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Ohio Media Ignore Financial Link Between Failing Charter School Operators And New Charter-Friendly Education Plan

Via Media Matters

Ohio media reporting on Gov. John Kasich's (R) new education funding plan neglected to inform readers that the plan funnels millions of dollars in increased spending to private schools and charter schools whose operators have donated millions in campaign contributions to Kasich and Republicans in the state legislature.
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Ohio's largest print news outlets -- including the Columbus Dispatch, Cincinnati Enquirer, Cleveland Plain Dealer, Dayton Daily News, Toledo Blade, and the Beacon Journal -- not only ignored the financial connections between Kasich's charter-friendly plan and his campaign donors, they also failed to note that the charter school industry is receiving this boon despite consistently performing well below Ohio's traditional public school districts. Recently released report cards for the 2011-12 school year indicated that "while 92 percent of the state's public school districts scored effective or higher...only 26 percent of charter schools did."

The amount of tax payer money being transfered to Ohio's terrible charters schools under the Governors new funding plan is quite staggering. all told it is likely to be close to $1 billion a year.

Budget announcement analysis

Yesterday, is a carefully orchestrated rollout, the Governor revealed elements of his school funding plan. He could have titled it "Under-investment is our new normal in school funding".

His plan involves a new mechanism for allocating state dollars to public schools, but before we get to that, let's take a look at the actual funding levels he is proposing.

The 2011 school GRF budget allocated $6.3 billion for fiscal year 2012, and $6.4 billion for fiscal year 2013. This produced the largest school funding cuts in state history which, according to an Innovation Ohio study, has led to voters having to consider $1.1 billion in new property and income taxes for schools. Voters passed just over 40% of that amount, approving school levies equal to $487 million in new taxes. With that as a backdrop, supporters of public schools were hoping for significant restoration of that funding and alleviation of local property tax burdens. So what did the Governor unveil?

Dick Ross and Barbara Mattei-Smith, two of Kasich's main education advisers, said the long-promised plan calls for $6.2 billion in basic state aid for the 2013-14 school year, [...] and $6.4 billion for 2014-15

At best that appears to be a status-quo under-investment of Ohio's public schools. However, during the presentation the Governor and his aides all expressed the following

If approved by the Ohio General Assembly, school districts would not experience any drop in funding in the next two years (July 1 to June 2015). However, Ross said, that level of funding would not be sustainable and would have to eventually decline.

The Governor reiterated that funding guarantees would be eliminated after this budget and districts should expect more cuts. To a system that has already suffered $1.8 billion in cuts that ought to be chilling. To avoid some of the rollout day chills, the Governor did not have district level funding numbers available - they should be available later next week.

Along with this basic GRF funding the Governor did announce a number of new programs and program expansions

Additional items, including $300 million for grants to encourage innovation in districts, bump the total cost of the plan to $7.4 billion for 2013-14 and $7.7 billion for 2014-15.

Much of this money is one-time, requires grant applications to be approved, or is ear-marked for specific purposes, such as

  • Funding of $190 million for special needs students, plus $45 per pupil in every school to fund gifted students;
  • Additional support of $207 million for 3- and 4-year-olds with disabilities;
  • New funding of $185 million for districts with the least amount of access to public preschool programs.

While this is welcomed, there is also a significant expansion of money going to charter schools and vouchers.

Vouchers

Included in the proposal are several provisions that dramatically increase the availability for school vouchers in the state, including a statewide income-based scholarship for families earning less than 200% of federal poverty (roughly $46,000 for a family of four) and a literacy-based scholarship for students who consistently fail the state's third grade reading test. A full 1.8 million students would qualify for the new plan's income requirements

The new vouchers would give about $4,250 a year toward private-school tuition to any kindergartener in the first year and first graders in the second year. The extra cost would be about $8.5 million in the first year, and $17 million the second year.

Charter Expansion

While new charter school accountability mechanisms were missing from the Governors proposals, extra money for them was not. For-profit charter schools will see an increase in state funding with those schools receiving the same dollar amount per student as their public counterparts, along with $100 more per student to help pay for facilities.

The $100 per student facilities payment will amount to around $13 million dollars. The "Money follows the child" provision will cause significant hardship to poorer districts that can least afford to lose state aid to low performing charter schools, which brings us to the new formula.

The Funding Mechanism

The Governor has moved away from trying to determine the cost of a quality education and funding it at that level to instead considering a communities ability to pay and having the state attempt to equalize that across school districts. The Plain Dealer describes is like this

Mattei-Smith said this plan tries to reduce the difference through a complicated formula to provide aid to districts with lower property values in two stages. The first takes the 20 mills of property taxes that most every district in Ohio charges at a minimum. Though Mattei-Smith said only 24 districts in Ohio have $250,000 of property value per student -- an amount that raises $5,000 per student with the 20 mills -- the plan will raise every district to that amount.

The state will cover the gap between the $5,000 figure and what 20 mills raises per student in that district. Because charter schools can't use property taxes, the state will cover the entire $5,000 as their base funding.

The second phase aims to equalize residents' ability to pay property taxes in addition to the 20 mills. Districts typically have about 35 mills billed to residents, but Kasich's staff said many residents don't have the income to afford those added taxes.

The plan ranks districts in wealth based half on property vales and half on household income, then separates the bottom 80 percent from the top 20 percent. The top 20 percent will receive no additional state aid.

The plan aims to boost the remaining 80 percent of districts, with those at the top getting state aid equivalent to charging another 5 mills in taxes. The lowest ranked districts will receive state aid up to the equivalent of as much as 15 mills.

This extra money will "follow the student" -- to use a phrase that Kasich and his staff used in the weeks leading up to Thursday's announcement -- as they go to charter schools. That means that a charter school, whether it be in a building or online, will receive more money for students from a poor district like Cleveland than it would from a richer one like Beachwood or Westlake.

The non-partisan, highly respected KnowledgeWorks released this statement, which captures the essence well.

Ohio Governor John Kasich’s proposal for a new school funding formula for primary and secondary public education includes many good ideas to help propel Ohio’s public education system forward but fails to ensure all students have adequate resources to succeed, Ohio Education Matters said today.

While more details are needed to fully assess the plan, which was released today in a Columbus briefing, the initial reaction is that the school funding plan does nothing to assure that students have enough resources to meet higher standards and expectations, said Andrew Benson, Executive Director of Ohio Education Matters, a division of KnowledgeWorks.

There appears to be many devils hiding in the not too clear details, but what is clear is that under funding Ohio's students education is now the new normal.

Here's the Presentation the Governor gave

2013 Ohio Gov. School Funding Plan Presentation by

A pre-budget baseline

In advance of the Governor releasing his budget, Policy Matters Ohio has produced a report looking at the current budget situation and making recommendations in numerous policy areas, including education.

Education
  • Restore cuts that have caused local school districts to cut staff and course offerings, increase class sizes, and implement pay-to-play for extracurricular activities;
  • Institute a fair, adequate and equitable funding formula for schools;
  • Apply high standards to charter schools, keeping ineffective schools from opening and closing those that fail their students. Make sure charters become part of a stronger K-12 education system in Ohio, not a means to dismantle it;
  • Fund higher education sufficiently to make tuition at Ohio’s colleges and universities more similar to that in other states;
  • Establish a long-term strategy to restore need-based aid.

Their entire education section of the report is worth a read, but we wanted to pull out 2 sections from that.

Funding drops over decade

Figure 3 shows that, adjusted for inflation, annual state funding for primary and secondary education in Ohio has dropped more than a billion dollars over a 10-year period, to less than $8.7 billion in FY13 from $9.7 billion in FY04, in 2012 dollars. As noted, Figure 3 does not include federal stimulus funding.

Those are serious declines in education investment that should be kept in mind.

Privatization directs money away from districts

Even as K-12 education – districts, charters, and voucher programs – has gotten less funding through the state budget, the state continued to expand privatization, directing increasing amounts of money away from school districts toward privately operated charters and voucher schools. Some increasing funding is due to rising enrollment in charters, but as Table 5 shows, year-to-year increases in the deduction of funds from school districts have either outstripped or stayed roughly on track with enrollment increases. Over the 10-year period beginning in FY 2003, charter school enrollment has increased 262 percent, while funding for charters has increased more than 500 percent over the same period.

Policy makers have increased voucher spending as well. HB 153, the budget bill signed in 2011, created a new voucher worth up to $20,000 that families of special needs children can use at state-approved private providers beginning this school year.[23] The budget bill also increased the voucher amount for the Cleveland program, to a maximum of $5,000 for high school and $4,250 for grades K-8, from $3,450 for all grades.[24] HB 153 expanded the number of vouchers available through the statewide EdChoice program to 60,000, although FY 2013 enrollment remains much lower at about 15,968.[25] Ohio’s autism voucher program, which provides up to $20,000 a year to use with private providers, began in FY 2004 and has been used by more than 2,000 families.[26]

Together, the amount of money directed to charter schools and voucher programs in Ohio is approaching $1 billion a year deducted from school district funds. In FY 2011, for example, charter schools saw about $720 million and voucher programs got a total of more than $100 million.[27] The Ohio Department of Education (ODE) reports that in FY 2012, $774 million was allocated to charter schools and at least $86 million for vouchers.[28] This reflects a growth of about 5 percent in privatized school funding in a year that overall funding plunged. ODE figures show at least $950 million will be spent on charters and vouchers in Ohio in FY 2013.[29]

The Governor is also expected to expand privatization efforts further.

ODE publishes propaganda

prop·a·gan·da
/ˌpräpəˈgandə/
Noun
1. Information, esp. of a biased or misleading nature, used to promote or publicize a particular political cause or point of view.
2. The dissemination of such information as a political strategy.

That aptly describes the latest document published by the Ohio Department of Education, titled "Myths vs. Facts about the Ohio Teacher Evaluation System". The document lists 10 alleged myths about the teacher evaluation system being created. We thought we'd take a closer look at some of these alleged "myths".

1. Myth: The state is telling us what to do in local evaluations.

ODE, under a bulleted list discussing local board flexibility in creating evaluations, state "The percentages within the given range for student growth measures for the teachers in that district;" This is no longer true for teacher who have Value-add scores. These teachers (over 30% of Ohio's teaching corps) will have 50% of their evaluation based on student test scores. On this, local boards have zero flexibility, it's a state mandate. We judge aspects of this myth to actually be true

2. Myth: This is just a way to fire teachers.

ODE goes to great length to discuss how these evaluations will be great for teachers in identifying areas of improvement (though no money has been allocated for professional development). Utterly lacking is any discussion of the provision within HB153 prohibits giving preference based on seniority in determining the order of layoffs or in rehiring teachers when positions become available again, except when choosing between teachers with comparable evaluations. It is no secret that corporate education reformers such as Michelle Rhee desperately want to use evaluations for the basis of firing what they purportedly measure to be "ineffective" teachers. After all, this is exactly the process used in Washington DC where she came from. It's far too soon to call this a myth, it's more like a corporate educators goal.

3. Myth: One test in the spring will determine my fate.

It's nice that ODE stresses the importance of using multiple measures, but once again they fail to acknowledge that HB555 removed those multiple measures for 30% of Ohio's teachers. For those teachers their fate will be determined by tests. This myth is therefore true.

5. Myth: The state has not done enough work on this system – there are too many unanswered questions.

How can it be a myth when even this documents fails to state that "we're ready". SLO's have yet to be developed, Common Core is almost upon us but no one knows what the tests will be, the legislature keeps changing the rules of the game and no where near enough evaluator training has taken place to evaluate all of Ohio's teachers. Ohio isn't ready for this and that's a fact, not a myth.

6. Myth: “Value-Added” is a mysterious formula and is too volatile to be trusted.

This is perhaps one of the most egregious points of all. Study after study after study has demonstrated that Value add is volatile, unreliable and inappropriate for measuring teacher effectiveness. Their explanation conflates the use of value-add as a diagnostic tool and its use in evaluating teachers. Those are 2 very different use cases indeed.

As for it being mysterious, the formula used in Ohio is secret and proprietary - it doesn't get more mysterious than that! This claim by ODE is simply untrue and ridiculous, they ought to be embarrassed for publishing it. This myth is totally true and real and backed up by all the available scientific evidence.

7. Myth: The current process for evaluating teachers is fine just as it is.

Their explanation: "Last year, 99.7 percent of teachers around the country earned a “satisfactory” evaluation, yet many students didn’t make a year’s worth of progress in reading and are not reading at grade level." Right out of the corporate education reformers message book. Blame the teacher. Still think this isn't going to end up being about firing teachers? This myth is a straw-man, no one argues the current system is ideal, but the proposed OTES is dangerously constructed.

8. Myth: Most principals (or other evaluators) don’t have time to do this type of evaluation, so many will just report that teachers are proficient.

ODE states "Fact: Most principals are true professionals who want the teachers in their buildings to do well." But wait a minute, in Myth #7 these very same principals were handing out "satisfactory" grades like candy to 99.7% of teachers. Which is it? Are they professionals who can fairly evaluate teachers, or aren't they? We wrote about the massive administrative task faced by school administrators almost 2 years ago. Nothing has happened to alleviate those burdens, other than a $2 billion budget cut. This myth is 100% true.

9. Myth: This new evaluation system is like building the plane while we’re flying it.

ODE states: "Fact: Just as the Wright brothers built a plane, tried it by flying it, landed it, and then refined the plane they built, the new evaluation system was built, tried and revised. "

We'll just point out that 110 years have passed since the Wright Brothers first flew and the world has developed better design and project management tools since then.

10. Myth: It will be easy to implement the new teacher evaluation system.

Has anyone, anywhere said this? Or did the ODE brainstorming session run out of bad ideas at 9, and this is all they could come up with? Talk about ending with a straw-man, which frankly, given the rest of the document is probably the most appropriate ending.

ODE ought to withdraw this piece of propaganda from public view.

Working together for effective reform in America's public schools

Organized Parents, Organized Teachers - Working together for effective reform in America's public schools. Current national and local education policies often pit teachers and parents against each other, trapping them in a cycle of blame and mistrust. But in one Minneapolis community, parents and teachers decided to work together to make their schools better – with great results. This is their story.

Organized Parents, Organized Teachers - Working together for effective reform in America's public schools from Annenberg Institute on Vimeo.

For more, visit www.realparentpower.com