Follow the money

All Indianapolis districts gain state dollars under Senate budget plan

PHOTO: Shaina Cavazos
Students at Sidener Academy in Indianapolis Public Schools read or do homework.

Indiana Senate Republicans want to boost funding for teacher bonuses and reduce losses for school districts serving lots of poor students, according to a budget plan released Thursday.

The Senate proposal calls for raising education funding by $358 million, or 3.25 percent, over the next two years — the most of any state budget plan presented this year. Per-student funding would also increase slightly to $5,274 in 2019, up from the $5,088 school districts received in 2017.

The plan includes few surprises, but marks the next phase of the state’s budget negotiations. The House proposed a smaller $273 million, 2.8 percent funding increase for education last month, although the House plan would include higher per-student funding. Much of the Senate increase appears to come from the provisions for teacher bonuses and poor students.

According to Sen. Luke Kenley, R-Noblesville, chairman of the budget-making Appropriations Committee, the funding increase includes $40 million per year directed at the “complexity index,” which determines how much extra money districts receive to educate poor students. That will primarily benefit urban and rural schools, he said. Based on changes to how that formula is calculated, most districts still lose complexity dollars, but in the Senate plan, the losses are less steep than what the House projected.

“We thought that Indiana has a good reputation across the nation as funding those who have the greatest needs, so we thought we needed to work on that a little bit more,” Kenley said. “I think it’s an equitable result.”

Democrats applauded those increases, though the committee’s ranking Democrat, Sen. Karen Tallian, said they weren’t enough.

Under the Senate’s budget, every district in Marion County sees its basic state aid and per-student funding increase, including Indianapolis Public Schools, which would receive cuts in the House plan.

Growing suburban districts like Zionsville and Hamilton Southeastern would get sizable funding bumps from the Senate, while shrinking districts, including East Chicago and Gary, would lose state money. But overall, the state’s poorest districts seem to fare better under the Senate’s plan than the House’s.

The Senate’s budget also adds back in $40 million per year for teacher bonuses, which the House had removed from earlier proposals — one of a number of changes proposed by state Superintendent Jennifer McCormick. The bonus program would work slightly differently than it has in years past, and dole out money based on school enrollment rather than ISTEP scores. The change comes after wide disparities in last year’s bonuses were criticized by educators across the state.

“We think, number one, that we need to make sure we get more money to the classroom teacher,” Kenley said. “We think teachers everywhere that are doing a good job should be rewarded for that.”

The Senate’s new plan would distribute $39 per student to each district in the state. That money would then be divvied up among teachers rated “effective” or “highly effective.” Of that money, up to 50 percent could be added into a teacher’s base salary. That would help teachers boost their future pension payments, which year-end stipends do not, Tallian said.

Like the House budget plan, the Senate budget increases funding for English learners, but it weights that funding toward schools where English learners make up at least 5 percent of their enrollment. Overall, an additional $11.5 million is set aside for those schools over the next two years.

The Senate plan also adds in requirements for virtual schools, mandating that they report information about class size, teacher-per-student ratios, and how often teachers have in-person meetings to the education department each year. Those schools wouldn’t qualify for the English-learner or teacher bonus grants, and would only get 90 percent of the basic per-student funding amount from the state, as they do now. The House’s plan would increase that to 100 percent.

The state’s voucher program would see its funding grow over the next two years under the Senate plan, as with the House plan. Indiana is projected to spend more than $156 million by 2018 and $167 million by 2019 on the program, up from $146 million in 2017. The Senate also includes those figures as a budget line item, rather than just as part of the funding formula, which Kenley said was more transparent. Tallian agreed.

“It’s a great move that we’ve been calling for for several years,” she said.

The Senate budget also includes:

  • $16 million per year for the state’s preschool program, a $4 million increase per year. The proposal also allows programs from all 92 counties participate, rather than the current five — similar to bills that passed out of the Senate earlier this year.
  • $1 million per year for a home-based early education program called UpStart.
  • $500,000 per year for dual language immersion programs.
  • $1 million per year to “align” initiatives regarding science, technology, engineering and math education.
  • $12.5 million per year for the Charter and Innovation Network School Grant Program.
  • Funding increases for special education and honors grants.
  • Funding increases for Advanced Placement and PSAT testing.

new money

House budget draft sends more money to schools, but not specifically to teacher raises

PHOTO: Laura Faith Kebede/Chalkbeat

Despite months of heated debate, Indiana House Republicans are not setting aside extra dollars for meaningful teacher raises in their version of the state’s $14.5 billion education budget plan released Monday night.

Even though lawmakers are proposing preserving a controversial merit-based bonus pool and adding small amounts for teacher training programs, their budget draft would largely leave it up to school districts to dole out raises through increased overall funding.

The budget draft proposes increasing what Indiana spends on schools overall by $461 million — or 4.3 percent — through 2021, a little more than increases in years past. The basic per-student funding that all districts get would jump from $5,352 per student this year to $5,442 per student in 2020 and $5,549 per student in 2021. House lawmakers are also adding in a one-time payment of $150 million from state reserves that would pay down a pension liability for schools. But while lawmakers and Gov. Eric Holcomb have said that pension payment would free up about $70 million in schools’ budgets each year, the state likely wouldn’t require the cost-savings be passed along to teachers.

Although increasing teacher pay is a top goal for House Republicans, lawmakers have crafted bills that hinge on districts spending less money in areas such as administration or transportation rather than adding more money to school budgets and earmarking it for teacher salaries.

Their criticism of school spending has raised the ire of superintendents and educators who say they have little left to cut after years of increasing costs and state revenue that has barely kept pace with inflation.

But budget draft, which is expected to be presented to and voted on by the House Ways and Means Committee on Tuesday, doesn’t completely omit efforts to incentivize teachers to stick around. Unlike Holcomb’s budget proposal, House lawmakers are keeping in the current appropriation of $30 million per year for teacher bonuses.

The House budget draft would also set aside $1 million per year for a teacher residency pilot program and $5 million per year for schools that put in place career ladder programs that allow teachers to gain skills and opportunities without leaving the classroom.

Teacher advocacy groups, such as the Indiana State Teachers Association and Teach Plus, have been supportive of residency and career ladder programs, but the organizations have also called for more action this year to get dollars to teachers. Additionally, the ideas aren’t new — similar programs have been proposed in years past.

Calls for the hundreds of millions of dollars it would take to raise teacher salaries to be more in line with surrounding states will likely go unheeded for now as the state instead prioritizes other high-profile and expensive agencies, such as the Department of Child Services and Medicaid.

But while plans for major teacher pay raises appear to be on hold, House lawmakers are looking to boost funding in other areas of education to support some of the state’s most vulnerable students.

The budget draft would increase what the state must spend on preschool programs for students with disabilities from the current $2,750 per-student to $2,875 in 2020 and $3,000 in 2021 — the first such increase in more than 25 years.

House lawmakers are also proposing the state spend more money on students learning English as a new language, at $325 per student up from $300 per student now. While all schools with English learners would receive more money per student under this plan, the new budget draft removes a provision that had previously allocated extra dollars to schools with higher concentrations of English learners.

A 2017 calculation error and an uptick in interested schools meant state lawmakers did not budget enough money for schools with larger shares of English-learners in the last budget cycle, so they ended up getting far less than what the state had promised. But even the small increases were valuable, educators told Chalkbeat.

House lawmakers also suggested slashing funding for virtual programs run by traditional public school districts. Going forward, funding for both virtual charter schools and virtual schools within school districts would come in at 90 percent of what traditional schools receive from the state — now, only virtual charter schools are at the 90 percent level. It’s a marked change for House lawmakers, who in years past have asked that virtual charter school funding be increased to 100 percent.

The virtual funding proposal comes as lawmakers are considering bills that would add regulations for the troubled schools, where few students pass state exams or graduate.

The budget draft also includes:

  • $5 million per year added to school safety grants, totaling $19 million in 2020 and $24 million in 2021
  • Doubling grants for high-performing charter schools from $500 per student to $1,000 per student, at a cost of about $32 million over two years. The money is a way for charter schools to make up for not receiving local property tax dollars like district schools, lawmakers say.
  • $4 million per year more to expand the state’s private school voucher program to increase funding for certain families above the poverty line. Under the plan, a family of four making between $46,000 and $58,000 annually could receive a voucher for 70 percent of what public schools would have received in state funding for the student. Currently, those families receive a 50 percent voucher.
  • About $33 million over two years (up from about $25 million) for the state’s Tax Credit Scholarship program.

Raise your voice

Memphis, what do you want in your next school superintendent?

PHOTO: Kyle Kurlick for Chalkbeat

Tennessee’s largest school district needs a permanent leader. What kind of superintendent do you think Shelby County Schools should be looking for?

Now is the chance to raise your voice. The school board is in the thick of finalizing a national search and is taking bids from search firms. Board members say they want a leader to replace former superintendent Dorsey Hopson in place within 18 months. They have also said they want community input in the process, though board members haven’t specified what that will look like. In the interim, career Memphis educator Joris Ray is at the helm.

Let us know what you think is most important in the next superintendent.  Select responses will be published.