budget season

New budget gives CPS CEO Janice Jackson opportunity to play offense

PHOTO: Elaine Chen
Chicago Public Schools CEO Janice Jackson announced the district's $1 billion capital plan at Lázaro Cardenas Elementary School in Little Village.

Running Chicago’s schools might be the toughest tour of duty in town for a public sector CEO. There have been eight chiefs in a decade – to be fair, two were interims – who have wrangled with mounting debt, aging buildings, and high percentages of students who live in poverty.

Then there’ve been recurring scandals, corruption, and ethics violations. Since she was officially named to the top job in January, CEO Janice Jackson has had to clean up a series of her predecessors’ lapses, from a special education crisis that revealed families were counseled out of services to a sexual abuse investigation that spotlighted a decade of system failures at every level to protect students.

But with budget season underway, the former principal finally gets the chance to go on the offensive. The first operations budget of her tenure is a $5.98 billion plan that contains some good news for a change: 5 percent more money, courtesy of the state revamp of the school funding formula and a bump from local tax revenues. CPS plans to funnel $60 million more to schools than it did last school year, for a total of $3.1 billion. Put another way, it plans to spend $4,397 per student as a base rate — a 2 percent increase from the year prior.

CPS’ total budget comes out to $7.58 billion once you factor in long-term debt and an ambitious $1 billion capital plan that is the focus of a trio of public hearings Thursday night. When it comes to debt, the district owes $8.2 billion as of June 30, or nearly $3,000 per every Chicago resident.

“The district, without a doubt, is on firmer footing than it was 18 months ago, but they’re not out of woods yet,” said Bobby Otter, budget director for the Center for Tax and Budget Accountability. “When you look at the overall picture (the $7.58 budget), they’re still running a deficit. This is now the seventh year in a row they are running a deficit, and the amount of debt the district has, combined with the lack of reserves, leaves them with little flexibility.”

Earlier this week, standing in front of an audience of executives at a City Club of Chicago luncheon, Jackson acknowledged that it had been an “eventful” seven months and said she was ready to focus on strategies for moving the district forward. “I won’t be waiting for next shoe to drop or wasting time and resources waiting for next problem. I want to design a system to educate and protect children.”

“I’m not in crisis mode,” she added.

Here’s what that looks like in her first year when you just consider the numbers. The biggest line items of any operating budget are salaries, benefits and pensions: Taken all together, they consume 66 percent of CPS’ planned spending for the 2018-2019 school year. Rounding out much of the rest are contracts with vendors ($542.6 million, or 9 percent), such as the controversial janitorial deals with Aramark and SodexoMAGIC; charter expenditures ($749 million, or 13 percent); and spending on transportation, textbooks, equipment, and the like (12 percent).

A closer look at how some of those items are allocated offers a window into Jackson’s vision. The Board of Education is scheduled to vote on the plan July 25.

Investing in choice

Earlier this month, the district announced a nearly $1 billion capital plan, funded by bonds, that would support new schools, technology upgrades, and annexes at some of the district’s most popular campuses. The operating budget, meanwhile, accounts for the people and programs driving those projects. It proposes nearly doubling the staff, from 10 to 17, in the office that manages charters, contract programs, and the creation of new schools. It reestablishes a chief portfolio officer who reports directly to the CEO. And it adds expands access to International Baccalaureate programs and Early College STEM offerings. In a letter at the beginning of the 2019 Budget Book, Jackson said such expansions “move the district closer to our goal of having 50 percent of students earn at least one college or career credential before graduating high school.” 

Advocating for students

The budget seeds at least two new departments: a four-person Office of Equity charged with diversifying the teacher pipeline, among other roles, and a 20-person Title IX office that would investigate student abuse cases, including claims of student-on-student harassment.

Leaning into high schools

Fitting for a budget designed by a former high school principal – Jackson was running a high school before age 30 – the plan leans in to high schools, establishing $2 million to fund four new networks to oversee them. (That brings the total number of networks to 17; networks are mini-administrative departments that track school progress, assist with budgeting, and ensure policy and procedures are followed.) And it earmarks $75 million across three years for new science labs at neighborhood high schools. What’s more, it supports 10 additional career counselors to help campuses wrestle with a graduation mandate – set forth by Mayor Rahm Emanuel – that seniors have a post-secondary plan to graduate starting with the Class of 2020.

Throwing a lifeline to small schools

The budget also sets forth a $10 million “Small Schools Fund” to help schools with low enrollment retain teachers and offer after-school programs. It also earmarks an additional $5 million to help schools facing precipitous changes in enrollment, which can in turn lead to dramatic budget drops.   

Supporting modest staff increases

After a round of layoffs were announced in June, the budget plan adds at least 200 teachers. But the district would not provide a clear accounting of whom to Chalkbeat by publication time. Earlier this week, it announced plans to fund additional school social workers (160) and special education case managers (94).

The district plans to add positions for the upcoming 2018-2019 year.

As Chicago Teachers Union organizer and Cook County Commissioner candidate Brandon Johnson pointed out in an impromptu press conference earlier this week in front of district HQ, the budget is still “woefully short” on school psychologists, nurses, and counselors. And it doesn’t address the calls from parents to restore librarians and instructors in such subjects as art, music, physical education — positions that have experienced dramatic cuts since 2011. “What is proposed today still leaves us short of when (Mayor Emanuel) took office,” Johnson said. “The needs of our students must be met.”

Principal Elias Estrada, who oversees two North Side schools, Alcott Elementary and Alcott High School, said he was still figuring out how the additional staffing would work. He’s getting another social worker – but he oversees two campuses that sit three miles apart, so he figures he’ll have to divide the person’s time between campuses. Estrada asked the board at Monday’s budget hearing to help him understand the criteria it uses to determine which schools get extra staff or additional programs, like IB. “I need a counselor, a clerk, and an assistant principal,” he said; currently those positions also are shared between the elementary and the high school.

After the meeting, he said that schools might have gotten slightly bigger budgets this year, but the increase was consumed by rising salaries and he wasn’t able to add any positions. What’s more, his building needs repairs, but it didn’t get picked for any of the facilities upgrades in the $1 billion capital plan that accompanied the budget.

“What is the process?” he asked. “The need is everywhere.”

At two public hearings on Monday, fewer than a dozen speakers signed up to ask questions of the board, central office administrators, or Jackson.

To see if your school is getting one of the newly announced positions or any funding from the capital plan, type it in the search box below.

IPS School Board Race 2018

Indiana teachers union spends big on Indianapolis Public Schools in election

PHOTO: Dylan Peers McCoy/Chalkbeat
IPS board candidate signs

The political arm of Indiana’s largest teachers union is spending big on the Indianapolis Public Schools board. The group donated $68,400 to three candidates vying for seats on the board this November, according to pre-election campaign finance disclosures released Friday.

The three candidates — Susan Collins, Michele Lorbieski, and Taria Slack — have all expressed criticism of the current board and the leadership of Superintendent Lewis Ferebee. Although that criticism touches on many issues, one particular bone of contention is the district’s embrace of innovation schools, independent campuses that are run by charter or nonprofit operators but remain under the district’s umbrella. Teachers at those schools are employed by the school operators, so they cannot join the union.

The trio was also endorsed by the IPS Community Coalition, a local group that has received funding from a national teachers union.

It’s not unusual for teachers unions to spend on school board elections. In 2016, the union contributed $15,000 to an unsuccessful at-large candidate for the Indianapolis Public Schools board. But $68,400 dwarfs that contribution. Those disclosures do not capture the full spending on the election. The three candidates endorsed by Stand for Children Indiana — Mary Ann Sullivan, Dorene Rodríguez Hoops, and Evan Hawkins — are likely getting significant unreported benefits.

Stand for Children, which supports innovation schools, typically sends mailers and hires campaign workers to support the candidates it endorses. But it is not required to disclose all of its political activity because it is an independent expenditure committee, also known as a 501(c)(4), for the tax code section that covers it. The group did not immediately respond to a request for information on how much it is spending on this race.

The candidates’ fundraising varied widely in the reporting period, which covered the period from April 14 to Oct. 12, with Taria Slack bringing in $28,950 and Joanna Krumel raising $200. In recent years, candidates have been raising significantly more money than had been common. But one recent candidate managed to win on a shoestring: Elizabeth Gore won an at-large seat in 2016 after raising about $1,200.

Read more: See candidates’ answers to a Chalkbeat survey

One part of Stand for Children’s spending became visible this year when it gave directly to tax campaigns. The group contributed $188,842 to the campaign for two tax referendums to raise money for Indianapolis Public Schools. That includes a $100,000 donation that was announced in August and about $88,842 worth of in-kind contributions such as mailers. The group has a team of campaign workers who have been going door-to-door for months.

The district is seeking to persuade voters to support two tax increases. One would raise $220 million for operating funds, such as teacher salaries, over eight years. A second measure would raise $52 million for building improvements. Donations from Stand for Children largely power the Vote Yes for IPS campaign, which raised a total of $201,717. The Indiana teachers union also contributed $5,000.

Here are the details on how much each candidate has raised and some of the notable contributions:

At large

Incumbent Mary Ann Sullivan, a former Democrat state lawmaker, raised $7,054. Her largest contribution came from the Indy Chamber Business Advocacy Committee, which donated $4,670. She also received $1,000 from Steel House, a metal warehouse run by businessman Reid Litwack. She also received several donations of $250 or less.

Retired Indianapolis Public Schools teacher Susan Collins, who is one of the candidates supported by the union, raised $16,422. The Indiana Political Action Committee for Education contributed $15,000. She also received several donations of $200 or less.

Ceramics studio owner and Indianapolis Public Schools parent Joanna Krumel raised $200. Her largest contribution, $100, came from James W. Hill.

District 3

Marian University Executive Director of Facilities and Procurement and Indianapolis Public Schools parent Evan Hawkins raised $22,037. His largest contributions from individuals were from businessmen Allan Hubbard, who donated $5,000, and Litwack, who donated $2,500. The Indy Chamber Business Advocacy Committee contributed $4,670 and web design valued at $330. He also received several donations of $1,000 or less. His donors included IPS board member Venita Moore, retiring IPS board member Kelly Bentley’s campaign, and the CEO of The Mind Trust, Brandon Brown.

Frost Brown Todd trial attorney and Indianapolis Public Schools parent Michele Lorbieski, who is one of the candidates supported by the union, raised $27,345. The Indiana Political Action Committee for Education contributed $24,900. She also received several contributions of $250 or less.

Pike Township schools Director of Information Services Sherry Shelton raised $1,763, primarily from money she contributed. David Green contributed $116.

District 5

Incumbent Dorene Rodríguez Hoops, an Indianapolis Public Schools parent, raised $16,006. Her largest contributors include Hubbard, who donated $5,000; the Indy Chamber Business Advocacy Committee, which gave $4,670 and web design valued at $330; and the MIBOR PAC, which contributed $1,000. She also received several contributions of $500 or less, including from Bentley.

Federal employee and Indianapolis Public Schools parent Taria Slack, who is one of the candidates supported by the union, raised $28,950. The Indiana Political Action Committee for Education contributed $28,500.

Innovation zone

Two more Denver schools win additional freedom from district rules

PHOTO: J. Zubrzycki/Chalkbeat
Alex Magaña, then principal at Grant Beacon Middle School, greeted students as they moved between classes in 2015.

Two more Denver schools this week won more flexibility in how they spend their money and time. The schools will create a new “innovation zone,” bringing the district’s number of quasi-autonomous zones to three.

The Denver school board on Thursday unanimously approved the schools’ application to operate more independently from district rules, starting in January.

The new zone will include Grant Beacon Middle School in south Denver and Kepner Beacon Middle School in southwest Denver. The two schools are high-performing by the district’s standards and follow a model that allows students to learn at their own pace.

With just two schools, the zone will be the district’s smallest, though Beacon leaders have signaled their intent to compete to open a third school in the growing Stapleton neighborhood, where the district has said it will need more capacity. The district’s other two innovation zones have four and five schools each.

Schools in zones are still district schools, but they can opt out of paying for certain district services and instead spend that money on things that meet their specific needs, such as additional teachers or aides. Zones can also form nonprofit organizations with their own boards of directors that provide academic and operational oversight, and help raise extra dollars to support the schools.

The new zone, called the Beacon Schools Network Innovation Zone, will have a five-member board of directors that includes one current parent, two former parents, and two community members whose professional work is related to education.

The zone will also have a teacher council and a parent council that will provide feedback to its board but whose members won’t be able to vote on decisions.

Some Denver school board members questioned the makeup of the zone’s board.

“I’m wondering about what kinds of steps you’re going to take to ensure there is a greater representation of people who live and reside in southwest Denver,” where Kepner Beacon is located, asked school board member Angela Cobián, who represents the region. She also asked about a greater representation of current parents on the board.

Alex Magaña, who serves as executive principal over the Beacon schools and will lead the new zone, said he expects the board to expand to seven members within a year. He also said the parent council will play a key role even if its members can’t vote.

“The parent council is a strong influence,” he said. “If the parent council is not happy, that’s going to be impacting both of the schools. I don’t want to undersell that.”

Other Denver school board members questioned the zone’s finances and how dependent it would be on fundraising. A district summary of the zone’s application notes that the zone’s budget relies on $1.68 million in foundation revenue over the next 5½ years.

Magaña said the zone would eventually seek to expand to four schools, which would make it more financially stable. As for philanthropic dollars, he said the zone would work to ensure any loss of revenue doesn’t hurt the schools’ unique programs or enrichment.

“I can’t emphasize enough that it won’t impact the schools,” he said.

Ultimately, Denver school board members said they have confidence in the Beacon model and look forward to seeing what its leaders do with their increased autonomy.