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February 13, 2009

Milwaukee Public School District's "Spending High, But Results Low"

Alan Borsuk:

Milwaukee Public Schools spends significantly more per student than comparable systems around the United States, but, by one measure, has some of the weakest academic results, according to a new analysis by the Wisconsin Taxpayers Alliance.

In line with other research in recent years, the private, nonprofit research organization based in Madison found that the cost of benefits in MPS was especially high - higher than any of the other 15 districts analyzed.

The practices in MPS of paying large amounts for health care for retirees and for supplemental pensions to encourage early retirement, as well as the high price MPS pays for health coverage for everyone in its system, were listed as factors in the high costs of running the system.

The analysis by the Madison-based private, nonprofit organization, which is also known as WISTAX, found:

• MPS spent $8,702 per student in 2005-'06 in compensation for employees, third highest among the 16 districts examined. Only Columbus, Ohio, and Indianapolis were higher.

• Total spending in MPS was $11,277 per student in 2005-'06, also the third highest in the study. The amount spent on instructional costs, $6,825, was the highest among the 16 districts, while the amount spent on central administration costs was the third highest.

• Spending on benefits was $3,195 per student, more than $500 above the second highest school system. Only four of the other districts spent more than $2,000 per student for benefits, including retirement costs and health costs. The MPS benefit costs were 90% above the median of the other 15 districts.

"According to figures from the Wisconsin Association of School Boards, MPS health insurance premiums were more than 50% above the average private sector rate in Wisconsin and about 15% higher than the average Wisconsin school district," the report said.

Posted by Jim Zellmer at February 13, 2009 7:00 AM
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