The Biggest Losers

Grace Tatter over at Chalkbeat has a breakdown of Governor Haslam’s BEP changes. While this year’s budget includes an influx of dollars, it also freezes BEP 2.0.

Tatter explains:

Though the governor’s plan nixes BEP 2.0, it permanently increases the state’s spending on English language learners (funding ELL teachers at a 1:20 student ratio and translators at a 1:200 student ratio), and special education students, technology and teacher pay, especially when it comes to teachers insurance. For years, the state only paid for teachers to have 10 months of health insurance. Last year, the General Assembly mandated that the state provide for 11 months of insurance. Haslam’s proposal this year finally gives teachers’ year-round insurance.

It’s important to note here that districts are already paying for year-round insurance for teachers, now they will receive some funding for it. The state funds teacher insurance at 45% of the projected cost for a district’s BEP-generated teaching positions. Until last year, it funded 45% of this cost for only 10 months, now it will shift to 12 months. It’s also worth noting that every single district in the state hires teachers beyond the BEP-generated number. Typically, around 12-15% more than what the BEP formula generates. Districts cover the full cost of salary and insurance for all teachers hired beyond the BEP number.

If districts only hired the BEP number of teachers, they could reduce local costs, but they’d also likely have some pretty unhappy parents on their hands. So, yes, the Governor’s proposed changes do direct additional funds to districts. But the changes do not address the underlying problem with the BEP. Doing so would cost another $250 to $300 million. That would be the cost of adjusting the ratios by 10-15% for teachers. That’s not to mention nurses, counselors, and other positions. And it doesn’t include capital funding.

The BEP Review Committee has been highlighting these deficiencies for years to no avail.

Additionally, Tatter mentions:

Another carryover from BEP 2.0 is the eventual elimination of a “cost differential factor,” known as CDF, that 16 districts in five counties receive to address a higher cost of living. Reducing the CDF would cut state spending by about $34.7 million. Almost half of that money would have gone to Shelby County Schools and the municipal districts in Shelby County. Other counties that would be impacted are Davidson, Anderson, Williamson and Sullivan.

While BEP 2.0 envisioned elimination of the CDF, it also envisioned the state covering 75% of teacher salaries for BEP-generated teachers. The Haslam changes makes the current 70% permanent.

Here are the districts losing money under the CDF elimination. The CDF is cut in half for the upcoming year and then completely eliminated in 2017-18.

Shelby
             30,873,136
Davidson
             17,570,727
Williamson
             11,073,924
Bartlett
                2,111,966
Collierville
                2,007,525
Germantown
                1,411,972
Franklin SSD
                1,260,978
Arlington
                1,169,503
Millington
                   672,030
Anderson
                   473,867
Oak Ridge
                   320,368
Lakeland
                   243,331
Sullivan
                      78,161
Clinton City
                      72,903
Kingsport
                      54,638
Bristol City
                      30,682
Total
69,425,713

It’s not clear whether these changes will impact the current lawsuits regarding funding adequacy. And the additional funds still don’t address the unfunded RTI mandate.

The ultimate impact of the changes will take a few years to determine. However, without significant structural changes, it is difficult to see this “new BEP” adequately meeting the needs of Tennessee’s schools.

More on the BEP:

Bill Dunn Wrong

They Noticed

Clay County and the Broken BEP

Why is TN 40th?

About BEP 2.0

For more on education politics and policy in Tennessee, follow @TNEdReport

2 thoughts on “The Biggest Losers

  1. Pingback: Toward a New BEP | Spears Strategy

  2. Pingback: Tennessee Education Report | That’ll Be $400 Million

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