breaking

Breaking: Indiana didn’t set aside enough money for schools. Senate leader says a fix is ‘top priority.’

PHOTO: Photo by Shaina Cavazos/Chalkbeat
Students at Global Prep Academy, a charter school, learn about comparing shapes. All schools could see less funding if lawmakers do not fix the funding shortfall.

State education officials are expecting a shortfall in school funding this year that could be as high as $9 million because state and local officials underestimated Indiana’s student enrollment.

If the legislature does not act to increase funding, districts, charter schools and private schools that receive state vouchers could all get less money than they were promised this year.

Senate President David Long said new legislation to appropriate more money to schools would be proposed, though other lawmakers involved in budget-making were less certain on what a solution would look like this early.

“It’s our top priority, education is, so it’ll have our full focus when we come back in January,” Long said.

But on the upside, he said, public school enrollment increased since last year.

“It’s not a bad problem,” Long said. “We have more kids going into public schools than we did last year, but it’s a challenge for us only in a sense that we need to adjust our numbers.”

A memo from the Indiana Department of Education said the legislature’s budget appropriation was short by less than one-half of 1 percent. When the amount the legislature allocated for school funding does not line up with its funding formula, “the law requires the Department to proportionately reduce the total amount to be distributed to recipients,” the memo said.

It’s not clear how the miscalculation in enrollment numbers occurred, said Rep Tim Brown, a key budget-writer and chairman of the House Ways and Means Committee. The budget dollars are estimated based on projected school enrollment counts from districts themselves, the education department and the legislative services agency, which helps provide information and data to lawmakers.

Brown urged people to keep the number in perspective, especially since the budget is crafted based on estimates. Brown said this was the first year since he became involved with budget writing in 2013 that projected budget allocations ended up being less than school enrollment, which was calculated based on counts from September Count Day.

“We’re looking at what our options are, but let us keep in mind it is $1.50 out of every $10,000 a school gets,” Brown said, adding that he wasn’t sure this early on how lawmakers would act to make up the shortfall.

But J.T. Coopman, executive director for the Indiana Association of Public School Superintendents, said even small amounts of money make a difference for cash-strapped schools. Districts have already started making contracts and have obligations to pay for teacher salaries and services at this point. It’s pretty late in the game for this kind of news, he said.

“I did see that it’s less than a half a percent, but for schools that’s a lot of money,” Coopman said. “Can we get this fixed before it becomes a real problem for school districts?”

Indianapolis Public Schools Superintendent Lewis Ferebee, who leads a district that is already in deficit, was optimistic. In a statement, he said, “we’re encouraged by the commitment and urgency demonstrated by our legislative leaders.”

Neither Brown nor Long knew how much public school enrollment had increased. The $32 billion two-year budget passed in April increased total dollars for schools by about 3.3 percent from 2017 to 2019, for a total of about $14 billion. Included within that was a 2.5 percent average increase for per-student funding to $6,709 in 2019, up from $6,540 last year.

The news of a funding shortfall comes as the state continues to see declining revenue. The Northwest Indiana Times reports that state revenue is down $136.5 million (2.8 percent) from what lawmakers estimated this past spring for the next two-year budget.

During the annual ceremonial start to the 2018 legislative session today, leaders discussed a need to provide more resources to schools and the state board of education. So far, many of the priorities involving education this year look to address workforce needs and encourage schools to offer more computer science courses.

But House Speaker Brian Bosma also shouted out “innovative” steps made by Indianapolis Public Schools and Fort Wayne Public Schools.

“People are trying something different and they are having great results with it,” Bosma said. “We need to give them more tools, we need to give them more opportunities.”

Hello Again

Debora Scheffel chosen by acclamation to fill State Board of Ed vacancy

State Board of Education member Debora Scheffel at a campaign event in 2016. (Photo by Nic Garcia/Chalkbeat)

A Republican vacancy committee unanimously selected Debora Scheffel to fill the opening left by Pam Mazanec on the State Board of Education.

Mazanec, a staunch defender of parental rights and school choice who represented the 4th Congressional District, resigned at the end of January to focus on her other obligations. Scheffel previously represented the 6th Congressional District on the board but lost that seat in 2016 to Democrat Rebecca McClellan.

McClellan’s narrow victory gave control of the board to Democrats for the first time in 46 years. Scheffel, who serves as dean of education at Colorado Christian University, moved to Douglas County, and ran unsuccessfully for school board there in 2017.

Scheffel’s selection does not change the balance of power on the state board because she replaces another Republican. Scheffel faced no opposition at the vacancy committee meeting, which took place Saturday in Limon.

Scheffel has said she wants to continue Mazanec’s work on behalf of rural schools and in support of parent and student choice, as well as work to protect student data privacy, a cause she previously championed on the board.

The district takes in all of the eastern Plains, as well as the cities of Longmont, Greeley, and Castle Rock.

Future of Schools

Indianapolis struggles to balance how much money schools need with what people will pay

PHOTO: Dylan Peers McCoy
Lewis Ferebee

Without a massive influx of cash from taxpayers, Indianapolis’ largest school district could be in dire financial straits. But the fate of the referendums asking voters for more money is in limbo.

Even as the Indianapolis Public Schools board revealed plans to reduce how much money it is seeking from voters, the administration portrayed the district’s financial future as precarious. During a board discussion Thursday, officials underscored how critical it would be for the tax increase to pass. It’s unclear, however, whether the district will get the extra cash it needs to avoid making painful cuts.

Critics have suggested the request — $936 million over eight years — is too high and that the district has not offered enough detail on how the money raised would be spent. With only tepid support for the tax plan, district leaders appear poised to reduce the amount they are seeking. That move could win over new allies, but it could also undercut their efforts to gain support.

Next year, the administration is expecting spending could outpace income by more than $45 million. The plan for filling that gap hinges on raising more than $46 million from a referendum that will go before voters in May.

Without that extra money, Superintendent Lewis Ferebee said, the district would have to burn through its savings or make vast cuts that could include freezing teacher pay, cutting school budgets, and reducing transportation.

The district would need to begin making cuts immediately, said board member Kelly Bentley. “It’s just going to get worse the next year, and the next year,” she added.

The district’s future will look brighter if leaders are able to win public support for more funding, although it’s no longer clear how much money they will ask for. The original plan, which was approved by the board in December, includes two referendums to raise property taxes. One would ask voters to give the district as much as $92 million more per year for eight years for operating expenses such as teacher pay. Another measure, which the district is not expected to change, would pay for $200 million in improvements to buildings.

Ferebee said the amount he originally proposed was based on what the district needs rather than what would be politically feasible. In the face of community feedback, however, the district is crafting a plan that would have a lower price tag. Next, the district will need to explain what services will be cut to keep down costs, he said.

“I anticipate people will want to know, ‘what are the tradeoffs?’ ” Ferebee said. “We owe it to the community to provide that explanation, and we will.”

Indiana districts have pursued more than 160 property tax referendums since 2008, when state lawmakers created the current school funding system. About 60 percent of those referendums have been successful, according to data from Indiana University’s Center for Evaluation and Education Policy.

Stephen Hiller, who has been studying referendums with the center for nearly a decade, said that it’s likely that many districts have had to reconcile how much money they would ideally want with how much taxpayers might be willing to pay. But that conversation likely happens before a referendum is announced and approved by the board.

“I think IPS has it a little more difficult here that it’s happening in the open after they’ve approved it in a very public way,” he added.

School board president Michael O’Connor said that the district’s willingness to change the plan is a sign that local government works.

“We live in the community within which we serve, and all of us have heard pretty plainly and clearly, ‘we think that number might be too big,’ ” he said. “We are being responsive to our constituents.”

Reducing the referendum could be enough to win over many supporters. Several groups that have supported the current administration in the past have not yet taken a stand.

Tony Mason of the Indianapolis Urban League said in a statement that the district needs more money to pay high-quality teachers and meet the needs of its diverse students. But he raised concerns about the potential impact of the tax increase on residents with fixed- or low-incomes.

“IPS will still need to continue in its efforts to make the case for the substantial amount it is requesting,” Mason said. “The IUL is an avid supporter of education, particularly for urban schools that struggle with unique challenges.”

Chelsea Koehring, who taught in the district and now has two children at the Butler Lab School, shares the view that the district needs more money. But leaders have not offered enough details about how the money would be spent, she said, and changing the request raises red flags.

“People, you should’ve had this together before you asked,” she said. “Lowering it at this point — I don’t know that that’s going to instill confidence in anyone that they have any clue what they are doing.”

Correction: February 17, 2018: This story has been corrected to reflect that Indiana districts have pursued more than 160 property tax referendums since 2008. Some districts have held multiple referendums.