How Much for Schools?

Tennessee continues to experience revenue growth beyond budgeted estimates. The latest numbers indicate the state took in $112 million more than was budgeted for June. That brings the amount collected over budgeted estimates to $789 million with one more month left to calculate for the fiscal year.

Meanwhile, in spite of recent increases in allocation to teacher compensation, school systems still aren’t seeing adequate BEP funding. Every district in the state hires more teachers than allocated by the BEP formula. The state doesn’t provide any funding for the mandate of providing Response to Intervention. The state’s BEP Review Committee indicates providing funding for RTI positions would cost about $28 million. That’s about 25% of this month’s surplus. YES, for the cost of 1/4 of one month’s surplus revenue, we can begin providing funding for RTI positions. Districts should be demanding this money. The state can afford it.

As for teacher compensation, the state pays 70% of the BEP calculated rate — which is now $46,225. The good news: That calculated rate has been increasing in recent years. The bad news: That rate is still $7000 LESS than the average teacher compensation paid by districts in the state.

What does this mean? It means districts have to make up a big difference in order to maintain their level of pay. As one example, Nashville is struggling to pay teachers on par with similar cities nationally. Based on current BEP formula allocations, funding teaching positions at the actual average rate would mean MNPS would receive an additional $21 million for teacher compensation. Those funds would certainly help close the pay gap that plagues the system.

It’s worth noting that Tennessee has one of the largest gaps between teacher salaries and salaries of similarly-educated professions. Add to that the low reimbursement rate for teaching positions, and it’s not difficult to see why our teacher pay lags behind other cities and states.

To recap: Tennessee pays 70% of a pay rate that is $7000 below the actual cost of hiring a teacher. Fixing that by funding teaching positions at the actual cost would mean spending $343 million more per year. Or, about three months worth of surpluses. For another $28 million, we could also fund RTI positions.

Tennessee is on sound financial footing. We have month after month of budget surpluses. We also have a clearly identified policy need that would consume less than 40% of those surplus dollars. That leaves plenty of money for savings, other investments, or new projects.

I write this story year after year after year.

Policymakers can choose to address the serious funding challenges facing our schools. They can do it without raising taxes. They can do it while still saving more than $600 million.

This should be easy.

If providing excellent public schools is a top priority, the state will move to fund teaching positions at a rate that matches the actual cost of hiring a teacher.

Every candidate for governor should be asked if they support making this investment. Their answer will say a lot about the priority they place on public education.

For more on education politics and policy, follow @TNEdReport


 

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.


 

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


 

 

Is That Even Legal?

Charles Corra examines the potential legal issues with Tennessee’s charter schools in light of the Washington State Supreme Court ruling saying that state’s charter law was unconstitutional.

He starts with this note:

I recently tweeted about an article published in the Nashville Bar Journal called “Tennessee’s Waltz With Charter Schools,” which commented on the potential unconstitutionally of Tennessee’s charter school legislation.

Then adds:

Similar to Washington, Tennessee’s charter schools are also private entities that contract with a school board and cannot be managed by for-profit entities.  The author also points out the similarity with funding between Washington and Tennessee charter laws: that the money follows the student. What is important in the article is the discussion that follows regarding the variance in success rates between charter schools (i.e. some performed well while others did not), which could be attributed to the freedom that charter schools have with how they allocate resources. The takeaway here is that, based on a study the author delves into, there are inconsistencies in management, operation, funding, and student achievement among charter schools in Tennessee.

The points, as Corra makes it, is that because of the way Tennessee charter schools are operated and funded, they could be in violation of established precedent regarding equal educational opportunity. No challenge to this law has yet been made, but the issues raised in the Washington case may merit attention by Tennessee lawmakers.

Read Corra’s full analysis of this issue.

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

Just Like Mississippi

This letter to the editor about the current school funding crisis in Mississippi reminded me of the funding issues faced in Tennessee as a result of a Governor and legislature so far unwilling to properly fund our public schools.

Of particular interest was this note:

Every citizen of Mississippi pays taxes; income tax, sales tax and others; and a portion of that tax is required to be used to fund public education in this state. Again, the law is known as MAEP. When the legislature fails to obey this law, two things happen: First, the legislature gets to use the money it did not spend for pubic education for other purposes, even for funding private education with public money. Second, the local school districts, because the functions of running a school district must continue, have to request more local funding from the boards of supervisors. This, in turn, causes the supervisors to have to raise local millage rates.

This is effectively double taxation to fund education.

Except for the fact that Tennessee does not have an income tax, this is exactly what is happening in our state. Citizens are paying state taxes, the state is underfunding schools, and local governments are raising property taxes in order to address the shortfall.

In fact, because of revenue issues, Clay County’s School Board recently voted to delay the re-opening of schools following Fall Break.

And, Tennessee’s school funding challenge can be met without raising taxes. Yes, we have a $600 million surplus for 2015 fiscal year. Are legislative leaders talking about using that money to invest in schools?

No.

Instead, they are talking about more tax breaks for the investor class or building roads.

When the state fails to adequately support public schools and then passes down expensive, unfunded mandates, local taxpayers end up footing the bill.

Let me say this again: Tennessee taxpayers paid more than $600 million more than was projected just last year. Revenue is up above projections again this year. And legislators are talking about using the extra money for roads and tax breaks, but not schools.

That means taxpayers will likely see local tax increases or that local schools will go without needed resources — or, in some cases, both.

The BEP — the state’s funding formula for schools, is broken. But, the legislature is not yet poised to fix it.

When it comes to support for schools, Tennessee’s General Assembly is a lot like Mississippi’s.

For more on education politics and policy, follow @TNEdReport