Category Archives: BEP

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Underwhelming

Gov. Bill Lee delivered his State of the State address tonight and surprising exactly no one, he failed to make bold new investments in public education in spite of a record surplus in excess of $3 billion.

Instead, Lee proposed continuing to “fully fund” the wholly inadequate BEP formula to the tune of an additional $71 million and add $120 million to the teacher compensation component of the BEP. That’s essentially a 4% increase in the BEP allocation NOT a 4% raise in actual teacher compensation.

To be clear, the state needs $1.7 billion to adequately fund the BEP and Lee is proposing adding $71 million. If you add the teacher compensation element to this, you get $191 million. Or, roughly 10 percent of what is actually needed.

Here’s what Tennessee Education Association President Beth Brown had to say regarding Lee’s proposal:

Gov. Lee’s proposed increases for public education is not enough to meet current needs and falls far short of what was possible with record state revenue surpluses and collections. Tennessee ranks 46th in the nation on funding per pupil, only ahead of Mississippi and well behind Alabama, Arkansas, and every other southern state. Nothing the governor outlined in his budget changes this intolerable fact. 

Long before the pandemic hit our state, our public schools were already suffering under a plague of chronic underfunding. It is irresponsible and harmful to Tennessee children for Gov. Lee to continue this pattern of insufficient state investment in our schools, especially at a time when Tennessee has the largest revenue surpluses in state history. We can and must do better for our students.     

TEA understands the budget as outlined may not be the same at final passage. As record surpluses continue, TEA will work to see the current budget for K-12 increased.

A significant increase in public education funding could address many challenges plaguing our schools, including not having enough fulltime nurses and counselors, unstaffed libraries with outdated resources, inequities and gaps in technology, and a diminishing talent pool of qualified educators due to low salaries and long hours.  

The Lee administration has an extra $3 billion to budget. There has never been a better time to make the necessary investment for Tennessee students, educators and schools.

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Do We Really Have to Do This?

I mean, really? The Tennessee House Republican Caucus sent out a tweet today bragging about the amount of money the state has invested in teacher pay over the past decade.

Here it is:

I’m not even sure where to start. Well, actually, I am.

  1. $616.5 million sounds great, and it’s neat to aggregate data over a decade, but that BIG number averages out to about $62 million per year. That’s about a 2% increase in the BEP salary allocation (not actual money in paychecks) each year. Calm down a little, already.
  2. Did I mention that $616.5 million might sound great? So, the TN House GOP is all excited about spending $616 million plus over TEN years, while the state is sitting on a $3.1 billion surplus this year alone! That means we could spend $616 million in teacher salaries THIS YEAR and still have more than $2.4 billion LEFT to spend. Read that again. Republicans are bragging about taking an entire decade to allocate in total what is available THIS year and could be funded while still leaving $2.4 billion for other priorities.
  3. A bipartisan group of policymakers reports that we need $1.7 billion in a SINGLE year in order to adequately fund the BEP. That’s because the BEP badly underestimates the number of teachers actually needed to staff schools. Of course, the BEP also fails to take into account proper ratios for school nurses or school counselors. The BEP is pretty much broken, and has been for some time.
  4. It was Republican Gov. Bill Haslam who stopped the BEP 2.0 formula that was an attempt to correct and improve the BEP allocation.
  5. Remember that time when Gov. Haslam got all excited about our NAEP scores and promised a big raise to teachers and then cancelled the raise? Remember how after he cancelled the raise, revenue numbers came in at a level that meant the raise really could have been funded? Good times.
  6. Oh, yeah. School districts fund significantly more teachers than the BEP allocates. Yes, this has been a known problem for some time. Yes, the GOP has been running most of state government for over a decade. No, they haven’t done anything to fix it.
  7. There was also that time when the Haslam Department of Education called on the State Board of Education to give local districts flexibility with BEP salary money. Essentially, this created a situation where the 4% BEP salary allocation increase became a 2% (or less) raise.
  8. Remember the time when Gov. Bill Lee gave a big increase in state funding to charter schools and a tiny raise to teachers? Wonder if teachers remember that? I bet that makes them feel really appreciated.
  9. Remember the year when Gov. Lee became the second governor in a row named Bill to promise teachers a big raise and then cancel it when things got tough? Because, yeah, that was 2020. How’d that tough budget Lee was worried about turn out? Oh, right, that’s the one with the $3.1 billion surplus.
  10. Finally, in the recently concluded special session, Gov. Lee proposed and his legislative leadership secured passage of legislation giving teachers a 10 cents on the dollar COVID raise. That’s right, in a year when there’s plenty of cash and teachers are working more and harder than ever, Gov. Lee is placing the value of teachers at 10 cents on the dollar.
  11. Oh, and yes, Tennessee consistently receives a grade of “F” in both school funding and school funding effort from national groups who analyze state level investment in schools.

So, try again TN House GOP tweeter. Maybe next time, do some math and take a look at the archives.

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Money Storm

It’s raining money in Tennessee as recently-released projections suggest state policymakers could have as much as $3.1 billion EXTRA to allocate when they return for the regular legislative session next week.

This is, of course, a very good position. However, it’s not at all clear the state will allocate those resources into meaningful investments that improve the quality of life in Tennessee.

Take the action on teacher compensation during the special session as an example. Despite early reports that revenue would be higher than anticipated, Gov. Bill Lee’s teacher pay adjustment amounted to roughly 10 cents on the dollar compared to the extra work teachers have been doing during the pandemic. There was little meaningful investment in public schools at all, really.

In case you’re curious about how we got to a place where we have $3.1 billion extra to spend, the Sycamore Institute breaks it down.

In late March 2020, consumer spending in Tennessee dropped 27% below January levels – compared to 32% nationally. Soon after, the state received billions in federal aid designed to provide economic relief to citizens, businesses, and health care providers. After federal stimulus payments and enhanced unemployment benefits began in mid-April, Tennessee’s consumer spending rebounded close to pre-pandemic levels, while spending nationwide remained down by about 16%. (1) (2) Meanwhile, prior changes to state law took effect in July 2020 that led the state to collect sales tax on more internet purchases.

Here’s the breakdown of the extra cash:

Compared to the current budget, the governor and state lawmakers may have about $3.1 billion in additional General Fund revenue† to allocate this session (Figure 3). Based on the upper end of the annual Funding Board ranges, this includes:

$476 million (non-recurring) from the FY 2020 surplus (8)

$1.1 billion (non-recurring) from projected FY 2021 collections above official budgeted estimates (4)

$1.5 billion (recurring) from the increased FY 2021 base plus projected FY 2022 growth (4)

It’s worth noting here that TACIR – a bipartisan group of policymakers that studies and reports on government activity in the state – reports that Tennessee needs $1.7 billion to adequately fund the BEP.

So, good news! We can afford to make a significant investment that closes this funding gap. I look forward to Gov. Bill Lee’s State of the State next week where he announces that based on these new numbers, he’s making a record-setting investment in public schools and plans to do so throughout the remainder of his term.

But, who am I kidding? Gov. Lee isn’t going to do that. Heck, Lt. Gov. McNally has already talked about finding new ways to offer more tax cuts rather than making new investments.

Tennessee has tried a lot of experiments when it comes to our public schools. One thing we haven’t tried, though, is really investing in them.

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The Biggest Factor

State Rep. Bruce Griffey lists some states that outperform Tennessee in terms of academic achievement and then suggests “the biggest factor” is that those states pay their teachers a whole lot more.

He’s not wrong. Teacher pay in our state lags behind the rest of the nation. We also don’t invest in our schools and we don’t use available resources to improve our investment.

What’s wrong, though, is Griffey’s solution. He’s proposing some bizarre tax on money sent outside the country. Here’s the thing: We can fund a significant increase (around 10%) in teacher pay and still have a budget surplus. So far this year, our state is nearly $715 million ahead of projections.

The TEA estimates that teachers have worked an average of 13 additional hours each week this year. That amounts to at least $5700 in additional compensation. We could give every teacher a $5700 raise with $399 million – leaving $316 million and 7 more months of the fiscal year for additional collections.

In short, we have the money. Our policymakers should choose to invest it in teachers.

Here’s Griffey making the case that we need more investment in teacher pay:

https://twitter.com/TheTNHoller/status/1352277936787873793?s=20
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Take the Money and Run

If school districts don’t do what House Majority Leader William Lamberth wants, he’s going to take their money and run. Seriously. It’s actually pretty much the text of HB7021.

As introduced, the bill says that if districts fail to provide at least 70 days of in-person instruction for students in grades K-8 in the 2020-21 academic year and 180 days in the 2021-22 academic year, the Commissioner of Education may withhold all or a part of that district’s BEP funds.

I mean, I wrote a few days ago about carrots and sticks, but this is taking it a bit far.

It’s not clear to me what Lamberth hopes to accomplish by this other than forcing districts to make a decision to return to in-person learning at a time when COVID is still surging in our state.

Here’s the deal: Districts can’t take the risk they’d lose any BEP money. In fact, the BEP is inadequate (by $1.7 billion) as it is. So, it’s not like there’s tons of extra cash sitting around and districts can just ignore this ridiculous request.

While most people agree that in-person learning is the best possible climate for students, especially in grades K-8, not dying or carrying COVID home to parents is also a worthy outcome.

The bill appears designed to force districts like Memphis and Nashville, both of which have been and are still completely virtual in all grades, to return to in-person learning. In other words, Lamberth wants to overturn the will of the district leaders and school boards in these two cities (and others that have made similar moves).

It’s interesting that this bill comes even as Gov. Lee revealed his not so special legislative session legislative package last week. That package of bills includes a number of unfunded mandates. So, Lamberth is going to take money from districts that put student safety first and Lee is going to hit those same districts with a host of unfunded mandates. Makes tons of sense!

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A Word on the Special Session

Gov. Bill Lee’s “Not So Special Session” on education starts tomorrow at the Tennessee General Assembly. Former Nashville School Board member Amy Frogge offers some insight into what to expect this week.

Here are her thoughts:

The Governor has called a special legislative session this week to address three administration bills. Heads up to educators, parents and friends- we need your help to reach out to legislators who will be voting on these bills!

1. Senate Bill 7001: This testing waiver/hold harmless bill would require school districts to test 80% of students in-person (with pen and paper) in exchange for exemption from the A-F district grading system, placing districts into the Achievement School District, and placing schools on the state priority list (bottom 5%). This bill would require districts to return to in-person instruction. It is unclear how this bill will effect teacher evaluations. The question to ask here is why we are even testing at all this year, during a pandemic and so much chaos. (Hint: follow the money.)

2. Senate Bill 7002 addresses “learning loss” during the pandemic. (This, by the way, is a political- not an education- term.) It would require districts to create in-person, summer mini-camps to help children who are struggling this year. While these camps could be helpful to students, the state is creating another unfunded mandate, because only $67 million will be allotted statewide for the initiative, not nearly enough for implementation. The administration also envisions paying for the camps with stockpiled Temporary Assistance for Needy Families funds, which is likely illegal. BUT here’s the biggest concern about the “learning loss” bill: It will require districts to hold back third graders who are not deemed “proficient” in standardized testing. (Proficiency rates can be manipulated by the state through cut scores.) If you google the term “Mississippi miracle,” you will find that Mississippi used this very same trick to create the appearance of a sudden increase on NAEP test scores. Holding back low-performing third graders creates the illusion of huge one-time testing gains, and implementation of the bill would take place just in time for the 2023 NAEP tests. This is not about best serving the children of Tennessee; it’s about gaming the system. Furthermore, the costs for holding back large numbers of third graders, as mandated by this bill, would be astronomical.

3. Senate Bill 7003 would implement a phonics-based literacy program that proponents claim helped Mississippi’s test scores. In reality, holding back low-performing students caused the increase in scores, as I’ve explained above. Aside from the ruse to game NAEP scores, this bill is problematic, just like the “science of reading” literacy bill that Commissioner Schwinn pushed last year. It opens the door to more school privatization. Schwinn, a graduate of the Broad Academy, has been pushing preferred vendors and no-bid contracts (just like our former superintendent). Reducing the complex art of teaching reading to a marketable, scripted phonics curriculum allows school districts to hire cheaper, inexperienced teachers and allows for vendors to make a lot of money by control the curriculum. District should be embracing balanced literacy instead, of which phonics is just one component.

While Tennessee continues to push the narrative that schools and teachers are “failing” in order to open the door to more and more private profit, we should be instead investing in our students, schools and teachers. The state has long failed to properly fund Tennessee’s schools. This year, there is a surplus of $369 million in our rainy day fund, and the state is about to put another $250 million into that fund. We have more than enough to pay our teachers reasonable salaries and to truly address student needs through more social workers, school nurses, guidance counselors and wrap-around services.

The Governor is also expected to announce a 2% statewide teacher raise tomorrow, but beware of the spin on this promise as well. Already, the state is shorting school districts by not paying enough through BEP funds to fully cover teacher salaries. The BEP funds approximately 66,000 teachers, but according to the state’s own report, there are approximately 77,000 teachers in Tennessee. Local districts must make up for this funding shortfall. The 2%, $43 million teacher raise will only be allotted for 66,000 teachers- not all of the teachers in Tennessee, and it will be paid for through non-recurring funds, which means that local districts will cover the difference in future years. Finally, this raise amounts to $10 per week per teacher- 10 cents on the dollar– an insult to teachers. Please reach out to your representatives to share your concerns about these bills. We should particularly focus on those legislators listed in the comments below who are serving on the education committees. Although this is a quick special session, legislators are not expected to vote on these bills right away due to the MLK holiday today. You have time!

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Another F

The Education Law Center recently published its annual analysis of school funding in the states. Once again, Tennessee received a grade of “F” in both funding level and funding effort. I could actually write this exact same story every single year. Tennessee doesn’t adequately fund our schools. The bipartisan group TACIR – Tennessee Advisory Commission on Intergovernmental Relations – says the state is $1.7 billion behind where we need to be in funding for schools.

We also fail at funding effort – that is, we have significant untapped revenue and high dollar amounts held in reserve while our schools lack the critical resources they need to be successful.

Meanwhile, so-called education advocates like SCORE run around touting the latest new thing (this year, it’s a literacy scheme) instead of using their considerable clout and fundraising ability to push for meaningful investment in schools. Of course, the leadership over at SCORE is not hurting for cash based on their salaries.

Here’s the Education Law Center’s state-by-state breakdown on school funding:

Here’s data on funding level:

Here’s what the ELC has to say about funding level:

A state’s funding level is measured by analyzing the combined state and local revenues provided through the state school finance formula, adjusted to account for regional variations in labor market costs.

A state’s funding level grade is determined by ranking its position relative to other states; the grade does not measure whether a state meets any particular threshold of funding level based on the actual cost of education resources necessary to achieve state or national academic standards

Here’s information on funding effort:

Here’s what ELC has to say about funding effort:

Depending on a state’s overall wealth, every tenth of a percent (0.1%) of state GDP invested in PK-12 public education can have a big impact. For example, that figure is $33 million in Vermont – the nation’s smallest economy – and up to $3 billion in California – the nation’s largest. Figure 3 juxtaposes a state’s relative effort (compared to the national average) with its per capita GDP to contextualize how the effort index interacts with the state’s relative wealth to produce high or low funding levels.

So, here’s the deal: Tennessee has the resources to make meaningful investments in our schools. Our leaders are choosing not to. Year after year after year. Policymakers run for office making all sorts of promises about investing in schools, and fail to deliver. Of course, in the case of Bill Lee, he promised to privatize our schools and he’s attempting at every turn to deliver on that promise.

Tennessee isn’t adequately funding schools, and despite political rhetoric to the contrary, our leaders aren’t trying. At all. Ever.

So, when your local representative or senator comes to an event and tells you they support your schools, you can tell them the truth. Their actions suggest otherwise.

The ELC Report Card tells the real story.

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Bill Lee’s Not So Special Session

So, Gov. Bill Lee has decided to call a special session of the Tennessee General Assembly to address education issues he’s largely ignored during his time as governor. While Lee has eagerly pursued a privatization agenda, he’s left teachers and public schools behind. Now, he wants to make it seem like he’s doing something. This is, after all, the same Governor who led Tennessee to the “best in the world” status in transmission rate of COVID-19.

Chalkbeat reports on the topics to be discussed during the session:

He’ll ask the legislature to address state testing challenges next spring during the pandemic, as well as funding for teacher pay and schools for the following academic year. Also on the agenda will be initiatives to address learning loss and a comprehensive literacy package to improve students’ reading proficiency.

Reading this is actually pretty amusing, considering the very problems or challenges Lee is seeking to address were created by a man named Bill Lee who happens to be the Governor. Maybe “Special Session Bill Lee” should go have a talk with “Regular Session Bill Lee” and see what they can work out?

Anyway, let’s look at those issues.

Testing

Bill Lee has consistently pushed the state’s failed testing agenda that means more profits for testing companies and less learning for kids:

Tennesseans for Stupid Testing
TEA Continues Push to #CancelTNReady

Funding and Teacher Pay

This is hilarious. Gov. Bill Lee, who cut a planned teacher pay raise just a few short months ago, now says we need funding for . . . teacher pay? Are you even kidding? Do you think teachers don’t have memories?

From 4 to 2 to 0

Oh, and remember his first proposed budget? The one that made it clear his priorities were with a privatization agenda and NOT with investing in teachers?

100% for Charters, 2.5% for Teachers

Then, there’s the overall issue of school funding. An independent review found that the state’s school funding formula needs at least $1.7 billion to adequately fund schools. Has Lee made any effort to meet this need? NO!

Comprehensive Review

Learning Loss and Literacy

You want to address learning loss and literacy? Fund our schools, pay our teachers, and invest in kids. Lee’s done none of those things and there’s exactly zero indication that he has a plan to change that.

Echo Chamber

Predictably, Lee’s allies chimed in right away applauding his poor excuse for effort as something other than sound and fury signifying nothing.

These two stooges eagerly support Lee and went along with his plans to cut investment in schools in June of this year. Now, they’re acting like Lee is some kind of hero for realizing there’s a crisis — a crisis of his own creation. It’s like a firefighter complimenting an arsonist for at least calling the fire department AFTER the house was almost absorbed in flames.

Forward

If we want to move our state forward in terms of public education, we will do the following:

  1. Cancel TNReady now and forever
  2. Invest in teacher pay – starting with at least a 25% raise to make up for years of inadequacy
  3. Add the $1.7 billion TACIR says our state needs to properly fund schools and distribute it according to a new BEP formula that builds on BEP 2.0.
Bargain Prices on Teachers in Tennessee

I’m going to go ahead and predict that Bill Lee and his cronies will do none of those things. Oh, and to no one’s surprise, Lee’s dark money pals over at Tennesseans for Student Success are already out with a statement congratulating Lee for his efforts.

This is kind of like a cow congratulating a chicken for realizing it was a bad idea to go to KFC.

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General Assembly Preview

Nashville education blogger TC Weber offers some insight into what the General Assembly may be considering around education policy in 2021.

Here’s some of what he has to say:

First up is addressing BEP funding for schools. State funding is typically contingent on attendance numbers. Due to the pandemic, school districts across the state are losing students. According to Chalkbeat, the statewide decline in student enrollment this fall would normally decrease the allocation by at least $320 million.

Recognizing, that if those lost students come back next year when the Coronavirus is more manageable, districts will be under economic hardship, Representative Cerpicky has introduced a school stabilization bill that would in essence freeze funding at current levels, providing relief to districts.

To his credit, Cerpicky understands that this is just a beginning and he would like the General Assembly to conduct a review of the current BEP formula. Most stakeholders recognize the shortcomings of the current model, which was adopted in 1992, and its failure to adjust for inflation, government mandates, a growing charter school sector, and expenses driven by changes in technology. There seems to be a growing willingness to redress it.

Cerpicky’s thinking is that if a bill keeping districts financially solvent for another year can be passed, it would create a window of opportunity to address the BEP. Legislators would have 14 to 15 months in which to address the BEP formula in Education Committee meetings. I can’t disagree with that thinking.

Legislators for the most part appear to understand the importance of freezing district funding and appear amendable to keeping funding frozen. Well, all except Chairman Sexton who thinks that only schools who have open school buildings deserve protection. Apparently, he is unaware of the level of work teachers are doing remotely to keep students engaged. Somebody needs to hand him a clue. Instead of criticizing Memphis for taking their savings and giving teachers a 1% raise, he should be praising them for recognizing the level of sacrifice being made by teachers and principals.

The funding picture needs to be clarified as soon as possible so that superintendents can begin accurately creating their budgets for the next school year.

Equally important is a decision on whether TNReady will be administered, or not, and if administered, what impact scores will have on schools, teachers, and students. Most recognize that the administration of testing at this juncture is an exercise in futility. But there is a contingency who believes that the tests should be administered though results should not be used for accountability. My argument is that if I hold a scrimmage game and I keep score, despite calling it practice, everybody knows who the winners and losers are.

Not testing this year will not permanently damage kids, in fact, it would provide opportunities for additional instructional time. It’s been floated out there that this year’s tests should be canceled and money instead is allocated to summer school. I don’t know if that’s feasible or not, but it makes a lot more sense.

Here are some notes on the historically underfunded BEP:

Severe Teacher and Staff Shortages
Comprehensive Review

Note here that TACIR – a state organization that analyzes state and local government – says the BEP is underfunded by $1.7 billion. Even with the COVID “savings,” it seems our schools need a drastic increase in investment.

Will the General Assembly get serious about actually coughing up that kind of cash? I seriously doubt it.

They should.

But, Gov. Lee has shown his true colors — he’s pushed a privatization agenda and he cancelled a planned teacher pay raise this past year. It’s not clear lawmakers have the courage or fortitude to challenge Lee when it comes to funding. Nor is it clear they will do what it takes to pump $1.7 billion into our schools.

We’re now on our second consecutive governor named Bill. Mr. Haslam revised the BEP in a way that virtually ensured we’d end up where we are now — with an inadequate funding mechanism for our state’s schools. Gov. Lee lacks the imagination to dream big for schools, instead preferring to pursue a privatization agenda that makes his friend Betsy DeVos proud.

The General Assembly “might” do something on school funding. Freezing the normal allocation to prevent significant funding loss as a result of COVID is a good start. But, there’s much more to be done. Lawmakers shouldn’t use the COVID situation as a scapegoat to allow them to get out of the much more challenging work of creating a long-term, sustainable BEP solution.

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Bill Frist and the BEP

At today’s SCORE conference on the state of education in Tennessee, former U.S. Senator Bill Frist, SCORE’s founder, suggested that based on SCORE’s bold plan, Tennessee could fulfill its pledge to families and students.

Here’s the tweet summarizing his closing remarks:

So, like every SCORE conference (they put these on every year), it all sounds great and generally means nothing.

SCORE, which stands for State Collaborative on Reforming Education, has been in existence since 2009.

Since that time, Tennessee has remained near the bottom in the country in investment in public education.

In fact, based on information from the Comptroller of the Treasury and the Tennessee Department of Education, Tennessee schools are underfunded to the tune of some $1.5 billion. This includes a $500 million shortfall in the funding of teaching positions across the state.

So, all that “bold visioning” over at SCORE hasn’t resulted in meaningful new investments in schools. But maybe, just maybe, SCORE’s policy pushes have nudged the state forward academically.

Nope.

In fact, after that one “fastest-improving” year, we’ve regressed to the mean:

If you analyze NAEP data, Tennessee has not experienced sustained improvements in 4th and 8th grade reading and math tests over the last 3 testing periods. In 2017, 33 percent of Tennessee 4th graders and 31 percent of 8th graders achieved NAEP proficiency in reading. In math, 36 percent of 4th graders and 30 percent of 8th graders achieved NAEP proficiency.

There’s also the declining ACT average:

Tennessee’s average ACT score declined slightly for a second straight year, while the number of students taking the college entrance exam also dropped, according to results released Friday.

Public school students in the Class of 2020 finished with an overall average of 19.9 on a scale of 36, down from 20 last year and 20.2 the year before.

So, SCORE keeps pushing a “bold” agenda while Tennessee’s schools lack funding and Tennessee students are not moving forward academically.

Meanwhile, the organization took in $5.6 million according to its 2018 IRS form 990. That was, admittedly, down from some $10 million in revenue the year before. Still, SCORE reported assets of $11.5 million.

In 2018, then-Chairman and CEO Jamie Woodson was paid $326,000 and President David Mansouri was paid $235,920. Three other employees were paid over $100,000. The group also spent $112,000 on “advocacy support” (lobbying) paid to a company out of North Carolina.

It’s interesting that the folks at SCORE, some of the highest-paid education “advocates” in the state, just aren’t getting the job done in terms of changing the narrative or moving funding into Tennessee schools. Still, year after year, foundations and donors pour cash into their coffers hoping for a different result. Or, maybe, hoping for the same result — more “feel good” conferences and no requests by the state that actual dollars be invested into our schools.

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