Funding gap

Tennessee doesn’t pay for enough teachers to meet its class size mandates, says state report

PHOTO: Aaron Ontiveroz/The Denver Post

The state is considerably underestimating the number of educators needed to run Tennessee schools according to its own requirements, says a state comptroller’s report released Wednesday.

And local governments are paying the difference. Statewide, districts employ about 12,700 more educators than the state funds, according to the comptroller’s Office of Research and Education Accountability, or OREA.

The report analyzed the cost of staffing the state’s schools and found that almost all of Tennessee’s 146 districts had to hire more educators than were provided under the state’s funding formula, called the Basic Education Program, or BEP.

Tennessee’s largest school system in Memphis was an exception. Shelby County Schools has been losing enrollment annually and is one of only three districts to stick to the number of state-funded teachers. However, the cash-strapped district dips into local funding to pay its teachers the highest average weighted salary in the state, $54,187.

OREA reports that many districts were especially shorted when it comes to receiving state money to pay for assistant principals, considered school workhorses who oversee everything from discipline to attendance to transportation. The BEP provides money for only a third of the state’s assistant principals, and 22 districts don’t get state money for a single assistant principal.

Still, the vast majority of educators in Tennessee are classroom teachers. The median percentage of additional teachers funded with local money was 22 percent. That translated to 686 more teachers in Knox County and 499 more in Rutherford County in 2014-15.

The reason for the gap? The BEP calculates the number of state-funded positions based on student enrollment for the district as a whole, but districts still have to meet state class size requirements within each school building — a maximum of 25 students for grades K-3, 30 for 4-6, and 35 for 7-12.

The report comes months after Tennessee codified revisions to the BEP, a hybrid of funding formulas crafted in 1992 and 2007. However, many critics say the formula is unfair and does not pay for the true cost of educating students. The state is fighting separate funding lawsuits from districts in Memphis, Nashville and Chattanooga.

Gov. Bill Haslam’s administration has been adamant that the formula is fair, even while acknowledging that the state doesn’t fully fund its own formula.

This spring, the Tennessee General Assembly voted to increase K-12 education spending by $223 million, with a large portion going to increase teacher pay. Districts have received about $194 million of the allocation; state officials say the remaining $29 million will be spent on teachers’ insurance.

The amount that teachers have felt in their paychecks has varied. In Memphis, Shelby County Schools’ has budgeted for a 3 percent raise for top teachers, which is to begin showing up in paychecks this month.

You can find the full OREA report here.

School Finance

Indianapolis Public Schools sold a temple and bottle plant recently, but the sale of Broad Ripple is more controversial

PHOTO: Dylan Peers McCoy
Phillips Temple

When retired teacher Clara E. Holladay passed away in 1946, she left the school district where she taught a generous and unusual gift: Two duplex houses on the northside of Indianapolis.

Holladay’s will stipulated that the income should “assist good and worthy students, who would not, without assistance, be able to secure a high school or college education,” according to the Indianapolis Star.

Indianapolis Public Schools held on to the houses at 54th Street and North College Avenue for the next seven decades. Last year, the district sold them for $423,000. (The proceeds of the sale were invested, and the interest will continue to fund scholarships.) Between September 2015 and the end of 2018, district officials expect to have sold 10 properties and raised nearly $21 million, according to information provided by the administration.

Many sales, like Holladay’s duplexes, occur without much attention. But the district’s plan to sell the building that contained Broad Ripple High School, after closing the school this year, has drawn significant attention. And it has ignited a simmering controversy over whether the district should be forced to sell the property to a charter school, as state law currently requires, or be allowed to sell it to a developer.

But while Broad Ripple has historical and personal significance, it is one of at least four former school buildings the district has sought to sell in recent years. Over the last 50 years, enrollment in the district fell from nearly 109,000 students to 31,000. In an effort to raise money for the cash-strapped district and reduce its stockpile of underused buildings, Superintendent Lewis Ferebee’s administration has made a flurry of sales.

The money that the district raises by selling property is a short-term salve for its budget woes. But it has helped pay the bills at a time when Indianapolis Public Schools is consistently running a deficit. Next year the administration projects a deficit of about $45 million, and officials plan to ask voters to increase school funding in November.

Indianapolis Public Schools set off a real estate frenzy when it sold a former Coca-Cola bottling plant on Mass Ave. that will soon become a high-end development. The district has owned the striking art deco property since the late 1960s, using it to house a bus depot and other central services. More recently, it purchased a historic church — the Phillips Temple — in 2011, and the administration planned to demolish it to make room for a parking lot, according to the Indianapolis Star. Instead, it sold the historic property to a developer in 2015.

Here is a list of the properties the district has sold since 2015, according to the district

Property: Minnie Hartmann School 78

Buyer: John H. Boner Center

Closing Date: 9/7/2015

Sale Proceeds: $400,000

Property: Phillips Temple

Buyer: Van Rooy Properties

Closing Date: 9/17/2015

Sale Proceeds: $122,500

Property: CIRT

Buyer: Milhaus

Closing Date: 11/24/2015

Sale Proceeds: $1,100,000

Property: Florence Fay School 21

Buyer: TWG (Whitsett Group)

Closing Date: 2/26/2016

Sale Proceeds: $500,000

Property: Otis E. Brown School 20

Buyer: Tessera (Yeshua Society)

Closing Date: 7/20/2016

Sale Proceeds: $255,000

Property: College Avenue Doubles

Buyer: L. Stoeffer and Associates, Inc.

Closing Date: 12/21/2016

Sale Proceeds: $423,000

Property: SCIPS – Service Center IPS

Buyer: Bottleworks District, LLC

Closing Date: 9/1/2017

Sale Proceeds: $12,000,000

Property: Mallory/Ford

Buyer: Ford TWG, LLC

Closing Date: 11/3/2017

Sale Proceeds: $1,650,000

Property: Meridian Transition

Buyer: Families First

Closing Date: In Negotiations / July 2018

Sale Proceeds: $1,575,000

Property: FMD/Polk

Buyer: TWG Development, LLC

Closing Date: Pending Sale / December 2018

Sale Proceeds: $2,750,000

IPS referendum

Ferebee, pleading for more money for schools, says teacher raises, security upgrades are on the ballot

PHOTO: Dylan Peers McCoy
Nathan Harris, who graduated from Arsenal Technical High School, thinks the schools need more funding to serve students from low-income families.

At a quiet meeting held Wednesday in a near northside church, Superintendent Lewis Ferebee made his case: Indianapolis Public Schools needs more money from local taxpayers.

At stake when voters go to the polls in November: The ability of the state’s largest district to foot the cost of raises for teachers and school security improvements, among other expenditures officials deem necessary. There are two property tax hikes on the ballot this year to increase school funding.

Ferebee told the few dozen people who came to the meeting — parents, alumni, district staffers, among them — that, with adequate funding, he envisioned offering the best teacher pay in the state and attracting some of the most talented educators.

“I think every parent in this room would appreciate that,” he said. “We have to be competitive with teachers’ … compensation.”

The superintendent presented a broad outline of the district’s financial woes, but there was not much new information. He devoted most of the meeting to answering questions from those in attendance, who were alternately supportive and skeptical of the referendums.

Reggie Jones, a member of the Indianapolis NAACP education committee, said that while he supports the ballot initiatives, he also wants to know more about how the money will be spent.

Janise Hamiter, a district bus attendant, expressed concern that some of the money raised will be used to make improvements at buildings that are occupied by charter schools in the district innovation network.

“Private money is going to be used for charter schools. Public money is going to be used for charter schools,” she said. “They are getting both ends of the stick if you ask me.”

She said she hasn’t yet decided which way she’ll vote.

One of the proposed referendums would raise about $52 million to pay for improvements to school buildings, particularly safety features such as new lights, classroom locks, and fire sprinklers. The board voted earlier this month to add that request to the ballot.

The second measure, which is likely to generate significantly more funds, would pay for operating expenses such as teacher pay. Details of that proposal are expected in the coming weeks. The board will hold a July 17 hearing on the measure.

The community meeting was notable because this is the district’s second time this year campaigning for more money from taxpayers, and the success of the referendums could hinge on whether Ferebee makes a strong case to voters. Last year, the district announced plans to seek nearly $1 billion in two referendums that were to be on the ballot in May. But community groups, notably the MIBOR Realtor Association, balked at the size of the request and criticized the district for not providing enough details.

Eventually, the school board chose to delay the vote and work with the Indy Chamber to craft a less costly version. The latest proposal for building improvements comes in at about one-quarter of the district’s initial request.

Nathan Harris, who graduated from Arsenal Technical High School but no longer lives in the district, said he supports increasing school funding because he’s familiar with the needs of Indianapolis schools. When so many students come from low-income families, Harris said, “more resources are required.”