement in educational technology issues, or is it primarily a local decision-making area? Here are some factors to consider, with some indicators that point to varying levels of involvement:

  Low State Involvement Medium State Involvement High State Involvement
Procurement Policy There is no state regulation of school procurement. There is a voluntary state procurement system for schools. The state is the sole source of procurement.
Statewide Network Architecture There is no statewide network architecture. There is a voluntary statewide system. There is a fully subsidized statewide system.
Local Network Architecture Our state provides no support to local networks. Our state provides recommendations for local networks. Our state has required standards for local networks.
Statewide Network Services There is no statewide support for QOS, DNS, VoIP, IP video, Backbone Network Management, directory services, filtering, caching or provisioning. Our state offers and provides some of these services. Our state is responsible for all of these services.
Staff Development for Virtual Instruction Staff development is a local responsibility. Our state has recommended guidelines for professional development procurement. Our state has required professional development, procured by the state.

2. Which funding model is appropriate given the state's relationship with schools?
Review how your state handles the issues described above and determine if your state tends to have a low, medium or high level of involvement in education and educational technology services and infrastructure.

State Funding Model Profiles
The following models describe different approaches to distributing the responsibility for the funding and infrastructure for virtual schools and distance learning programs within a state. Given the conclusions that you have drawn from the above considerations, review the models described below, and identify the model which best aligns with your state's general approach to procurement for schools. The models move from the highest level of state involvement to the lowest.

  1. Gateway Model
    • State controls access to coursework through virtual gateway/school.
    • State sets coursework pricing.
    • State sets per pupil funding flow policies/model.
    • State sets/controls student enrollment.

  2. Broker Model
    • State offers common access point to coursework.
    • State sets statewide coursework price through statewide contract, but prices can vary from course-to-course within and between course offerings (limited market).
    • Districts can choose from state menu or go off-menu (open market).
    • State may or may not set policies governing how per-pupil funds flow from district to provider.
    • Districts (not state) control student enrollment.

  3. Open Market Model
    • State may or may not offer a common coursework access point.
    • State does not regulate access to coursework.
    • State does not set coursework pricing; individual providers (market) do.
    • State does not set policies governing per pupil funds flow; districts pay providers directly.
    • Districts control student enrollment.

  4. Scholarship Model
    • State may or may not offer a common coursework access point.
    • State does not regulate access to coursework.
    • State does not set coursework pricing; individual providers (market) do.
    • Individual students pay providers directly.
    • Individual students/coursework providers control student enrollment.

Once you have identified the model that best suits your state, you can use this description as a starting point to begin determining what role your state will take in the following issues related to virtual educational programs. Use these as the beginning point of a dialogue with other state educational leaders and policymakers. Use the other materials in this chapter of the toolkit to identify the key issues related to each area and to find resources and models to address those issues.

Issues to Address:

  • Who will ensure the quality of online courses in our state?
  • Who will determine the criteria for granting credit for an online course?
  • Who will set the policies around accepting coursework credit?
  • Who will be responsible for administering the virtual or distance education program?
  • Who will manage the infrastructure?
  • How will the system be financed?
  • Who will evaluate the system for quality assurance?

Conclusion
The demand for distance learning and virtual schooling is ever growing. Public expectations will force legislators and educational agencies to respond to this demand. The resources provided by this work group offer a comprehensive set of materials that state policy leaders can rely upon as they work through their policy processes.
 
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