Drowning Public Education in the Bathtub

Those of you who’ve been around a while will remember lobbyist Grover Norquist, who founded Americans for Tax Reform in 1985. This was during the Reagan years when government was seen as a drag on the free market. Norquist is probably best known for this quote in 2001: “I don’t want to abolish government. I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub”

It has been obvious for many years that Arizona Republican lawmakers want to drown our district schools since the budget for K-12 education makes up almost 44% of the state budget. But then, the predominant responsibilities of the AZ state government are to provide for public safety and public education, so…it stands to figure that education would comprise a large portion of the budget.

If you’ve listened to the AZ Republican lawmakers’ talking points over the last few years, you’d tend to believe that public education has been showered with funding. The truth however is quite another story. In fact, adjusting for inflation, K-12 funding per public school student hasn’t increased in 21 years and leaves us still 48th in the nation. In 2001, districts were provided $8,824 per student, and now, only $8,770. The high-water mark in 2007 of $10,182 per student was under Democratic Governor Janet Napolitano. This was actually $1,412 more than in 2022.

You see, pretty much all the GOP has been doing over the last few years is to reinstate funding they took away to begin with. And to add insult to injury, they’ve been chipping away at the amount available to district schools by the continuous expansion of privatization options.

Guess you’d have to be living under a rock to have missed the battle over vouchers (Empowerment Scholarship Accounts) during the past decade. ESAs were enacted in 2011 and GOP lawmakers have been steadily expanding these vouchers over the years. In 2022, (I’m really cutting to the chase here), they were finally successful in enacting a universal expansion. Not only are students no longer required to have previously attended a district school to qualify for a voucher, but there are no guardrails or caps and no transparency or accountability for private schools. And, only two months into the new law, AZ DOE had received nearly 30,000 filings for the vouchers, totaling an immediate hit to the state fund of $210M. The Joint Legislative Budget Committee only budgeted $33M for the program for the 2022-23 school year, but some now estimate the bill could approach as much as $500M.

Student Tuition Organizations (STOs) are another vehicle to poke holes in the district funding life raft. They allow taxpayers to take a dollar-for-dollar reduction in their state taxes when they give to an approved STO which provides scholarship funding to children attending grades K-12 at qualified private schools in Arizona. These STOs basically serve as a pass-through for tax credit donations to private schools while keeping 10 percent for themselves. STOs have also seen tremendous expansion over the years with the individual tax credit amount now at $1,306 which is over six times that which taxpayers can give to district schools. There are also two types of tax credits corporations can take and the combined cap for those is now up to $141M.

Just introduced last week by Representative Livingston, is HB 2014 which seeks to expand the aggregate dollar amount of STO tax credits from $6M in 2021-22 to $10M in 2022-23, to $15M in 2023-24, and to $20M in 2024-25. It also would eliminate the need for recipients of a corporate, low-income scholarship to have attended a district school prior to receiving the scholarship. Keep in mind that removing the requirement to have first attended a district school prior to receiving STO or ESA monies, accommodates students already in private school or being homeschooled, at their parent’s expense. In fact, that was the case for 80% of the filings for the universal expansion last year. And, when a student taking an ESA or STO scholarship was never in a district school, there is zero reduction in cost to that district school and ultimately, taxpayers.

These schemes are chipping away at the foundation of our district (community) schools so that eventually, they can be “drowned in the bathtub”. This is not by accident, but rather, by design. There are those in the Legislature, who do not believe in equal opportunity to learn and thrive, but rather, in survival of the fittest. And, they are hell-bent on deciding who the “fittest” are. Privatizing public education primarily serves those who “have” at the expense of those who “have not”. This continued war on public education will continue to weaken our communities and our democracy as it solidifies power and influence with those at the very top.

Want to fight back? Go to SOSArizona.org.

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Focus People, Focus!

I was at a SOS AZ presentation on public education funding last night and after a slide about corporate tax credits, one young woman advocated for holding the corporations responsible for not supporting our schools. Although I would normally be one of the first to vilify corporate America for their greed at the expense of the rest of us, I think her ire was a little misplaced. Arizona corporations after all, are just taking advantage of the laws incentivizing them to act a certain way. These aren’t loopholes that corporations are paying high-powered lawyers and accountants to find for them, but incentives the Legislature has directly handed to them to. It isn’t after all, like the tax credits allow the corporations to pocket more profit, they are still paying out the same amount of money (whether in taxes or credits), they just get to choose where their taxes go.

THEREIN lies the rub. THEY get to choose where their tax dollars go…not us, the people. That’s the problem with all these tax credits and exemptions, 331 is the number I heard last night, that the Arizona Legislature has granted. You see, ideally, tax credits should be granted to incentivize behavior that voters want and that produces good for all of us. We’ve all heard the saying though, that “power corrupts and absolute power corrupts absolutely.” When all the power in a government is consolidated on one side, the tendency is not to look at the common good, but the good of “your” people. And, when it is apparent to lawmakers that they can act with impunity because they will continue to get reelected despite their failure to provide for all the people in their care, the tendency is for them to do whatever they want.

Yes, corporations also have a responsibility to care about the common good, but I really don’t blame them for taking advantage of legal incentives for directing their tax dollars where the Legislature wants. The rest of us suffer though, because these incentives reduce the size of our general fund “pie”. We also suffer because the diverted funding, essentially our tax dollars, then has no accountability nor transparency associated with it. We don’t know if it is being used for the purpose intended and we certainly don’t know the return on our investment.

This is a huge problem in Arizona with at least 75% of corporations paying the minimum $50 in state taxes. Again, it isn’t like they aren’t giving up the money, but it isn’t coming into the general fund in the form of tax dollars that we can then hold the Legislature accountable for. In fact, on a budget of less than $10 billion, Arizona gives away almost $13 billion in corporate sales tax relief alone. This is just one of the reasons the Arizona Town Hall on PreK–12 Funding last year, wrote that it is the “size of the pie” that is the problem, not the relative percentage given to our public schools. This was clearly illustrated by the SOS AZ briefing when a slide comparing state populations versus annual budget was shown. AZ has about 7 million people, with a budget under $10 billion versus Wyoming with 585,00 people and a budget of $8.8 billion and Maine with a population of 1.33 million people and a budget of $7.6 billion. To be sure, there is a lot to unpack here, but it is interesting none the less.

None of this is by accident, the AZ Legislature is just following the “drown it in the bathtub” playbook to reduce the size of government. No sense, (I’m guessing they think), in having government do something the private sector could do better and cheaper AND…make a profit on.

Only problem is, that often isn’t the case. Take the privatization of Arizona prisons for example. Arizona’s corrections annual budget is over $1 billion—at 11% of the General Fund, the third largest appropriation of any state agency. When the decision was made to privatize them in 2005, bids by the prison companies no doubt touted lower operating costs than the state. Since then though, spending on prisons has grown by at least 45%. Of course, we aren’t entirely sure of the exact amount because in 2012, the state Legislature repealed the statute requiring cost and quality comparison reviews between the state’s public and private prisons. Before that repeal, the Arizona Department of Correction found in a 2010 review, that medium-security state prison beds cost $48.16 while medium-security private prison beds cost $55.30. In fact, between 2008 and 2010, Arizona overpaid for its private prisons by about $10 million. Now, the lack of transparency and accountability for our tax dollars is most assuredly guaranteeing skyrocketing costs, lackluster results, and pay-for-play abuses between lawmakers and the private prison corporations.

The same thing is happening with our public schools. Tax credits and Empowerment Scholarship Accounts (ESAs), divert or withdraw funding from our General Fund and the public schools it resources, and give it to private entities with no responsibility for transparency and accountability. And, because there are huge out-of-state monied interests that are using Arizona as ground zero for war against public education, our lawmakers are being bought off (via campaign contributions or influence peddling) to do their bidding. Numerous charter school operator abuses that have recently come to light are, no doubt, just the tip of the iceberg.

The Washington Post tag line, “Democracy Dies in Darkness” says it all. If our democratic republic is to stay strong and vibrant, we must have transparency and accountability so that our government, at all levels, can remain one of the people, by the people, and for the people. The privatization of programs and services that provide for the common good (the military, public schools, prisons, police, fire, etc), is simply a way to take “the people” out of the equation…to ensure we no longer have a say in how we are governed. It is absolutely critical for these “common good” programs and services to be paid for by all of us so that we retain ownership, the authority and yes, the responsibility, to ensure they produce OUR desired return on investment. It is really this simple, to have a government that works for us, we must work for it.

Misogynistic Malfeasance

What is going on with K–12 teachers in Arizona’s district education systems is nothing short of malfeasance on the part of the state and ultimately, on the part of the people. We have allowed our teachers to be disregarded and undervalued to the point that one must question why anyone would care to be a teacher. Truth is, today very few are choosing that route.

Four weeks into the 2016–2017 school year, Arizona saw 53 percent of its district classrooms without a certified teacher; over 2,000 had no teacher and another 2,000 had an uncertified person at the head of the class. Part of the problem is recruitment and retention. In fact, an upcoming report from ASU’s Morrison Institute for Public Policy, states that 85% of rural school and 77% of urban administrators say hiring new teachers is somewhat or extremely difficult. The report also states that Arizona is losing more teachers than bachelor of education degrees produced by its three state universities. Turnover is high, with 22% of teachers not teaching in state after one year and 42% of them leaving the profession within three years.

Probably one of the biggest problem is teacher pay that is rock bottom lowest (50th) in the nation. In fact, elementary school teachers here are paid 14% less than in 2001 and secondary teachers are paid 11% less. Governor Ducey’s response for next year’s budget is to give teachers a 0.4 percent pay raise amounting to $187 extra next year on an average salary of $46,384 in 2016. I don’t know about you, but an extra $187 per year wouldn’t convince me to do anything I hadn’t already decided to do.

This paltry teacher raise isn’t the only funding boost to education Ducey is recommending, as he’s proposed a total of $113.6 million for K–12 education next year. But, in light of the fact that per pupil funding is $1,365 less than it was in 2008 (adjusting for inflation) that amount is not even a drop in the bucket compared to the $1.43 billion that has been cut.

The Legislature (including some Republicans) is going a step further in proposing a one percent raise for teachers, which would amount to an additional $430 per year at a total cost of $31 million. Democratic legislators and AZ Schools Now, a coalition of education groups, are advocating for a four percent raise which would give the average teacher an annual boost of $1,720 by freezing corporate tax cuts. Even this amount though, would still leave Arizona teachers $8,616 short of the U.S. average annual salary for teachers.

Why this isn’t something all of us are screaming bloody murder about is, I’m sure, multi-faceted. The most obvious is it doesn’t support the agenda of school choice proponents. After all, from Betsy DeVos and her American Federation for Children, to Michael and Olga Block and their BASIS empire, to Senator Yarbrough and his cash cow School Tuition Organization, raising the salaries of Arizona’s district teachers just isn’t a high priority. But, there is likely a more insidious reason, one that most people probably never think of, and that is the fact that most K–12 teachers are, and traditionally have been, women.

Back in 2014, a teacher in Portland named Nikki Suydam, penned a guest opinion published by the Oregonian on oregonlive.com. In it, Ms. Suydam pointed out that “blaming women for society’s problems is as old as the story of Eve in the Garden of Eden, or Pandora and her box of woes, or every medieval witch hunt spurred on by crop failure or plague outbreak.” “Contemporary education reformers” she wrote “have launched a similar witch hunt to root out ”rotten apples“ from a profession still more than 75 percent female.”

She goes on to make the point that “No similar reform movement targets doctors (65 percent male) for our nation’s spiraling obesity epidemic. America’s dentists (78 percent male) are not held responsible for their patients’ tooth decay. Law enforcement officers (80 percent male) are not blamed for crime statistics. Nor are engineers (78 percent male) ‘held accountable’ for the crumbling U.S. infrastructure.”

And yet, teachers (three-fourths of whom are women) are often vilified for any lack of success in today’s public district schools. This, despite the fact that 20 percent of Arizona’s children live in poverty and the vast majority of these children attend district schools. This despite the fact that Arizona is 48th in the nation in per pupil spending. This despite the fact that our Governor and Legislature continue to push for ways to siphon more tax dollars away from our district schools.

Let’s face it. Whether we are talking about homemakers, or nurses, or teachers; professions traditionally filled by women just don’t earn the same respect and salaries of those dominated by men. We really should get past this old paradigm though, and not look at who does the work, but what work is done. After all, for most people, their child is their most precious “possession” and they turn over the care of this precious possession to a teacher for six to eight hours each day. Shouldn’t we want these teachers to be highly skilled, appropriately valued, and sufficiently compensated?

Numerous studies have looked at teachers’ impact on student achievement. A 2012 research study by the RAND Corporation, found that “among school-related factors, teachers matter most.” The study also found “When it comes to student performance on reading and math tests, a teacher is estimated to have two to three times the impact of any other school factor, including services, facilities, and even leadership.” Steve Seleznow, President and CEO of Arizona Community Foundation and a former school administrator said, “Teacher pay and support is a proxy for how highly we think of students and their education…If we value the education our children receive, we must provide teachers compensation commensurate with those values.”

Every parent knows that children are sponges and they are really good at picking up on the dissonance between our words and our actions. When we undervalue our teachers, on some level, our children know we are undervaluing them as well. And that my friends, is a really, really sad state of affairs.

They can have their own opinions, but not their own facts

The first session of the 53rd Legislature began yesterday and as we public education advocates “batten down the hatches” and plan our “assaults”, I thought it a good time to provide what I believe are some of the most salient facts about the state of education in Arizona today.

  1. Educational Achievement. The Annie E. Casey Foundation’s Kids Count 2016 report ranks us 44th in the nation, Education Week’s Quality Counts 2016 ranks us 45th, and WalletHub 48th. Might there be a nexus to our other rankings provided below?
  2. Per Pupil Funding. Our K–12 state formula spending (inflation-adjusted), was cut 14.9% from 2008 to 2016 leaving us 48th in the nation.
  3. Propositions. The $3.5 billion Prop. 123 provides over 10 years (only 70% of what voters approved and the courts adjudicated) disappears in 2026. Prop. 301, which includes a 0.6% state sales tax, raises about $600 million per year for schools and self-destructs in 2021. There is now talk of increasing the tax to a full cent which would bring in around $400 million more per year or, adding an additional penny which would up it $1 billion.
  4. Teacher Shortage. We have a critical shortage of teachers willing to work in the classroom with 53% of teacher positions either vacant or filled by an individual who does not meet standard state teacher certification requirements. With 25% of the state’s teachers eligible for retirement by 2020, this problem is only going to get worse. Pay is just one of the reasons teachers are opting out, but with Arizona ranking 45th in terms of teacher salaries against the national average, it is real. In fact, “Arizona’s teachers earn just 62.8% of the salary that other college degree-holders do in the state – the lowest ratio nationwide. WalletHub scored the state the third-worst for teachers in terms of ”job opportunity and competition“ and ”academic & work environment.” Providing them a $10,000 raise (more in line with national averages) would cost the state an additional $600 million.
  5. Voter Support. In a December 2016 poll of Arizona voters, 77% said the state should spend more on education and 61% said they’d be willing to pay higher taxes to do so.
  6. Double-Down Ducey. Our Governor has promised not to raise taxes but to propose a tax cut every year he is in office. This, on top of two decades of tax cuts that equal a cumulative impact on the 2016 general fund of $4 billion in lost revenue. In fact, more than 90% of the decline in revenue since 1992 has resulted from tax cuts versus economic downturn–our troubles ARE NOT a result of the great recession. And, Arizona ranks in the bottom third of states in terms of tax rates.
  7. Good Ideas With No Way to Implement Is Called Philosophy. In her 2017 AZ Kids Can’t Wait plan, Superintendent of Public Instruction Diane Douglas has recommended an additional $680 million in common-sense, no frills funding for public schools but points out it is not her job to appropriate funds and the Governor’s Classrooms First Council spent over a year studying how to modernize the school funding formula only to determine that just rearranging the deck chairs won’t be enough…more money must be provided.
  8. They Owe, They Owe, So Off To Court We Go. Over 20 years ago, the AZ Supreme Court voided the system under which districts were responsible for capital costs because of the “gross inequities” created. The Legislature agreed to have the state assume responsibility for building and maintaining schools but that vanished under Governor Brewer’s time as a budget-saving maneuver leaving us back where we started. In fact from 2008 to 2012, districts only received about 2% of the funding they needed for renovations and repair of school facilities and the problem continues. A new lawsuit is in the works.
  9. It’s For The Poor Kids…NOT! Arizona’s educational tax credit (individual and corporate) and the Student Tuition Organizations (STOs) that funnel the monies to private and parochial schools will deny the AZ General Fund of almost $67 million in revenue in 2016/17 (the maximum allowed.) Due to a 20% allowable increase each year, the cap for corporate tax credits will be $662 million by 2030. By way of comparison, the total corporate income tax revenue for FY 2015 was only $663 million. And yet, even in 2011, As many as two-thirds of Arizona corporations paid almost no state income tax partially as a result of the program which predominantly serves students whose parents could afford the private schools without taxpayer assistance. Just for the original individual tax credit for example, 8 STOs awarded over half of their scholarship funding in 2014 to students whose families had incomes above $80,601. By the same token, Arizona’s voucher program (Empowerment Scholarship Accounts) is billed as the way for disadvantaged students in failing schools to have more opportunity. Truth is, in the 2015/16 school year ESAs drained $20.6 million from  district schools rated “A” or “B”are and only $6.3 million from schools rated C or D. Besides, the mere existence of school choice in whatever form it takes does not in itself provide access and opportunity. As Charles Tack, spokesman for AZ Department of Education said, “The economic situation of a family will always factor in.”
  10. Want A Voice? Stick With Where You Have a Vote! Parental and taxpayer oversight and voice is vastly greater in district schools with locally-elected governing boards, annual state-run audits, annual Auditor General reports on school efficiencies, AzMERIT test score results, and other required reporting. Commercial schools (charters and privates) do not have the same requirements for certified teachers and transparency and accountability; nor are they required to provide taxpayers any information regarding return on investment.
  11. Apples and Oranges. Commercial schools do not – across the board – perform better than do our district schools. Yes, there are pockets of excellence, but those exist in district schools as well. Comparisons are difficult to make because the playing field is not level, with commercial schools often managing to pick the cream of the crop while district schools take all comers. A key point to note though, is that charter schools spend double the amount on administration than districts.
  12. A Great Start Is Critical For All Kids. Full-day kindergarten is essential to ensure every child (especially those who are disadvantaged) has a more equal footing on which to start their education. In today’s fast paced, global economy, preschool is also critical and has been proven to provide as much return on investment as $7 for every $1 spent. Restoring all-day kindergarten statewide would cost an additional $240 million. We’ve had it before incidentally. In 2006, Napolitano made a deal with legislative leadership for all-day kindergarten in exchange for a 10% cut in individual income tax. Four years later, the Legislature cut full-day kindergarten but the reduction in taxes still exists.
  13. District Schools and School Choice Cannot Co-Exist. When students trickle out to commercial schools, almost 1/5 of the expense associated with educating them remains despite the district’s total loss of the revenue. And while private school enrollment dropped two percent from 2000 to 2012, tax credits claimed for the students has increased by 287%. This, while public school enrollment increased 24.1% during that same time but state appropriations (from General Fund, State Land Funprivate-public-school-fundingds, and Prop. 301 monies) decreased by 10%.

It is clear there are several current and looming crises in Arizona K–12 education. And yet, Senator Debbie Lesko (R), has been quoted as saying, “Balancing the budget is always the most important work of the state legislature.” Really? That’s why the people of Arizona elect our state lawmakers? I don’t think so. Rather, I think we want them to ensure our children receive a quality education, that our roads are safe to drive and our water is safe to drink, and that our police and other first responders protect us from danger. In short, we want the Legislature to ensure appropriate capability to provide for the common good and we send them to Phoenix to figure out how to do that. Yes, they are mandated to balance the budget but, I would argue, that isn’t their raison d’être.

Arizona voters have made it clear they are willing to pay higher taxes to provide more funding to our public schools unfortunately, not enough have made the connection between a lack of funding for public education and the legislators they elect that are causing that problem. Yes, the prohibition to raising the required revenue is pain self-inflicted by our Governor and GOP-led Legislature. And, we need only look to Kansas to see that cutting taxes to attract companies to our state is a race to the bottom. I guarantee over the long haul, quality companies prefer a well-educated workforce and good quality of life for their employees over tax cuts.

In his State of the State address yesterday, Governor Ducey said, “I have a commitment our educators can take to the bank: starting with the budget I release Friday, I will call for an increased investment in our public schools – above and beyond inflation – every single year I am governor.” What is notable about this statement is his reference to “public schools” and, the fact that he followed it up with the statement that “we won’t raise taxes.” Promising support for public schools isn’t the same thing as promising it for district schools. In fact, some lawmakers now equate the term “public schools” to mean any school that accepts taxpayer dollars.

Let me be clear. I believe any promise to provide significant additional monies to public education without a willingness to raise additional revenue, is total bullshit. The pie is only so big and there are only four basic ways to significantly increase its size. Either corporate tax cuts are curtailed, additional taxes are levied, funding meant for other purposes is siphoned off or, important programs are cut. Senator Steve Smith (LD11-R) who sits on the Senate’s education committee, suggested funding could be found by moving money away from state programs “that may not be working so well.” Perhaps he was thinking of Child Protective Services which has continued to flounder and endanger children (primarily because sufficient resources have not been provided) even after Governor Ducey promised fixes when he first took office in 2015?

Arizona simply cannot move the educational needle without a significant additional investment in our district schools. These schools are where close to 85% of Arizona’s students are receiving their education, doesn’t it make sense that this is where we should dedicate the majority of our funding and efforts?

Partisan? You bet! My party is Public Education.

I am a big believer in the two-party system. Our system of government works best when all sides are heard and considered. That is most likely to happen when the power is balanced, forcing legislators to negotiate and compromise. Our founding fathers purposefully designed many checks and balances into our system and I believe our two-party system helps in that regard.

In Arizona, the Democrats must gain only two additional seats in the State Senate to reach parity with the Republicans and in my opinion that would be a very good thing. Then, our senators from both parties would be forced to work together in finding good compromises to solve the problems facing our state.

One of the biggest problems facing our state is the inadequate resources provided our district schools. Arizona is one of the nation’s leaders in promoting school choice and although 80-plus percent of our students choose district schools, resources continue to be siphoned away from these schools in favor of other options. Many of our legislators, largely the Democrats, get this. Several Republicans are also on board.

Friends of ASBA, a sister organization of the Arizona School Boards Association, publishes an annual voting record of our legislators. This “Friends of ASBA Educating Arizona” report shows how every Arizona legislator voted on high priority K-12 education bills in 2016. The bills are grouped into three focus areas: funding, vouchers and local control, and the voting record is based on whether the legislators voted with, or against the ASBA position.

I encourage you to click here for the report to get the entire story. As you go through the report, you’ll note 56 legislators received “extra credit” for their behind the scenes efforts on behalf of public education. This credit is noted by + signs and the maximum extra credit points awarded were +++. Below, I show the Republican legislators who voted with ASBA’s position more than two-thirds of the time. I’d like the percentages to be even higher, but 33 Republican legislators didn’t even have a score higher than 50%. I should note that four Democratic legislators, Rep Sally Ann Gonzales (57%), Rep Jennifer Benally (43%), Rep Albert Hale (57%), and Rep Juan Mendez (57%) did not meet my “two-thirds of the time voting with ASBA” threshold.

LD Senator % Representative % Representative %
1 Steve Pierce++ 67 Karen Fann+ 71 Noel Campbell 71
2 Christopher Ackerley++ 71
8 TJ Shope+ 71
15 Heather Carter++ 71
16 Doug Coleman++ 100
18 Jeff Dial++ 67 Jill Norgaard 63 Bob Robson++ 71
20 Paul Boyer++ 63
21 Rick Gray+ 63
28 Adam Driggs++ 89 Kate Brophy McGee++ 71

The legislators in the chart above have at times taken brave stances on behalf of our district school students. Those I’ve actually met with seemed sincerely intent on doing the right thing for our students. They have earned my respect.

It is never a good idea to be closed to the opinions and ideas of others, nor is it smart to vote straight party line without regard to the issues and how candidates lean on those issues. For incumbents, the voting record tells us where they stand on public education. For candidates who haven’t ever been elected, it is our duty to read and listen to what they say about where they stand. And oh by the way, it is not good enough for a candidate to say he/she is “for education.” If you want to be sure they support the efforts of the schools educating over 80 percent of our students, they must say they are “for public education.” Of course, this leaves the door open for them to be staunchly pro-charter, but at least there is a modicum of transparency and accountability for the taxpayer dollars provided charter schools unlike with private options.

No matter what problems you most want solved, there can be no doubt that the more our students are prepared to deal with them, the better off we will all be. In my opinion, locally elected, governing board-led, public school districts offer the best chance we have to ensure every student has every opportunity to succeed. That’s why I am passionately pro-public education and why that’s the “party” that most matters to me.

Open Letter to Diane Douglas

Dear Diane,

It is with great sadness I write you this letter. I say that because I just had my hopes dashed once again that people of different political ideology could actually trust each other to put the mission over self-interest. In my Air Force career the “mission” was almost always paramount, but I’ve not found it to be quite as prevalent in civilian life, especially when politics are involved. I must admit that after my most recent meeting with you, I was encouraged that you were “mission-focused” on behalf of all Arizona students. In my opinion, you said all the “right” things and your “AZ Kids Can’t Afford to Wait” plan outlines 30 proposals that with few exceptions, seem like the way right to go. And, although you support school choice, you also recognize that 85 percent of Arizona’s students attend district schools and that you stated you are committed to getting them the resources they need.

I supported your opponent for Superintendent of Public Instruction in 2014 and was incredulous and very disappointed when you won. Your tumultuous beginning as the Superintendent confirmed my belief you were not the right person for the job. Of late though, I’ve begun to feel that you’ve settled down and if not yet “hitting your stride”, at least properly “setting up in the chocks.” Unfortunately, my breath was taken away this morning when I read my public education Google Alerts. The headline that caught my eye was Arizona Superintendent of Public Instruction Diane Douglas endorses Donald Trump for President. OMG!!! Are you freakin’ kidding me?

Don’t get me wrong, the purpose of this letter is not to harangue you on your choice of who to vote for. Yes, I personally think anyone who votes for Trump is crazy, but I recognize it is your right as a U.S. citizen in the greatest democracy in the world to vote for whomever you wish. What does bother me, is that you felt the need to publicly endorse this misogynistic, xenophobic, racist candidate who has shown himself to lack the temperament, knowledge or even the desire to learn what he needs to know to serve as President of the United States of America, let alone as Commander in Chief. Even a FOX news poll from May of this year showed only 38 percent of registered voters trusted Trump to do a better job than Clinton on the use of nuclear weapons.

Geo-politics and nukes aside however, I ask you what is Mr. Trump’s plan for education? You wrote in your news release that you endorsed him because he “shares my belief that the federal government’s role in education needs to be reduced rather than expanded.” Well, that certainly will solve ALL our educational problems…especially here in Arizona! After all, we have a Legislature and Governor totally dedicated to serving the needs of our one million plus students and their teachers in Arizona’s district community schools. Wait…what…we don’t? Oh yeah, that was just the dream I have. Besides, as you already well know, the new Every Student Succeeds Act signed into law in December 2015 has already greatly reduced the federal government’s role in education. 

The National Education Association (NEA) published an article on August 29th about Mr. Trump’s education plan titled “Trump to release ed plan; details so far show little understanding.” First of all, Trump has yet to release his education plan. What we know thus far is that Trump is “the product of private schools, stands behind school vouchers, which in community after community have diverted scarce resources from community schools to private and religious schools that are allowed to reject students with special needs.” Of public [presumably district] schools, Trump has said, “Schools are crime-ridden and they don’t teach.”

And who is Trump’s point man on education other than Neurosurgeon Ben Carson who he credits as an expert on the subject. In a news conference, Trump said, “I was most impressed with his views on education. It’s strength. It’s a tremendous strength. So Carson is going to be involved with us, particularly on health and education.” Please keep in mind that Ben Carson is the guy whom Donald Trump compared to a child molester. Carson also thinks little of public school students saying, “The best education is the education that is closest to home, and I’ve found that for instance homeschoolers do the best, private schoolers next best, charter schoolers next best, and public schoolers worst.” This statement seems to call into question his knowledge about the fact that charter schools are public schools and, he is wrong…on the whole, charter schools don’t do better than district schools. But then, Mr. Carson seems to have a penchant for rejecting facts since he also doesn’t believe in evolution. As a Seventh-day Adventist, he espouses the “creationist theory that holds all life on Earth was created by God about 6,000 years ago.” This believe rejects Darwin’s theory of evolution which virtually all of today’s scientists agree is true.

All this is disturbing, but still isn’t really at the crux of my dismay about your endorsement of Trump. What really bothers me is the kind of leadership he projects. According to a national survey of educators by the Southern Poverty Law Center, the presidential campaign is producing an alarming level of fear and anxiety, [The Trump Effect], among children of color and inflaming racial and ethnic tensions in the classroom.” In the report, 67 percent of educators reported students in their schools (often immigrants, children of immigrants, Muslims, African Americans and other students of color), were concerned about what might happen to them or their families after the election. Students are stressed and anxious and it is detrimental to their well being and learning. SLC reports that dozens of educators reported daily worries from students “being sent back or having their parents sent back.” Many of these students and/or their families are American citizens or are here legally and yet they feel under attack and teachers are having a very hard time responding. A high school teacher in Boston for example, said her students are, “confused as to how a person who has no respect for American ideals can be so popular.”

Of course, it isn’t just the racism that is detrimental to the learning environment, it is also the hateful and mean rhetoric Trump has used. After an anti-bullying assembly, a middle school teacher in Michigan told us that [insults, name-calling, trash talk] isn’t bullying, they’re just ‘telling it like it is.’” Likewise, a high school teacher in Georgia wrote, “Students have become very hostile to opposing points of view, regardless of the topic”, and “any division now elicits anger and personal attacks.”

In your “Kids Can’t Wait Plan”, you discussed the action committees and other steps you’ve taken to help improve educational outcomes for African-American, Native-American and Latino students. Your plan, and willingness to engage these students and their communities left me hopeful. But now, I must ask you how in you think these students or their communities can have faith you are truly committed to helping them when you have publicly endorsed a candidate for President who has made it clear he prefers a homogenous (read white) America and, has total disdain for our community district schools?

You gave me one of your challenge coins at our last meeting and told me your challenge to me was to ALWAYS put the kids first. In fact, you shared that you constantly challenge your staff to ask themselves if what they are doing has really “moved the needle” for Arizona’s children? So, I now ask you whether your endorsement of Trump has “moved the needle” for the one million plus Arizonan students in our district schools? I think both of us know the answer to this and it doesn’t start with a “Y.”

Just rearranging the deck chairs ain’t gonna cut it

Representing the AZSchools Now Coalition, Arizona’s 2016 Teacher of the Year Christine Marsh and I recently attended and spoke at a Classrooms First Initiative Council meeting in Phoenix. The Coalition consists of the Arizona Associations of: Education, Business and Education, School Boards, Superintendents, and Parent and Teachers. Also part of the coalition are the Children’s Action Alliance, Valley Interfaith Project, and Support Our Schools AZ. It was formed post-Prop 123 to provide focus to reinvesting in public schools as a way to boost student achievement.

The Classrooms First Initiative Council was established by Governor Ducey in January 2015 and charged with modernizing the school finance formula to ensure adequate funding is available for teachers and classroom instruction. The first of the two main events of this latest meeting was a presentation by Expect More Arizona on the Education Progress Meter. This meter has been accepted by virtually every education group, numerous community and municipality organizations, and 26 major business entities. It measures Arizona’s progress in eight areas to include teacher pay, preschool enrollment, 3rd grade reading, 8th grade math, high school graduation, opportunity youth, college going, and post-secondary attainment.

The other main discussion was about the proposals submitted by education groups for the Council’s consideration. In speaking for the AZSchools Now proposal, I advocated for additional resources to attract and retain high quality teachers in light of the both the current shortage as well as the some 26,000 eligible for retirement starting in 2018. Not only is the shortage critical, but teacher turnover is disruptive and expensive, costing as much as $50,000 to find and contract a new one. ADE reports we have almost 93,000 certified teachers in Arizona, but only 67,000 of them are working in the profession. Many of those who left would love to still be teaching, but were forced to seek employment that would better support their families. (According to the Bureau of Labor Statistics, the median Arizona elementary school teacher salary is $40,590 while the national median is $54,120. Starting salaries are much lower, often in the $30,000-per-year range.) Even so, one of the changes under consideration by the Council is to eliminate the Teacher Experience Index. As you might guess, this index helps keep experienced teachers in our AZ classrooms and the Coalition believes eliminating it will only exacerbate the problem. If we want to ensure high-quality education, we must have high-quality teachers and that can’t be done on the cheap. With fewer teachers entering the pipeline and over 26,000 eligible to retire by 2018, merely “rearranging the deck chairs on Titanic” I said, won’t do anything to keep this “boat from sinking.”

I also spoke about the Coalition’s recommendation to consider adding a B-weight for poverty to the school finance formula. This is critical because statewide, 58 percent of our K-12 students are eligible for free and reduced meals and many deal with a multitude of poverty related challenges at home, greatly affecting their preparedness to learn at school. That’s why the Coalition believes it is one of the most significant steps needed to make the school finance formula more equitable and fair. We know these students typically face barriers relating to transportation, housing, and levels of support in their communities and families for which additional resources are needed to help them achieve success.

Christine also made a case for additional funding, but her impassioned plea was focused on ensuring reasonable classroom sizes so that no students fall between the cracks. She told of average student loads for AZ high school teachers of 170 students and said that makes it tough for teachers to give each student the individualized attention they deserve. (The National Center for Education Statistics’ reports Arizona has 1.1 million K-12 students, and just 48,358 full-time teachers making our student-teacher ratio almost 23:1 compared to the national average of 16:1. According to WalletHub, only California and Utah are worse.)

She also pointed out that a future President of the United States is in a K-12 classroom somewhere, and current events highlight the importance of our getting this right. Stating that yes, salary is an important factor to encourage teachers to stay in their profession, Christine said it is also important that teachers feel they have what they need to really make a difference. And although she wanted to focus on the needs of students, not teachers, she noted the reality of workloads on the ability to do the job. Even if, she said, she only assigns three writing assignments per week to her 160 students, and each of those papers only takes five minutes to grade, that can amount to over 40 hours of grading time per week, and that takes place outside of the classroom. As if illustrating this point, after she spoke to the Council Christine resumed grading the stack of student papers she had brought with her.

Chris Thomas, Lead Council for the Arizona School Bards Association, said Arizona has one of the most equitable funding formulas in the nation, but is not adequately funding the formula. He highlighted the need for reinstating the cost analysis for special education funding as a way to ensure costs to provide service to these students are adequately funded while not pulling funding away from other programs. Chris also made the point that in considering a new funding formula, transparency should be ensured for the use of all public funds. Sarah Ellis, a Flagstaff Governing Board member, spoke during public comments, reiterating the need for locally controlled funding and the continuation of desegregation funding. For the Flagstaff Unified School District she said, the desegregation funds exceed that received from Prop. 123.

I was encouraged by the questions asked by members of the Council as well as the number of attendees in the audience. There was standing room only and attendees had come from all over the state to participate. I was pleased to hear some Council members voice their concerns that viable solutions to the finance formula would not be possible without additional resources, including the Chair, Jim Swanson. One member did note the reality of convincing the state legislature of this reality, but Swanson indicated he is ready to take on those who may not agree with the Council’s eventual recommendations.

Overall, I was encouraged by the meeting. Although I would have liked the membership of the Council to be more representative of the K-12 population in our state (majority Hispanic), I found them to be actively listening and serious about finding the best solutions. I am also very encouraged about the AZSchools Now coalition. One of the Coalition members, Support Our Schools AZ and its subsidiary the Arizona Parents Network, is an example of the grassroots efforts that has blossomed during and since the post-Prop 123 battle. What is especially important about this development is that it involves mostly parents who are naturally fierce advocates for their children.

One such fierce parent is Alana Brussin, whose My Turn” op-ed titled Tying school success to vouchers is a sham was recently published by the Arizona Republic. Her piece highlights the reasons community district schools are the overwhelming choice of Arizona families, in spite of the best efforts of state leaders and other school privatization advocates.

Just as Mothers Against Drunk Driving turned the tide on the public’s acceptance of drinking and driving, I’m confident our fierce parents can turn the tide on the assault on community district schools and ultimately the students they serve. Every child deserves every opportunity to succeed and when that happens, we all succeed. It really is that simple.

Educated Workforce = State Prosperity

Okay. Let me get this right. Daniel Scarpinato, Press Aide to Governor Doug Ducey says Arizona schools are the 4th worst in the nation because school choice siphons taxpayer dollars out of community (district) schools into private and parochial schools, leaving those community schools underresourced. Okay, those weren’t his exact words, but that is what he intimated. His intent was of course, to invalidate the WalletHub study because it only looked at our public schools and not private schools. So, he thinks the study is invalid because it ONLY pertains to 96 percent of Arizona’s K-12 students?

WalletHub looked at 17 key metrics and found that Arizona is: 49th for pupil to teacher ratio; near the bottom in average ACT score; and below average for low-income student high school graduation rate. Even though these types of rankings are nothing new for Arizona and, he doesn’t dispute the numbers, Scarpinato called the study “baloney.” Rather, he went on to deflect the blame by citing Arizona’s rapidly increasing population as part of the problem for low per-pupil funding and sidestepped whether this meant funding should be increased to keep up with that growth. He also dismissed the idea of halting corporate tax cuts. His justification – Arizona needs to remain competitive with other states in its efforts to cut corporate taxes. The Economic Policy Institute (EPI) says “cutting taxes to capture private investment from other states is a race-to-the-bottom state economic development strategy that undermines the ability to invest in education.” We need only look at Kansas to see how this strategy works.

EPI research shows “income is higher in states where the workforce is well-educated and thus more productive.” There is, the Institute says, “a clear and strong correlation between the educational attainment of a state’s workforce and median wages in the state.” Those workers then pay more taxes to boost state budgets. The best companies know they need to go where they can get the kind of educated workforce they need, where their current employees will find good communities with high quality schools, and where the infrastructure can support their business model. That’s why states like Massachusetts (ranked #1) see education as an investment, not an expense.

Unfortunately, the AZ Legislature seems hell-bent on pushing the privatization of our community school system and will continue down this path until the voters boot them out of office. We need lawmakers who understand there can be no significant progress for our state over the long haul unless we ensure all our children are given the tools to grow and prosper. Community schools remain the schools of choice for the vast majority of our students and must be our first priority for state resources. Yes, school choice has its place in our overall educational system, but it shouldn’t be first place.

We Are the Ones Failing

The AZ Department of Education released AzMERIT test scores to districts this week and results show 1,400 third-graders did not meet the “Move On When Reading” (MOWR) cut score required by ARS 15-701. The law requires all third graders in Arizona to read proficiently at grade level or be retained, with three exceptions. The exceptions pertain to English Language Learners, students under evaluation for a special education (SPED) referral or severe reading impairment, and those on Individual Education Plans (IEP.) The law also provides for remedial strategies and once a student demonstrates reading proficiency via a district-administered assessment, they can be promoted to the next grade.

Although MOWR was signed into law in 2010 and enacted by the Legislature in 2012 with the appropriation of approx. $40 million annually, it wasn’t until the 2013-14 school year that the retention was implemented. That year, close to 650 third-graders were eligible to be retained, but less than one percent were. During the 2014-15 school year, data from the new AzMERIT was not expected to be available until after the start of the next school year, so no third-graders were held back.

There can be no doubt that the ability to read, the earlier the better, is critical for a student’s success. Studies show that children who cannot read at grade level by the start of fourth grade are four times less likely to graduate on time. Third graders who live in a poor family for at least a year are six and a half times less likely to graduate on time and have much higher risk for dropping out. “While it is an urban myth that prison population projections are based on the number of third graders that cannot read” –  high school dropouts were 63 times more likely to see the inside of prison walls than college graduates.

Social promotion, or “the practice of promoting a child to the next grade level regardless of skill mastery in the belief that it will promote self-esteem”, has numerous problems of its own. Among them are the potential for ill-educated students, providing parents a false sense of confidence, setting the bar low, and creating a false sense of accomplishment. While social promotion can help ensure students don’t drop out, the stark reality is that they’ll likely be no more prepared for a post-secondary education than if they had.

Retention of students though, is also very problematic. According to the National Association of School Psychologists (NASP), as many as 15 percent of U.S. students repeat a grade each year, and 30 to 50 percent of students are retained at least once before ninth grade. Nineteen empirical studies from the 1990s compared retained students with those promoted. The results showed grade retention negatively impacted all areas of achievement, from reading to math and language, and socio-emotional adjustments such as peer relationships, self-esteem, problem behaviors, and attendance.

So, it is critical for students to be able to read by the third grade, social promotion is the wrong solution, and retention should be the very last resort. What then is the answer? As is often the case with complex problems, we pretty much know what we need to do, we just don’t either want to do it, or don’t have the political will to do it. New America, a centrist nonprofit think tank and civic enterprise, says the solution requires “a comprehensive approach to literacy including attention to a wide range of factors, including teacher preparation and professional development; early identification of struggling students and intervention to support their success; comprehensive and shared assessments; language-rich and engaging reading curricula; provision of pre-K and full-day kindergarten; and school-community-family partnerships.”

The school-community-family partnerships are every bit as important as the rest of the approach since we know literacy and language gaps start well before kindergarten.  Research has shown that children in families receiving public assistance hear as many as 30 million fewer words prior to entering kindergarten than their wealthier peers, putting them at an early disadvantage. Unfortunately, only 42 percent of four-year-olds and 15 percent of three-year-olds are served by public pre-K programs, including SPED and the federal Head Start program. Additionally, the quality of these programs varies significantly with most states requiring just a high school diploma for teachers of infants and toddlers.

New America published a report in 2015 called “From Crawling to Walking” which ranked states on birth to third-grade policies supporting strong readers. The report looked at seven policy areas influencing children’s literacy development: educators; standards, assessment and data; equitable funding; pre-K access and quality; full-day kindergarten access and quality; dual language learner supports; and third-grade reading laws. They then ranked states into three categories based on their progress toward achieving 65 policy indicators. Arizona was categorized in the “crawling” level, at 43rd in the nation. Some of the reasons were no requirement for specialized preparation in early childhood education (ECE) for administrators and ECE educators, pre-K programs not required to screen for dual language learners, and unfunded full-day kindergarten. This last item must carry much of the responsibility for Arizona’s 43rd ranking. In 2004, the state passed legislation creating funding for full-day kindergarten to increase availability, but in 2010, the Legislature eliminated the funding. This forced school districts to adapt by charging parents tuition for kindergarten, raising local property taxes, increasing class sizes, or reducing other areas of their budgets.

Unfortunately just like everything else today, it seems that early childhood education has been politicized beyond the ability to effectively solve the problem. The Republican Party’s platform committee recently added language that opposes public prekindergarten. Of the decision, one of the members of the committee said the party opposes pre-K because it “inserts the state in the family relationship in the very early stages of a child’s life.” This goes right to the heart of the Conservative belief that parents are responsible for what ails a child and they alone have responsibility to fix it. Democrats want proper funding and support to get the job done even if the parents don’t do it.

The primary argument against retention is that in most cases it doesn’t prove motivational to the student. There are multiple reasons for this but in the end, the failure to read at grade-level isn’t primarily the student’s fault. Sure they must accept some of the responsibility, but teachers, school administrators, parents, and district and state officials all share a large part of the responsibility.

A kindergarten teacher I know recently said: “It seems that they [the state] are leaving the school districts responsible for the fallout, without offering solutions, support, or resources. It’s like it’s your problem, now deal with it and let us hold you accountable if you don’t.” One of my Facebook friends phrased it another way: They starve the horse, and when he can’t pull the loaded wagon up the hill, they beat him to death and then pin the blame on him.

Ultimately, what makes the failure of the 1,400 students not meeting the cut score on AzMERIT so unacceptable is that we collectively know what to do to help them. No, the solutions aren’t simple, easy or cheap to implement, but let’s please not pretend we don’t know what they are. These kids may have “failed” the test, but we are failing them.

It’s Complicated

To my post on Blog for Arizona yesterday, former AZ Superintendent of Public Instruction, John Huppenthal posted the following comment:

“The 170,000 charter school students save taxpayers over 290 million dollars per year. The Peoria school district is projected to grow substantially over the next decade. With charter schools, they will not grow as much. They have enormous advantages, both financially and organizationally, over charter schools and if they can keep improving, they will actually be able [to] suck these students back into their school system from charter schools. I actually see this effect in the Chandler Unified school system. As Chandler has improved from 38% excellent rating to 75% excellent rating you can see certain charter school[s] dying on the vine. Meanwhile, public schools nationally have dropped from 36% excellent rating to 24%. Wrong direction. Competition and great leadership were both necessary for Chandler to get to where it is. We will see if Peoria is also the racehorse that responds to the challenge.”

As far as Huppenthal’s blog comments go, this is one of the more coherent ones and the statistics he cites made me want to dig in. Let’s look at a few: 

1.  170,000 charter school students – True. There are 170K or so charter school students in AZ – 170,700 at 556 schools during the 20015-16 school year to be exact.

2.  Charters save taxpayers over 290 million dollars per year – Misleading. According to the Joint Legislative Budget Committee in an overview prepared 6/22/2015, charter schools cost the state $1,232 per pupil more in Basic State Aid funding than district schools in FY 2014. Of course, that’s where it really starts to get interesting because district and charter schools each receive funding the other doesn’t. For example, districts can seek overrides and bonds and School Facilities Board funding for construction, emergency deficiency corrections and building renewal (of which there have been zero dollars for over the last three years.) Charter schools on the other hand, get “additional assistance” monies from the state general fund to compensate, and have much more flexibility in spending these monies. Charters can also get AZ Charter School Incentive Program funds to start new locations and charter land and buildings become capital assets of the charter holder regardless of whether taxpayer dollars were used to acquire said land or buildings. New this year, Governor Ducey included $100 million in the 2017 budget for the creation of an Arizona Public School Achievement District (PSAD) that will use taxpayer dollars to reduce bond borrowing costs for charter expansion or new builds. Unlike the funding provided through private investors (such as the Phoenix Industrial Development Authority enables), taxpayers are on the hook for PSAD monies if the charter holder defaults and I suspect (as with any charter bonds) the loan is ultimately repaid with taxpayer dollars.

For the actual numbers, I went to the 2014-15 AZ Superintendent’s Report, which shows that total revenues for districts exceeded those for charters by $1,278 per pupil. Given the students enrolled in each at that time, that amounts to a total amount of almost $206 million less spent on charters, not $290 million. But, only 86.57% of the total revenues for districts came from various in-state sources whereas 91.18% of charter’s revenues did. This means that in strictly “state” dollars, the district schools only cost the state $776 more per pupil for a total “savings” by charters of $125 million last year. Of course, I didn’t yet mention the $800 more per student in “small school funding” charters can get through legal, but creative accounting of their multiple locations. Oh by the way, it is also important to note that one reason district schools get more federal dollars than charters is because they educate significantly more special needs students, which are more expensive to educate and for which, districts almost never receive sufficient funds (from any source) to cover the costs.  (If I got all of this wrong, someone please correct me! I find it hard to believe charters save any substantial money over districts, maybe there’s funding I’m not counting.

Rather than focusing on who spends more though, shouldn’t we really be focusing on who uses the money more effectively? A report written this year by the Grand Canyon Institute, shows charters spend twice the amount ($1,403 vice $628 per pupil in 2014/15) on purely administrative costs than their district counterparts resulting in less money getting into the classroom. In fact, if the seven largest charter holders spent the same on administrative costs as districts, the state would save $54 million per year. BASIS Inc. alone, with 8,730 students, spent 30 times more on general administration than the six largest districts combined (225,000 students.)

3.  They have enormous advantages, both financially and organizationally – False.  If anything, charters have the advantage. From the beginning, Arizona’s charter laws were designed to free charter schools from most regulations and reporting requirements. They aren’t required for example, to follow the same procurement procedures as districts, which allows them to avoid getting competitive bids on major purchases. This lack of accountability/transparency has raised concerns about charter holders “double-dipping” for profit by procuring goods and services with their own companies. In addition, charter teachers aren’t required to be certified, nor are charters required to meet the minimum facilities standards set by the School Facilities Board (SFB) nor the requirement to provide transportation to school for their students. They also don’t have the same requirements for accountability and transparency with no locally elected governing boards and no requirement to be included in the annual AZ Auditor General’s (AG) School District Spending reports. The fact the AG does not compile, analyze spending, or make their review available to the public contributes to the overall lack of accountability we see with Arizona charter schools.

As for the improvement in Chandler “excellent” ratings or the national “excellent” ratings, I looked at the Arizona’s A-F accountability system and AIMS scores, the AzMerit scores, and the NAEP assessment, but was unable to verify the data. With regard to Huppenthal’s assertion that  “competition” was necessary for Chandler to improve, I don’t buy it. After all, Arizona has had “competition” between district schools since 1994 when “open enrollment” was first approved.  And, I find it offensive that he refers to Peoria as a racehorse that needs to “rise to the challenge.” As an “A” district they are one of the top 45 districts and charters in the state. I think they have more than already “risen to the challenge.” Besides, the education of Arizona’s children isn’t some sort of sports competition. It is important work critical to the successes of our communities, our state and our nation. The professional educators in our district schools get that, while some of the state’s charter holders laugh all the way to the bank.