budget basics

School funding will be a key issue this year. Here’s a reminder of how it works in Indiana.

This story has been corrected to reflect what dollars make up the state’s contribution to schools.

The drafting of Indiana’s next state budget is already underway, a centerpiece of this year’s session given that education funding is more than half the state’s budget.

Proposals are in from Gov. Eric Holcomb and state Superintendent Jennifer McCormick — both suggesting a 3 percent, $280 million increase in basic state aid to schools. But House and Senate lawmakers, the key players in the process, have yet to detail their own plans. The House is expected to make its amendment to the budget, House Bill 1001, in the coming weeks.

Ultimately, lawmakers are responsible for creating and tweaking the formula that determines school funding (a complex process you can brush up on with our school funding explainer).

The biggest question is whether lawmakers will stick with Holcomb and McCormick’s conservative funding asks or boost money to education. It’s not yet clear which strategy will win out, especially when the state has already cautioned that it’s working with less revenue than previously expected.

It’s possible we have a scenario like what happened in 2015: Then-Gov. Mike Pence also proposed a 3 percent increase for schools — a $200 million bump. But later, legislative leaders came back with more money for schools, totaling more than $460 million in additional funding when all was said and done.

So how does the state decide how much money schools get?

The money comes primarily from state sales and income tax dollars that are funneled into the state’s general fund. After lawmakers settle on a final amount, it’s run through a formula to divvy it up among schools, based partially on enrollment and partially on whether schools enroll certain groups of students, such as those with special needs or those from low-income families.

Because of an adjustment all districts now receive the same basic state aid amount. Extra money for the various student groups is added through what is called a “complexity index.”

Currently, that amount is based on how many children receive welfare services or are in foster care, rather than the number of children who qualify for the federal free lunch program as it was in prior years. That could see debate this year, as some educators and policymakers have complained that the change has meant schools that need the funding the most have gotten less than before.

For more on the history and inner-workings of Indiana school funding, check out our basics post: The basics of school funding in Indiana: Difficulty defining fairness.

Who Is In Charge

CPS to enforce nine training sessions for local school council members

PHOTO: Elaine Chen
Local school council members at a training session on Tuesday

In a classroom at Bogan High School Tuesday, trainer Jose Ortiz quizzed four local school council members on why they have to hold public meetings before approving their school improvement plan, a key document outlining school priorities and direction. The room fell silent.

“Because,” he answered himself, “the worst thing that the local school council could do is not consult the community.”

Ortiz’s training session illustrated the challenges that Chicago Public Schools faces in ensuring that all members of the powerful councils understand their roles and responsibilities.

The district requires those who help govern its 646 schools each attend around 18 hours of in-person training, or nine online modules. But not everyone complies: Ortiz said that last week, around 10 people attended each module he taught, and on Tuesday, only four people sat through his class. Most council members take the training online, but the effectiveness of those modules is questionable, council members said.

In a district whose school board is appointed by the mayor instead of elected by city residents, the councils, as Ortiz pointed out, serve as important channels enabling residents to drive the direction of their children’s education. Normally consisting of 12 members, including the principal, teachers, parents, and community members, the councils hire and evaluate the principal, approve the budget, and help craft two-year school improvement plans for their schools.

Chicago schools have another problem with the councils: 47 percent of schools have failed to field enough candidates to fill seats, which then allows sitting council members to fill the vacancies. That means less electoral control for residents. It’s unclear if the training requirement deters people from seeking council seats.

Nevertheless, district officials said that this year they will enforce the training requirement and will contact members who fail to finish it.

“We are going to start removing people this year, but it will be after contacting them by email, through phone and then giving them an opportunity before we schedule a hearing, and then we will consider removing them,” said Guillermo Montes de Oca, director of the Office of Local School Council Relations.

As Ortiz continued with his training, he asked if members remember approving their school improvement plan in the past school year. The attendees looked at him with puzzled faces.

“Oh yes, I remember now,” said Andrea Sanchez, a council member at Richard J. Daley Elementary Academy. But, she added, “it’s just overwhelming because you’re looking at numbers and pages, especially when you’re not used to seeing it.” Sanchez has been a council member since December, but she had attended only one out of the nine mandatory training modules before Tuesday, because most of the two-hour sessions were held in various locations throughout the city far from her home.

According to the Illinois School Code, council members must finish all modules within six months of taking office, so newly elected members who take office on July 1 have until Dec. 31 to complete the modules. CPS has never removed a council member for not finishing the training, said Guillermo Montes de Oca. However, that’s changing.

This year, CPS has also been encouraging council members to finish the modules by July 31, he said, because “if you’re going to be seated, discussing the budget and everything, you need to be informed.”

Sanchez said she didn’t know know about the six-month deadline until Tuesday. She wishes the nine modules would be held all at once at her school. “The information in the modules should be given to us right away [upon joining the council],” she said.

Montes de Oca said that the Office of Local School Council Relations encourages council members to take the training online. Especially because the office only offers a few modules per month, to meet the July 31 deadline, council members would have to take most of their training online.

But the attendees Tuesday seemed to prefer the in-person trainings . Denishia Perkins, a council member at Shields Middle School for almost two years, said that she had taken all the training modules online, but they “didn’t do much for me.” The online training consists of clicking through slides of bullet-pointed information and then taking a short quiz at the end of each module.

“It’s so possible to get elected and not know about this stuff,” Perkins said. So she decided to attend the in-person training on Tuesday.

Sanchez said of Ortiz’s class, “It felt one-on-one, and he’s really explaining it to you.”

The trainings are not the only impediment to filling local school council seats.

A representative from the parent group Raise Your Hand told the Sun-Times that people may not want to run for a council position because “people are a little frustrated at the weakening of the local school council.” Currently, 50 percent of principals’ evaluations rely on CPS’ data and metrics, when previously the evaluations relied solely on the council members’ judgment.

Sanchez said that the work of councils are just not advertised enough, and many parents like  her already are involved with jobs or other organizations.

“I don’t think the parents know that we’re that important,” Sanchez said. “I didn’t know either.”

IPS referendum

Seeking property tax hikes, Indianapolis Public Schools considers selling headquarters

PHOTO: Dylan Peers McCoy

As Indianapolis Public Schools leaders prepare to ask voters for more money, they are considering a dramatic move: Selling the district’s downtown headquarters.

The administration is exploring the sale of its building at 120 E. Walnut St., which has housed the district’s central office since 1960, according to Superintendent Lewis Ferebee.

Although architecturally dated, the concrete building has location in its favor. It sits on a 1.7-acre lot, just blocks from the Central Library, the cultural trail, and new development.

A sale could prove lucrative for the cash-strapped Indianapolis Public Schools, which is facing a $45 million budget deficit next school year.

A decision to sell the property could also convince voters, who are being asked to approve property taxes hikes in November, that the district is doing all it can to raise money. Two referendums to generate additional revenue for schools are expected to be on the ballot.

“IPS has been very committed and aggressive to its efforts to right-sizing and being good stewards to taxpayers dollars,” Ferebee said. “Hopefully, that [will] provide much confidence to taxpayers that when they are making investments into IPS, they are strong investments.”

Before going to taxpayers for more money, the district has “exhausted most options for generating revenue,” Ferebee added.

The administration is selling property to shrink the physical footprint of a district where enrollment has declined for decades. The number of students peaked at nearly 109,000 late-1960s. This past academic year, enrollment was 31,000.

During Ferebee’s tenure, officials say Indianapolis Public Schools has shrunk its central office spending. But the district continues to face longstanding criticism over the expense of its administrative staff at a time when school budgets are tight.

Ferebee’s administration has been selling underused buildings since late 2015, including the former Coca-Cola bottling plant on Mass. Ave., and at least three former school campuses. Selling those buildings has both cut maintenance costs and generated revenue. By the end of this year, officials expect to have sold 10 properties and raised nearly $21 million.

But the district is also embroiled in a more complicated real estate deal. After closing Broad Ripple High School, the district wants to sell the property. But state law requires that charter schools get first dibs on the building, and two charter high schools recently floated a joint proposal to purchase the building.

The prospect of selling the central office raises a significant challenge: If the building were sold, the district would either need to make a deal for office space at the site or find a new location for its employees who work there. Ferebee said the district is open to moving these staffers, so long as the new location is centrally located, and therefore accessible to families from all around the district.

It will likely be months before the district decides whether or not to sell the property. The process will begin in late July or early August when the district invites developers to submit proposals for the property, but not a financial bid, according to Abbe Hohmann, a commercial real estate consultant who has been helping the district sell property since 2014.

Once the district sees developers’ ideas, leaders will make a decision about whether or not to sell the building. If it decides to move forward, it would proceed with a more formal process of a request for bids, and could make a decision on a bid in early 2019, Hohmann said.

Hohmann did not provide an estimate of how much the central office building could fetch. But when it comes to other sales, the district has “far exceeded our expectations,” she said. “We’ve had a great response from the development community.”