Future of Schools

New tensions begin to emerge over state's NCLB response

PHOTO: Scott Elliott
Gov. Mike Pence focused on education issues in his state of the state speech in January as well as throughout the legislative session.

Gov. Mike Pence and state Superintendent Glenda Ritz put aside their differences over who should take the lead in making education policy last month for the public fight over new state academic standards. But their tensions seem poised to reemerge as the state scrambles to respond to a warning from the federal government.

The U.S. Department of Education sent Ritz a letter Thursday giving 60 days for her to explain how Indiana will shore up areas where it says the state has fallen short of what it promised to do in 2012 in return for release from some rules of the No Federal No Child Left Behind law.

That waiver, issued in 2012, was dependent in large part on Indiana’s promise to adopt standards that would lead to graduates who are prepared for college, and federal officials are concerned about Indiana’s abandonment of the Common Core standards and tests. It wants assurances the state will keep its promises.

Just last month, Ritz and Pence stood firmly together to support the state’s new standards, which were endorsed both by the education department, which she oversees, and by the Center for Education and Career Innovation, which reports to Pence and is viewed by some as a rival to Ritz’s department. The board voted 10-1 to adopt them last week.

But the other areas that the U.S. Department of Education identified for concern could reignite longstanding divisions between the two officials. Last year, each tried to claim a larger role in setting the state’s education policy, and each echoed that approach today.

In a letter to Ritz today, Pence said he was “disappointed and concerned” by federal education department’s findings that Indiana was not on track to comply with its agreement in nine specific areas and urged her to work with the Indiana State Board of Education, which he appoints, to make corrections.

One of his appointees to that board, Brad Oliver, said the state board and Ritz’s office were “long overdue” to have conversations about her handling of Indiana NCLB waiver, and called for the board to play a more active role going forward.

“The board and the department need to be in consultation about what our response will be,” he said.

But in her statement Friday, Ritz only mentioned the state board when talking about a subcommittee and used the singular tense to describe her planned response, which she suggested was complicated by the Indiana legislature when it voided Common Core standards and set a July 1 deadline for new standards to be set.

“My department is prepared to demonstrate full compliance with our flexibility waiver and submit amendments that are necessary due to legislative action that has been taken since the 2013 legislative session,” she said.

“Moving forward,” Ritz said, “we will respond to (the U.S. Department of Education) within the next two months with amendments that capture steps we have taken to ensure full compliance with our flexibility waiver. I look forward to working with (U.S.) Secretary (of Education Arne) Duncan to improve education for all Indiana students.”

Less than two hours after Ritz issued her statement, Oliver followed with a call for the board to hold a special meeting to address the waiver problem.

“Pursuant to the meeting procedures of the Indiana State Board of Education, I have called upon my colleagues to join me in requesting a special meeting of the state board of education to inquire as the reasons and circumstances that have resulted in so many areas of our current federal waiver being identified as not meeting expectations,” he said.

Oliver laid blame on the education department for the state’s waiver troubles.

“The findings in the (U.S. Department of Education) monitoring report suggest serious problems with the ability of the Indiana Department of Education to monitor compliance and provide technical assistance to Indiana schools in critical areas such as teacher and principal evaluation, assisting Indiana’s lowest performing schools, and supporting schools in raising academic achievement,” he said.

Signed in 2002, NCLB asked all states to establish accountability systems that assured every student would score proficient on standardized tests by 2014. Since President Obama’s election, though, he has pushed for congress to make revisions to relax rules, which could label many schools as failing, and sanctions that could limit how they use federal money.

He also allowed states to apply for waivers, permitting them to substitute state-level accountability systems in place of NCLB requirements in return for adopting policies the administration preferred.

Indiana’s waiver allowed the state’s A to F system to be used to judge schools, replacing expectations under NCLB that some have termed unrealistic. In return, Indiana promised to adopt “college and career ready” academic standards, institute a teacher evaluation system and make other changes.

At the time, the state was moving quickly to implement Common Core, standards which 45 states ultimately adopted and that Indiana’s state board adopted in 2010. Federal officials signed off on that, accepting Common Core standards as “college and career ready.” They also approved of Indiana’s plan to use a Common Core-linked exam being developed by a consortium of states as its new state test, to institute the teacher evaluation system lawmakers approved here in 2011 and to monitor improvement efforts at low-scoring schools.

Since the waiver agreement was made, however, Indiana has seen some dramatic education policy changes.

Ritz defeated Tony Bennett, her predecessor and champion of Common Core, teacher evaluation and school accountability, in the 2012 election and took control of the state’s compliance efforts. An order from Pence withdrew Indiana from the consortium, in favor of instead ranking its state tests on its own, and lawmakers voted first to pause implementation of Common Core standards and then to void them altogether.

When federal officials conducted an annual evaluation of Indiana’s compliance with the waiver in August of 2013, Ritz was in the midst of a complete overhaul of the state’s system of monitoring troubled schools.

Ritz noted that in her statement.

“We have spoken with (the U.S. Department of Education) regularly about the work this division is doing, and they have indicated they are pleased with our progress to this date,” she said.

Oliver and Pence aren’t convinced. They want answers and a role for the state board to assure the waiver continues.

“Because several of the key findings in the monitoring report involve state decisions where the state board of education and the department of education both hold statutory roles and responsibilities, including standards, assessment, teacher evaluation and interventions in under performing schools,” Pence wrote to Ritz, “I am writing to urge the state board of education to assist the Indiana Department of Education in developing a comprehensive remediation plan that addresses the concerns laid out in the monitoring report.”

Pence and Ritz have been at odds over who controls the state’s education policy since last summer, when Pence created the Center for Education and Career Innovation.

The center, using money that had previously been managed by the education department under the state superintendent, hired separate staff for the state board. Pence said the center was designed to coordinate education policy across multiple agencies, including the education department, the state board, the Education Roundtable and the Commission for Higher Education.

But Ritz said it was a power grab.

Tensions between Ritz and the board boiled over in October, when Ritz filed an unsuccessful lawsuit claiming the board held an illegal meeting, and in November, when Ritz abruptly adjourned a state board meeting over the objections of the other members.

Since January, however, hostility seemed to abate. Ritz and the board agreed on some new rules for how board meeting should be managed. Pence came out against Common Core standards in his State of the State speech and endorsed the Ritz-led process of setting new standards.

Just last month, Ritz and Pence stood firmly together in the face of laughs and jeers from Common Core opponents who fought against the new standards that were endorsed both by the education department and by CECI. The board voted 10-1 to adopt them last week.

Ritz declined comment late today about Oliver’s proposal for a special board meeting.

 

Face-to-face

In ‘speed dating’ exercise, Detroiters grill school board candidates about third-grade reading, charter schools

PHOTO: Erin Einhorn
Corletta Vaughn, a candidate for Detroit school board, speaks to Detroiters at a forum Thursday evening as Nita Redmond (center) looks on. Vaughn says the district should be open to collaboration with charter schools and suburban districts.

On its face, the public forum Thursday night was about candidates for Detroit school board. In fact, the night belonged to the citizens.

Early in the evening, a tableful of Detroiters — most of them graduates of Detroit public schools, all of them concerned about the future of Michigan’s largest school district — set about deciding what they wanted to ask the candidates during a series of Q&A sessions that CitizenDetroit, which co-sponsored the forum with Chalkbeat, called “speed-dating.”

Shirley Corley, a first-grade reading teacher who retired from the city’s main district, honed in on the state’s “read-or-flunk” law, which could force schools in Detroit to hold back many of their third graders next year if they can’t pass a state reading exam.

“I heard that one on the TV, and I couldn’t believe my ears,” she said.

As a gong sounded, she hurried to shape her outrage into a question: “What are your plans about holding back third-grade readers, and why aren’t they reading better?”

Then Terrell George, one of the candidates for two openings on the school board, sat down across the table. She asked her question.

All across a packed union hall in Detroit’s historic Corktown neighborhood, similar scenes were playing out. Candidates rotated between tables, where they sat face-to-face with roughly 10 Detroit residents armed with prepared questions and many lifetimes-worth of combined experience with the city’s main school district. Every five minutes, someone hit a gong, and candidates got another chance to lay out their vision for the troubled district and impress the voters who will decide their future at the polls in November.

It is Detroit’s first school board election since the board regained control of Michigan’s largest district, which was run for nearly a decade by state-appointed emergency managers. And it marks a crucial milestone in the district turnaround effort led by Superintendent Nikolai Vitti, whose reforms have so far enjoyed the board’s support.

(Six of the nine candidates attended the event. Deborah Lemmons and M. Murray [the full name listed on the ballot] didn’t respond to an invitation, according to CitizenDetroit. Britney Sharp said she had a scheduling conflict and was unable to attend.)

From Natalya Henderson, a 2016 graduate of Cass Technical High School, to Reverend David Murray (his legal name), a retired social worker and minister who previously served a long, sometimes controversial stint on the school board, a broad field of candidates are vying to help steer a district through a historic turnaround effort. The winners will help decide what to do about the $500 million cost for urgent school renovations and test scores that are persistently among the worst in the nation.

(Click here to watch the candidates introduce themselves in two-minute videos, and here for short bios.)

candidate statements
PHOTO: Koby Levin
Deborah Hunter-Harvill, the lone incumbent running for school board, makes an opening statement. Candidates made one-minute opening statements, then rotated through a roomful of 130 people answering questions about their plans for the district. From left: Corletta Vaughn, Shannon Smith, Natalya Henderson, Hunter-Harvill.

The low scores are the reason the state’s third-grade reading law, which calls for students reading below grade level to be held back, will disproportionately affect Detroit. But at Table 1, Corley gleaned some hope from George’s answer to her question about the law. He said more attention should be paid to early literacy instruction: “We must start from the beginning in preschool and kindergarten.”

Corley shook her finger in approval: “That’s right.”

On the other side of the table, Viola Goolsby wanted to know how George would respond if the state attempted to close the district’s lowest-performing schools.

“I would be opposed to any school shutting down any school in any district…” George began.

Then the gong sounded. “That was quick,” George said, standing up.

The table had a five-minute break — with roughly 130 people in the room, there were more tables than the six candidates who attended — and then another candidate, Corletta Vaughn, slid into the seat reserved for candidates.

Lewis EL, a realtor who works in Detroit, read a question from the list provided by Chalkbeat and CitizenDetroit, the non-profit that hosted the event: “What are the pros and cons for the district in collaborating with charters and suburban school districts?”

Vaughn’s voice fell: “I firmly believe that the district alone is without resources. We just don’t have it. So I would like to see a collaboration.” She said other districts could help Detroit train its teachers: “I think we have to do a better job in terms of exposing our teachers to better development.”

“Are they not coming with that knowledge already?” Lula Gardfrey asked.

“But I think that we can support them more,” Vaughn replied. “Our students have mental health issues. They have economic issues. Just what the teacher learned in school isn’t going to be enough when that child arrives at 8 a.m. in the morning.”

detroiters
PHOTO: Koby Levin
Shirley Corley and Lula Gardfrey work on the questions they planned to put to candidates for Detroit school board.

When the gong sounded again, Nita Redmond felt torn. She believed Vaughn had good intentions but was suspicious of any collaboration with charter schools.

The rise of charter schools, which enroll about one-third of the city’s 100,000 students, “should have never happened,” she said. “It seems like it has lowered the regular schools.” When another candidate, Shannon Smith, joined the table, Corley got to hear a different take on her question about the third-grade reading law.

“We need to communicate with parents,” Smith said. “There are a lot of parents that aren’t aware. Second, we need to work together with the administrators and the teachers on the curriculum, and figure out which curriculum would best support the students in reading.”

On the opposite side of the hall, another table asked Deborah Hunter-Harvill, the only incumbent in the race, about her plans for improving instruction in the district.

“Because nationally we’re at the bottom in reading and math, I start from the bottom,” she said. One of our policies is that parents attend parent training free to understand what their kids are being taught. All of our parents don’t come, but if you just get 40 in one classroom in one day, they go home and tell other parents.”

Theresa White had a seat right next to Hunter-Harvill, and she liked what she saw. “That has been a culprit, the lack of participation by parents,” she said.

In the next seat over, Rainelle Burton, who attended high school in Detroit and has lived in the city for decades, came to a different conclusion.

“I’m not hearing anything that says, ‘this is inventive and creative,’” she said.

The up-close-and-personal format didn’t make things easy for the candidates.

“It was definitely not comfortable,” Vaughn said, adding that she wished she’d had access to the pre-written questions beforehand.

reverend david murray
PHOTO: Erin Einhorn
Reverend David Murray, who served on the school board member for 16 years during a period when the district was largely controlled by emergency managers, said those managers were responsible for the district’s decline.

But for voters in the room, the format made things easy. In a straw poll after the event, virtually everyone in attendance said they planned to vote.

“We were able to talk to them one-on-one, it’s not just looking on TV,” Nita Redmond said, adding that she came away with a good idea of who would get her vote (she declined to say who). “We were able to talk to them and evaluate ourselves if this would be the best person to lead my district.”

Surveying the room as the forum wound down, Michelle Broughton was of two minds. She carries with her four generations of experience with the district — she is a computer instructor at Renaissance High School, her father graduated from Chatsey High School, a Detroit Public School, in 1961, her children attended the district, and her grandson is in the eighth grade at McKinsey Elementary — and she said she’d heard a lot of what she called “pie-in-the-sky” ideas at the forum.

No one had offered a solution for the roughly 90 classrooms in the district that were without a teacher on the first day of school — a problem that had affected her family in the past.

“If my child goes to school every day and comes home and says, ‘Grandma, I don’t have a math teacher,’ that child is losing weeks,” she said.

But she said the event gave her a feel for the candidates — and reminded her how many Detroiters share her dream of a thriving school district.

“I’m here because I have hope,” she said. “I see a brighter future, and I hope that I pick somebody who will help.”

Future of Schools

Here’s how new federal rules could impact Indiana’s $14M private school tax credit scholarship program

PHOTO: Dylan Peers McCoy
Students at the Oaks Academy in Indianapolis, a private school, play during music practice. The Oaks accepts tax credit scholarships.

Some school choice advocates are uneasy that new federal tax rules could be detrimental to Indiana’s $14 million tax credit scholarship program.

In August, the U.S. Department of the Treasury released rules clarifying new tax law that limited how much state and local taxes an individuals could deduct from their federal taxes. Some fear the changes might discourage donors from contributing to charities like the state’s tax credit scholarship program, in which individuals and businesses can give money to fund students’ private school tuition in exchange for a tax credit from the state.

“Our primary concern is to make sure that the families who are relying on these scholarships, that they can continue to do so,” said Leslie Hiner, vice president of legal affairs for EdChoice, a national school choice advocacy organization based in Indianapolis. “There are a lot of unknowns.”

Jerry Stayton, superintendent of Elkhart Christian School, submitted a public comment about the regulations saying the scholarships are vital to helping private schools stay afloat and give opportunities to low-income families. The tax incentives have “encouraged giving to schools on a scale never before seen.”

“For the federal government to impose a tax on a state tax credit represents a strange and dangerous precedent,” Stayton wrote. “While the federal government is supreme in the United States, its strength is derived from strong, growing, supportive states with great local economies and excellent education.”

There’s optimism, though, that the regulations’ impact could be far more limited in Indiana than in other states,  given how established its scholarship program is, how low income taxes are here, and how many donors are individuals making smaller contributions.

“So far, Indiana is in a better position, I’d say, than some of the high-tax states,” Hiner said. “Nonetheless, that uncertainty is the thing … I have a lot of faith that people in Indiana, and I’m hoping, that any impact in Indiana because of its long history of charitable giving will not be great.”

Below, we break down how this news could impact Indiana’s school choice programs, as well as how the program works and got its start.

First, what are tax credit scholarships?

Indiana’s tax credit scholarship program, which lawmakers passed in 2009, lets taxpayers donate money to nonprofit, state-approved “scholarship granting organizations” in exchange for a 50 percent credit on their state taxes.

Those donations are then distributed to the nonprofits and given out to income-eligible Hoosier families as private school tuition scholarships. To participate, a family of four can’t make more than $92,870 per year.

In 2018-19, the program could distribute as much as $14 million in tax credits, though the amount that can be donated has no cap. Indiana’s tax credit cap has steadily increased up from $2.5 million since 2009.

While the use of vouchers far outstrips the tax credit scholarships, the program is still sizable. It serves 348 private schools across the state. In 2017, the program awarded 9,349 scholarships totaling more than $16 million.

The National Conference of State Legislatures reports that as of 2017, 17 states had tax credit scholarship programs. The largest one in the country is in Florida, where many corporations participate and the program collects and doles out hundreds of millions of dollars each year.

Is the program controversial?

Yes, though it gets far less attention than Indiana’s voucher program, where families use state tax dollars to pay for private school tuition. It also predates vouchers, which weren’t allowed in the state until 2011.

Tax credit scholarship supporters say the donations benefit students in need who otherwise could attend the school of their choice. They also argue the programs can results in savings for states, as the cost for the tax credits is lower than the cost to educate students in public schools.

Critics of the program say it’s just another version of state-subsidized private school, not unlike vouchers. They also point out it is unclear whether these programs allow states to save money — partially because data on where students go to school and how they transfer between public and private schools can be hard to track.

In Indiana, students do not need to have attended a public school before receiving a tax credit scholarship, and the scholarships can pay up to the full tuition amount at their desired school.

What’s the IRS rule change that is causing the concerns?

It comes in response to a part of the 2017 federal tax bill that limited how much state and local taxes someone could deduct from their federal taxes — up to $10,000. Hiner said federal officials proposed the change to allow the government to get more revenue. Giving fewer opportunities for deductions means the government collects more in tax dollars.

In order to get around the $10,000 cap, some high-tax states, such as New York, California, and New Jersey, took advantage of tax credit programs. As a result, the IRS proposed new rules that prohibit the tax credit workaround, and that’s what has school choice supporters up in arms.

“The IRS had a good reason for taking action, but unfortunately in taking action against those bad actors, they swept in thousands of nonprofits across the country,” Hiner said.

How will the rule change affect Indiana?

Advocates hope is that Indiana won’t take as big a hit as other states with higher taxes.

In a press release, the treasury department said most taxpayers will not be affected by the change, with about 1 percent of taxpayers seeing “an effect on tax benefits for donations to school choice tax credit programs.”

It’s really not clear yet if that will come to pass, Hiner said, because taxes won’t be filed until next year. No one can really say now how donors might change their behavior.

The state-approved nonprofit “scholarship granting organizations” that manage private tuition scholarship funds are already fielding questions from donors. Indiana has seven such organizations, six of which are currently granting scholarships.

“The one thing we’re stressing with everyone is to always contact your accountant, financial advisor, or tax preparer to walk through what the impacts could be,” said Betsy Wiley, executive director of the Institute for Quality Education, one of the state’s scholarship granting organizations.

But in Indiana, according to an analysis from CNBC, taxpayers on average don’t claim deductions over $10,000. While the rule change could impact corporations or very large individual donors, most Hoosiers don’t fall in those categories. The vast majority of donors are individuals, and 43 percent of those donations are for less than $1,000, Wiley said.

Wiley hopes the federal government decides to pause implementing these new rules until after taxes for 2018 are filed. This would give donors and nonprofits more time to understand what the effect might be so they can adjust at the state level.

Federal officials are collecting feedback through November, when there will be another hearing on the rules.