From the Statehouse

Wealthiest schools thrive under new state budget while poor ones mostly get less

PHOTO: Scott Elliott
On the last day of the 2016 legislative session, lawmakers move ahead with plans to ditch ISTEP.

The effect of the new school funding formula approved by the Indiana legislature tonight can be summed up by the effect on the richest and poorest communities.

Of the 25 school districts with the highest family income, all of them will get more per-student state aid over the next two years.

But what about the 25 with the lowest family income? Just 12 of them get more money in 2016 and 2017 across the board — in overall state aid and per-student aid. The rest get less in one or both areas.

Sen. Greg Taylor, D-Indianapolis, said it’s just not a sustainable model, especially for districts like Indianapolis Public Schools.

“We have 30,000 kids in my school district who are going to be asked to perform at a high level with less money than their surrounding school districts,” Taylor said. “One day we are going to have to come back here and recognize that that’s not going to happen with the lack of investment we have put in our children.”

Poor districts, in many cases, were just glad they weren’t hit harder. They faired worse in earlier draft budgets. But across the state, even poor districts that got more money saw smaller gains compared to their wealthier counterparts.

For example, Indianapolis Public Schools would’ve seen a 6 percent loss in funding in the House’s plan, a 4.2 percent loss in the Senate plan, but just a 2.8 percent loss in the new draft — a cut of about $17 million over two years. The final version of the budget, which next heads to Gov. Mike Pence, was the only scenario that included a funding bump for IPS — a 0.4 percent gain in per-student aid over two years to $7,708 per-student from $7,678.

But the budget enrollment projections struck IPS officials as pessimistic, suggesting the district would lose about 1,000 students during the next two years. IPS enrollment has been mostly stable for the past three years, and there is reason to believe it will remain so or even grow.

The district also recently decided to partner with Charter Schools USA to add grade levels at Emma Donnan Middle School, with a goal of recruiting up to 300 new students to the school that IPS could count. CSUSA operates the middle school independently after the school was taken over by the state for low test scores in 2012.

If IPS is right and enrollment remains steady, district officials estimate it could save $10 million over two years, reducing the lost state aid to just $6.5 million.

Other Indianapolis schools fair better.

All Marion County school districts besides IPS get more money from the state under the budget plan, with Franklin Township and Perry Township leading with 6.7 percent increases in overall funding. Both districts’ boosts can be attributed in part to growing student populations.

Wealthy Central Indiana school districts did especially well. Hamilton Southeastern schools, for example, would jump 12.4 percent in state aid over two years, while Westfield-Washington would jump 11.5 percent. Carmel and Zionsville will see gains of 9.1 percent and 9.6 percent.

A comparison of two of the state’s poorest districts, East Chicago and Gary schools, shows their overall state aid being reduced by 2 percent and 6.7 percent, respectively. Sen. Karen Tallian, D-Portage, said the state shouldn’t underestimate urban schools — that only makes things worse in the future.

“We make this self-fulfilling paradigm that we assume that Indianapolis, Gary, — big city schools — are going to lose students, so we fund them with less money,” Tallian said. “That makes them less able to fund good education, and then more kids really do leave.”

Yet Republican supporters of the budget plan say all schools should be on more equal footing when it comes to state aid. They have argued the poorest districts should get more money than the richest, but that today they get too much extra.

House Ways and Means Committee Chairman Rep. Tim Brown, R-Crawfordsville, hailed the budget plan for giving a big boost to schools while meeting other priorities. He cited Pence’s call in January for 2015 to be an “education session” for the legislature.

“Mission accomplished,” he said. “Every child has an opportunity across the state of Indiana.”

Rep. Greg Porter, D-Indianapolis, likened Brown’s comments to President George W. Bush’s much-mocked premature proclamation of “mission accomplished” in the Iraq War.

“I can remember someone said ‘mission accomplished’ a few years ago on an aircraft carrier, and the mission was not accomplished,” Porter said. “From a Democratic perspective the mission is not accomplished.”

Porter said the new school funding formula would be “devastating” to many Indiana schools, especially those that serve the state’s most vulnerable children.

“There will be job losses in regards to this proposed budget,” he said. “We take a big blow. Hundreds of public school teachers will be terminated, and class sizes will be raised, mostly in our poorest schools.”

More dollars for English language learners were put into the funding formula, and special aid for children living in poverty will be calculated by a new method based on the number of students eligible for food stamps, welfare and foster care. The new draft also funds full-day Kindergarten students, who in the past received less aid, the same as all other students.

Although Taylor voted against the budget, which passed the Senate 40-9 and the House 69-30, he acknowledged that the outcome might’ve easily been different.

“They could’ve lost a lot more,” he said.

reconsidering takeover

Indiana lawmakers clear path for state to take over struggling districts, but scales back academic control of Muncie schools

PHOTO: Meghan Mangrum

A plan that would’ve allowed the state to take control over finances and academics in Gary and Muncie would now offer Muncie schools some relief from the threat of academic takeover.

Muncie educators and lawmakers were vocally opposed when their C-rated district was added into Senate Bill 567. The district is facing significant debt issues and feared potential state control of its academic programs as well as its finances. But a final version of the bill that passed with bipartisan support in the Senate and House late Friday scaled back the original plan, removing the academic piece. Financial control is still part of the deal.

“We’ve laid out a path that they may follow so that hopefully, in the next six months, they can right the ship,” said Sen. Luke Kenley, a Noblesville Republican and author of the bill. “I know the community of Muncie is not happy about this, but perhaps it is a wake up call at the right time to get things accomplished.”

Sen. Eddie Melton, a Democrat from Merrilville and the bill’s second author, agreed with the decision to adjust the plan for Muncie schools and encouraged lawmakers to continue these conversations about how to help struggling districts.

The bill next heads to Gov. Eric Holcomb for consideration to be signed into law.

The Gary school district would be on-track for the state to take over both academics and finances. A few provisions called for by local lawmakers were also added in, such as first considering a Gary or Lake County resident for the role of “emergency manager,” the person who’d take charge of the takeover.

Kenley said he specified in the compromise version of the bill that these measures are “not precedent for and may not be appropriate for addressing issues faced by other” districts. Kenley said he hopes the work he and Melton have done on the bill can help Gary schools and that the financial requirements placed on Muncie would be a “wake-up call.”

“This is not a pleasant task, but it’s one that needs to be done,” Kenley said of the Gary plan. “We have a long way to go and a lot to do.”

Lawmakers came up with the takeover strategy to solve long-standing financial troubles in Gary Community Schools, which has racked up $100 million in debt and dwindled to fewer than 6,000 students. The district has also been labeled an F since 2011, with seven schools considered failing.

The bill originally designated Gary and Muncie as “distressed political subdivisions” and moved them under the auspices of an emergency manager, fiscal management board and chief academic officer. In the new plan, Gary would remain a distressed political subdivision, but Muncie would be considered a “fiscally impaired” district, a less harsh category that wouldn’t require they have a chief academic officer but still places them under a stringent plan to shore up their finances and requires them to appoint an emergency manager.

Sen. Tim Lanane, a Democrat from Anderson, near Muncie, spoke on the floor and cautioned lawmakers not to be so quick to take such serious action unless it is fully warranted. Further labeling districts in this way, he said, could cause them to deteriorate further if more families decide to leave.

“What we’re doing here as a precedent is very, very important,” Lanane said. “A community’s reputation is at stake here.”

Compromise

Indiana budget deal would offer modest school funding increases plus a big fix for teacher bonuses

PHOTO: Alan Petersime

Many schools across Indiana could expect more money per student in the coming years and strong teachers at struggling schools would be likely to receive higher bonuses under a budget deal announced Friday.

House and Senate lawmakers have come to an agreement on how much money to send to Indiana schools over the next two years. The budget would increase total dollars for schools by about 3.3 percent from 2017 to 2019. Included within that: a 2.5 percent average increase for per-student funding to $6,709 in 2019, up from $6,540 this year. The budget is expected to go up for a final vote late Friday.

Overall, the budget plan would accomplish some of the key goals prioritized by Gov. Eric Holcomb, state Superintendent Jennifer McCormick and House Republicans. Those goals include increasing funding for the state’s preschool program, internet access for schools, and Advanced Placement exams that help students earn college credit while in high school.

Under the compromise, every district in Marion County would see its basic state aid and per-student funding increase, including Indianapolis Public Schools. (IPS would have seen cuts in the House plan, and the increases wound have been higher under the Senate plan.)

Suburban districts such as Carmel and Hamilton Southeastern would get sizable funding bumps as with the Senate plan. Districts losing enrollment, including East Chicago, could lose state money. But overall, many of the districts with some of the state’s poorest students stand to see increases. The Gary and Hammond districts, for example, would both see gains in per-student funding and overall.

Lawmakers also settled on a compromise about how to pay teachers.

Throughout the session, they waffled about whether to pay teachers more for their performance or for taking on additional work in their schools.

At first, the House cut the bonuses entirely and set aside $3 million for a “career pathways” program that would reward teachers who take on leadership roles in their schools. That was far less money than the $40 million the Senate wanted to put toward teacher bonuses, but some teachers said they would rather have the long-term opportunity to improve their teaching and leadership skills rather than a short-term bonus that might not go toward their salaries in the future.

“I want a leadership role, but I want to be a teacher — I don’t want to be an administrator,” said Allison Larty, a teacher in Noblesville and Teach Plus policy fellow. “(A bonus) is not going to be make an impact. The creation of career pathways will make an impact in the long run.”

But those dollars were eliminated in the Senate budget and the budget compromise. Rep. Tim Brown, chairman of the House Ways & Means Committee, said it came down to Senate negotiations. Senators were willing to spend more on preschool, Brown said, if they didn’t have to spend elsewhere — so career pathways dollars were cut.

But lawmakers did agree to change the state’s now $30 million teacher bonus program, which came under fire from educators across the state last year for rewarding effective teachers in high-performing, usually affluent schools at a higher level than similar teachers in lower-performing schools.

Going forward, the program will dole out money based on a policy created by each school district, rather than ISTEP scores. Under the plan, the state would distribute $30 per student to each district, which would then divvy up the local bonus pool among teachers rated “effective” or “highly effective.” Of that money, up to 50 percent can be added into a teacher’s base salary so that the teacher receives it in future years as well. And teachers in virtual schools can receive these bonuses — something the Senate had moved against.

The compromise plan keeps other requirements suggested by the Senate for virtual schools, mandating that they report information about class size, teacher-per-student ratios, and how often teachers have in-person meetings to the education department each year. Virtual schools would get 90 percent of the basic per-student funding amount from the state, as they do now. (The House’s plan would have increased that to 100 percent.)

The state’s voucher program would see its funding grow over the next two years under the compromise plan. Indiana is projected to spend more than $156 million by 2018 and $167 million by 2019 on the program, up from $146 million in 2017.

This new agreement no longer carves out the voucher money as a budget line item. Critics of making it a line item said it made the program vulnerable to cuts, but supporters applauded the change because they said it increased transparency around how much the state spends on vouchers but pulling it out of school-by-school calculations and placing it squarely in the budget itself.

The budget also includes:

  • $22 million per year for the state’s preschool program, up from about $12 million. $1 million per year is set aside for “in-home” online preschool programs.
  • About $32 million for English-language learners, up from about $20 million. The grant would be $250 per English-learner student in 2018 and $300 per student in 2019. Schools with higher concentrations of English learners would get additional funding.
  • $3 million per year to improve school internet access.
  • $5 million over two years in incentive grants for schools and districts that consolidate services.
  • $10.4 million for Advanced Placement tests and $4.1 million for PSAT tests.
  • $1 million to align initiatives in science, technology, engineering and math.
  • $500,000 per year for dual language immersion programs.
  • $26.3 million per year for testing and $12.3 million per year for remediation testing.
  • $15 million per year for the Charter and Innovation Network School Grant Program, which would support schools that want to become “innovation schools.”

Chalkbeat reporter Dylan Peers McCoy contributed to this story.