I’m going to make very few comments about the Budget on this blog because I don’t really care to repeat what is already being said.  So I’m going to keep it pretty simple.

First, let’s take a VERY BRIEF lesson on how education is funded in Anchorage.  There are several revenue streams.  But we will examine each in a very simplified form.  And please be aware, I’m only going to “ball park” these numbers.

#1. Municipal Property Taxes: The Anchorage School District (ASD) is largely funded by property taxes from Anchorage property owners.  Out of every dollar in property tax a person pays in Anchorage, a large portion goes to ASD for ongoing expenses that come from education.  Additionally, out of that same dollar, a portion goes to pay for capital improvements in ASD (new schools, roof repair, etc) through bonded indebtedness.  Roughly half of every dollar (and it is growing) goes to fund the ASD.  The rest goes to fund the municipality.  While there is a LOT of discussion about whether maintenance should be bonded etc., the fact remains that this is how the system works.  Further, bonded indebtedness is voted on by the people, so whatever those tax increases are, citizens of Anchorage are voting for it.  But that is grist for another mill.  Let’s move on to other funding sources.

#2. Grants: ASD receives a great deal of money in the form of grants.  In fact, ASD has dedicated grant writers on the payroll who do nothing but write grants and help others in the district write them.  A grantor publishes they have money available.  Grant writers apply for the money.  If successful, the District receives the grant money for the specified project.  ALMOST ALWAYS, money obtained in grants are used for VERY SPECIFIC purposes with a time limit.  A grant might be for technology, for example.  The recipient could spend the money on more computers, smart boards, etc., but would not be allowed to divert that money to pay for roof repair.  In fact, it’s illegal to misspend that money.  Often times we see grant money spent on something ridiculous and cry out, SPEND IT ON BOOKS INSTEAD.  But it can’t be done.  It must go to fulfill the grant.  These grants may be state, federal, municipal or even private funds.

#3. Federal Money: A large amount of dollars comes to schools from the Federal Government.  But wait!  That is not a Constitutional right of the federal level!  You are right to think that.  BUT, the Federal Government has infiltrated the education system in a variety of ways.  For example, through the Americans With Disabilities Act, the Federal government requires schools to be ADA compliant in their construction.  This costs additional dollars.  SOME of these mandates are offset by dollars the Federal govenrment allocates to schools.  But not all of them.  There is a GREAT DEAL of controversy over what are called “Unfunded Mandates” where the Federal Government requires schools to comply with some rule, but does not give schools the money to meet those standards.

#4. State Money: One of the largest streams of revenue comes from the State of Alaska.  In fact, many school districts in the interior are almost ENTIRELY funded through state dollars.  The state determines how much money each district should get through a formula called the “Base Allocation.”  In simple terms, the more students there are in a district, the more money that district receives.  But there is a LOT of argument about what the formula should be.  In recent years, local districts have been telling the state they need to redo the formula and increase the allocation per student.  The legislature has tussled with this one for years.  Some of the arguments can be found in newspaper articles like this one:

http://www.alaskadispatch.com/article/20130524/while-some-alaska-school-funding-increases-basic-student-formula-remained-flat

So those are the MAIN sources of revenue for ASD.  There are others, like rental income, donations, etc., but they do not amount to a hill of beans compare to these other four.

So what’s all the shouting about?

Short version goes something like this….

Remember that Obama bail out money?  Well ASD got some of that money.  Much of it was spent on creating positions within the school district.  While the money was coming in, that was great.  But these were not one-time, short-term expenses.  When the money ran out, those people still had jobs.  And now, how do we pay for them?

But that is only part of the issue.  In addition to that, we all know oil revenues are in peril.  Whether you look at declining per-barrel prices, expanding per barrel expenses, or declining production, the reality is, the dollars are not flowing out of the pipeline like they once were.  And the future appears even bleaker.  This means the State has less to spend.

It seems like a simple solution to just cut the positions that were created and get back to a normal budget level.  The problem is, certain laws, contracts and other obligations prohibit some of those jobs going away.  So the onus falls on either other personnel, or non-personnel cost cutting.

While nobody argues that the District couldn’t afford to run a little leaner, ASD argues that the State needs to free up more money for education.  They say it is more expensive to educate kids today, with requirements like the internet, computers, and the additional duties schools have been asked to perform (such as school lunches.)  They want the State to adjust the Base Allocation.  Doing so could make budget cuts unnecessary.

The State argues, times are tough and we all need to do more with less. They do not want to adjust the Base Allocation because they argue it is fiscally irresponsible in an economy where oil contributions are declining.  Even if they could increase the Base Allocation, they argue it only Postpones the Inevitable.  The District needs to cinch its belt and suck it up like everyone else.

But the State and the District have had a LONG TIME history of political brinkmanship when it comes to school funding.  In the past, ASD has threatened massive cuts to programs, staff, etc., as a political maneuver to rile up voters.  This is used to coerce elected officials, and when the dust settles, the State has usually given in.

But this time it is different.  The State does not appear to be playing the same game of “Chicken” that ASD is.  And ASD has never threatened teaching personnel in this way before.  If this is political posturing from either side, it is a pretty crummy thing to do to threaten the livelihoods of Alaskans as your method to achieve your aims.  We used to call that “tyranny.”

So now we have the ASD screaming for an increase in the Base Allocation.  The State is threatening to increase the allocation but give allocation money to private schools (meaning public schools will end up with less anyway.)

http://www.alaskadispatch.com/article/20140203/parnell-education-plan-assaults-public-schools-alaska-native-civil-rights

http://www.adn.com/2014/01/22/3286565/parnell-lays-out-education-vision.html

Parents and Students have joined in with the ASD, at least in the base allocation fight.

But there is one thing I believe is being overlooked.  And that is… why is the District ONLY focusing on staff reductions.  There are a LOT of other places to get money from.  The District has whole departments that are superfluous.  Recently one Administrative appointee said she was going to retire and that she felt there was no need to replace her position.  But it is still on the chart.  The District owns huge amounts of land, much of it empty.  Yet they still pay to maintain it.  We have schools that are running under capacity that could be combined to result in cost savings, but we aren’t looking at that.  I have specific budget cuts that would have NO effect on class size or other teaching impact, that have no reduction in personnel, yet would directly save over $1 million.  But the District isn’t looking at any of them.  And yes, One Million isn’t 25.  But it is a start.  And it wouldn’t be missed.

I have many friends that are principals, so this next thing I’m about to say is a little harsh.  But….

Over the past several years, our education budget has been studied by professional auditors as well as two community budget task forces (implemented by Carol Comeau.)  In EVERY CASE, one of the top suggestions for saving money was to decrease the number of Principals in schools.  That has never been done and is still not even being discussed.  Not even through attrition.  Why isn’t this on the table?

Well… you have the basics of the budget argument.  I think the district is going to have to tighten its waistband.  I think the state is going to have to compromise a little, but I hope not much.  ASD MUST CONTROL ITS SPENDING!!  It is out of control and ridiculous.  But I think the District is irresponsible if it decides that the majority of cuts must come from the rank and file teachers who are the only ones in the district actually educating kids!  There are plenty of other places to make cuts which they aren’t even looking at.  In fact, in a recent meeting, a district official said that this round they would ONLY takes budget cuts from teaching and related staff.  Now why is that?

Don’t expect much more on the budget.  It is really a simple issue and I’ve laid it out for you.  Most of what I will be discussing next is the 7 period day.  I hope this has been helpful.

(2485)