School-funding plan favors teachers' pay
Sunday, April 9, 2006 By THOMAS J. SHEERAN Associated Press Writer

CLEVELAND - Debate is growing in dozens of states over proposals to require that most public school funding go to teachers and other classroom expenses.

The “65 percent solution” has become an issue in some of the 36 states electing governors this year. Nationally, the proposal has attracted support from Republicans and opposition among Democrats and the education establishment.

In its simplest form in most states, the proposal would mandate that school districts allocate 65 percent of spending to teacher and other classroom expenses. The rest of the money would be divided among all other spending, such as for bus drivers, cafeteria workers and administrators.

The average in-classroom share nationwide now is 61.4 percent. For a big urban district, going from 61 percent to 65 percent could mean an extra $25 million or more for teacher salaries and the like.

The idea makes sense, said Bob Sullivan, Republican candidate for governor in Oklahoma. “It just takes some management, financial management and some personnel management,” he said after signing a petition filed in March to get a 65 percent proposal on the state ballot.

Backers say 65 percent proposals would put the most education money where it’s most needed — in the classroom — while corralling administrative costs.

ONE SIZE FITS ALL?

Opponents say one formula won’t work for all districts and that some nonclassroom employees have crucial roles in learning, such as guidance counselors or psychologists who help youngsters with learning disabilities.

Joanne DeMarco, president of the Cleveland Teachers Union, said the idea might be used to reduce nonteacher school staffs to fit the 35 percent nonclassroom share or subcontract their work with lower-paid workers.

She said nurses and psychologists are crucial in an inner-city district such as Cleveland where the bulk of students come from poor families.

CANDIDATES’ STANDS

In Ohio, Secretary of State Ken Blackwell, a Republican candidate for governor, supports a drive to get the proposal on the ballot. Attorney General Jim Petro, also a Republican, and U.S. Rep. Ted Strickland, a Democratic candidate for governor, oppose it.

Minnesota Gov. Tim Pawlenty, a Republican running for re-election, has upped the ante, suggesting that 70 percent of school funding go to classroom expenses. Opponents called the proposal a gimmick, but little has been said on the issue in the early stages of the campaign.

Joe Nathan, director of the Center for School Change at the University of Minnesota’s Hubert H. Humphrey Institute of Public Affairs, said the coast-to-coast debate makes sense because most governors and state lawmakers are focused on school improvements.

“There is a real market for ideas about improving education,” he said. The “65 percent solution” discussion comes amid a wider debate in some states, including Ohio, over challenges to how public education is financed.

HITTING THE MARK

According to the education service division of the bond ranking agency Standard & Poor’s, 23 percent of the nation’s more than 13,000 school districts spend 65 percent or more of their money on in-classroom expenses.

S&P said in an analysis last fall in states involved in the debate that the 65 percent idea shouldn’t be considered a “silver bullet” solution. “Higher instructional spending allocations are not consistently linked to higher achievement levels,” the analysis said.

Still, S&P said it would be useful to determine what share of spending goes to classroom expenses to see if money is allocated in line with school policies and to determine if the district is getting its money’s worth.

NEW YORK AT TOP

New York, at 68.7 percent, spends the greatest portion of its education money on instruction, according to S&P, and New Mexico spends the smallest share, 55.5 percent.

In Michigan, Republican state Rep. Jack Hoogendyk, a self-described conservative, said the proposal was “sort of a natural Republican-thinking” idea reflecting a desire for less government, lower taxes and individual responsibility.

“Republicans tend to say, ‘We want to make sure education is funded adequately,’ but we also want to make sure it is spent responsibly,” he said.

In Georgia, state Rep. Alisha Thomas Morgan, a Democrat and self-proclaimed progressive, thinks the simplicity of the “65 percent solution” might appeal to the uninformed but doubts it will have traction with voters this year when it gets closer scrutiny closer to the election. She thinks some Republicans have embraced the idea to polish their image on educational issues.

Nathan, at the University of Minnesota, wasn’t ready to cast backers or opponents solely in political terms. “I don’t necessarily see this as something people are using to gain political advantage. There is a legitimate difference of opinion,” he said.

AP J.D. POOLEY

SCHOOL FUNDING In Oregon, a Toledo-area school district, Clay High School guidance counselor Dave Habegger thinks the debate over the “65 percent solution” will evolve over how in-classroom spending is defined. If guidance counselors are excluded from the 65 percent, “Our jobs would be in jeopardy,” said Habegger, a 33-year teaching veteran and teachers’ union leader.

summary box:

What is it? — The “65 percent solution” is a policy proposal to allocate 65 percent of public school funding to classroom expenses such as teacher salaries.

The other 35 percent? It would go to nonclassroom items, including bus drivers, cafeteria workers and administrators.

Current allocation: The average in-classroom share nationwide is 61.4 percent.

65-cent plan renews school funding debate

Many Ohioans don't have faith in how school leaders spend money. When a school district faces a financial crisis, the typical solution is seeking a new levy - many times very large. But taxpayers want school administrators and boards to spread the pain.

Districts that prove they can make the hard choices eventually will get loyalty from voters. Those that don't likely have leaders who will confront a steady stream of complaints about their inability to let high-paid administrators go when pennies must be pinched.

Secretary of State J. Kenneth Blackwell is seizing on this sentiment at a time when he hopes to be the Republican Party's nominee for governor in 2006.

He will push a ballot initiative that requires the state's 612 school districts to spend at least 65 percent of its operating budget on instructional expenditures. He hopes to have the proposal before Ohio voters in November 2006.

Blackwell claims "The 65-Cent Solution," as some now call it, would increase classroom spending by more than $1.2 billion without a tax increase.

The state clearly needs a system of school funding that can be understood by more than education department bureaucrats, school district treasurers and just a few others. The existing system relies heavily on property taxes by creating a mathematical maze established by several laws.

Despite Ohio Supreme Court decisions and frustrated taxpayers, state lawmakers have failed to accomplish fundamental reform of this system for nearly a decade.

Blackwell's idea could shape part of a renewed debate on changing Ohio's method of funding schools.

And many Ohio taxpayers would argue it's not unreasonable to expect a minimum of 65 percent of a school district's revenues to instruct children.

But Ohio ranks 47th nationally, with only 57.4 percent of education money reaching Ohio's classrooms.

Few Northeast Ohio school districts come close to spending 65 percent on "in-the-classroom" expenses, according to information from the Ohio Department of Education. The Ashtabula City School District came closest, spending an average of 62 percent over fiscal years 2002, 2003 and 2004. Painesville City School District was next closest, achieving 62 percent in fiscal year 2004.

These figures were tabulated according to the DOE's definition of instructional expenditures: teachers, teacher aides or paraprofessionals, as well as materials, computers, books and other consumable materials that are used with students in the classroom setting.

Blackwell's definition differs by including the DOE items plus: field trips, athletics, music, arts and varied costs for special needs students.

School administrators counter that Blackwell's idea further decreases the amount of money school leaders actually control. And they ask why transportation, food service and classroom space don't count as instructional expenditures.

Arguments also can be made that those are far more important to "instruction" than athletics. A clear definition is needed. If we can't agree on what constitutes an education, how are we ever going to agree how to pay for it?

But maybe Blackwell's idea gives Ohioans some hope that the stalled school funding debate can finally receive a much needed jump-start.

Blackwell advances '65-cent' education spending proposal
Friday, September 09, 2005
Reginald Fields
Plain Dealer Bureau

Columbus- Ohio public schools would be forced to spend at least 65 percent of their budgets on classroom instruction under a proposal announced Thursday by Secretary of State Ken Blackwell.

Many public-school unions immediately dismissed the plan as an unworkable, cookie-cutter approach.

Currently, the state's 612 districts spend about 57 cents of every education dollar in the classroom, according to the Ohio Department of Education.

Blackwell, already backing a state budget-limiting amendment for next year, said that if the legislature does not impose this "65-cent solution," he will use a citizen petition to get it on the November 2006 ballot.

"Our solution to the education problem in Ohio has been to pump billions more into education, but much of that money has not made it to the classroom," Blackwell said in a release. "Reform is needed."

Blackwell borrowed the idea from First Class Education, a group headed by Overstock.com founder Patrick Byrne.

Launched in February, the initiative has been enacted or is being considered by lawmakers in Louisiana, Kansas, Texas, Arizona, Washington and Colorado.

Blackwell figures the measure would increase instructional spending in Ohio's public classrooms by $1.2 billion without increasing taxes - enough to hire 24,000 additional teachers.

Figures like that have won Blackwell an unlikely ally: a state teachers union.

"I don't know if 65 percent is the right number . . . " said Tom Mooney of the Ohio Federation of Teachers. "But many districts ought to be spending more of their budgets on instruction and less on administrative bureaucracy."

First Class Education and Secretary of State Blackwell
Announce Plans to Push “The 65 Cent Solution” in Ohio

“More Than $1.2 Billion for Ohio Classrooms WITHOUT a Tax Increase!”

COLUMBUS: In an effort to increase Ohio’s classroom spending by more than $1.2 billion without a tax increase, Ohio Secretary of State Ken Blackwell joined First Class Education National Advisory Chair Patrick Byrne, announcing today an effort to enact “The 65 Cent Solution”, requiring every Ohio school district to spend at least 65 cents of each education dollar on “in the classroom” instruction.

Said Secretary Blackwell,
“Three times in the past six years the Ohio Supreme Court has ordered the Legislature to change the education funding formula resulting in higher taxes. People have seen property taxes skyrocket. They are frustrated and angry with how billions more has been spent but the results haven't materialized. Our solution to the education problem in Ohio has been to pump billions more in to education but much of that money has not gotten to the classroom. I am going to put my foot down and say stop funding education the same way. Reform is needed and this is it.”

“Ohio classrooms must be the first priority of education spending, not the last as is too often the case. By requiring school districts to allocate a minimum of 65% of operational budgets to the classroom, we can increase classroom instruction by over $1.2 billion a year without a tax increase. That’s enough to purchase a new computer for every Ohio student or enough to hire 24,000 additional teachers with a starting salary more than $40,000 if the local school districts so choose.”

According to a June 2005 report by the National Center for Educational Statistics, Ohio ranks a dismal 47th nationally, with only 57.4% of education money reaching Ohio’s classrooms. Raising the figure to 65% would pump more than $1.2 billion into Ohio classrooms without a tax increase. Last year, four states – Utah, New York, Tennessee and Maine – held a statewide average of spending more than 65% in the classroom. States above 65% dropped to two states in the 2005 report, as the national classroom instruction percentage dropped to just 61.3% from 61.5% the previous year and 61.7% in the 2003 report. Meanwhile, overall K-12 spending increased more than four times the rate of inflation.

Said Dr. Byrne,
“I look forward to working with Secretary Blackwell in bringing First Class Education and the national movement to enact “The 65 Cent Solution” in Ohio. We could have no better advocate for teachers, taxpayers, parents and students than Ken. He is well-known and respected nationwide as a leader enacting innovative policy changes and we are pleased to have his leadership as the Ohio Chair of First Class Education.”

Dr. Patrick Byrne is the founder and president of Overstock.com, one of America’s most popular internet retailers. A registered Independent, Byrne is a longstanding advocate of education reform and serves as the National Advisory Chairman of First Class Education.

Dubbed “The 65 Cent Solution” by syndicated columnist George Will, support for the First Class Education proposal has grown into a national movement in the six months since its February 2005 unveiling. Louisiana and Kansas have both passed “65 cent legislation” and Texas Governor Rick Perry has signed an Executive Order enacting the 65 Cent Solution. Citizen ballot initiatives are in the works in Arizona, Colorado and Washington. Legislative referrals to the ballot are under consideration in more than an additional half-dozen states.

First Class Education estimates that voters in approximately a dozen states will have the opportunity to vote for the 65 Cent Solution on their November 2006 ballots. As an indication of the 65 Cent Solution’s popularity, polls conducted in 10 states consistently show overwhelming approval, with support ranging from 72% to 92%.

According to a new study by the Independence Institute that compared education spending in all 50 states with NAEP 4th and 8th grade test scores, the percentage of money reaching the classroom was 5 times a greater determinant to increased test scores than the total amount of money spent.

Secretary Blackwell and Dr. Byrne will work together over the next several months to give Ohio voters the opportunity to pass the 65 Cent Solution in November 2006, whether by legislative referral or citizen petition.

Concluded Secretary Blackwell,
“I look forward to working with Ohio teachers and taxpayers, parents and students, legislators and business leaders to move Ohio from 47th in the nation to leading the nation in making classroom instruction the first priority of education. Only if our priorities for education are our classrooms, our teachers and our students will we be able to improve Ohio’s test scores and produce a workforce ready for the challenges of the 21st century global economy. Could anything in Ohio be more important?”

Specifics of First Class Education’s “The 65 Cent Solution”
• Every school district shall achieve a minimum of 65% of their budget being spent on “classroom instruction” using the National Center for Educational Statistics definitions.
• School Districts that currently fall below the 65% goal shall be required to increase that percentage by a minimum of 2% a year until the 65% goal is met.
• School Districts would be required to send their annual proposed budgets to the Governor verifying that the 65% goal or 2% annual improvement is being made.
• School Districts that believe they can neither meet the 65% goal nor 2% annual improvement may petition the Governor for a renewable one-year waiver along with their proposal of what can be achieved toward reaching the 65% goal.
• The Governor shall have 30 days to either deny or grant the one-year waiver or grant a partial one-year waiver short of the 65% goal or 2% annual increase.
• The Legislature will be left with the opportunity to determine what punitive action may be taken if School Districts do not voluntarily comply with the requirements.

Definition of Classroom Instruction by the National Center for Educational Statistics

“In the Classroom”
– Classroom Teachers, Personnel
– General Instruction Supplies
– Instructional Aides
– Activities -- Field Trips, Athletics, Music, Arts
– Special Needs Instruction
– Tuition Paid to Out-of State Districts & Private Institutions for Special Needs Students

“Outside the Classroom”
– Administration
– Plant Operations & Maintenance
– Food Services
– Transportation
– Instructional Staff Support
– Student Support – Nurses, Therapists, Counselors,

Dr. Patrick Byrne:
“ ‘In the Classroom’ education instruction includes most anything that directly impacts the child -- whether teaching a child to read a book, read English as a second language, read Braille, read music or read a football defensive pass pattern.”