$$ and schools

Memphis philanthropists, school leaders talk funding strategies at D.C. forum

PHOTO: Marta W. Aldrich
Philanthropic and education leaders from 16 cities, including Memphis, attended a forum Oct. 5 in the nation's capital hosted by the DC Public Education Fund.

Memphis school and philanthropic leaders were in the nation’s capital Thursday to hear how a local philanthropic group has raised $120 million for school initiatives in Washington, D.C.

The Memphis contingent joined representatives from 16 other cities at a one-day forum hosted by the DC Public Education Fund on its 10th anniversary. The goal was to learn about how private donors have contributed to a decade of growth in District of Columbia Public Schools, its organizers said.

Memphis has an active philanthropic community seeking to improve the quality of public education through Shelby County Schools, the state-run Achievement School District, and the city’s charter schools. Millions of dollars in education grants from national organizations like the Bill & Melinda Gates Foundation and Walton Family Foundation also have flowed into the city. This month, the last of a $90 million Gates grant that launched in 2009 for teacher and leader development will dry up for Shelby County Schools. (The Gates and Walton foundations also support Chalkbeat.)


Here’s how $90 million from Bill Gates spurred sweeping changes in Memphis


In recent years, Memphis philanthropists have sought to become more coordinated in their investments through the Memphis Education Fund, formerly known as Teacher Town. It’s considered a younger peer to the DC Public Education Fund, and both act as an intermediaries between their cities’ school systems and philanthropies. The older D.C. organization works closely with D.C. Public Schools to identify needs and fill them in collaboration with foundations.

The forum’s speakers included D.C. Public Schools Chancellor Antwan Wilson and two of his predecessors, Michelle Rhee and Kaya Henderson, who brought sweeping reforms to the district from 2007 to 2016.

The forum was meant to “reflect on a decade of transformation and to celebrate DCPS’ progress as the fastest-improving school district in the nation,” said Jessica Rauch, executive director and president of the DC fund. “Other cities are coming to learn from our partnership model and, we hope, will be inspired to implement some parts of our approach in their home cities.”

That means more than just writing checks. The agenda included strategies for supporting innovations in curriculum, celebrating excellent educators, empowering males of color, and partnering with families to accelerate student learning.

The gathering of philanthropic and school leaders took place at the newly modernized Paul Laurence Dunbar High School, the nation’s first public high school for black students.

School Finance

Indianapolis Public Schools leaders could scale back their appeal for tax increases

PHOTO: Meghan Mangrum

With little public support and mounting criticism, Indianapolis’ largest school district may scale back its nearly $1 billion request for increased funding from taxpayers.

Indianapolis Public Schools Board President Michael O’Connor told Chalkbeat on Wednesday that the board would likely consider a proposal next week that would reduce the potential tax increase.

All the board members present voted in favor of asking voters for up to $936 million over eight years at a meeting this past December. But there is a consensus among board members that the original proposal would raise taxes too much, O’Connor said.

“The school system needs more revenue,” O’Connor said. But “we think that’s high.”

Superintendent Lewis Ferebee’s administration is working on coming up with a revised proposal, district chief of staff Ahmed Young confirmed. But officials have not yet finalized how much the amount might be trimmed or what services would be reduced to bring down the price tag.

The revelation comes on the heels of stinging public criticism leveled against the district for asking for such a large tax increase. On Wednesday, Indiana State Board of Education member and Indianapolis resident Gordon Hendry slammed IPS’ plan to raise taxes during a state board meeting.

“This may be the most nonchalant billion-dollar tax increase ever approved by anyone,” said Hendry, a Democrat.

The original plan, which was approved by the state for inclusion on the May ballot less than a week ago, includes a measure that would raise up to $92 million per year for operating expenses such as teacher salaries and one that would pay for up to $200 million in improvements to school buildings.

If voters signed off on the operating referendum, their property taxes would rise by as much as $0.59 on each $100 of assessed value, while the capital referendum would raise $0.1384 per $100 of assessed valuation.

The board will not alter the referendum that provides money for building improvements, O’Connor said. But it will consider changing how much it seeks for operating expenses, the part responsible for the bulk of the tax increase.

In the months since the original proposal was unveiled in November, few advocates or community organizations have spoken out in support of the referendums. Instead, groups such as the Indianapolis Chamber of Commerce stayed quiet as they discussed the plan internally.

It’s important to the city that the school district is successful, said Mark Fisher, chief policy officer for the Chamber. There also is general agreement that the district needs more funding, he said. But the group is waiting to hear more from the administration about how the money will be spent.

“It’s a large amount,” Fisher said. “Is this the right amount?”

Tony Mason from the Indianapolis Urban League raised similar questions.

“IPS definitely requires more support to serve the vast needs of its diverse student population,” Mason wrote in a statement. But the district must make the case in detail for the substantial amount it is requesting.

“IPS needs to be mindful of the already existing and unique tax burdens of those living in the IPS district,” he added.

The district has said the referendums are essential because of declining federal, state, and local revenue. According to the district, the operating referendum would pay for special education services, transportation, and regular maintenance. But the bulk of the money, 72 percent, would help pay regular raises to teachers. The referendum to pay for improvements to school buildings would fund updates such as new lighting and door security.

If it passed, the original operating referendum would increase the district’s annual revenue by nearly $3,000 per student. By comparison, a referendum passed in Washington Township in 2016 raised annual revenue by less than $600 per student.

When the initial plan was announced in December, Ferebee told Chalkbeat that political considerations were not used to determine the amount of the referendums.

“We didn’t arrive at this number based on what we thought would be politically appropriate and soothing, but what we actually need to continue to thrive as an organization,” Ferebee said at the time.

But it appears the political challenge of asking voters to dramatically raise their own taxes is more salient for the board.

Board members have privately heard concerns from constituents about the size of the referendums, O’Connor said. He said the district also needs to present more detail to taxpayers about exactly how the money would be spent.

Because $92 million per year is the estimated maximum amount the district could raise if the measure passes, it was always a ceiling, said Young. After the board voted to pursue the initial proposal, the district has continued to do “due diligence.”

“It’s an evolutionary process,” he added.

On Tuesday, school board member Kelly Bentley told Chalkbeat that reducing the amount the district is seeking could help increase the chance that voters approve the referendums and reduce the burden on taxpayers.

“I believe strongly that we are asking no more than what we need,” Bentley said. “But I would rather be successful than not successful in the referenda.”

Correction: February 15, 2018: This story has been corrected to attribute the statement from the Indianapolis Urban League to Tony Mason.

School Finance

IPS bid for more money is ‘the most nonchalant billion-dollar tax increase ever,’ state official says

PHOTO: Chalkbeat staff
Indiana State Board of Education member Gordon Hendry raised concerns about referendums IPS plans to ask voters to approve in May.

An Indiana education official is calling out Indianapolis Public Schools for how the district has handled a recent proposal to collect almost $1 billion from taxpayers over the next eight years.

Gordon Hendry, a member of the Indiana State Board of Education and an Indianapolis resident, said the district’s plan to ask voters this May to approve two referendums to increase funding has not been transparent. The proposed tax increase is also way too high, he said.

“This may be the most nonchalant billion-dollar tax increase ever approved by anyone,” Hendry, a Democrat, said Wednesday at the board’s February meeting.

So far, few education advocates or community organizations have been vocal in their support for the referendums, which total $936 million. Voters have raised concerns about the amount their taxes would increase and how the money would be spent.

The district has said one referendum would raise up to $92 million per year for eight years to pay for teacher raises, special education services, transportation and regular maintenance. The other asks voters to support $200 million in improvements to school buildings, primarily safety updates such as new lighting and door security.

Hendry said the district has not provided voters with enough information about what the new money would be used for, instead offering “general statements.” He said he thinks the district should already be able to cover those costs, such as transportation and facilities, with its existing state and local funding.

“Our entire state budget for education is $7 billion each year,” he said.

IPS, like other districts, receives state, local, and federal dollars. Hendry pointed out that under Indiana’s school funding formula, urban districts already receive more money per-student than other districts, although that is supposed to support students who might be more costly to educate than those in suburban or rural districts. Urban schools typically have more students living in poverty, learning English or with disabilities.

The referendums would come with considerable tax increases for those living within IPS boundaries, Hendry said, and would disproportionately affect low-income families.

Hendry didn’t limit his criticisms to IPS. He urged Indiana lawmakers to freeze all school funding referendums and set up a committee this summer to study how to improve the efficiency of district spending, as well as how to address “long-standing” problems with ensuring teachers are adequately paid.

Going forward, Hendry said referendums need more oversight. He proposed that the state board or mayors and city councils should approve them — a measure he said would increase accountability.

More than a third of school districts have asked for tax increases since state lawmakers capped how much local governments could collect in property taxes in 2008. About 60 percent of them have been successful, including six in Marion County.