School Finance

Indiana superintendents praise funding hike but worry about poor schools

PHOTO: Hayleigh Colombo
Indiana House Speaker Brian Bosma, House Ways and Means Committee Chairman Tim Brown, Indianapolis Public Schools Superintendent Lewis Ferebee and Northwest Allen County Schools Superintendent Chris Himsel participated in a January forum on school funding organized by Chalkbeat.

Indiana superintendents have a message for state budget-makers: All schools need more funding, but it can’t come at the expense of the state’s poorest districts.

The Indiana Senate’s school funding subcommittee, chaired by Sen. Ryan Mishler, R-Bremen, today heard testimony on proposed changes to school funding, including comments from 11 superintendents who testified on the Indiana House’s proposed budget. The budget, House Bill 1001, would give K-12 schools statewide a 4.7 percent increase through 2017. Overall, state dollars for public schools will increase by $469 million to a record high of $6.9 billion.

That record increase would be accompanied by major changes, however. The plan includes adding more money to the basic tuition amount for each student, which benefits all schools in the state. But extra money earmarked to help poor students who often start school academically behind their peers, has been changed.

Going forward, just students from families that are poor enough to qualify for free lunch will be counted in for extra state aid. In the past, the poverty aid has also been calculated to provide extra money for students who are slightly less poor but still qualify for special assistance, such as free textbooks or reduced-price lunch. For districts like Indianapolis Public Schools, where a large majority of students come from families who are poor enough to qualify for free and reduced-price lunch, this could mean huge losses in state aid.

“We believe these reductions are too volatile, the pace of change is too fast, for any corporation to either gain or lose a significant amount of funding over a short period of time,” Indianapolis Public Schools Superintendent Lewis Ferebee said.

To qualify for the lunch program this year, children from a family of four must have annual income of less than $43,500. Last year, about 78 percent of IPS students came from families that were poor enough to qualify for free lunch, but that number is expected to drop to about 71 percent this year. Ferebee said that shouldn’t be interpreted to mean that IPS has fewer students in poverty — rather, families are not as readily applying for the free lunch program. This year IPS got a federal grant money that provides free lunch to all students regardless of income, reducing urgency for families to fill out paperwork. Their kids will get free lunch whether they officially enroll or not.

Kathy Friend, the chief financial officer of Fort Wayne schools who spoke on behalf of the Indiana Urban Schools Association, said all schools will see some reduction in dollars to support poor children, but that the state’s poorest districts will be hit the hardest. As a result, more basic state aid dollars intended to support all children will need to be channeled toward poor kids to make up for the lost poverty aid in districts with more poor children.

Much of this year’s legislative debate around school funding has centered on the disparity between the state’s lowest-funded districts, often those with higher state test scores, and the highest-funded districts, which tend to be high poverty districts that also tend to have more students with special needs and those learning English as a second language.

Chris Himsel, superintendent in Northwest Allen County Schools in suburban Fort Wayne and an advocate for increased aid for suburban districts, said the trade-off between increased basic state aid for all students while also giving less extra money for poor students is unacceptable. His district comes out slightly ahead based on the proposed changes to the funding formula, but that still isn’t enough, he said. Northwest Allen shouldn’t gain if it means others must lose, he said.

“All of our kids throughout our state need more funding,” Himsel said. “To do the things that we are being asked to do with what we currently receive is not enough … I am interested in helping our kids. I am not interested in destroying other kids to do it.”

Superintendents from districts as diverse as East Chicago, Batesville, Greene County, Elkhart and Zionsville said they simply can’t make ends meet, even with the proposed increase in basic state aid. The state needs to do more, they said, whether that means even more basic state aid for all schools, reducing poverty aid more slowly over time or sticking with the current method for calculating poverty aid.

East Chicago superintendent Youssef Yomtoob implored lawmakers to at least slow the reduction in poverty aid so it won’t hit as hard right away.

“Grandfather us in,” Yomtoob said. “I don’t want more money, but do not take $4 million. That’s over 20 percent of my budget. I can’t live like that.”

Superintendents from districts where enrollment is growing, such as Hamilton Southeastern and Carmel, were generally more supportive of the proposed budget, which tends to be favorable to districts taking in more students. Allen Bourff, superintendent at Hamilton Southeastern, said he understands there are many concerns for urban schools, but the problems his district is facing are valid, too.

“I applaud the work of the House members to craft a bill that would address some of the issues that we have faced in Hamilton Southeastern over the years,” Bourff said.

The budget will again go before the Senate Appropriations Committee, chaired by Sen. Luke Kenley, R-Noblesville, on April 9.

More money

‘We need the funding, and so do our kids.’ Colorado teachers take to the streets for Amendment 73

PHOTO: Erica Meltzer
Denver teachers line Colfax Avenue to urge voters to approve Amendment 73, a tax increase to raise money for education.

Waving “Yes on Amendment 73” signs, Denver teachers formed red-shirted clusters along Colfax Avenue Friday afternoon.

“We’re just trying to get people to support teachers,” said Danette Slater, an elementary teacher at Academia Ana Marie Sandoval in northwest Denver. “We need the funding, and so do our kids.”

Amendment 73 would raise Colorado’s corporate tax rate and the personal income tax rate on people earning more than $150,000 a year to generate $1.6 billion a year in additional funding for education. The state’s Taxpayer’s Bill of Rights requires that voters approve any proposed tax increase. Two previous attempts to raise taxes for education have failed.

“Girls Just Wanna Have Funding,” said Slater’s handmade sign.

The Denver demonstration was one of 27 teacher actions around the state, as the Colorado Education Association, the state’s largest teachers union, prepares for a major push during October to rally support for Amendment 73. Organizers with the Denver Classroom Teachers Association had hoped for a larger turnout, with as many as a thousand teachers lining Colfax from East High School to the Colorado Education Association headquarters at Grant Street and Colfax near the Capitol. Instead, a few hundred teachers formed a series of small groups at key intersections.

Denver Public Schools may have dampened turnout with a memo to building principals saying that teachers who wanted to leave school early to engage in advocacy must take unpaid leave and giving principals the authority to deny leave and discipline any teachers who left anyway.

The small numbers did not dampen the enthusiasm of the teachers and community members who were demonstrating.

“It’s a Friday afternoon at the end of a long week,” said M.J. Jobe, a parent volunteer in the Cherry Creek district who was demonstrating with her husband Jarrad Jobe, a Denver Public Schools teacher. “Everyone is here because they care about kids and care about education. If we vote no, what kind of message are we sending to our kids?”

Passing drivers honked their support, and the teachers cheered in response.

Luke Ragland of the conservative education advocacy group Ready Colorado opposes Amendment 73. He said the tax measure has been sold to teachers as a way to raise pay, but there’s no guarantee that the money will reach teachers’ paychecks or improve educational outcomes for students.

Ragland points to trends over the last several decades in which teacher salaries have decreased when adjusted for inflation, even as more money has gone to schools. Administrative costs eat up a larger share of school budgets, something Ragland believes is driven as much or more by growing regulation at the federal and state level than by high administrative salaries.

“The trend is bad, and just adding more money is not going to change those trends,” he said. “The problem is real, but the solution that Amendment 73 offers is not.”

PHOTO: Aurora Education Association
Aurora teachers demonstrate in support of Amendment 73.

While education funding has increased in recent years with the strong economy, Colorado lawmakers have withheld roughly $7.5 billion from schools since the Great Recession. Colorado currently ranks 28th among U.S. states in per-pupil funding and 31st in the country for teacher pay, but the competitiveness of its teacher salaries – the difference between teacher pay and the wages earned by other professionals with similar levels of education – is among the worst in the nation.

Like many Denver teachers, Jarrad Jobe, a science teacher at Denver Center for International Studies Baker, has a lot of unanswered questions about administrative spending in the district. (Denver administrators, for their part, have tried to reassure the public with new online budget tools.) He has 35 students in each class, and his classroom doesn’t have a proper whiteboard. Jobe believes too much money gets spent on “middle management,” but he also believes the entire pie needs to get larger. Everything has gotten more expensive, and school funding hasn’t kept pace, he said.

M.J. Jobe has a close eye on Cherry Creek’s finances from her seat on a parent advisory committee. Jobe believes the wealthier suburban district is well run and transparent about its spending, and its teachers are among the highest paid in the Denver metro area. But teachers don’t have money for field trips, and the band program exists only due to the private fundraising efforts of parents, she said.

Dakota Prosch, who works with Slater at Sandoval, said she’s relying on promises made by the Denver school board that teacher pay will be a top priority if Amendment 73 passes. Opponents of the measure also fear higher taxes will hurt Colorado’s economy, but Prosch said struggling schools and teachers looking for better opportunities elsewhere will also hurt the economy.

“You can’t have good schools without good teachers, and you can’t have good teachers when across the border you can earn $10,000 more and be in a low-cost area,” she said. Teachers in Wyoming have much higher average pay than their colleagues in Colorado.

Standing nearby, Becka Hendricks said the idea that new revenue will go to ever-increasing administrative costs is one of her fears, even as she demonstrates in favor of Amendment 73.

But at the end of the day, she believes schools need more money. Hendricks, who teaches math to students aged 17 to 21 at Emily Griffith High School, said too many schools don’t even have basic materials or the support staff that students need to be successful. Class sizes are too large, and teacher salaries are too low.

“When we fight for these things with the district, the district’s answer over and over again is, ‘We don’t have the money,’” she said. “If this passes, we can say, ‘We know you have the money.’”

where the money goes

The fight for teacher raises and 4 other takeaways from our IPS referendum forum

PHOTO: Dylan Peers McCoy/Chalkbeat
Panelists at the Chalkbeat forum on the IPS tax referendums.

Indianapolis Public Schools teacher Rosa Vazquez had a point to make, and at its core, it was simple: “We need more.”

“It’s difficult when we attempt to send a student to go have a conversation with a counselor and the counselor is too busy, overwhelmed,” said Vazquez, an English as a new language teacher at Arsenal Technical High School, which she said is struggling to serve students who transferred in when the district closed three other campuses last year. “We need more counselors. Our teachers need smaller class sizes.”

Vazquez was one of five panelists gathered Thursday for a forum hosted by Chalkbeat, WFYI, the Indianapolis Recorder, and the Indianapolis Public Library to discuss two tax measures on the ballot in November aimed at raising more money for the school system. One referendum would raise $220 million to pay for operating expenses. The second measure would raise $52 million for building improvements.

The panel also featured IPS Board President Michael O’Connor, IPS chief financial officer Weston Young, Indy Chamber chief policy officer Mark Fisher, and Purdue University professor Larry DeBoer.

The success or failure of the referendums will have far-reaching implications for the cash-strapped district for years to come, reshaping the education of more than 30,000 of students.

We have five takeaways from the panel.

  1. Boosting teacher pay is the central issue

Teacher pay is the focal point of the referendum to raise operating funds for Indianapolis Public Schools. On the panel, nearly everyone agreed that the extra money needs to be used to increase teacher salaries.

Vazquez said her colleagues often have to work second jobs to support their families. Low pay also leads many teachers to leave for other districts, and students ultimately suffer from high turnover, she said.

“Our students are important,” Vazquez added. “They do matter. They do deserve a chance. And being an inner city should not be a downfall for them.”

Many teachers in the district still make less because of pay freezes during the recession, and to make up for the difference, Vazquez said the district may need to give dramatic raises of 10 percent or more.

Young also pointed to one reason pay may be lower in Indianapolis Public Schools than in many of the surrounding school systems. Most of the districts in Marion County have successfully passed referendums to increase school funding in recent years, he said.

“It’s hard to compete for wages and retain high quality teachers when everybody around you has increased their cash flow and you haven’t,” he added.

O’Connor said the board is aiming to ensure its teachers are among the highest paid in Indiana. He hopes the referendum funding gets the district close to that point. “We’re committed to making sure the money generated goes to teacher salaries,” he said.

  1. There are areas of disagreement

How much money to send to innovation schools, which are part of the district but run by outside nonprofit and charter operators, was the most contentious issue at the forum.

The teachers in those schools are not employed by the district, so they would not automatically benefit from a proposed pay raise funded by the referendum. But the district will send some of the money raised to innovation network schools, and many of those schools will also benefit because they receive services, such as special education, from the district.

If the district wins support for the tax measures “traditional public schools with this referendum should be priority,” said Vazquez.

O’Connor acknowledged that the district has limited resources to give schools. He argued that innovation schools are a good strategy that is improving outcomes for students. And, he said, the district is still fully committed to traditional schools in the district.

“We’ll continue to make those investments at the teacher level and at the classroom level,” O’Connor said.

  1. Even if the referendum passes, the district is still expected to make huge cuts

The $272 million in additional funding the district seeks is substantially lower than the district’s initial requests, which amounted to nearly $1 billion combined. The lower request is the culmination of months of wrangling between the district and Indy Chamber.

The business group became deeply involved in the effort because its members had concerns about the initial request, Fisher said. “There were concerns about the viability of the referendum — whether it would actually pass,” he said. “We did not want to see the referendum fail.”

In part, the district was able to lower its request by making more optimistic projections about future funding, Young said. But for the new, reduced request to work — and for the district to find money for substantial pay raises — Indianapolis Public Schools must make drastic cuts to its expenses. Those could include closing schools and relying on public transportation for high schoolers instead of yellow buses.

Ultimately, the goal of the chamber’s proposal is to improve the quality of the district and set it on a “sustainable fiscal path,” said Fisher. “We can’t continue to have this manage by crisis.”

  1. Safety is top of mind

Much of the discussion was devoted to the operating referendum, which will help pay for daily expenses such as salaries. But the district is also pursuing a $52 million capital referendum that will be used to pay for building improvements, primarily designed to make schools safer.

In the wake of school shootings like the one in Noblesville, school districts are turning to referendums to raise money for safety improvements, DeBoer said.

“Every time we have an event like in Noblesville it alerts people to the need for safety, and it’s the world that we live in,” he said.

In Indianapolis Public Schools, the referendum would pay for safety improvements including secure entrances, new fire safety systems, and improved emergency communication systems.

Because many of the district’s buildings are more than half a century old, retrofitting is more expensive but it is still essential, said O’Connor. “The vast majority of our capital investment is in safety,” he said.

  1. Tax referendums may be the new normal for Central Indiana

Hoosier schools have almost exclusively relied on state funding in recent years. State lawmakers capped how much local governments could collect in property taxes in 2010, and those funds can now only go toward things like construction or transportation — not salaries. But voters can decide to override those caps in their communities.

Across Indiana, 60 percent of school districts have never tried a referendum, said DeBoer, who studies referendums. In Marion County and the surrounding suburbs, however, property tax referendums have become the new normal.

“The passage rates have been increasing over the last 10 years,” he said. All the referendums on the ballot in May passed. The economy is improving, district campaigns are improving, and “perhaps the public is coming to accept that is part of … the normal way we fund schools,” he added.

Watch the full forum