About Hillsdale

Gov. Bill Lee is proposing to hand over millions in Tennessee tax dollars to a private, Christian college in Michigan to run between 50-100 “charter schools” in the state.

Lee wants charter schools because they won’t need a voucher plan to be funded – they can just apply for charters (possibly directly from a state charter authorizer, bypassing local school boards) – and then receive public money.

Sure, handing over public money to a private entity to run schools is problematic. But what is Hillsdale all about? I mean, if TN is going to go down this road, we should certainly understand more about the college that has been chosen by Lee to run schools.

Good news! Peter Greene digs into Hillsdale and offers a useful exploration of the history of Hillsdale and how it runs the schools it runs.

Here are some highlights:

[Hillsdale President Larry] Arnn has been a Trump supporter, and the college has fallen right into MAGAland as well. Or as Politico Magazine put it in 2018Trump University never died. It’s located in the middle of bucolic southern Michigan, halfway between Lansing and Fort Wayne, 100 miles and a world away from Detroit.

The college uses Trump mailing lists to raise money. They used to sponsor Rush Limbaugh’s show. They get grads placed on the staff of legislators such as Jim Jordan and Kevin McCarthy. In 2017, for some reason, Senator Pat Toomey created a little piece of tax reform that would have carved out a tax treat for Hillsdale alone.

If you want to see Hillsdale really letting its freak flag fly, scan through its newsletter Imprimiswith articles like “The Disaster at Our Southern Border” (VP Harris’s report is “bunk”), “The January 6 Insurrection Hoax” (Donald Trump was awesome and robbed and Jan 6 has been overhyped as part of a vast conspiracy), and an explanation of inflation that rests on Milton Friedman’s awesomeness. All of these, it should be noted, are versions of lectures delivered at the college. 

It should come as no surprise that Hillsdale is home to a lot of privatizing thought about education, like a 2018 piece by Professor Gary Wolfram explaining why schools should be run via the free market. And then-secretary Betsy DeVos made Hillsdale the site of one of her most explicit speeches arguing that schools should be taken back from the government and run by free-market Christianity.

This line from Politico may more clearly explain Lee’s enthusiasm for Hillsdale:

Trump University never died. It’s located in the middle of bucolic southern Michigan, halfway between Lansing and Fort Wayne, 100 miles and a world away from Detroit.

READ MORE from Greene on the Hillsdale experiment Bill Lee wants in Tennessee.

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Exceptionally Bad

Gov. Bill Lee made clear in his State of the State that he is a proponent of an alternative history known as “American exceptionalism.”

This theory is grounded in a sort of American evangelicalism – and certainly has strong ties to far-right Christian movements. To advance his “exceptionalism agenda” Lee has announced a partnership with conservative Hillsdale College – a private, Christian school in Michigan. Yes, Tennessee is such a great example of exceptionalism that we have to turn to a private college from Michigan to “properly” teach history.

Here’s a note on that from Lee’s speech:

Two years ago, I traveled to Hillsdale College to participate in a Presidents Day celebration and spend time with champions of American exceptionalism.

For decades, Hillsdale College has been the standard bearer in quality curriculum and the responsibility of preserving American liberty.

I believe their efforts are a good fit for Tennessee, and we are formalizing a partnership with Hillsdale to expand their approach to civics education and K-12 education.

WPLN reports that public education advocates are raising concerns about the transfer of Tennessee tax dollars to a private, religious institution:

Lee has made a deal with a conservative college to open about 50 charter schools in the state.

Lee has made a deal with Hillsdale College, a small Christian liberal arts school in Michigan, to bring their civic education and K-12 curriculum to Tennessee.

Beth Brown, the [Tennessee Education] association’s president, says there is no need to bring in outsiders to implement a new curriculum or to set aside $32 million for new charter schools, a key element in the proposal.

“The concern is that we’re taking taxpayer dollars and we’re going to take those taxpayer dollars away from our public schools and give them to private entities,” said Brown.

It’s noteworthy, too, that Lee cited Ronald Reagan in his address:

I recently watched President Reagan’s farewell address, made just before he left office in January of 1989.

As many other Presidents have done, his farewell address includes a warning to the American people.

He reminds us that what we want to have in this country is “informed patriotism.”

Lee claims that he has been inspired by Reagan’s words. This inspiration is ostensibly the impetus for the focus on an American exceptionalism curriculum from Hillsdale College.

Of course, Reagan is no stranger to efforts to dismantle public education and turn schools over to those on the extreme right of the political spectrum.

In fact, a June piece in the San Francisco Chronicle by education journalists Jennifer Berkshire and Jack Schneider point out that today’s privatization movement has roots in Reaganism:

This crusade against public higher education eerily presaged today’s school culture wars. Where Reagan made a target of ethnic studies and tried to keep Angela Davis, a member of the Communist Party, from teaching philosophy at UCLA, today’s bogeyman is critical race theory or CRT — a legal theory that has become a vague catchall for grievances of the sort that Reagan weaponized so effectively. To date, laws aimed at restricting how public school teachers talk about race and racism have been proposed in 22 states and signed into law in five.

Public schools, GOP leaders have argued, are teaching children to believe that the country is inherently bad. But just as Reagan used his anti-campus campaign to undermine support for public higher education, his disciples are motivated by a similar cause. For a Republican party that has grown increasingly hostile to public education, the K-12 culture war is also an opportunity to advance the cause of school privatization.

State legislators, meanwhile, have introduced a flurry of bills aimed at cutting funds from schools with curricula that the GOP deems unacceptable. In Michigan, a proposed measure would cut 5% of funding if school districts teach “anti-American” ideas about race in America, material from the 1619 Project, or critical race theory. In Tennessee, a new law empowers the state’s education chief to withhold funds from schools found to be teaching components of critical race theory.

The constant drumbeat that public schools are indoctrinating children, however, serves as a powerful nudge to parents to flee them. If their tax dollars are paying for something they’re opposed to, then maybe privatization isn’t such a terrible idea after all. This was Reagan’s move.

This, then, gets to the heart of Lee’s education “reform” agenda. He’s overhauling the school funding formula (BEP) to make it “student-centered.” While his voucher scheme languishes in the courts, Lee is taking the first steps to create a new funding formula that builds a bridge to vouchers. Don’t like all the “indoctrination” at your local school? Take that state money and hand it over to a Hillsdale charter school that proudly evangelizes about America’s “good old days.”

Here’s how he phrases it in the speech:

I’m proposing an innovative approach that sets aside dollars for each student, based on their individual needs, and these dollars will be used in whatever public school they attend.

Guess what? Hillsdale’s charter schools would be public schools under Tennessee law – Lee is proposing handing over state money to a private, religious college to run “public” schools.

Ronald Reagan would most certainly be very proud of the division and discord Lee is sowing in the name of turning public money over to private, right-wing Christian school operators.

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A Feature, Not a Bug

In his State of the State Address, Gov. Bill Lee had this to say about funds he’s dedicating to teacher compensation:

We should raise teacher pay this year by $125 million, which is a well-deserved increase into the teacher salary pool.

Historically, funds put in the salary pool don’t always make it to deserving teachers. When we say teachers are getting a raise, there should be no bureaucratic workaround to prevent that.

This statement implies that there is some sort of trickery going on at the local level to divert state dollars intended for teacher pay. It’s deflection and blame-shifting. The reality is that the state underfunds teaching positions. By a lot.

In fact, as Lee surely knows, the Tennessee Advisory Commission on Intergovernmental Relations (TACIR) issued a report suggesting the state underfunds schools by $1.7 billion.

That report noted:

 “In fiscal year 2018-19, the BEP funding formula generated a total of 62,888 licensed instructional positions, but school systems employed a total of 69,633 with state and local revenue.”

“Although the changes made in 1992 and since have resulted in substantial increases in funding to support the BEP, meeting local needs and the requirements imposed by the state and federal governments often requires more resources than the BEP funding formula alone provides. Consequently, state and local funding in fiscal year 2017-18 totaled $2.1 billion over and above what was required by the BEP formula, including a total of $1.7 billion in local revenue.”

In other words, Lee knows that adding $125 million to teacher compensation WITHOUT also increasing the total number of positions funded means that money won’t result in a meaningful raise for current teachers. Instead, districts will use the teacher compensation money to fund positions NOT contemplated by the current formula.

So, here’s the real question: Will Lee’s proposed new formula result in the addition of 7,000-10,000 MORE teachers?

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Is it Anything?

Last night, Gov. Bill Lee delivered his State of the State Address and revealed at least some details related to school funding formula reform. Of note is the promise to increase state investment in public schools by $1 billion effective in the 2024 fiscal year and contingent on a new funding formula. This year, teachers will see $125 million in new money for salaries, which equates to a roughly 5% pay raise – or, at least a 5% increase in what is provided to local government for teacher compensation. Effectively, this will result in a salary increase of 2-3%.

$1 billion in new money is long overdue. It’s also about half of what the state needs to adequately fund public schools. Depending on how it is distributed in any new formula, it could amount to little in terms of significant improvement. Then again, it very well could be the start of something positive. Those who watch Tennessee education policy over time (like me) are likely skeptical. As always, the devil is in the details.

In fact, Tennessee Education Association President Beth Brown issued a statement on the proposal:

“Any increase in K12 spending is a step in the right direction. TEA is eager to see more details on the $1 billion in new recurring spending on public education Gov. Lee announced in his State of the State address.  It is a needed and warranted increase, but we do not yet see that reflected in the budget document released today.

Our students and educators are struggling right now because of a lack of resources. State leaders must stop stuffing cash into mattresses while students go without materials and programs they need for a quality education and underpaid educators are asked to do the job of six people while also buying their own classroom supplies.  

It does not have to be this way and we are hopeful the governor’s remarks tonight indicate a shift from the chronic underfunding that has plagued public education in our state. Tennessee can afford a significant increase in recurring investment in our students, educators and public schools immediately, without raising taxes.” 

If the $1 billion does materialize, it should be noted that not only is it significantly less than what is needed, but also that our state has the funds ($3 billion+ surplus) to fully close the funding gap. That Lee is not proposing $2 billion in more in funding when that money is absolutely available may well indicate that our state will continue its historic pattern of underfunded public schools.

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Bill Lee’s Tax Increase

The Tennessee Public Education Coalition and Pastors for Tennessee’s Children have an OpEd out explaining how Gov. Bill Lee’s lack of action on school funding means a tax increase for Tennessee families.

In the piece, the two groups repeat a familiar refrain: Tennessee schools are underfunded by $1.7 billion. Then, they note what that means for Tennessee families and communities:

a Tennessee family of four, on average, pays over $1,000 a year in additional local taxes to offset the state’s ongoing underfunding of K-12 education

Even with those local funds, Tennessee spends $4,300 less per student than the national average.

Lee’s reliance on local property tax revenue to fund schools is not surprising given his 2018 campaign based on privatizing public education. What should have county commissions and school boards screaming, though, is that our state is sitting on a giant surplus.

The two groups also explain why the current formula comes up short:

For instance, the BEP does not provide enough to cover teacher pay. TACIR and the Comptroller have pointed out that the BEP does not fund the actual number of teachers required for state-mandated class sizes leaving approximately 11,000 Tennessee teachers to be covered exclusively by local taxpayers, with no state contribution.

In addition, the BEP Review Committee, which provides lawmakers with a list of funding deficiencies every year, reports that the 2021 average Tennessee teacher salary was $55,917, but the BEP funds only $48,330 per teacher, resulting in a $7,587 gap in state funding per teacher.

This means local taxpayers cover both the cost of an additional 11,000 teachers outside the BEP, and the $7,587 shortage in funding per teacher.

Tennessee is NOT investing in teachers – the essential component of public education. There are not enough teachers to meet local needs and the funds from the state fail to provide adequate salaries. This begins to explain the current teacher shortage crisis.

While districts and public education advocates continue to highlight the unfairness and inadequacy of the current system, Lee is busy giving huge raises to corrections officers – sure, that’s a pay raise that’s needed, but it leaves teachers behind.

The current state minimum salary schedule for teachers sets the minimum salary for a Tennessee teacher at $38,000.

A Tennessee teacher with a bachelor’s degree would need to work for 10 years in order to achieve a mandated minimum salary above $44,000.

Now, however, brand new correctional officers will earn more than teachers with 10 years of experience. Yes, corrections officers deserve a raise.

Your taxes are higher to pay for Bill Lee’s refusal to invest in schools. Schools can’t find or keep teachers because Bill Lee refuses to use a $3 billion+ budget surplus to invest in schools. Bill Lee’s campaign in 2018 promised privatization paid for by local taxes – on this, he’s delivered.

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Is Sexton Serious?

House Speaker Cameron Sexton offered some concerning commentary on school funding ahead of an expected announcement this month on Gov. Bill Lee’s proposed changes to the state’s school funding formula (BEP).

Meghan Mangrum highlighted the comments in an article published in the Citizen-Tribune out of Morristown:

It seems the Speaker is not all that familiar with how schools actually work. The suggestion he makes here is that teachers and schools lack the proper incentive system. That is, schools fail students because there’s no threat of losing money no matter the outcome. This reflects a fairly depressing view of humanity. Further, it suggests that Sexton believes that teachers are currently “holding back” simply because they don’t fear punishment.

If only a punishment-based incentive system were in force, Tennessee teachers in every school system would rapidly accelerate learning, Sexton seems to be saying.

This type of thinking is especially alarming as the state considers revamping the school funding formula. Gov. Lee has promised a “student-centered” approach but has also stopped short of calling for more overall spending.

Here’s an analogy that might help explain the flaw in Sexton’s approach. UT Football has experienced a bit of a resurgence in recent years, but most fans would admit the last decade has been pretty rough. Under Sexton’s approach, the right answer is to offer less resources to the football program and then that will motivate them to get better and thus “earn” better resources. Want 10+ wins each season? Deduct $100,000 from the coach’s pay for each win under 10. Then, when the team only wins 6 or 7 games, take some more cash away so that they’ll be fired up to get after it next season. Maybe if the defense has a really bad game, the next game they could play without helmets? Surely, the proper punishment-based incentive will yield the desired results.

Of course, some have speculated that the whole movement on the part of Lee to change the BEP is really about a backdoor path to school vouchers:

In any event, I’m sure teachers across the state are working hard and polishing off all that knowledge they’ve been holding back thanks to the threat of lost resources made by Sexton. Once the punishment-based BEP formula is in place, I’m sure only good things will happen. In fact, I bet such a system will cause a rapid influx of people into the teaching profession in Tennessee – if only policymakers in previous years had thought of such a plan, Tennessee would be at the top of the nation by now.

Here’s a piece on merit pay that addresses (to some degree) the type of incentive plan Sexton may be envisioning:

And, here’s a piece that makes the argument for an across-the-board increase in school funding:

Finally, a note on the importance of raising teacher pay – not simply as a means of addressing the teacher shortage but also as a key factor in improving student achievement:

When teachers get paid more, students do better. In one study, a 10% increase in teacher pay was estimated to produce a 5 to 10% increase in student performance. Teacher pay also has long-term benefits for students. A 10% increase in per-pupil spending for each of the 12 years of education results in students completing more education, having 7% higher wages, and having a reduced rate of adult poverty. These benefits are even greater for families who are in poverty.

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BEP Changes to be Announced in January

WPLN reports that Gov. Bill Lee’s administration will announce its proposed changes to the state’s school funding formula (BEP) in mid-January.

The Tennessee Department of Education plans to release details of its policy recommendations in mid-January.

Education Commissioner Penny Schwinn laid out the timetable in a meeting with legislators on Tuesday. She says the new approach will make it easier to see how much education costs for each student.

While there has been much discussion on changing the formula, there has (so far) been little mention among key education leaders about increasing the overall amount of money dedicated to schools.

This comes in spite of the state falling $1.7 billion short of adequately funding schools, according to a report by a bipartisan commission.

Meanwhile, some key education advocacy groups are calling on Gov. Lee to not only change the formula, but also to increase the overall amount of money invested in schools:

And, it’s worth noting that the state has billions in surplus dollars to spend on education:

While it’s not exactly clear what the new formula will look like, some are speculating it could be a pathway to vouchers:

One possible hint of where Lee is headed can be found in the recent SCORE for schools conference:

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Voucher Case Gets New Court Hearing

Chalkbeat reports that a case against Gov. Bill Lee’s school voucher scheme will receive another hearing before the Tennessee Supreme Court as that body attempts to assess the constitutionality of the program.

The Tennessee Supreme Court will rehear arguments in the case of educational savings accounts, also known as vouchers. The court’s announcement on Tuesday comes in the wake of the death of Justice Cornelia Clark who was on the bench in June to hear the arguments, but died of cancer in September before the court was able to issue a ruling.

In the brief order, court members said that “in light of the untimely death of Clark, this court has concluded that re-argument will aid the resolution of this appeal.”

At stake in the case is the future of school vouchers in Tennessee. Republican Gov. Bill Lee pushed the educational savings accounts, or school voucher law, in 2019, as a way for students in Nashville and Memphis to use public funds to pay for private education, supplies, and tutoring. The program was to begin with 5,000 students and grow to 15,000 by the fifth year, but the program never got off the ground as multiple courts blocked it.

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Priorities

Last week, Gov. Bill announced a 37% salary increase for new correctional officers hired by the Tennessee Department of Correction (TDOC). The move makes the starting salary for a Tennessee correctional officer $44,500.

This is a needed improvement to the salary of hard-working state employees with a difficult job.

In announcing the move, Lee said:

“As we face staffing shortages across the country, rewarding officers with competitive pay will ensure we recruit and retain the most highly qualified individuals in our workforce,” said Gov. Lee. “These Tennesseans play a crucial role in ensuring public safety and we remain committed to valuing their important work.”

What’s interesting about the move is that Tennessee is also facing a teacher shortage and yet there has been no serious discussion by Lee or other state education policy leaders on dramatically increasing teacher pay.

The current state minimum salary schedule for teachers sets the minimum salary for a Tennessee teacher at $38,000.

A Tennessee teacher with a bachelor’s degree would need to work for 10 years in order to achieve a mandated minimum salary above $44,000.

Now, however, brand new correctional officers will earn more than teachers with 10 years of experience. Yes, corrections officers deserve a raise.

But, it is a clear statement of priorities that Gov. Lee made this move – raising pay for corrections officers – before making any serious move to raise teacher pay. Even as Lee discusses a new education funding formula, he has not yet committed to any significant, dramatic increase in teacher salaries.

Tennessee has a significant budget surplus – $3 billion or more – and so can afford to raise pay for state employees and teachers without raising taxes a single penny.

Teachers, parents, and Tennessee communities are still waiting for Lee to put education first. Last week’s announcement continues to underscore where education falls on Lee’s list of priorities.

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A Bountiful Harvest

Tennessee Gov. Bill Lee is seeking to reallocate the school funding pie in a state that historically earns low marks for its investment in schools. Now, the Sycamore Institute reports Tennessee has a significant surplus – both banked dollars and recurring money – that could be used to help address a range of priorities.

Governor Bill Lee and state lawmakers just used some of Tennessee’s largest ever budget surplus to fund a historically large incentive package for Ford Motor Company. Even after that deal, policymakers may still have at least $3 billion in unallocated funds to appropriate next year. This total includes a record-setting $2 billion for recurring items – and that’s before even speculating about routine revenue growth. For comparison, Tennessee’s total budget from state revenues this year was about $21 billion before the Ford deal passed.

Turns out, Tennessee continues to collect significantly more money than it plans to spend. Sycamore notes that through the first three months of the fiscal year:

  • Actual collections for October 2021 were about 22% higher than budgeted.
  • As of October 31, 2021, Tennessee had collected about 24% of the $16.5 billion in total budgeted revenue for the current fiscal year.
  • Collections through October were about $902 million higher (or 24%) than what was budgeted for the time period.
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The point is: Tennessee is overflowing with cash. It seems that a conservative government would use this opportunity to return the money “to the people” by way of key investments. Among these should be investing in our chronically underfunded school system.

Let’s face it: The GOP has been in complete control of Tennessee state government for a little over a decade now. During that time, we have consistently ranked between 44th-46th in school funding. We’ve had multiple failures of our state testing system. And, we now face a teacher shortage crisis.

But, good news abounds! We have a HUGE surplus – including billions in RECURRING revenue. This means we can invest in schools without raising taxes a single penny.

For a little more than half of the surplus, we could completely shore-up our K-12 funding system. After all, a bipartisan state research body found that schools in Tennessee are short-changed on the order of around $1.7 billion.

Of course, the track record on using surplus state funds for schools is, well, now all that good:

Significant surplus revenue has been a recurring story in recent years. It’s almost as if those in power are deliberately keeping money away from our public schools. It could be, as some have speculated, they are saving all that public money for a massive school voucher scheme.

2022 is an election year. When your lawmaker tells you they’ve voted to invest in our schools, ask them why we are still $1.7 billion behind. Ask them how much of the $3 billion surplus they want to invest in schools. Ask them to stop talking about what they’re going to do and start actually allocating dollars to education.

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