School Finance

Key lawmakers urge IPS to lease Broad Ripple high school to charter school

PHOTO: Scott Elliott

Several Indiana lawmakers, including two influential state representatives, are calling on Indianapolis Public Schools leaders to sell the Broad Ripple High School campus to Purdue Polytechnic High School.

In a letter to Superintendent Lewis Ferebee and the Indianapolis Public Schools Board sent Tuesday, nine lawmakers urged the district to quickly accept a verbal offer from Purdue Polytechnic to lease the building for up to $8 million.

The letter is the latest volley in a sustained campaign from Broad Ripple residents and local leaders to pressure the district to lease or sell the desirable building to a charter school. The district is instead considering steps that could eventually allow them sell the large property on the open market.

But lawmakers said the offer from Purdue Polytechnic is more lucrative and indicated they wouldn’t support allowing the district to sell the property to other buyers.

The letter from lawmakers described selling the property to Purdue Polytechnic as a “unique opportunity to capitalize on an immediate revenue opportunity while adhering to the letter and spirit of state law.”

It’s an important development because it was signed by House Speaker Brian Bosma and chairman of the House Education Committee Bob Behning, two elected officials whose support would be essential to changing a law that requires the district to first offer the building to charter schools for $1. Both are Republicans from Indianapolis.

Last year, the district lobbied for the law to be modified, and Behning initially included language in a bill to do so. When charter schools, including Purdue Polytechnic, expressed interest in the building, he withdrew the proposal.

The district announced last month that it planned to use the Broad Ripple building for operations over the next year, which will allow it to avoid placing the building on the unused property registry that would eventually make it available to charter operators.

The plan to continue using the building inspired pointed criticism from lawmakers, who described the move in the letter as an excuse not to lease the property to a charter school. Lawmakers hinted that the plan will not help win support for changing the law.

“It certainly would not be a good faith start to any effort to persuade the General Assembly to reconsider the charter facility law,” the letter said.

The legislature goes back in session in January.

The Indianapolis Public Schools Board said in the statement that they appreciate the interest from lawmakers in the future of the building.

“We believe our constituents would not want us to circumvent a public process and bypass due diligence,” the statement continued. “We will continue to move with urgency recognizing our commitment to maximize resources for student needs and minimize burdens on taxpayers.”

Indianapolis Public Schools is currently gathering community perspectives on reusing the property and analyzing the market. The district is also planning an open process for soliciting proposals and bids for the property. The district’s proposal would stretch the sale process over about 15 months, culminating in a decision in September 2019. Purdue Polytechnic plans to open a second campus in fall 2019, and leaders are looking to nail down a location.

Local funding

Aurora board to consider placing school tax hike on November ballot

A kindergarten teacher at Kenton Elementary in Aurora, Colorado helps a student practice saying and writing numbers on a Thursday afternoon in February 2017. (Photo by Yesenia Robles, Chalkbeat)

Seeking to boost student health and safety and raise teacher pay, Aurora school officials will consider asking voters to approve a $35 million tax plan in November.

The school board will hear its staff’s proposal for the proposed ballot measure Tuesday. The board may discuss the merits of the plan but likely would not decide whether to place it on the ballot until at least the following week.

Aurora voters in 2016 approved a bond request which allowed the district to take on $300 million in debt for facilities, including the replacement building for Mrachek Middle School, and building a new campus for a charter school from the DSST network.

But this year’s proposed tax request is for a mill levy override, which is ongoing local money that is collected from property taxes and has less limitations for its use.

Aurora officials are proposing to use the money, estimated to be $35 million in 2019, to expand staff and training for students’ mental health services, expanding after-school programs for elementary students, adding seat belts to school buses, and boosting pay “to recruit and retain high quality teachers.”

The estimated cost for homeowners would be $98.64 per year, or $8.22 per month, for each $100,000 of home value.

Based on previous discussions, current board members appear likely to support the recommendation.

During budget talks earlier this year, several board members said they were interested in prioritizing funding for increased mental health services. The district did allocate some money from the 2018-19 budget to expand services, described as the “most urgent,” and mostly for students with special needs, but officials had said that new dollars could be needed to do more.

The teacher pay component was written into the contract approved earlier this year between the district and the teachers union. If Aurora voters approved the tax measure, then the union and school district would reopen negotiations to redesign the way teachers are paid.

In crafting the recommendation, school district staff will explain findings from focus groups and polling. Based on polls conducted of 500 likely voters by Frederick Polls, 61 percent said in July they would favor a school tax hike.

The district’s presentation for the board will also note that outreach and polling indicate community support for teacher pay raises, student services and other items that a tax hike would fund.

On the ballot

Colorado voters will decide on $1.6 billion tax increase for education

Denver Post file photo

A $1.6 billion initiative to benefit Colorado schools, paid for by higher taxes on corporations and wealthier individuals, will appear on the ballot this November.

The Colorado Secretary of State’s Office said on Thursday that supporters of the measure had more than met the signature requirements.

Supporters of the effort, dubbed Great Schools, Thriving Communities, turned in 179,390 signatures last month, of which 130,022 were deemed valid. They needed just 98,492 valid signatures to get on the ballot. Under more stringent requirements adopted by voters in 2016, those signatures also needed to represent 2 percent of the registered voters in every state Senate district.

Initiative 93 represents the third attempt in seven years to raise money for education. Colorado’s Taxpayer’s Bill of Rights requires that voters approve any tax increase, and voters have twice before rejected statewide school funding measures by wide margins, most recently in 2013. To pass, Initiative 93 would need approval from 55 percent of voters.

The measure could share the ballot with a major tax increase for transportation, as well as a measure that would require the state to spend more on roads without raising taxes.

In addition to raising taxes for schools, Initiative 93 would fully fund all-day kindergarten and increase funding for preschool and for students with particular needs, such as those learning English and those who have disabilities. School districts would have broad discretion, though, about how to spend the new revenue.

Conservative critics of the measure say that’s one problem with it. In their view, it amounts to putting a lot more money into a system that has not significantly improved student achievement, without clear mechanisms to change that.

“The research is clear that simply adding more money to the same system will not lead to increased student achievement,” the conservative education reform advocacy group Ready Colorado said in an email to members. “Funding increases should be tied to policies that will improve educational outcomes.”

The group also criticized the measure for introducing a tiered tax system to replace Colorado’s flat income tax. That’s one key difference between this attempt and Amendment 66 in 2013. The last effort would have raised taxes on everyone, while this tax increase would affect those earning more than $150,000.

In contrast, the Colorado Children’s Campaign quickly issued a statement in support of the measure, calling it a “once-in-a-generation opportunity to create an education financing system that is more adequate, modern, equitable, and sustainable. This is the first step in removing structural barriers to opportunity and ensuring every chance for every child to succeed.”

Colorado ranks 28th among states in per-pupil spending, when all state, local, and federal dollars are combined, according to the most recent ranking from the National Education Association. However, school funding varies considerably around the state, and half of Colorado school districts, most of them in rural areas, operate on a four-day week because they can’t afford to be open five days.

Since the Great Recession, state lawmakers have held back $7.5 billion in money that would have otherwise gone to schools under a formula in the state constitution. The 2018-19 state budget included a 6.95 percent increase for K-12 education, but those who want to see more money for schools say it doesn’t begin to address years of underfunding.

Earlier this summer, Denver-based pollster Floyd Ciruli told Chalkbeat that statewide tax increases remain a tough sell in Colorado, but the prominence of education in the contentious Democratic primary for governor may have “primed” the electorate on this issue.

Some school districts are already talking about how they’ll spend the money. Denver Public Schools, which is currently engaged in negotiations with its teachers union, announced Thursday that it would put $36 million toward teacher pay if the tax increase passes, including raising starting pay and offering larger incentives to teachers who work in more challenging schools. The 2,300-student Sterling district on Colorado’s Eastern Plains also met recently with its teachers to discuss how to spend an estimated $3.7 million that district would get from the tax increase.

This isn’t just wishful thinking: It’s also part of marketing the tax increase to the public.

The tax measure calls for:

  • Raising the corporate income tax rate from 4.63 percent to 6 percent.
  • Raising the personal income tax rate from a flat 4.63 percent to between 5 percent and 8.25 percent for people earning more than $150,000. The highest tax rate would be paid by people earning $500,000 or more.
  • Setting the residential property assessment rate at 7 percent of market value for schools. That’s lower than it is now but higher than it is predicted to be in 2019 because current law has the unintended effect of gradually reducing the residential assessment rate.
  • Setting the non-residential property assessment rate at 24 percent of market value, less than the current 29 percent.

According to an initial fiscal analysis by the state, the average taxpayer earning more than $150,000 would pay an additional $519 a year, while those earning less would be unaffected. The average corporate taxpayer would pay an additional $11,085 a year. The change in property taxes would vary considerably around the state, but based on the average statewide school levy, many property owners would pay $28 more on each $100,000 of market value in 2019 than they otherwise would. Commercial property owners will see a decrease.