Kansas Public Education At The Crossroads

What caused the current budget crisis? After years of strong growth, the recession and tax cuts decreased state revenues. The cost of education and other government services continued to increase, causing a deficit.

State Spending Facts 2003 to 2009: state general fund spending increased nearly 50% ($2 billion). K-12 education aid increased 52.5% ($1.1 billion), especially after the Montoy school finance decision. Social service spending increased 62.8%; ($484 million), mostly for rising health care costs.

State Revenue Facts SGF revenue fell from $5.81 billion in 2007 to a projected $5.18 billion in 2011 (-11%). Worst recession since Great Depression. State tax cuts ($180 million for current year, over $200 million in 2011). Federal tax cuts under the stimulus bill also reduced state revenues.

What has been the impact on school funding?

Current Year Funding Cuts and Federal Stimulus Assistance, FY 2010 State General Fund reduced $550 million K-12 Education Cuts (through Nov. 5) Base State Aid (4.8%)$136.5 million Capital Outlay Aid eliminated $25.6 million Special Education, other $6 million Cuts to School Districts$168.4 million Replacement from Stimulus $194 million Additional aid from Stimulus $40 million

Potential Additional Cuts 2010 K-12 cuts already imposed: $170 million Shortfall in school formula: $100 million plus Higher enrollments, lower property tax revenue. Additional state shortfall: at least $300 million 52% share for K-12: $156 million or more 2011 Projected Deficit: $263.5 million 52% “share” for K-12: $137 million or more 2012 Stimulus Expires: $297.3 million $194 K-12 replacement, $40 million K-12 other

Potential Total Impact Three Year K-12 Total: At least $660 million at “proportional share” Approximately $1,000 base budget per pupil cut below last year (23%) More if K-12 took deeper cuts. Would wipe out “Three-Year Plan” passed to provide constitutionally suitable funding for K-12 education.

Why is adequate education funding so important? Educational attainment increases economic prosperity and quality of life. You earn what you learn!

Rising Tide of Education Kansas Constitution: “The legislature shall provide for intellectual, educational, vocational and scientific improvement by establishing and maintaining public schools …” (Article 6, Sec. 1) Educational attainment in Kansas has never been higher, and the economic reward for education has never been greater.

Learning Equals Earning

Because individuals are more prosperous with more education, states are more prosperous if they have more well- educated citizens. For example, Kansas has among the highest per capita income and lowest poverty rates in our region, along with other states ranking high in education.

Regional Prosperity/Education Ranking Per Capita Income Lowest Poverty Rate High School Graduates Bachelors Degree Advanced Degree ColoradoMinnesota Colorado MinnesotaIowaNebraskaMinnesota Kansas Iowa Kansas Minnesota Nebraska Kansas NebraskaMissouri S. DakotaColoradoS.DakotaN.DakotaNebraska IowaN.Dakota S.DakotaIowa Missouri ColoradoMissouriS.Dakota N. DakotaS. DakotaMissouriIowaOklahoma N.Dakota

School Operating Budgets as % of Kansas Personal Income

So what’s the problem? Kansas educational outcomes have steadily improved and rank high nationally and regionally. Kansas public schools consistently serve about 90% of school-aged children. Enrollment is stable. So, why did school districts need more funding?

Why does it cost more to increase education attainment? In the past, it was socially and economically acceptable for students to leave school with low skill levels. Schools are now expected to get all students to high skill levels – all are expected to reach levels previously reached by only a few.

Changing Expectations Traditional model: teachers teach; it’s up to the students to learn. Results:  Roughly “top third” excelled, went to college, got high skill/high wage jobs.  “Middle third” learned skills for middle class jobs and lifestyle.  “Bottom third” dropped out or acquired few skills, but found work in low skill jobs.

Changing Expectations Old model doesn’t work any more.  Low skill jobs disappearing (low wage, foreign competition, automation); wages can’t support basic needs.  U.S. economy needs more high skill jobs.  Other countries catching up to U.S. education levels. Created need to bring all students to higher levels than ever before.

Challenges for Public Education Special Education Children At Risk Changing Demographics High Standards

No Child Left Behind

What Does Achievement Cost? 2001 Legislative Study 2005 Montoy 2006 LPA Three Year Plan

What has happened with additional K-12 funding? Much additional funding was targeted to special needs students. Districts used new funds to improve educational programs and support. Student achievement significantly increased.

Additional K-12 Funding Over $1 billion in state aid.  Nearly half ($475 million) for at-risk and bilingual weighting; transportation aid and Special Education aid.  $123.7 million for KPERS contributions (including past underfunding), not current costs.  $212 million for Local Option Budget aid. “Per pupil” increases don’t explain how new funding was used for different purposes; produced different results.

How was the money spent? More early childhood +828 Pre-K and Kindergarten teachers and aides At-risk programs, lower class sizes +1,932 regular classroom teachers and aides Helping teachers improve +170 support positions Special education +2,435 teachers and aides School safety; student transportation +58 security, social services positions Enhance technology instruction and support +923 technology positions

What were the results? State Assessments Achievement Gap ACT Scores NAEP Scores

Standard of Excellence: Mathematics

Standard of Excellence: Reading

School districts are spending more per pupil because Kansans expect significantly more; and Kansans are getting better results – even with more challenging and expensive students.

The Cost of Failure Students who leave school without appropriate skills are far more likely to:  Live in poverty, require public assistance.  Commit crimes and become incarcerated.  Have lower health outcomes. States and communities with fewer educated people are less likely to:  Attract and retain high quality employers.  Maintain a tax base to meet public needs.

Can we avoid deep cuts to K-12 without more revenue? Not without far deeper cuts to other important state programs.

Spare schools from cuts?

Use school district balances? Capital outlay – Constitution limits current levies to construction, equipment, repair. Cash on hand for bond payments. Funds on hand for cash flow when scheduled aid arrives after school begins. Contingency funds for emergencies, late aid payments (increased by Legislature). All are “one-time” solutions.

Can schools be more “efficient” without harming quality? Kansas schools rank among the best in the nation for dollars spent per pupil. Reduced funding will harm students, families and local economies.

State Spending and Results Top 10 States on six education measures: Vermont $12,614 Massachusetts $11,981 New Hampshire $10,079 Minnesota $9,138 New Jersey $14,630 Connecticut $12,323 Kansas $8,392 Montana $8,581 Virginia $9,447 Maryland $10,670 Average$10,786 Top scoring states, students at Proficient or higher, National Assessment of Education Progress Massachusetts $11,981 New Jersey $14,630 Vermont $12,614 New Hampshire $10,079 Minnesota $9,138 Kansas $8,392 Average $11,270 U.S. Average $9,138

Regional Ranking and Results Total Revenue Current Spending High school Completers 2008 ACT Score NAEP Basic or Above NAEP Proficient or Above Minnesota N. DakotaMinnesotaN. DakotaMinnesota Nebraska Kansas Iowa Kansas N. DakotaMinnesotaNebraskaMinnesotaN. Dakota Kansas Nebraska Kansas S. Dakota Iowa S. DakotaIowa Missouri S. DakotaN. DakotaColorado Missouri Nebraska S. DakotaSo. DakotaColoradoOklahomaMissouri Oklahoma ColoradoOklahoma SpendingAcademic Results

Getting more “efficient” means: Consolidating districts. Closing rural and urban schools. Reducing supervision of staff and students. Reducing local purchases. Cutting “non-instructional” staff; nurses, counselors, resource officers, teacher support, transportation. Cutting payroll and local spending – same as private sector layoffs, closings.

Would higher taxes hurt the Kansas economy? Kansas is not a high tax state. The Kansas tax burden has changed little in decades (although tax exemptions may have shifted the burden). Educational attainment matters more for state income levels than tax rates.

Alternative: Raising Revenue Kansas ranks 23 rd of 50 states in tax burden. Tax burden in state and local taxes as percent of personal income. (Source: National Association of Tax Administrators) Regional Tax Burden: Nebraska 11.9% Minnesota 11.8% North Dakota 11.7% Kansas 11.7% Iowa 11.0% Oklahoma 10.6% Missouri 10.1% Colorado 9.8% South Dakota 9.1%

State and Local Taxes as Percent of Kansas Personal Income

Income, Taxes and Education State Per Capita Income Average: taxes as percent of personal income Average rank in taxes as percent of income Average rank in Education Attainment Top % Second % Middle % Fourth % Bottom %

Kansas Economic Assets Strong education system, preschool to postsecondary. Skilled workforce. Good transportation system. High quality of life (safety, social services). Public services depend on public tax support.

Public Opinion Kansas Speaks 2009 Statewide Public Opinion Poll, Docking Institute of Public Affairs.  52% favor increased state funding for K-12 education; 41% favor keeping funding at the same level.  Only 7% favor decreasing state funding for K-12 education.  Just slightly lower support for higher education.

The Real Choice Previous generations of Kansans have always believed in a better life for their children and grandchildren. Education is the foundation of a better life. What choice will this generation make?