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School Funding Facts

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Comparing South Dakota to the nation ... is a major problem for South Dakota schools ... in low spending states do not look like South Dakota's system ... – PowerPoint PPT presentation

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Title: School Funding Facts


1
  • School Funding Facts Figures
  • Associated School Boards of South Dakota
  • Brian Aust Director of Communications
  • December 17, 2007

2
What well talk about
  • Numbers, Rankings, Statistics
  • Comparing South Dakota to the nation and other
    states
  • Why are teachers paid poorly in South Dakota?
  • School district budgets
  • South Dakotas budget

3
Why are we talking about it?
  • Inadequate funding is a major problem for South
    Dakota schools
  • Adequacy Study State short by 133 - 400
    million
  • More than 20 million in opt-outs
  • Program cuts
  • Hiring and keeping teachers
  • A need to expand the discussion
  • Look outside our box to examine trends, see how
    other states are reacting to the challenges
    facing education in an NCLB world
  • Create urgency and expectation to act

4
The data we use
  • School finance data taken from U.S. Census Bureau
    figures
  • Most accurate, current data available
  • Released earlier this year, data from 2005
  • Other education data taken from National Center
    for Education Statistics
  • Other data taken from reliable government
    sources.

5
  • Revenue Realities
  • South Dakota ranks last in the nation in state
    per-student investment in K-12 education

6
Revenue Realities
Most federal funds must be used for specific
federal programs and contain supplement-not-suppl
ant clauses that ensure federal funds do not
replace local or state dollars.
Represents a 33 increase since the passage of
NCLB
7
Revenue Realities
8
  • Spending Realities
  • South Dakota ranks 31st in the percent of funds
    spent on instruction

9
Spending Realities
Definition of instruction expenditures
excludes several expenditures that are essential
to provide a quality education, including
expenditures on administration, curriculum
development, teacher training, essential support
personnel (guidance counselors, nurses), and
transportation.
10
Spending Realities
South Dakota has a lower student-to-teacher
ratio than 39 other states. Generally speaking,
lower student-to-teacher ratios are desirable.
Compared to most states, South Dakota
districts employ less administrative and support
staff relative to the student population served.
11
  • Rural Realities
  • Other rural states invest significantly more on
    K-12 education than South Dakota

12
Rural Realities
  • WAIT A MINUTE!
  • South Dakota ranks 41st in expenditures why do
    our public schools need more?

13
Rural Realities
States spending less that South Dakota, from
highest to lowest, are North Carolina, Kentucky,
Alabama, Tennessee, Nevada, Oklahoma,
Mississippi, Idaho, Arizona and Utah.
14
Rural Realities
  • Education systems in low spending states do not
    look like South Dakotas system
  • Serve many more students, higher student-teacher
    ratios
  • Why does South Dakota spend more?
  • South Dakota Only one characteristic is
    recognized as requiring more funds to educate a
    student
  • Attending a small school
  • Small school adjustment (additional 800)
  • Sparsity factor (to qualify 0.5 students/sq
    mile)
  • SFR looks at national-level sparsity.

15
Rural Realities
  • Low spenders are not as rural as South Dakota
  • SD Comparison Assumes Wilmot School District
    could realize the same economies of scale as the
    Aberdeen School District
  • Wilmot 7,652 Aberdeen 6,404
  • Just like economies of scale work for some South
    Dakota districts, economies of scale work for
    states too
  • Simply South Dakota is too rural to be compared
    to the low spenders in the nation.

16
Rural Realities
17
Rural Realities
States with less than 5 students per square
mile include Nebraska, Nevada, Idaho, New Mexico,
South Dakota, North Dakota, Montana, Wyoming and
Alaska
18
Rural Realities
States with less than 5 students per square
mile include Nebraska, Nevada, Idaho, New Mexico,
South Dakota, North Dakota, Montana, Wyoming and
Alaska
19
Rural Realities
  • What does this tell us
  • Other states embrace their rural nature and
    provide public education with resources to
    overcome economies of scale
  • Rural states spend below the national average,
    but significantly higher than South Dakota
  • Rural states have different needs
  • South Dakota, which contributes nearly 1,900 per
    student less than other states, does not
    adequately fund K-12

20
  • Regional Realities
  • South Dakotas low cost of living does not
    compensate for low teacher salaries

21
Regional Realities
  • Why compare South Dakota to surrounding states?
  • Competing for limited supply of teachers
  • Since 2005, some surrounding states have devoted
    significant increases to K-12
  • North Dakota 100 million, more to come
  • Iowa 178 million for teacher salaries
  • Wyoming 40,000 average starting salary
  • Facing declining enrollment, just like SD

22
Regional Realities
23
Regional Realities
24
Regional Realities
25
Regional Realities
  • South Dakota receives less per-student and spends
    less per-student than surrounding states
  • Lowest state revenue
  • Lowest average teacher salary

26
Regional Realities
  • 56 million If we want to bring teachers up to a
    regional average
  • But, just looking at average salary is an
    incomplete comparison
  • Multiple factors influence teacher salaries
  • Adequacy study comparison included starting
    salary, experience, education, and COST OF LIVING

27
Regional Realities
Taken from Estimating the Cost of an Adequate
Education in South Dakota.
28
Regional Realities
  • 32.4 Million If we wanted to pay teachers
    comparably ALL FACTORS CONSIDERED
  • Supply/Demand
  • Demand for teachers is high
  • Supply is short
  • Salaries become issue
  • Low salaries hamper South Dakotas ability to
    compete
  • Application pools dwindling, staff positions
    going unfilled

29
  • State Aid Realities
  • Low state funding is a barrier to hiring, keeping
    teachers

30
State Aid Realities
  • South Dakotas state aid formula is the primary
    source of school districts discretionary
    revenue
  • Increasing teacher salaries requires additional
    state aid

31
State Aid Realities
  • After excluding federal revenues, the state aid
    formula makes up 84 of a districts
    discretionary revenue.
  • Vast majority of fed funds arent discretionary

32
State Aid Realities
  • Salaries and benefits comprise 81 of SD
    districts expenditures
  • Increases in salaries and benefits cannot exceed
    the increase in the state aid formula over an
    extended period of time
  • If they do, the districts budget will inevitably
    go in the red

33
State Aid Realities
  • Relationship is not only theoretical
  • Between 1998 and 2005, South Dakotas average
    teacher salary as increased by 22, or 2.9
    percent per year.
  • Over the same period of time, the per-student
    allocation, the amount guaranteed by the state
    aid formula, has increased 19, or 2.5 per year.

34
State Aid Realities
  • SoIf South Dakota ranks 41st in the amount spent
    on K-12, why are South Dakota teachers paid 51st
    in the nation?
  • State aid is based on a low per-pupil amount that
    doesnt reflect the needs of our rural education
    system
  • and the state provides the lowest amount of
    per-student aid in the country
  • meaning districts have less discretionary
    revenue that can be used to give increases to all
    teachers.
  • Local property tax payers carry too much of the
    burden already its time for the state to
    provide additional funding for K-12 education.

35
  • State Budget Realities
  • Percent of the state budget devoted to K-12 has
    declined over the past decade.

36
State Budget Realities
  • Since 1998, state lawmakers have shifted
    approximately 7 cents of every state dollar away
    from K-12 education and toward other areas of
    state government.
  • Percentages calculated using general
    appropriations bills, retrieved from Legislative
    Research Council.
  • Percentages include general state aid to
    education and state aid to special education.

37
State Budget Realities
  • Overall, education is less of a priority than it
    was a decade ago
  • K-12s share of the education budget is lower
    than a decade ago
  • If the relationship stayed the same from 1998 to
    2008, K-12 could have approximately 764 more
    per student today (approx. 92 million).

Percentages based on each general appropriation
bills from each year.
38
  • Closing Comments

39
Closing
  • K-12 Education in South Dakota is not adequately
    funded
  • First step is to realize the problem help
    parents, community members and legislators
    understand
  • Statistics only go so far tell your story.
  • South Dakota must embrace our rural nature and
    provide districts with adequate resources to
    overcome the challenges of delivering education
    in South Dakota.
  • Dont tell me your priorities, show me your
    budget.
  • K-12 needs to be a priority again

40
Closing Comments
  • Watch for School Funding Realities in the coming
    weeks
  • Additional realities, more graphics, and expanded
    data.

41
Closing Comments
  • Questions
  • Brian Aust
  • ASBSD Director of Communications
  • 605.773.8382
  • baust_at_asbsd.org
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