charter funding

Comptroller report underscores ‘insufficient clarity, transparency’ in Tennessee funding for charter schools

PHOTO: Marta W. Aldrich
Sen. Delores Gresham (at right) presents a bill this year on the floor of the Tennessee Senate. Gresham, who chairs the Senate Education Committee, requested this week's report from the state comptroller's office.

Tennessee guidelines are so muddled on how funding should be allocated to charter schools that it’s unclear whether those schools are receiving the correct amount of money from their local districts, says a report released Tuesday by the state comptroller.

After analyzing five years of enrollment and funding data, the comptroller’s Office of Research and Education Accountability concluded that “there is insufficient clarity, transparency, and verification associated with the calculation and receipt of charter school funding in Tennessee.”

The report, requested last winter from Senate Education Committee Chairwoman Dolores Gresham, comes as debate intensifies in Tennessee about the cost and impact of charter school growth on traditional schools, as well as the adequacy of state funding for public education.

The State Department of Education already is preparing legislation to bring before the General Assembly next year to address some of the concerns about charter school funding.

The findings have special significance to Shelby County Schools and Metropolitan Nashville Public Schools, home to the vast majority of the state’s charter schools, which are independent but publicly funded schools operated under a charter contract between the school and its authorizing agency.

In Tennessee, local districts allocate funding to charter schools based on the district’s total funding from state and local governments, along with district and charter school enrollment. The report keys in on questions about which local district enrollment numbers to use when calculating money owed to charters. Districts generally use their previous-year enrollment.

Charter school funding = (state and local money / district enrollment) X charter school enrollment

But the report highlights one case in which the state instructed Shelby County Schools, seemingly against protocol, to use the district’s current-year enrollment instead of previous-year enrollment. That resulted in Shelby County Schools shelling out $517,000 more to charter schools at a time when Tennessee’s largest district was reeling from decreased funding due to an exodus of students entering six suburban municipal school districts created in 2014.

“State law, State Board of Education rules, and Tennessee Department of Education policies do not currently provide clear and complete definitions of formula components districts use to calculate charter school funding,” the report said. “The situation has resulted in a lack of uniformity in calculating funding for charter schools across the state.”

In growing districts, such as Metro Nashville, state guidelines are also unclear about allocation of additional state funds meant to offset cost of an increased student population. That ambiguity could cause charter operators to lose out on state money or give them an unfair increase if they aren’t growing at the same rate as the local district — all dependent on how administrators interpret the guidelines.

District leaders in both Memphis and Nashville have bemoaned the amount of education funding being siphoned off to charter schools. Nashville commissioned two independent studies in 2014 and 2015 on charter fiscal impact, both of which showed managing charter schools comes at considerable cost to the local district, largely because of the administrative tasks involved with approving and regulating them, as well as the fixed costs of school buildings and loss of student revenue.

"... There is insufficient clarity, transparency, and verification associated with the calculation and receipt of charter school funding in Tennessee."Office of Research and Education Accountability

To Shelby County Schools board member Chris Caldwell, the report raises more questions about the state’s funding formulas than about districts’ handling of charter school funds.

“The real hypocrisy is the state talking about the lack of transparency and having a funding formula like (Basic Education Plan),” said Caldwell of the BEP, over which the district is suing the state. “The state has never done anything with the funding of education to be transparent about what they’re doing.”

Will Pinkston, a Nashville school board member and frequent charter school critic, was skeptical of report’s timing and of legislation being prepared by the state Education Department.

“This is a well-orchestrated prelude to a legislative agenda,” he said. “…This is about helping the charter movement.”

Leaders of the Tennessee Charter School Center commended efforts surrounding the report.

“Transparency and collaboration remain critical throughout this process and we look forward to working with the local districts and state officials to help establish increasingly more effective systems and procedures for accounting and distributing funds,” said a statement from the center.

Mendell Grinter, executive director of Campaign for School Equity, a black advocacy organization that promotes school choice, said the report rightly points out areas to improve with charter school funding, but misses the ongoing struggle for equitable funding for traditional schools.

“Are we also funding our traditional schools to what they’re needing? And the answer to that is no,” Grinter said. “We’re not doing enough at the state level, but the constant question is still going to be what we’re doing as a whole to make sure schools are getting the right amount of funding.”

Incentives

Westminster district will give bonuses if state ratings rise, teachers wonder whether performance pay system is coming

PHOTO: Nicholas Garcia
Students work on an English assignment at M. Scott Carpenter Middle School in Westminster.

Teachers and employees in Westminster Public Schools will be able to earn a bonus if they help the struggling district improve its state ratings next year.

The district’s school board on Tuesday unanimously approved the $1.7 million plan for the one-year performance stipends, the district’s latest attempt to lift the quality of its schools.

School employees can earn $1,000 if their school meets a district-set score, or up to $2,000 if they reach a more ambitious goal the school sets. District employees, including the superintendent, can earn $1,000 if the district as a whole jumps up a rating next year.

“We recognize that everyone plays a critical role in increasing student achievement and we decided that if a particular school or the district as a whole can reach that next academic accreditation level, the employees directly responsible should be rewarded,” board president Dino Valente said in a statement.

The district is one of five that was flagged by the state for chronic low performance and was put on a state-ordered improvement plan this spring.

District officials have disputed state ratings, claiming the state’s system is not fairly assessing the performance of Westminster schools. Middle school teacher Melissa Duran, who also used to be president of the teacher’s union, drew a connection between that stance and the new stipends, saying any extra pay she gets would be based on one score.

“The district has gone to the state saying, ‘Why are you rating us on these tests, look at all the other things we’re doing’” Duran said. “Well, it’s the same thing for teachers. They’re still basing our effectiveness on a test score.”

Teachers interviewed Thursday said their first thoughts upon learning of the plan was that it sounded like the beginnings of performance pay.

“I already get the point that we are in need of having our test scores come up,” said math teacher Andy Hartman, who is also head of negotiations for the teacher’s union. “Putting this little carrot out there isn’t going to change anything. I personally do not like performance pay. It’s a very slippery slope.”

District leaders say they talked to all district principals after the announcement Wednesday, and heard positive feedback.

“A lot of the teachers think this is a good thing,” said Steve Saunders, the district’s spokesman.

National studies on the effectiveness of performance pay stipends and merit pay have shown mixed results. One recent study from Vanderbilt University concluded that they can be effective, but that the design of the systems makes a difference.

In Denver Public Schools, the district has a performance-pay system to give raises and bonuses to teachers in various situations. Studies of that model have found that some teachers don’t completely understand the system and that it’s not always tied to better student outcomes.

Westminster officials said they have never formally discussed performance pay, and said that these stipends are being funded for one year with an unanticipated IRS refund.

Westminster teachers said they have ideas for other strategies that could make a quick impact, such as higher pay for substitutes so teachers aren’t losing their planning periods filling in for each other when subs are difficult to find.

Waiting on a bonus that might come next year is not providing any new motivation, teachers said.

“It’s a slap in the face,” Duran said. “It’s not like we are not already working hard enough. Personally, I already give 110 percent. I’ve always given 110 percent.”

Last month, the school board also approved a new contract for teachers and staff. Under the new agreement, teachers and staff got a raise of at least 1 percent. They received a similar raise last year.

Human Resources

Leanne Emm, Colorado education department’s chief financial officer, to retire

Leanne Emm, the state education department's retiring chief financial officer. (Photo courtesy Colorado Department of Education)

A long-running joke among Colorado education officials, policymakers and activists is that only a handful of people really know how Colorado’s complex school funding system works.

One of those people — Leanne Emm, the state’s education department’s deputy commissioner — is retiring later this month after nearly 30 years in public service.

Emm announced her retirement in an email to other school finance officers late last month. Her last day at the department is Sept. 22.

“Each of you helps your students, communities, stakeholders and decision makers with a huge array of issues,” she said in her email. “I can only hope that I will have helped contribute to an understanding of budgetary pressures that we have within the state.”

Emm was appointed to her position in 2011 — about the same time the state’s schools were grappling with deep budget cuts due to Great Recession. She worked at Jeffco Public Schools for 14 years before joining the education department.

Katy Anthes, the state’s education commissioner, said Emm’s exit will be felt at both the state and local school district level.

“Leanne’s leadership and her deep knowledge of the school finance system will be sorely missed by all of us at CDE and by the districts she has supported over the years.” Anthes said in a statement. “I will be forever grateful for her support as I transitioned to this role. I’m sad to see her leave CDE, but I suspect that her love for the state of Colorado and passion for improving education will cause our paths to cross again.”