Haslam To Fully Fund BEP

During the State of the State address on Monday, Governor Haslam announced that he is fully funding the Basic Education Program (BEP). Here’s what chalkbeat had to say:

In conjunction his seventh State of the State address, Haslam released a $37 billion proposed budget for 2017-18, including almost $230 million more for schools following a historic increase last year. Haslam said it’s one of the largest education funding increases in the state’s history and amounts to fully funding schools under the state’s funding formula known as the Basic Education Program.

Here’s what Haslam said during his address:

We’re fully funding the Basic Education Program including $22 million in additional dollars to help schools serve high need students and $15 million for career and technical education equipment. One hundred million dollars ($100 million) is included for teacher salaries, bringing the three year total since FY 16 to more than $300 million in new dollars for teacher salaries and more than $430 million in new dollars for salaries since 2011. Tennessee has shown it will not balance the budget on the backs of teachers and students. In fact, under the legislature and this administration, Tennessee has increased total K-12 spending by more than $1.3 billion.

It’s great the Governor Haslam is finally fully funding the BEP, which will allow for more resources going into the classrooms to help our students and teachers. For years, legislators, parents, bloggers, and local education officials have asked the Governor to fully fund the BEP. He finally listened.

Thanks for finally coming through, Governor Haslam.

Where do the funds go?

  • $100 million more for teacher salaries
  • $22 million more for English Language Learners
  • $15 million more for career technical education
  • $4.5 million more for the Read to be Ready initiative
  • $6 million (one time) for charter school facilities

I know many teachers will be extremely happy when they read the news. I know I am.  Now that it is fully funded, it’s time to make sure it’s fair.

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


 

Sargent Proposes BEP Changes

State Representative and House Finance Chair Charles Sargent will change how the state divvies up the school funding formula, known as the BEP.

Franklin Home Page reports:

In his first bill, Sargent said breaking down the figures and math with the BEP formula is simply complicated. But essentially, what he wants to accomplish is making sure districts receive their fair share of money.

New money would go into the BEP formula, and would provide a baseline for what the state has to provide per district. School districts should receive 80 percent of the average funding per pupil.

Essentially, no district would receive less than 80% of the state’s average per pupil expenditure.

The story also notes that Sargent wants the state to begin fully funding growth for districts:

Sargent said his second bill is a little bit less complex. Simply, he said he wanted the state to pay for growth entirely for districts. Right now, it only pays a partial percentage. And for districts that growing quickly like Williamson, it could be a game changer. The district grew last year by 1,800 students. In the next five years, that number will expand to 10,000 new students in WCS.

At the present time this last year, we funded anything over 1.4 percent growth,” Sargent said. “So if your district grew 2.4 percent, we paid for one percent of the at increase. But really, we need to fully fund all growth.”

With the state experiencing a significant budget surplus, it will be interesting to see if these proposed changes or other improvements to the BEP are adopted.

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


 

 

Why Doesn’t 4=4?

For the past two years, Gov. Haslam has proposed and the General Assembly has adopted education budgets that included four percent increases in state appropriations for the instructional salary component of the BEP. That means Tennessee teachers have received four percent raises in back-to-back years, right?

Wrong.

Instead, some teachers have seen no raise at all or very small salary increases while the average has hovered in the 2-2.5% range.

What’s going on?

I’ve attempted to explain this phenomenon here and here.

Those posts point to the State Board’s insistence on flexibility for local districts as a part of the equation. And, to be sure, the State Board’s refusal to adjust the state salary schedule by the same percentage as the salary appropriation does play a role.

But, there’s a bigger problem. The state is simply under-funding teaching positions through the BEP formula. I wrote about the Comptroller’s Office of Research and Education Accountability (OREA) study and pointed to a $400 million difference between the BEP-generated allocation of teaching positions and the actual number of teachers hired by local school systems. Since then, OREA has been informed by the Department of Education that some of those positions not funded by the state are entirely funded by federal dollars. The revised estimate, then, is that school districts in Tennessee are paying for between 12-18% of their teaching positions exclusively through local funds.

Yes, local districts are hiring between 12-18% more teachers than the state pays for through the BEP.  Imagine your school district with a teaching force reduced by an average of 15%. Could your schools function? Would students be well-served?

Since districts are responsible for 100% of the cost of any teacher hired beyond the BEP, they must make their available salary dollars stretch. So, when a district receives a 4% increase in salary funds, those funds are spread out among both the BEP-generated teachers and another 15% of teachers the district requires but which are not paid for at all by the state.

Stretching those dollars turns a 4% salary component increase into a raise of around 2% for most teachers. Some districts use 100% of their BEP salary allocation increase to hire new teachers, which means existing staff get no raise at all.

Fortunately, Governor Haslam just held budget hearings and Commissioner of Education Candice McQueen presented her proposed budget, including a recommended increase in the BEP. In fact, the issue of salary is discussed during the hearing when Finance Commissioner Larry Martin brings up BEP components. You can watch that discussion at around the 38 minute mark here. 

Unfortunately, McQueen is not proposing a solution to the BEP funding problem.

Grace Tatter reports:

Earlier in the day, Commissioner Candice McQueen asked for a 1.4 percent increase in education spending next school year, mostly to accommodate a projected 1.8 percent increase in student enrollment statewide, a driving component of the state’s school spending formula, called the Basic Education Program, or BEP.

In addition to wanting $58 million more for the BEP, McQueen asked for an extra $4.4 million for the state’s Read to Be Ready literacy initiative; $379,000 more on educator preparation programs; and $2 million to train teachers on new standards for science and the fine arts. She also is requesting $28.9 million for rural education programs.

It’s nice to see normal growth funded through the BEP, but districts will need a lot more than their share of $58 million to make up for the teacher funding shortfall under the current formula.

An increase of teaching positions of 15% through the BEP formula would cost $367 million. That’s without a salary increase. Of course, our state ended last year with a surplus of over $900 million and is starting this year with revenue coming in well over projections.

Here’s what Governor Haslam has to say about that:

Haslam said the increase would be substantial, although not as much as the state could afford with its considerable surplus. That’s because any pay hike must be sustainable in lean years, he said.

“We will continue to invest in education whenever we can, but we would like to be thoughtful,” Haslam told reporters after hearings on the budget for 2017-18.

If Haslam and the DOE were actually being thoughtful, they’d propose adjusting the BEP formula in a way that provides personnel funding that matches school system needs. Instead, teachers can likely expect that whatever raise is proposed and adopted will be cut in half as a result of the inadequacy of the BEP.

As for those “lean years,” we’re now in our third consecutive year of very significant surpluses. Investing 50% or so of last year’s surplus could beef up the BEP formula and still leave half a billion for other priorities or the rainy day fund.

The BEP is broken. A state experiencing significant budget surpluses should be able to fix it. What’s missing?

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


 

Whatever It Takes

This story on Community Schools offers an interesting look at what it takes to overcome the impact of poverty on education. The bottom line: It takes patience and creativity. It requires an investment of resources.

From the story:

Though the Washington Heights principal firmly believes in the idea that students can only learn if their basic needs outside the building are met — a key element of Mayor Bill de Blasio’s approach to struggling schools — he is also wary of the argument that infusing schools with social services will immediately lead to academic payoffs.

“Turning a kid’s lights back on on doesn’t make their test scores go up,” House said. “It’s the precondition for learning.”

House knows that firsthand. His community school, serving grades 6-12, was built a decade ago, but changes in key metrics like graduation rates and test scores haven’t come quickly. CHAH, which is 92 percent Hispanic and roughly 90 percent poor, has only recently come off the state’s “priority” list of low-performing schools.

The challenge, according to the principal, has not been finding agreement on the importance of addressing student needs:

I think most people probably don’t need to be convinced that access to health care or eyeglasses or mental health supports is a good thing for kids who might otherwise struggle to have access to those things—

I would argue with that though. I think people see that as a common-sense solution, [but] they’re not interested in paying for it.

I think House (the principal) has it right. People generally agree that kids need to have basic needs met as a precondition to learning. Unfortunately, the will do to whatever it takes is lacking.

Instead, we play at the margins. I appreciate the SCORE recommendations on teacher preparation. Improving the way we prepare teachers and providing them with early career support and mentoring is important for teachers and can improve outcomes for students.

I’ve long advocated for better pay for teachers. Not only do they deserve a professional salary, research indicates that better pay can improve outcomes for students.

Some in our state push vouchers while others suggest expanding the presence of charter schools will make a lasting impact.

Here’s the deal: None of these changes matter to a hungry kid who doesn’t have access to healthcare. The child who goes home to a house with no power or who attends seven schools in ten months because they are moved from one temporary housing solution to another or who has never seen a dentist — that child doesn’t care that teacher prep is a little better or that there’s a new way to evaluate teachers or that grading is now “standards-based.” Sure, these ideas may have merit and may provide some improvement to the school climate, but unless basic needs are met, learning will be difficult.

As House notes, there is often broad agreement on that point. What’s missing is the willingness to invest the money.

Here in Tennessee, we are not even adequately funding the number of teachers we need — we’re coming up $400 million short on that score. Instead of thinking of ways to provide critical social services to students, our General Assembly has eliminated the inheritance tax and the Hall Tax — foregoing hundreds of millions of dollars in revenue so that those who have can have more.

We currently have around $900 million in a budget surplus from the 2015-16 fiscal year and we’re $140 million above projections for this fiscal year. How much of that will be invested in schools? Of that new investment (if any), how much will go to provide the wrap-around services students require to ensure basic needs are met?

We understand the challenge. We know the need. Will we do whatever it takes?

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


 

Show Us the Money

WSMV reports state revenues came in at $108 million above projections in September:

Corporate franchise and exercise taxes came in at $76 million more than expectations in the month, which reflects economic activity in August. Sales taxes collections were $24 million higher than the amount budgeted for the month and reflect a 4.5 percent growth rate compared with the same year-ago period.

The surplus from September alone would be enough for the state to add 3500 teachers using the current funding formula. That’s 25% of the total needed to properly fund our state’s schools according to a recent report from the Comptroller’s office.

The report indicated:

The state is considerably underestimating the number of educators needed to run Tennessee schools according to its own requirements, says a state comptroller’s report released Wednesday.
And local governments are paying the difference. Statewide, districts employ about 12,700 more educators than the state funds, according to the comptroller’s Office of Research and Education Accountability, or OREA.

We are now in our third consecutive year of revenue growth well above projections. It’s time for the state to step up and invest in schools. Three more months with surpluses like September would provide enough revenue ($400 million) for the state to adequately fund teaching positions through the BEP. And don’t forget, we have more than $900 million in surplus funds from the budget year that ended on June 30th.

The money is there. Will it be invested in our schools?

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


 

 

That’ll Be $400 Million

The Comptroller’s Office of Research and Education Accountability is out with a new report that suggests Tennessee is underfunding its schools by at least $400 million. That’s because the BEP (the state’s funding formula for schools) fails to adequately fund education personnel.

Grace Tatter has more:

The state is considerably underestimating the number of educators needed to run Tennessee schools according to its own requirements, says a state comptroller’s report released Wednesday.
And local governments are paying the difference. Statewide, districts employ about 12,700 more educators than the state funds, according to the comptroller’s Office of Research and Education Accountability, or OREA.

Back in March, I wrote about this, and estimated the state was underfunding teachers by about 15%:

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.

Turns out, I underestimated the problem. The real number is around 22%, as Tatter notes:

The median percentage of additional teachers funded with local money was 22 percent. That translated to 686 more teachers in Knox County and 499 more in Rutherford County in 2014-15.

So, what does this mean? It means the state is underfunding local districts by about $394 million. That’s because the updated BEP formula funds teachers at $44,430 per unit. The state pays 70% of this cost.

That doesn’t include the cost of insurance for the additional 12,700 teachers. Nor does it include a salary adjustment to begin making up for the teacher wage gap. That cost is about $500 million.

So, to add proper state funding for needed teachers and provide adequate salaries, we’d need $894 million.

Then, there are the additional priorities identified by the BEP Review Committee. These priorities include providing teachers and schools the resources they need to adequately educate Tennessee’s students.

If your local property taxes have gone up recently to cover the cost of schools, you can blame the state for shorting our state’s school districts by nearly $900 million.

Incidentally, our state has a $925 million surplus — we could invest every dime of that into schools, meet the current need, and not raise state taxes one cent. Oh, and doing so would both improve public education and keep your local property taxes low.

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


 

 

 

Tennessee Ranks 33rd in Climate for Teachers

WalletHub is out with a ranking of Best and Worst states for teachers based on factors including salary and work environment. Here’s how they describe their methodology:

In order to identify the teacher-friendliest states in the U.S., WalletHub’s analysts compared the 50 states and the District of Columbia across two key dimensions, including “Job Opportunity & Competition” and “Academic & Work Environment.” Because competitive salaries and job security are integral to a well-balanced personal and professional life, we assigned a heavier weight to the first category.

Tennessee received an overall rating of 33, about in the middle for neighboring states. Our neighbors in Virginia and Kentucky come in at 6th and 15th, respectively, while Mississippi is ranked 47th.

See the full map:

 

Source: WalletHub

WalletHub notes:

Most educators don’t pursue their profession for the money. Despite their critical role in shaping young minds, teachers across the U.S. are shortchanged every year. In fact, education jobs are some of the lowest-paying occupations that require a bachelor’s degree, and their salaries consistently fail to keep up with inflation.

Tennessee should aspire to be among the best in our region, and we have the resources to make it happen — including a $925 million surplus for the recently-ended fiscal year. Using this surplus to close the teacher wage gap would improve our rankings and improve the quality of life for teachers. Additionally, the state would do well to heed the priorities outlined by the BEP Review Committee.

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


 

MNPS Funding Suit DENIED

Jason Gonzales reports:

A judge has denied a request from Metro Nashville Public Schools asking the courts to command Tennessee to fully provide education funding to local school districts.

The district’s petition, filed Sept. 1, contends that the state’s constitution requires the Tennessee General Assembly to fully fund education in the state under its Basic Education Program. Commonly known as the BEP, it’s the formula the state uses to calculate how much it costs to educate an individual student in Tennessee.

Apparently agreeing with the state’s attorneys who said:

In its response to Nashville’s petition, the state says Nashville should follow the other districts in asking the court to address their right to education funding, rather than for a direct order to pay more money. “(Nashville) seeks a writ of mandamus that would require the General Assembly to provide funding to ELL teachers and translators in the ratios provided in (Tennessee Code),” the response reads. “… However, (Nashville) is not entitled to that writ.”

Chancellor Ellen Hobbs Lyle’s order says:

While the state has been sued for proper education funding, those cases didn’t request the courts force the state to immediately appropriate funds, Lyle said in the court papers. Therefore, Lyle said there is no law to enforce.

“Such law must first be adjudicated before the writ can issue,” Lyle said.

In short, until a decision is rendered on the adequacy of the formula, the state can’t be compelled to fund the formula. Lawsuits filed by Shelby County and Hamilton County both claim the state’s funding formula is inadequate and seek a judgment based on that claim. Those cases are still moving forward.

More on School Funding:

Haslam on Tennessee School Funding History

Just Kidding

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


 

 

Haslam: Haters Gonna Hate

Governor Bill Haslam this week lamented school funding lawsuits while also admitting that Tennessee has a history of under-funding schools.

From the Tennessean:

“Now if you’re an educator saying, ‘Well, you’re not putting enough money in’ … you’re right, as a state we historically have not put enough money — but we’re changing that,” Haslam said.

When asked about pending lawsuits claiming the state is failing to live up to its responsibility in terms of school funding, Haslam said:

Asked about the validity of the school funding suits as a result, Haslam said, “obviously anyone can sue over anything they want.”

“But it’s kind of strange when we’re making historic investments in K-12 education, it feels like it sends the wrong message to do that,” he said.

Haslam doesn’t seem to understand why supporters of public education may doubt his commitment. Here are three reasons:

1) Haslam promised in 2013 to make Tennessee the “fastest improving state in teacher salaries.” By April of the next year, the promise was gone. Additionally, the BEP Review Committee noted in its 2015 report that weighted average salaries in 2015 were lower than in 2013 as a result of the Haslam-Huffman elimination of the state minimum salary schedule. At the same time, the gap in pay among the highest-paying and lowest-paying districts in the state remains at an unacceptable 40%. Meanwhile, Tennessee suffers from one of the largest teacher wage gaps — that is, the gap between salaries paid to teachers and salaries paid to professionals with similar educational preparation.

2) In response to a lawsuit from Metro Nashville Public Schools, the state’s attorneys have said the state is not bound to follow the school funding formula Governor Haslam proposed and the General Assembly adopted. Grace Tatter reported the state’s response:

Attorneys for the state say Tennessee isn’t obligated to follow through with its own spending plan — and that Nashville doesn’t have the grounds to seek the order in the first place.

3) The state has a $925 million surplus as of the close of the 2015-16 fiscal year. That’s enough money to fully close the teacher wage gap and still leave more than $400 million for funding other important state projects. A more conservative approach would at the least meet the state’s funding obligations under the revised BEP formula, as Nashville is demanding in its lawsuit. From there, the state could phase-in further investment and do so without increasing taxes one cent. The current surplus comes after a year in which the state’s surplus topped $1 billion. During that budget year, Haslam and the General Assembly failed to adopt a salary proposal that would have provided teachers and state employees raises if revenues exceeded projections. They did, of course.

So, while Haslam is saying the right things and while there has been some investment in schools in recent years, it’s not hard to guess why school districts are filing lawsuits to get the money they need. Bill Haslam is right. Tennessee has historically under-funded schools. But he’s leaving out an important point. The only thing that seems to get the attention of the state-level policymakers — and get money into schools — is a court order.

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


 

Just Kidding

The Tennessee General Assembly this year approved changes to the state’s school funding formula (the BEP) and at the same time, refused to appropriate sufficient funds to pay for the changes.

As a result of this refusal, MNPS is suing the state and demanding full funding of the formula.

The state’s response is pretty remarkable. State lawyers maintain that even though new funding ratios are now state law, the state doesn’t have to follow this law.

Grace Tatter reports:

Metro Nashville Public Schools, which serves about a third of the state’s ELL population, is seeking a court order demanding that the state provide the district with funds promised under its recently revised funding formula known as the Basic Education Program, or BEP.

State lawmakers voted this year to increase ELL funding based on a 1:20 student-teacher ratio instead of the previous 1:30 ration, but only provided Nashville with money for a 1:25 ratio. That’s about $4 million short of what was promised this school year, say Nashville school leaders.

Attorneys for the state say Tennessee isn’t obligated to follow through with its own spending plan — and that Nashville doesn’t have the grounds to seek the order in the first place.

The state doesn’t have to follow through with its own spending plan? Then why even have a spending plan? The state adopted a new funding formula and put new funding ratios into Tennessee Code. But now the state is saying they don’t actually have to follow the laws they passed.

Perhaps what’s most frustrating about this entire situation is that Tennessee has a $925 million budget surplus this year. That’s following a $1 billion surplus last year.

Yes, we have the money to fully fund the formula. Instead, lawyers are now arguing that policymakers are not obligated to follow a formula they proposed and adopted. That’s a pretty strange defense.

The legislature could have phased-in the ratios. Or adopted different, more “affordable” ratios. But they didn’t. Now, the state doesn’t want to be held accountable for meeting the ratios Governor Haslam suggested and the General Assembly adopted. What other laws does the state view as mere suggestions?

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