Tag Archives: School Funding in Tennessee

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More Questions About School Funding Reform

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.

A Feature, Not a Bug

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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.

A Bountiful Harvest

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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.

Bill Lee wants to Raise Your Taxes and Silence Your School Board

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.

A Bountiful Harvest

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.

Priorities

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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We’ve Got Questions

The Nashville Public Education Foundation has some questions about a recently released framework for school funding reform.

Here’s what NPEF has to say about the early draft of BEP changes:

Will the base weight in the proposed framework accurately reflect the cost of running schools where all students thrive? We need an increase in funding effort from the state level that matches an aspirational vision for what is possible in public education, and what we want our teachers, students, and families to experience. 

How will weights be defined for student populations requiring additional funds to meet their learning needs? The proposed framework describes the weights as heavy, moderate, or light. What do these terms specifically mean and how will these weights be determined?

Are we also having the right conversation about fiscal capacity? It is critical to address the fiscal responsibility of the state versus that of local districts. As we design a new framework, we need to consider where the funds for the plan will come from in a long-term, sustainable way that does not place too high a burden on local districts and municipalities.

These are some great questions. In the past, the Nashville Public Education Foundation has noted the severe shortcomings of the current funding formula. That is, the formula itself may not be flawed, but the level of funding is inadequate.

In fact, in March of last year, the Tennessean reported:

“Bottom line, the BEP consistently underestimates what it takes to run schools and places an unattainable burden on local districts to pick up the difference,” said Katie Cour, president and CEO of the Nashville Public Education Foundation, in a statement.

“Too often people feel relieved when they hear the state has ‘fully funded the BEP,’ but this statement is essentially meaningless. Tennessee is grossly underfunding schools that serve one million students each year – more than 82,000 just in Nashville,” she said.

The claim of underfunding is substantiated by a report from TACIR that suggests the state is at least $1.7 billion behind where it needs to be in terms of adequate school funding.

The note from NPEF on funding effort as multiple reports place Tennessee near the bottom of the nation both in terms of dollars invested in school and overall funding effort.

F for Effort
TN School Funding Report Card: 1 D, 2 Fs
question marks on paper crafts
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TennesseeCAN Knows the Plan

How is it that pro-privatization group TennesseeCAN already knows the benefits of Gov. Bill Lee’s new school funding formula when that formula has yet to be released?

It seems an “expert” from TennesseeCAN was on hand in Franklin County to present the details of the new, as-yet-unreleased plan.

First, a bit about TennesseeCAN as reported in the Herald-Chronicle:

TennesseeCAN, a state education advocacy organization, was founded in 2011 and formerly operated as StudentsFirst Tennessee.

The organization’s website says it pushed to enact state laws for alternative certification pathways for teachers, mutual consent in district hiring practices, creating a statewide authorizer for charter applicants, expanding enrollment for autism-spectrum-disorder programs and implementing statewide school report cards to track educational progress.

StudentsFirst, readers may recall, was the group founded by Michelle Rhee – whose ex-husband Kevin Huffman was once Tennessee’s Commissioner of Education.

Why TN Teachers Didn’t Like Kevin Huffman

Anyway, here’s how TennesseeCAN describes the new funding formula:

She said a weighted funding formula:

• Recognizes that what one school needs in resources may not be what another school needs.

• Calculates funds based on the needs of students in the schools.

• Begins with student needs then provides additional funds in the form of weighted importance on programs.

• Ties funds to student need and sets a greater expectation on the return of the investment.

• Allows schools to meet the needs of the students in real-time without waiting on additional resources from the state.

Some of this sounds not terrible. However, the devil will certainly be in the details.

The BEP Voucher Plan

However, there is a line in the list of benefits that should be of great concern:

Ties funds to student need and sets a greater expectation on the return of the investment.

This gets to the argument being advanced by House Speaker Cameron Sexton that there should be some sort of “incentive” system so schools will perform better. Essentially, Sexton argues that the threat of withholding money will motivate schools to do more.

Is Sexton Serious?

The core problem of this argument is like the old joke: “The beatings will continue until morale improves.”

As has been noted by ACTUAL educators, one thing Tennessee has yet to do when it comes to schools is actually invest in schools.

Throw Some Damn Money at the Problem

In fact, Tennessee Education Association President Beth Brown says of BEP reform:

“What we have to remember is, it doesn’t matter how you carve up the money, how you plan to spend the money, if the amount of money is insufficient,” she said. “Quite frankly, that’s what we have in the state of Tennessee. We are 46th in the nation in what we invest in students.”

calculator and notepad placed over stack of usa dollars
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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:

NOAH to Gov. Lee: We Need a Bigger Pie

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

A Bountiful Harvest

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

The BEP Voucher Plan

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

Know the SCORE
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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 Teacher Exodus

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.

A Bountiful Harvest

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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Know the SCORE

Today, SCORE (Statewide Collaborative on Reforming Education) – a group formed by Bill Frist to influence education policy in Tennessee – held its annual “state of education” event. At the event, SCORE highlighted priorities for 2022.

Bill Frist and the BEP

Here they are:

Note that these priorities do not include improving school funding by way of increasing dollars allocated to the BEP.

Never fear, however, SCORE has a document on school funding.

The document contains an interesting analysis of reasons why the current school funding formula falls short. And, while the document notes that Tennessee schools don’t have enough teachers, nurses, or support staff, SCORE stops short of making an outright call for dramatically improved school funding.

Here’s how the funding issue is handled (on page 28 of the document):

Tennessee policymakers have continued to fully fund the
state’s share of the current formula in recent years, but the $1.7
billion in additional non-BEP, locally funded education spending
clearly indicates that the formula does not reflect the full cost
of educating today’s students.55 While specific technical
methods and assumptions can influence the amounts needed
to educate students, Tennessee has a clear opportunity to
improve beyond previous investments.

And, in a graph on page 24, SCORE suggests:

While there is no consensus about the amount that Tennessee should spend on K-12 education, current education funding levels show Tennessee trailing the nation by a variety of measures.

So, these are some pretty nice ways of saying Tennessee schools need more investment. But, so as not to get sideways with Gov. Lee and political types who balk at “throwing money at schools,” SCORE stops short of using its significant power and influence to make a clear, direct call for billions in new investment in Tennessee schools.

Reading these statements makes it sound like if we make a slightly larger pie and just slice it a little differently, all will be well.

But, well, it won’t.

It’s also worth noting that SCORE has been the key influencer on Tennessee education policy for the last decade. Here are some reminders of how that’s been going:

Do We Really Have to Do This?
TN School Funding Report Card: 1 D, 2 Fs
BOLD! REFORM! NOW!

A note from the end of the 2021 legislative session:

“The budget passed by the General Assembly is disappointing when we have a historic opportunity to get Tennessee out of the bottom five in education funding. With a record revenue surplus and hundreds of millions unappropriated, this was the time to stop underfunding our schools.

There were bills to provide for more nurses, counselors, RTI specialists and social workers that our students need today and moving forward to meet their mental and academic challenges cause by the pandemic and the problems of chronic underfunding. Instead, we saw a trust fund set up that will cover barely a fraction of the needs years down the road.    

It’s unconscionable for state leaders to not include significant increases for K-12 funding, especially at a time when the state has racked up $1.42 billion in surplus year-to-date. The money is there to make a significant increase to K-12 funding, but Gov. Lee and the General Assembly have instead chosen to continue stuffing mattresses full of cash. 

Another F
Severe Teacher and Staff Shortages

Tennessee consistently ranks in the 44-46 range when it comes to overall investment in public schools. National groups that study school funding consistently grade Tennessee at an “F” when it comes to funding effort. Our school systems are facing significant teacher and staffing shortages. All of this has happened while SCORE has been driving the education policy train. Now, SCORE is asking state policymakers and Tennessee citizens to follow them – to keep rolling with a train that has led to – as SCORE puts it on page 23:

The Tennessee education finance system is rated among
worst in the nation. Tennessee’s finance system has
earned a ranking that sits among the lowest in the nation.
According to Education Week’s Quality Counts analysis of
state education systems, Tennessee received a D+ (69.0) in
school finance against a national grade of C (76.1), ranking
among the bottom 10 states nationally and third lowest in
the Southeast, ahead of Florida and North Carolina.

train in railway
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Justice Delayed

It seems that justice (and funding) for Tennessee’s public schools may have to wait until after the 2022 legislative session. A school funding lawsuit that had a February court date is now being pushed back so Gov. Bill Lee can unveil his new formula and districts can decide if a voucher-focused scheme will yield any positive monetary results for public schools.

The Tennessean reports:

A lingering lawsuit challenging how Tennessee funds public schools might be put on hold until after the upcoming legislative session, according to a motion filed earlier this month.

All parties to the lawsuit — the Memphis and Nashville school districts and the state — agreed to the joint motion to halt the case’s proceedings until the end of the legislative session next year.

Gov. Bill Lee is expected to unveil a new strategy for funding education to lawmakers, which could impact the terms of the original lawsuit.

Of course, there has definitely been speculation that Lee’s ploy on funding is merely a delay tactic so the state can avoid adequate investment in schools.

Funding Board Foul
The BEP Voucher Plan
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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.
abundance bank banking banknotes
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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.

Comprehensive Review

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

Do We Really Have to Do This?

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.

The BEP Voucher Plan

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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