School Finance

State funding debate makes IPS budgeting 'murky'

PHOTO: Scott Elliott
IPS will give bonuses to many support staffers and administrators. But AFSCME Local 661 has not ratified the contract.

Indianapolis Public Schools could lose as much as $18 million in state aid over the next two years if changes to the state’s school funding formula approved by the Indiana House last month make it into law.

Without changes to the budget bill, those losses could be much more.

As it stands today, an apparent mistake in calculating school district poverty rates could set IPS back another $14 million if it’s not fixed by the Senate this month.

Despite all that uncertainty, IPS on Monday proposed an operating budget that assumes state revenue will be basically unchanged from last year.

Why?

Well, district officials say, there wasn’t much else they could do for now.

State law requires school districts to publish and advertise their budget proposals before submitting them to the state by an April 1 deadline.

But at this point, IPS can only guess how much state aid it will receive next year.

The district simply cannot make a budget based on a proposed state budget that is likely to change, Superintendent Lewis Ferebee said. The best it can do is plan as if everything will remain the same and be prepared to adjust as the budget takes shape.

“It would be an overreaction or a knee-jerk to start the plan based on what we’ve learned thus far,” Ferebee said.

IPS’s proposed $232.7 million general fund budget for 2015-16 instead assumes state aid will continue to drop by $91.40 per student as part of a seven-year plan to even out state support between wealthy and poor districts. Districts like IPS, with large numbers of poor children, can receive up to $3,000 per student more than the school districts with the least poor children.

Republicans, who control the legislature, have argued that gap is too wide and should be narrowed. IPS and other poor district say they need every extra dollar to help poor children overcome barriers to learning that many of them face.

The school board will vote on the budget next week, knowing it is simply a best guess.

Board member Sam Odle said the board must aid Ferebee in making the district’s case to the legislature.

“The rest of us have to make sure IPS is represented at the Statehouse and our lawmakers understand how important it is to keep IPS’s funding up so we can create the right educational experience for our students,” he said.

One further complication for IPS: the district is shifting from a calendar year budget to a fiscal year budget that runs July 1 until June 30 of the following year. The goal is to better match the budget process to the rhythms of the school year.

“This first transition year is of course awkward,” Ferebee said. “We believe this will allow us to be good stewards and live within our means and have better allocations to schools. We know it’s going to be a little murky at first.”

Here’s what the district envisions that next school year’s general fund budget for day-to-day expenses will include:

  • No surplus. Income is expected to match expenses. IPS had surpluses of $4 million and $8 million the past two years.
  • An assumption that the district’s enrollment will remain basically steady. The district is not planning for enrollment to grow as it did in 2011-12 and 2012-13, but also does not expect it to fall as it did last year.
  • No plan for a significant raise for employees. The budget includes only a tiny $114,000 bump to about $164.6 million allocated for salaries. The district expects to spend $1.4 million more than last year on benefits.

Board member Gayle Cosby said she was not thrilled to see a meager increase in the district’s proposed budget for salaries. Board members and Ferebee have repeatedly said they’d like to give raises next year to IPS teachers.

But Ferebee said the plan was difficult to put together because of the uncertainty of budget talks at the Statehouse. The Senate has just begun their debate about the issue, and will later have to confer again with the House before coming to an agreement.

“You do it knowing there’s going to be a lot of back and forth at the Statehouse and you wait patiently until you get the final word,” Ferebee said. “We’ll be a part of those conversations and we look forward to fruitful conversation about how IPS can be best supported.”

It’s too early to know what the district will be able to do when it comes to raises, Ferebee said. Bargaining with the teachers union will begin over the summer.

“What we worry about is that what’s being proposed may compromise our ability to move forward with some of our strategic priorities we’ve discussed and may comprise our ability to be as competitive as we want to be with teacher compensation,” Ferebee said.

The school board is scheduled to vote to adopt the budget on March 19.

Alliance

Memphis just gained an important ally in its legal battle with Tennessee over school funding

PHOTO: MNPS
The board for Metropolitan Nashville Public Schools voted Tuesday to become a co-plaintiff in Shelby County Schools' funding lawsuit against the state of Tennessee.

For more than two years, a funding lawsuit by Memphis school leaders has been winding through the state’s legal system.

Now, as the litigation inches closer to a court date next year, Shelby County Schools has gained a powerful ally in its battle with Tennessee over the adequacy of funding for its schools and students.

The board for Metropolitan Nashville Public Schools voted unanimously Tuesday to become a co-plaintiff in the case.

The decision ends almost three years of talk from Nashville about going to court.

In 2015 at the urging of then-director Jesse Register, the district’s board opted for conversation over litigation with Gov. Bill Haslam’s administration about how to improve education funding in Tennessee.

But Register moved on, and the board’s dissatisfaction grew as the percentage of state funding for the district’s budget shrank. Adding to their frustration, Haslam backed off last year from an enhanced funding formula approved in 2007 during the administration of his predecessor, Phil Bredesen.

“We’ve just come to grips with the harsh reality that we are a chronically underfunded school system,” said Will Pinkston, a board member who has urged legal action.

Nashville’s decision is welcome news for Memphis. A statement Wednesday from the state’s largest district called the lawsuit “the most important civil rights litigation in Tennessee in the last 30 years.”

“When you have the two largest school districts in Tennessee on the same side, I think it’s very powerful,” added former board chairman Chris Caldwell, who has championed the lawsuit in behalf of Shelby County Schools.

Both boards are working with Tennessee-based Baker Donelson, one of the South’s largest and oldest law firms. It has offices in both cities.

“We believe that our original case had a strong message about the inadequacy of education funding in Tennessee,” said Lori Patterson, lead attorney in the case from Memphis. “We believe that having the second largest district in the state join the suit and make the same claims only makes the message stronger.”

PHOTO: TN.Gov
Gov. Bill Haslam

Haslam’s administration declined to comment Wednesday about the new development, but has stood by Tennessee’s funding model. In a 2016 response to the Shelby County lawsuit, the state said its formula known as the Basic Education Plan, or BEP, provides adequate funding under state law.

But Shelby County, in its 2015 suit, argues that not only does the state not adequately fund K-12 schools, it doesn’t fully fund its own formula. And the formula, it charges, “fails to take into account the actual costs of funding an education,” especially for the many poor students in Memphis. To provide an adequate education, the lawsuit says the district needs more resources to pay for everything from math and reading tutors to guidance counselors and social workers.

States often get sued over funding for schools — and frequently lose those cases. In Tennessee, state courts heard three such cases from the late 1980s to the early 2000s, siding with local districts every time. Those suits keyed in on built-in inequities in the state’s funding formula that cause some districts to get more money than others.

This time, the argument is about adequacy. What is the true cost of educating today’s students, especially in the shift to more rigorous academic standards?

Tennessee is also the defendant in a separate funding lawsuit filed in 2015 by seven southeast Tennessee school districts including Hamilton County Schools in Chattanooga.

Pinkston said Nashville opted to join the Memphis suit because its arguments are most applicable to the state’s second largest district. “Our student populations are very similar in terms of high socioeconomic needs,” he said.

transportation

Parent concerns prompt Denver Public Schools to change how it’s spending a chunk of tax dollars

PHOTO: RJ Sangosti/Denver Post
An RTD bus heads downtown along Colfax Ave. in 2016.

Denver Public Schools is changing course on how it will spend $400,000 in local tax dollars earmarked for student transportation after parents and community organizations claimed the district had not followed through on a promise to increase options for high school students.

The dollars are part of a $56.6 million tax increase voters approved in November. This school year, the district allocated $273,000 to buy bus passes for 630 additional students at two schools: Northfield High and Denver School of Innovation and Sustainable Design. However, it earmarked the remaining $127,000 to pay for transportation for special needs students.

Superintendent Tom Boasberg announced Monday evening that the $127,000 set aside for special needs transportation would be immediately reallocated so that all $400,000 is being spent on bus passes for high school students.

“We’ve heard loud and clear from the community,” Boasberg said.

Parents and other advocates say that while the reallocation is a move in the right direction, it doesn’t relieve all of their worries about how the money will be spent.

“That’s great,” parent Karen Mortimer said. “But what is your next step?”

Transportation is a hot-button issue for Denver Public Schools. The district has been nationally recognized for its school choice system, which allows its 92,000 students to request to attend any one of its more than 200 schools. However, DPS does not provide transportation to most students who choose a school that is not the assigned school in their neighborhood.

Critics argue that not providing transportation to all students leaves families who don’t have a vehicle or the means to transport their children across town with no choice at all.

Nearly half of the district’s 20,623 high school students — 9,256 — don’t qualify for DPS transportation because they don’t attend their assigned schools, according to numbers presented to the school board at a work session Monday night.

Another 4,394 don’t qualify for transportation because they live within three and a half miles of their assigned schools, a distance the district considers walkable.

In a bid to reduce those numbers, a committee of 75 parents, students, teachers and taxpayers tasked with recommending how to spend the tax revenue suggested earmarking $400,000 each year for a “new effort to increase high school students’ access to high quality schools and educational opportunities through greater transportation options.”

Whereas most ideas for how to spend the $56.6 million in tax revenue came from DPS staff, the idea to expand transportation originated with the committee members.

The final recommendation, which was adopted by the school board, said DPS would “work with community stakeholders to secure matching funds, and design and implement a test effort to positively impact students,” which has not yet happened.

If the test effort wasn’t working, the recommendation said, the district could use those funds “for other efforts to increase access to educational opportunities.”

In a statement Friday, Superintendent Tom Boasberg said the district was using the funds “as promised,” a contention advocates disputed, to pay for transportation for high school students and students with special needs. DPS saw an increase this year of 78 students whose needs exceed the district’s capacity to serve them and who are being bused elsewhere by third-party companies, according to a district spokeswoman and information provided to the school board.

But Boasberg said Monday that as of this month, the $127,000 that was earmarked for special education transportation would be spent on high school students instead. District officials estimated that sum would buy an additional 370 bus passes. Boasberg said they “look forward to a discussion with the community” about how to distribute them.

Meanwhile, community members said they’re still confused about how DPS distributed the 630 additional passes it already purchased with the $273,000 in tax revenue.

“The community was left out of the loop,” said Matt Samelson of the Denver-based Donnell-Kay Foundation, which has been pushing for the district to come up with a plan for how to use the $400,000 before February, when families must make their school choices for next year. (The foundation is a financial supporter of Chalkbeat).

District spokeswoman Nancy Mitchell told Chalkbeat that most of the 630 passes went to students at Northfield High, a comprehensive high school that opened in northeast Denver in 2015. The district had been providing yellow bus service to Northfield because the Regional Transportation District didn’t serve the area. But it does now, Mitchell said, so Northfield students who meet the district’s criteria for bus passes got them this year.

To qualify for transportation, high school students must attend their assigned schools and live more than three and a half miles away. District policy allows other students to receive transportation, too. That includes those learning English as a second language, for example, or those attending certain types of schools, including magnet and Montessori schools.

Students at Denver School of Innovation and Sustainable Design, which also opened in 2015, received a portion of the 630 passes because the district “determined DSISD most resembles a pathway school for purposes of transportation, as they do not have an enrollment boundary,” according to a statement from DPS spokeswoman Jessie Smiley.

“Pathway” schools are alternative schools that serve students who’ve struggled elsewhere. DSISD is not a pathway school. It was rated “blue” this year, the highest rating on the district’s five-color scale.

Not counting the students who received the 630 extra passes purchased with the tax money, 2,565 high school students were eligible this year for Regional Transportation District bus passes, according to district officials. That’s up from 2,376 last year. In addition, nearly 5,000 high school students qualify for yellow bus service because they attend a school in an “enrollment zone,” which is essentially an enlarged boundary that contains several schools.

Boasberg said that while the district would like to provide transportation to even more students, it must balance spending money on buses with spending money in classrooms. DPS already spends $26 million of its nearly $1 billion budget on transportation, according to information provided to the school board. Even if it wanted to hire more drivers, district officials said they’re having a hard time finding them in a thriving economy; DPS is down 40 drivers this year.

To come up with a solution, Boasberg said the district must collaborate with the city and the Regional Transportation District, which has commissioned its own task force to come up with new pricing recommendations. DPS officials have been participating in that group.

“Ultimately, RTD has assets and abilities as a transportation entity to specialize in what they specialize in,” Boasberg said at Monday’s school board work session. “Our specialty is in educating students. The more we can be collaborative with RTD … the better.”

But advocates said participating in other agencies’ processes isn’t enough. DPS should be leading its own investigation into how to expand transportation options by gathering parents, students and community members to come up with ideas, they said.

“There have been lots of conversations but DPS hasn’t led any of them,” Samelson said.

Unlike other programs and initiatives funded by the tax increase and suggested by district staff, the transportation expansion proposal hasn’t gotten the attention it deserves, he said.

“We’re trying to help the district increase access to schools for students but we feel pushback, we feel stonewalled, we feel like we have to argue our way into this premise that increased transportation is good for kids,” Mortimer said. “We just don’t understand it.”