School Budget vs. City Plan

By now, everyone must have heard that on the first reading of the Oak Ridge municipal budget, Council voted to deny the schools’ budget request. On a unanimous vote (minus Tom Beehan, who was absent), the Council passed a motion to decrease the education appropriation by $490,944.

It’s no secret that to cut the schools budget by that amount will have a very negative impact. Some of the options include the loss of driver education classes, the 4th grade strings program, eliminating bus service within a 1.5 mile radius of each school, school nurses, band camp, chaperone expenses for students who compete in statewide and national events, 9th grade sports, and contracting bus maintenance rather than paying the City to do so at the City Service Center.

I must admit, learning that the City employees will receive a minimum 6% salary increase while only 3% is budgeted for teachers is troublesome. Learning that the City has been charging the school system not only for parts and labor for bus maintenance (as a regular garage would) but adding a 129% overhead charge plus a 10% “administrative fee” is nothing short of infuriating.

The City’s draft budget shows a 5.9% increase in revenue… yet they voted to hold the schools to a 4.25% increase. In contrast, “General Government” got a 6.2% increase, and the fire department got an 8.2% increase.

The City Council’s travel budget for seven people weighs in at $26,000, while the travel budget for five school board members totals only half that — with much of the school board’s travel being required continuing education by the state.

The 8-cent tax increase required to fund the schools’ request would amount to just $30/year on a $150,000 house, but I do understand Council’s desire to keep a competitive tax rate. I might feel better about the process if I saw them go through the entire City budget, line by line, as the school board has already done, cutting more than $600,000 before even making a request to Council.

They were not frivolous reductions. In some cases, it was just a reduction of the increase, but in other cases, line items were reduced to levels below the previous fiscal year.

If you care about the quality of education in our community and the programs offered, please contact any or all members of City Council. Sooner is better… May 22 will be too late.

Legislatorland this Week

How appropriate that the sun is shining this morning, after a a stormy first half of the week.

Yesterday, HB1849/*SB0872, a bill allowing elected superintendents (at the discretion of County Commission) failed in the House Education Committee on a 6-9 vote. For that, I am thankful.

Superintendents (now called Directors of Schools, but old habits die hard) have a difficult job — one of managing large budgets, personnel, and implementing policy set by an elected board. It’s decidedly a job for a professional, and the type of expertise needed by a school system varies depending on its immediate and long-term goals.

The qualities needed to be elected to public office may or may not be consistent with the qualities needed in a professional director of schools. Worse, most school systems in this state would have a rather limited pool to choose from simply due to population limitations. When Oak Ridge chose a new Director of Schools several years ago, the Board conducted a national search with the assistance of the Tennessee School Boards Association for recruiting and screening.

The present system demands a largely cooperative relationship between the Director and the elected Board of Education, with the former being accountable to the latter. The Board is accountable to the electorate, with the front-line educators insulated from the politics of it all. As they should be.

Voting against HB1849 in committee yesterday were John Hood, Mark Maddox, Joe Towns, Ulysses Jones, Larry Turner, Tommie Brown, Gerald McCormick, Dolores Gresham, and Speaker Jimmy Naifeh — I’ll be writing each of them today to thank them.

Voting for the bill were Les Winningham, Harry Brooks, Richard Montgomery, Beth Harwell, John Mark Windle, and Eric Swafford. These are not bad people; indeed, at least two (that I know of) have served as school superintendents before. They were, however, pressured by their respective county commissions, and voted wrongly on this one.

* * * BEP/Fiscal Capacity
On Tuesday, the News Sentinel reported that House sponsors of an effort to change the BEP’s fiscal capacity formula to a flawed model favoring the four largest metro school systems abandoned the cause for this year, with plans going forward for a study this summer to achieve a consensus on funding changes.

Change is desperately needed, but not the kind where money is just moved around from one system to another. If we are to improve statewide, then the State must commit to pay for those things it requires, while giving local governments the option to provide more if they so choose.

I’ll take a temporary win over a permanent loss, but we have to make sure that cities like Oak Ridge, Kingsport, Athens, Cleveland, Tullahoma, Clinton, and Murfreesboro have a seat at the table when changes are discussed.

Having dogged this issue for almost two years now, I’ll say it again: we can’t give up until this proposal is dead, buried, with grass growing on top.

Back to Schools

The budget was adopted last night, and now goes to City Council, whom, I’m certain will not be pleased. Up until late Thursday evening, I still believed that it must be possible to meet the 4.25% growth guideline without major damage to our academic programs… but after making my way through two pages of proposed reductions (that’s two pages of nine-point type) that wouldn’t work, I felt like a complete failure.

Having rested a bit since then and looked at it with fresh eyes and mind, I’ve concluded that my only failure was in not recognizing what we were up against from the beginning. To meet the City’s guideline, we would have to not teach something that we now do. Like driver’s ed. To me, it’s unacceptable to go backwards.

Now, we go to City Council and make our case… hoping against hope that there’s an unknown revenue source, or that maybe the City would settle for providing the same pay increase to its employees (3%) that the teachers are budgeted to receive.

* * *
The Oak Ridger has taken a calm and very circumspect view of the recent staff change at Oak Ridge High School in today’s editorial; I think there’s some real truth in the title of the piece.

Without a doubt, it’s one of the most challenging — and most high profile — principalships in the state. Add in the construction, and you have a challenge in a muddy fishbowl: everyone’s watching, and everything around you is a noisy mess.

Come to think of it, there could be an idea for another one of those sick, twisted reality shows.

Thankfully, Chuck Carringer has proven capable of managing in the interim (if we don’t work the poor man to death, who already had his hands full with two jobs — now three), the school year is almost over, and we have time to settle down a bit and move forward in an appropriate fashion.

Is it Friday yet?

May 30 Tax Vote Likely

It appears that Anderson County Schools Superintendent-turned-County Commissioner, V.L. Stonecipher, has finally succeeded in gathering enough valid signatures to force a sales tax referendum on elevating the sales tax countywide.

My objection to this effort is not raising the sales tax; obviously, citizens have the right to do that by referendum. My objection is that all it really does is to reallocate tax revenue from four incorporated cities to the County.

Two years ago when Oak Ridge voters overwhelmingly approved a sales tax referendum to fund the note on reconstructing Oak Ridge High School, there was a “gentlemen’s agreement” with county officials to not supersede the tax rate for a period of five years.

Doing so at this point puts a serious dent in the financing plan for the high school renovations, which have already been contracted and begun.

How can these four cities — indisputably, the economic engines of the County — make up the difference in their budgets if the referendum (in which none of their residents can vote) should pass?

  1. property tax increases
  2. annexation.

The referendum is being sold to County voters as “it won’t really affect the taxes you pay, since you shop in the cities anyway; it’s just taking money from them and keeping it for yourself.”

Maybe County Commission needs to re-think their position on allowing Clinton to annex the property near I-75, which would generate a lot of new sales and property tax revenue for the County. Maybe they need to think about growing the pie, instead of eating someone else’s piece.

The Schools Budget Difficulty

People do wonder why balancing a school system budget is trying, even in a generous, supportive city like Oak Ridge.

There are several reasons, but one that affects nearly every school system in the state is that teachers are funded at the system level (according to the number of students), but the state-mandated class sizes must be applied at the school level. So, if we’re one student over the class-size limits at school A, and ten under at school B, we have to hire an extra teacher for school A (who is not funded by the state). If we don’t, there’s a $50,000 fine. The alternative would be to shuffle students between schools every year. I can just imagine how thrilled parents would be with that idea… not to mention that it would be very disruptive to instruction.

The problem is not unique to Oak Ridge; every school system has the same difficulty unless they only have one school containing each grade level.

In our case, the State funds 259 teachers (actually, 65% of the BEP salary for 259 teachers); however, we have 336.65 teachers, most of whom are required to meet the class size mandate. That difference of 77.65 teachers amounts to $10,792,417 that has to be funded exclusively from local sources.

Adding insult to injury are a 20% increase in the cost of electricity; 45% increase in the cost of natural gas to heat the schools; and a whopping 62% increase in the cost of diesel fuel and gasoline.

The key difference between the school system and every other business or homeowner is that we are wholly dependent on revenues allocated by others, and obligated to fund things that are not paid for by those creating the mandates.

Bless the citizens of this city, who do all that they do voluntarily. You just don’t know what a difference you make.

Consolidation Study in Memphis

The Commercial Appeal reports that an education task force formed to study consolidation of the Memphis and Shelby County school systems has instead reported on three potential methods to change the way those school systems are funded, without consolidating.

All three freeze the current school system boundaries, to avoid the conflict that inevitably arises when Memphis annexes property, and the residents don’t want to change from Shelby County to Memphis City Schools.

The differences fall in who gets taxed more, and whether those tax dollars stay in the resident’s school district or go predominantly toward the other. In all cases, taxing authority is removed from the City or County government, and placed in the hands of the school boards (and/or State Legislature).

Despite the fact that under the current system, for every dollar raised by Shelby County taxpayers for their own schools, $3 goes to the Memphis City Schools (due to the fact that the County system has three times as many students), the fact that Memphis teacher salaries are the highest in the state, and that Memphis spends more per student than any school system in Tennessee, Memphis school officials aren’t happy with the proposals:

“Every time the community, the powers-that-be, have a conversation about schools, I feel like Memphis city schools comes second,” Memphis school board member Wanda Halbert said. “That’s starting to weigh heavy on me.”

I think what would weigh heavy on me is spending that much money to produce the worst results in the state. I know that Memphis has a higher density of students that are more difficult — more expensive — to educate, but sooner or later, someone’s going to have to come up with a plan that correlates dollars with results.

That doesn’t mean that they have to produce the greatest number of National Merit Finalists, but there has to be a workable plan for improvement. Perhaps a good start would be to require that teachers show positive value-added scores for any pay increase (including cost-of-living); step increases should require documentation of extraordinary gains — perhaps measured by a combination of value-added test scores and other means.

Just paying the same teachers more — more than any others in the state — clearly isn’t getting the job done.

Elected Superintendents

One of the concerns going into this legislative session was another concerted push to allow for elected school Superintendents, rather than appointed Directors of Schools as is currently mandated. On Tuesday, the elected superintendents bill — HB3374 (Winningham) — was “taken off notice,” meaning it’s not scheduled for a vote.

It was not withdrawn, so it could come back, but the companion (SB2970, Burks) hasn’t been scheduled for a committee hearing yet either, and the session is moving toward closure.

The folks who support elected superintendents seek greater accountability to the public — so that he or she can be replaced at the will of the electorate. This group likely includes a fair number of county commissioners and county mayors, who would like for someone else to share the blame for tax increases needed to fund education.

The merits of an appointed Director of Schools are several. First, it facilitates a good working relationship between the elected school board (that sets policy and approves budgets), and the Director (who implements the Board’s policy and constructs the budget, which may be modified by the Board before approval). Secondly, it enables the school board to select a Director based upon the qualifications, experience, and skills needed for the job, not personal charisma and name recognition.

Further, it greatly broadens the pool of available talent. It’s not uncommon for school systems to search nationwide for the right candidate; depending on the size of the community, there may be few if any local residents who would truly meet the needs of the school system. Fewer still might be interested in having to run for office.

Lastly, it keeps politics out of the inner workings of schools — promoting a system based upon professionalism rather than political alliance.

While there are merits on both sides of the argument, the current system of appointing Directors of Schools is far better than the alternative. For a more detailed analysis, see the Tennessee School Boards Association’s position paper on this issue.

School Finance: another option

One of the drivers behind the move to a system-level fiscal capacity formula for determining levels of state education funding is the phenomenon of shared vs. unshared revenue. In short, counties must share all locally-derived education funds between all school systems in the county, where cities with municipal school systems may augment that funding from additional property or sales taxes, without sharing with the county.

Of course, this means that city residents are paying higher taxes in order to support funding their schools better; it also means that counties have no way to close the gap in per-pupil spending, since any increase on behalf of the county generates a proportional increase to any municipal system within the county as well.

SB888/HB1263 (McNally/Winningham) would provide a remedy to that problem, but one that is completely at the county commission’s discretion, by enabling counties to increase property taxes in areas outside municipal school districts, with the proceeds going only to the county school system. In short, it would give counties a source of unshared revenue just like cities have, enabling them to narrow or close the gap in local per-pupil funding.

Passage of this legislation would remove the purported justification for the mistreatment of municipal school systems in TACIR’s proposed system-level fiscal capacity formula, where higher taxes paid for education by city residents are counted as a measure of wealth (reducing state funding) rather than effort (which should increase state funding, but does not).

It would not fix the core problem, which is the State’s chronic underfunding of education generally. It would, however, provide local governments with a way to address the problem of disparity between city and county school funding at the local level. It would also cause TACIR to re-evaluate the formula for determining fiscal capacity, and eliminate the factors that penalize cities for doing what they should be doing — and what the State should encourage rather than punish.

It survived the Senate committee process last year, but never made it to a vote in the full Senate (although it’s still active, being the second year of a two-year session); this year, the House companion has been deferred twice in the State & Local Government Committee, now scheduled for a committee vote on April 4. Stay tuned.

Since it’s entirely permissive rather than mandatory, there’s no reason to oppose it.

Special School Districts

Tennessee has a number of “special school districts,” which differ from any other school district only in that the tax rate for education operations is set by the Legislature, by private act, according to the school board’s request. The result is that the county commission (or other local government) doesn’t have control of school funding; the other side of the coin is that school board members may incur greater blame for raising taxes (albeit indirectly).

For some years now, no new special school districts have been allowed to form. Legislation was introduced last year (HB1982/SB2062) that would allow existing school districts to convert to a special school district.

In counties that have been starved for funding by their county commissions — given only the amount required by law, which is not less than the year before — this bill would give relief and enable the school boards to make necessary budget improvements.

I wouldn’t advocate that Oak Ridge do so, but we have a much better working relationship with our City Council than most. Still, it could help many struggling school systems.

Although it passed the full Senate on May 11 of last year, it was amended as follows:

… any LEA in a county containing more than one (1) LEA with a total average daily membership (ADM) combined population that exceeds one hundred thousand (100,000), may convert to a special school district.

The only county in Tennessee with more than 100,000 students (average daily membership) is Shelby County. And they just happen to have two LEA’s (local education authorities, or school systems). Memphis City is already a special school district, so this bill was amended to apply only to Shelby County Schools. Who, incidentally, are not among the chronically underfunded.

The House version has not yet been amended, and is scheduled for subcommittee hearing tomorrow. I hope that they decline to amend it, and that the amendment can be dropped in conference committee.

I’ve long despised our Legislature’s practice of crafting generalized legislation then amending it to fit only a few; it’s always done is such a way that one has to look up population data to figure out who gets the benefit or the shaft. This case exemplifies the reason for my distrust.

BEP Resolutions

Opposition from local school boards to a proposed change in the BEP fiscal capacity model is growing, with a number of boards passing resolutions to that effect:

Maryville Daily Times, 3/10/2006:

The board passed a resolution that opposes a plan to change the basic education program funding formula that determines how much the state gives each local school system.

Dalton said the Tennessee Advisory Commission on Intergovernmental Relations (TACIR) developed a model using 95 counties rather than the 136 school systems as a means for funding distribution.

The redistribution would cause the Maryville school system to lose $3.3 million annually, he said. The Association for Independent and Municipal School Systems is against the proposed changes, Dalton said.

The reason for the formula change is to bring equity to the poorer areas of the state and provide them with more money.

However, Dalton said he has studied the formula and that 14 out of the 15 richest counties would receive more money, and 14 out of the 15 poorest counties would lose money.

“We think there’s some pretty good reasons for opposing it,” Dalton said.

Oak Ridge, Cleveland, Kingsport and others have passed similar resolutions in recent weeks.