Category Archives: School Finance

Danger, Will Robinson… danger! Ed News Colorado today brings our attention to the latest edition of the state education department’s “Fiscal Health Analysis of Colorado School Districts.” Agency workers take a look at five key indicators to see if a school board is undertaking risks that lead a district into financial stress. This year, 48 of 178 Colorado school districts earned at least one of the five warning lights — which are based on careful looks at things like assets, expenditures, fund balances, and debt. Nine of the 48 districts picked up two indicators. Two of the nine districts earned two indicators for the second straight year: Jefferson County and Trinidad. But Jeffco, the state’s largest school district, stands alone in having multiple fiscal health indicators for three consecutive years (only Trinidad and tiny Hoehne Reorganized 3 had even one indicator throughout that time span).

The education establishment in Alabama doesn’t seem to have recovered from the big blindside victory for kids four months ago, when the state adopted a scholarship tax credit program. It’s made for a lot of fodder in the local media, including today’s gem from the Times Daily Montgomery Bureau: Several [state board of education] members have been outspoken against the Accountability Act and lack of input they had into it. “How in the world are we allowing corporations to pay for children to go to private schools?” said Ella Bell, of Montgomery. “Is there any legal ramifications of this? “I am going to seek legal advice on this because it is unfair to the children of my district.”

Some may look at the Fourth of July as an occasion to celebrate an important event in ancient history (hey, it’s ancient to me, ok?). But this year in Colorado, it also provided the opportunity to relive a different kind — a more frustrating kind — of history. I’m talking about the need to debunk a phony statistic… again. Once upon a time it may have been a real but misleading figure; today it’s a complete fabrication. Where’s the shame? As a Complete Colorado original editorial shows, proponents of the billion dollar tax increase have dredge up the “49th in education funding” canard to pitch their initiative:

After an earlier hiccup left the innovative program’s status in doubt, I’m excited to see creative Louisiana leaders get the go-ahead for a new plan to launch Course Choice in 2013-14. The state’s Board of Education yesterday approved $2 million in funding for a pilot program that enables secondary students in schools graded C or below to take an approved course from one of 40 different public or private providers. (Other students are only eligible to select a course if their school doesn’t offer the subject.) Three of the leading national advocates in the digital education arena — the Clayton Christensen Institute, Digital Learning Now, and iNACOL — teamed up to celebrate the news, explaining what the program really offers:

A few days ago I told you about the national attention attracted to Douglas County School District’s market-based pay system. That was before Choice Media highlighted the story on its Ed Reform Minute, or the Education Intelligence Agency’s Mike Antonucci linked to the Reuters story with the quip: In Douglas County, Colorado, they are actually going to offer more pay to attract teachers in shortage areas, thus becoming the first school district to enact the law of supply and demand. Supply and demand? Whoa, how radical for K-12 education! First, let me assure you there is no known threat of economists taking over schools. Put those conspiracy flowcharts away. Douglas County’s fluid system assigns new teacher hires to one of five different salary bands, based on which of 70 teaching job descriptions for which they have applied. Both middle school and high school social studies instructors (who presumably cover economics in class) fall in the lower two pay bands. For some, however, like displaced union president Brenda Smith, a basic principle of economics is just a passing fad for the world of education:

Mike Antonucci is doing yeoman’s work at the Education Intelligence Agency, going state by state to update K-12 student, employee, and spending data from the U.S. Census Bureau. I’ve called on his helpful charts that show the relationship of pupil enrollment to teacher hiring, and how states (and even districts) are doing financially compared to five years earlier. Friday it was Colorado’s turn in the spotlight. Antonucci came at the information from an interesting angle, showing that Denver Public Schools’ ProComp “performance pay” system has not deterred new hiring. He makes a few other valuable observations. But leave it to little old Eddie here to uncover a few more interesting tidbits from the data for you all. First of all, the Census Bureau says the state’s per-pupil funding grew by 8.3 percent from 2006 to 2011 — just short of keeping pace with inflation. Yet as Antonucci explains in a newer post, school districts typically are not set up to absorb the occasional recessionary cuts like they are the frequent increases that outstrip the “marginal costs”:

Yesterday I took a glance back at how Colorado’s charter school law came to be, a truly fascinating story that’s worth the time to check out. To keep the history kick going, today I’m turning my attention to an Ed News Colorado story by Todd Engdahl about Colorado voters’ “habit” of rejecting education tax increases. Behavioral patterns connected with exercising a little self-restraint are usually deemed to be good habits. Raising taxes is anything but an effective solution for a education system that isn’t exactly built to be productive. A key problem with the current billion-dollar tax initiative is that it’s not tied to nearly enough substantive reform to give voters confidence that the money will yield significantly positive results.

Apologies to all if I seem a little off-kilter today. You see, it’s finally sunk in that for the first time I can remember, there is a world of Colorado education without a Lobato funding adequacy lawsuit. A few months ago, as the two sides argued their respective cases before the state Supreme Court justices, I remarked how we need school finance reform, not a constitutional crisis. And yesterday’s ruling gives us that helpful reprieve. I can understand, no doubt, why emotions are running high for some plaintiffs who expended so much time and energy fighting to sway the judges into ordering more education funds from the state tax coffers. (Then again, there’s not so much sympathy for the school boards that voted to spend taxpayer dollars suing for more tax dollars and forcing the state to spend money to defend the case. How many of these school districts contributed funds, and how much?) As Professor Joshua Dunn noted in a radio conversation yesterday, one can only wonder what sort of success the Lobato plaintiff team might have had instead spending the past 8 years focused on improving education without expecting the judiciary to give perceived solutions to authentic problems. […]

You may have heard old adages like “Absence makes the heart grow fonder” and “Familiarity breeds contempt.” Well, here comes the young whippersnapper again, questioning longstanding wisdom. When it comes to tax credits for private school choice, I have to say the old adages just don’t work. So the Cato Institute’s Jason Bedrick points out on a new posting. Bedrick looks at states with scholarship tax credit (STC) programs before 2010 that later expanded those programs. He compares eight legislative votes in four different states, before and after, and finds that the vote margin grew significantly and dramatically in all but one case. The Cato analyst concludes:

There are a few possible explanations for all those shouts of “May Day” Coloradans may have heard yesterday. Some might have been the annual calls for an imaginary workers’ paradise, while others might have been desperate pleas of displaced Texans and Californians calling for relief from the late-season snow. In my education policy wonk world, though, “May Day” was code for a noteworthy coincidence. Have you heard? As Ed News Colorado reports, the state legislature yesterday put the finishing touches on Senate Bill 213, the new school finance bill tied to some form of a billion-dollar tax increase initiative. Finishing its partisan course, the senate approved house amendments by a party-line 20-15 tally. Every legislative vote cast for SB 213 has come from Democrats; every vote against has come from Republicans. The Governor, also a Democrat, has given every indication of signing it into law. The strict partisan divide may have something to do with all the bill’s missed reform opportunities, including continued inequities for charters and only a tiny share of total funds assigned to student “backpacks” (and in the final version of SB 213, pgs 139-140, even that small amount of principal “autonomy” is subject to district-level review). […]