Education Funding CUTS - Blue Delaware€¦ · Funding Cuts. General Assembly dropped the can and...
Transcript of Education Funding CUTS - Blue Delaware€¦ · Funding Cuts. General Assembly dropped the can and...
Education
Funding
CUTS
Impact on
Delaware Public
Schools
FY 2018
Housekeeping
There are 4 Primary School Taxes in Delaware
for each Traditional School District
Tax Who Can Change?
OperatingResidents only via
Referendum
Match School Board; Annually
Tuition School Board; Annually
Debt
ServiceSchool Board; Annually
Abbreviations Used in Presentation:
• ESF: Education Sustainment Funds
• GA: General Assembly
• BOE: Board(s) of Education
• RIF: Reduction in Force (aka, lay-offs)
History of Ed. Funding Cuts
General Assembly dropped the
can and kicked it down the road for
at least the last decade
Result: $395 million budget
shortfall leading into FY2018
$37 million to be gutted from public
education, comprising ~10% of
shortfall in 2 Categories:
1. Education Sustainment: $22
million cut
2. Charter & District Operations:
$15 million cut
2007
2017
HATCHET JOBWhat are the cuts impacting?
EDUCATION SUSTAINMENTDISTRICT & CHARTER
OPERATIONS
-$22 million -$15 million
People “NOT People”
• Teachers
• Paras
• Secretaries
• Custodians
• Principals, etc.
• Energy
• Transportation
• Utilities (Water, Internet)
• Classroom Supplies
• Textbooks, etc.
3 Doors DownWhat is Governor Carney proposing Districts do about this?
1
For every position they eliminate, we’ll
shift the State’s portion of that position’s
funding over to the District Operations
fund to help offset that ($15 million) cut.Also State of Delaware
Due to reductions in Education
Sustainment funding ($22 million), if
Districts must lay off staff, that decision
should be up to Districts alone.State of Delaware
The Position Buy-Back
Door Number 1
Gov. Carney’s “Position Buy-BaCk”
1
+ $45,000
-$14,955,000in “Not People”
TEACHER
$45k - State
$15k - Local Unrestricted
$60k - Total
FIRED
TEACHER
$45k - State
$15k - Local Unrestricted
$15k - Total
Lather
RIF
Repeat
-$22,000,000in People
-$15,000,000in “Not People”
FUNDING CUTS
About that $15k in Local Unrestricted funds left
from the Position “Buy-Back”
Gov. Carney’s*
Education Sustainment
“Match Tax”*That the General Assembly Actually Has Write Into the Budget and Authorize First
Door Number 2
2
Match Tax exists today. It does not require referendum to raise today.
Fictional Example of Match Category
The General Assembly authorized Districts to “Match” funds provided for Reading Resource
Teacher Units with a 60/40 state/local split.
The GA values this unit at $65,000 and authorizes Districts to increase their Match Tax rate
to generate the 40% local share of the unit value, the State contributes the remaining 60%
share.
Gov. Carney’s* ESF “Match Tax”*That the General Assembly Actually Has To Authorize First
School Boards annually adjust Match Tax rates to raise revenue to spend on categories of
services “approved” by the General Assembly for matching. Gov. Carney has proposed a new
category eligible for “Match”: Education Sustainment to replace Districts’ portion of the $22
million cut; however the GA must create this new category before Boards can actually use it.
The GA will not take action on this until the State Budget is passed: June 30.
Gov. Carney’s* ESF “Match Tax”*That the General Assembly Actually Has To Authorize First
2
TEACHER
$45k - State
$15k - Local Unrestricted
$60k - Total
$15k - Total
TEACHER
$45k - State
$15k - Local Unrestricted
$45k - Local Match
$60k - Total
“New” Teaching Unit funded
from 100% Local Funds
Shift of State $ to Local $
2
Sustainability Concerns with this approach:
Approved Match Tax categories are not permanentThe General Assembly can sunset Match category approval with each new budget.
Historically, the General Assembly has sunset State Match funds but not Boards’ authority to
collect their local match share. When this happens, additional local funds are needed to
replace the removed State “Match” for any positions or programs that were funded through
the 60/40 State & Local Match.
In this case, there is NO State Match to begin with. This is a FULL revenue shift
from the State to Property Tax payers in each District & we must rely on the GA
to continue authorizing ESF “Match” with each new Budget to utilize ESF Match Tax
Gov. Carney’s* ESF “Match Tax”*That the General Assembly Actually Has To Authorize First
We can’t believe the
State is pawning its
responsibility for
taxation off to Districts.
They’re politicizing
Boards of Education!
NO MATCH!
We really need that
teaching unit though.
Otherwise we’re denying
services to children.
Board of Education Also Board of Education
2
Sustainability Concerns cont'd:
Enacting this change effectively kills future chances of Districts passing
Operating Referendums
Gov. Carney’s* ESF “Match Tax”*That the General Assembly Actually Has To Authorize First
Ethical Concerns with this approach:
Board of Education members are not elected to manage taxation on
behalf of the State. They are elected to manage taxation on behalf of the
District they represent.
If the Governor and General Assembly truly desire a revenue shift from
the State to Property Tax payers, they must grant Boards of Education the
authority to adjust Operating Tax rates as they do Match Tax, Tuition Tax,
and Debt Service Tax rates: Annually based on need with constraints.
Do not piecemeal this shift with Match Tax changes.
Reading
Resource
Teacher
State Match Local Match
General Assembly De-Authorizes
Reading Resource State Match
Local Match
Uh,
guys?
Districts Have 2 Choices
Reading
Resource
Teacher
No Reading Resource
Teacher
ORReading
Resource
Teacher
Local Unrestricted Local Match
Reading Resource Teacher
Supported by 100% Local Funds
What Happens When a Match
Category is De-Authorized?
2
We have no guarantee that the General Assembly will even authorize Boards of
Education to raise Match Funds to cover the cuts to ESF.
Authorizing language (or lack of) would not be seen until GA issues approved
budget on June 30th.
Staff affected by potential cuts MUST be notified of their status by certified mail
by May 15th.
IF Boards are authorized, no guarantee that ESF Match will continue to be
authorized in subsequent years.
No guarantee that Boards will opt to use the new Match Tax authority at all.
Altering the Match Tax to cover for State funding cuts effectively destroys the
Operating Referendum for all Districts and places all Districts in very real
financial danger moving forward.
2
Shifting Local Unrestricted Funds to Cover the $22 million ESF Cut
IF chosen, services currently supported by Local Unrestricted funds would be greatly reduced or eliminated completely
Guidance CounselorsSchool PsychologistsTransportationEPER for Coaches & Academic ClubsAcademic DeansSports, and more
All Unrestricted Funds that are shifted WILL count toward Local Cost Per Student formula for Charter Payments
A Shifty Thing to Do
TEACHER
$45k - State
$15k - Local Unrestricted
$60k - Total
$15k - Total
TEACHER
$45k - State
$15k - Local Unrestricted
$45k - Local Unrestricted
$60k - Local Unrestricted Total
“New” Teaching Unit funded from 100% Local
UNRESTRICTED Funds
3
Services currently supported by Local Unrestricted
funds would be greatly reduced or eliminated completely
Guidance Counselors,
School Psychologists,
Transportation,
EPER for Coaches & Academic Clubs,
Academic Deans,
Sports, and more.
STILL a full shift of State $ to Local $
but this option has additional fiscal concerns
Districts would contend with in the future.
What We Know
Governor Carney & the State’s positions are clear on Education Funding:
Completely shift $22 million in funding from the State to Local Property
Taxes
Further reduce State Education spending by additional $15 million
Kill (but not eliminate the need for) Operating Referendums by proposing a
drastic change to the Match Tax and taxing authority of Boards of Education
Continue to abdicate the responsibility to provide quality education to the
children of Delaware by ignoring the fundamental structural failures of our
education funding system.
Speak to your State Legislators
the Budget is in their hands.
DEMAND Public Schools Be
Fully Funded!
Thank you for reading.
@ThoseInFavor
bluedelaware.com