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