Archives for category: Funding

In case you don’t have time to read the full report released by “In the Public Interest” about the real costs of charter schools, Jan Resseger has done it for you.

Legislators pretend that charters are simply a “choice,” and pay no attention to the fiscal damage they impose on the public schools that educate the majority of children and lose revenue. Thus, the decision to have more charters reduces the quality of education for the majority of children in the district or the state.

She writes:

“What stands out in this report is the perfectly lucid explanation about exactly how charter school funding depletes the budgets of local school districts and what it means for the students left in the traditional public schools when some students carry their per-pupil funding away to a charter school: “To the casual observer, it may not be obvious why charter schools should create any net costs at all for their home districts. To grasp why they do, it is necessary to understand the structural differences between the challenge of operating a single school—or even a local chain of schools—and that of a district-wide system operating tens or hundreds of schools and charged with the legal responsibility to serve all students in the community. When a new charter school opens, it typically fills its classrooms by drawing students away from existing schools in the district. By California state law, school funding is based on student attendance; when a student moves from a traditional public school to a charter school, her pro-rated share of school funding follows her to the new school. Thus, the expansion of charter schools necessarily entails lost funding for traditional public schools and school districts. If schools and district offices could simply reduce their own expenses in proportion to the lost revenue, there would be no fiscal shortfall. Unfortunately this is not the case.”

“The report continues: “If, for instance, a given school loses five percent of its student body—and that loss is spread across multiple grade levels, the school may be unable to lay off even a single teacher… Plus, the costs of maintaining school buildings cannot be reduced…. Unless the enrollment falloff is so steep as to force school closures, the expense of heating and cooling schools, running cafeterias, maintaining digital and wireless technologies, and paving parking lots—all of this is unchanged by modest declines in enrollment. In addition, both individual schools and school districts bear significant administrative responsibilities that cannot be cut in response to falling enrollment. These include planning bus routes and operating transportation systems; developing and auditing budgets; managing teacher training and employee benefits; applying for grants and certifying compliance with federal and state regulations; and the everyday work of principals, librarians and guidance counselors.” As other studies have shown, the greatest fiscal burden for local school districts is for special education, because traditional public schools continue to serve the children with the most serious disabilities, the children who require expensive services most charters elect not to provide.

“What about the problems in school districts where the school population is already shrinking? In recent years charters have somehow been prescribed in places like Chicago and Detroit and Cleveland as a way to attract families to the district. But ITPI’s report explains why such thinking is flawed: “It is true that shrinking student populations cause a fiscal crisis for school districts. However, charter schools exacerbate this problem in unique ways. First, charter schools make it extremely difficult for districts to consolidate schools in the face of falling enrollment… When the creation of new schools is no longer tied to student population growth but rather is open to any number of entrepreneurs aimed at competing for market share, the inevitable result is an increased number of schools for the same population of students. In Albany, New York, over the course of a decade the district went from serving 10,380 students in 17 schools to serving just slightly more students—10,568—but in 24 schools…. And the New York Times reported that in the city of Detroit, ‘the unchecked growth of charters has created a glut of schools competing for some of the nation’s poorest students, enticing them to enroll with cash bonuses, laptops, raffle tickets for iPads and bicycles…’ The problem is particularly destructive in communities whose total school population is already shrinking…. In such districts school systems already struggling to meet student needs with diminishing resources are faced with additional dramatic cuts in funding.”

It makes perfect sense to everyone other than legislators and charter lobbyists.

“In the Public Interest” released a new report about the cost of charter schools, and the money they drain from public schools that educate most students.

Here is the press release, with a link to the full report by Gordon Lafer, author of The One Percent Solution.

Report: Charter Schools Remove Tens of Millions in Funding from
Neighborhood School Students in Three California Districts

$142.6 Million Net Loss in School Districts in San Diego, Oakland, and San Jose,
While Student Needs Go Unmet

WASHINGTON – In a first of its kind analysis of three California school districts, researchers found that public school students are bearing the cost of charter schools’ rapid expansion. The report calculates the net fiscal impact of charter schools on three representative California school districts: San Diego, Oakland, and San Jose’s East Side Union High School District.

The analysis, Breaking Point: The Cost of Charter Schools for Public School Districts, conducted by In the Public Interest, a California-based think tank, with Dr. Gordon Lafer, examines the cumulative effect of charter schools on California school districts, which rank 42nd nationwide in per pupil spending. The number of California charter schools increased by more than 900 percent to more than 1,200 schools over the last two decades.

“Our analysis shows that the continued expansion of charter schools has steadily drained money away from school districts and concentrated high needs students in neighborhood public schools,” said Dr. Gordon Lafer, political scientist and professor at the University of Oregon. “The high costs of charter schools have led to decreases in neighborhood public schools in counseling, libraries, music and art programs, lab sciences, field trips, reading tutors, special education funding, and even the most basic supplies like toilet paper.”

The California Charter Schools Act does not allow school boards to consider how a charter school may impact a district’s educational programs or fiscal health when weighing new charter applications. However, when a student leaves a neighborhood public school for a charter school, all the funding for that student leaves with them, while all of the costs do not. This leads to cuts in core services like counseling, libraries, and special education and increased class sizes at neighborhood public schools.

San Diego Unified is the second-largest district in the state, with a combined enrollment of more than 128,000 students, and a total of 51 charter schools. Oakland Unified has 50,000 students and has the highest concentration of charter schools in the state. East Side Union High School District has a total enrollment of 27,000 and is comprised solely of high schools. Although the districts face unique challenges and student populations, they share similar financial challenges from charter school expansion.

“Unlimited charter school expansion is pushing some of California’s school districts toward a financial tipping point, from which they will be unable to return,” Dr. Lafer said.

The report recommends that each school district create an annual economic impact report to assess the cost of charter school expansion in its community. With consideration of economic impact, school districts could more effectively balance the value of a new charter school with the needs of neighborhood public school students.

Key findings from the report include:

• Oakland Unified loses $5,643 a year per charter school student while San Diego Unified loses $4,913 a year and East Side Unified loses $6,000 a year.

● Charter schools cost Oakland Unified $57.3 million per year, a sum several times larger than the forced drastic cuts to Oakland’s neighborhood school system this year.

● In East Side Union High School District, the net impact of charter schools amount to a loss of $19.3 million per year.

● Charter schools cost the San Diego Unified $65.9 million in 2016-17, $6 million more than the most recent round of budget cuts in early 2018.

● In Oakland, nearly 78 percent of students come from low-income families, are English language learners, or are foster youth, while 63 percent of students in San Diego Unified and 52.7 percent of students in East Side High School Unified share those backgrounds.

The report builds on previous studies that used different methodologies but came to similar conclusions. In the smaller cities of Buffalo, New York, and Durham, North Carolina, the net impact of charter schools was estimated as a loss of $25 million per year to the school district. In Nashville, Tennessee, the loss is approaching $50 million per year. And in Los Angeles—the nation’s second-largest school district—the net loss is estimated at over $500 million per year.

In the Public Interest is a nonprofit resource center that studies public goods and services.

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Read the report here.

Sara Stevenson, librarian at the O.Henry Middle School in Austin, frequently writes letters to the editor of the Wall Street Journal, refuting the opinion writers’ regular attacks on public schools and teachers. For as long as anyone can remember (meaning me), the WSJ has favored unlimited school choice, and it usually makes the case by sneering at public schools. Sara has already been honored by this blog as a hero for her constant vigilance on behalf of the common good. She doesn’t let the WSJ opinion writers get away with BS.

She has a letter in today’s WSJ, rebutting the claim that throwing money at schools (e.g., fully funding them) makes a difference.

“Regarding “Teachers on Strike” (Notable & Quotable, April 25): Jason Riley uses New York as the poster child for high spending in education with only middling test scores. However, Massachusetts ranks third in teacher salaries and number one in student test scores. I prefer that correlation to prove that you get what you pay for.”

 

The agencies in Texas that finance municipal debt are choosing sides against charter schools. This is good news, but it should not be surprising because charter schools are risky, while traditional schools are not.

”Some Texas public finance firms are choosing sides in the escalating battle between traditional public school districts and charter schools.

“Earlier this year, Hilltop Securities, the state’s perennial leader among municipal advisers, dropped nine charter school clients to demonstrate its support for traditional districts.

”’Initially, we saw assisting charter schools as the firm enhancing our long history of support [for] primary/secondary education,” Hilltop chairman Hill Feinberg wrote in a Jan. 24 letter to Keller Independent School District Chief Financial Officer Mark Youngs. “Hilltop Securities will continue to honor our commitment to those relationships with Texas Independent School Districts by no longer representing charter schools in Texas as advisor, underwriter, placement agent or investment advisor.’”

Some bankers are starting their own firms specifically to finance charter schools.

 

Tens of thousands of teachers in Arizona went out on strike last Friday, demanding a restoration of deep budget cuts over the past decade and pay raises. The legislature passed a new budget today that fell short of meeting their demands. 

The strike may end, for fear that teachers will lose public support if they stay out longer.

”The legislation signed by Gov. Doug Ducey (R) early Thursday did not meet all the demands initially laid out by the groups coordinating the walkout, and some teachers had hoped to keep schools closed until legislators committed to a larger budget. But it was enough progress for union leaders to recommend teachers return to the classroom and prepare for another battle later in the year….

”The budget bill gives teachers a 9 percent pay raise next year, which, combined with a 1 percent raise already given, gets them halfway to the 20 percent hike they have called for. Ducey has promised that the second installment will come by 2020, though that is not guaranteed by the package he signed.

“The plan steers bulk money to districts and gives them the discretion to dole out the raises as they see fit, meaning not all teachers will receive the same percentage pay bump. An analysis done by the Arizona Republic found that a minority of districts under the plan will not receive enough money to give all their teachers 20 percent increases.

“The bill also hikes state spending on schools by $200 million per year more than Ducey originally proposed at the start of the year. Still, it comes up well short of the walkout organizers’ demand that funding be restored to 2008 levels, adjusted for inflation.”

So…the districts will decide who gets a raise. Overall funding remains far below what it was pre-2008.

Are the Koch brothers giving each other a high-5?

Will the teachers remember in November and vote out these scoundrels?

 

Linda Darling-Hammond writes here about the historic protests by teachers now sweeping through red states. 

She writes:

“A nation that under-educates its children in the 21st century cannot long survive as a world power. Prisons — which now absorb more of our tax resources than public higher education did in the 1980s — are filled with high school dropouts and those with low levels of literacy. We pay three times more for each prisoner than we invest in each child’s education annually. With an aging population and only three workers for every person on Social Security, the United States especially needs all young people to be well-educated enough to gain good work in the complex and rapidly changing economy they are entering. Without their ability to pay the taxes that support the rest of society, the social contract will dissolve

“Inadequate education funding has created the conditions that make teaching the daily struggle that has finally drawn teachers and families to the picket lines: unmanageable class sizes, inadequate resources and facilities, cuts to essential medical and mental-health school services and more. As child poverty, food insecurity and homelessness have climbed to among the highest levels in the industrialized world (more than one in five live in poverty and in 2014 one in 30 were homeless), schools have been left with fewer resources to address these needs and support student learning.”

 

A new report assessed the needs of Arizona’s schools and concluded that the state must spend an additional $2 Billion to upgrade its schools. 

Arizona ranks 49th in the nation for teachers’ salariesand dead last for per-pupil spending.

“The Grand Canyon Institute (GCI), an independent, nonpartisan think tank, conducted its analysis based on educational goals defined in the Arizona Education Progress Meter. The goals were established by Expect More Arizona and The Center for the Future of Arizona….

“It’s been nearly 30 years since Arizona’s state legislature approved a tax increase. Individual tax rates have tumbled downward, and exemptions have increased. Meanwhile, corporate tax cuts have drastically reduced the revenue collected from businesses.”

Sadly, the Republican leadership is deeply indebted to ALEC and the Koch brothers, whose gospel is low taxes and low spending on public services. Last year, the rightwing bill mill ALEC rated Arizona the top-performing state in the nation, despite its abysmal teachers’ salaries and high poverty. On its annual report card, Arizona received a B-, the highest score awarded by ALEC, mainly because of its many school choice programs.

 

Arizona and Colorado adopted ALEC-inspired tax-cutting policies, writes Jan Resseger. Their chief victim was public schools and teachers. This was intentional, not an accidental consequence.

“Arizona and Colorado, where teachers walked out last Thursday and Friday, represent the two states where the gap is widest among all the fifty states.  In Arizona, public school teachers make only 62.8 percent and in Colorado 64.5 percent of the salaries of other college graduates. And in both states the cost of living is quickly rising….

”Here are some realities in Arizona, where teachers continued their strike yesterday. The Washington Post’s Moriah Balingit reports: “When adjusted for inflation, Arizona cut total state per-pupil funding by 37 percent between 2008 and 2015, more than any other state.  That has led to relatively low teacher salaries, crumbling school buildings, and the elimination of free full-day kindergarten in some districts… Low teacher pay has contributed to teacher shortages in Arizona. Some districts, unable to find qualified teaching candidates, have turned to emergency long-term substitutes who are required to hold only a high school diploma.

”Writing for Education Week, Daarel Burnete II adds: “Arizona is one of seven states that, in response to voter demands, has cut income taxes in the last decade, a revenue source schools rely on heavily. In 2016 alone, the state allowed $13.7 billion to go uncollected through a series of income, sales, and other tax exemptions, deductions, allowances, exclusions, or credits, according to the state’s department of revenue.  At the same time, Arizona has made among the most dramatic budget cuts in the nation to its schools, totaling 14 percent in the last decade alone… The paradox is that Arizona’s economy is in its best condition in years.  Its unemployment rate stands at 4.9 percent, and the state’s 100 largest corporations added more than 20,000 jobs last year alone.”

”Colorado’s capacity to fund its schools is complicated by an American Legislative Exchange Council backed Taxpayer Bill of Rights, a TABOR, adopted into Colorado’s state constitution in 1992. Here is a description about how Colorado’s TABOR affects school funding: “(W)hat it basically means is that lawmakers can’t raise your taxes without making you vote on it first. And it also limits how much of a ‘raise,’ so to speak, that the state gets each year. And, if the state happens to generate too much money, it can’t keep it. Instead, this goes back to taxpayers.”  TABOR and other tax freezes and limitations in Colorado mean that state’s allocation for school districts has declined steadily.

”The Center on Budget and Policy Priorities explains further that Colorado is the only state that has embedded a TABOR into its constitution despite attempts in other states, where voters have defeated passage of this kind of restrictive policy that is being promoted by far-right anti-tax interests. More than a decade after the TABOR was passed, Colorado’s revenue collapsed so completely that: “In 2005, Colorado voters approved a measure to suspend TABOR’s formula for five years to allow the state to rebuild its public services. Unfortunately, the suspension did not last long enough for the state to recover fully from the period that TABOR was in effect, and the Great Recession further undermined that effort.  TABOR continues to cause ongoing fiscal headaches for Colorado even as the economy improves.”

The citizens of these states must decide whether they want low taxes or a decent education system. Charters and vouchers are no substitute for adequate funding.

 

 

 

Politico explains why some states can’t raise taxes to pay for education and other public services. Conservative Republicans, obeying their puppet masters at ALEC (funded by the Koch brother, the DeVos family, and major corporations) persuaded voters to change the laws to require a supermajority for any tax increases.

“TEACHER STRIKES HIT STATES WITH STRICT TAX HIKE REQUIREMENTS: In Arizona and Oklahoma – where tens of thousands of teachers have flooded state capitals in recent weeks to demand better pay and hundreds of millions of dollars in education funding – the state constitution makes it hard to raise taxes. Voters in both states approved constitutional amendments in 1992 that require a supermajority – much more than half – of the state legislature to impose new taxes or increase existing ones, as opposed to a simple majority.

“- A major lift in some states: It takes two-thirds of the state legislature in Arizona to impose new taxes or increase taxes. In Oklahoma, it takes 75 percent of the state legislature – one of the strictest requirements in the country. And while supermajorities aren’t the sole driver of education funding woes, critics argue that they lock in tax cuts year after year, making it difficult for states to address education funding shortfalls.

“- “This is a classic example of something that sounds good, but it’s a complete poison pill,” said Nick Johnson, senior vice president for state fiscal policy at the Center on Budget and Policy Priorities. “Supermajorities just reduce the power of a state to do what it needs to do.” Johnson said the requirements also allow conservatives to “lock-in” their “advantage into the future.” Florida is considering such a proposal on the ballot this November.

“- CBPP notes that Arizona “cut personal income tax rates by 10 percent in 2006, cut corporate tax rates by 30 percent in 2011, reduced taxes on capital gains, and reduced taxes in other ways over the last couple of decades.” State education funding in Arizona is also down 14 percent since the recession hit, after adjusting for inflation. A coalition of Arizona public school advocates led by a progressive policy group is now pushing for a ballot measure to raise income taxes on wealthy Arizonans to help pay for public education.

“- Conservative organizations like the American Legislative Exchange Council have long-pushed for supermajority measures nationwide in an effort to curb “excessive government spending.” Jonathan Williams, ALEC’s vice president for the center for state fiscal reform, argued that supermajorities haven’t prohibited states from taking action when it comes to education funding. He pointed to Oklahoma, where the threat of massive teacher walkouts prompted state lawmakers to pass a rare tax hike in March that would fund a $6,100 pay raise. “When something becomes a necessity, these state lawmakers were able to hit even the most stringent of the supermajority thresholds,” Williams said.”

 

The Blog for Arizona describes the inside story of the Arizona teachers’ strike and Governor Doug Ducey’s feckless efforts to stop the strike without making any concrete concessions to teachers.

“Doug Ducey, the ice cream man hired by Koch Industries to run their Southwest subsidiary formerly known as the State of Arizona, is a practitioner of propaganda over policy. He rolls out a glossy media P.R. campaign and gets his corporate benefactors to pay for advertising praising him for his P.R. campaign. The substance of the actual policy gets lost.

“Ducey did this for his #ClassroomsFirst initiative in which he declared himself to be the “education governor,” he did this to sell his unconstitutional Prop. 123 to settle the education inflation adjustment lawsuit against the state so that the state would not have to pay restitution for funds stolen by our GOP-controlled legislature, and he is doing it yet again with his #20by2020 teacher pay proposal.

“Ducey’s dark money “Kochtopus” allies in the Arizona Chamber of Commerce and Industry started a new group called the “Arizona Education Project” and fielded a $1 million soft-sell TV ad blitz to say  “Arizona schools are making progress.” Arizona “Ground Zero” for Koch Attack on Public Education. As the Arizona Daily Stareditorialized, “no number of feel-good TV spots will change the fact that Arizona comes in last, or almost last, in numerous rankings of per-pupil state spending in the nation.” Education ad campaign doesn’t change the facts.

“The “Kochtopus” Death Star, the Goldwater Institute, is now threatening school districts with lawsuits for closing during the #RedforEd teacher walkouts, no doubt on Gov. Ducey’s behalf. Goldwater Institute sends letter to schools calling Arizona teacher walkout unconstitutional. Per usual, the Goldwater Institute is full of shit and bluster. The actual point of their intimidation campaign is a reminder  that “We own this state, and you will obey!

”With more than 50,000 educators and their supporters marching on the state capitol this week in a sea of red, our self-described “education governor” (sic) refused to meet with education leaders, Ducey to meet with ‘decision makers,’ not teachers to talk about salaries, and instead negotiated a “deal” with his GOP legislative leaders in a one-sided negotiation that did not include the teachers. Governor announces budget deal with teacher pay raise — but gives no details.”

Republican leaders negotiated a deal among themselves, refusing to talk to teachers. The presence of 50,000 teachers wearing #RedForEd did not earn them a seat at the table. One side talking to itself, said “Arizona Republic”columnist E.J. Montini, is not a deal. One little detail: the Republican Plan is to distribute any new funding to districts and let them decide whether to increase teachers’ salaries. Some pay raise that is!

Blog for Arizona writes:

”You have this weekend to contact your state legislators and to let them know that without new tax revenue dedicated to public education for teacher raises and to restore the billions of dollars cut by our GOP-controlled legislature over the past decade, there is no “deal.” And if they vote for this budget gimmick of “robbing Peter to pay Paul” yet again, you will be voting them out of office in November. Enough is enough.”