Show me the money

Districts take wary view of new transparency law

Sample district transparency template

School district lobbyists did their best to kill the idea during the 2014 legislative session, but now that new financial reporting requirements are law, school districts and the Colorado Department of Education are scratching their heads and sorting out how to make them work.

There have been ripples of anxiety – and not a little confusion — in many districts as details of the mandate started to sink in after both the legislative session and the school year ended.

“People are grumpy,” said Glenn Gustafson, chief financial officer for Colorado Springs District 11. “No doubt about it.”

Some district leaders don’t necessarily see the requirements as an impossible burden, but they wonder about the value of the changes.

The financial transparency requirements are part of House Bill 14-1292, the Student Success Act that was at the center of fierce school finance policy debates during the 2014 session. (See this Chalkbeat Colorado story for details on all the bill’s provisions.)

What the law says has to be done

While many nuts and bolts of implementing the transparency requirements remain to be worked out, the new mandate goes significantly beyond a 2010 transparency law (get details on that here) and requires three main things:

Uniformity – The law requires greater standardization in how districts display financial information on their websites. “All districts will have to report [data] in the same fashion,” said Leanne Emm, associate commissioner for school finance at CDE.

Data for every school – Districts ultimately will have to report spending information for individual schools, information that some districts report now but others don’t.

One-stop shopping – Three years from now there will be a single website containing financial information about all districts and schools. The law requires the website to be designed so as “to ensure the greatest degree of clarity and comparability by laypersons of expenditures among school sites, school districts, the state Charter School Institute, and boards of cooperative services.” (The site will be created by a to-be-selected contractor, not CDE.)

What worries districts

A wide variety of district officials interviewed by Chalkbeat raised four main concerns about the law:

Implementation – District officials generally agree that compliance will be relatively painless for large districts but presents a greater challenge to some medium-sized and small districts. “It is going to be a lot of work for a lot of people. It depends on how big you are and how many people you have working for you,” Gustafson said.

Comparability – Even with the requirement for greater uniformity, some district officials wonder if district and school data will be fully comparable. They raise the question of likely district differences in how they account for costs borne by multiple schools – things like the salaries of special education teachers, psychologists and other staff who split their time among buildings.

“It is a significant change to set up your personnel systems [to account for] a teacher or even a principal who works at several different schools,” said Bill Sutter, chief financial officer of the Boulder Valley School District.

Use & Misuse – District officials say they support transparency as an ideal but are openly skeptical that new financial data will see much use by the public.

“Who’s going to actually look at this website?” asked Tracy John, business manager of the 606-student Peyton School District northeast of Colorado Springs.

Anecdotally, districts say there’s little public use of financial information currently available online. “I don’t receive very many calls about transparency,” said Guy Bellville, chief financial official of the Cherry Creek Schools.

And districts are nervous that advocacy groups will use school-level financial data for their own ends, ignoring the context and nuances of why districts spend money as they do.

“Rather than build confidence in school budgeting decisions, it is more likely to provide ammunition to public education detractors who have no interest in learning the deeper context or complexity that comes with school budgeting,” argues Jason Glass, superintendent of the Eagle County Schools.

Impact on student achievement – “Tell me how this is going to impact student achievement,” Gustafson said. “This is a distraction that takes away from student achievement.” Said Boulder’s Sutter, “I’m fairly certain there are no studies about how one more accountant in the district office is going to affect outcomes.”

Another view on data use

Sen. Mike Johnston, a prime sponsor of HB 14-1292 and the instigator of much recent education reform legislation, has a different take on the law.

The Denver Democrat made his case at a recent meeting of district finance officials and CDE staffers who are starting to flesh out the details of implementing the law.

“People will use the data depending on how easy it is to use,” he said. “I think it’s just a matter of presenting information in the right way.”

Johnston also made the pitch that greater financial transparency might make voters more sympathetic to increased funding for education.

During the Amendment 66 campaign in 2013 many voters has “this misperception that education was this large overfunded bureaucracy.” He argued the state needs “to allow parents to understand in regular language where the dollars go in their schools. Our belief is doing this well will paint a clear picture to parents and taxpayers about where those dollars are going. … This makes it easier to make that case” for more funding.

Education interest groups have a variety of reasons for supporting greater financial transparency. Reform groups that advocate for funding equity hope it will provide greater insight into whether low-performing schools are getting the money they need to help at-risk students. Charter schools think greater insight into district spending will show whether or not they’re getting an appropriate share of funding. Republican lawmakers hope transparency will shed more light on pension costs. And others hope transparency is a step toward greater control of money at the school level and even “backpack” funding for individual students.

Transparency a second-tier trend

While financial transparency doesn’t have the high profile of issues such as Common Core State Standards or testing, “it’s a trend we’re seeing right now, and it’s been going on for awhile,” said Mike Griffith, senior school finance analyst for the Education Commission of the States.

“Most states require districts to report on financial data,” Griffith said, and now policymakers are saying, “You need to start accounting on a school-level basis.”

Part of the trend is rooted in overall technological change. “As the technology has advanced and people have gotten used to looking things up … that has pushed policymakers.”

Griffith added, “When the idea is presented to policymakers they get excited because they like data. The question is what they do with it when they get it.”

On the school district side, he said, “There’s another fear – they’re going to have to change the way they do business.”

As Colorado administrators discuss the new law, Michigan and Rhode Island are frequently mentioned as possible examples to follow.

Michigan’s state system is under construction; get more information here. To see how districts report, see this page on the Lansing School District site. (All Michigan districts are required to have a prominent financial transparency logo on their home pages. But school-level data isn’t currently required.)

Learn more about Rhode Island’s system here.

The transparency to-do list

The state transparency website doesn’t have to launch until July 1, 2017, but that doesn’t mean CDE and districts don’t face a lot of work – starting now.

A subcommittee of CDE’s Financial Policies and Procedures Committee is working to develop a standard template for districts to use on their websites and hopes to finish that by October.

The full FPP group is supposed to develop a recommendation for the State Board of Education on how to report district revenues.

CDE plans to have a request for proposal finished by the end of the year. This contains specifications that outside bidders will have to meet if they want the $3 million contract to build the statewide website.

Districts will have to use the new template starting July 1, 2015, posting the financial information required by the 2010 transparency law.

In late 2016 or early 2017, using a second template developed by the state, districts will have to post individual school financial data on their sites.

Using data provided by districts, the contractor is supposed to launch the statewide site July 1, 2017.

Emm said the current 2014-15 school year “is almost a planning year” but that districts will have serious work to do starting in about February.

But it’s not fully clear what that work will require. “School districts will not understand what’s required until the FPP completes the template,” said Cherry Creek’s Bellville.

Finding district information can take some effort

District leaders and lobbyists last spring repeatedly made the point that state law already requires posting lots of financial information on district websites, making a new mandate unnecessary.

They were right that the 2010 law requires districts to post annual budgets (full budgets and summaries), audits, quarterly financial statements, salary schedules, check registers, credit and purchase card statements and investment performance reports. (See CDE’s suggested – not mandatory – current template for displaying that information.) The new law allows districts to drop quarterly statements, check registers and card statements after July 1, 2017.

But in many ways the current system is more translucent than it is transparent.

Chalkbeat clicked around the websites of Colorado’s 10 largest districts plus eight more districts of varying sizes – one district with about 1,000 students, another with about 900 students and so on down to a 100-student district.

Overall we found that if you’re looking for district financial information, be prepared to make educated guesses about which homepage link to click and be ready to do a fair amount of clicking, scrolling and opening of large PDF files.

Here are some highlights (and lowlights) of what we found, along with a few hints to help your searches.

  • Home page links to transparency information aren’t consistent. We found them near the top of some pages, in the middle of others and at the bottom of some. (Boulder Valley gets kudos for its blue “BVSD Financial Transparency” button near the top of the home page. Dougco has a Transparency link in a row across the top of the home page.)
  • The link doesn’t always read “Financial Transparency.” If you don’t see those words, look for links with wording like District Finance, District Office, Financials, Administration, Finance & Budget and even About. Pull-down menus generated by such links sometimes reveal a Financial Transparency link.
  • When all else fails, type “financial transparency” into the search window on the district’s home page and see what you find.
  • District budgets and budget summaries can contain a wealth of information, including school-level information for some larger districts. But every district uses its own format. Cherry Creek, for instance, provides easy-to-read information for every school, including photos and demographic details. Other districts’ budgets contain multiple number-crammed spreadsheets of school information. Some districts provide per-pupil spending by school; others don’t.
  • You’ll need to click and scroll. Once you find it on the website, open your district’s budget in Adobe Acrobat or another PDF reader, use the table of contents column on the left and start hunting.

transportation

Parent concerns prompt Denver Public Schools to change how it’s spending a chunk of tax dollars

PHOTO: RJ Sangosti/Denver Post
An RTD bus heads downtown along Colfax Ave. in 2016.

Denver Public Schools is changing course on how it will spend $400,000 in local tax dollars earmarked for student transportation after parents and community organizations claimed the district had not followed through on a promise to increase options for high school students.

The dollars are part of a $56.6 million tax increase voters approved in November. This school year, the district allocated $273,000 to buy bus passes for 630 additional students at two schools: Northfield High and Denver School of Innovation and Sustainable Design. However, it earmarked the remaining $127,000 to pay for transportation for special needs students.

Superintendent Tom Boasberg announced Monday evening that the $127,000 set aside for special needs transportation would be immediately reallocated so that all $400,000 is being spent on bus passes for high school students.

“We’ve heard loud and clear from the community,” Boasberg said.

Parents and other advocates say that while the reallocation is a move in the right direction, it doesn’t relieve all of their worries about how the money will be spent.

“That’s great,” parent Karen Mortimer said. “But what is your next step?”

Transportation is a hot-button issue for Denver Public Schools. The district has been nationally recognized for its school choice system, which allows its 92,000 students to request to attend any one of its more than 200 schools. However, DPS does not provide transportation to most students who choose a school that is not the assigned school in their neighborhood.

Critics argue that not providing transportation to all students leaves families who don’t have a vehicle or the means to transport their children across town with no choice at all.

Nearly half of the district’s 20,623 high school students — 9,256 — don’t qualify for DPS transportation because they don’t attend their assigned schools, according to numbers presented to the school board at a work session Monday night.

Another 4,394 don’t qualify for transportation because they live within three and a half miles of their assigned schools, a distance the district considers walkable.

In a bid to reduce those numbers, a committee of 75 parents, students, teachers and taxpayers tasked with recommending how to spend the tax revenue suggested earmarking $400,000 each year for a “new effort to increase high school students’ access to high quality schools and educational opportunities through greater transportation options.”

Whereas most ideas for how to spend the $56.6 million in tax revenue came from DPS staff, the idea to expand transportation originated with the committee members.

The final recommendation, which was adopted by the school board, said DPS would “work with community stakeholders to secure matching funds, and design and implement a test effort to positively impact students,” which has not yet happened.

If the test effort wasn’t working, the recommendation said, the district could use those funds “for other efforts to increase access to educational opportunities.”

In a statement Friday, Superintendent Tom Boasberg said the district was using the funds “as promised,” a contention advocates disputed, to pay for transportation for high school students and students with special needs. DPS saw an increase this year of 78 students whose needs exceed the district’s capacity to serve them and who are being bused elsewhere by third-party companies, according to a district spokeswoman and information provided to the school board.

But Boasberg said Monday that as of this month, the $127,000 that was earmarked for special education transportation would be spent on high school students instead. District officials estimated that sum would buy an additional 370 bus passes. Boasberg said they “look forward to a discussion with the community” about how to distribute them.

Meanwhile, community members said they’re still confused about how DPS distributed the 630 additional passes it already purchased with the $273,000 in tax revenue.

“The community was left out of the loop,” said Matt Samelson of the Denver-based Donnell-Kay Foundation, which has been pushing for the district to come up with a plan for how to use the $400,000 before February, when families must make their school choices for next year. (The foundation is a financial supporter of Chalkbeat).

District spokeswoman Nancy Mitchell told Chalkbeat that most of the 630 passes went to students at Northfield High, a comprehensive high school that opened in northeast Denver in 2015. The district had been providing yellow bus service to Northfield because the Regional Transportation District didn’t serve the area. But it does now, Mitchell said, so Northfield students who meet the district’s criteria for bus passes got them this year.

To qualify for transportation, high school students must attend their assigned schools and live more than three and a half miles away. District policy allows other students to receive transportation, too. That includes those learning English as a second language, for example, or those attending certain types of schools, including magnet and Montessori schools.

Students at Denver School of Innovation and Sustainable Design, which also opened in 2015, received a portion of the 630 passes because the district “determined DSISD most resembles a pathway school for purposes of transportation, as they do not have an enrollment boundary,” according to a statement from DPS spokeswoman Jessie Smiley.

“Pathway” schools are alternative schools that serve students who’ve struggled elsewhere. DSISD is not a pathway school. It was rated “blue” this year, the highest rating on the district’s five-color scale.

Not counting the students who received the 630 extra passes purchased with the tax money, 2,565 high school students were eligible this year for Regional Transportation District bus passes, according to district officials. That’s up from 2,376 last year. In addition, nearly 5,000 high school students qualify for yellow bus service because they attend a school in an “enrollment zone,” which is essentially an enlarged boundary that contains several schools.

Boasberg said that while the district would like to provide transportation to even more students, it must balance spending money on buses with spending money in classrooms. DPS already spends $26 million of its nearly $1 billion budget on transportation, according to information provided to the school board. Even if it wanted to hire more drivers, district officials said they’re having a hard time finding them in a thriving economy; DPS is down 40 drivers this year.

To come up with a solution, Boasberg said the district must collaborate with the city and the Regional Transportation District, which has commissioned its own task force to come up with new pricing recommendations. DPS officials have been participating in that group.

“Ultimately, RTD has assets and abilities as a transportation entity to specialize in what they specialize in,” Boasberg said at Monday’s school board work session. “Our specialty is in educating students. The more we can be collaborative with RTD … the better.”

But advocates said participating in other agencies’ processes isn’t enough. DPS should be leading its own investigation into how to expand transportation options by gathering parents, students and community members to come up with ideas, they said.

“There have been lots of conversations but DPS hasn’t led any of them,” Samelson said.

Unlike other programs and initiatives funded by the tax increase and suggested by district staff, the transportation expansion proposal hasn’t gotten the attention it deserves, he said.

“We’re trying to help the district increase access to schools for students but we feel pushback, we feel stonewalled, we feel like we have to argue our way into this premise that increased transportation is good for kids,” Mortimer said. “We just don’t understand it.”

moving on

Teacher pay raises on schedule in Memphis despite possible changes to evaluation scores

PHOTO: Laura Faith Kebede

Memphis teachers will start receiving their performance-based salary increases in November, even though evaluation scores could change for hundreds of educators in Shelby County Schools.

Superintendent Dorsey Hopson emailed teachers on Tuesday to update them about the status of their paychecks after news emerged last week about scoring errors on state tests for some Tennessee high school students, as well as a data entry error that impacted teacher growth scores known as TVAAS. (Student growth scores figure into evaluations that affect teachers’ employment and salaries.)

Hopson said the district will use current evaluation scores when issuing pay increases in November, which will be retroactive to the first day of school in August. He assured teachers that their salaries will not decrease if their TVAAS ratings go down in the wake of errors by the state’s testing vendor, Questar.

“We stand with our teachers in ensuring that no more state-level scoring irregularities exist,” Hopson wrote. “If further issues are identified regarding your specific TEM score, we will only honor salary adjustments that POSITIVELY affect your pay.”

For the first time, the district is launching a merit pay plan this school year based on teacher evaluation scores. But the news of errors this year at the state level left some teachers wondering how and when possible revisions to their TVAAS score would hit them in the pocketbook.

Hopson said the state and the district have contacted educators who are impacted by the errors. Tuesday is the deadline for finalizing TVAAS scores in order to receive salary increases by November.

“We realize this issue has again shaken your trust in the measurements of our collective success, and for that, we’re deeply saddened. While we are frustrated by the (Tennessee Department of Education’s) error, we respect the state for acknowledging and working to repair the mistake,” Hopson wrote.

Up to 900 teachers statewide may see their growth scores change as a result of data entry errors. That’s about 9 percent of teachers who receive a score under the state’s model to identify a teacher’s impact on student growth. Hopson said 587 of those teachers are in Shelby County Schools, the state’s largest district.