money matters

Why Gov. Hickenlooper wants to give some Colorado charter schools $5.5 million

Students at The New America School in Thornton during an English class. (Photo by Nic Garcia)

If Mike Epke, principal of the New America School in Thornton, had a larger budget, he would like to spend it on technical training and intervention programs for his students.

He would buy more grade-level and age appropriate books for the empty shelves in his school’s library, and provide his teachers with a modest raise. If he could really make the dollars stretch, he’d hire additional teacher aides to help students learning with disabilities.

“These are students who have not had all the opportunities other students have had,” the charter school principal said, describing his 400 high school students who are mostly Hispanic and come from low-income homes.

A $5.5 million budget request from Gov. John Hickenlooper, a Democrat, could help Epke make some of those dreams a reality.

The seven-figure ask is part of Hickenlooper’s proposed budget that he sent to lawmakers earlier this month. The money would go to state-approved charter schools in an effort to close a funding gap lawmakers tried to eliminate in a landmark funding bill passed in the waning days of the 2017 state legislative session.

Funding charter schools, which receive tax dollars but operate independently of the traditional school district system, is a contentious issue in many states. Charter schools in Colorado have enjoyed bipartisan support, but the 2017 debate over how to fund them hit on thorny issues, especially the state’s constitutional guarantee of local control of schools.

The legislation that ultimately passed, which had broad bipartisan support but faced fierce opposition from some Democrats, requires school districts by 2020 to equitably share voter-approved local tax increases — known as mill levy overrides — with the charter schools they approved.

The bill also created a system for lawmakers to send more money to charter schools, like New America in Thornton, that are governed by the state, rather than a local school district.

Unlike district-approved charter schools, which were always eligible to receive a portion of local tax increases, state-approved charter schools haven’t had access to that revenue.

Terry Croy Lewis, executive director of the Charter School Institute, or CSI, the state organization that approves charter schools, said it is critical lawmakers complete the work they started in 2017 by boosting funding to her schools.

“It’s a significant amount of money,” she said. “To not have that equity for our schools, it’s extremely concerning.”

CSI authorizes 41 different charters schools that enrolled nearly 17,000 students last school year. That’s comparable to both the Brighton and Thompson school districts, according to state data.

Hickenlooper’s request would be a small step toward closing the $18 million gap between state-approved charter schools and what district-run charter schools are projected to receive starting in 2020, CSI officials said.

“Gov. Hickenlooper believes that working to make school funding as fair as possible is important,” Jacque Montgomery, Hickenlooper’s spokeswoman, said in a statement. “This is the next step in making sure that is true for more children.”

If lawmakers approve Hickenlooper’s request, the New Legacy charter school in Aurora would receive about $580 more per student in the 2018-19 school year.

Jennifer Douglas, the school’s principal, said she would put that money toward teacher salaries and training — especially in the school’s early education center.

“As a small school, serving students with complex needs, it is challenging and we need to tap into every dollar we can,” she said.

The three-year old school in Aurora serves both teen mothers and their toddlers. Before the school opened, Douglas sent in her charter application to both the Aurora school board and CSI. Both approved her charter application, but because at the time her school would receive greater access to federal dollars through CSI, Douglas asked to be governed by the state.

Douglas said that her preferred solution to close the funding gap would be to see local tax increases follow students, regardless of school type or governance model. Until that day, she said, lawmakers must “ensure that schools have the resources they need to take care of the students in our state and give them the education they deserve.”

For Hickenlooper’s request to become a reality, it must first be approved by the legislature’s budget committee and then by both chambers. In a hyper-partisan election year, nothing is a guarantee, but it appears Hickenlooper’s proposal won’t face the same fight that the 2017 charter school funding bill encountered.

State Rep. Jovan Melton, an Aurora Democrat who helped lead the charge against the charter school funding bill, said he was likely going to support Hickenlooper’s proposal.

“You almost have to do it to be in alignment with the law,” Melton said. “I don’t think with a good conscience I could vote against it. I’m probably going to hold my nose and vote yes.”

Payday coming soon

Pension paybacks for Detroit district employees may show up in March  

Thousands of Detroit district school employees may reap the benefits of a lawsuit over pension funding as soon as March.

School employees who worked for Detroit’s main district between 2010 and 2011 can expect refund checks in their mailboxes soon, district leaders say, but making sure the money ends up in the right place will be difficult.

The reimbursements are the outcome of a controversial move during Gov. Jennifer Granholm’s administration to withhold additional money from employees’ paychecks to pay for retiree health care benefits.

The Michigan Supreme Court upheld a ruling by the state Court of Appeals that the withdrawals were unconstitutional. As a result, the state is giving back $550 million to school employees with interest. The amount employees get depends on what they were paid at the time, either 1.5 or 3 percent of their salary.

While every district in the state is charged with handling the refunds, the Detroit district has a larger burden, tasked with processing 13,416 refunds totaling $28.9 million.

Some of the employees no longer work for the district and do not have an updated address on file, the district said, so employees have been asked to update their information by Feb. 28.

Another challenge: The district is trying to fill five positions in the financial department, the area charged with issuing the checks.

Jeremy Vidito, the district’s chief financial officer, said the state did not allocate extra dollars for additional support staff to help with the task, so the department is working overtime to process the checks.

“It’s prioritizing,” he said. “So there are items that we are going to push back to make sure this happens. It’s also … asking people to do more with less.”

Despite the challenges, the district said it plans to begin mailing checks starting the third week of March.

 

heated discussion

Aurora budget talks devolve into charter school spat

Aurora Public Schools board of directors and Superintendent Rico Munn, center.

Aurora isn’t facing major budget cuts, and school board members don’t have any significant disagreements with their superintendent’s budget priorities, but that didn’t stop a school board meeting this week from turning into a heated back and forth. At issue: the impact of charter schools, how new board members got elected, and what that says about what the community wants.

Four of the seven school board members were elected in November as part of a union-supported slate, sometimes speaking against charter schools. Many have been wondering what changes the new board will bring for the fifth largest district in the state, and Tuesday’s discussion shined a light on some rising tensions about different priorities.

The budget discussion was the last agenda item for the school board. District staff and Superintendent Rico Munn intended for the school board to provide guidance on whether their proposed budget priorities were the right ones.

Union-backed members who were sworn in in November pressed the superintendent and staff to talk about how charter schools would impact the district’s long-term finances.

“What I’ve always said is that charter schools have a negative impact on our financial model,” Munn said.

Veteran board member Dan Jorgensen asked Munn to clarify his statement.

“I don’t say necessarily it’s negative to the district, I say it’s negative to our financial model,” Munn said. “I just think that’s a fact.”

Then the conversation turned to the community. Board member Monica Colbert, one of the longer-serving board members, said the district is changing whether or not the board agrees because the community is demanding something different. The community “came out in droves” asking for the DSST charter school, she said.

Board President Marques Ivey, who was elected in November, disagreed.

“Not (to) this group that was voted in, I guess,” Ivey said. “I have to look at it in that way as well.”

Jorgensen supported Colbert’s argument.

“I think often times our perspective is also skewed by who we engage with, of course,” Jorgensen said. “But we need to be mindful we are here to represent our whole community.”

He added that a small fraction of Aurora’s registered voters voted in the school board election, saying, “there’s no mandate here at this table.”

When Ivey tried to dispute the numbers, Jorgensen continued.

“It’s not a debate,” he said. “That’s not the point. No one sits here based on — I mean there’s a lot of factors that contributed, like half a million dollars behind us or this or that.”

November’s election included large spending from the union and from pro-reform groups. The union slate of board members raised less money on their individual campaigns, but had the most outside help from union spending, totaling more than $225,000.

“I’m not going to let you get away with that shot,” Ivey said, stopping Jorgensen.

Then another board member stepped in to change the subject and ask for a word change on Munn’s list of budget priorities.

The district isn’t expecting to make significant budget cuts this coming school year, but in order to pay for some new directives the school board would like to see, district staff must find places to shrink the budget to make room.

The proposed priorities include being able to attract and retain staff, addressing inequalities, and funding work around social, emotional and behavioral needs. More specifically, one of the changes the district is studying is whether they can afford to create a centralized language office to make it easier for families and staff to access translation and interpretation help. It was a change several parents and community members showed up to the meeting to ask for.

Board members did not have major objections to the superintendent’s proposed priorities.

During the self-evaluation period at the end of the meeting, board member Kevin Cox said things aren’t as bad as they look.

“We’re building cohesion despite what may seem like heated discussions,” Cox said.

Things could be worse, he added – he’s heard of other groups getting in fist fights.

Correction: A quote in this story was changed to remove an expletive after Chalkbeat reviewed a higher quality audio recording of the meeting.