pros and cons of con con

What does your ‘Con Con’ vote mean for education? Here’s what you need to know.

PHOTO: Stephanie Snyder
United Federation of Teachers President Michael Mulgrew

New York City’s teachers union sent out a quiz about the state’s upcoming vote on a constitutional convention asking: Will the convention likely result in “a lifetime supply of pizza” or “the loss of rights and benefits that working families depend on?”

The question is meant to be sarcastic and the answer that it will rob workers of benefits  is designed to paint an unflattering picture of the convention. The quiz is one aspect of a hard-fought union campaign against Tuesday’s ballot proposal that could open the state’s constitution to any and all amendments.

Proponents of a convention nicknamed “Con Con”  argue it presents a rare chance to make much-needed changes to the state’s constitution, which could include adding language to boost school funding. Besides education, Con Con supporters argue it could invite revisions to the very way the state is governed, including ethics reform and major changes to the judiciary, as well as address social issues like abortion protections.

However, opponents argue the convention could be hijacked by conservatives who are hostile to labor protections. Since convention delegates would be selected from Republican-leaning State Senate districts, the teacher union reasons that a convention could erode teachers’ rights and send money to private schools.

Here’s what you need to know about how Con Con could affect New York state education:

Why is New York City’s teachers union so against this?

Teachers union representatives are worried that a constitutional convention could put pensions and workers’ rights at risk. New York state’s constitution enshrines the rights of workers to collectively bargain and organize, said United Federation of Teachers President Michael Mulgrew. It also protects pensions, which union officials fear could be on the chopping block during a convention, he said.

“I think the state has a lot to lose tomorrow,” Mulgrew said. “It would be a huge mistake for New York State to have this process.”  

Are there other education issues at stake?

Some advocates fear a constitutional convention would allow money to flow to private schools. The state constitution contains an amendment prohibiting the use of public money to fund religions schools, wrote Donna Lieberman, executive director of the NYCLU, in an op-ed opposing the convention. The last time New York held a convention in 1967, a proposal that would have allowed public funds to cover religious schools gathered steam, but eventually proved too controversial.

Emboldened by U.S. Education Secretary Betsy DeVos, who champions religious schools, Lieberman fears supporters of religious education could again try to undo this amendment, which she said would strip funds from public education.

Are there potential education benefits?

Instead of eroding school funding, a constitutional convention could ensure it flows directly into school budgets, said David Bloomfield, a professor of education, law, and public policy at Brooklyn College and the CUNY Graduate Center.

More than 10 years after the Campaign for Fiscal Equity lawsuit settlement, which ruled the state had to allocate more money to schools in order to provide students with a “sound basic education,” advocates say schools are still owed billions of dollars. (The governor disputes that.) Bloomfield said that without a radical change like a constitutional convention, “there is no hope” for school funding reform.

“The current political apparatus is fixed for incumbents and crooks,” he said.

Future of Schools

Here’s how new federal rules could impact Indiana’s $14M private school tax credit scholarship program

PHOTO: Dylan Peers McCoy
Students at the Oaks Academy in Indianapolis, a private school, play during music practice. The Oaks accepts tax credit scholarships.

Some school choice advocates are uneasy that new federal tax rules could be detrimental to Indiana’s $14 million tax credit scholarship program.

In August, the U.S. Department of the Treasury released rules clarifying new tax law that limited how much state and local taxes an individuals could deduct from their federal taxes. Some fear the changes might discourage donors from contributing to charities like the state’s tax credit scholarship program, in which individuals and businesses can give money to fund students’ private school tuition in exchange for a tax credit from the state.

“Our primary concern is to make sure that the families who are relying on these scholarships, that they can continue to do so,” said Leslie Hiner, vice president of legal affairs for EdChoice, a national school choice advocacy organization based in Indianapolis. “There are a lot of unknowns.”

Jerry Stayton, superintendent of Elkhart Christian School, submitted a public comment about the regulations saying the scholarships are vital to helping private schools stay afloat and give opportunities to low-income families. The tax incentives have “encouraged giving to schools on a scale never before seen.”

“For the federal government to impose a tax on a state tax credit represents a strange and dangerous precedent,” Stayton wrote. “While the federal government is supreme in the United States, its strength is derived from strong, growing, supportive states with great local economies and excellent education.”

There’s optimism, though, that the regulations’ impact could be far more limited in Indiana than in other states,  given how established its scholarship program is, how low income taxes are here, and how many donors are individuals making smaller contributions.

“So far, Indiana is in a better position, I’d say, than some of the high-tax states,” Hiner said. “Nonetheless, that uncertainty is the thing … I have a lot of faith that people in Indiana, and I’m hoping, that any impact in Indiana because of its long history of charitable giving will not be great.”

Below, we break down how this news could impact Indiana’s school choice programs, as well as how the program works and got its start.

First, what are tax credit scholarships?

Indiana’s tax credit scholarship program, which lawmakers passed in 2009, lets taxpayers donate money to nonprofit, state-approved “scholarship granting organizations” in exchange for a 50 percent credit on their state taxes.

Those donations are then distributed to the nonprofits and given out to income-eligible Hoosier families as private school tuition scholarships. To participate, a family of four can’t make more than $92,870 per year.

In 2018-19, the program could distribute as much as $14 million in tax credits, though the amount that can be donated has no cap. Indiana’s tax credit cap has steadily increased up from $2.5 million since 2009.

While the use of vouchers far outstrips the tax credit scholarships, the program is still sizable. It serves 348 private schools across the state. In 2017, the program awarded 9,349 scholarships totaling more than $16 million.

The National Conference of State Legislatures reports that as of 2017, 17 states had tax credit scholarship programs. The largest one in the country is in Florida, where many corporations participate and the program collects and doles out hundreds of millions of dollars each year.

Is the program controversial?

Yes, though it gets far less attention than Indiana’s voucher program, where families use state tax dollars to pay for private school tuition. It also predates vouchers, which weren’t allowed in the state until 2011.

Tax credit scholarship supporters say the donations benefit students in need who otherwise could attend the school of their choice. They also argue the programs can results in savings for states, as the cost for the tax credits is lower than the cost to educate students in public schools.

Critics of the program say it’s just another version of state-subsidized private school, not unlike vouchers. They also point out it is unclear whether these programs allow states to save money — partially because data on where students go to school and how they transfer between public and private schools can be hard to track.

In Indiana, students do not need to have attended a public school before receiving a tax credit scholarship, and the scholarships can pay up to the full tuition amount at their desired school.

What’s the IRS rule change that is causing the concerns?

It comes in response to a part of the 2017 federal tax bill that limited how much state and local taxes someone could deduct from their federal taxes — up to $10,000. Hiner said federal officials proposed the change to allow the government to get more revenue. Giving fewer opportunities for deductions means the government collects more in tax dollars.

In order to get around the $10,000 cap, some high-tax states, such as New York, California, and New Jersey, took advantage of tax credit programs. As a result, the IRS proposed new rules that prohibit the tax credit workaround, and that’s what has school choice supporters up in arms.

“The IRS had a good reason for taking action, but unfortunately in taking action against those bad actors, they swept in thousands of nonprofits across the country,” Hiner said.

How will the rule change affect Indiana?

Advocates hope is that Indiana won’t take as big a hit as other states with higher taxes.

In a press release, the treasury department said most taxpayers will not be affected by the change, with about 1 percent of taxpayers seeing “an effect on tax benefits for donations to school choice tax credit programs.”

It’s really not clear yet if that will come to pass, Hiner said, because taxes won’t be filed until next year. No one can really say now how donors might change their behavior.

The state-approved nonprofit “scholarship granting organizations” that manage private tuition scholarship funds are already fielding questions from donors. Indiana has seven such organizations, six of which are currently granting scholarships.

“The one thing we’re stressing with everyone is to always contact your accountant, financial advisor, or tax preparer to walk through what the impacts could be,” said Betsy Wiley, executive director of the Institute for Quality Education, one of the state’s scholarship granting organizations.

But in Indiana, according to an analysis from CNBC, taxpayers on average don’t claim deductions over $10,000. While the rule change could impact corporations or very large individual donors, most Hoosiers don’t fall in those categories. The vast majority of donors are individuals, and 43 percent of those donations are for less than $1,000, Wiley said.

Wiley hopes the federal government decides to pause implementing these new rules until after taxes for 2018 are filed. This would give donors and nonprofits more time to understand what the effect might be so they can adjust at the state level.

Federal officials are collecting feedback through November, when there will be another hearing on the rules.

Momentum

Memphis moves from problem child to poster child on Tennessee’s new school improvement list

PHOTO: Brad Vest/The Commercial Appeal
Memphis has been a hub of local, state, federal, and philanthropic school improvement work since Tennessee issued its first list of "priority schools" in 2012.

The city that has been the epicenter of Tennessee’s school improvement work since 2012 got encouraging news on Friday as fewer Memphis schools landed on the state’s newest list of troubled schools.

Only 45 Memphis schools were designated “priority schools,” compared to 57 in 2014 and 69 in 2012.

Meanwhile, more schools in Nashville, Chattanooga, and Jackson were among the 82 placed on priority status, either for being ranked academically in the state’s bottom 5 percent or having a graduation rate of less than 67 percent. They are now eligible for a share of $10 million in state grants this year to pay for extra resources — but also interventions as harsh as state takeover or closure.

Half of the schools are new to the list but won’t face takeover or closure. Those school communities will begin working with the state education department to develop district-led improvement plans, a change from previous years.

Charter schools face the most dire consequences for landing on the list if they’re authorized by local districts. In Memphis, seven will close at the end of the school year, impacting more than 1,700 students:

  • City University School Girls Preparatory
  • Du Bois Elementary of Arts Technology
  • Du Bois Middle of Arts Technology
  • Du Bois Middle of Leadership Public Policy
  • Granville T. Woods Academy of Innovation
  • Memphis Delta Preparatory
  • The Excel Center (adult education)

Two other priority-status high schools already closed their doors in May. They were operated by former city schools superintendent Willie Herenton’s W.E.B. DuBois charter network.

This was the first priority list issued under Tennessee’s new system for holding schools and districts accountable and is based mostly on student test scores from 2015-16 and 2016-17. No negative results from last school year were factored in because of emergency state legislation passed to address widespread technical problems that disrupted Tennessee’s return to online testing in the spring.

The distribution of more priority schools beyond Memphis was notable.

“Shelby County in particular has had some momentum … (but) we have other districts that have not had that same momentum,” said Education Commissioner Candice McQueen during a morning call with reporters.

She praised Shelby County Schools for “changing the landscape” in Memphis by closing at least 15 priority schools since 2012 and for creating its own Innovation Zone to improve other schools. Another catalyst, she said, was the 2012 arrival of Tennessee’s Achievement School District, which has taken over dozens of low-performing Memphis schools and assigned them to charter networks, spurring a sense of urgency.

But student gains have been better under the iZone than within the state-run district. Of the 25 priority schools absorbed by the iZone, 16 have moved off of priority status. Eight schools taken over by the state have gone off the list.

“When you really try and find great school leaders and great teachers, when you extend time, when you focus on professional development, and when you also focus on accountability, good things are going to happen in schools,” said Brad Leon, a Shelby County Schools strategist who supervised the iZone in its early years.

Of the 45 Memphis schools on the newest list, less than two-thirds are within Shelby County Schools, and five of those could be eligible for state takeover, according to Antonio Burt, who oversees priority school work for Tennessee’s largest district. He declined to name them.

The state Board of Education signed off on the priority list on Friday during a special meeting. The board also approved its 2018 list of “reward schools” to acknowledge a fifth of the state’s public schools for student achievement and academic growth in the last year.

Tennessee’s priority list is issued every three years, and this was the third since 2012. But unlike with the two earlier rosters, 2018 priority status does not necessarily put a school on track for state takeover. That’s now an option of last resort as the state seeks to be less punitive and more collaborative with local school leaders.

PHOTO: Ruma Kumar
Shelby County Schools Superintendent Dorsey Hopson visits classrooms and students in 2015. He’s led Tennessee’s largest district since 2013.

“Our new school improvement model takes a student-focused, evidence-based approach to tailor interventions for our priority schools,” said McQueen, who promised to work closely with school communities to provide new resources. 

Those new resources will be welcomed in Memphis, where Shelby County Schools has absorbed the cost of continuing interventions even as federal and state grants expire.

“At the end of the day, we’re very proud of the work, but we’re not satisfied,” said Superintendent Dorsey Hopson. “We’re going to keep on working.”

In Nashville, Mayor David Briley called the increase from 15 to 21 priority schools “unacceptable” and promised to make swift improvements in the state’s second largest school system.

You can find the 2018 list here, and a sortable list below.