Big money

Indiana schools credit rating at risk: Move could cost districts millions

A national credit rating agency is threatening to downgrade Indiana school debt, in a move that could costs districts millions of dollars.

In a statement issued yesterday, the national credit rating agency Standard & Poor’s said that it has placed a 90-day watch on the rating for loans to all Indiana school districts. If the state does not resolve S&P’s concerns, the ratings for school corporations across Indiana could be lowered, forcing districts to pay higher interest rates on debt.

Wayne Township Superintendent Jeff Butts said the watch from the S&P could cost the district more than $1 million in additional interest on bonds it plans to issue in the coming months.

“Anytime you are talking about credit, it’s always very concerning,” Butts said. “Being able to take advantage of lower interest rates … is the only thing really that allows us right now, with our current (tax) cap, to maintain the facilities that our community has invested in.”

The warning was sparked by a new interpretation from S&P of a state statute designed to ensure creditors receive payments on loans to districts. The law allows the state to divert aid meant for schools to pay debt if the districts do not make their debt payments. By ensuring that creditors are paid, the law improves credit ratings for districts across the state.

It is unclear whether the state has recently changed how it handles intercepting state aid. S&P said in a statement that the watch was issued because analysts have new concerns about the process.

“As part of a routine portfolio review, we learned that the Office of the Treasurer of State would administer the intercept of state aid under IC 20-48-1-11 differently than we had understood,” S&P said in the statement. “There is a possibility that Indiana could revise current procedures resulting in an intercept of state aid that provides for timely payment of debt service in full. … In the event such revisions are made in a timely manner, the rating could be affirmed.”

The Indiana Office of Management and Budget Director Micah Vincent said in a statement that the state is working to ensure the watch is removed.

“We are looking at possible solutions to address S&P’s newfound concerns,” Vincent said. “It is our goal to ensure that S&P removes the Indiana State Aid Intercept rating from CreditWatch and affirms the intercept program’s excellent credit rating, which supports Indiana’s schools and taxpayers.”

early running

Denver school board race opens up as Rosemary Rodriguez announces she won’t seek re-election

PHOTO: Nicholas Garcia
Board member Rosemary Rodriguez speaks at Abraham Lincoln High (Chalkbeat file)

Denver school board member Rosemary Rodriguez said Wednesday that she is not running for re-election, putting her southwest Denver seat up for grabs in what will likely be a contentious school board campaign this fall with control of the board at stake.

Rodriguez told Chalkbeat she is retiring from her job as senior advisor to Democratic U.S. Senator Michael Bennet and plans to sell her home and buy a smaller one that belonged to her grandparents.

That home is not in her school board district, District 2, but in the district represented by board member Lisa Flores. With the exception of at-large members, Denver school board members must live in the districts they represent.

“If it weren’t the case, I would still be running,” Rodriguez said.

During her four-year tenure, Rodriguez worked with community groups and others to spotlight student achievement in southwest Denver, leading to new schools and better transportation.

Former Denver Public Schools teacher and Denver native Angela Cobian announced Wednesday that she is running for the seat. Rodriguez has endorsed Cobian, a political newcomer who works for the nonprofit Leadership for Educational Equity, which helps Teach for America members and alumni get involved in politics and advocacy.

All seven current board members support Denver’s nationally known brand of education reform, which includes a “portfolio” of traditional district-run, charter, magnet and innovation schools.

With four of the the board’s seats up for grabs this November, the campaign presents an opportunity for opponents of those reforms to again try to get a voice on the board.

The field is still very much taking shape. The most competitive race so far involves District 4 in northeast Denver. Incumbent Rachele Espiritu, who was appointed to the seat last year, announced her campaign earlier this month. The board chose Espiritu after its initial pick, MiDian Holmes, withdrew after a child abuse case came to light and she was not forthcoming with all the details.

Also filing paperwork to run in District 4 is Jennifer Bacon, who was a finalist in the process that led to the board picking Espiritu. Auontai “Tay” Anderson, the student body president of Manual High School, declared his candidacy for the northeast Denver seat in April.

Incumbents Mike Johnson and Barbara O’Brien have not yet filed election paperwork with the state. Two candidates have declared for O’Brien’s at-large seat: Julie Banuelos and Jo Ann Fujioka.

equity issues

A report found black students and teachers in Denver face inequities. Can these 11 recommendations make a difference?

PHOTO: RJ Sangosti/Denver Post
A student at Ashley Elementary School in Denver.

Helping African-American families understand their children’s school choices, offering signing bonuses to prospective black teachers and making student discipline data count in school ratings are among the recommendations of a task force that tackled inequities faced by African-American students and educators in Denver.

“Once we were able to get past some of the hurts that people experienced, once we were able to come up with the root causes and understand this process is going to be uncomfortable, we were able to come together in a way to do the work we need to do,” Allen Smith, the associate chief of Denver Public Schools’ Culture, Equity and Leadership Team, said Wednesday at an event to reveal the recommendations and solicit feedback at Bruce Randolph School on the city’s northeast side.

The DPS African-American Equity Task Force, which was comprised of more than 100 members, made 11 recommendations in all. (Read them in full below.) They include directing the district to:

— Design a tool to assist African-American families in understanding which schools best match their students’ needs and interests, and “generate personalized recommendations.”

— Require every school to create an Equity Plan “designed to strengthen relationships between African-Americans and schools” through strategies such as home visits by teachers.

— Ensure curriculum is culturally responsive to African-American students.

— Develop a plan to increase black students’ access to “high value learning opportunities,” including the district’s gifted and talented program, and concurrent enrollment courses.

— Create a human resources task force that would, among other things, ensure African-American job candidates receive equal consideration and once hired, equal pay.

— Incentivize black educators to come to DPS and stay, and create a pipeline program to encourage black students “to return to serve their own communities.”

The recommendations do not include a price tag. Nor have they “been evaluated for legal compliance,” according to the document.

The task force was created in the wake of a critical report documenting the concerns of 70 African-American Denver educators. The educators said black teachers feel isolated and passed-over for promotions. Black students are being left behind academically, the teachers said, in part because of low expectations and harsh discipline by teachers who are not black.

Thirteen percent of the district’s approximately 92,000 students are African-American. Last year, just 4 percent of DPS teachers were black. Seventy-four percent were white.

District statistics show that the percentages of African-American students who are proficient in English and math, as measured by state tests, trail district averages. Only a third of black students graduated college-ready last year, which is lower than white or Latino students.

Meanwhile, more black students are identified as needing special education. And African-American students have the highest suspension rate in the district.

The district has taken some steps to address the inequities. DPS is part of a multi-year campaign along with the mayor’s office and charter school operators to recruit more than 70 teachers of color and 10 school leaders of color to Denver.

Superintendent Tom Boasberg noted at Wednesday’s event that DPS is starting to see results; one-quarter of new principals hired to lead schools next year are African-American, he said.

For the first time this year, the district required its new teachers to take a previously optional three-hour course on culturally responsive teaching in which they were asked to share fears about working with students and families from different backgrounds.

DPS also added a new measure this year to its color-coded school rating system that takes into account how well schools are educating traditionally underserved students. However, the district has since tweaked its “equity indicator” in response to concerns from school leaders, and the task force recommended even more changes. In addition to looking at student test scores, it is calling for including discipline data, as well as teacher hiring, retention and promotion data.

And the district has announced plans to eliminate out-of-school suspensions and expulsions for preschool through third-grade students except in the most serious incidents.

The set of 11 recommendations includes one overarching one: the creation of an African-American Equity Team to ensure the district executes the ideas it adopts.

“A deep thank you for your work and a deep thank you in advance for the work we will be doing together,” Boasberg said.

The recommendations are scheduled to be presented to the Denver school board in June.

Read the full recommendations below.