School Finance

Zachary Janowski at the Yankee Institute has an interesting take on school efficiency in Hartford, CT:

Ten Connecticut school districts can produce two high
school graduates for the price of one Hartford high school diploma,
according to Department of Education data.

The most recent 13 years of education, representing kindergarten through 12th grade, cost $165,275 in Hartford. With a graduation rate of 69.3 percent, the cost per diploma in Hartford is $238,492.

In 2010, Hartford’s costs were less than double the costs of the most efficient school districts.

Presumably, students who drop out gain some benefits from
their schooling, even if they don’t receive a degree. But a partial high
school education is not much of an asset in the labor market relative
to completion of a rigorous secondary program and vocational training.
This analysis reveals just how much of Hartford’s K-12 investment is
being squandered for likely little gain in outcomes for kids who don’t
make it to graduation day.

The Yankee Institute’s analysis reveals an important side of the
“doing more with less” coin: Schools that can deliver higher quality and
better outcomes for the same...

Protestors on UC campuses in California are focusing attention on the rising cost of higher education
in the state’s public university system, which has seen cuts in state
support of over a billion dollars. A Berkeley administrator sums up the
concern:

“The rapidly rising fees give us all heartburn,” said
Gibor Basri, the vice chancellor for equity and inclusion at Berkeley,
who has met with the protesters several times. “We don’t believe that
higher education is a private right but a public good.”

The funding challenge in higher ed has implications for K-12 spending
as well. Society has a responsibility to fund education — both to
provide equality of opportunity for all children and to develop human
capital for the improvement of civic life and our economy. But what to
do when taxpayers have already provided massive increases in funding
after inflation over a sustained period, as they have for K-12 over the
past several decades?

We can’t afford to focus only on the revenue side of the equation
anymore if our goal is to ensure that quality education remains a public
good. Just...

Andrew Boy
Founder and executive director of Columbus Collegiate Academy

Guest blogger Andrew Boy is the founder and executive director of Columbus Collegiate Academy (CCA), a Fordham-authorized middle school serving students in grades six through eight.

As school levies fail across central Ohio, I am concerned and
disappointed to see so many school districts quickly threaten to reduce
the quality of our children’s education. Providing an excellent
education for our children may be the single most important thing we
can do as responsible citizens.

To
give hope to our children in tough economic times, we must learn to do
more with less. When I read the statement made by Westerville’s
school-board president, “We’ll be looking at state-minimum
requirements,” I lost confidence in the leadership of the district in
which I live. As the operator of the Columbus Collegiate Academy, a
charter school on the Near East Side, I run a school on a shoestring
budget. Unlike traditional district schools, we don’t have access to
local property-tax dollars.

When I see levies on the ballot, I can only dream about what we
could do for our students, 94 percent of whom are minorities and 88
...

Last night, Rhode Island’s legislature passed a sweeping reform of its public-sector retirement system.
It cuts retiree benefits, mostly by suspending cost of living
adjustments, and institutes a cheaper hybrid plan with a 401(k)-like
private account component, and it should save taxpayers billions of
dollars in coming years.

Far-reaching as the bill is, however, this outcome is something of a
failure, good only by comparison to the tragedy that would have ensued
had lawmakers done nothing. Rhode Island waited until it was on the cusp
of disaster to make desperately needed changes. By comparison, Utah’s
reform, described in our recent series of case studies,
came about because lawmakers were thinking years into the future about
the risk pension shortfalls presented. They gathered support for changes
to the retirement system to head off a crisis before it became
inevitable.

The short-sightedness of the Ocean State shouldn’t be called
“courageous” simply because Rhode Island changed course at the last
possible moment to avert disaster. The state may provide a model for
other profligate jurisdictions like Illinois, showing them that change
is possible and following...

We are going to see increasing in-fighting among big government types
as big-spending school districts compete for resources with the rest of
the agenda supported by the public fisc. Schools are increasingly going
to lose those battles, which they’re not used to. Today’s example comes
from Montgomery County, Maryland, where I live.

Democrats on the county council have been butting heads with the
school board for months over skyrocketing education budgets, culminating
in a battle to repeal Maryland’s maintenance of effort requirement:

But the details of Maryland’s maintenance of effort law
have proved unwieldy in tough budget times. Its authors never
anticipated a housing bubble nor articulated a logical process for
working through it.

The debate has largely played out in Montgomery County. The county’s
nationally recognized schools have long been a generously protected
fiscal priority, and the county council exceeded minimum spending levels
by hundreds of millions of dollars over the past decade. When the
budget outlook worsened, though, the county council said it couldn’t
maintain the same level of investment.

“The county government was hurt by the fact that we were doing over

...

This soapbox has a great view

Mike and Janie bite off big topics in this
week’s podcast—from the repeal of SB5 to racial imbalances in gifted-ed
programs to online learning. Amber wants CRPE to name names and Chris starts
subbing for the pension benefits. You’re gonna want to sit down for this.

Illinois may finally be addressing its dysfunctional teacher retirement system with meaningful, bipartisan reform:

The sweeping pension changes, presented by House Republican Leader Tom Cross and Democratic Speaker Michael Madigan, would establish three retirement options for government workers to choose from going forward. State employees could keep their retirement benefit in place but pay more; take smaller benefits but pay no more; or set up a 401(k)-style plan that would give employees more control of their investments but also see them roll the dice on the markets.

I've made no secret of how little I think of last year's "reform" in Illinois, which simply took money out of the pockets of young teachers to make up for the bad choices made by legislators and unions. This is a much better start, and it's cheering that the Democratic leadership is on board.

Labor doesn't like it, with the Illinois AFL-CIO's president claiming this measure would reform the pension system "on the backs of working families." But working people are going to be hurt no matter what, since the retirement system is in terrible fiscal shape. The question is whether reform shares the pain or soaks only new...

Illinois may finally be addressing its dysfunctional teacher retirement system with meaningful, bipartisan reform:

The sweeping pension changes, presented by House
Republican Leader Tom Cross and Democratic Speaker Michael Madigan,
would establish three retirement options for government workers to
choose from going forward. State employees could keep their retirement
benefit in place but pay more; take smaller benefits but pay no more;
or set up a 401(k)-style plan that would give employees more control of
their investments but also see them roll the dice on the markets.

I’ve made no secret
of how little I think of last year’s “reform” in Illinois, which simply
took money out of the pockets of young teachers to make up for the bad
choices made by legislators and unions. This is a much better start, and it’s cheering that the Democratic leadership is on board.

Labor doesn’t like it, with the Illinois AFL-CIO’s president claiming
this measure would reform the pension system “on the backs of working
families.” But working people are going to be hurt no matter what, since
the retirement system is in terrible fiscal shape. The...

Rhode Island's teacher pension system is a mess. The annual cost of the retirement system has doubled since 2003 and will likely double again by 2013. Education Sector has released a report today looking at state treasurer Gina Raimondo's plan to stabilize the pension fund by switching to a hybrid plan and spreading the fiscal pain among taxpayers, retirees, current employees, and new workers.

Ed Sector's analysis hits the important high points of the crisis in teacher pensions: this is a crucial education policy issue (because it's eating up needed funds that no longer reach the classroom), that existing defined-benefit pensions mistreat the majority of teachers in favor of a select few, and that reforms ought to share the pain among stakeholders rather than soak new teachers.

The writers (rightly) single out Illinois as a bad example that Rhode Island and other states should avoid. As I noted a few weeks ago, the "reform" there essentially amounts to theft from all new teachers. The RI plan is going to be painful for a lot of people, but it's smarter and fairer.

Go check out the report. I know it's Friday, but it's a quick read. The...

The Education Gadfly

Everyone's favorite guest host, Dave DeSchryver, joins Mike to discuss the 2011 NAEP results, ESEA reauth, and charter schools in middle-class locales. Amber dissects the Chinese education system and Chris extols the virtues of eating red meat.

[powerpress]

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