Commentary; Posted: 9/13/06
Narrow view of school funding misleading
Julie Corcoran
Guest Columnist
In recent letters to the editor, writers have implied that money our schools receive from the state of Minnesota should be sufficient, so we shouldnít need to renew the expiring operating levy. The writers are only pointing out one piece of the funding story, which is misleading.
As an accountant and a member of the school district board finance committee, I want to help our shareholders understand why state funding isnít sufficient and see that our district is not unique in needing to ask local residents for financial support.
The accompanying chart shows that all the school districts in the Suburban East Conference are being funded with investments from local shareholders.
Even with a slight increase in state funding over the past two years, itís not enough to cover all our school expenses.
Rising prices
Just like you, our schools have faced rising prices over the years, especially fuel costs. You think it hurts when you fill up your car? Try filling up 100 buses without cringing!
Plus, I never realized, until I became a school board member, that the state and federal government require schools to do many things that cost money, yet they donít provide funding for them. Here are some examples over the past five years:
Today, we have to issue and analyze 46 state-required tests for students without any additional money.
District staff spend numerous hours compiling required reports ó from pesticide management to employee rights ó without any additional funds.
We are required to provide many more special education services without additional state and federal funding. The increased requirements, coupled with an 11 percent increase in the number of special education students since 2000, have driven our special education costs up by 40 percent.
Cutting expenses
Administrators and school board members continually look for ways to make our schools even more cost efficient. Thatís a critical part of our job.
If we didnít, the funding gap would be a lot bigger.
Here are some of the ways school leaders have trimmed expenses since the last levy was passed in 2001:
ïRefunded bonds to get a better interest rate, saving us $2.5 million over 20 years, or $125,000 a year. (This is much like individuals refinancing their mortgage to get a better interest rate.)
ïSwitched to a less costly health plan, saving us $360,000 a year.
ïSwitched to more efficient lighting, saving us $70,000 a year.
But this district runs so lean that there isnít a lot to trim. Shareholders have demanded it, I realized it once I dug into the numbers and, recently, Standard & Poorís confirmed it.
Standard & Poorís is the worldís foremost provider of financial market intelligence to investors. They use their expertise to rank school district finances in much the same way they rank the finances of public companies.
They ranked our district one of the best in the state in terms of our return on investment to school shareholders.
That means weíre getting a great bang for our buck on student achievementówhich is the ultimate goal of our schools.
But with the current operating levy about to expire, we will lose the $6 million a year that local shareholders have been investing in our schools since 2001.
Thatís why the school board is asking you to vote yes to renew the levy and continue your financial commitment to our schools. (Please note that we are asking you to renew the levy at $6.5 million. The additional $500,000 is to account for some inflation since 2001.)
More details
In the coming weeks, you will be getting a lot more information about our school operations and financing so you can make an informed vote on Nov. 7.
Through the strategic planning process, we heard from many people that they want more and clearer information from schools.
In early September, every household in our district will receive a Voters Guide. In it, we answer many key questions and rumors that have been raised about schools the past few years.
When you receive it, please take some time to review it. If you still have questions, please donít hesitate to contact me at jcorcoran@forestlake.k12.mn.us, or contact any of the other school board members.
Julie Corcoran lives in Forest Lake and is a member of the ISD 831 Board of Education.
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