School Finance

Here’s what led to Indiana’s heated debate about sending federal dollars to struggling schools

PHOTO: Alan Petersime

Indiana education officials are cautiously moving forward with a plan to send millions of extra dollars to the state’s most struggling schools next year — but how much, and to which schools, caused a contentious debate.

The Indiana State Board of Education is planning to direct more than $6.1 million in federal school improvement funds to schools where the state has intervened because of poor academic performance. Called turnaround academies, they include schools in state takeover as well as those with state-approved partnerships with charter school operators and other intensive supports. The funding, though, is a 6 percent decrease — or nearly $400,000 less — than what was allocated last year.

There are still questions about whether the plan, created by state board staff members, will pass muster under a new federal education law known as the Every Student Succeeds Act, which classifies schools eligible for school improvement funding differently than Indiana has in the past.

Until federal officials sign-off on the funding plan, said state Superintendent Jennifer McCormick, the Indiana Department of Education, which is tasked with handling federal Title I funding, won’t be doling out the extra funds to struggling schools just yet.

“That’s the big unknown right now,” said McCormick, the lone state board member who voted against the plan. “We will submit everything to the feds. As far as the recommendations that came out, until I have it in writing from the feds, we’re on pause … You don’t want the department of education at the state level to willy-nilly distribute federal funds.”

The board’s decision to follow its staff’s recommendations regarding the funding, rather than the education department’s, followed heated arguments between state board staff members and department officials. The two groups couldn’t agree on how much funding the turnaround schools should get — or if some of the schools were eligible to get any extra money at all.

The department said that under the federal ESSA law, schools can only receive the turnaround funds if they are in the lowest 5 percent of all Title I schools, receive an F letter grade from the state or a have a graduation rate of 67 percent or less. Indiana, though, considered Title I schools with F grades and any schools under state intervention to be eligible. It isn’t clear if the federal education department will allow three schools that meet Indiana’s threshold but not ESSA’s to continue receiving the funds.

“I think there are legal questions to still be answered,” said Nathan Williamson, director of Title grants and support for the state.

Also complicating matters, the state received less money from the federal government to give out for school improvement efforts overall — $17.4 million instead of $18.5 million. Plus, more schools are likely to qualify for those grants this year, primarily due to the new way the federal government is requiring the state to classify low-performing schools coupled with a dip in graduation rate. The state will have a final number in October, but department officials said it was probably going to be about 100 more schools, in addition to around 200 last year.

Because of the funding crunch, education department officials wanted to reduce the money sent just to schools under state intervention to $4 million instead of $6.1 million. That way, they said, there would be more leftover so that other low-rated schools that need help — but don’t qualify for state intervention — can apply for potential funds.

“All of them need at least some support,” said Williamson. “Otherwise, we’ll get them some support (when it’s too late), and it’ll be four years later and students, in the meantime, are the ones who suffer.”

But state board staff members argued that Indiana made a commitment to the schools under state intervention, and keeping their funding more consistent with what it has been in the past is the board’s responsibility.

“These are schools that we’re responsible for,” said board member Tony Walker, who represents Northwest Indiana. “How do we deliver a better school back to the district when we’re taking $1 million out from the people running the schools?”

The biggest discrepancy in funding proposals was for Charter Schools USA, the charter company that stepped in to manage three Indianapolis Public Schools when they were taken over by the state in 2011. The state board, which hired CSUSA, suggested maintaining the funding at close to the same rate. But the department of education suggested slashing CSUSA’s funding by $1.8 million for the three schools, in order to direct funds to other struggling schools.

McCormick said the department’s suggestions were based primarily on the number of schools that operators were in charge of. CSUSA, for example, is responsible for three schools. Indianapolis Public Schools, in charge of seven, would have gotten $1.4 million under the department’s plan. (The state board plan has them at $1.2 million.)

State board staff said their recommendations were more aligned with what the turnaround schools had budgeted themselves.

new money

House budget draft sends more money to schools, but not specifically to teacher raises

PHOTO: Laura Faith Kebede/Chalkbeat

Despite months of heated debate, Indiana House Republicans are not setting aside extra dollars for meaningful teacher raises in their version of the state’s $14.5 billion education budget plan released Monday night.

Even though lawmakers are proposing preserving a controversial merit-based bonus pool and adding small amounts for teacher training programs, their budget draft would largely leave it up to school districts to dole out raises through increased overall funding.

The budget draft proposes increasing what Indiana spends on schools overall by $461 million — or 4.3 percent — through 2021, a little more than increases in years past. The basic per-student funding that all districts get would jump from $5,352 per student this year to $5,442 per student in 2020 and $5,549 per student in 2021. House lawmakers are also adding in a one-time payment of $150 million from state reserves that would pay down a pension liability for schools. But while lawmakers and Gov. Eric Holcomb have said that pension payment would free up about $70 million in schools’ budgets each year, the state likely wouldn’t require the cost-savings be passed along to teachers.

Although increasing teacher pay is a top goal for House Republicans, lawmakers have crafted bills that hinge on districts spending less money in areas such as administration or transportation rather than adding more money to school budgets and earmarking it for teacher salaries.

Their criticism of school spending has raised the ire of superintendents and educators who say they have little left to cut after years of increasing costs and state revenue that has barely kept pace with inflation.

But budget draft, which is expected to be presented to and voted on by the House Ways and Means Committee on Tuesday, doesn’t completely omit efforts to incentivize teachers to stick around. Unlike Holcomb’s budget proposal, House lawmakers are keeping in the current appropriation of $30 million per year for teacher bonuses.

The House budget draft would also set aside $1 million per year for a teacher residency pilot program and $5 million per year for schools that put in place career ladder programs that allow teachers to gain skills and opportunities without leaving the classroom.

Teacher advocacy groups, such as the Indiana State Teachers Association and Teach Plus, have been supportive of residency and career ladder programs, but the organizations have also called for more action this year to get dollars to teachers. Additionally, the ideas aren’t new — similar programs have been proposed in years past.

Calls for the hundreds of millions of dollars it would take to raise teacher salaries to be more in line with surrounding states will likely go unheeded for now as the state instead prioritizes other high-profile and expensive agencies, such as the Department of Child Services and Medicaid.

But while plans for major teacher pay raises appear to be on hold, House lawmakers are looking to boost funding in other areas of education to support some of the state’s most vulnerable students.

The budget draft would increase what the state must spend on preschool programs for students with disabilities from the current $2,750 per-student to $2,875 in 2020 and $3,000 in 2021 — the first such increase in more than 25 years.

House lawmakers are also proposing the state spend more money on students learning English as a new language, at $325 per student up from $300 per student now. While all schools with English learners would receive more money per student under this plan, the new budget draft removes a provision that had previously allocated extra dollars to schools with higher concentrations of English learners.

A 2017 calculation error and an uptick in interested schools meant state lawmakers did not budget enough money for schools with larger shares of English-learners in the last budget cycle, so they ended up getting far less than what the state had promised. But even the small increases were valuable, educators told Chalkbeat.

House lawmakers also suggested slashing funding for virtual programs run by traditional public school districts. Going forward, funding for both virtual charter schools and virtual schools within school districts would come in at 90 percent of what traditional schools receive from the state — now, only virtual charter schools are at the 90 percent level. It’s a marked change for House lawmakers, who in years past have asked that virtual charter school funding be increased to 100 percent.

The virtual funding proposal comes as lawmakers are considering bills that would add regulations for the troubled schools, where few students pass state exams or graduate.

The budget draft also includes:

  • $5 million per year added to school safety grants, totaling $19 million in 2020 and $24 million in 2021
  • Doubling grants for high-performing charter schools from $500 per student to $1,000 per student, at a cost of about $32 million over two years. The money is a way for charter schools to make up for not receiving local property tax dollars like district schools, lawmakers say.
  • $4 million per year more to expand the state’s private school voucher program to increase funding for certain families above the poverty line. Under the plan, a family of four making between $46,000 and $58,000 annually could receive a voucher for 70 percent of what public schools would have received in state funding for the student. Currently, those families receive a 50 percent voucher.
  • About $33 million over two years (up from about $25 million) for the state’s Tax Credit Scholarship program.

state of the state

Whitmer: Michigan needs ‘bold’ changes to fix schools — not just more money

Gov. Gretchen Whitmer delivers her first State of the State address on Tuesday, Feb. 12, 2019.

Michigan’s new governor called for “bold” changes to the way schools are funded — though she’s not saying what those changes could be.

Gov. Gretchen Whitmer, a Democrat who took office last month, devoted a large part of her first State of the State Address on Tuesday night decrying a “crisis” in education defined by alarming declines in childhood literacy.

Those declines can’t be blamed on students or schools, she said.

“Our students are not broken,” she said. “Our teachers are not broken. Our system has been broken … And greater investment alone won’t be enough.”

Whitmer offered no specifics about the reform she wants to see, but said she didn’t think incremental changes would be enough to fix Michigan schools.

“Phony fixes won’t solve the problems,” she said.

“A government that doesn’t work today can’t get the job done for tomorrow,” she said. “That ends now. As a state, we must make the bold choice so we can build a stronger Michigan.”

Whitmer is expected to propose her first state budget next month. She said that budget will “give our frontline educators the tools they need to address the literacy crisis.”

Her comments come amid a growing chorus from education and business leaders across the state who have called for funding schools differently, giving schools more money for students who cost more to educate, such as those who are learning English or living in poverty. That would be a departure from Michigan’s current system of giving schools largely the same amount per student, regardless of that student’s needs or background.

A report from Michigan State University last month found that Michigan had seen the largest education funding decline in the nation since 2002 and currently has one of the nation’s lowest funding levels for students with disabilities.

Changing school funding could pose a challenge to a Democrat working with a Republican-controlled legislature.

Whitmer’s hourlong speech was greeted warmly by Democrats who cheered her policy proposals but drew less support from people across the aisle.

At one point, she seemed concerned that only Democrats stood to applaud a line about “generations of leadership” failing Michigan children.

“I know Republicans love education, don’t you?” she asked.  

Whitmer invited Marla Williams, who teaches special education at Detroit’s Davison Elementary School, to the speech. She praised her for “tireless” advocacy that includes visiting children when they’re sick and doing their laundry.

“That’s because she — like so many Michigan educators — knows teaching is more than a career. It’s a calling,” Whitmer said. “I want to send a message to all the devoted educators across Michigan: You’re not failing us. We have been failing you.”

Detroit teacher Marla Williams waves during Michigan Gov. Gretchen Whitmer’s State of the State address.

The only specific education policy proposals Whitmer offered in her speech involved helping high school graduates attain career certificates or college degrees.

She proposed a scholarship program called MI Opportunity Scholarship that would guarantee two years of debt-free community college to qualified high school graduates.

Whitmer said this would make Michigan the first midwestern state to guarantee community college to all residents, but the impact would be minimal in the 15 cities — including Detroit, Flint, Grand Rapids, and Kalamazoo — that already offer free community college through Promise scholarships.

Whitmer’s proposed scholarship would also provide two years of tuition assistance to students seeking four-year degrees at nonprofit colleges and universities. She said the option would be available to all Michigan students who graduate with a B average.

The Detroit Promise scholarship pays the four-year tuition for students who earn a 3.0 grade point average and score above a 21 on the ACT, or a 1060 on the SAT.

Whitmer’s scholarship proposal bears some similarities to a popular Michigan scholarship called the Michigan Merit Award that gave scholarships to students who earned high scores on a state exam. That program was cut from the state budget over a decade ago.