tabling SALT

Here’s how the Republican tax plan could threaten New York’s education funding

PHOTO: Kevin P. Coughlin-Office of the Governor/Flickr
Mayor Bill de Blasio and Gov. Andrew Cuomo at a press conference in 2014.

Republican lawmakers in Washington appear poised to approve sweeping tax legislation, which New York Governor Andrew Cuomo has dubbed an “economic death blow” to the state.

That blow, advocates say, could punch a hole in school budgets.

Schools across New York are already shortchanged billions of dollars, according to school-funding advocates, even as the state faces a $4.4 billion budget gap. The tax plan, if approved, has the potential to divert even more state and local funding from schools.

“I’ve been dealing with the state budget for more than 30 years and this is as volatile and uncertain as anything I can recall,” said Bob Lowry, deputy director of the New York State Council of School Superintendents.

The House and Senate must still combine their tax bills and pass a final version. Below is a guide to some of the worst-case scenarios for New York schools if that happens.

“Downward pressure” on local taxes

A provision of the tax plan would sharply reduce state and local tax (often called SALT) deductions a proposal that would hit high-tax states like New York hardest. The average SALT deduction in New York is $22,169, according to a report form the Governor Finance Officers Association, using data from 2015.

Advocates worry that voters whose tax burdens rise without the deductions will be less inclined to sign off on increases to their local school board budgets, which voters approve in most parts of the state. In New York City, school funding may be more insulated because residents do not vote on a budget.

However, the city could feel pressure to offset the lost SALT deductions by lowering local income taxes — a move that could shrink budgets across city agencies, including the education department.

“It stands to reason that there will be downward pressure for us to reduce our local taxes, which in turn would create less revenue for city services,” said New York City spokeswoman Freddi Goldstein in an email.

Flight of the super taxpayers

A small number of super-wealthy New Yorkers help keep the state and city governments afloat.

In New York City, about 25,000 families contribute more than 40 percent of the city’s personal income-tax revenue, according to the most recent figures analyzed by the city’s Independent Budget Office.

Their tax burdens could balloon without the SALT deductions, spurring a rush to lower-tax locales. While some experts said a mass exodus is highly unlikely, in a district where approximately 57 percent of school funding comes from the city budget, any significant loss of tax revenue could strike a serious blow to school funding.

“People who live on Park Avenue are not going to move to Alabama to pay lower taxes,” said Michael Borges, executive director of the New York State Association of School Business Officials. “But they may move to Scarsdale because they don’t have to pay a city income tax.”

A three-way “tidal wave of disaster”

Lost local revenue isn’t the only way school budgets could take a hit. In fact, it could be part of a triple whammy.

The tax plan would leave the federal government with a gaping $1.4 trillion deficit. Experts expect lawmakers may eventually plug the hole by slashing spending on healthcare and possibly other programs like education.

“It may result in lower federal funding for everything,” said George Sweeting, deputy director at the city’s Independent Budget Office. “If that happens, that would have an impact on federal funding for New York City.”

Still, school districts only get a fraction of their funding from the federal government. In New York City, federal money accounts for just 6 percent of school spending. (By contrast, 37 percent of the city’s education funds come from the state.)

However, federal spending cuts could have an indirect impact on New York’s education funding. If Washington provides less healthcare funding, for instance, New York could have to pick up the tab — creating a ripple effect, where it would have less to spend on schools.

The federal pressure would come at the same time New York is already facing a $4.4 billion budget deficit. Officials from Governor Andrew Cuomo’s office say the tax plan would be a blow to New York — but they also insist that Cuomo is committed to funding education.

Still, schools are staring at a “loss of federal aid, a loss of state aid, and a loss of local revenue,” Borges said. “It’s like a tidal wave of disaster.”

An under-the-radar change would cause “significant harm”

Finally, a little-noticed bond issue in the tax plan could cause New York schools pain.

Congressional Republicans would remove provisions that help schools borrow money for school construction projects, according to a letter signed by Board of Regents Chancellor Betty Rosa and State Education Commissioner MaryEllen Elia. The loss would “significantly harm districts’ finances,” it reads.

This measure would have a devastating impact on schools, school districts, local taxpayers and, most significantly, our students,” the letter continues. “That impact would be felt most dramatically by districts in poverty; in other words, the districts that would be hurt most are those that can least afford it.”

charter talks

Hopson weighs charters as school turnaround tool for Shelby County Schools

PHOTO: TN.gov
Superintendent Dorsey Hopson leads Shelby County Schools in Memphis, home to Tennessee's highest concentration of low-performing schools.

Shelby County Schools Superintendent Dorsey Hopson has opened a crack in the door to charter school partnerships that might help his district avoid losing more schools to Tennessee’s turnaround district.

Hopson emailed his principals this week to clarify his recent comments to the editorial board of The Commercial Appeal about possibly recruiting charter organizations for turnaround work. The report’s original headline read: “Hopson says he’s willing to hand schools over to charters, if they have a plan for improvement.”

The superintendent quickly turned to Twitter to label the headline “misleading and inaccurate” and, as he sought to regain control of dialogue on the thorny matter, dispatched an email to his school principals.

“…It is my top priority to ensure all of our schools have the necessary resources to provide students with the high-quality education they deserve,” he wrote on Tuesday. “If the Tennessee Department of Education offers us the opportunity to select a charter operator that is willing to collaborate closely with District leaders to improve a school instead of losing it to the (Achievement School District), then I believe it is our responsibility to explore the option.”

Hopson’s comments hint at a potentially significant shift for a district that has battled openly with the charter sector over students being absorbed by the state’s 6-year-old turnaround initiative known as the ASD.

They also point to the tough spot that the superintendent is in.

On the one hand, the growth of the city’s charter turnaround sector has been a thorn in the side of local school leaders since 2012 when the state-run district began taking control of low-performing schools and assigning them to charter operators. Now with 29 Memphis schools, the ASD has siphoned off thousands of students and millions of dollars in an already under-enrolled and under-funded school environment — and made mostly anemic academic gains. (The local district also oversees about 50 charter schools that it’s authorized.)

On the other hand, Shelby County Schools has its hands full trying to improve a substantial number of struggling schools. It’s made some important headway through its Innovation Zone, which adds resources, extends the school day, and pays more to top principals and teachers who are willing to do some of the toughest education work in America. But the iZone is an expensive model, and few of its schools have exited the state’s priority school list.

In addition, some education reform advocates are lobbying to shift Memphis to a “portfolio model,” in which districts actively turn over schools to charter operators and manage them more like stocks in a portfolio. In other words, successful ones are expanded and failing ones are closed. Indianapolis has a robust portfolio model and, last fall, the philanthropic group known as the Memphis Education Fund took several Memphis school board members there for a tour. (The Memphis Education Fund receives support from several local philanthropies, including The Pyramid Peak Foundation and the Hyde Foundation. Chalkbeat also receives support from Hyde; read about our funding here.)

In his email to principals, Hopson said the school board ultimately would decide whether to authorize charter schools for the district’s turnaround work, and that he expects to discuss the matter with members in the coming weeks.

“All that said, I want to be very clear that my preference would always be to keep schools under the governance of (Shelby County Schools),” the superintendent added.

Hopson has been in discussions with the state Department of Education about several school improvement avenues available in Tennessee’s education plan under a new federal law. Among them is an option for Shelby County Schools to voluntarily convert priority schools to a charter, according to department spokeswoman Sara Gast.

One school board member told Chalkbeat he needs more information from the district and state before he would support any move forward. Chris Caldwell added that he thinks the board isn’t up to speed on options under the state’s new education plan.

“At this point, there’s so little information that I’ve been given,” Caldwell said. “I don’t want to conjecture what (a charter conversion) would actually will be like, but I have reservations with any kind of collaboration with the state.”

What would it take for such a shift to be successful?

One Memphis charter advocate says the ground rules are already in place because of a charter compact developed in recent years to address turf issues such as facilities, funding, and accountability.

“In order for a charter to manage a district school that’s underperforming and for it to be successful, that charter needs to have supports from the district to be successful,” said Luther Mercer, the Memphis advocacy director for the Tennessee Charter School Center.

The next school board work session is scheduled for Jan. 23.

School and church partnership

Detroit district aims for faith-based partnerships for every school to support student needs

Superintendent Nikolai Vitti surrounded by religious and district leaders wearing new "Got Faith?" shirts.

Each Detroit public school might soon have its own church, synagogue, mosque, temple, chapel, or parish as a partner.

The district on Thursday announced an initiative to connect every district school with a faith-based community partner to help with academic support, student basic needs, and personal and career development, among other services.

The district is now trying to determine which schools have a defined partnership with a religious institution, but estimates that 25 to 30 percent of schools already do. Sharlonda Buckman, senior executive director of family and community engagement, said that the district hopes that, by the end of the year, every one of its 106 schools “has a religious partner working with them in tandem toward the goal of helping our children achieve.”

The program was announced at a press conference at the N’Namdi Center for Contemporary Art in Midtown, attended by educators, school board members, and invited guests.

“It doesn’t surprise me when I look around the room and see our religious leaders, because you guys, for a long time, have been investing in our children and our people, and it’s been an informal effort,” Buckman said. “You’ve worked with a number of our schools across the district, so today we recognize that we don’t need to do it informally anymore — we need to make this a formal part of how we move this district forward.”

The district is not unique in its approach: church-school partnerships are common across the country and in the state. The national partnering organization Kids Hope USA is based near Holland, Michigan. Supporters believe that stronger faith-school ties will not only improve local support for schools, but also help provide vital services for children and a more stable personal and family foundation upon which learning could take place.

District leaders “cannot lift our children up to their full potential by themselves,” Superintendent Nikolai Vitti said at the press conference. “We need help in that work.”

The district is looking to the faith-based partners to provide services such as tutoring, coaching, chaperoning; deliver before and after school support; donate uniforms and other goods; and highlight teachers at their institutions through announcements and bulletins.

R. Khari Brown, a professor of sociology at Wayne State, said the faith community is already deeply ingrained in Detroit in a variety of ways.

“There are a lot of community centers that closed down over the years in the city, and most churches in the city provide some sort of programming,” he said. “They provide backpacks and school supplies, so [the partnership] makes sense.”

Religion is also a large part of the culture of many African Americans, he said, and a significant force in a district where 81 percent of the students were black in 2016-2017.

“Most African Americans want their churches to be involved on the ills that disproportionately affect black people.” he said.

While other communities might balk at such intermingling of church and state, Brown said he believes that it is a “non issue” in this case because the religious institutions are not receiving money from the district.

The ACLU of Michigan said it had no comment at this time but that the organization hopes to “continue to learn more” about the district’s initiative.

Vitti said a more explicit district-faith community partnership could provide both protection and support for Detroit’s children.

“What I’m talking about is developing a stronger safety net to ensure that what students are not receiving in homes, what students are not receiving in school, can be addressed through the faith-based community,” Vitti said. “When we go back to when the city was at its peak, we worked together as a team to lift children up. When children fell through the cracks, there was a safety net to catch them and lift them back up. That happened through the school system, through the churches, the synagogues.”

Vitti said the initiative is part of his larger effort to align schools and the community more closely. Since starting in his position as superintendent in May of last year, he has been pressing programs like the parent academy.

The academy will provide parents with lessons on subjects like what to ask during parent-teacher conferences, how to create stronger readers, how to fill out FAFSA paperwork, and even how to print a resume. Vitti said most of all, it would empower parents to pursue educational goals for their children, even if they weren’t the best students themselves.

“Every parent knows education is important, but parents don’t know how to navigate the system often, and they feel hypocritical when they push their children when they know they didn’t do well in school,” he said.  

Vitti said he envisions a time when faith-based institutions could house some of the parent services.

He said he also sees the faith community working side by side with the district’s 5,000 role models initiative. The program is recruiting volunteers to work with middle and high school African American and Hispanic students, and plans to have sponsors in each school to work with students daily, taking them on field trips and providing an open line of communication.