Who Is In Charge

Proposed budget cuts spare education

Gov. Bill Ritter Tuesday detailed $320 million in proposed state budget cuts and shifts designed to cover the revenue shortfall created by the recession.

The plan proposes no cuts to the formula-driven state support for K-12 schools, projected to total more than $3 billion. Ritter and budget director Todd Saliman told the Joint Budget Committee that K-12 spending is protected by Amendment 23.

The proposal does include an $80.9 million cut in general fund support for the state’s colleges and universities, which already has been trimmed to 2005-06 levels of state support and 2008-09 overall spending. But, the administration plans to back fill that $80.9 million cut with additional federal stimulus funds, which already are being used heavily to support higher ed.

The budget picture may be darker for K-12 in 2010-11. Saliman said that K-12 general fund support is expected to be flat in the proposed 2010-11 budget that the governor will submit to the committee in November. That’s because one requirement of Amendment 23, that general fund school support increase 5 percent a year, will be suspended because state revenue growth has dropped below a level specified in the amendment. Two other key factors in the amendment’s formula are enrollment growth and inflation. Flat enrollment growth and little or no inflation this year, as state economists are forecasting, could mean overall growth in K-12 spending could be as little as 1 or 2 percent in 2010-11.

School districts also receive funding from a separate account, the State Education Fund. The 2009 legislature put a hold on $110 million in the fund’s allotment for schools and will decide in January whether to release it or retain it. Most observers expect lawmakers will not release the funds. (The $110 million and the fund were not part of the Ritter-Saliman plan released Tuesday.)

Commenting on higher education, “That reduction will be fully covered by federal stimulus dollars,” Saliman told the committee during a standing-room-only briefing in the Capitol’s Old Supreme Court Chambers. “We’ll be seeking a federal waiver to enable us to implement this proposal,” he added. He said other states have receive such waivers.

Federal regulations require states to maintain tax-dollar support at 2005-06 levels to be eligible for the stimulus, but that requirement can be waived.

General fund spending is supported by state tax revenues. Colleges and universities also receive substantial support from tuition and fees, plus federal and other grants.

Saliman said the $80.9 million cut in state support will have to be restored in the next fiscal year, 2010-11, under the terms of a waiver.

A news conference followed the JBC meeting, and Ritter was asked if he feels some sort of tax increase for higher education should be proposed to voters. He said that will depend on the recommendations of the Department of Higher Education’s 18-month master plan process, which kicks off next month.

The governor also was non-commital when asked if supports tax changes during the 2010 legislative session. Some lawmakers have been pushing to close some business sales tax exemptions. “I’m not going to try to predict how that discussion will go,” Ritter said. But he did say it would weaken state economic-development efforts to eliminate exemptions that other states also offer.

Overall, the budget-balancing plan appears to be more surgical than across-the-board. The largest percentage cuts are in the departments of agriculture, military and veterans affairs, natural resources, regulatory agencies and in the governor’s office. As with K-12 education, no cuts are proposed for the departments of transportation and labor and employment, which receive no general fund support.

Ritter and Saliman said the plan was designed to minimize as much as possible cuts to human services and medical programs that serve vulnerable Coloradans.

But, Ritter said, “You cannot reduce spending this much without impacting services. … There is a lot of sacrifice Colorado citizens will experience.”

The plan is expected to cut about 266 state jobs, through holding vacant jobs open, layoffs or other steps. State employee pay raises have been frozen until July 2011, and most state workers will have at least four unpaid furlough days.

Cuts of note to other departments include:

Closing 59 beds at the Colorado Mental Health Center at Fort Logan
Closing a 32-bed nursing facility in Grand Juntion
Reducing health care provider rates by 1.5 percent, plus other health cuts totaling $115 million
Changing parole spending by concentrating services on inmates entering parole and spending less on those nearly the end of parole, for a $19 million savings
Eliminating $1 million for Tony Grampsas Youth Services grants
Some spending from cash funds also is being reduced, primarily grants to local governments, especially those in energy production regions.

Reductions that don’t require legislative approval will be implemented Sept. 1 in most cases. Detailed plans will be submitted to the JBC Aug. 24.

Recession-driven revenue drops started last year, and the 2009 legislature had to cut about $1.4 billion from the 2008-09 and 2009-10 budgets. Updated revenue forecasts issued in late June showed that further 2009-10 cuts would be required, which Saliman estimated Tuesday at $318 million. (The gap originally was estimated at about $400 million.) The next formal revenue forecasts will be issued in late September.

General fund spending totals about $7 billion of some $18.7 billion in overall state spending. That grand total includes federal money (for things like health programs) and cash funds such as college tuition, fuel taxes, unemployment insurance taxes, lottery revenues, hunting licenses and other fees. So, a cut of about $320 million represents about 2 percent of total spending.

Governor’s budget cut presentation and details (PDF)
Gov. Bill Ritter and JBC Chair Moe Keller, D-Wheat Ridge, discuss proposed 2009-10 budget cuts

Controversy

Boundary lines of proposed South Loop high school drive wedge between communities

PHOTO: Cassie Walker Burke
About 30 speakers weighed in on a boundary proposal for a new South Loop high school at a public meeting at IIT.

The parent, wearing an “I Love NTA” T-shirt, said it loudly and directly toward the end of the public comment section Thursday night. “It sickens me to be here today and see so many people fighting for scraps,” said Kawana Hebron, in a public meeting on the boundaries for a proposed South Loop high school on the current site of National Teachers Academy. “Every community on this map is fighting for scraps.”

The 1,200-student high school, slated to open for the 2019-2020 school year near the corner of Cermak Road and State Street, has become a wedge issue dividing communities and races on the Near South Side.

Supporters of NTA, which is a 82 percent black elementary school, say pressure from wealthy white and Chinese families is leading the district to shutter its exceptional 1-plus rated program. A lawsuit filed in Circuit Court of Cook County in June by parents and supporters contends the decision violates the Illinois Civil Rights Code. 

But residents of Chinatown and the condo-and-crane laden South Loop have lobbied for an open-enrollment high school for years and that the district is running out of places to put one.

“I worry for my younger brother,” said a 15-year-old who lives between Chinatown and Bridgeport and travels north to go to the highly selective Jones College Prep. She said that too many students compete for too few seats in the nail-biting process to get into a selective enrollment high school. Plus, she worries about the safety, and environment, of the schools near her home. “We want something close, but good.”

PHOTO: Courtesy of Chicago Public Schools
The “general attendance” boundary for the proposed South Loop high school is outlined in blue. The neighborhoods outlined in red would receive “preference,” but they would not be guaranteed seats.

One by one, residents of Chinatown or nearby spoke in favor of the high school at the meeting in Hermann Hall at the Illinois Institute of Technology. They described their long drives, their fearfulness of dropping off children in schools with few, if any, Chinese students, and their concerns about truancy and poor academics at some neighboring open-enrollment high schools.

But their comments were sandwiched by dissenting views. A member of South Loop Elementary’s Local School Council argued that Chicago Public Schools has not established a clear process when it comes to shuttering an elementary and spending $10 million to replace it with a high school. “CPS scheduled this meeting at the same time as a capital budget meeting,” she complained.

She was followed by another South Loop parent who expressed concerns about potential overcrowding, the limited $10 million budget for the conversion, and the genesis of the project. “It’s a terrible way to start a new high school – on the ashes of a good elementary school,” the parent said.

The most persistent critique Thursday night was not about the decision to close NTA, but, rather, of the boundary line that would determine who gets guaranteed access and who doesn’t. The GAP, a diverse middle-class neighborhood bordered by 31st on the north, 35th on the South, King Drive to the east and LaSalle Street to the west, sits just outside the proposed boundary. A parade of GAP residents said they’ve been waiting for decades for a good option for their children but have been locked out in this iteration of the map. Children who live in the GAP would have “preference” status but would not be guaranteed access to seats.

“By not including our children into the guaranteed access high school boundaries – they are being excluded from high-quality options,” said Claudia Silva-Hernandez, the mother of two children, ages 5 and 7. “Our children deserve the peace of mind of a guaranteed-access option just like the children of South Loop, Chinatown, and Bridgeport.”

Leonard E. McGee, the president of the GAP Community Organization, said that tens of millions in tax-increment financing dollars – that is, money that the city collects on top of property tax revenues that is intended for economic development in places that need it most – originated from the neighborhood in the 1980s and went to help fund the construction of NTA. But not many of the area’s students got seats there.

Asked how he felt about the high school pitting community groups against each other, he paused. “If we’re all fighting for scraps, it must be a good scrap we’re fighting for.”

The meeting was run by Herald “Chip” Johnson, chief officer of CPS’ Office of Family and Community Engagement. He said that detailed notes from the meeting will be handed over to the office of CEO Janice Jackson. She will make a final recommendation to the Board of Education, which will put the plan up for a vote.

budget season

New budget gives CPS CEO Janice Jackson opportunity to play offense

PHOTO: Elaine Chen
Chicago Public Schools CEO Janice Jackson announced the district's $1 billion capital plan at Lázaro Cardenas Elementary School in Little Village.

Running Chicago’s schools might be the toughest tour of duty in town for a public sector CEO. There have been eight chiefs in a decade – to be fair, two were interims – who have wrangled with mounting debt, aging buildings, and high percentages of students who live in poverty.

Then there’ve been recurring scandals, corruption, and ethics violations. Since she was officially named to the top job in January, CEO Janice Jackson has had to clean up a series of her predecessors’ lapses, from a special education crisis that revealed families were counseled out of services to a sexual abuse investigation that spotlighted a decade of system failures at every level to protect students.

But with budget season underway, the former principal finally gets the chance to go on the offensive. The first operations budget of her tenure is a $5.98 billion plan that contains some good news for a change: 5 percent more money, courtesy of the state revamp of the school funding formula and a bump from local tax revenues. CPS plans to funnel $60 million more to schools than it did last school year, for a total of $3.1 billion. Put another way, it plans to spend $4,397 per student as a base rate — a 2 percent increase from the year prior.

CPS’ total budget comes out to $7.58 billion once you factor in long-term debt and an ambitious $1 billion capital plan that is the focus of a trio of public hearings Thursday night. When it comes to debt, the district owes $8.2 billion as of June 30, or nearly $3,000 per every Chicago resident.

“The district, without a doubt, is on firmer footing than it was 18 months ago, but they’re not out of woods yet,” said Bobby Otter, budget director for the Center for Tax and Budget Accountability. “When you look at the overall picture (the $7.58 budget), they’re still running a deficit. This is now the seventh year in a row they are running a deficit, and the amount of debt the district has, combined with the lack of reserves, leaves them with little flexibility.”

Earlier this week, standing in front of an audience of executives at a City Club of Chicago luncheon, Jackson acknowledged that it had been an “eventful” seven months and said she was ready to focus on strategies for moving the district forward. “I won’t be waiting for next shoe to drop or wasting time and resources waiting for next problem. I want to design a system to educate and protect children.”

“I’m not in crisis mode,” she added.

Here’s what that looks like in her first year when you just consider the numbers. The biggest line items of any operating budget are salaries, benefits and pensions: Taken all together, they consume 66 percent of CPS’ planned spending for the 2018-2019 school year. Rounding out much of the rest are contracts with vendors ($542.6 million, or 9 percent), such as the controversial janitorial deals with Aramark and SodexoMAGIC; charter expenditures ($749 million, or 13 percent); and spending on transportation, textbooks, equipment, and the like (12 percent).

A closer look at how some of those items are allocated offers a window into Jackson’s vision. The Board of Education is scheduled to vote on the plan July 25.

Investing in choice

Earlier this month, the district announced a nearly $1 billion capital plan, funded by bonds, that would support new schools, technology upgrades, and annexes at some of the district’s most popular campuses. The operating budget, meanwhile, accounts for the people and programs driving those projects. It proposes nearly doubling the staff, from 10 to 17, in the office that manages charters, contract programs, and the creation of new schools. It reestablishes a chief portfolio officer who reports directly to the CEO. And it adds expands access to International Baccalaureate programs and Early College STEM offerings. In a letter at the beginning of the 2019 Budget Book, Jackson said such expansions “move the district closer to our goal of having 50 percent of students earn at least one college or career credential before graduating high school.” 

Advocating for students

The budget seeds at least two new departments: a four-person Office of Equity charged with diversifying the teacher pipeline, among other roles, and a 20-person Title IX office that would investigate student abuse cases, including claims of student-on-student harassment.

Leaning into high schools

Fitting for a budget designed by a former high school principal – Jackson was running a high school before age 30 – the plan leans in to high schools, establishing $2 million to fund four new networks to oversee them. (That brings the total number of networks to 17; networks are mini-administrative departments that track school progress, assist with budgeting, and ensure policy and procedures are followed.) And it earmarks $75 million across three years for new science labs at neighborhood high schools. What’s more, it supports 10 additional career counselors to help campuses wrestle with a graduation mandate – set forth by Mayor Rahm Emanuel – that seniors have a post-secondary plan to graduate starting with the Class of 2020.

Throwing a lifeline to small schools

The budget also sets forth a $10 million “Small Schools Fund” to help schools with low enrollment retain teachers and offer after-school programs. It also earmarks an additional $5 million to help schools facing precipitous changes in enrollment, which can in turn lead to dramatic budget drops.   

Supporting modest staff increases

After a round of layoffs were announced in June, the budget plan adds at least 200 teachers. But the district would not provide a clear accounting of whom to Chalkbeat by publication time. Earlier this week, it announced plans to fund additional school social workers (160) and special education case managers (94).

The district plans to add positions for the upcoming 2018-2019 year.

As Chicago Teachers Union organizer and Cook County Commissioner candidate Brandon Johnson pointed out in an impromptu press conference earlier this week in front of district HQ, the budget is still “woefully short” on school psychologists, nurses, and counselors. And it doesn’t address the calls from parents to restore librarians and instructors in such subjects as art, music, physical education — positions that have experienced dramatic cuts since 2011. “What is proposed today still leaves us short of when (Mayor Emanuel) took office,” Johnson said. “The needs of our students must be met.”

Principal Elias Estrada, who oversees two North Side schools, Alcott Elementary and Alcott High School, said he was still figuring out how the additional staffing would work. He’s getting another social worker – but he oversees two campuses that sit three miles apart, so he figures he’ll have to divide the person’s time between campuses. Estrada asked the board at Monday’s budget hearing to help him understand the criteria it uses to determine which schools get extra staff or additional programs, like IB. “I need a counselor, a clerk, and an assistant principal,” he said; currently those positions also are shared between the elementary and the high school.

After the meeting, he said that schools might have gotten slightly bigger budgets this year, but the increase was consumed by rising salaries and he wasn’t able to add any positions. What’s more, his building needs repairs, but it didn’t get picked for any of the facilities upgrades in the $1 billion capital plan that accompanied the budget.

“What is the process?” he asked. “The need is everywhere.”

At two public hearings on Monday, fewer than a dozen speakers signed up to ask questions of the board, central office administrators, or Jackson.

To see if your school is getting one of the newly announced positions or any funding from the capital plan, type it in the search box below.