Prioritizing Education

Gov. Bill Haslam tweeted on October 3, 2013: “Teachers are the key to classroom success and we’re seeing real progress.  We want to be the fastest improving state in teacher salaries.”

The first hint that being fast-improving might take some time came in the Governor’s 2014 budget presentation, when he proposed a 2% pay raise for the state’s teachers.  By way of comparison, Kentucky’s Governor also proposed a 2% raise for his state’s teachers. It’s tough to be the fastest improving when you move at the same rate as your competition.  It’s like being down 40-30 at halftime of a basketball game.  Then, in the second half, you match the other team and score 40 points.  You end up losing 80-70.  To be fastest-improving, you have to score more points, but maybe Haslam’s not a sports fan.

Then, comes yesterday’s news that Haslam’s budget is facing trouble because state revenues are down.  So, surely he’s going to focus on keeping those all-important teacher raises and commitment to K-12 education, right? Wrong.  Haslam is balancing the state budget by denying promised raises to teachers and state employees and ditching his proposed increases to higher education. What’s worse, Haslam’s Commissioner of Education convinced the state Board of Education to mandate that Tennessee school districts adopt differentiated pay scales.  The 2% increase in salary money available to districts was to help them meet this goal.  Now, the districts still face the mandate but will lack the state support to make truly meaningful change.

Below Mississippi? The Tennessee Education Association was quick to jump on the proposed cuts as unacceptable.  Citing research by the National Education Association, the TEA notes in a press release that Tennessee will now invest less per student than Mississippi.  According to the research, Tennessee’s per pupil investment is 45th in the nation and below every neighboring state but North Carolina. TEA President Gera Summerford said, “In order to attract and retain the best teachers, it is critical that the state properly fund teacher salaries.”

Where’d the Money Go? Governor Haslam blames the $160 million hole in the budget on lower than expected corporate taxes.  However, no mention is made of the $46 million in lost revenue from a 1/2 cent decrease in the state portion of the sales tax on food.  While removing or reducing the sales tax on food is a laudable goal, doing so without finding revenue to replace it is irresponsible.  The sales tax on food is the most reliable portion of state revenue. Additional revenue is lost by the gradual phase out of Tennessee’s estate tax, previously impacting estates over $1 million.  The plan is to phase that out entirely by 2016, with an estimated revenue loss of around $30 million this year and around $97 million in 2016-17’s budget. So, that’s roughly $76 million, or close to half of the projected shortfall for the upcoming budget cycle. To his credit, Haslam says he wants to hold off on efforts to repeal the Hall tax on investment income – a tax paid by a small number of wealthy Tennesseans with investment income.  However, he has also said reducing or eliminating the Hall tax is a goal. Phasing out the tax, as proposed in legislation under consideration this year at the General Assembly, would mean a loss of $20 million in the 2015-16 budget year and an ultimate loss in state funds of $160 million a year and in local revenue of $86 million a year.

Other options? It’s not clear, what, if any other options were considered.  In Kentucky, Governor Steve Beshear proposed a budget that included 5% cuts to most state departments while raising teacher pay and increasing investment in K-12 education. So, while his state faces a tight budget situation and difficult choices, he chose to put forward a budget that increased spending on public education and invested in Kentucky’s teachers, who are already better paid than Tennessee’s. The Kentucky General Assembly passed a version of that budget this week. Tennessee’s General Assembly may make changes to Governor Haslam’s proposals, of course. But it’s difficult to claim that Bill Haslam is putting education first.  Of course, that tweet back in October could also have been a set up for a rather cruel April Fool’s Day joke.   For more on Tennessee education politics and policy, follow @TNEdReport

Huffman Chairs Pie-Slicing Task Force

Education Commissioner Kevin Huffman is chairing Governor Haslam’s Task Force on the Basic Education Plan.  Haslam appointed the task force after districts began complaining that the current structure of the BEP is unfair.  In doing so, he essentially ignored the work of the standing BEP Review Committee, which annually reviews and recommends changes to the BEP formula.

After the committee’s initial meeting, Huffman said, according to the Chattanooga Times-Free Press:

“The purpose of the task force is not to say Tennessee needs to spend hundreds of millions of dollars more of money that we may or may not have,” Education Commissioner Kevin Huffman, said following the meeting. “The purpose of it to look at are the right components included as part of the formula, and given a fixed pie, how would you distribute that pie based on capacity.”

So, Huffman is in charge of a committee that’s tasked with deciding how to divide up an already inadequate pie.

If he’s serious about the work, he’d do well to go back to the reforms proposed under Governor Bredesen with the help of then-state Senator Jamie Woodson. Those reforms, dubbed BEP 2.0 changed BEP allocations and also added some new funding allocations.

The cost of fully funding BEP 2.0 would be around $150 million.

Finding that money may mean making difficult choices.  Just north of us, in Kentucky, Governor Steve Beshear has proposed a budget making tough choices in order to fund education.  While many departments see budget cuts in his proposal, K-12 education sees budget increases.

While Governor Haslam and his legislative partners seem intent on eliminating the Hall Income Tax and reducing revenue, education suffers.  And if that agenda is what they believe is absolutely essential to Tennessee’s future, surely some cuts in other areas can be found in order to boost investment in public education.

Of course, proposing a budget that cuts most departments but increases funding for public schools requires leadership and tough choices.

Instead, it seems we have a committee focused on redistributing the slices of a shrinking pie.

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

 

Lamar Alexander, Rand Paul, and Charter Schools

Yesterday, Sen. Lamar Alexander and Sen. Rand Paul stopped by Nashville’s KIPP Academy to talk about education issues and to allow Alexander a chance to be photographed next to Tea Party favorite Paul.

The topic of discussion was school choice and the two legislators were joined by Tennessee Education Commissioner Kevin Huffman and House Speaker Beth Harwell.

First, let me say that KIPP Academy and a number of other Charter Schools do very fine work.  Charter Schools can offer an alternative that helps kids and the good ones are a welcome addition to the mix of options offered in urban school systems.

That said, the event seemed odd in that it was Paul who was talking about the lessons Kentucky could learn from Tennessee’s education experience.  Kentucky has no Charter Schools, no voucher schemes, and not much in terms of what current “reformers” deem necessary to “improve” schools.

Here’s what Kentucky does have:

— Higher scores on the NAEP (National Assessment of Educational Progress) than Tennessee in seven out of eight categories.

— A higher ACT composite average than Tennessee

— A larger percentage of its population with 4-year college degrees than Tennessee

— A lower unemployment rate than Tennessee

In short, Kentucky’s schools are getting results and continue moving in the right direction.

So, it seems Lamar Alexander might want to ask one of the many Democratic governors Kentucky has had over the years about the importance of a long-term commitment to meaningful reform.

Kentucky’s Education Reform Act, passed in 1990, changed the way schools were funded.  It set up a new system of testing.  It provided early career support for teachers.  Funding for all schools was increased.  One feature many at yesterday’s event touted about Charter Schools (autonomy, school-based decisions) was written into the Act — Kentucky schools have Site-Based Decision-Making Councils.  These bodies (parents, teachers, administrators) make decisions about school governance and budgeting.

Kentucky spends about $1500 more per student than Tennessee and has sustained this investment (for the most part) in good and bad economic times.

Governor Steve Beshear has been committed to high quality early education.

The results are clear: Kentucky’s been committed to meaningful, sustained investment in schools and teachers and it is paying off and continues to pay off.

Tennessee has tried just about everything but sustained investment, with the 2014 legislative session sure to bring up further discussion of vouchers and other schemes – none of which will likely come with more dollars for the classroom or more support for teachers.

And on just about every indicator, Kentucky beats Tennessee when it comes to school-based outcomes.

It’s time Lamar Alexander and Tennessee’s policymakers look north, and learn the lesson that long-term, sustained support for schools is the only way to move students and the state forward.