Candidates Briefing 2010 DeGrow

8/9/2019 Candidates Briefing 2010 DeGrow

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Colorado K-12 School Fundingand Cost-Saving Reforms

Independence Institute

Candidates Briefing Presentation

August 3, 2010


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Introduction Background

School Finance in Colorado

Just the Facts

Reforms Amendment 23

Tuition Tax Credits

Educator Compensation Online Innovation

Labor Reforms


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School Finance in Colorado School Finance Act (1994)

Core state and local K-12 funding

Total program funding varies by:

District size (J-Curve)

Cost-of-living (Aspen vs. Kiowa)

Personnel costs (Adds Historical Info)

At-risk student population (Higher)

Online student population (Lower) PPR: $6,358 (Branson) to $14,749 (Silverton)

$5.441 Billion (2010-11)


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School Finance in Colorado School Finance Act (Cont.)

State vs. Local Share State fills in formula amounts

State share: 56.5% (2001) 63.8% (2009)

Districts: 1.1% (W. Grnd) - 96.7% (Edison)

Formula protects declining enrollmentdistricts: up to 5-yr avg. of actual #

One earmark for Total Program 2000-01 to 2009-10: SFA per-pupil

spending grew 15 percent in real dollars


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School Finance in Colorado Other Major Funding Sources

Mill Levy Overrides (Local): $591 Million

Categorical Funds (State): $230 Million

Special Ed; Gifted / Talented; L.E.P.; RuralTransportation; Small Attendance Ctrs

BEST Capital Construction: $78 Million

CDE Admin (State/Federal): $48 Million

School for Deaf & Libraries: $20 Million

Miscellaneous State Program Funding Other Federal Funds / Grant Funds

School Fees / Investment Earnings, etc.


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Just the Facts TotalSpending Per Pupil

In two decades, CO total per-pupil

spending has grown 31% in real dollars(compare: 45% growth in national avg.)

Colorado ranks 32nd (2007-08): $11,133(National Avg. = $12,121)

CO regionally outspends: Utah, Idaho, Oklahoma, Arizona, Nevada,

Texas, New Mexico, Montana, Kansas

Only Nebraska and Wyoming spend more


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Per-Pupil Spending, 1988-89 to 2007-08,

Colorado vs. National Avg (2008 Dollars)

$6,000$7,000

$8,000

$9,000

$10,000$11,000

$12,000

$13,000

1988

-89

1990

-91

1992

-93

1994

-95

1996

-97

1998

-99

2000

-01

2002

-03

2004

-05

2006

-07

National Avg

Colorado


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Just the Facts Current spending per pupil

Excludes spending on capital

construction and debt financing Depends whom you ask (2007-08):

US Department of Educ.: $9,152 (35th)

US Census Bureau: $9,079 (36th)

National Educ. Association: $9,335 (29th

) In CO and nationally, per-pupil spending

doubled between 1970 and 2000


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Just the Facts 49th in Education Funding??

Amount of dollars spent as share of

personal income (Census, NEA) Assumes the more earnings in a state,

more must be spent on K-12 Ed

CO: About 3.5 percent

Nation: About 4 percent

Three-fourths of studies show nocorrelation between spending & results

Applies to per pupil & per capita income


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Moving On Background

School Finance in Colorado

Just the Facts

Reforms Amendment 23

Tuition Tax Credits

Educator Compensation Online Innovation

Labor Reforms


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Amendment 23 (2000) Approved by voters (52 percent)

Created State Education Fund: offsets

TABOR refunds or other spending February: SEF = $188 million & falling

General Fund maintenance of effort

Mandated spending increases Inflation +1% through 2010-11

Inflation thereafter


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Ending Amendment 23 Repeal of Amendment 23 would

restore flexibility, fiscal responsibility

Spending could be controlled withoutharming total classroom support: Classroom: CO 57.9% vs. US 60.8%

Other support services: CO 6.8% (3rd

highest dollars per pupil) vs. US 3.2% Business support, planning, research &

development, data

More than $100 million savings


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Tuition Tax Credits Offsetting tax benefits for non-public

student education expenses

States with tuition tax credits: Arizona (3), Florida, Georgia, Indiana(starts 2010-11), Iowa, Louisiana(deduction), Pennsylvania, Rhode Island

More than 100,000 students served

States w/other education tax credits: Illinois, Minnesota


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Tuition Tax Credits Program Essentials (cost-saving

analytical experiment)

Cover non-public school tuition Individual and corporate giving eligible

(families or scholarship organizations)

Universal, not means-tested

Phased-in: Public school switchers onlyeligible in first three years


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Tuition Tax Credits Variable -- Value of tax credit benefit

as share of state per-pupil spending(Predicted student migration; 3-yr /10-yr state impact, in millions): 25% (44,961; $26.0 / $296.3)

50% (55,205; $21.3 / $176.0)

75% (71,131; $13.7 / -$15.5)

100% (99,339; $0.0 / -$360.7)

Figures do not include savings atlocal school district level


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Tax Credit MigrationState Savings:

3 Yrs

SAVINGS: 10 YEARS

State District Total

10% 40,406 $28,036,079 $348,661,331 $510,509,839 $859,171,170

20% 43,337 $26,735,511 $315,048,938 $547,443,714 $862,492,652

25% 44,961 $26,007,160 $296,288,166 $567,894,481 $864,182,647

33% 47,816 $24,714,232 $263,080,632 $603,840,764 $866,921,396

40% 50,615 $23,433,102 $230,280,716 $639,064,487 $869,345,203

50% 55,205 $21,306,738 $176,030,887 $696,798,073 $872,828,960

60% 60,668 $18,741,195 $110,828,620 $765,462,672 $876,291,292

67% 65,153 $16,611,402 $56,864,427 $821,795,158 $878,659,585

75% 71,131 $13,746,657 -$15,543,274 $896,791,069 $881,247,795

80% 75,436 $11,667,871 -$67,987,703 $950,748,405 $882,760,702

90% 85,767 $6,640,358 -$194,496,835 $1,079,992,057 $885,495,222

100% 99,339 $0 -$360,799,952 $1,248,914,424 $888,114,472

Tuition Tax Credits


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Educator Compensation Masters Bumps automatic pay

increases for teacher master degrees

One of most consistent findings ineducation research is ZERO impact

Colorado spends 1.8% ($138 million)of all current education expenditures

End automatic pay increases vs.introduce performance pay?


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Online Innovation Colorado is one of national leaders in

K-12 online education Comprehensive look at ways innovation

and entrepreneurship can supplantbureaucratic regulation to serve more

Online students funded at 91.7% ofstudent total program average Small cost savings could be found by

serving more students in online / hybridprograms


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Labor Reforms Union Release Time

Audit / demand accountability

End taxpayer subsidies Open Bargaining Negotiations

Public oversight of decisions forallocating public resources

Paycheck Protection / Agency Fees

Collecting dues for private groups /respecting educators individual rights


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Education Policy Center Education.i2i.org (NEW!!!)

www.SchoolChoiceforKids.org

www.EdIsWatching.org

www.IndependentTeachers.org


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Education Policy Center Pam Benigno, Director ([email protected])

Ben DeGrow, Policy Analyst ([email protected])

Marya DeGrow, Research Associate

Raaki Garcia-Ulam, Website Outreach Coordinator

Office Phone: 303-279-6536

Candidates Briefing 2010 DeGrow

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