money matters

Less money for schools after the recession meant lower test scores and graduation rates, study finds

PHOTO: Scott Elliott

The evidence is adding up: The Great Recession did real damage to student learning.

New research suggests that when states cut funding in the wake of the economic downturn that began a decade ago, test scores and graduation rates both dropped. Those findings come on the heels of another study that found that being in school during the recession hurt students’ reading and math test scores.

The latest analysis, conducted by three Northwestern University researchers, found that the impact of the spending cuts was substantial. Cutting per-student spending by 10 percent throughout a student’s high-school years reduced their likelihood of graduating by nearly 3 percentage points.

Ten states saw overall spending decline by that much or more for four consecutive years since 2008. Other states saw drops that were less severe, particularly because federal spending spiked due to the stimulus. By 2011, total education spending nationwide had fallen by about 4 percent.

Those spending cuts also led to lower scores on the federal NAEP test, according to  researchers Kirabo Jackson, Cora Wigger, and Heyu Xiong.

It’s just the latest study showing that students can benefit from increased school resources. Still, some observers had speculated — or hoped — that spending cuts like the ones districts made during the recession might be healthy, spurring districts to become more efficient.

The research does find that the biggest share of the cuts were to construction spending, suggesting districts tried to protect the costs more directly tied to students and teachers (though failing to build or maintain buildings may have particularly negative consequences in the long run). But the effects on test scores and graduation rates indicate that the cuts made their way into classrooms.

“Even if there were some bloat, districts were forced to make cuts that likely hindered student outcomes,” the researchers write in the study, which has not been formally peer-reviewed.

To isolate the effects of spending cuts, they compared states that relied more on state-collected education revenue — and thus more impacted by the recession — against other states that counted more heavily on local spending, and were less affected.

The findings come as the U.S. Commission on Civil Rights released a report Thursday arguing that state funding declines during the recession — along with the fact most states don’t give substantially more resources to students in poverty — are key barriers an equal education for all students.

“Many states have cut funding for public schools since the Great Recession of the early 21st century, and the majority of states do not allocate more funding to high-poverty school districts,” that report concludes.

Spending has bounced back substantially since its recent low point, but an analysis by the Center on Budget and Policy Priorities found that, by 2015, 29 states were still spending less per student than they were in 2008.

after parkland

Tennessee governor proposes $30 million for student safety plan

PHOTO: Marta W. Aldrich
Gov. Bill Haslam speaks with reporters Tuesday about his budget amendment, which includes $30 million for a school safety plan.

Gov. Bill Haslam on Tuesday proposed spending an extra $30 million to improve student safety in Tennessee, joining the growing list of governors pushing similar actions after last month’s shooting rampage at a Florida high school.

But unlike other states focusing exclusively on safety inside of schools, Haslam wants some money to keep students safe on school buses too — a nod to several fatal accidents in recent years, including a 2016 crash that killed six elementary school students in Chattanooga.

“Our children deserve to learn in a safe and secure environment,” Haslam said in presenting his safety proposal in an amendment to his proposed budget.

The Republican governor only had about $84 million in mostly one-time funding to work with for extra needs this spring, and school safety received top priority. Haslam proposed $27 million for safety in schools and $3 million to help districts purchase new buses equipped with seat belts.

But exactly how the school safety money will be spent depends on recommendations from Haslam’s task force on the issue, which is expected to wind up its work on Thursday after three weeks of meetings. Possibilities include more law enforcement officers and mental health services in schools, as well as extra technology to secure school campuses better.

“We don’t have an exact description of how those dollars are going to be used. We just know it’s going to be a priority,” Haslam told reporters.

The governor acknowledged that $30 million is a modest investment given the scope of the need, and said he is open to a special legislative session on school safety. “I think it’s a critical enough issue,” he said, adding that he did not expect that to happen. (State lawmakers cannot begin campaigning for re-election this fall until completing their legislative work.)

Education spending already is increased in Haslam’s $37.5 billion spending plan unveiled in January, allocating an extra $212 million for K-12 schools and including $55 million for teacher pay raises. But Haslam promised to revisit the numbers — and specifically the issue of school safety — after a shooter killed 14 students and three faculty members on Feb. 14 in Parkland, Florida, triggering protests from students across America and calls for heightened security and stricter gun laws.

Haslam had been expected to roll out a school safety plan this spring, but his inclusion of bus safety was a surprise to many. Following fatal crashes in Hamilton and Knox counties in recent years, proposals to retrofit school buses with seat belts have repeatedly collapsed in the legislature under the weight the financial cost.

The new $3 million investment would help districts begin buying new buses with seat belts but would not address existing fleets.

“Is it the final solution on school bus seat belts? No, but it does [make a start],” Haslam said.

The governor presented his school spending plan to lawmakers on the same day that one House committee was scheduled to consider whether to give districts the option of arming some trained teachers with handguns. That bill, sponsored by Rep. David Byrd of Waynesboro, easily cleared its first legislative hurdle on Feb. 28 and has since amassed close to 50 co-sponsors in the House.

Editor’s note: This story will be updated.

More money

What Colorado’s booming economy might mean for the state education budget

More money is forecast to appear below the gold dome (Denver Post photo).

Gov. John Hickenlooper wants to put an extra $200 million into education next year and another $100 million in the 2019-20 fiscal year, but a lot of that money could go to offset hits to districts from anticipated reforms to the state’s pension program and reductions in local tax revenue.

The proposal comes in response to new economic forecasts released Monday that show Colorado having more money than previously expected.

Legislative economists predict that lawmakers will have a whopping $1.3 billion or 11.5 percent more to spend or save in 2018-19 than is budgeted in 2017-18. The forecast from the governor’s Office of State Planning and Budget predicts similar increases in revenue. After meeting the reserve requirement of 6.5 percent, Colorado will have an additional $492 million in reserve for this fiscal year, and even with a higher reserve of 8 percent proposed for next fiscal year, the state would have an additional $548.1 million in 2018-19. 

It’s normal for the forecasts to be slightly different because the economic analysts often use slightly different assumptions. In this case, the governor’s office predicts that the additional revenue will be more spread out over this fiscal year and the next one, while legislative economists think more of the money will be coming in next year. That difference means the legislative forecast shows the state potentially hitting the revenue limits imposed by the Taxpayer’s Bill of Rights, despite lawmakers making more room under the cap just last year, while the governor’s forecast does not.

These are the numbers that the Joint Budget Committee has been waiting for to finalize its recommendations for the 2018-19 budget year. Republicans and advocates for more transportation spending have already seized on the numbers to support a plan to ask voters to approve new debt to pay for road construction and dedicate up to $300 million a year to pay off that debt.

Of course, these forecasts are also inherently speculative – and legislative economists warned these forecasts contain even more uncertainty than usual.

State Rep. Millie Hamner, the Dillon Democrat who chairs the Joint Budget Committee, summed up the message as one of caution about dedicating too much of the new revenue to ongoing expenses. The more that gets committed, the harder it will be for the state to meet all of those commitments in future years.

Those who want to see Colorado spend more on K-12 education have pushed back on the Republican roads bill out of fear that the commitment could make it harder to send more money to schools in the future.

The governor’s budget director Henry Sobanet recommended treating much of this new money as “one-time” funds that should go to “one-time” uses. In a letter to the Joint Budget Committee, he laid out a plan.

In the case of roads spending, he’s recommending an extra $500 million for road construction in 2018-19, but only $150 million in 2019-20. And in the case of education, he’s recommending an additional $200 million in 2018-19 and an additional $100 million the following year.

However, this extra money might not show up in classrooms – or rather, it might show up in a lack of cuts rather than new money.

The governor’s budget request already called for a reduction in the budget stabilization factor of $100 million. That’s the amount by which Colorado underfunds K-12 education compared to the requirements of Amendment 23. In this budget year, it’s $822 million, after a mid-year adjustment. Some of the extra money could go toward reducing it even further.

However, Sobanet said he envisions most of it going to offset reductions in local property tax revenue that will be caused by a provision of the Colorado constitution that governs the ratio between residential and commercial property tax revenue.

It’s also possible that school districts could end up having to pay more toward some sort of agreement on changes to the Public Employees’ Retirement Association, or PERA. The final form of reforms to PERA is far from certain.

“Another downgrade in the residential assessment rate means more state share to keep total per pupil spending up,” Sobanet said. “We know that since the December announcement of property taxes and since we know PERA might be on the table for something, let’s set aside some resources and make sure we can handle this.”