funding fun

After heated debate, New York charter schools receive boost; school aid increases by $1.1 billion

PHOTO: Creative Commons, courtesy JasonParis

More than a week after the state’s budget deadline, lawmakers resolved their differences on education with a per-pupil increase in charter school funding and a $1.1 billion increase in school aid.

The funding tug-of-war between charters and traditional public schools boiled over into a contentious fight this year, which contributed to the most delayed budget on Governor Andrew Cuomo’s watch.

Charter schools were due a big funding boost if lawmakers did not act, a concern for the Democrat-controlled Assembly and teachers unions. Meanwhile, Cuomo warned that the state might not be able to handle a large increase in education spending with possible federal cuts on the horizon.

In the end, despite the long haul, the set of compromises seems to have left each party at least fairly satisfied. Charter schools will get extra funding and will have future aid linked to spending on traditional public schools. State aid for education, more broadly, will increase by more than $1 billion. The state’s teachers union called the budget “all in all, progress for our students.”

Here’s more on each of the big education items announced in this year’s budget:

Charter schools get funding boost, increases will be linked to those for public schools

The deal will increase funding for charter schools by $500 per pupil, and starting in the 2018-19 school year, “tuition” funding paid by the state will increase at the same rate as public school spending.

That compromise was struck, in part, in response to a charter school tuition formula that has been frozen since 2010-11 (though some years charter schools have received supplemental aid). The formula was set to unfreeze this year and would have resulted in a $1,500 increase in per-pupil spending, which Cuomo called a “windfall” for charter schools. (Charter school advocates say it is important to achieve equitable funding between traditional public schools and charters.)

One major problem with that plan, according to Mayor Bill de Blasio, was that the extra funding was set to come out of the city’s budget. (New York City’s Office of Management and Budget estimated it would cost the city about $200 million.)

The final result strikes a middle ground. The state will cover the extra $500 per pupil in the upcoming school year, but starting the next year, when charter school tuition increases mirror district school increases — and that money will come out of the city’s coffers.

There is another benefit for charter schools in the state’s budget: more funds for schools moving into private space. Under a 2014 law, new and expanding charter schools that don’t get public space are entitled to either 20 percent of their per-pupil tuition rate or their total rent. Now, that number has jumped to 30 percent.

Finally, Cuomo proposed lifting the cap on the number of charter schools allowed to open in New York City in January and instead having one big cap for the entire state. That proposal was rejected, leaving only 30 additional charter school slots for the city — and perhaps a battle for another year.

Most charter advocates are pleased with the outcome. New York City Charter School Center CEO James Merriman called it a “major victory.”

“This budget agreement was hard fought and we deeply appreciate the tenacious commitment of Governor Cuomo, Majority Leader Flanagan and Coalition Leader Klein to treat public charter school students fairly,” said Merriman said in a statement.

Success Academy CEO Eva Moskowitz disagreed with that assessment, saying the agreement “shortchanged” students in charter schools.

Total school aid spending a bit below proposals

School aid is set to increase by $1.1 billion, bringing total education spending to $25.8 billion.

That is slightly below expectations. It is close to what the governor originally proposed — a $1 billion increase — but it is less than what the Assembly or Senate proposed, $1.8 billion and $1.2 billion, respectively. It is also far below what state’s education policymaking body proposed at $2.1 billion.

Late in March, Cuomo suggested the threat of federal cuts could limit education spending, since he was not sure the budget could handle “dramatic increases” with federal uncertainty.

Foundation aid is here to stay

A major portion of education spending is allocated through a “foundation aid” formula, which is designed to help to needy students. The formula was created in response to the Campaign for Fiscal Equity lawsuit, which found some New York children did not have access to a sound basic education.

This year’s increase in foundation aid is $700 million, though advocates argue the total increase should be much higher, given the amount they say is owed under the lawsuit: $4.3 billion in all. The state’s Board of Regents outlined an “aggressive” plan to have the state provide that full amount over three years.

But advocates are relieved the “foundation aid” formula itself will remain intact. Cuomo’s original proposal included a controversial change to the formula that several advocates called a “repeal.” That’s off the table this year and an additional increase is expected next year, according to the New York State Council of School Superintendents Deputy Director Robert Lowry. But it remains to be seen whether the total amount of funding will be fully phased in over the years to come, especially since Cuomo’s office disagrees that the money is owed to schools.

“In a major victory, Governor Cuomo’s plan to repeal the foundation aid formula was defeated,” said Billy Easton, executive director of the Alliance for Quality Education, an advocacy group that fights for increased school funding. “The foundation aid increase is modest, but it is a significant improvement on the truly meager foundation aid proposal offered by the governor.”

School Finance

Why some IPS schools are facing big budget cuts, and others are mostly spared from the pain

PHOTO: Dylan Peers McCoy
School 107 is expected to lose about $230,000 next year, one of the larger cuts in the district.

At campuses across Indianapolis Public Schools, principals are grappling with a painful prospect: cutting hundreds of thousands of dollars from their school budgets. And that may be just the beginning.

The district is looking to cut about $21 million from its $269 million general fund budget for 2018-19, including about $8.9 million that will come from budgets for schools and certified staff such as teachers, according to a preliminary budget document. Officials declined to give school-by-school breakdowns until they are finalized later this summer.

The district initially planned to fill its budget gap by asking voters for nearly $1 billion in extra funding in May, but after the proposal received little support, the board first shrunk and then delayed the request. The cuts that begin next year could continue if the state’s largest district isn’t able to find other savings or win voter support for a referendum to increase taxes and school funding in November.

“We have the hope of a referendum,” said Weston Young, the district’s chief financial manager.

Chalkbeat has the details on what types of schools are expected to lose the most, what schools might cut, and what this means for the future of the district.

Big schools — including high schools — are taking the brunt of the cuts.

When it comes to cutting spending, large schools are carrying more of the burden, according to the preliminary documents. That includes middle and high schools, as well as some elementary schools. At some of the district’s smallest campuses, however, officials say budgets are already too lean for significant cuts.

Indianapolis Public Schools sends money to schools using a formula known as student-based allocation, which gives them funding based on how many students they enroll and student needs. But every school also has a baseline amount of money district officials believe they need to operate.

Small schools that serve wide grade spans, which might only have one class at each grade level, often get extra money to be sure they reach the minimum. In contrast, large campuses typically get enough from the per student formula to be above baseline. On a basic level, the district budget is based around the idea that it costs less per child to educate students in large, efficient schools.

Because of that approach, campuses that were already at minimum funding levels won’t see significant cuts, Young said. On the flip side, however, bigger campuses are shouldering a larger share of the cuts.

That could be bad news for the four high schools that will remain open in the fall. The schools will be among the largest campuses in the district, and they are expected to face significant cuts.

Last month, Superintendent Lewis Ferebee told Chalkbeat that cuts would not damage the effort to revamp high schools because, in addition to baseline funding, the schools will have donations from private partners such as Salesforce.

“Obviously, we won’t have all the resources that we’d like to have,” he said, “but we will be in a good position come August of 2018.”

Magnet schools and career and technical education get extra money — and extra cuts.

On top of their regular budgets, choice programs, such as Montessori, International Baccalaureate, and career and technical education, receive millions of extra dollars each year. That spending is also on the chopping block as the district cuts costs.

But because the district had already planned spending on those programs and some areas are easier to reduce than others, cuts won’t be spread evenly, said Aisha Humphries, director of budget and strategy for the district. In Montessori schools, for example, instructional assistants are integral to the model, she said. In order to cut that, the district would have to change the school model.

“When you do budget cuts, it may be that we want to cut equally and make everybody feel the pain equally,” Humphries said, “but you may not be able to do that.”

But there are other areas where the district can more easily cut back, Humphries said, such as by reducing the number of foreign languages offered in middle school.

Schools are giving up technology, teachers, and other staff.

As the district cuts budgets, principals ultimately decide what painful trade offs to make. Under the new budgeting approach the district rolled out this year, principals are given a set amount of money, and they have control over how they spend most it. If a principal wants to make class sizes slightly larger to pay for a school social worker, for example, they can. When it comes to budget cuts, the approach is the same.

“They are still in the driver’s seat,” Young said.

When schools got budgets earlier this year, they were built on the assumption that the district would win the May referendum. But principals knew that additional funding might not come through, and some planned for potential cuts when they created their budgets, Young said.

When principal Jeremy Baugh learned School 107 is expected to lose about $230,000 next year, he already had some potential cuts in mind. The school will cut back on new technology, instructional supplies, and professional development. Baugh also won’t go through with his plan to hire two new educators.

School 107, which enrolls just over 600 students, is expected to have one of the larger budget cuts in the district. But in part because the school is growing and will get more money for those new students, he doesn’t expect to cut current staff.

“We didn’t have to make significant cuts that were impacting staff right now,” Baugh said. “So we felt pretty lucky.”

School Finance

How much are Indianapolis teachers paid? Here are the highest and lowest paid districts in the city

PHOTO: Alan Petersime

As teachers across the country rally for more education funding and higher salaries, policymakers and the public are paying renewed attention to how much educators are paid.

Nationwide, stagnant teacher pay coupled with plentiful well-paying openings in other fields means that it’s even harder for principals and administrators to fill open positions. For some teachers, low pay is one reason they leave the classroom altogether, whether to become administrators or find another career.

In Indiana, cash-strapped districts often struggle to pay for raises even for their current staff — making it difficult to retain teachers. Educators in Indianapolis have lots of schools to choose from, and teachers can increase their pay by heading to nearby districts.

Educators in Indiana school districts made an average of about $48,743 last year, according to the Indiana Education Employment Relations Board. Pay is higher in districts in the state’s capitol, but it varies widely, with educators in the lowest paying district earning about $11,000 less on average than teachers in the top paid district. (The board only collects data on districts with teachers unions so it does not include average pay for teachers in charter schools.)

When teachers with particularly high demand skills switch jobs, they can also boost their earning by moving higher on the pay scale.

Average teacher pay in Marion County 2016-17

Source: Indiana Education Employment Relations Board collective bargaining report. (Image by Sam Park)

One reason why average pay might be higher in some districts than others is because the pay scale is higher. Starting pay in Beech Grove Schools, for example, is $38,000 per year. In Speedway Schools, a district with consistently high pay, teachers earn a minimum of $44,252.

Minimum teacher pay in Marion County 2016-17

Source: Indiana Education Employment Relations Board collective bargaining report. (Image by Sam Park)

The gap is even wider for experienced educators. In Indianapolis Public Schools, the pay scale sets the maximum salary at $72,740. That’s almost $14,000 less than the max pay for teachers in Speedway — $86,702. (Some teachers may earn more because they are still paid based on older pay scales with higher caps.)

Maximum teacher pay in Marion County 2016-17

Source: Indiana Education Employment Relations Board collective bargaining report. (Image by Sam Park)

But there’s another reason why some districts have lower average pay than others — they have more inexperienced teachers. Both Beech Grove and Indianapolis Public Schools have higher floors and ceiling for pay then they did in 2013-2014. Nonetheless, the average pay in those districts has declined, likely because they have more inexperienced teachers with lower salaries.

This year, both districts have relatively high numbers of teachers in their first year, according to data from the Indiana Department of Education. In Indianapolis Public Schools, nearly 10 percent of certified educators are new to the classroom. In both Beech Grove and Warren Township Schools, about 7 percent of educators are new.