Focus on Dollars for Students, Not Districts

The following is a column penned by Derek Redelman, our VP of education and workforce policy, that appeared in several Indiana newspapers. The piece continues to draw attention; see it here in the Muncie Star Press.

It is a myth that suburban and charter schools are favored by the state budget that was just adopted, while Indianapolis Public Schools and other urban districts "took it on the chin,” as the Indianapolis Star article elsewhere on this page phrases it.

In reality, the winners of this state budget are overwhelmingly urban districts like IPS. Sure, some of those districts will face funding cuts; but those cuts are disproportionately small compared to their losses in enrollment. Conversely, growing districts will receive increases, but those increases are disproportionately small compared to their increases in enrollment.

IPS, which is projected to lose nearly 4,000 students over the next two years, will start with $8,580 per student, or $9,429 when federal funds are included. Over the next two years, those amounts rise to $9,014 and $10,254, respectively. (These numbers include all state funding but do not include funds from property taxes).

That’s an increase of five percent in base funding and 8.2 percent when federal funds are included. Cumulatively, that means that continuing students in IPS will receive an increase of more than $13.6 million in baseline funding and more than $26.5 million when federal funds are included.

Contrast that with Hamilton Southeastern, which is projected to gain more than 1,600 students. The district starts with only $5,762 per student and just $5,784, including federal funds. Over the next two years, those funding levels actually fall to $5,701 and $5,772, respectively.

That’s a decline of 1.1 percent in base funding and 0.2 percent when federal funds are included. Cumulatively, Hamilton Southeastern students will lose more than $1 million in baseline funding or just under $300,000 including federal funds.

By the logic of urban school leaders, these enrollment changes are irrelevant. Based solely on changes to district-level funding, they suggest that urban districts will "suffer" while suburban districts and charter schools will be "the winners." Continue reading