Wednesday, December 14, 2011

School Finance Final Reflection


Week 5, Part 3: Final Reflections on Lessons Learned

I thoroughly enjoyed the challenge the school finance course offered me.  Throughout the entire course, I was challenged in many aspects because this is one of the areas that my master’s program did not prepare me as well as I would have liked.  I know that the scopes of the two are totally different, but 95% of the items in this course were new concepts to me.

Competency 8 Self Assessments:
In doing the pre and post self-assessments in regards to school finance, I learned that I was ok in some areas to start with and lacking quite a bit in others.  As I progressed through the course, I was able to strengthen some areas and make progress in others.  I still have a long way to go in order to master all areas of competency 8 and become well versed in the area of finance.

Lectures, interviews, readings, and resources:
All the lectures, interviews, readings and resources offered valuable information that I had to review and utilize in order to complete my assignments and gain knowledge. From the first lecture about the history of school finance to having to look at the summary of finances for different districts, every week more valuable information was presented in a very user friendly format.  This opened my thinking to items I need to be aware of and seek out as I move forward in my career and begin to secure superintendent positions.  The other huge item I learned was that I need to ensure that I have a top notch CFO working alongside me because having a strong CFO will only help ease my worries in the area of school finance. 

Weekly assignments and activities, including information and insights from interviews
At times, our assignments and activities seemed to just be tedious busy work, but as I reflect back, I am glad we were exposed to the activities and required to do what we needed to do.  Short of being in a classroom learning this directly from the teacher, this provided the next best thing.  It seems that all the activities were practical and gave us real life hands-on experience that we can now turn around and utilize in our current positions or as we begin to apply for superintendent positions.  The interviews were always very insightful because the CFO and superintendent were able to expose me to real life situations and documents that are used in everyday business.  They also shared past experiences that were learning experiences for them.  They offered these examples so that I would not repeat some of those same mistakes.

Any other highlights from the course:
Even though I was not too keen on the idea of having to collaborate with a Wiki group to start with, the concept did grow on me and I am very glad we were required to participate.  I formed a good bond with my cohort group and was able to not only bounce school finance questions to them, but just job questions in general. I was also happy to be exposed to so many different financial resources because now I will not feel like I am ignorant about items when they are talked about in my current position. 
 

Sunday, December 4, 2011

EDLD 5342 Week 3, Part 3 Analyzing contrasts in two school districts


PART 3, Week 3 – Group Analysis of Contrasts of 2 Districts (by Tom Wales, Anthony Watson, Bart Walter, & Jesus Uranga)

Intention
Although the intent of the WADA (Weighted Average Daily Attendance) formula was to create a “more equal” learning field for district’s who may have a much larger diverse group of students that require more funds to teach, such as economically disadvantaged students, the outcome of these allocated funds can, and many times does, still can fall short of that intention of being able to properly educate all students.  The reason is simple.  Poorer districts will receive more funds per students from the state but they will fall way short in funds received for Maintenance & Operations (M&O) because of the lack of funds from low property taxes.  In return, this can leave many districts having to make cuts into programs and staffing.  Specifically, programs that fall directly under the Maintenance M&O.  Some examples of these areas dramatically affected are in academic programs, support services, teacher and support staff, instructional resources, and facility operations just to name a few.  Now let’s explore more specifically how these areas are positively and negatively impacted in District #1 compared to District #2.

The Impact of Facility Operations, Security, & Field Trips
As previously mentioned, allocations for Facility Operations is budgeted through the M&O.  Although District 1 receives more funds for their 93.3% Economically Disadvantaged students than does District 2 with their 20.7%, the students in both districts still have to rely on funds received through local ad valorem (property) tax.  Since District 2 has much higher property values, they receive much more money for M&O and are able to have larger budget for things that relate to Facilities.  This would include the Physical Plant that maintains vehicles and equipment.  In fact, District 1 has only 12 employees in their Physical Plant while District 2 has 16.  The lack of M&O funds would also affect the number of custodians or the number of times they can service campuses each week.  With student safety being the number 1 priority that parents leave educators with, District 1 may also find that their security staff and resources are limited as compared to their counterpart.  Even the taking of student field trips could be reduced because of the lack of M&O funds.  Since students who are economically disadvantaged have a much harder time financially to go visit places recreationally or educationally on their own, school field trips may have been their only time to gain that hands-on learning experience.

The Impact of Salaries on Both Districts
When I take into consideration the compensatory funding, I can see how the poorer district utilized the funding for additional staff; however, the compensatory funding combined with the local funding was not enough to create more teaching positions. Both school districts have employed the same number of teachers. However, when I look at the actual staff that has been hired by the district, I can see the impact of the compensatory education dollars. If it was a matter of hiring teachers with the additional state dollars from compensatory education, the poorer district had the funds to hire more teachers. Evidently, the decision was made to hire more support. As referenced by my example:
The poorer district has decided to hire more professional staff (49.46) as compared to the more affluent district (33.6); this is an obvious attempt to provide more direct support for teachers who may need assistance with the TEKS interpretation, assessment, planning, and monitoring or strategy preparation. Professional salaries are more than teacher salaries and if the poorer district limited itself to the same number of professionals that the more affluent district had hired, then the number of teachers would have increased by 17. It is evident that the poorer district made a choice between more classroom teachers without the assistance of adequate professionals or the quality of instruction that could be provided and a lower teacher to professional ratio.

When considering the number of Educational Assistants, the poorer district hired 37 Educational Assistants as opposed to the more affluent district hiring 56 Educational Assistants. In using the earlier example with regard to hiring professional staff, the poorer district could have increased the number of Educational Aides by at least two for each professional staff hired. However, if the quality of Educational Aides available is in question, then the simple fact of more bodies will not equate to success of students.

Each district has to have School Administrative Staff in order for their schools to function properly. It should be noted that the poorer District has more School Administrative Staff than does the more affluent school district. The needs of the campuses are greater at the poorer school district. It is a fact, “that what gets monitored… gets done”; the poorer district needs more administrative support to monitor teachers. This monitoring can include, but not limited to: proper usage of the TEKS, proper use of best practice strategies and proper assessment of student success or lack thereof.

Impact on Instructional Programs and Services
District 1 and District 2 are prime examples of inequality in the state’s method of funding public schools. Both districts are similar in student enrollment and size. District 1 has a population of 3,903 students, ninety-three percent of which are economically disadvantaged. Almost half of that population is LEP. District 1 is a property poor district with a local DPV of $145,968,635. The total refined ADA is $3,893 and weighted ADA at compressed rate is 5,044.District 2 has a population of 3,890 students, twenty percent are economically disadvantaged. Two percent of the population is LEP. District 2 is a wealthy district with high property values. The local DPV for District 2 is $2,916,187,709. The total refined ADA is $4,032 and weighted ADA at compressed rate is $7,206. District 1 receives more funding for WADA than District 2, but it is quite obvious that District 1 cannot provide the same services and meet all student needs like District 2. The Weighted Average Dailey Attendance is supposed to aid districts that have students with educational needs. The programs include Special Education, Gifted and Talented, Compensatory Education, and C.A.T.E.
The Maintenance and Operations tax rate for both districts is $1.00, but there is a huge gap between the total target revenue. $6,522,606 separates the two districts. There are numerous programs funded by the Maintenance and Operations fund. Each program can be affected by this fund. Some of the programs under M&O are: Health Services, Media Services, Athletics, and CATE. District 1 has 24 percent of the students enrolled in Career and Technical Education, compared to 14 percent of District 2 students. District 1 cannot provide the enough services for the students. District 1 has a budget shortfall compared to District 2. 

Conclusion
In conclusion, the fact does hold true that more money is given to districts that have students who cost more to educate them.   In fact, poorer District 1 receives more money per student for “Instructional Expenditures” ($4,841) than does richer District 2 ($4,651).  However, because a very large portion of a district’s funds are received through local ad valorem (property) taxes, District 1, and all districts similar to District 1, will lag behind in staffing and programs that fall under the M&O which, in turn, has a direct negative impact on each student, teacher, support staff, program, resource, and ultimately education.

Saturday, December 3, 2011

Comment about M&O fund analysis


In the Seguin ISD, approximately 60% of the M&O budget is utilized in the area of instruction.  This is in relationship with the requirement set by Governor Perry that required school districts to spend 60% of their budget on instruction.  This area also encompasses salaries which make up about 80% of that instructional budget.  Seguin ISD does a fabulous job of maximizing their entire budget to provide the resources necessary to provide a quality education to each child.  The school district does such a fabulous job of managing their budget, that they are able to have a positive net activity at the end of the year.  They then turn around and place that money into their fund balance which is very healthy at this time.

EDLD 5342 Analysis of M&O Fund


M&O BUDGET:
In the Seguin ISD, the M&O budget of $53,306,306 is made up of local property taxes, other local sources, state revenues, and federal sources.  Here is breakdown of the local revenue that is utilized by the district.  This area compromises about 49% of the M&O budget. 

Property Taxes @ 1.04
$26,037,000
Services to other districts
$40,000
Interest on investments
$3,500
Rentals
$50,000
Donations
$31,400
Other revenue from local sources
$20,000
Other revenue GED testing
$20,446
Athletic activity
$144,000
Playoff revenue
$8,000
Misc revenue from int sources
$8,000
TOTAL
$26,362,346

Another 49% of the budget is made up from the state revenue the district receives.  The breakdown is as follows:
Tier 1
$21,655,320
Tier 2
$1,207,765
Additional aid for tax reduction
$1,136,725
Support staff allotment
$255,250
TRS on-behalf payments
$2,204,900
TOTAL
$26,459,960

The final 2% of the M&O budget is supplemented by federal revenue the district receives.  This is breakdown of the federal revenue received:
Indirect cost
$75,000
School Health and Related Services (SHARS)
$295,000
Medicaid administrative claiming
$24,000
NJROTC reimbursement
$90,000
TOTAL
$484,000




EXPENDITURES:

Instruction
$30,857,760
Instructional resources/media services
$1,174,818
Curr & Inst Staff development
$249, 169
Instructional leadership
$616,123
School Leadership
$3,082,068
Guidance & Counseling
$2,019,875
Social Work Services
$296,380
Health Services
$528,928
Student Transportation
$2,263,905
Co-curricular activities
$1,635,169
General Administration
$1,514,123
Plant Maintenance
$5,783,096
Security Services
$251,233
Data Processing Services
$634,129
Community Services
$1,670
Other government charges
$375,000
TOTAL
$51,283,446

In the Seguin ISD, approximately 60% of the M&O budget is utilized in the area of instruction.  This is in relationship with the requirement set by Governor Perry that required school districts to spend 60% of their budget on instruction.  This area also encompasses salaries which make up about 80% of that instructional budget.  Seguin ISD does a fabulous job of maximizing their entire budget to provide the resources necessary to provide a quality education to each child.  The school district does such a fabulous job of managing their budget, that they are able to have a positive net activity at the end of the year.  They then turn around and place that money into their fund balance which is very healthy at this time.