Voucher program gets outsized share of K-12 funding increase

Students who receive tuition vouchers to attend private religious schools will get nearly 10 percent of the K-12 education funding increase that Indiana lawmakers included in the 2017-19 state budget.

That’s an outsized share given that voucher students make up only about 3.5 percent of the students who receive funding from the state.

Per-pupil funding is less for voucher students than for public school students – voucher students get either 90 percent or 50 percent of the money that would otherwise go to the public schools where they live, depending on family income. But total funding for vouchers will increase because the number of voucher students is expected to continue to grow while public school enrollment is flat.

Projections in school funding data provided by the House Republican caucus show the number of voucher students increasing by over 10 percent in the next two years.

Indiana’s voucher program started small in 2011 but has grown rapidly as new pathways were added. It is now possible for nearly any child from a low-to-middle-income family to qualify by first being awarded a tuition scholarship from a state-approved scholarship granting organization.

The state is spending $146 million on vouchers this school year. The cost is projected to increase to $156.6 million next year and $167.4 million the following year. Continue reading

Advertisements

Quick takes on the 2017 legislative session

A session of the Indiana General Assembly is kind of like a tornado. When it’s over, you crawl out of your shelter, look around and assess the damage.

Lawmakers finished their business and left the Statehouse on Saturday morning. Here’s a quick look at some of the wreckage they left on the education front.

School funding

The most important thing the legislature does for education is to allocate funding for schools. Education funding is the lion’s share of the state budget, but you can’t say lawmakers were very generous.

On average, per-pupil funding will increase by only 1.1 percent in 2017-18 and 1.3 percent in 2018-19. That’s not good enough. School funding in Indiana has never caught up to what it was before the Great Recession, and private school vouchers account for an ever-growing slice of the school funding pie.

The funding formula continues a recent trend of directing bigger funding increases to growing suburban schools and less money to urban and rural schools. Funding is down a lot for the complexity index, the part of the formula that boosts support for schools serving more poor children.

Appointed superintendent

Lawmakers delivered on a priority for Gov. Eric Holcomb: making superintendent of public instruction an appointed rather than an elected position. In a compromise between the House and Senate, the new system won’t take effect until 2025 and the appointed superintendent must be an Indiana resident.

Continue reading

State funding lags for high-poverty schools

The state budget bill approved last month by the Indiana House continues a trend that we’ve seen for several legislative sessions: School districts that primarily serve affluent families are getting decent funding increases while high-poverty school districts are losing out.

But the story is more complicated than a simple tale of taking from the poor and giving to the rich. It also touches on the innate difficulty of coming up with an accurate and reliable measure of student poverty. For some districts, another factor in play is the current atmosphere for immigrant families.

For over 20 years, Indiana has used a school funding device called the Complexity Index to direct more money to high-poverty schools, which face more complex challenges in educating students. The House budget reduces Complexity Index funding by 15 percent, or $136 million.

The result: High-poverty school districts, those that rely for extra funding on the Complexity Index, could face financial challenges in the two-year period covered by the budget. The legislation is now being considered by the Senate, which could make changes in the House-approved school funding formula.

According to data from Libby Cierzniak, an attorney who represents Indianapolis and Hammond schools at the Statehouse, average per-pupil funding would increase three times as much for the state’s 50 lowest-poverty school districts as for the 50 highest-poverty districts under the House budget. Lawmakers could tweak the formula to make the results more equitable, but so far, they haven’t.

“High-poverty school districts, compared to low-poverty school districts, would take the biggest losses,” Cierzniak said.

Why does Complexity Index funding decrease? The short answer, Cierzniak said, is that, according to the poverty measure used in the index, there are fewer poor children in the state than two years ago. Continue reading

Yes for MCCSC

Some of the first posts on this blog argued for the school funding referendum that voters in the Monroe County School Corp. district approved in 2010. Now it’s time to vote again, and the need for a yes vote is as urgent as it was six years ago.

The 2010 referendum authorized a modest increase in local property taxes to supplement the school funding MCCSC receives from the state. The authorization expires after this year. If we don’t vote to extend it, it’s likely staff will be reduced, class sizes will balloon and programs will be cut.

As I’ve written before, it’s easy for people to find a reason to vote no. We can all point to school corporation decisions that we don’t agree with. But voting down the referendum won’t hurt the school board or administrators. It will just hurt our children and grandchildren.

Continue reading

No time for complacency on school funding vote

It’s tempting to think a referendum to continue funding the Monroe County Community School Corp. with a modest property-tax levy will pass this November with votes to spare – just as it did in 2010.

But that could be a mistake. This is a very different election year from the one six years ago. Contests for president and governor are on the ballot, a circumstance that will bring out more and different voters. An anti-establishment mood has swept the country, and that could hurt the MCCSC and its supporters.

Yes for MCCSC graphicAnd it’s likely that many voters will go to the polls with no idea a school funding referendum is on the ballot. The question will be at the bottom, below all the national, state and county contests. It’s important to inform education supporters that they need to vote.

So it’s good to see the school district’s supporters are treating this like a real election campaign. The pro-referendum election committee Yes for MCCSC held a kickoff rally Tuesday, complete with music, signs and talks by students, parents, teachers and officials. The group has put together an informative website. It has lined up support from Bloomington Mayor John Hamilton and others.

Importantly, the website includes a “supply closet” section that details how the referendum money will be used and a property tax calculator that shows what the impact will be on taxpayers.

Continue reading

Another take on Indiana school funding fairness

There are several ways to calculate the per-pupil funding that Indiana school corporations receive from the state. Arguably the fairest and most transparent is to focus on the basic “tuition support” that’s awarded to all districts, plus the complexity index that provides more dollars to higher-needs schools.

If you take that approach, the claim by House Republicans that state funding for schools varies from $5,000 up to $9,500 per student is truly out of whack.

Per-pupil funding for the current year using only tuition support and the complexity index is included in a school funding chart posted to the Indiana Department of Education’s Learning Connections site. You can see that the lowest-funded districts – typically low-poverty schools like those in Hamilton County, which don’t benefit much from the complexity index – fall a bit short of $5,000 per pupil.

But the most generously funded districts don’t get close to what House Republicans said. Indianapolis Public Schools, for example, gets $7,058 per pupil. East Chicago, at $7,526 per pupil, is the highest-funded district (though several charter schools are close).

In a post on Monday, I reported that IPS received $8,300 per pupil. That figure, from a chart generated by a legislative office, included special education funding, full-day kindergarten grants and payments for students who earn an honors diploma and those who enroll in career-education classes.

The honors diploma funding is set by the state and is the same for all schools. Career education funding is supposed to be an incentive to train students for high-demand jobs. Indiana began funding full-day kindergarten in 2011. Special education funding is based on the number of students identified with special needs, with more dollars allocated for those with more severe disabilities.

In other words, these are “below the line” calculations that should not be in play when House Republicans go about trying to “fix” the funding formula.

Most of the variability in per-pupil funding comes from the complexity index, so lawmakers could be tempted to rewrite that formula. But the index is arguably one of the things Indiana does right. This year’s school funding fairness report card from the Education Law Center in New Jersey gives Indiana an A for “funding distribution,” a measure of whether states provide more money to high-poverty schools.

Legislators need to remember that old saying: If it ain’t broke, don’t fix it.

State funding for schools no guarantee of progress

Cynthia Brown, vice president for education policy of the Center for American Progress, argues in a recent Education Week commentary that we should stop using local property taxes to fund schools and shift fiscal responsibility for K-12 education to the states.

Indiana’s experience suggests advocates for equitable school funding should be careful what they wish for. Relying on state revenues to fund schools may result in a simpler, fairer system. But it may also mean that schools are less likely to get the money they need.

Brown builds from the work of the U.S. Department of Education’s Commission on Equity and Excellence, of which she was a member. Its report, issued in February, concluded that efforts to improve the schools should start with equity, including equity in funding.

“States should adopt a state-based system of school financing,” she writes, “one in which states provide all nonfederal resources for education, and districts no longer have the power to raise funds from local property taxes.”

Indiana switched to state-based K-12 funding 2009 as part of a larger “property tax reform” initiative. Generally speaking, the state now pays school general fund expenses, including instruction and most salaries. Local property taxes are used to pay for buildings and transportation. (Voters can choose in a referendum to raise their own property taxes to supplement state dollars for the local school district’s general fund).

No sooner had the switch taken place than the economy hit the skids, state tax revenues nose-dived and then-Gov. Mitch Daniels cut school funding by $300 million to keep the state in the black. Schools are still suffering from that cut, Continue reading