The right to know how tax dollars are spent

The just released AZ Auditor General’s Office report on Arizona School District Spending – Fiscal Year 2018 states that,

“In fiscal year 2018, Arizona districts spent 54% of available operating dollars on instruction—the second consecutive increase in the instructional spending percentage in 14 years.”

It also stated that,

“Arizona school districts spent about $3,500 less per pupil than the national average and allocated their resources differently, spending a lower percentage of resources on instruction and administration and a greater percentage on all other operational areas.”

Six key takeaways from an article about the report in the AZ Daily Star are:
1. Even with recent increases to teacher pay, Arizona’s teacher salaries remain over $11,000 below the national average. According to Lindsey Perry, the AZ Auditor General, part of the lower salary may be due to an AZ average teacher experience of 11 years compared to 13.7 for nation.
2. After adjusting for inflation, total per pupil spending is $177 less now than in 2004 and $861 below that of 2008.
3. Arizona spends $8,300 per student with 54% of that being in the classroom, compared with a national average of $11,800 and 60.9% in the classroom.
4. The lower amount Arizona spends in the classroom isn’t due to high administration costs which are only 10.4% of total dollars versus a national average of 11.2%. Rather it can be attributed in part, to higher energy costs due to extreme temperatures, more money spent on food services, higher transportation costs to serve rural and remote areas and higher class sizes.
6. Student support cost is high due to the large percentage of students living in poverty or those with special needs.

Also important to note when discussing classroom support expenditures, is that Arizona lawmakers and educators disagree with the AZ Auditor General’s exclusion of instruction and student support when calculating classroom support dollars. In 2015 in fact, the governor, legislators and educators agreed to a change in state law that required, (beginning with the FY 2016 budget) to include reading and math intervention specialists, media specialists, librarians, counselors, social workers, nurses, psychologists and seed, occupational and physical therapists in the classroom support line item. They understood that these specialists directly contribute to improved academic outcomes for students and should be included in the classroom support totals.

The Auditor General report goes on to state that,

“Although factors outside a district’s control—such as district size, type, and location—can affect its efficiency, some districts operate efficiently and have lower costs despite these factors, while others do not. What the report does not discuss, and is what has never been included, is how charter and private schools perform with the taxpayer dollars they receive.”

Yes, at least charter schools do get audited (not by the state, but an auditor of their choice), but it is a compliance audit, not one to determine efficiency of operations. And, it is the State Board for Charter Schools rather than the AZ Auditor General who is responsible for audit and compliance oversight, so the results of audits are not reported by the latter which makes it difficult to compare them with those of district schools. We do know however, that administration costs in charter schools have typically been double that of district schools. So much for charter schools being models of efficiency.

What we are in total darkness about, is the efficiency of private and parochial school tax dollar spending (via corporate and individual tax credits and vouchers) which in 2017 was about $200M and grows exponentially every year. Funny how those who rail about inefficiencies at public district schools, seem to never be as concerned about tax dollars spent by alternative options. Fortunately, this tide has been turning lately, given all the charter school scandals in the news. As for what’s going on in private schools, that’s anyone’s guess.

Here’s the bottom line. WHEREVER public tax dollars are spent, the public has a right to know the efficiency and effectiveness of that spending. If educational entities accept our money, they should be forced to accept our oversight. It is that simple.

Advertisements

Manufactured Crises

The AZ Capitol Times reports that although Governor Ducey is disavowing any connection to the effort, the GOP’s attack on Arizona’s public (district) schools is far from over. Sean Noble, the political hack running the two 2018 ballot measures though, “funneled millions into Ducey’s 2014 campaign through dark money groups.”

The first initiative would require 60 percent of district funding to be spent in the classroom, (per the U.S. Department of Education.) The second initiative looks to “cap executive pay in K–12 public schools at no more than twice the average teacher pay in the same school district or the highest salary a principal receives within that district, whichever is lower.”

What the hell? I mean, the ink isn’t even dry on the full expansion of vouchers and now the GOP is again trying to stick it to our district students by allegedly solving a problem that doesn’t really exist.

First of all, it is telling that Noble defines classroom spending as “defined by the U.S. Department of Education.” What???? Defer to the Feds about how to do something in Arizona? He obviously knows there is a disconnect in our state between how the AZ Auditor General defines classroom spending and how the Governor, Legislature, and public school leaders define it. The AZ Auditor General defines classroom spending (or instruction) as: “Salaries and benefits for teachers and instructional aides; costs related to instructional supplies, such as pencils, paper, and workbooks; instructional software; athletics; cocurricular activities, such as band or choir; and tuition paid to private institutions.” Our lawmakers though, agree with the Arizona School Boards Association’s (ASBA) definition of what they call “classroom support” which includes funding allotted to “instructional support and student support.” This categories include reading and math intervention specialists, librarians, counselors, speech pathologists, physical therapists, nurses and social workers which due to the high number of Arizona students who live at or below the poverty line, is critical for students to be successful in the classroom. “In 2015, the definition made it into state law, when the governor, legislators and educators agreed that a more holistic approach was required. As a result, the state’s budget for fiscal year 2016 identified student support and instructional support services along with instruction as the categories that support classroom learning.” This should therefore, be no need to turn to any guidance from the U.S. DOE on what defines classroom spending.

Defintion aside, Arizona districts do a good job of ensuring they are spending their limited monies where they will most matter. In FY 2016, the total amount for classroom, instructional and student support amounted to 67.4% which is down only slightly from the 68.3% in 2001. Chuck Essigs, director of governmental relations for the Arizona Association of School Business Officials, notes that is “a very small decline given the many significant cuts to school district funding over this period of time, including the elimination of funding for full-day kindergarten and the current annual cut of over $350 million to district additional assistance.” Likewise, an ASBA analysis determined that, “Arizona’s classroom spending continues to be impacted by its low per-pupil funding which is ranked 48th in the nation, students who are poorer than the national average, higher plant operations costs due to extreme temperatures and high transportation costs to serve rural and remote areas.” In fact, over the last 9 years, the Arizona Legislature has cut District Additional Assistance (monies used for textbooks, technology, items like desks and school buses and building repair and maintenance like fixing roofs and plumbing and repairing air conditioners) by two billion dollars, forcing districts to redirect funding they would otherwise have spent in the classroom. In total, our state has cut $4.56 billion dollars to public schools since 2009 – leading the nation in per pupil cuts. This is important, because all categories of costs don’t shrink evenly when a budget gets cut. Fixed costs (such as teacher numbers constrained by numbers of students), and those associated with utilities, building maintenance, and transportation for example, remain, and then eat up a bigger piece of a smaller pie.

I couldn’t find the US DOE definition of classroom spending Noble refers to. I did find a discussion about “instruction” spending. According to the National Center of Education Statistics (NCES), this includes “salaries and benefits of teachers and teaching assistants as well as costs for instructional materials and instructional services provided under contract.” On their website, the NCES noted that in 2013–14, instruction percentages were 61% of current expenditures. They also said that these expenditures peaked in 2009–10 (shrinking across the nation since then.)

The initiative to “cap executive pay”, is equally misleading. First off, “cap executive pay” makes it sound like our Superintendents are CEOs of giant corporations living the good life. No, that would be ACTUAL CEOs of corporations, not school district administrators. Secondly, Arizona public school administrative costs are below the national average at 10.4% versus 10.9%. And oh by the way, many of these “executives” are in small rural districts, where their jobs are nothing like that of a CEO. “The New York Times reported that, ”In the Miami Unified School District east of Phoenix, the superintendent is also a grant writer and the principal of the elementary school is also in charge of keeping the toilets running, as the district’s director of maintenance.” As for Arizona superintendents being overpaid, not so much. The median school superintendent salary in the U.S. as of March 31, 2017 was $151.636. Although the Phoenix median approaches this number at about $150,000, the median in Tucson is only $137,396 in Lake Havasu City it is $123,108, and in Sierra Vista, it drops to $119,199.

It might be noted by the way, that Arizona’s critical teacher shortage isn’t the only shortage our districts are facing. In 2015, the superintendent turnover rate was the highest seen in the past five years. That same year, of the 45 superintendent openings in the spring, seven were still unfilled by July and 28 were filled by a person with no superintendent experience. And just like 25% of our teachers are eligible to retire by 2020, so were nearly 50% of working superintendents between the ages of 56 and 60, planning to retire soon. Dr. Debra Duvall, former executive director of the Arizona School Administrators Association, said she suspects superintendents are fleeing for many of the same reasons teachers are, basically, that both educational resources and salaries have been stagnant or declining for the past decade. Usurping the local control authority of locally elected governing boards to apply an arbitrary cap, is certainly not the way to turn the tide on our ability to recruit and retain the quality superintendents we need in Arizona.

What we all know this is really about, is continuing to plant the lie in the public’s mind, that district schools are inefficient bloated bureaucracies and that commercializing our schools is the way to go. At least in Arizona, nothing could be further from the truth! If fact, if you want to talk about excessive spending on administration versus instruction, charter schools take the cake. Arizona charter schools spend twice the amount on administration ($1,451 versus $804 in FY2016) as do district schools. And also in FY2016, charter schools spent only 55.33% on classroom instruction, supplies and student support compared to district schools which invested 61.99%.

In short, these “problems” Noble seeks to solve with his initiatives, are manufactured crises, not reality. Of course, he won’t be deterred, saying he has “a ‘couple’ of wealthy Arizonans lined up in support of the plans.” I would just caution him not to allow his wealthy donors to reward the legislators with a free lunch celebration in the event he is successful. Speaker of the Arizona House J.D. Mesnard wisely realized the optics of this with the free lunch offered lawmakers by the American Federation for Children (Betsy DeVos was the chair prior to her SecED gig) after the voucher expansion passage. It doesn’t play well to pass laws that screw over our kids (while benefitting rich donors and corporations) and then do a victory lap around the Capitol.