School Finance

3 Marion County districts will ask voters for more tax money Tuesday

PHOTO: Scott Elliott
Perry Township and Beech Grove Schools have school repairs as part of their plans if voters approve new money Tuesday.

Three Marion County school districts say they need extra money to pay teachers, fix school buildings and continue to ensure children can have a bus ride to school.

Wayne Township and Perry Township will ask voters to approve new tax increases on the ballot for Tuesday’s primary election.

For Beech Grove, one referendum would continue to raise money to support its busing system, which could be scaled back or even discontinued if it fails, and a second would pay for building repairs.

Superintendent Paul Kaiser said the building fixes must be made. The only question is how long they’ll take and how much they will cost. Ideally, the district would complete its construction this summer.

“If we don’t do it with the referendum, it will take us 10 years to replace it all,” he said. “The cost of equipment and materials will go up a lot over the 10 years. This is more efficient.”

Here’s a breakdown of each district’s ballot requests:

Beech Grove Schools

  • Proposed tax increases: Two referenda will be up for a vote: A 35-cent continuation of existing taxes and a 15-cent increase per $100 of a property’s assessed value.
  • What the increase will support: busing, updated band and choir rooms, heating and air conditioning systems.
  • Potential new cost to the average homeowner: Less than $36 per year for the 15-cent tax increase.

Perry Township

  • Proposed tax increases: Two referenda will be up for a vote: A 42-cent increase and a 13-cent increase per $100 of a property’s assessed value.
  • What the increase will support: hiring of bus drivers and janitors and building more classrooms for the growing student population.
  • Potential new cost to the average homeowner: About $118 per year if both pass.

Wayne Township

  • Proposed Tax increases: A 35-cent increase per $100 of a property’s assessed value.
  • What the increase will support: teacher and staff salaries.
  • Potential new cost to the average homeowner: Less than $100 per year.

Kaiser said his district needs the 15-cent tax increase to update heating and air conditioning in four of its five buildings, and the high school needs updated band and choir rooms for a program that has seen the number of participants more than triple.

Tom Little, superintendent in Perry Township, said his district is struggling to keep up with enrollment growth — the district is already using 26 portable classroom “trailers” as a temporary fix, and they’re bringing in 14 more for next year.

“Whenever you add kids and are growing like we are, you need more bus drivers to transport kids,” Little said. “And whenever you add more classrooms and more areas, you have to have custodians to clean them.”

Yet there are still shortfalls districts say they’ve been dealing with since the state decided to put in place caps on property taxes that limited what schools could collect.

In 2010, the Indiana legislature passed a bill to stabilize homeowners’ property taxes. Homeowners now can’t pay more than one percent of the total assessed value of their property in property taxes. If a home is assessed at 150,000, residents won’t pay more than $1,500 in taxes.

Those caps meant schools lost a primary source of money, so the state allowed school districts to go to local taxpayers to seek voter approval for extra money if they fell
 short.

Wayne Township lost 37 percent of its property tax revenue when the tax caps went in place, Superintendent Jeff Butts said at a meeting earlier this year. Only Beech Grove’s 39 percent loss was bigger in Marion County, he said. Wayne Township is the second largest district in the county behind Indianapolis Public Schools.

Supporters of the tax caps believe they offer much-needed relief to homeowners who have seen property values vary widely in the past. But critics argue they cut off a viable way for districts to pay for services for students.

Kaiser said he is confident his community will support the ballot proposals because even with the changes, taxes would still be lower than they were in 2007.

“Our community, they care about the living environment for kids with the heating and cooling, and they care about the performing arts,” Kaiser said. “We think they’ll support it.”

But he’s still got a back-up plan. If the referendum should not pass, Kaiser said, the district will have to cancel busing or reduce it significantly.

If Perry Township’s referenda don’t pass, Little said the district will continue using portable classrooms and would have to convert art and music space, the library and even gyms into classrooms for elementary school students. And Wayne Township would almost certainly see layoffs if the tax increases aren’t approved, officials said.

At this point, it’s up to voters, Little said, and he’s cautiously optimistic.

“We need to go to the community, and we need to express to the community the issues we’re having and the concerns we’ve got,” Little said. “This really places the entire future of the school corporation in the hands of the taxpayer, who foots the bill, and that’s more than fair.”

money matters

Why Gov. Hickenlooper wants to give some Colorado charter schools $5.5 million

Students at The New America School in Thornton during an English class. (Photo by Nic Garcia)

If Mike Epke, principal of the New America School in Thornton, had a larger budget, he would like to spend it on technical training and intervention programs for his students.

He would buy more grade-level and age appropriate books for the empty shelves in his school’s library, and provide his teachers with a modest raise. If he could really make the dollars stretch, he’d hire additional teacher aides to help students learning with disabilities.

“These are students who have not had all the opportunities other students have had,” the charter school principal said, describing his 400 high school students who are mostly Hispanic and come from low-income homes.

A $5.5 million budget request from Gov. John Hickenlooper, a Democrat, could help Epke make some of those dreams a reality.

The seven-figure ask is part of Hickenlooper’s proposed budget that he sent to lawmakers earlier this month. The money would go to state-approved charter schools in an effort to close a funding gap lawmakers tried to eliminate in a landmark funding bill passed in the waning days of the 2017 state legislative session.

Funding charter schools, which receive tax dollars but operate independently of the traditional school district system, is a contentious issue in many states. Charter schools in Colorado have enjoyed bipartisan support, but the 2017 debate over how to fund them hit on thorny issues, especially the state’s constitutional guarantee of local control of schools.

The legislation that ultimately passed, which had broad bipartisan support but faced fierce opposition from some Democrats, requires school districts by 2020 to equitably share voter-approved local tax increases — known as mill levy overrides — with the charter schools they approved.

The bill also created a system for lawmakers to send more money to charter schools, like New America in Thornton, that are governed by the state, rather than a local school district.

Unlike district-approved charter schools, which were always eligible to receive a portion of local tax increases, state-approved charter schools haven’t had access to that revenue.

Terry Croy Lewis, executive director of the Charter School Institute, or CSI, the state organization that approves charter schools, said it is critical lawmakers complete the work they started in 2017 by boosting funding to her schools.

“It’s a significant amount of money,” she said. “To not have that equity for our schools, it’s extremely concerning.”

CSI authorizes 41 different charters schools that enrolled nearly 17,000 students last school year. That’s comparable to both the Brighton and Thompson school districts, according to state data.

Hickenlooper’s request would be a small step toward closing the $18 million gap between state-approved charter schools and what district-run charter schools are projected to receive starting in 2020, CSI officials said.

“Gov. Hickenlooper believes that working to make school funding as fair as possible is important,” Jacque Montgomery, Hickenlooper’s spokeswoman, said in a statement. “This is the next step in making sure that is true for more children.”

If lawmakers approve Hickenlooper’s request, the New Legacy charter school in Aurora would receive about $580 more per student in the 2018-19 school year.

Jennifer Douglas, the school’s principal, said she would put that money toward teacher salaries and training — especially in the school’s early education center.

“As a small school, serving students with complex needs, it is challenging and we need to tap into every dollar we can,” she said.

The three-year old school in Aurora serves both teen mothers and their toddlers. Before the school opened, Douglas sent in her charter application to both the Aurora school board and CSI. Both approved her charter application, but because at the time her school would receive greater access to federal dollars through CSI, Douglas asked to be governed by the state.

Douglas said that her preferred solution to close the funding gap would be to see local tax increases follow students, regardless of school type or governance model. Until that day, she said, lawmakers must “ensure that schools have the resources they need to take care of the students in our state and give them the education they deserve.”

For Hickenlooper’s request to become a reality, it must first be approved by the legislature’s budget committee and then by both chambers. In a hyper-partisan election year, nothing is a guarantee, but it appears Hickenlooper’s proposal won’t face the same fight that the 2017 charter school funding bill encountered.

State Rep. Jovan Melton, an Aurora Democrat who helped lead the charge against the charter school funding bill, said he was likely going to support Hickenlooper’s proposal.

“You almost have to do it to be in alignment with the law,” Melton said. “I don’t think with a good conscious I could vote against it. I’m probably going to hold my nose and vote yes.”

Payment dispute

Fired testing company seeks $25.3 million for work on TNReady’s bumpy rollout

PHOTO: TN.gov

Tennessee officials won’t talk about the state’s ongoing dispute with the testing company it fired last year, but the company’s president is.

Henry Scherich

Henry Scherich says Tennessee owes Measurement Inc. $25.3 million for services associated with TNReady, the state’s new standardized test for its public schools. That’s nearly a quarter of the company’s five-year, $108 million contract with the state, which Tennessee officials canceled after technical problems roiled the test’s 2016 rollout.

So far, the state has paid the Durham, North Carolina-based company about $545,000 for its services, representing about 2 percent of the total bill, according to a claim recently obtained by Chalkbeat.

Measurement Inc. filed the claim with the state in February in an effort to get the rest of the money that it says it’s owed. Since then, lawyers for both sides have been in discussions, and the company filed a lawsuit in June with the Tennessee Claims Commission. The commission has directed the State Department of Education to respond to the complaint by Nov. 30.

“We’re moving forward,” Scherich told Chalkbeat when asked about the status of the talks. “… We’re simply asking to be paid for the services we provided.”

Education Commissioner Candice McQueen declined last week to discuss the dispute, which she called “an ongoing pending lawsuit.” A spokesman for the attorney general’s office also declined to comment on Monday.

Scherich said he and other company officials have not been called to Nashville for hearings or depositions.

“Our lawyers and the state’s lawyers are still skirmishing each other,” he said. “…They argue about lots of things. It’s kind of like we’re establishing the ground rules for how this process is going to proceed.”

PHOTO: Grace Tatter
Education Commissioner Candice McQueen announced the firing of Measurement Inc. and the suspensions of most testing in April 2016.

Tennessee’s dramatic testing failure started on Feb. 8, 2016, when students logged on during the first morning of testing and were unable to load TNReady off the new online platform developed by Measurement Inc. The fallout culminated several months later when McQueen fired the company and canceled testing altogether for grades 3-8. In between were months of delays after McQueen instructed districts to revert to paper-and-pencil materials that would be provided by Measurement Inc. under the terms of their contract. Many of those materials never arrived.

The company’s claim suggests that the state was hasty in its decision to cancel online testing and therefore shares blame for a year of incomplete testing.

The Tennessee Department of Education “unilaterally and unjustifiably ordered the cancellation of all statewide electronic testing that occurred on February 8, 2016, following a transitory slowdown of network services that morning,” the claim says.

(In an exclusive interview with Chalkbeat the day before his company was fired, Scherich said Measurement Inc.’s online platform did not have enough servers for the 48,000 students who logged on that first day — a problem that he said could have been fixed eventually.)

The claim also charges that McQueen’s subsequent order to substitute paper test materials was “unnecessary and irresponsible” and impossible to meet because of the logistical challenge of printing and distributing them statewide in a matter of weeks.

In her letter terminating the state’s contracts with Measurement Inc., McQueen describes daily problems with the company’s online platform in the months leading up to the botched launch. “This was not just a testing day hiccup; the online platform failed to function on day one of testing,” she wrote.

McQueen said those experiences contributed to her department’s conclusion that Measurement Inc. was unable to provide a reliable, consistent online platform and left her with no option but to order paper and pencil tests. She also cited the company’s failure to meet its own paper test delivery deadlines for her ultimate decision to terminate the contracts and suspend testing.

The last sentence of the four-page termination letter says the state would “work with (Measurement Inc.) to determine reconciliation for appropriate compensation due, if any, for services and deliverables that have been completed as of the termination date after liquidated damages have been assessed.”

In addition to its invoices for work under the contract, Scherich said his company is owed another $400,000 for delivering test-related materials to the state after its contract was ended.

“We didn’t want to be a company that stood in the way of the programs of the state of Tennessee, so we provided all the information they requested,” Scherich said. “We were told we would be paid, we provided the information, and then we’ve not been paid.”

Founded in 1980, Measurement Inc. had been doing testing-related work for Tennessee for more than a decade before being awarded the 2014 TNReady contract, its biggest job ever. The company had a fast deadline — only a year — to create the state’s test for grades 3-11 math and English language arts after a vote months earlier by the legislature prompted Tennessee to pull out of PARCC, a consortium of other states with a shared Common Core-aligned assessment.

Scherich said the loss of the TNReady contract was “a major hit” for his company, but that Measurement Inc. has paid every employee and subcontractor who worked on the project. “We have had to go into debt to keep ourselves viable while we wait for this situation with Tennessee to be resolved,” he said, adding that the company continues to do work in about 20 other states.

To pursue its claim, Measurement Inc. has hired the Tennessee law firm of Lewis, Thomason, King, Krieg & Waldrop, which has offices in Nashville and Knoxville.

“I’m sure we’ll work out something amicable with the state over time,” he said. “I’m an optimistic person. But I think our lawyers and their lawyers will have to have a lot of negotiations.”

Below are Measurement Inc.’s claim against the state, and the state’s letter terminating its contracts with the company.

Editor’s note: This story has been updated with details about the claim’s status.