Monday, September 06, 2010

Fun With Numbers ...


There has been some discussion lately about the concept of Charter School & School Choice tuitions.  This is not a new phenomenon -- the only change is that this is the first year Sandwich will actually be receiving funding from the state for educating students from other districts who would prefer to attend Sandwich Schools.  

It's important to note that we are not talking about Special Education tuitions which are accounted for in the School Budget, or private school tuitions which have nothing to do with this discussion.  School Choice is strictly for tuition to/from other public school districts and Charter tuition is strictly to state-licensed Charter Schools.

Sandwich has always been charged by the state for those students who choose to attend another District's Public Schools (Bourne, Mashpee, Shrewsbury, etc.), or a Charter School (Sturgis, Lighthouse, etc.).   That number has been rising steadily each year as more students have chosen to pursue the wider opportunities that may be available in other Districts.  This number increased dramatically in FY '10 (up approx $98K)  but appears to be coming down in FY '11 (down approx $21K).  In addition, in FY '11 Sandwich will be receiving credit for $85K in incoming School Choice tuition -- so the net gain for the coming year is approx. $106K,


Which really means nothing because the overall decrease in State aid for education to Sandwich (regardless of which pocket it goes into) is still approximately $288,000.  We saved some outgoing tuitions, we made more on incoming tuitions, yet the state cut Chapter 70 even more!

The issue seems to be one of pockets.

The State deducts School Choice and Charter School tuition payments for outgoing Sandwich students from the funds it pays the Town for local aid.  BUT it sends the money for INCOMING School Choice students directly to the School District.  Hardly consistent -- but we are talking about the Commonwealth!

State law requires that Incoming School Choice funds go directly to the School District.  An argument could certainly be made that the School Choice Incoming & Outgoing should be used to offset each other.  However, there would be little incentive on the school side to market the District to outside students or to find additional spaces for incoming students.  If any increase in incoming aid would only decrease the amount of the local contribution, why invest the time?

Another argument has been made that perhaps the school budget should be reduced by the amount of the funds the state deducts from local aid for outgoing tuitions.  If that is being contemplated, the actual number should be the sum of outgoing Charter and Choice Tuitions AFTER deducting the Charter School Reimbursement figure (the State charges for Charter School tuitions BUT then refunds a portion to the sending District.)

I think that argument is just another distraction from dealing with the real problem -- no commercial/industrial/second home tax base (and no realistic hope of getting one) and operating costs/labor contracts that are growing faster than revenue.  There is little liklihood of raising revenue in the near future -- the only alternative will be to cut costs --- which means reduce services.

Again -- people need to deal with the real problem which is be prioritizing municipal/school services and determining what can be lived without.

But, if we're fixing inconsistencies, here's three more that need some work:

1)   The School Budget funds a large amount of SPED-related medical costs which are reimbursed by Medicare.  The School Department even pays an outside agency to track and process these reimbursements. BUT the funds go back to the Town's General Fund.  Why not offset those against the SPED budget?

2)    The Town budget carries all employee benefits costs for both school and municipal employees.  Why not transfer school-related costs back to the school budget?  That way any increase in costs or savings on either side (school or municipal) is reflected on the appropriate budget.

3)    The School Department budget pays to maintain fields and facilities for non-school use.  Why not transfer the costs of non-school usage to a Recreation Department who would then have the option of recovering the operating costs by charging private organizations -- or a municipal recreation budget?


References:


8 comments:

Bob Guerin said...

Nice summary of the school choice expense and revenue issues Bob. Your summary compared against Bud’s comments and Fin Com reactions, and the Enterprises’ crack investigating of the facts, reminds me of the great country tune - “Half Wits and Half Truths is one Helluva Way to Run a Town.”

I cant imagine that the current School Committee is reading your blog but I hope they are. In a matter of days you and I have laid out serious issues and options that the School Committee should be addressing. Today we can add the School Choice red herring to the pile (thanks Bud).

We (the 2 Big Meanies) have also called for improved fiscal planning, better public advocacy and leadership. Wouldn’t it be great to see the School Committees’ focus and energy turn to addressing these issues head on?

Why the “Town” Manager has never behaved as if the Schools were a part of the Town and therefore a responsibility of his and instead chooses to work against them is beyond me. Why the Selectmen allow the Town Manager to behave this way is a shame. The mess that is Fin Com and the lack of detail know how on that Board never ceases to amaze. And, the total dysfunction that is the School Committee well...........that’s what the voters wanted (I guess) at least now they're polite and smile and not sarcastic. Me? I still haven’t changed.

Bob Simmons said...

Who are YOU calling meanie!

I'm with you ... except I think FinCom's reaction to the Charter/Choice tuitions is a bigger issue than the Town Manager pointing out the increase. He's just doing his job by pointing out a rising cost over which he has no control.

This isn't anything new and shouldn't have been a surprise to FinCom -- the only NEW part of the discussion is that two years ago the School Committee passed a motion to join the School Choice program which INCREASED REVENUE to the Town -- and helped offset the rising outgoing Choice/Charter tuitions. (You're Welcome!)

I think the bigger issue is WHY Choice/Charter tuition costs had been growing -- people were voting with their feet. They felt their hometown did not provide a high enough quality education and, instead, they chose to drive to another Town's schools.

I think the REAL story is that last year the Charter/Choice tuitions decreased instead of increased. More people began to regain confidence in their hometown schools. But --- who cares about good news!

I think we have a huge budgetary dysfunction in Town. The Turf Wars are killing us. We have very able and experienced professional staff on both the Town & School sides who would undoubtedly work well together if left to their own devices. Unfortunately, they both work for elected boards who are all too frequently populated by amateurs whose only professional qualification is name recognition. (Of course, the only thing worse than democracy is NO democracy!)

Hmmm ... I feel another post coming on.

Anonymous said...

The biggest problem is the dopes that have been appointed to FinCom. They don't seem to have any understanding of what they are doing. they also dontg seem to come to meetings very often --- if there's supposed to be 9 members, its unusual to see 6 actually show up.

They also dont look at anything until the last minute. The town manager seems to spoon feed them and tghey all nod politely. they seem to fight about what they dont understand.

They always find a way to blame thge schools for something.

What are there qualifications? Why were they appointed.

Bob Guerin said...

While I agree with your posts, I think it fair to highlight that the Town Manager is, or should be, well aware of what you describe above - especially the offsets to the expenses and the longer term trends. He either "forgets" to mention those offsets when he speaks or its done on purpose; I am not sure. Either way its an issue worth discussing and fixing because his presentation style too often comes across as school bashing.

Anonymous said...

You think it is bad now, the way they always blame the schools, you should have been at meetings before they were televised. The town moderator has complete control over the appointments. It is one of her jobs to appoint the Fin Com members, according to our charter. Four years ago when the charter was being review by a committee, they looked at this but did not reccomend a change. I've heard some public comments suggesting that at least the Moderator should interview potential Fin Com candidates in public. That seems like a good idea to me. Personally I think they need to be elected and share the same level of accountability the other two major boards have.

Before they were televised (they were the last major board to be televised because members fought it)I think they were the most powerful board in town. Now I see them struggle with understanding their role. Most members seem unprepared when they meet. I don't think many if any get training in municipal finance though it is offered through the state and the Mass. Municipal Association. Hearts in the right place no doubt, but..........

The Finance Committee seemed like a rubber stamp to the BOS for years or vice versa. They were members who were on for years and years who have clearly influenced the economic realities the town now faces. Having no accountability has pertty much given them free range especially when Fin Com and the BOS were so closely connected.

Anonymous said...

I believe our lightweight FinCom team was brought to you courtesy of our Madam Moderator. The quality of appointees over the past few years have been questionable at best. More than a few seem over their heads!

The Truth Maker said...

The Truth Maker would like to clarify some of the above banter in regards to the Finance Committee. The present process by town bylaw allows the Town moderator to choose who ever she feels can perform at the SELECTED position. This process has not really fared well for the town over the years, but it is legal and binding. Every moderator has a different understanding of how and what they are looking for when it comes to town finances. In many cases it is purely along party lines and very political.In others,it is to show a balanced board,where some are selected to keep the peace.
The town at present does have severel members whom are very qualified to engage in our towns finacial problems. As one member of the board of Selectman states, it does not take a rocket sciencetist to see who should be on the committee and who should not. Many of the meeting are never fully attended by all 9 members and that is a problematic ongoing challenge for the Town Moderator to find engaged and committed volunteers to work on this committee. I would like to see a more open and visable process conducted when these folks get to be selected for this committee. I do know of severel well qualified citizens of Sandwich who have applied for an open position and were denied and all we get is some one who fills a seat and then does not bother to get engaged in the process.

The Finance committee can not do it alone, it takes a colaberation between every one to make our problems less stressful here in Sandwich and we need to stop pitting one side against another for the welfare of the whole town. This is easy to say , but very difficult to carry out, especially when you have a UNION Controlled School Committee, that has only one goal in mind and in my opinion is purely selfish and in fact is devisive by itself. So to say that any resolve will ever be forthcomming is highly unlikely.

Perhaps we should elect every member of the Finance Committee and start by Electing the Chairman position First.

Anonymous said...

To change Fin Com to elected office would take a Charter change. There are two ways the Charter can be changed. One would be through a Charter Review Committee (we are required to have that ever five years and it will be two years before that comes up.) The review committee makes it's reccomendations to the BOS. They accept them or reject them. The accepted ones go on a Town Meeting warrant for Town Meeting vote. The other way is through a citizen petition article asking for a charter change specifically. That can happen at any time. A citizen petition article has to be included on a Town Meeting warrant. At any time citizens can petition town government to change aspects of the charter because we have a Town Meeting form of government. Town Meeting is the legislative branch of our town government.

Some of you many not be aware that our charter is only a few years old. It was I believe voted in 2002 after a committee worked to put it together. The 2007 review process was frought with high political overtones and drama. I for one think there are aspects of the charter that should be looked at.