Tag Archives: School Funding in Tennessee

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General Assembly Preview

Nashville education blogger TC Weber offers some insight into what the General Assembly may be considering around education policy in 2021.

Here’s some of what he has to say:

First up is addressing BEP funding for schools. State funding is typically contingent on attendance numbers. Due to the pandemic, school districts across the state are losing students. According to Chalkbeat, the statewide decline in student enrollment this fall would normally decrease the allocation by at least $320 million.

Recognizing, that if those lost students come back next year when the Coronavirus is more manageable, districts will be under economic hardship, Representative Cerpicky has introduced a school stabilization bill that would in essence freeze funding at current levels, providing relief to districts.

To his credit, Cerpicky understands that this is just a beginning and he would like the General Assembly to conduct a review of the current BEP formula. Most stakeholders recognize the shortcomings of the current model, which was adopted in 1992, and its failure to adjust for inflation, government mandates, a growing charter school sector, and expenses driven by changes in technology. There seems to be a growing willingness to redress it.

Cerpicky’s thinking is that if a bill keeping districts financially solvent for another year can be passed, it would create a window of opportunity to address the BEP. Legislators would have 14 to 15 months in which to address the BEP formula in Education Committee meetings. I can’t disagree with that thinking.

Legislators for the most part appear to understand the importance of freezing district funding and appear amendable to keeping funding frozen. Well, all except Chairman Sexton who thinks that only schools who have open school buildings deserve protection. Apparently, he is unaware of the level of work teachers are doing remotely to keep students engaged. Somebody needs to hand him a clue. Instead of criticizing Memphis for taking their savings and giving teachers a 1% raise, he should be praising them for recognizing the level of sacrifice being made by teachers and principals.

The funding picture needs to be clarified as soon as possible so that superintendents can begin accurately creating their budgets for the next school year.

Equally important is a decision on whether TNReady will be administered, or not, and if administered, what impact scores will have on schools, teachers, and students. Most recognize that the administration of testing at this juncture is an exercise in futility. But there is a contingency who believes that the tests should be administered though results should not be used for accountability. My argument is that if I hold a scrimmage game and I keep score, despite calling it practice, everybody knows who the winners and losers are.

Not testing this year will not permanently damage kids, in fact, it would provide opportunities for additional instructional time. It’s been floated out there that this year’s tests should be canceled and money instead is allocated to summer school. I don’t know if that’s feasible or not, but it makes a lot more sense.

Here are some notes on the historically underfunded BEP:

Severe Teacher and Staff Shortages
Comprehensive Review

Note here that TACIR – a state organization that analyzes state and local government – says the BEP is underfunded by $1.7 billion. Even with the COVID “savings,” it seems our schools need a drastic increase in investment.

Will the General Assembly get serious about actually coughing up that kind of cash? I seriously doubt it.

They should.

But, Gov. Lee has shown his true colors — he’s pushed a privatization agenda and he cancelled a planned teacher pay raise this past year. It’s not clear lawmakers have the courage or fortitude to challenge Lee when it comes to funding. Nor is it clear they will do what it takes to pump $1.7 billion into our schools.

We’re now on our second consecutive governor named Bill. Mr. Haslam revised the BEP in a way that virtually ensured we’d end up where we are now — with an inadequate funding mechanism for our state’s schools. Gov. Lee lacks the imagination to dream big for schools, instead preferring to pursue a privatization agenda that makes his friend Betsy DeVos proud.

The General Assembly “might” do something on school funding. Freezing the normal allocation to prevent significant funding loss as a result of COVID is a good start. But, there’s much more to be done. Lawmakers shouldn’t use the COVID situation as a scapegoat to allow them to get out of the much more challenging work of creating a long-term, sustainable BEP solution.

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TEA Pushes for School Nurses

In a recent tweet responding to Gov. Bill Lee’s proposal to have school nurses conduct COVID-19 testing, the Tennessee Education Association highlighted the need for the state to provide funding for a nurse in every school.

https://twitter.com/TEA_teachers/status/1313532196930686978?s=20

The issue of school nurses has been on the agenda of the state’s BEP Review Committee for years. In fact, back in 2014, the committee (tasked with annually evaluating the efficacy of the state’s school funding formula), recommended a significant improvement in funding for school nurses.

Here’s the recommendation from the 2014 report:

Change funding ratios for nurses from 1:3,000 to 1:1,500  $12,194,000

So, for at least six years now (and, to be fair, BEP reports before 2014 also mentioned improvements to funding for school nurses), the state has fallen significantly short of the necessary funding to adequately staff schools with nurses. Now, Gov. Lee wants to add tasks without adding personnel.

Here’s the deal: The management principle of “get more with less” is total crap. Gov. Lee should know this, as he came to state government straight from the private sector. Here’s what you get when you ask overworked, underpaid people to do more with less: You get less. Something has to suffer. Maybe COVID tests will happen, but something else will fall by the wayside. Or, maybe less people will even consider becoming school nurses in Tennessee, further exacerbating the current shortage.

Six years. Two Governors named Bill. No action.

Sad!

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The Impact of a Broken School Funding System

Tennessee’s school funding formula, the BEP, is broken. It fails to adequately fund teaching positions. It fails to account for actual salaries paid to teachers. It fails to provide the money necessary to adequately equip schools. There’s simply not enough funding for nurses or counselors or other key support staff. Here’s one teacher talking about what a broken school funding system looks like.

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What Matters? Money!

While some Tennessee lawmakers are pushing for a significant new investment in our state’s schools, new evidence suggests that a cash infusion is just what schools need to retain teachers and improve student outcomes.

Here’s the breakdown from Matt Barnum:

This tracks with a post I shared recently from We Are Teachers noting that a boost to teacher pay has a long-term impact on 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.

Tennessee needs $500 million just to properly staff schools — and that’s just teachers. We need more to add the proper number of counselors, nurses, and other key support staff.

Our teachers need a raise — Tennessee teachers earn about $2400 less than they did back in 2009 when salaries are adjusted for inflation.

This new round of research backs up what those on the front lines of public education will tell you: Money matters. It matters a lot.

While Gov. Lee and his legislative allies push failed charter solutions and sketchy voucher plans, our public schools are starving for support.

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North Carolina Court Order has Implications for Tennessee School Funding

A court order out of North Carolina could have implications for the ongoing school funding lawsuit in Tennessee. Here’s more:


On January 21, Wake County Judge David Lee signed a consent order in North Carolina’s long-running Leandro v. State school funding case adopting the comprehensive findings and recommendations in a study ordered by the court to bring the state’s public school system into constitutional compliance. The study, conducted by the national research organization WestEd and filed with Judge Lee in late 2019, identifies in detail the State’s current failure to provide students with a constitutional sound basic education and recommends major reforms to ensure adequate funding and essential resources for all students.

Shelby County and Nashville have filed suit against the State of Tennessee alleging inadequate funding. More recently, a group of lawmakers has proposed an additional $1.5 billion investment in Tennessee public schools.

Here are the recommendations made by the funding study in North Carolina:


Adequate and equitable funding: The State should increase school funding by $7 billion over the next eight years: $3.2 billion in the short term focused on at-risk students, followed by an additional $3.7 billion. An additional $1.18 billion is recommended to expand high quality preschool. Beyond increased funding, the State should overhaul the school finance system to ensure stability, predictability and progressivity, and target funds to programs for at-risk students, including preschool; support services, such as counselors and social workers; teacher pipeline reforms; and principal preparation. The finance reforms should also require periodic review and adjustment of the funding formula and direct State funding of charter schools.


Qualified, well-prepared and diverse teaching staff: The State should invest in improving the preparation of qualified teachers in high need schools by increasing support for North Carolina Teaching Fellows; State university teacher preparation programs, including at HBCUs; and district grow-your-own programs. Teacher compensation must be increased, especially for teachers in high-poverty districts, along with funding for ongoing professional development, teacher diversity and culturally responsive teaching.


Qualified and well-prepared principals: The State should update licensure and preparation requirements, expand access to high-quality principal preparation programs, and improve principal compensation and supports.


High Quality Preschool: In addition to a recommended $1.18 billion increase to expand high quality preschool, the State should prioritize access for at-risk children, improve the preschool teacher workforce, and work with high-poverty districts to ensure programs  serve community needs and use aligned instruction to transition children from preschool to the early grades.


Initiatives for At-Risk Students: Reforms are needed to attract and retain highly qualified teachers in high poverty districts; revise the accountability system to be less punitive; provide whole child supports, such as counselors, nurses and social workers; and address out-of-school barriers, such as hunger and homelessness.


Assessments and accountability: Assessment and accountability reforms are necessary to ensure coherence and alignment to curriculum and learning goals provide a broader picture of school/district performance and progress and use evidence-based support to improve performance.


Low-performing and high-poverty schools: A critical (and often-overlooked) recommendation is to rebuild the State Department of Public Instruction’s capacity to support districts and school improvement and to work with high poverty districts  to address out-of-school barriers to academic achievement through a community schools approach.


Continued Court Oversight: Judge Lee  should appoint a panel of experts to assist in monitoring State compliance in the implementation of the recommended remedies and  require  State submission of  reports and annual plans, with metrics to measure progress.

While the actual numbers may be different, many of these items could easily be applied to Tennessee. Our state fails to fund initiatives like RTI and continues to underfund counselors, nurses, and other key support staff. Additionally, the Department of Education reports the state is failing to provide funding for 9000 teachers hired by districts.

As Education Law Center notes:


The WestEd report and Judge Lee’s consent order represent a milestone in the long road to ensure the State effectuates the fundamental right of every child in North Carolina to have the opportunity to receive a sound basic education in a public school. The study and the order also provide a solid roadmap to guide advocates and lawyers working to achieve comprehensive school finance reforms in other states across the nation.  

Instead of waiting for a court order, Governor Lee and the General Assembly could begin moving this session to adequately fund Tennessee public schools.

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Fundamentally Broken

Democratic legislators today unveiled a proposal to add $1.5 billion to the BEP — the state’s funding formula for public schools. Chalkbeat has more:


Democratic lawmakers called Wednesday for $1.5 billion more for public schools and an overhaul of an education funding formula that they called “fundamentally broken.”


Tennessee’s investment of $9,225 per student trails most states in the South and its level of school funding remains the elephant in the room for state government. A trial is expected this year in a 5-year-old lawsuit filed by school districts in Memphis and Nashville over the adequacy of state funding for students and schools. If successful, the case could mean sweeping changes for how much Tennessee spends on K-12 education.


For instance, classroom size requirements have forced districts to hire more than 9,000 teachers beyond what the BEP provides to pay for their salaries, according to a recent analysis presented to the BEP Review Committee.

Back in 2014, I wrote that the BEP formula was broken:


As I mentioned, the BEP includes an instructional component which provides districts funding for teacher salaries. The current instructional component sets a salary number of $40,447. The state then funds this component at 70%, leaving districts to pay 30% of the salary cost for that teacher.


There are a few problems with this. First, nearly every district in the state hires more teachers than the BEP formula generates. This is because students don’t arrive in neatly packaged groups of 20 or 25, and because districts choose to enhance their curriculum with AP courses, foreign language, physical education, and other programs. This add-ons are not fully contemplated by the BEP.


Next, the state sets the instructional component for teacher salary at $40,447. The average salary actually paid to Tennessee teachers is $50,355.  That’s slightly below the Southeastern average and lower than six of the eight states bordering Tennessee. In short, an average salary any lower would not even approach competitiveness with our neighbors.

While those are 2014 numbers, the disparity between the BEP salary allocation and the actual cost of a teacher still exists. It means the state is picking up far less than the 70% of instructional costs contemplated by the BEP. In fact, one possible path forward would be to fund teacher salaries through the BEP at a rate equal to the average actual cost of a teacher. That’s actually what Shelby County proposed back in 2014. The cost? $500 million.

Next, making up the 9000 teacher deficit — the gap between what the BEP generates and the number of teachers ACTUALLY hired by districts. That cost? Around $500 million.

Tennessee has both less teachers than we need AND we pay them less than we should. Addressing those two issues costs about $1 billion.

The other $500 million? Funding for counselors, nurses, and other critical support staff for schools.

Tennessee has the money — with years of record surpluses boosting the state’s coffers. Will the General Assembly elect to spend that money on an investment in our schools?

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$1.5 Billion

That’s how much Tennessee is under-funding public schools. Senators Jeff Yarbro of Nashville and Raumesh Akbari of Memphis take on the issue of school funding in a recent OpEd in the Tennessean. Here’s some of their argument:

The “fully funded” story line falls apart every time a teacher digs into their own bank account to purchase essential school supplies for their students. The claim unravels when teachers work second or even third jobs just to make ends meet. When we see children and teachers stacked into mobile trailers, describing schools as fully funded amounts to gaslighting. 

Here’s the truth: The state needs to put at least $1.5 billion more into public education each year just to meet the bare minimum. And even that investment may not be enough to get out of the bottom 10 states for school funding. 

Here’s MORE from Yarbro and Akbari

Their article follows a report from the Department of Education indicating that Tennessee is severely underfunding teaching positions in our state — to the tune of at least $500 million.

The article notes that Tennessee has had significant revenue surpluses in recent years. This means the state CAN fund public schools at an adequate level without raising state taxes. In fact, proper state funding of schools would mean local governments could keep taxes low. It would also relieve the burden that hits poorer districts the hardest.

Here are some likely responses:

  • The state just can’t promise that level of funding year after year
  • We need to try new experiments like expanding charters and moving forward with vouchers
  • Districts simply can’t absorb ALL that money at once
  • Our tax policy is critical to our business climate, so that comes first
  • We’re already getting results, why do we need more money?
  • We can’t just throw money at schools (we’d rather throw it at Amazon)

And here’s the reality: Tennessee consistently receives an “F” in both school funding and funding effort. We’re not even trying.

Yes, we have the money. Yes, our schools deserve it. Yes, WE CAN FUND SCHOOLS!

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9000

Tucked inside this Chalkbeat story on Hamilton County dropping its lawsuit over state funding of public schools is a note about just how inadequate the formula (the BEP) is.


In Tennessee, classroom size requirements have forced districts to hire more than 9,000 teachers beyond what the BEP provides to pay for their salaries, according to a statewide analysis presented by the Department of Education in December to the BEP Review Committee.

When looking at an average actual salary for Tennessee teachers of around $52,000, this means that local districts are responsible for $468 million in teacher salary expenses before benefits are included. That’s an unfunded mandate that easily exceeds half a billion dollars.

No one is suggesting we hire less teachers. In fact, many districts report needing additional teachers and other staff — such as nurses and counselors — to adequately serve their students.

However, this number does show that our state systematically underfunds public schools in a way not addressed by the current funding formula. It’s likely that when you combine the unfunded salary and benefits of teachers and the needs for programs like RTI2 with the proper staffing levels for nurses and counselors, you’d see a number exceeding $1 billion.

Let’s be clear: The state’s own Department of Education has provided information to the committee responsible for reviewing the state funding formula that indicates we’re at least $500 million behind where we should be in terms of current funding.

It’s also worth noting that these numbers don’t include any significant boost in pay for existing teachers.

In short: Tennessee is not properly funding schools.

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Revenue Up, Teacher Pay Down

Economic analysts are predicting a slowing of the growth that has driven the Tennessee economy in recent years, according to an article in the Tennessean. Those same analysts indicate tax revenue growth in the state over the past 10 years has been 7% when adjusted for inflation. Here’s more:

Most of Tennessee’s cities have reaped the benefits during this longest economic boom in history with double-digit jumps in employment and gross domestic product. 

However, Tennessee tax collections have only increased 7% in the past decade, when adjusted for inflation. 

“That’s not a lot of growth,” said William Fox, director of the Boyd Center for Business and Economic Research at the University of Tennessee, Knoxville. “Revenue growth would have been stronger, but we had a number of policy decisions to reduce revenues.”

An analysis provided by the Tennessee Education Association (TEA) indicates that average teacher pay in the state is actually down by 2.6% over the same time period when adjusted for inflation.

TEA also notes:

For the past five years Tennessee has been running huge revenue surpluses as education needs go unmet. Over this five-year span the state collected nearly $3 billion more in general fund revenue than it anticipated. Last year alone the state general fund had a $580 million surplus. These are millions that could have gone to classrooms. 

Not only is Tennessee bringing in more revenue than anticipated but also, as Fox notes, the state has used that good fortune to reduce future revenue. In fact, the state of Tennessee phased-out the inheritance tax (previously paid on estates worth $5 million or more) and is phasing out the Hall Income Tax on investment income. Here’s more on that from the Department of Revenue:

The Hall income tax is being phased out through December 31, 2020.  The tax is fully repealed beginning January 1, 2021.  See important notice 17-09 for more information.

Some estimates indicate completely eliminating the Hall Income Tax means foregoing $180 million in state revenue each year. That’s roughly the equivalent of foregoing a 7% raise in teacher pay each year.

So, let’s be clear about a few things: 1) State lawmakers prioritized tax cuts for wealthy Tennesseans over raising pay for teachers and 2) Even with these tax cuts, there is significant money available to fund teacher raises and 3) Now that the economy is slowing a bit, legislators are being encouraged to exercise caution — which likely means less money to invest in teacher pay and other public service needs.

Shorter: Tennessee policymakers have not made investing in teachers a priority.

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F

That’s the grade Tennessee gets from the Education Law Center’s latest report on school funding in the United States. To be clear, Tennessee earned an F in both funding level and funding effort. We earned a C in distribution of the paltry sum our state dedicates to schools.

Here’s how Education Law Center defines those terms:

  • Funding Level – the cost-adjusted, per-pupil revenue from state and local sources
  • Funding Distribution – the extent to which additional funds are distributed to school districts with high levels of student poverty
  • Funding Effort – the level of investment in K-12 public education as a percentage of state wealth (GDP) allocated to maintain and support the state school system

The report notes that Tennessee is 43rd in the nation in overall funding level and 47th in effort. The effort category is of particular interest because it indicates that Tennessee has significant room for improvement in terms of funding level. That is, there are untapped resources Tennessee is NOT using to fund schools.

Shorter: Funding schools is NOT a key policy priority in Tennessee.

Additional evidence for this can be found in graphics shared by Think Tennessee earlier this year:

Tennessee is (and has been) at or near the bottom in school funding and even in funding effort. That’s not changing. Instead, Governor Lee and his policy acolytes are diverting education dollars to voucher schemes and charter schools.

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