Before statehood public education needs were priority- Note: State of Franklin- “Education important with sums paid by the public.” 1789Congress specified that title for school lands be vested in the state itself. 1796Tennessee’s first constitution- silent on education 1806First mention of state support for public school 1815First tax levied for education of orphans 1829Appropriate state funds to operate public schools 1838First school census- 185, 342 children between 6-16 on which $103, state funds were expended

1847Governor Neil Brown- “If anything can justify taxation, it is the education of the children of the state.” 1870State Constitution- Section 12 Article x1- Poll taxes appropriated to education 1873School Law of st real effort to make public schools financed by the state a reality % of children attend school 1907Legislative Act to create County Boards of Education 1913Compulsory Attendance Law

1925State Salary Schedule for Teachers 1933Severe education cuts- Average 25% 1946/472% Sales Tax by Governor McCord passed

State Board of Education began working with various groups to reform education funding TFP appropriations were around $900 million Consensus on the weaknesses in the TFP No inflation adjustment Inflexible funding – “targeted formula” Inadequate Insignificant amount of funding for consideration of local ability to pay

Development of the Basic Education Program Formula Funding mechanism featuring components that are necessary for funding a “basic” education program No “targeted” funding Flexible funding: “A funding formula, not a spending plan.” Funding distribution considering local ability to pay at a much more significant level State loses small school systems lawsuit which resulted in a court-mandated requirement to distribute state funding more equitably Education Improvement Act passes encompassing all these features

Two distinct and separate parts: –Formula that generates the total dollars –Local Ability to Pay (Fiscal Capacity) TN Department of Education generates the total dollars Tennessee Advisory Commission on Intergovernmental Relations (TACIR) & UT Center for Business and Economic Research (CBER) determine local ability to pay

Local funding requirements Current funding issues

Two more successful legal challenges by small schools resulting in funding improvements Various changes in funding components Changes in local share percentages BEP 2.0 brought on changes in local ability to pay and the largest improvement in state funding but only half implemented Still waiting for full implementation

 Accept the fact that relationships do not just happen.  Bad relationships are easily achieved, but good relationships come from hard work.  Good relationships can disappear without a notice.  Remember that commissioners are, in fact, real people.  Be willing to share complete, accurate information on all issues.  To the greatest extent possible, involve commissioners in the decision-making process.

You have been appointed by your board to chair a group to recommend a plan for the board to work effectively with the commission. List as many suggestions as you can in 5 minutes. Then, select the best 5 to present to the group.

1. Estimate- Collections 2. Other Discretionary Funds 3. ADA, ADM- Class Size 4. Inflation 5. Collection

6. State Equalization 7. Fund Balance 8. Health Insurance 9. Economy 10. Mandates

12. Federal Cuts Mid Year 13. School Schedules- Special Education/ CTE 14. Cash Flow 15. Zoning

16. Election Year 17. Local Personalities 18. Growth Fund 19. Salary Schedule- Steps and Degrees

New Salary Schedule Options Differentiated Pay Plan

 ADM & ADA  Interest  Stimulus  Title  State Equivalent  Inflation  Tuition

 Facilities  Transportation  Risk Management

 Take the initiative to establish personal relationships with other locally elected officials.  Establish personal relationships with aides and office personnel of other elected officials.  Invite local officials to a special tour of the school system and to attend school board meetings and other educational forums.  Inform the funding body during the year as circumstances change.

 Avoid confrontations. Be friendly, even if you disagree; be polite but firm.  Be involved in the REAL MEETINGS.  SMILE – keep your sense of humor.  Make appropriate items personal for commissioners (anything that affects their districts).  Know the magic numbers – TIMING.

 Have key commissioners ready for motions and opinions.  Have a plan.  Keep close and keep them informed.  Schedule individual time with each commissioner (visit homes).  Use the Biscuit Rule.

 Listen – you must help meet their needs before you can get what your school system needs.  Be flexible – plan for rejections – no is not forever.  Negotiate for future funding – announce publicly.  Be a gracious winner or loser.

Question: Commissioner Houston Naron suggested that county commissioners feel that boards will always spend what the commission gives them and that boards always ask for more than is needed. Do you agree? What should boards do to overcome that perception?

Question: How can the board develop or improve upon a relationship of trust with the funding body?

 Think that only you have good ideas or that your way is the only way.  Let your pride or ego hurt your school system.  Feel you must win each debate (be on equal ground with these people).

 Win a battle that will cost you the war.  Ask for a vote on something you know you won’t get – negotiate a future vote.  Ride a dead horse – or fight a battle you can’t win.

 Publicly criticize individuals on the funding body – state your need and that the funding body is not presently ready to fund this and the repercussion.  Demand funding – your county may not be ready or able.  Close the door.  Let items affecting a commissioner personally or his district go unidentified.  Be extravagant.