Comparing K-12 Funding Adequacy Across 50 States

Wisconsin Center for Education Research, via email:

Until now, no one has tried to estimate the costs of educational adequacy across all 50 states using a common method applied in a consistent manner. UW-Madison education professor Allan Odden and colleagues have realized that goal.
In a recent report, Odden, Lawrence Picus, and Michael Goetz provide state-by-state estimates of the cost of the evidence-based model. The evidence-based model relies primarily on research evidence when making programmatic recommendations. The evidence-based approach starts with a set of recommendations based on a distillation of research and best practices. As implementation unfolds, teams of state policymakers, education leaders, and practitioners review, modify, and tailor those core recommendations to the context of their state’s situation. Odden’s report compares those estimates to each state’s current spending.
Allan Odden and colleagues have developed the first state-level analysis of education finance spending using a model with consistent assumptions across all 50 states plus the District of Columbia.
Odden and colleagues studied districts and schools that have made substantial gains in student performance. They identified the strategies used, then compared those strategies to the recommendations of the evidence-based model. The research found a strong alignment between the strategies and the resources in the evidence-based model and those strategies used by districts and schools that have seen dramatic increase in student learning.
The Evidence-Based Model and Adequacy
When experts discuss education finance, they sometimes use the term “adequacy.” Odden offers this definition: “Providing a level of resources to schools that will enable them to make substantial improvements in student performance over the next 4 to 6 years, as progress toward ensuring that all, or almost all, students meet their state’s performance standards in the longer term.”
“Substantial improvement in student performance” means that, where possible, the proportion of students meeting a proficiency goal will increase substantially in the short- to medium term. Specific targets might vary, depending on the state and a school’s current performance. Yet this goal could be interpreted as raising the percentage of students who meet a state’s student proficiency level from 35% to 70%, or from 70% to something approaching 90% and, in both examples, to increase the percentage of students meeting advanced proficiency standards. There are several approaches to estimating adequacy. They include cost functions, professional judgment, successful schools and districts, and the evidence-based approach.
…………
Using the national average compensation figures, the weighted per pupil estimated costs for adequacy using the evidence-based model is $9,641, an average increase of $566 per student on a national basis. In 30 of the 50 states, additional revenues are needed to reach the estimated cost level. In the remaining 20 states and Washington, D.C., current funding levels are more than enough.
If all states were to receive funding at the estimated level of the evidence-based model, the total cost would be $27.0 billion, or a 6.2% increase. However, the politically feasible approach would not allow using the “excess funds” from the states currently spending more than that level. Given that, the total cost rises to $47.2 billion (a 10.9% increase) to fully fund the model’s estimates.

Locally, the Madison School District spent $370, 287,471 during the 2009-2010 school year, according to the Citizen’s Budget. for 24,295 students ($15,241/student). I have not seen a Citizen’s Budget for the 2010-2011 period. Madison School District budget information.
More from the WCER article:

Nor does this research address how the funds should be allocated once they are sent to school districts. This is an important point, Odden says, because some states currently spend more than identified in this model, yet do not appear to show the gains in student performance the model suggests are possible.

Dem leader says more South Dakota schools will have to opt out of funding formula

Kayla Gahagan:

Gov. Mike Rounds implied Tuesday that school districts could dig into their reserves to absorb proposed cuts to K-12 education funding.
In his final annual budget address, Rounds said the state faces a $75 million structural deficit and proposed unprecedented cuts to education, including a 5 percent reduction to state aid to school districts.
The education changes would result in $240 less per student to school districts, saving the state about $20 million.
House Minority Leader Bernie Hunhoff of Yankton predicted that the 5 percent cut will be modified by the time the final budget is presented, but any cut will hurt.

Some parents object to West Chester schools’ plan to cut busing costs

Dan Hardy

To save the West Chester Area School District a million dollars a year on transportation, some students will have to start the school day earlier next fall and many will have to walk farther to bus stops.
At one middle school, pupils will ride with high schoolers for the first time.
School board members and administrators defend the changes, approved this week, as needed to conserve money for classroom services. Some parents wonder whether the district is putting financial considerations ahead of children’s welfare.
Let the belt-tightening – and the debate over what to cut – begin again.
Even after cutting millions of dollars this school year, the 11,817-student district is projecting a $6 million budget gap for next fiscal year, which will start July 1.
So the board voted unanimously Tuesday to eliminate some buses and fill others closer to capacity. School times were changed, more than 900 bus stops were tentatively eliminated, and some nonpublic-school routes that the district covers were merged with those of public school students. More than 950 children who walk less than a tenth of a mile to a bus stop would have a longer walk under the changes.

The West Chester School District plans to spend $203,848.400 for nearly 12,000 students during the 2010-2011 school year ($16,987.37 per student). Madison spent $15,241 per student during the 2009-2010 school year.

A School Board Thinks Differently About Delivering Education, and spends less

The school board in a wealthy suburban county south of Denver is considering letting parents use public funds to send their children to private schools–or take classes with private teachers–in a bid to rethink public education.
The proposals on the table in Douglas County constitute a bold step toward outsourcing a segment of public education, and also raise questions about whether the district can afford to lose any public funds to private educators.
Already hit hard by state cutbacks, the local board has cut $90 million from the budget over three years, leaving some principals pleading for family donations to buy math workbooks and copy paper.
“This is novel and interesting–and bound to be controversial,” said Chester E. Finn Jr., president of the Thomas B. Fordham Institute, a conservative, educational think tank in Washington, D.C.

Douglas County School District board members are also considering letting students enrolled in public schools opt out of some classes in favor of district-approved alternatives offered at for-profit schools or by private-sector instructors. Students might skip high-school Spanish, for example, to take an advanced seminar in Chinese, or bypass physics to study with a rocket scientist, in person or online.
Another proposal under review calls for expanding publicly-funded services for families that home-school their children.
Superintendent Elizabeth Celania-Fagen said she is not sure which proposals she might support. But in a recent letter to parents of the district’s 56,000 students, she said her leadership team “did not find the ideas alarming” and pledged the district would “set the stage for new thinking in education.”
“These days, you can build a custom computer. You can get a custom latte at Starbucks,” said board member Meghann Silverthorn. “Parents expect the same out of their educational system.”

Related: The ongoing struggle for credit for non Madison School District courses.

Highland Park High School uses new app to connect with students, parents

Jana Martin

Students and parents at Highland Park High School want to stay connected to their school’s news, events and numerous activities.
And now they can. Because there’s an app for that.
“[Last year], I was looking for extra things for my kids to do,” said Kelly Snowden, an adviser for the school’s broadcast and newspaper staff. “We started brainstorming ideas, first for a website and then the app.”
In January, the advisers were approached by a media designer, Allan Restrepo, president of YOUniversal Ideas and parent to two students in the district. By fall, the school had introduced its new technology to students and parents.
Since its Sept. 3 kickoff, more than 1,500 people have downloaded the iPhone app, HPHS Media. The app is available to iPhone users, but plans are to expand to other brands of smart phones. The app also can be used with the iPod Touch and iPad.

The Highland Park School District spends $18,472 per student (6,649) via a $122,825,784 2010/2011 budget. Madison will spend $15,485 per student during the 2010-2011 budget year (24,471 students and a $378,948,997)

Madison School District 2010-2011 Enrollment Report, Including Outbound Open Enrollment (3.11%)



136K PDF

A few numbers:
Total District Enrollment 24,796 (The Wisconsin DPI enrollment number for Madison is 25,395).
Open Enrollment Leavers: 772
Open Enrollment Enterers: 175
Much more on outbound open enrollment here.
Tax & spending authority are largely based on enrollment.
The most recent 2010-2011 budget document indicates total planned spending of $373,157,148, which yields $15049.08 per student.

Ouch! Madison schools are ‘weak’? and College Station’s School District

Wisconsin State Journal Editorial

Another national magazine says Madison is one of the nation’s best cities in which to raise a family.
That’s something to celebrate.
But Kiplinger’s, a monthly business and personal finance periodical, also raps ours city schools as “weak” in its latest edition.
That’s troubling.
“Madison city schools are weak relative to the suburban schools,” the magazine wrote in its analysis of the pros and cons of living here with children.
Really?
The magazine apparently used average test scores to reach its conclusion. By that single measure, yes, Dane County’s suburban schools tend to do better.
But the city schools have more challenges – higher concentrations of students in poverty, more students who speak little or no English when they enroll, more students with special needs.
None of those factors should be excuses. Yet they are reality.
And Madison, in some ways, is ahead of the ‘burbs. It consistently graduates some of the highest-achieving students in the state. It offers far more kinds of classes and clubs. Its diverse student population can help prepare children for an increasingly diverse world.

Madison School Board member Ed Hughes compares WKCE scores, comments on the Kiplinger and Wisconsin State Journal article and wonders if anyone would move from Madison to College Station, TX [map], which Kiplinger’s ranked above our local $15,241 2009/2010 per student public schools.
I compared Madison, WI to College Station, TX using a handy Census Bureau report.

93.8% of College Station residents over 25 are high school graduates, a bit higher than Madison’s 92.4%.
58.1% of College Station residents over 25 have a bachelor’s degree or higher, compared to Madison’s 48.2%

Madison does have a higher median household and per capita income along with a population about three times that of College Station.
Turning to the public school districts, readers might be interested in having a look at both websites: the College Station Independent School District and the Madison Metropolitan School District. 75% of College Station students took the ACT (average score: 22.6) while 67% of Madison students took the exam and achieved a composite score of 24.2.
College Station publishes a useful set of individual school report cards, which include state and national test results along with attendance and dropout data.
College Station’s 2009-2010 budget was $93,718.470, supporting 9,712 students = $9,649.76 per student. . They also publish an annual check register, allowing interested citizens to review expenditures.
Madison’s 2009-2010 budget was $370,287,471 for 24,295 students = $15,241 per student, 57.9% higher than College Station.
College Station’s A and M Consolidated High School offers 22 AP classes while Madison East offers 12, Memorial 25 (8 of which are provided by Florida Virtual…), LaFollette 13 and West 8.
College Station’s “student profile” notes that the District is 59.3% white, 31.4% are economically disadvantaged while 10.3% are in talented and gifted.
Texas’s 2010 National Merit Semifinalist cut score was 216 while Wisconsin’s was 207. College Station’s high school had 16 National Merit Semi-Finalists (the number might be 40 were College Station the same size as Madison and perhaps still higher with Wisconsin’s lower cut score) during the most recent year while Madison’s high schools had 57.

A Look at Wisconsin School Administrative Salaries; Madison has 45 employees earning > $100,000 annually.

Amy Hetzner

Public school districts in southeastern Wisconsin reported paying their top leaders an average salary of nearly $130,000 in the 2009-’10 school year, data released by the state Department of Public Instruction shows.
The average salary for the six-county region, which includes Kenosha, Milwaukee, Ozaukee, Racine, Washington and Waukesha counties, represents a 7.4% increase over superintendent salaries two years before and more than 40% more than such positions averaged a decade ago.
Teacher pay for the same school districts rose 7.6%, on average, between the 2007-’08 and 2009-’10 school years. Over the previous 10 years, however, average teacher salaries in southeastern Wisconsin school districts increased by 29%, according to the state information.
The data from the DPI is reported by school districts every fall, meaning that it might not capture salary increases given retroactively after teacher contracts are settled, which is also when many districts approve administrative compensation packages.
For that reason, the Journal Sentinel compared salaries reported in 2009-’10, the first year of negotiations for a new teacher contract, with the salaries from two years before at a similar stage in negotiations. The 10-year comparison also should eliminate some of the year-to-year fluctuations caused by the self-reporting method employed by the state.

Madison has 45 employees earning greater than $100,000.00, Green Bay has 21 (Madison’s Dan Nerad previously served as the Green Bay Superintendent), Milwaukee has 103, Racine 10, Waukesha 7 and Appleton 18. Madison spends $15,241 per student, according to the 2009-2010 Citizen’s Budget.
Search the Wisconsin public school employee database here.

Alameda School Tax Referendum “Measure E” Fails

Jill Tucker:

For decades, parents have shelled out a real estate premium to take advantage of Alameda public schools, spending more money for rent or a mortgage for the peace of mind that comes with solid standardized test scores and a seat at the school down the block.
That’s what Heather Genschmer did.
She wanted her son Myles, 3, to have the public school experience she had as a child, one filled with art, music, gifted programs, field trips, sports and high-quality academics.

Related: “Measure E, What Went Wrong” and “No on Measure E“. More here. The Alameda School District’s website.
Alameda’s enrollment was 9,612 in 2009/2010. Spending was 92,010,693 in 2009/2010 = $9,572 per student. Locally, Madison spent $15,241 per student, based on the 2009/2010 Citizen’s budget ($370,287,471 expenditures for 24,295 students), 37% more than Alameda.

Atlanta schools’ travel tab high

Rich McKay:

While school systems are cutting jobs or furloughing teachers to shore up withering budgets, Atlanta Public Schools has spent more than twice as much money per student on travel as most other metro districts.
Atlanta spent more than $1.4 million on travel in 2008-09, the latest year from which complete data was available. That works out to $28.77 per student, far higher than neighboring DeKalb County and more than double per pupil what Clayton, Cobb, Fulton and Gwinnett counties spent on travel, an Atlanta Journal-Constitution investigation found.
And Atlanta was slated to spend even more in 2009-2010 — about $1.8 million, a 28 percent jump.
Atlanta public school officials say travel is important so teachers can get the training they need and bring new skills and insights to the classroom. Much of the travel represents teachers going to education conferences, district officials said.

Europe’s Education Crisis: College Costs Soar

Meg Handley:

College students are known for their ability to survive on instant noodles, toast and a shoestring budget. But recently, some students in Ireland have gotten particularly desperate. “I have heard from students who have lived on biscuits stolen from the chaplaincy in their college for a week, students who have lived in their cars for months,” says Hugh Sullivan, education officer at the Union of Students in Ireland, a group that advocates on the behalf of over 250,000 students around the country.
The reason? Over the past 15 years, fees at Irish universities that cover the cost of registration, exams and student services have gone from the equivalent of $240 per student to nearly $2,000. On top of that, the government cut funding to universities by 5% last year and Sullivan expects another 5% cut this year. “It’s a time of famine,” Sullivan says, adding that even though students don’t show up in the country’s grim unemployment rate (currently 13.1%), they have become the hidden victim of the recent financial crisis. “The last thing you eat is your seeds.”

They Spend WHAT? The Real Cost of Public Schools

Adam Schaeffer:

Although public schools are usually the biggest item in state and local budgets, spending figures provided by public school officials and reported in the media often leave out major costs of education and thus understate what is actually spent.
To document the phenomenon, this paper reviews district budgets and state records for the nation’s five largest metro areas and the District of Columbia. It reveals that, on average, per-pupil spending in these areas is 44 percent higher than officially reported.
Real spending per pupil ranges from a low of nearly $12,000 in the Phoenix area schools to a high of nearly $27,000 in the New York metro area. The gap between real and reported per-pupil spending ranges from a low of 23 percent in the Chicago area to a high of 90 percent in the Los Angeles metro region.
To put public school spending in perspective, we compare it to estimated total expenditures in local private schools. We find that, in the areas studied, public schools are spending 93 percent more than the estimated median private school.

Madison spends $15,241.30 per student, according to the 2009-2010 Citizen’s Budget.

Thinking about the Cost of Educating Students via the Madison School District, Virtual Schools and a Madison School Board Member Ed Hughes email to State Senator Fred Risser

Susan Troller:

Madison School Board member Ed Hughes sent me an e-mail pointing out another vexing problem with Wisconsin’s school funding system and how it penalizes the Madison district, which I’ve written about in the past. Hughes notes in his e-mail “This particular wrinkle of the state school financing system is truly nuts.”
Hughes is incensed that the IQ Academy, a virtual school operated by the Waukesha district, gets over $6000 in state aid for poaching students from the Madison district while total state aid for educating a student in a real school here at home is $3400. Waukesha makes a profit of about $500 per student at the expense of taxpayers here, Hughes says. And that’s including profits going to the national corporate IQ Academy that supplies the school’s programming.

The complete text of Ed Hughes letter to Senator Risser:

Sen. Risser:
As if we needed one, here is another reason to be outraged by our state school financing system:
This week’s issue of Isthmus carries a full page ad on page 2. It is sponsored by “IQ Academy Wisconsin,” which is described as a “tuition-free, online middle and high school program of the School District of Waukesha, WI.” The ad invites our Madison students to open-enroll in their “thriving learning community.”
What’s in it for Waukesha? A report on virtual charter schools by the State Fiscal Bureau, released this week, sheds some light on this. The Madison school district gets a little more than $2,000 in general state aid for each of our students. If you include categorical aids and everything else from the state, the amount goes up to about $3,400/student.
However, if Waukesha (or any other school district) is successful in poaching one of our students, it will qualify for an additional $6,007 in state aid. (That was actually the amount for the 2007-08 school year, that last year for which data was available for the Fiscal Bureau report.) As it was explained to me by the author of the Fiscal Bureau report, this $6,007 figure is made up of some combination of additional state aid and a transfer of property taxes paid by our district residents to Waukesha.
So the state financing system will provide nearly double the amount of aid to a virtual charter school associated with another school district to educate a Madison student than it will provide to the Madison school district to educate the same student in an actual school, with you know, bricks and mortar and a gym and cafeteria and the rest.
The report also states that the Waukesha virtual school spends about $5,500 per student. So for each additional student it enrolls, the Waukesha district makes at least a $500 profit. (It’s actually more than that, since the incremental cost of educating one additional student is less than the average cost for the district.) This does not count the profit earned by the private corporation that sells the on-line programming to Waukesha.
The legislature has created a system that sets up very strong incentives for a school district to contract with some corporate on-line operation, open up a virtual charter school, and set about trying to poach other districts’ students. Grantsburg, for example, has a virtual charter school that serves not a single resident of the Grantsburg school district. What a great policy.
By the way, Waukesha claims in its Isthmus ad that “Since 2004, IQ Academy Wisconsin students have consistently out-performed state-wide and district averages on the WKCE and ACT tests.” I didn’t check the WKCE scores, but last year 29.3% of the IQ Academy 12th graders took the ACT test and had an average composite score of 22.9. In the Madison school district, 56.6% of 12th graders took the test and the district average composite score was 24.0.
I understand that you are probably tired of hearing from local school board members complaining about the state’s school funding system. But the enormous disparity between what the state will provide to a virtual charter school for enrolling a student living in Madison, as compared to what it will provide the Madison school district to educate the same student, is so utterly wrong-headed as to be almost beyond belief.
Ed Hughes
Madison School Board

Amy Hetzner noted this post on her blog:

An interesting side note: the Madison Metropolitan School District’s current business manager, Erik Kass, was instrumental to helping to keep Waukesha’s virtual high school open and collecting a surplus when he was the business manager for that district.

I found the following comments interesting:

An interesting note is that the complainers never talked about which system more effectively taught students.
Then again, it has never really been about the students.

Madison is spending $418,415,780 to educate 24,295 students ($17,222 each).
Related: Madison School District 2010-2011 Budget: Comments in a Vacuum? and a few comments on the recent “State of the Madison School District” presentation.
The “Great Recession” has pushed many organizations to seek more effective methods of accomplishing their goals. It would seem that virtual learning and cooperation with nearby higher education institutions would be ideal methods to provide more adult to student services at reduced cost, rather than emphasizing growing adult to adult spending.
Finally Richard Zimman’s recent Madison Rotary talk is well worth revisiting with respect to the K-12 focus on adult employment.
Fascinating.

Education: Too Important for a Government Monopoly

John Stossel:

The government-school establishment has said the same thing for decades: Education is too important to leave to the competitive market. If we really want to help our kids, we must focus more resources on the government schools.
But despite this mantra, the focus is on something other than the kids. When The Washington Post asked George Parker, head of the Washington, D.C., teachers union, about the voucher program there, he said: “Parents are voting with their feet. … As kids continue leaving the system, we will lose teachers. Our very survival depends on having kids in D.C. schools so we’ll have teachers to represent.”
How revealing is that?
Since 1980, government spending on education, adjusted for inflation, has nearly doubled. But test scores have been flat for decades.
Today we spend a stunning $11,000 a year per student — more than $200,000 per classroom. It’s not working. So when will we permit competition and choice, which works great with everything else? I’ll explore those questions on my Fox Business program tomorrow night at 8 and 11 p.m. Eastern time (and again Friday at 10 p.m.).
The people who test students internationally told us that two factors predict a country’s educational success: Do the schools have the autonomy to experiment, and do parents have a choice?

Locally, the Madison School District has 24,295 students and a 2009/2010 budget of $418,415,780. $17,222 per student.

A Few Comments on Monday’s State of the Madison School District Presentation

Madison School District Superintendent Dan Nerad will present the “State of the Madison School District 2010” tomorrow night @ 5:30p.m. CST.
The timing and content are interesting, from my perspective because:

  • The nearby Verona School District just approved a Mandarin immersion charter school on a 4-3 vote. (Watch the discussion here). Madison lags in such expanded “adult to student” learning opportunities. Madison seems to be expanding “adult to adult” spending on “coaches” and “professional development”. I’d rather see an emphasis on hiring great teachers and eliminating the administrative overhead associated with growing “adult to adult” expenditures.
  • I read with interest Alec Russell’s recent lunch with FW de Klerk. de Klerk opened the door to South Africa’s governance revolution by freeing Nelson Mandela in 1990:

    History is moving rather fast in South Africa. In June the country hosts football’s World Cup, as if in ultimate endorsement of its post-apartheid progress. Yet on February 2 1990, when the recently inaugurated state President de Klerk stood up to deliver the annual opening address to the white-dominated parliament, such a prospect was unthinkable. The townships were in ferment; many apartheid laws were still on the books; and expectations of the balding, supposedly cautious Afrikaner were low.
    How wrong conventional wisdom was. De Klerk’s address drew a line under 350 years of white rule in Africa, a narrative that began in the 17th century with the arrival of the first settlers in the Cape. Yet only a handful of senior party members knew of his intentions.

    I sense that the Madison School Board and the Community are ready for new, substantive adult to student initiatives, while eliminating those that simply consume cash in the District’s $418,415,780 2009-2010 budget ($17,222 per student).

  • The “State of the District” document [566K PDF] includes only the “instructional” portion of the District’s budget. There are no references to the $418,415,780 total budget number provided in the October 26, 2009 “Budget Amendment and Tax Levy Adoption document [1.1MB PDF]. Given the organization’s mission and the fact that it is a taxpayer supported and governed entity, the document should include a simple “citizen’s budget” financial summary. The budget numbers remind me of current Madison School Board member Ed Hughes’ very useful 2005 quote:

    This points up one of the frustrating aspects of trying to follow school issues in Madison: the recurring feeling that a quoted speaker – and it can be someone from the administration, or MTI, or the occasional school board member – believes that the audience for an assertion is composed entirely of idiots.

    In my view, while some things within our local public schools have become a bit more transparent (open enrollment, fine arts, math, TAG), others, unfortunately, like the budget, have become much less. This is not good.

  • A new financial reality. I don’t see significant new funds for K-12 given the exploding federal deficit, state spending and debt issues and Madison’s property tax climate. Ideally, the District will operate like many organizations, families and individuals and try to most effectively use the resources it has. The recent Reading Recovery report is informative.

I think Dan Nerad sits on a wonderful opportunity. The community is incredibly supportive of our schools, spending far more per student than most school Districts (quite a bit more than his former Green Bay home) and providing a large base of volunteers. Madison enjoys access to an academic powerhouse: the University of Wisconsin and proximity to MATC and Edgewood College. Yet, District has long been quite insular (see Janet Mertz’s never ending efforts to address this issue), taking a “we know best approach” to many topics via close ties to the UW-Madison School of Education and its own curriculum creation business, the Department of Teaching and Learning.
In summary, I’m hoping for a “de Klerk” moment Monday evening. What are the odds?

Madison schools — “the biggest loser”

Susan Troller:

Despite an ailing economy, Madison School Board members were guardedly optimistic last spring as they put together the district’s preliminary 2009-2010 budget. The community had overwhelmingly passed a referendum the previous fall that allowed the district to exceed state revenue caps, providing an extra $13 million to the district through 2012.
As a result, the board was anticipating a rare year where public school programs and services were not on the chopping block and was looking forward to crafting a budget with minimal property tax increases. Initial projections worked out to a $2.50 increase on an average $250,000 Madison home on this year’s tax bill.
For once, it looked as if both parents and taxpayers would be happy with the budget, a rare scenario in Wisconsin where school spending formulas and revenue caps often seem tailor-made to pit taxpayers against school advocates.
But the preliminary budget plan the Madison district drew up and approved in May predated the news that Wisconsin’s revenue situation was far worse than predicted. The result was a steep reduction in what the state’s 438 school districts would get from Wisconsin’s general school aid fund. The drop in general school aid amounted to $149 million, or 3 percent.
These cuts, however, would not be shared equally across every district, and the formula used was particularly unkind to Madison, which overnight saw a gaping hole of more than $9 million, a drop in aid not seen by any other district in the state.
“We were so happy last spring. In retrospect, it was really kind of pitiful,” says Lucy Mathiak, vice president of Madison’s School Board. The mood was decidedly more downbeat, she notes, in late October when the board gave its final approval to the $350 million 2009-2010 school district budget.

I’m glad Susan mentioned the District’s total spending. While such budget changes are difficult, many public and private organizations are facing revenue challenges. The Madison School District has long spent more per student than most Districts in Wisconsin and has enjoyed annual revenue growth of around 5.25% over the past 20+ years – despite state imposed “revenue caps” and flat enrollment.
Some can argue that more should be spent. In my view, the District MUST complete the oft discussed program review as soon as possible and determine how effective its expenditures are. Board Vice President Lucy Mathiak again raised the issue of evaluating math curriculum effectiveness via University of Wisconsin System entrance exam results and college placement. This request has fallen on deaf ears within the MMSD Administration for some time. [Madison School Board Math Discussion 40MB mp3 audio (Documents and links).] I very much appreciate Lucy’s comments. The District’s extensive use of Reading Recovery should also be evaluated in terms of effectiveness and student skills. The District should be planning for a tighter budget climate in this, the Great Recession.
Finally, I found Marj Passman’s comments in the article interesting:

“I understand that the economy is terrible, but for years we heard that the reason we had this school funding mess was because we had Republicans in charge who were basically content with the status quo,” says board member Marj Passman. “I had expected so much change and leadership on school funding issues with a Democratic governor and a Democratic Legislature. Honestly, we’ve got Rep. Pocan and Sen. Miller as co-chairs of the Joint Finance Committee and Democratic majorities in both houses! Frankly, it’s been a huge disappointment. I’d love to see that little beer tax raised and have it go to education.”

In my view, we’re much better off with “divided” government. The current Governor and legislative majority’s budget included a poor change to the arbitration rules between school districts and teacher unions:

To make matters more dire, the long-term legislative proposal specifically exempts school district arbitrations from the requirement that arbitrators consider and give the greatest weight to revenue limits and local economic conditions. While arbitrators would continue to give these two factors paramount consideration when deciding cases for all other local governments, the importance of fiscal limits and local economic conditions would be specifically diminished for school district arbitration.

Madison School District Spending History.
It’s good to see Susan Troller writing about local school issues.

Detroit Coaxes Students to High-Stakes Roll Call

Alex Kellogg:

Annual ‘Count Day’ Determines How Much State Money Schools Will Get; a Test for District’s Emergency Financial Manager
Public school districts across Michigan mobilized Wednesday to boost attendance for Count Day, the annual fall roll call that largely determines how much money each district receives under the state’s per-pupil funding system.
Students in Detroit were treated to free meals, ice-cream parties, T-shirts, celebrity visits and a chance to win iPods and a plasma-screen TV — just for showing up for class.
Districts received an average of $7,810 per student last year, but that could decline by more than $200 a pupil this year as Michigan looks to close a $1.7 billion budget hole. Every student in class Wednesday represented funding for the school year.
The stakes were especially high for the Detroit Public Schools, where Wednesday’s carnival atmosphere masked grim financial realities. Enrollment has plummeted roughly 50% in the past decade, contributing to a $259 million deficit this year that has put the district on the brink of bankruptcy.
The results of the count will serve as the first report card for Robert C. Bobb, the district’s state-appointed emergency financial manager, who is hoping to stave off bankruptcy and stabilize enrollment. Detroit schools this summer launched a $500,000 campaign aimed at keeping students that included ads by Bill Cosby.

Pay bump for teachers with master’s degrees could be put to better use

The Center on Reinventing Public Education via a Debra Britt email:

Seattle, WA, July 20, 2009 — In this recessionary climate of depressed revenues and budget cuts for education, school districts across the U.S. “would be foolhardy” not to rethink paying teachers for master’s degrees, according to a new report out today.
“On average, master’s degrees in education bear no relation to student achievement,” say education researchers Marguerite Roza and Raegen Miller in their short paper, Separation of Degrees: State-By-State Analysis of Teacher Compensation for Master’s Degrees.
The brief was produced jointly by the Center on Reinventing Public Education and the Center for American Progress.
“During this time of fiscal stringency, it should raise eyebrows when a state automatically allocates such large sums of the average per-pupil expenditure in a manner that is not even suspected of promoting higher levels of student achievement,” say the authors.
In hard dollars, this means New York state spends an extra $416 per student (for a total of $1.121 billion a year) just because 78 percent of its teachers hold master’s degrees. In Washington state, the analogous numbers are $319 per pupil (or $330 million a year total) for the 56 percent of its teachers with a master’s. These expenditures, respectively, represent 2.78 percent and 3.30 percent of the total federal, state, and local money devoted to education in each state.
Roza and Miller chart these numbers for each state and suggest that the money now committed to the master’s bump in pay could be better spent, writing that: “Teaching candidates with salient and meaningful master’s degrees should be given preferential attention when competing for jobs, all else being equal. A master’s degree in engineering, for example, should be construed as evidence that a candidate possesses a deep understanding of a subject matter that is relevant to teaching mathematics or science.”

Wisconsin K-12 Tax & Spending Climate: State Redistributions to Madison Smaller Than Expected

Mark Pitsch:

Barely a week after the Legislature approved a budget that local and state officials said would slash state aid to Madison schools by no more than 10 percent, new estimates show the cuts will actually top 15 percent.
Word of the $9.2 million cut in general state school aids next year came as a rude shock to lawmakers and district officials. That’s because cuts approved by the Legislature’s budget committee were estimated to be 13.1 percent, but the final budget was believed to limit the cuts to 10 percent.
Dave Schmiedicke, Gov. Jim Doyle’s budget director, said several factors affected the new school funding calculation, including the number of students expected to enroll this fall, the district’s relatively larger increase in spending per student compared with other Wisconsin districts and the district’s high property values.

Related: Open Enrollment.

A Primer on Wisconsin School Revenue Limits

The Wisconsin Taxpayer 3.4MB PDF:

Since 1994, Wisconsin school districts have operated under state-imposed revenue limits and the associated qualified economic offer (QEO) law.

  • Revenue limits have helped reduce school property tax increases to less than 5% per year from more than 9% annually prior to the caps.
  • The limits have had \aried impacts on school districts, with growing districts experiencing the largest revenue gains. Low-spending districts prior to the caps have seen the largest per student gains.
  • The QEO law has helped school districts keep compensation costs somewhat in line with revenue limits. However, since benefits are given more weight, teacher salary increases have slowed.

Since 1994. Wisconsin school districts have operated under slate-imposed revenue limits, which arc tied to inflation and enrollments. The associated qualified economic offer (QEO) law limits staff compensation increases to about 4% annually. With declining student counts, fluctuations in stale school aid. and various concerns over teacher pay. revenue limits and the QEO have attracted increasing debate.
The governor, in his proposed 2009-11 state budget, recommends eliminating the QEO. I le has also talked about providing ways for school districts to move away from revenue limits. This report does not address these specific proposals. Rather, it seeks to help inform discussions by examining the history of revenue limits and the QEO, legislative attempts to fix various issues, and the impacts of limits on schools, educators, and taxpayers.
THE REVENUE LIMIT LAW
School districts collect revenue from a variety of sources. The two largest sources are the property tax and state general (or equalization) aid, General aid is distributed based on district property wealth and spending. Combined, these two revenue sources account for about 75% of an average district’s funding. The remainder is a combination of student fees, federal aid. and state categorical aids. such as those for special education and transportation.
The revenue limit law was implemented in 1994 (1993-94 school year) and caps the amount districts can collect from property taxes and general aid combined. It does not restrict student fees, federal aid. or state categorical aid. A district’s revenue limit is determined by its prior-year cap, an inflation factor, and enrollments. There is an exception to the limit law for districts defined as “low-revenue.” Currently, districts with per student revenues less than S9.000 are allowed to increase their revenues to that level.
Background
While Wisconsin’s revenue limit law began in 1994. its roots date back to several teacher strikes in the early 1970s, culminating with the 1974 Hortonville strike during which 86 teachers were fired. That strike gained national attention.




Related: K-12 tax & spending climate. A number of links on local school spending and tax increases before the implementation of State limits on annual expenditure growth. The Madison School District spent $180,400,000 during the 1992-1993 school year. In 2006, the District spent $331,000,000. The 2009/2010 preliminary Citizen’s Budget proposes spending $367,912,077 [Financial Summary 2.1MB pdf], slightly down from 2008/2009’s $368,012,286.

Some Rich Districts Get Richer as Aid Is Rushed to Schools

Sam Dillon:

Dale Lamborn, the superintendent of a somewhat threadbare rural school district, feels the pain of Utah’s economic crisis every day as he tinkers with his shrinking budget, struggling to avoid laying off teachers or cutting classes like welding or calculus.
Just across the border in Wyoming, a state awash in oil and gas money, James Bailey runs a wealthier district. It has a new elementary school and gives every child an Apple laptop.
But under the Obama administration’s education stimulus package, Mr. Lamborn, who needs every penny he can get, will receive hundreds of dollars less per student than will Dr. Bailey, who says he does not need the extra money.
“For us, this is just a windfall,” Dr. Bailey said.
In pouring rivers of cash into states and school districts, Washington is using a tangle of well-worn federal formulas, some of which benefit states that spend more per pupil, while others help states with large concentrations of poor students or simply channel money based on population. Combined, the formulas seem to take little account of who needs the money most.
As a result, some districts that are well off will find themselves swimming in cash, while some that are struggling may get too little to avoid cutbacks.

Reporting the Stimulus/Splurge: Notes on Education Spending

Ryan Chittum:

‘ve lost count of how many trillions of bailout money have been laid out (fortunately for all of us, Bloomberg keeps track: $8.5 trillion and counting). Layoffs are being announced in the tens of thousands in a single day. The housing market continues to collapse, as does the banking industry. We have a new administration, which has created a huge appetite for any shred of news from the White House. Those two wars in Iraq and Afghanistan still drone on. The news industry is collapsing. And Oklahoma is 20-1 in basketball (Beg pardon on this last one.)
But today, the heavy guns are out for the approaching-trillion-dollar stimulus package Obama is pushing through Congress. And it’s an impressive performance.
First, The New York Times has a double-barreled effort with its lead stories on page one today, one about the unprecedented education spending in the bill and the other on the massive health-care expenditures it contains.
The Times is excellent on both counts. On education, it reports that fully $150 billion of the stimulus package is allocated for learnin’. It puts the numbers in great context:
…a vast two-year investment that would more than double the Department of Education’s current budget…
…would amount to the largest increase in federal aid since Washington began to spend significantly on education after World War II…
…New York would be among the biggest beneficiaries, at $760 per student, while New Jersey and Connecticut would fall near the bottom, with $427 and $409 per student, respectively. The District of Columbia would get the most per student, $1,289, according to the foundation’s analysis…
And it clearly explains the potential ramifications of implementing such an enormous plan:
Critics and supporters alike said that by its sheer scope, the measure could profoundly change the federal government’s role in education, which has traditionally been the responsibility of state and local government…
The bill would, for the first time, involve the federal government in a significant fashion in the building and renovation of schools, which has been the responsibility of states and districts…

Much more on the stimulus/splurge here.

Is educational success, key to global competition, a matter of time, money or choice?

Investors Business Daily:

The argument over what to do about America’s struggling schools is still raging. Programs such as No Child Left Behind have achieved some success by introducing a measure of accountability into the process. But American students continue to get clobbered on international tests by other countries whose school systems spend less money per student and have larger average class sizes.
Facing budget realities in a down economy, Gov. Arnold Schwarzenegger recently proposed shortening the school year by five days to contribute $1.1 billion in savings toward the state’s $42 billion budget shortfall.
State school superintendent Jack O’Donnell vehemently disagreed, saying a longer school year was needed to prepare students for “the competitive global economy.”
The operative word here is “competitive.” Success in the marketplace depends on being able to produce the best product at the lowest cost. Competition in the business world produces a better product at less cost. Why shouldn’t it be so in education? Well, it is.
According to the Organization for Economic Cooperation and Development, 70% of the countries that outperformed the U.S. in combined math and science literacy among 15-year-olds had more schools competing for students. Countries ranging from Japan to Latvia all had more education options than American students.

ACE Update on the November 2008 Madison Referendum, Information Session Tonight

REMINDER: The MMSD district is holding its second of four “Information Sessions” regarding the referendum tonight (Thursday, October 16), 6:30 pm, Jefferson Middle School. You are urged to attend.
The Madison Metropolitan School District seeks approval of the district taxpayers to permanently exceed the revenue cap for operations money by $13 million a year. In the meantime, to establish that new tax base over the next three years, a total of $27 million in more revenue will have been raised for programs and services. The district has also projected there will continue to be a ‘gap’ or shortfall of revenue to meet expenses of approximately $4 million per year after the next three years, thereby expecting to seek approval for additional spending authority.
Whereas, the Board of Education has staked the future of the district on increased spending to maintain current programs and services for a “high quality education;”
Whereas, student performance on the Wisconsin Knowledge and Concepts Exams has languished at the 7, 8, and 9 deciles (in comparison with the rest of the state’s schools where 1 is the highest level and 10 is the lowest) in 4th, 8th and 10th grade reading, math, science, social studies and language arts exams for the past five years. The total percentage of MMSD students performing at either “proficient” or “advanced” levels (the two highest standards) has consistently ranged in mid 60%s to mid 70%s;
Whereas, the district Drop Out Rate of 2.7% (2006-07) was the highest since 1998-99. With the exception of two years with slight declines, the rate has risen steadily since 1999.
Whereas, the Attendance Rate for all students has remained basically steady since 1998-99 in a range from 95.2% (2005-06) to a high of 96.5% (2001-02);
Whereas, the district Truancy Rate of students habitually truant has risen again in the past three years to 6.0% in 2006-07. The truancy rate has ranged from 6.3% (1999-2000) to 4.4% in 2002-03;
Whereas, the district total PreK-12 enrollment has declined from 25,087 (2000-01) to its second lowest total of 24,540 (2008-09) since that time;
Whereas, the district annual budget has increased from approximately $183 million in 1994-1995 (the first year of revenue caps) to approximately $368 million (2008-09);
Whereas, the board explains the ‘budget gap’ between revenue and expenses as created by the difference between the state mandated Qualified Economic Offer of 3.8% minimum for salary and health benefits for professional teaching staff and the 2.2% average annual increases per student in the property tax levy. The district, however, has agreed with the teachers’ union for an average 4.24% in annual increases since 2001;
Whereas, the district annual cost per pupil is the second highest in the state at $13,280 for the school year 2007-08;

The Road to Education Reform

Wisconsin State Representative Brett Davis (R-Oregon):

As families across Wisconsin get ready to send their kids back to school, it is important to focus on how we are going to continue to improve student achievement for all our children. As chairman of the state Assembly Education Committee and having my son Will entering the ranks of pre-school, I understand the need to constantly look to improve our education system in Wisconsin so our kids and grandkids can compete in a competitive global economy and be productive citizens.
To increase student achievement in Wisconsin, I recently announced a comprehensive K-12 education improvement plan that I believe will reduce property taxes, make our school finance system more sensible, modernize student assessments, and direct more resources to classroom instruction. First, however, it is necessary to point out the current financial commitment to K-12 education in Wisconsin.
Wisconsin has 426 school districts educating approximately 868,000 students. The current state budget will spend more than $12.3 billion during the next two years on K-12 education, the most amount of money ever spent on education in our state’s history. This amount represents 44 percent of our state’s general purpose revenue (our tax dollars) and appropriately is our number one state financial commitment. In 2008-09 it is estimated local school districts, primarily through property taxes, will spend another $5 billion. When all funding is combined, including the $600 million we receive from the federal government, we spend about $12,600 per student. In 2005-2006, our state spending level ranked Wisconsin 14th nationwide, according the US Census Bureau.

Related: Local, state, federal and global education spending charts.

Madison Superintendent Recommends Three Year Recurring Spending Increase via a November, 2008 Referendum

Channel3000:

Nerad told school board members on Monday night that he’s recommending a three-year recurring referendum.
It’s part of what he called a partnership plan to address the budget shortfall.
The plan would put a referendum on the November ballot for $5 million and would ask voters for $4 million in the two following years.
Nerad said to make up the remaining $3 million gap the district would move $2 million from the district’s fund balance, eliminate $600,000 in unallocated staff, which are positions set aside in case of additional enrollment, and make up the remaining $400,000 through other reductions, which he has not yet named.
“We’re working both sides of this and in the end our kids need things from us, our taxpayers need us to be sensitive and all I can say is we tried every step of putting these recommendations together to be responsive on both fronts,” said Nerad.

Andy Hall:

The measure, a “recurring referendum,” would give the district permission to build on the previous year’s spending limit increase by additional amounts of $4 million in 2010-11 and another $4 million in 2011-12. The measure would permit a total increase of $13 million — a change that would be permanent, unlike the impact of some other referendums that end after a specified period.
Approval of the referendum would cost the owner of a home with an assessed value of $250,000 an estimated $27.50 in additional taxes in the 2009-10 school year. That represents an increase of 1.1 percent of the School District’s portion of the tax bill.
But for at least the next two years, the schools’ portion of that homeowner’s tax bill would decline even if the referendum is approved, under the plan developed by Nerad and Erik Kass, assistant superintendent for business services.
They estimate the tax bill for 2010-11 would be $27.50 lower than it is now, and the bill the following year would be about $100 below its current level if voters back the referendum and the School Board implements proposed changes in accounting measures.

Tamira Madsen:

In the first year, the referendum would add an additional $27.50 onto the tax bill of a $250,000 home. Another initiative in Nerad’s recommendation, drawn up along with Assistant Superintendent of Business Services Erik Kass, is to enact changes to help mitigate the tax impact of the referendum. Nerad and Kass said these changes would decrease taxes for homeowners in the second and third year of the referendum.
One aspect of the proposal would return $2 million of an equity to the taxpayers in the form of a reduced levy in the Community Services Fund (Fund 80) for the 2009-10 school year. The second part of the tax impact referendum would be implementation of a Capital Expansion Fund, called Fund 41, in an effort to levy a property tax under revenue limits to spread the costs of facility maintenance projects over a longer period.
Nerad said the referendum process has been a deliberative process, and he’s been cognizant of weighing board members and community questions.

Links:

Links:

What is Public Education?

Lisa Graham Keegan – an adviser to McCain’s 2008 campaign:

One constant cry in the debate over educational reform is that we must save our public schools. But proponents of that argument assume that a public school system must be exactly what we have today: schools clustered in districts governed by centralized bureaucracies that oversee every detail of what goes on in individual schools, from budgets to personnel to curricula. That’s like saying that our steel industry should center on open-hearth furnaces and giant corporations rather than the nimble mini-mills that have largely superseded them. Let’s agree, for argument, that a public school system is a good thing: but why should it look just like it does today—which is what it looked like 50 years ago?
There’s nothing sacrosanct, after all, about the current structure of our public education system. Its roots go back to the nineteenth century, when a geographical community would club together to hire and pay a teacher and later, when things got more complicated, would tax property to provide a local school and then appoint or elect a few people to a small board that would oversee it and hire its teacher. As the communities grew into towns and cities, it seemed logical to expand the governing mechanisms already in place. Tiny school boards slowly swelled into today’s bloated and dysfunctional school districts, responsible for running not one but 5 or 25 or 50 schools.
If we want to save the public schools, we mustn’t confuse the ideal of public education—that every child has the right to a good K-12 education at public expense—with any particular system, including the one we’ve got. Surely we can come up with a modernized definition of public education fit for a new millennium. In Arizona, where I’m Superintendent of Public Instruction, that’s just what we’re trying to achieve. Our new approach, aimed at shifting power from bureaucrats to students and families, has three key, equally essential parts: student-centered funding, parental choice, and tough, objectively measurable, standards.
Start with student-centered funding. In Arizona, we’ve all but replaced an older and more typical system, in which school districts assess and use local property taxes to fund schools, with one in which the state raises the money (including for capital construction) through a statewide tax, straps an equal amount of it to each student’s back, and releases it only when he walks into the school of his choice.
Today’s district is a rigid command-and-control system that offers dissatisfied parents no choices except, if they don’t like the district school, to send their kids to private school or to home-school them. Moreover, like the Soviet Union with its five-year plans, the districts do a poor job of management, for the reason F. A. Hayek pointed out: command-and-control systems suffer from an information deficit. How can a distant district office bureaucrat know how to run a school better than the principals and teachers who work there? Too often, the district just lays down a single set of policies to govern all its schools, imposing one-size-fits-all curricula and disciplinary policies on schools that may have very different needs. The system also seems impervious to reform from within. In my experience, those who join district boards, even those who start out reform-minded, eerily become co-opted and wind up defending the system tooth and nail. It’s just like watching Invasion of the Body Snatchers.
If you need an additional reason to abolish the traditional property-tax funding system, consider this: it’s unfair. Funding education through local property taxes is deeply regressive. It lets rich districts spend more per pupil, at much lower tax rates, than poor districts. After all, a rich district’s citizens who pay $3,000 per year on their $300,000 houses are paying 10 percent in taxes; the poor district’s citizens who pay $1,200 on their $100,000 houses are paying 12 percent.

The Green Bay School District, currently run by incoming Madison Superintendent Dan Nerad spent $11,441 per student ($232,232,000 total budget) in 2006/2007 while Madison spent $12,422 per student ($329,596,000 total budget) during the same period according to School Facts 2007 by WISTAX.
A few other interesting comparisons between the Districts (2006/2007):

Equity Fund Balance Enrollment Low Income Staff % Revenues from Property Taxes
Green Bay $21,900,000 (9.3%) 19,863 44.9% 2445.6 31.8%
Madison $18,437,000 (6%) 24,908 44.1% 3544.6 67.9%

Related: On education, McCain & Obama may not be far apart.

The Spending Side of the Higher Education Equation

Scott Jaschik:

Across sectors of higher education, only a minority of spending by colleges supports direct instructional costs, according to a report being released today as part of an effort to reframe the debate over college costs.
“The Growing Imbalance: Recent Trends in U.S. Postsecondary Education Finance,” is the result of an unusual attempt to change the way colleges and policy makers analyze higher education. The report — issued for the first time today and now to be an annual project — examines not only revenues, but how colleges actually spend their money.
After years in which people have read about tuition going up, and about state support covering smaller shares of public higher education budgets, the idea is to focus on what results from these and other trends. Some of the findings challenge conventional wisdom — such as the widely quoted belief that the top expense for higher education is the personnel costs associated with professors and other employees.
The report was produced by the Delta Cost Project, part of the Lumina Foundation for Education’s Making Opportunity Affordable program. The overarching thesis of the work is that higher education will do a better job of serving students if everyone is aware of where the money goes — not just how much college costs. By examining the different spending patterns at different types of institutions, the report notes growing gaps among sectors and among items receiving financial support. For example, spending per student at private research universities is almost twice that of public research universities.

Where Have all the Students Gone? An Update

An update to Barb Schrank’s November, 2005 post:

Comments from a reader:

At $6,000 per child that’s about $16 million per year. At $9,000 per child, that’s about $23 million per year. If we kept 332, that would be $2-3 million more per year.
Also, MMSD not only lost students, which has a negative effect on what the district gets under revenue caps, we’ve increased our low-income population, which means that for every dollar the district gets, more of those dollars need to be spent on non-instructional services.
If the district does not consider the economic development implications of its decisions, we’re likely to

  • see more go to school outside MMSD, or
  • for the non-low income students who go to school here increased family dollars will be spent on private aspects of education- lessons, tutoring, etc.

Madison’s population in 2000 was 208,054 and is estimated to be 223,389, according to the census bureau. Madison’s poverty rate is estimated to be 13%, according to the Small Area Estimates Branch [Website].

District Enrollment
2000-2001
Enrollment
2006-2007
Per Student Spending (06/07 Budget) Administrators Total Staff ACT % Tested (05-06) ACT Comp Score
Madison 25,087 24,755 $12,422 91.5 3544.6 61.1 24.2
Verona 4222 4540 $12,113 22 603.4 69.6 23.6
Middleton-Cross Plains 5125 5640 $12,822 21 756.3 73 24.5
Waunakee 2836 3357 $11,987 14 427.6 70.7 23.3
Sun Priarie 4776 5946 $11,238 20 741.3 62.6 23
McFarland 1951 2017 $11,853 9.5 251.2 64 23.7
Monona Grove 2702 2885 $12,289 13 388 71.4 22.6
Oregon 3430 3588 $11,572 15 465.1 59.2 23.2

Data sources:

Thanks to a number of readers for the updated information.

Wisconsin K-12 Tax & Spending Outlook

Milwaukee Journal-Sentinel Editorial:

Another year and deeper in debt.
No, that’s not some sad-eyed, old country ballad. It’s the state of Wisconsin’s long-term finances.
To pay for highways, buildings and environmental programs over the past decade, the state has increased long-term debt by 87%, a trend that if left unchecked will surely mean increasingly difficult budget decisions down the road.
The Journal Sentinel’s Steven Walters noted in a recent report that the Legislative Fiscal Bureau says the state had $8.28 billion in such debt in 2006, up from $4.41 billion in 1996 (www.jsonline.com/689757). The period studied covered the leadership of Gov. Jim Doyle, a Democrat, and Republicans Scott McCallum and Tommy G. Thompson.
In effect, the governors, with legislative acquiescence, have made politically advantageous decisions to have their favorite programs and pay for them later. It’s basically credit card budgeting.
But the bill always comes due.
As Todd Berry, president of the Wisconsin Taxpayers Alliance, told Walters, the growing debt is a risk. Principal and interest payments on general-obligation bonds will exceed $700 million for the first time this year. Payments on transportation bonds will cost $174 million.
While state officials say the debt load is manageable, a major bond agency, Standard & Poor’s Ratings Services, last week changed its rating outlook from “positive” to “stable.”
Other long-term trends make such budget moves all the more troublesome. Per-capita income in Wisconsin is about $4,000 a year less than in Minnesota, for example, a gap that has widened. And the number of elderly is expected to jump 90% from 702,000 in 2000 to near 1.34 million by 2030 while the percentage of working age people is expected to decline from 61% to 57%, meaning fewer taxpayers supporting more people in need of services. Add to that the need to replace aging roads, bridges and sewers.

Clearly, we are unlikely to see significant increases in redistributed state tax dollars to “rich” school districts like Madison [2007-2008 Citizen’s Budget].
Related: K-12 Tax & Spending Climate:

According to the Wisconsin DPI, per student spending in Wisconsin has increased by 5.1% annually, since 1987. The Madison School District increased at a 5.25% rate during that time. Clearly, our public schools are attempting to address more issues than ever, from academics to breakfast, special education and health care.

Georgia’s “Appropriate Education” Financial Definition

Jim Wooten: The work done by former state representative and school board member Dean Alford and others is groundbreaking. Three efforts are especially striking. One — important but not all that novel — is to determine precisely how much money is needed to produce an educated child. Final numbers are about a month away, but … Continue reading Georgia’s “Appropriate Education” Financial Definition

MMSD Misses Notification Date, Will Again Provide Private School Bus Rides

Anita Clark: The Madison School District said Tuesday it will provide bus rides for children attending private schools this year because it missed a legal deadline to notify families that the service was ending. Hoping to save about $229,000, the School Board voted last spring to abolish bus routes that carried 208 children to six … Continue reading MMSD Misses Notification Date, Will Again Provide Private School Bus Rides

An Interesting Report on the Financial Condition and Position of the Milwaukee Public Schools

Wisconsin Taxpayers Alliance and the Metropolitan Milwaukee Association of Commerce [330K PDF]: As will be seen, MPS already has many challenges: Declining student numbers and a host of viable options for K12 students and their families; Rising and, in some cases, difficult to control costs. Though MPS’s finances are similar to other large, diverse districts, … Continue reading An Interesting Report on the Financial Condition and Position of the Milwaukee Public Schools

School choice has saved $444 million

Friedman Foundation; Dr. Susan L. Aud: A landmark new study finds that school choice programs throughout the country generated nearly $444 million in net savings to state and local budgets from 1990 to 2006. Contrary to opponents’ predictions, the analysis also finds that instructional spending per student has consistently gone up in all affected public … Continue reading School choice has saved $444 million

Concessions Made in Advance of MTI Negotiations by a Majority of the Madison School Board

It will be interesting to see how voters on February 20 and April 3 view this decision by a majority of the Madison School Board: Should the Board and Administration continue to give away their ability to negotiate health care benefits ($43.5M of the 2006/2007 budge) before MTI union bargaining begins? Read the 2005 MMSD/MTI … Continue reading Concessions Made in Advance of MTI Negotiations by a Majority of the Madison School Board

School Finance: K-12 Tax & Spending Climate

School spending has always been a puzzle, both from a state and federal government perspective as well as local property taxpayers. In an effort to shed some light on the vagaries of K-12 finance, I’ve summarized below a number of local, state and federal articles and links. The 2007 Statistical Abstract offers a great deal … Continue reading School Finance: K-12 Tax & Spending Climate

Poor Management Compels “No” Vote

After being decisively defeated in two spending referendums last year, the administration and a majority of the Madison School Board haven’t learned that the voters are sick and tired of runaway spending and poor management. In a demonstration of true arrogance, after being told in May 2005 that flat enrollment did not justify a new … Continue reading Poor Management Compels “No” Vote

Comparing Low Income with Teacher Attributes

The question was recently asked on this site as to how teacher experience compared with poverty levels by school. Using the 2004-05 school data provided in the 2005-06 detailed budget, I compared low-income percentages with: number of years’ experience; % of teachers with advanced degrees; student / teacher ratio. Below are summary charts for all … Continue reading Comparing Low Income with Teacher Attributes

Weighted Student Formula : Putting Funds Where They Count in Education Reform

This is an excerpt from the conclusion of an recent paper posted on the Education Working Paper Archive by Bruce S. Cooper, Timothy R. DeRoche, William G. Ouchi, Lydia G. Segal, and Carolyn Brown. WSF stands for Weighted Student Formula, a means of budgeting that assigns money to students based on a number of factors … Continue reading Weighted Student Formula : Putting Funds Where They Count in Education Reform

Counting the Cash for K-12

DeHavilland Blog: Excellent report here on education spending titled “Counting the Cash for K-12: The Facts About Per-Pupil Spending in Colorado [pdf],” published by the Independence Institute. While the report is focused on education spending in Colorado, they use national data in several instances for comparative purposes, and the information they provide is relevant to … Continue reading Counting the Cash for K-12

Madison Schools, New Population, New Challenges

Sandy Cullen: Twenty-five years ago, less than 10 percent of the district’s students were minorities and relatively few lived in poverty. Today, there are almost as many minority students as white, and nearly 40 percent of all students are considered poor – many of them minority students. And the number of students who aren’t native … Continue reading Madison Schools, New Population, New Challenges

San Francisco Schools: Student Funding Follows Kids

Lisa Snell:San Francisco is one of a handful of public school districts across the nation that mimic an education market. In these districts, the money follows the children, parents have the right to choose their children’s public schools and leave underperforming schools, and school principals and communities have the right to spend their school budgets … Continue reading San Francisco Schools: Student Funding Follows Kids

A History of Changes at West

Last spring a longtime parent at West HS was asked to write a description — content area by content area — of the curriculum changes that have occurred at West HS in recent years that have affected the academic opportunities of West’s “high end” students. Below you will find what she wrote. It includes changes … Continue reading A History of Changes at West

A Few Notes on the Superintendent’s Evaluation & Curriculum

Several writers have mentioned the positive news that the Madison Board of Education has reviewed Superintendent Art Rainwater for the first time since 2002. I agree that it is a step in the right direction. In my view, the first responsibility of the Board and Administration, including the Superintendent is curriculum: Is the Madison School … Continue reading A Few Notes on the Superintendent’s Evaluation & Curriculum

Wisconsin School Spending Increases 4.6%, largest since 2001-2002

Wistax: Wisconsin public school spending rose 4.6% in 2004-05, the largest increase since 2001-02 (5.7%). Spending on instructional support for such items as staff training, library services and athletics rose 7.7%. Expenditures for instruction and for building and grounds were both up 4.8%. Spending per student rose 4.8%, slightly faster than the total because enrollments … Continue reading Wisconsin School Spending Increases 4.6%, largest since 2001-2002

Secrets of Success: America’s system of higher education is the best in the world. That is because there is no system

The Economist via Tom Barnett: Wooldridge says three reasons account for this: 1) the Fed plays a limited role, unlike in a France or Germany; 2) schools compete for everything, including students and teachers; and 3) our universities are anything but ivory towers, instead being quite focused on practical stuff (Great line: “Bertrand Russell once … Continue reading Secrets of Success: America’s system of higher education is the best in the world. That is because there is no system

Minneapolis Public Schools Offer Virtual Classes

Sam Dillon: Physical education is one of 27 online courses now offered by the Minneapolis Public Schools, which had none four years ago. Thousands of other districts nationwide are adding online courses, said Susan Patrick, director of educational technology at the federal Department of Education. “We’re seeing just tremendous growth,” Ms. Patrick said, “in enrollments … Continue reading Minneapolis Public Schools Offer Virtual Classes

Superintendent Rainwater’s Letter to Governor Doyle

Madison School Superintendent Art Rainwater via WisPolitics : Thank you for making public education in Wisconsin a priority in the budget you presented to the Legislature – a proposal that protected Wisconsin’s overburdened property tax payers and the children of the state. Unfortunately, the budget before you resembles little of what you offered for our … Continue reading Superintendent Rainwater’s Letter to Governor Doyle

June 17 MMSD Asks PTOs and Presumably Parents to Contact Legislators

For Legislative Fiscal Bureau policy papers and membership lists of relevant committees, go to: http://www.schoolinfosystem.org/mmsd/leg/ FROM JOE QUICK, MMSD LEGISLATIVE LIAISON If you have already received this Update, our apologies. We are trying to inform parents about this important budget issue before the Legislature votes next week. Dear PTO/A Leaders: The attached information outlines changes … Continue reading June 17 MMSD Asks PTOs and Presumably Parents to Contact Legislators

Sherman Middle School Principal Mandates Change by Fiat – Renames Afterschool an 8th hour and Kicks Academic Performance Music Out to Afterschool

The current music education upheaval at Sherman Middle School is about what Madison values for our children’s education, such as academic music education during the school day and who makes those decisions. It is not about money, because teacher allocations will be needed to teach the 8th hour same as during the school day. Making … Continue reading Sherman Middle School Principal Mandates Change by Fiat – Renames Afterschool an 8th hour and Kicks Academic Performance Music Out to Afterschool

Mr. Rainwater, I am looking at you. And I�m more than disappointed.

Dear Editor, I just returned from the annual Madison Strings Festival with a warm feeling in my heart. It wasn�t the warmth of joy, however, despite the lasting echoes of 1,000 children playing music. It was the embers of rage beginning to kindle. For the fourth time, the Strings Festival was tainted by rumblings of … Continue reading Mr. Rainwater, I am looking at you. And I�m more than disappointed.

Schools Chiefs Lead The Way in Pay Trends

From Education Week an article by Catherine Gewertz New data from a survey of more than 500 school districts show the average salary of their superintendents has risen by more than 12 percent over the past decade in inflation-adjusted dollars, and that of their high school principals by more than 4 percent, while the average … Continue reading Schools Chiefs Lead The Way in Pay Trends

MMSD Administration’s Cost Analysis of Elementary Strings is Out of Tune – A Critique

If the City of Madison is to have confidence in the School Board’s decisions, a fair and equitable budget process that is clear and understandable to the public is essential. In late April 2004, the District Administration responded to the Bill Keys’ question about the cost of the District’s elementary strings program. The following letter … Continue reading MMSD Administration’s Cost Analysis of Elementary Strings is Out of Tune – A Critique