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GOP Tax Plan Offers Subsidy to Wealthy Private School Parents

By dianeravitch
November 12, 2017 //
13

The latest GOP Tax Plan offers a generous break for wealthy families that send their children to private schools, worth up to $30,000 a year in tuition.
What happened to the middle class? Forgot about them. This tax break will cost taxpayers up to $600 Million.

“That number is the potential net new tax savings, under the House tax plan, for parents who deposit a large amount of money when their kids are born. They would get that benefit by using the money for children starting private school in kindergarten and attending through high school.

“Buried in Section 1202 of the tax bill are a number of proposals to consolidate and simplify various tax breaks for education savings. Part of the section in effect would neuter something called a Coverdell account, which families have used for years to save for both private school and college….

“But then comes the big change: Elementary and high school expenses of up to $10,000 per year would become “qualified” expenses for 529 plans. Translation? You could pull $10,000 each year out of your 529 account for private school and avoid paying taxes on any previous growth. There are no income limits on who can use 529 plans, and you would be able to keep right on saving for college as well….

“Now, a quick 529 refresher. You put money in, and in 35 states you get some sort of tax break when you do so, according to Andrea Feirstein, a plan consultant. The money grows tax free, and when you withdraw it to pay for higher-education expenses, you pay no taxes, capital gains or otherwise.

“So what would it mean to add private school benefits to 529 plans? Take a wealthy family in the highest tax bracket. It has a newborn baby, and through some combination of gifts and its own savings, it opens a 529 plan with $200,000 and never deposits another dime.

“If the money grows at 6 percent annually, that family could take out the $10,000 each year, avoiding $2,380 in taxes annually. If it did that for 13 years (kindergarten through 12th grade), it would save $30,940 in taxes. Plus, according to numbers that Vanguard ran for me, it would still have enough left over after high school ($370,717) to pay for many pricey private colleges in full, as long as tuition inflation there ran no more than 3 percent annually.”

Categories Funding

D.C. Superintendent Antwan Wilson Overspent Budget for Administration in Oakland by 100%

By dianeravitch
November 8, 2017 //
14

When Kaya Henderson stepped down as chancellor of the District of Columbia school system, she was replaced by Antwan Wilson, superintendent of schools in Oakland, California.

Wilson came to Oakland in 2014 from Denver, where he was an assistant superintendent. He also graduated the unaccredited Broad Superintendents Academy in 2014.

He was superintendent for two-and-a-half years in Oakland when he received the invitation to take charge of D.C.

Reporter Ken Epstein of the Oakland Post reported on problems that Wilson left behind. Long before Wilson arrived, Oakland spent years in state receivership and was bailed out by the State with a loan of $100 Million. The state watches Oakland closely.

Now the District has discovered that Superintendent Wilson spent heavily on new administrative positions.

Epstein writes:

“The financial report, based on a close examination of the district’s income and expenditures, was presented by Interim Chief Financial Officer Gloria Gamblin and her staff at the school board meeting last week and at the board’s Budget and Finance Committee meeting this week.

“One significant misstep last year was the failure of what is called “position control.”

“Supt. Antwan Wilson’s administration created 75 positions, mostly in the central office, that were not accounted for in the budget and for which funds had not been allocated, said Katema Ballentine, OUSD’s financial officer of budget development
.
“That’s huge. I’ve never seen a budget number that large,” she said…

“Ballentine told board members that budget staff realized during the last months of Supt. Wilson’s administration that the district was facing a $30 million shortfall, but she and Senior Business Officer Vernon Hal were not allowed to tell the board.”

In a follow-up article, Epstein reported that Wilson overspent the budget for administrators by 100%.

“As the Oakland Unified School District (OUSD) struggles to maintain financial solvency – cutting expenses and realigning spending priorities – reports are coming to light indicating that expenditures for administrators and consultants grew dramatically during the three years of Supt. Antwan Wilson’s administration and regularly exceeded the adopted budget by as much as 100 percent.

“As leader of OUSD, these are not the kind of numbers I want to see,” said Superintendent Kyla Johnson-Trammell.

“Our schools need the best leadership we can find, but we must find and keep those leaders while working within our means,” she said. “It is our duty to ensure that we are operating in as efficient and cost-effective way as possible. I am committed to putting us on the right path to fiscal stability.”

“According to one of the numerous financial reports presented Monday night to the school board’s Budget and Finance Committee, total spending for classified (non-teaching) supervisors and administrators grew by 69 percent during Supt. Wilson’s administration, July 2014 – January 2017.

“Classified spending was at $13.1 million in the final year of previous Supt. Tony Smith’s administration (2013-2014), and rose to $22.3 million in 2016-2017.

“At the same time, the district overspent its allocated budget for classified supervisors by over 100 percent in the past two school years.

“Spending for administrators and supervisors with teaching certificates grew 44 percent – from $13.9 million in 2013-2014 to $20 million last school year. Spending in that category exceeded the approved budget by $4 million in 2015-2016 and $1 million last year.

“In the category of professional and consulting services, spending grew 25 percent from $22.7 million in 2013-2014 to $28.3 million in 2016-2017.

“Last year, expenditures for consultants exceeded the budget by 32 percent.“

When interviewed by the Washington Post, Wilson said he had left Oakland with a balanced budget.

Not really.

Categories Broad Foundation, Budget Cuts, District of Columbia, Education Reform, Funding

Texas: Advice to Public Schools from State’s Most Powerful Elected Official: STARVE!

By dianeravitch
November 8, 2017 //
6

In Texas, the Lt. Governor is considered the state’s most powerful elected official. That man is Dan Patrick, a flamboyant former talk show host who hates public schools. Patrick recently spoke in Houston.

Please read this brilliant reaction by Cort McMurray, a Houston area businessman.

A snippet of a great piece:

“Texas Lieutenant Governor Dan Patrick was in town this week, talking schools, school finance, and property tax reform. These are favorite topics for Patrick, who, before becoming arguably the most powerful man in state government, was a Houston media personality, best known for undergoing an on-air vasectomy during a live radio talk show. In his 2015 inaugural address, tucked between the Stetsoned hubris and the cowboy booted jingoism and the liberal quotation of Scripture, Patrick bemoaned the failure of “our inner city schools” and invoked Martin Luther King’s “I Have A Dream” speech to articulate a dream of his own, a “dream of the day every child gets a quality education so they can break the binds of poverty and live the Texas and American dream.”

“It was a “conversation” in which a middle-aged white man was having a “conversation” in a room filled with middle-aged white men and women, talking about “people in the inner city.” Mr. Patrick likes to talk about the “inner city.” It’s a phrase he uses often. He talks about “inner city” schools, which are invariably “failing,” and inner city residents, who are “losing their homes” because they can’t afford to pay the gosh-darn property taxes: It’s not the lousy economy or the drugs and gangs or the relentless tectonic grind of decades of tone deaf public policy that’s ruining the places where the poor folk live. It’s property taxes.

“Patrick speaks about “the inner city” with the smooth confidence of a man who’s never experienced the challenge but knows the precise solution. He’s the loudmouthed guy at the end of the bar, explaining how to hit a Clayton Kershaw slider. He’s the clueless uncle, giving an expectant niece his sure-fire, drug-free tips for managing pain during childbirth. He’s the eternal talk show host, all honeyed words and callus-free hands.

“What Patrick wants has little to do with bringing hope or light to the shadowy spots in our benighted inner cities. What Patrick wants is the evisceration of the Texas public school system, replaced with a quasi-public collection of “charter schools.”

“Property taxes are the primary means of financing public education in the state. Earlier this year, Education Week, a highly respected newspaper, published Quality Counts, its 20th annual analysis of performance in U.S. schools. Texas ranked 42nd out of 50 states and the District of Columbia in student performance, 42nd in “student chances for [post-high school] success,” and 45th in quality of school funding.

“Patrick’s solution to a stretched, struggling, woefully underfunded system? Cut the funding. Starve the schools. Starve them to death.“

The writer doesn’t mention Patrick’s passion for vouchers, which he has promoted for years. The rural districts have allied with urban districts to block them.

You can quote research or you can look at Michigan, where charter schools have proliferated for many years. On national tests, Michigan used to be in the middle of the pack. Now it has fallen to the bottom. Or D.C., one of the lowest performing districts in the nation, which has had charters and vouchers since 2004.

Categories Accountability, Budget Cuts, Charter Schools, Education Industry, Funding, Privatization

National Superintendents Roundtable: How the GOP Tax Proposal Would Affect Public Education

By dianeravitch
November 6, 2017 //
15

A memo from James Harvey, CEO of the National Superintendents Roundtable:

The House GOP unveiled a 429-page tax reform bill late this week that lowered the corporate tax rate from 35 to 20 percent, raised the standard deduction, and sought to keep lost revenue down to $1.5 trillion by eliminating dozens of deductions now available in the existing tax code. Several press accounts document the profound impact these changes will have on students, families, and educational institutions. Here’s what’s on the chopping block:

Existing Tax Code

Deduction for interest on student loans
Eliminate

Deduction for college tuition
Eliminate

Business deduction for employees’ tuition
Eliminate

Coverdell Education Savings Accounts*
Eliminate

Section 529 college savings accounts*
Add K-12 private schools

$250 teacher deduction for supplies
Eliminate

Deduction for state sales taxes**
Eliminate

Deduction for state/local income taxes**
Eliminate

Deduction for property taxes**
Cap at $10,000

* Coverdell Education Savings Accounts are tax-free accounts for middle- and lower-income families to pay up to $2,000 for qualified education costs, including college costs and some private K-12 expenses. Although eliminating this vehicle, the House GOP package simultaneously extends the existing Section 529 college savings program to permit all parents, no matter how wealthy, to set aside up to $10,000 tax-free for K-12 private schools.

** These income sources at the local level are the foundation of school funding. Limitations on these features will make passage of school levies and bonds more difficult, as voters realize their state and local taxes can no longer be used to off-set their federal tax liabilities and that they will be taxed on taxes already paid.

Categories Funding, Republicans

Carol Burris: Something Mike Petrilli And I Agree On

By dianeravitch
November 5, 2017 //
13

Carol Burris, executive director of the Network for Public Education and its Action Fund, writes:

I rarely agree with Fordham’s Mike Petrilli, but this week he nailed the Republican tax reform plan with these two tweets:

Every friend of public education must spring to action this week to oppose the House tax reform bill. That bill is a clever attempt to create a backdoor voucher, and at the same time undermine funding for public schools.

 

You cannot let this one pass. Act now. Send our NPE Action email to your House member. But that is not enough. Post the link on your Facebook page, send it by email,

pick up the phone and call your representative.

 

This bill is part of the master plan to destroy public education.

 

Use this link to send your email, and then share it.

Categories Budget Cuts, Education Reform, Funding

GOP Tax Plan Will Hurt Teachers and Public Education

By dianeravitch
November 4, 2017 //
21

In Education Week, Allyson Klein and Andrew Ujifusa report that the GOP tax proposal will have negative effects on funding for public schools.

“The Republicans’ much-anticipated legislation to change the federal tax system includes a victory for school choice advocates: It would allow families to use up to $10,000 in savings from 529 college savings plans for K-12 expenses, including private school tuition.

“Overall, the bill released Thursday would slash corporate and some individual tax rates, offsetting the cost by nixing other deductions. That includes a $250 deduction that teachers can use to cover classroom expenses, such as books, art supplies, and rewards for students. The bill would also eliminate the deduction for state and local income and sales taxes, a step advocates warn could pinch K-12 spending at the district and state level. More on that below.

“And the legislation would put an end to the so-called Coverdell Accounts, tax-free accounts which families currently can use to cover up to $2,000 of K-12 costs, including private school tuition, in favor of the 529 change. Families could also use 529s to cover the cost of apprenticeships and could open an account when a child is “in utero” or “unborn.” We previewed the possibility of a 529 benefit for K-12 back in August. It has strong support from the Heritage Foundation, a conservative think tank…

The inclusion of 529 plans for K-12 in the tax package represents the first tangible win in the Trump era for school choice, a huge priority for DeVos.

But a tax credit for donations to fund private school scholarships, which some speculated would be a part of changes to the federal tax code, does not appear to be in the bill. Congress has also rejected the administration’s budget proposals to create a federal voucher program.”

The reduction in the deductibility of state and local taxes will hurt public school funding by reducing revenues.

“Teachers’ unions are unhappy about the elimination of the state and local tax deductions—but also upset about the decision to scrap the tax deduction to help teachers furnish their classrooms. During the 2012-13 academic year, teachers spent a total of $1.6 billion out of their own pockets for classroom expenses, according to a survey by the National School Supply and Equipment Association. A separate survey conducted during the 2015-16 school year found that each teacher spent $600 on average of his or her own money on those supplies and materials every year.”

SPEAK OUT AGAINST THE GOP TAX PLAN! IT TAKES AWAY THE SMALL DEDUCTION THAT TEACHERS USE TO COVER THE COST OF SCHOOL SUPPLIES THAT THEY PAY FOR, WHILE ENABLING WEALTHY FAMILIES TO CLAIM TAX CREDITS FOR PRIVATE SCHOOL TUITION.

The Network for Public Education is encouraging everyone to write to their members of Congress to vote against this unfair and unwise tax plan. It will hurt public schools and aid wealthy families.

Categories Funding, Privatization, Republicans, Teachers

Education Law Center Wins Court Ruling on School Funding in New York

By dianeravitch
October 27, 2017 //
9

New York has had a long running court battle over equitable funding. The plaintiffs seeking additional funding have won in court, but the legislature and the Governor have ignored the rulings and owe the urban districts $5.5 billion.

Yesterday the Education Law Center won another judgment in court, this time on behalf of the state’s “small cities.” Will the legislature and Governor obey the court ruling?

IN SMALL CITIES FUNDING CASE NY APPELLATE DIVISION COURT UPHOLDS CAMPAIGN FOR FISCAL EQUITY

ORDERS TRIAL COURT TO MAKE DETERMINATION REGARDING FUNDING NEEDS OF SCHOOLS
October 26, 2017

New York’s Appellate Division Third Department issued a groundbreaking ruling today in Maisto v. State, a challenge to inadequate school funding for students in eight New York “Small Cities” school districts.

The Appeals Court unanimously reversed the trial judge’s ruling, which dismissed the case without examining the extensive evidence presented during the two-month trial in 2015. The Court reaffirmed the framework established in the Campaign for Fiscal Equity (CFE) rulings for analyzing claims of violations of New York’s Education Article. The Court made clear that in school funding cases, the trial court must examine the evidence regarding deficiencies in essential education resources, or inputs, student performance, or outcomes, and whether a lack of funding is a causal factor in resource deficits and low outcomes.

The Appeals Court remanded the case to the trial court for specific findings on inputs and causation for each of the eight Maisto districts: Jamestown, Kingston, Mount Vernon, Newburgh, Niagara Falls, Port Jervis, Poughkeepsie and Utica.

Highlights of the Appellate Division ruling include the following:

1. The trial court erred by refusing to apply the CFE standards and failing to examine the extensive evidence presented for each district regarding inputs, outputs and causation;

2. On remand, the trial court must consider a broad range of inputs necessary for a sound basic education, including not only teachers and instrumentalities of learning, but also class size and supplemental services, such as academic intervention services, extended learning opportunities and social workers.

3. The proper standard for establishing causation on remand is whether the plaintiffs showed that increased funding can provide inputs that yield better student performance, evidence the State’s own experts conceded for every district.

“This is a great victory for the 55,000 children in the eight districts, and for children across New York State,” said Greg Little, Education Law Center’s Chief Trial Counsel and lead counsel in the Maisto trial. “The abundant evidence showed massive deficiencies in basic educational resources that deprived these needy students of their constitutional rights. We are confident that after considering the evidence on remand, the court will vindicate the rights of the students in these impoverished districts.”

Billy Easton, Executive Director of the Alliance for Quality Education, said, “Once again, a court has upheld the rights of students to a sound basic education. We hope the legislature and Governor will take heed of this decision, the second in two months, and finally make CFE’s decade-long promise a reality, without further delays or the need for further court cases. New York cannot sacrifice another generation of children to political or legal gamesmanship.”

In addition to ELC’s Greg Little, David Sciarra and Wendy Lecker, the Maisto school children are represented by Robert Biggerstaff and David Kunz in Albany, and Robert Reilly and Megan Mercy of the NYSUT General Counsel Office.

More information about the Maisto case is available here.

Press Contact:

Sharon Krengel
Policy and Outreach Director
skrengel@edlawcenter.org
973-624-1815, x 24

Categories Accountability, Equity, Funding, New York

Bad News from Texas: Moderate Republican Leader Joe Strauss Will Not Seek Re-Election

By dianeravitch
October 26, 2017 //
16

Joe Strauss, Speaker of the House in Texas, announced that he would not seek re-election.

This is very bad news for Texas.

Speaker Strauss has prevented voucher proposals from getting out of Committee. He understands that more than 90% of the children of Texas attend public schools, and he has protected public schools from extremists who want to take public money for religious schools. He prevented the “transgender bathroom” bill from coming to the floor, knowing that if it passed it would lead to a national boycott of Texas by major corporations and cost the state billions in revenues. It would also make the Great state of Texas look as hateful as North Carolina when it passed HB 2.

He has led the fight against ignorance and bigotry with intelligence and skill.

Now the scramble begins to replace him.

I pray that there is someone with the brains and guts of Joe Strauss waiting in the wings.

Categories Funding, Supporting public schools

Ohio: Fordham Knocks Stephen Dyer for His Criticism of Charters; Dyer Strikes Back

By dianeravitch
October 21, 2017 //
14

Stephen Dyer is a Senior Fellow at Innovation Ohio and a former legislator. He has scrutinized state data exhaustively and reported that district schools outperform charter schools by every measure: test scores, graduation rates, achievement gaps. The Thomas B. Fordham Institute didn’t agree with his conclusions. Although it claims to be a think tank, it is in fact an advocacy group for school choice.

The Thomas B. Fordham Institute, which is technically based in Dayton (where the late Mr. Fordham lived) is actually based in D.C., is an authorizer of charter schools in Ohio. Authorizers are paid a commission on every student who enrol in charter schools so it is a lucrative role. I was a board member at TBF and an original founder. I opposed the decision to become an authorizer because I thought that it conflicted with the role of a think tank, which should be free to critique or praise anyone without fear or favor. I was outvoted.

In this post, Stephen Dyer responds to TBF criticism.

He explains that every public school in Ohio receives less money so charters can be funded.

“According to the final state payment made to school districts from June, there were 1.7 million students in Ohio set to receive $7.95 billion in total state aid. That’s works out to $4,657 (I’m rounding here) for every student in local public school districts.

“Then come charter schools.

“According to the report, $898 million left school districts last year for charters (a district-by-district breakdown I received from the Ohio Department of Education puts that tally at $935 million, so there’s that). Leaving with that funding were 113,613 students.

“So, after losing the funding and students to charter schools, the remaining 1.59 million children in Ohio school districts were set to receive $7.05 billion in state revenue, or $4,425 each.

“That means that the charter deduction costs every kid in Ohio school districts, on average, $231.51.

“This is why I compare charter school performance with school district performance. Because charter schools affect every kid in a school district. Profoundly. How profoundly? Let’s look at Columbus.

“Prior to the charter school deduction, every kid in Columbus City Schools is set to receive $4,559 in state funding. However, once the $145.65 million and 18,541 students are transferred to charter schools, the remaining 53,532 students who attend Columbus City School buildings receive $3,418 per pupil. That is a difference of $1,141.62. So charter schools cost students who are in Columbus City Schools about 1/4 of their state revenue. That’s every student in Columbus, regardless of wealth, race, or disability, Jamie.

“Every.

“Single.

“Student.

“So if this profound a change in state funding is going to happen for the 75 percent of children who remain in Columbus City Schools, or the 93 percent of children who remain in Ohio’s local public school districts, we’d better be damn sure it’s worth it. Is it worth removing $1,141.62 from kids in the best performing school in Columbus so thousands of kids can go to ECOT, for example (ECOT is the largest recipient of charter school transfer funding from Columbus)?

“I would say that’s a big, “No.”

“Now my friends at Fordham often complain that charters don’t get local revenue. And while that’s true, I fail to see how that justifies removing millions of state dollars from kids in local school districts. If the legislature believes in school choice so strongly, then set aside $260 million or so to make up for the lack of local revenue.

“Stop taking it from the 1.59 million kids who aren’t in charters.“

Categories Accountability, Charter Schools, Education Industry, Education Reform, Funding, Ohio, Privatization

Michigan: State Senate Steals Money from Public Schools and Gives It to State’s Failing Charter Industry

By dianeravitch
October 19, 2017 //
17

If ever you want evidence that Betsy DeVos bought and paid for the legislature in Michigan, consider the decision just made by the State Senate to take money approved by voters for their public schools and give it to charter schools. More than 80% of the state’s charters operate for profit. They get worse results than the state’s public schools. The state has minimal expectations or accountability for charter schools. Why are they getting more money?

“The Michigan Senate passed a controversial bill Wednesday that will allow charter schools in the state to collect revenues from enhancement millages levied by intermediate school districts.

“Republicans said the bill would treat all students — whether they attend traditional public schools or charter schools — fairly, but Democrats said the legislation was stealing money that voters approved for traditional public schools and shifting those funds to charter schools.

“I introduced this bill because there are 14,000 … students in Kent County that aren’t being treated fairly,” said Sen. David Hildenbrand, R-Lowell. “And there are 56,000 students in Wayne County that aren’t being treated fairly either.”

“But Sen. Curtis Hertel, D-East Lansing, said voters approved the millages with the knowledge that the money would go to traditional public schools in their county.

“This bill takes school funding, which is already stretched to the max in the state, and tries to stretch it even further,” he said. “This is corporate welfare. It’s stealing.”

“Enhancement millages can be used for just about anything by a school district, including lowering class sizes, hiring teachers, upgrading technology or purchasing materials.

“The Wayne County school districts could be hit the hardest if the legislation receives final passage because the county has more than 100 charter schools. The county approved a 10-year enhancement millage in 2016 that is raising $80 million annually that is split among the county’s 33 public school districts.

“Hildenbrand said his intent with the bill is that it won’t affect existing millages, only when a renewal or new millage comes up before voters. But in its analysis of the bill, the Senate Fiscal Agency concluded it would apply to existing millages, too.

“And Senate Minority Leader Jim Ananich, D-Flint, said the language in the bill is so vague that charter schools — some of them for-profit operators from out-of-state — could claim the funding.

“The language matters and it was ambiguous at best and at the very least it’s showing that we’re putting profits before educating all of our students,” Ananich said.”

Why fund failure?

Categories Accountability, Charter Schools, Corporate Reformers, Education Industry, Education Reform, For-Profit, Funding, Michigan, Privatization
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