The Tennessee Public Education Coalition is out with a piece on why Gov. Bill Lee’s school funding plan (TISA) is a threat to strong public schools in our state.
Here are some highlights:
Perhaps this year’s greatest threat to legislator incumbency is Governor Bill Lee’s new K-12 funding bill, which he calls the Tennessee Investment in Student Achievement act, or TISA. In spite of continued statements from the governor and Education Commissioner Penny Schwinn that the administration’s “student-based” funding formula was developed in response to dozens of stakeholder meetings and hundreds of public comments, this funding plan is model legislation developed in 2010 by ALEC, the school privatizing think tank.
In spite of how this bill is being promoted, the primary purpose of this bill is to shift even more of the cost of K-12 education to local taxpayers.
The Tennessee Public Education Coalition has advocated for increased state funding for K-12 education for years. While the Governor’s plan appears to increase the total amount of funding for Tennessee schools, the Governor’s TISA bill actually would increase funding for vouchers and privately-run charter schools.
The state has the means to invest billions of new dollars in public schools. But as Commissioner Schwinn’s recent testimony and The Tennessean’s recent reporting have revealed, local governments eventually will be on the hook for additional local funding if TISA becomes law. And city and county governments do not have billions of dollars in surplus.
TISA’s increased local match requirements will lead to property tax increases that local governments and taxpayers will blame on the new school funding formula if it becomes law.
READ MORE in the Tennessean about why key public school advocates oppose TISA.
Gov. Bill Lee is proposing a significant change to the way the state funds public schools. His proposal would replace the decades old BEP formula with something he calls TISA – Tennessee Investment in Student Achievement.
Except, well, the plan does nothing to invest in student achievement. Rather, it is a complicated system of weights applied to students that supposedly will lead to improved student achievement based on how districts use funds for targeted interventions.
In other words, the same old stuff in a shiny new, complicated package.
Here’s how we know this plan won’t boost student achievement. First, it does nothing to shore up the shortage of teachers needed to adequately support students now. That is, according to both TACIR and the Comptroller, Tennessee districts hire MORE teachers (11,000 more, to be exact) than the current formula funds. Guess what? TISA does nothing to change that. There is no indication that the weights will mean more teachers hired and supported by state funding.
Next, TISA does nothing to boost overall teacher pay. Sure, TISA “allows” lawmakers to earmark certain funds to give raises to “existing” teachers, but that doesn’t mean they will. Nor does it mean those raises will be significant. This year’s $125 million set aside for teacher compensation will mean what is effectively a 2-3% raise for most teachers. Based on current inflation rates and rising insurance premiums, this essentially amounts to a pay cut.
If Lee actually wants to improve student achievement, he’d make a significant investment in teacher salaries. First, we have a teacher shortage that is only getting worse – more pay is not the only remedy, but it is a good tool to stem the tide.
Next, a recent study shows that boosting teacher pay has a direct, positive impact on student achievement.
Researchers have conducted a massive, unprecedented statistical analysis of public school teacher salaries and student standardized test performance in the United States, finding that when teachers are paid more, students score higher.
Why does this happen? The researchers offer this suggestion:
Prior research has shown that increased teacher salaries prompt higher quality students to seek careers in education. Additional pay also lowers teacher turnover, keeping talented, experienced teachers in their jobs and resulting in more educator continuity for students, which builds trust between teacher and pupil.
This recent study of teachers in the United States can be compared with a study by researchers at the London School of Economics which also demonstrated that higher teacher pay was causally related to higher student achievement:
“. . . we find that a 10% increase in teachers’ pay would give a 5-10% increase in pupil performance.”
But Lee’s plan doesn’t do that. Or even approach that. At best, this year’s raise will mean 3%. Going forward under TISA, every indication is that the state increase to base teacher compensation will be between 2-4% a year – or, a mere inflationary adjustment – no real boost in actual income.
Here’s what Lee’s plan does do: Raise local property taxes.
Meghan Mangrum in The Tennessean offers an analysis of how local property taxes would increase under TISA:
“Under TISA, the required local match for Davidson County is anticipated to increase by $35 million between FY23 and FY24, while the state’s investment in Nashville’s students will only increase by $12.6 (million) under the projections they have provided,” spokesperson Sean Braisted said in an email.
And that’s just Nashville. 28 districts will have to increase local contributions (raise taxes) beyond current levels in FY 2024. Then, in FY 2027, after TISA’s hold harmless expires, it is likely many more districts will see increased costs.
TC Weber dives deeper into the funding issue – the bottom line: Your local taxes will likely go up to fund TISA.
Why is this happening? Because the new formula is NOT addressing the underlying issue: Our current formula doesn’t pay for the teachers we need. The secondary (and very important issue) is that TISA does not address the need to significantly boost teacher compensation.
Here’s the deal: Tennessee COULD address this issue.
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.
We’ve got $3 billion in extra cash just lying around!
Well, and we’ve got even more. The Department of Finance and Administration reports the state is more than $2 billion OVER estimated revenue collections this year so far!
Year-to-date revenues for six months were $2.15 billion more than the budgeted estimate. The general fund recorded $2.02 billion in revenues more than estimates, and the four other funds totaled $126.7 million more than year-to-date estimates.
So, here’s what a student-achievement focused budget would look like:
$1 billion to close the gap in needed teachers – that’s $1 billion from the state allocated to local districts to fund the teachers local dollars are already providing.
$1 billion to raise teacher pay by 15% or more for ALL teachers – This assumes the state covers the cost of the increase for the newly state-funded teachers (7000-9000) plus all teachers currently covered.
Guess what? We can do that with billions of dollars left over.
Guess what else? Implementing a plan like this can be done by making adjustments to the current BEP formula.
And you know what else? This can be done without raising local taxes one cent. No state tax increase, no local tax increase, more teachers covered with state dollars, and better pay for all teachers. That’s an evidence-based, affordable solution to the problem Lee says he’s trying to address.
Which begs the question: Why does Lee’s plan rely on local property taxes and why doesn’t Lee’s plan improve the number of teachers or pay them significantly more?
The answer could be in the millions of dollars spent by pro-voucher and pro-charter (privatization) interests to influence state education policy.
Members of the Tennessee Public Education Coalition spoke out in opposition to Gov. Bill Lee’s education agenda which includes sending public money to private schools by way of school vouchers and charters.
In an OpEd, the group said:
We have a clear choice in Tennessee. We can choose to adequately fund our public schools, pay our teachers a fair wage, and support our neighborhood schools — or we can choose grift.
Here are some of the examples offered by the group to demonstrate the danger of rapid expansion of charter schools:
Memphis Academy of Health Sciences closed, displacing 750 students, after three leaders were indicted for stealing $400,000 for personal use – for trips to Las Vegas, a hot tub, NBA tickets, and auto repair.
New Vision Academy in Nashville shut down after state and federal investigation into financial irregularities, failure to comply with federal laws concerning special needs students and English language learners, and cramming too many children into classrooms in violation of the fire code. The husband/wife team leading the school of 150 students earned $563,000 per year.
Gateway University Charter School in Memphis shut down after it was accused of falsifying grades, using uncertified teachers, giving credits for a geometry class that didn’t exist, and pulling children out of classes to clean the school’s bathrooms and other areas.
Knowledge Academies in Nashville lost hundreds of thousands of tax dollars in an online phishing scheme (after which its founder and CEO suddenly disappeared); used uncertified teachers; understaffed the school and stopped paying teachers; operated with a deficit of $835,878, despite an annual revenue of $7.1 million; failed to meet federal requirements for English language learners and special needs students; and ran side businesses out of the school building. Nashville shut the school down, but the state forced it back open. It’s now operating with a $7.9 million deficit.
Nashville Global Academy forgot a child on a bus parked offsite all day, misappropriated funds to the tune of $149,000, and collapsed over $400,000 in debt with unpaid bills worth hundreds of thousands of dollars.
READ MORE from Tennessee Public Education Coalition on Lee’s efforts to privatize our state’s public schools.
Of course, Lee has some powerful (and wealthy) friends pushing privatization:
Nashville education blogger TC Weber has a couple of pieces out that break down Gov. Lee’s proposed school funding reform.
The bottom line: Be afraid, be very afraid.
I mean, if you like using public money to fund private schools OR if you’re a fan of the state taking over districts, this funding scheme is for you.
Here are a couple hits from TC’s analysis:
While we are on the subject of the funding bill, let’s flip to section 66. This is the portion of the bill that lists amendments to existing legislation. It reads as follows,
SECTION 66. Tennessee Code Annotated, Section 49-10-1405(a)(1), is amended by deleting the language “the per-pupil state and local funds generated and required through the basic education program (BEP) for the LEA in which the student resides and is zoned to attend” and substituting “the total funding allocation that the student generates under the Tennessee investment in student achievement formula (TISA)”.
Did you get that?
Read it again.
I’ll wait.
Under current legislation, a student who qualifies for an IEA, or disability voucher receives around 6k to use for qualified expenses. It’s long been argued more students haven’t taken advantage of the education account opportunity, because the number is too low to make an adequate investment in a different educational opportunity.
If the new law passes, that student will receive exactly the amount generated through the funding formula, potentially making a voucher worth $16k. If you think that won’t increase enrollment and eventually bleed into a full-blown voucher plan, think again.
So, it turns out Mike Stein was right to warn about a BEP Voucher Plan.
READ MORE from TC on the funding formula and vouchers >
Then, TC digs into the section in the reform bill about school takeovers:
(c) An LEA that operates or authorizes a public school that receives a D or F letter grade pursuant to § 49-1-228 may be required to appear for a hearing before an ad hoc joint committee of the general assembly to report on the public school’s performance and how the LEA’s spending decisions may have affected the ability of the LEA’s public schools to achieve certain performance goals. The speakers of the senate and house of representatives shall each appoint members to serve on the joint ad hoc committee from the members of the general assembly serving on the education or finance committees of the senate and house of representatives. At the conclusion of a hearing conducted pursuant to this subsection (c), the joint ad hoc committee may direct the department to impose one (1) of the following corrective actions:
(1) Require the LEA or public charter school to develop, submit to the department for approval, and implement a corrective action plan consistent with a corrective action plan template developed by the department. The department shall report to the committee regarding the LEA’s or public charter school’s implementation of the corrective action plan; or
(2) Appoint an inspector general selected by the comptroller of the treasury to oversee the LEA’s or public charter school’s academic programming and spending. The department shall report to the committee regarding the outcomes of the inspector general’s oversight. The department shall promulgate rules to effectuate this subdivision (c)(2) in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.(d) The department shall apportion the costs of implementing a corrective action imposed pursuant to subdivision (c)(2) between the department and the LEA on a case-by-case basis, subject to the approval of the joint ad hoc committee.
The desire for the state to takeover MNPS and SCS has long been the worst kept secret in town. This bill will provide the vehicle to take such action.
Never mind that the General Assembly passed legislation over half a decade ago that called for the creation of the A-F grading system, it’s never been implemented. as pointed out last year on the Senate floor. Now it’s suddenly going to be implemented and its first year out of the box it’ll have potentially dire consequences for districts.
MORE on ALL the requirements for districts included in the reform plan.
Then, there’s former Nashville school board member Amy Frogge. She also warns that the funding package may not be all rainbows and unicorns. In fact, it seems highly problematic for the future of K-12 public education in our state.
This new rigged funding formula is the BIGGEST threat to public education that TN has seen in years. Legislators better beware because it’s a Trojan horse for school privatization that will direct a disproportionate share of unregulated funding to private pockets and
In sum, TISA REMOVES LOCAL CONTROL of education spending and programming, and IT WILL RESULT IN MASSIVE LOCAL TAX INCREASES after three years. After Lee and Schwinn are long gone, Tennessee’s taxpayers will be left holding the bag.
The Nashville Public Education Foundation (NPEF) issued a press release today on the heels of Gov. Bill Lee announcing his proposed new funding formula for schools. The gist is that NPEF is encouraged by the transparency and potential overall funding boost. There are, however, questions about accountability elements and an incentive fund.
Here’s the full press release from NPEF:
The long-awaited announcement of a new student-based funding formula in the state of Tennessee is being applauded by the Nashville Public Education Foundation (NPEF) for its focus on students’ needs and its transparent and simplified structure.
Tennessee Governor Bill Lee and Tennessee Department of Education (TDOE) Commissioner Penny Schwinn shared proposed legislation for the Tennessee Investment in Student Achievement formula (TISA) today.
“The Governor pledged to put students first with his new proposal and we believe he has done that,” said Katie Cour, President and CEO of the Nashville Public Education Foundation. “The new formula provides additional funding for economically disadvantaged students as well as students with unique learning needs, neither of which were adequately addressed under the former funding formula.”
Though overall, NPEF is encouraged by the Governor’s plan, a few aspects of the formula deserve greater clarity for Nashvillians in particular. Specifically, it is unclear how much additional weight English Learners will receive under the new plan. Nashville is home to the state’s largest EL population and research shows that these students need a substantially larger investment to support their success.
Under the proposal, districts with low-performing schools could face corrective actions that have not yet been detailed. While NPEF supports accountability structures that reinforce student and school success, the new plan moves some accountability decisions from the TDOE to an ad hoc legislative committee. NPEF will be monitoring the effectiveness of this accountability shift.
“The new formula is significantly more transparent than the complex and onerous BEP,” said Cour. “While we applaud this transparency, we are uncertain how the plan’s shift in accountability will play out. We will continue to monitor any potential impacts of changes to accountability on Nashville’s governance structure.” NPEF has consistently advocated for an overhaul of the state’s education funding formula and stressed the needs for 1) significantly increasing the percent of GDP that Tennessee invests in K-12 education; 2) making any increase permanent and recurring; 3) ensuring any new formula specifically addresses fiscal capacity of Tennessee municipalities; 4) designing a student-based funding formula that allocates funding based on the needs of individual students; and 5) establishing clear transparency around policy governance and decision making. NPEF proudly served as a contributing member of the Education Foundations Subcommittee for the TDOE-led funding review process.
Seeking to engage Nashvillians with essential data to make informed demands and decisions, last year NPEF released an informational Policy Brief outlining the complexities, challenges, inadequacies, and consequences of Tennessee’s current Basic Education Program (BEP) funding formula for schools. Titled “Funding Our Schools: How Tennessee’s Funding Formula Fails to Meet the Needs of Nashville’s Students,” the brief encouraged Tennessee to fully adopt the recommendations of its own BEP Review Committee and called on the community to advocate for increased funding for the state’s schools.
For more on education politics and policy in Tennessee, follow @TNEdReport
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The Nashville Public Education Foundation (NPEF) has been closely following Gov. Bill Lee’s proposed reform of the state’s school funding formula. Following the State of the State, NPEF has some questions about how Lee’s proposal will impact Nashville. Here are some highlights:
Will there be bi-partisan, transparent legislation that guides leaders across our state? Or will decisions be delegated to the Tennessee Department of Education or State Board of Education?
If a detailed law is not codified by the Tennessee General Assembly, how can we ensure that future changes to the formula are transparent and not made arbitrarily?
It’s possible Lee could ask the legislature to codify broad parameters for funding reform and leave the details to the rulemaking process. That could mean the public is not fully included in a transparent process.
Given Nashville’s considerably higher cost of living and the state’s low minimum requirement for teacher salaries, we already pay a much higher average teacher salary than the state requires. Because of this disparity, it’s unclear how Nashville teachers would benefit from any increase.
Governor Lee has given a nod to this challenge in his comments: “Historically, funds put into the salary pool don’t always make it to deserving teachers, and when we say teachers are getting a raise, there should be no bureaucratic workaround to prevent that. So in our updated funding formula, we will ensure that a teacher raise is a teacher raise.” (The Tennessean)Will these new teacher salary dollars simply raise an already low minimum state salary scale? If so, Nashville’s teachers will likely not see a substantial increase.
It’s worth noting here that the reason a “raise is not a raise” is because the state drastically underfunds the number of teachers needed to fully staff schools. This means state salary pool dollars must stretch to cover needed positions and less money is left for raises. Unless Lee’s new formula adds between 7000-10,000 new teachers, any increase in teacher salary money will come up short when (or if) it hits paychecks.
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?
For more on education politics and policy in Tennessee, follow @TNEdReport
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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.
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.
For more on education politics and policy in Tennessee, follow @TNEdReport
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Last night, the Williamson County School Board unanimously approved a mid-year pay raise for teachers and staff. If approved by the County Commission, teachers will receive a 3% raise and hourly staff will see a $1/hour pay increase, effective January 31st. The unusual move of raising pay for teachers and staff mid-year is happening because of severe teacher and staff shortages. The district currently has 71 teaching openings.
Williamson Strong live-tweeted the meeting and provided the key stats:
Golden says the pool of teacher candidates of shrunk. As of last week, we had 71 open teacher positions.
Vickie Hall, Assistant Superintendent of Human Resources: 560 teachers were hired between Jan 1 and Dec 31, and we have had an increased number of separations: 529 separations in 2021. That is an increase from 2019 when we had 380.
The move is also happening while Gov. Bill Lee and state policymakers examine Tennessee’s school funding formula. So far, that has not resulted in a serious discussion about dramatically raising teacher pay. In fact, this story highlights the level of priority placed on teacher pay in the state:
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.
It will be interesting to see what districts across the state do in 2022-23 and beyond to improve salary and working conditions for teachers and if the state’s new funding formula provides any help in this arena.
