Leadership Service Advocacy

Dave Davare, Ph.D.

Director of Research Services

© 2012 Pennsylvania School Boards Association2

The South Central Assembly

Summit

June 13, 2012

Saving Cities and Schools

© 2012 Pennsylvania School Boards Association3

Saving our Schools: Beyond the Great

Recession

Today is about addressing the future of the region…

© 2012 Pennsylvania School Boards Association4

Saving our Schools: Beyond the Great

Recession

6 issues face public education in the future

© 2012 Pennsylvania School Boards Association5

Saving our Schools: Beyond the Great

Recession

1. State funding

2. Property and other local taxes

3. Merger/Consolidation/Sharing

4. Distressed school districts

5. Alternatives: Vouchers/Charters

6. Mandates

© 2012 Pennsylvania School Boards Association6

Saving our Schools: Beyond the Great

Recession

• State-local funding:• Inextricably linked

© 2012 Pennsylvania School Boards Association7

State and local fundingSource 2009-10 2009-10

Local – Non RE Tax 12.3%55.9%

Local – RE Tax 43.6%

State 35.5%

Federal/ARRA 7.3%

Other misc. revenue 1.3%

© 2012 Pennsylvania School Boards Association8

70-1

71-2

72-3

73-4

74-5

75-6

76-7

77-8

78-9

79-0

80-1

81-2

82-3

83-4

84-5

85-6

86-7

87-8

88-9

89-0

90-1

91-2

92-3

93-4

94-5

95-6

96-7

97-8

98-9

99-0

00-1

01-2

02-3

03-4

04-5

05-6

06-7

07-8

08-9

09-1

0

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

Shares of AIEState Share Local Share

Year

Pe

rce

nt

© 2012 Pennsylvania School Boards Association9

District spending

Expenditure 2009-10 State-wide

Salary & benefits 62.8%

Supplies/Materials 25.5%

Other 0.4%

Debt service 11.3%

© 2012 Pennsylvania School Boards Association10

Salaries and benefitsExpenditure 2009-10 2009-10

Instruction 44.0%

Non Inst. Admin * 2.1%17.8%

Non Inst. All Other 15.7%

Other 1.1%

Total 62.9%

* Adjustment for principal salary from Admin to all other

© 2012 Pennsylvania School Boards Association11

Merger/Consolidation/Sharing

• Merger – local choice, may not save money due to CBAs

• Consolidation – State imposed, ignores due diligence

• Sharing – Opportunity for cost control

© 2012 Pennsylvania School Boards Association12

Merger/Consolidation/Sharing

• The devil is in the details of: –Merger–Consolidation–Sharing

© 2012 Pennsylvania School Boards Association13

Vouchers/Choice

• Voucher and choice are spending mandates for SDs

• Districts not funded based on # of students

• Payment to charter/voucher based on # of students

© 2012 Pennsylvania School Boards Association14

Vouchers/Choice

• Different payment from each district and not based on the charter’s cost

• In many cases does not draw enough students to save money

© 2012 Pennsylvania School Boards Association15

Mandates

• Pensions• Collective bargaining• Prevailing wage• Special education• School nurse

© 2012 Pennsylvania School Boards Association16

The future

• Need to face the funding/tax relationship– Develop a reasonable funding formula– Address the property tax issue (including land-

value tax authority)

• State needs to address unreasonable mandates such as prevailing wage

• District’s need to examine cyber options• Alternatives to current process

© 2012 Pennsylvania School Boards Association17

Questions

Leadership Service Advocacy

(717) 506-2450 www.psba.org