Facts on district revenue and per-pupil spending

In past articles, we’ve shown you how much money we get and where it all goes.

Our community deserves an honest dialogue – without ideology and special interest talking points – about school funding that includes a fair assessment of needs, expenses, and revenue.

So let’s talk for a moment about where money comes from and under what circumstances we get more of it.

Where does revenue come from?

About a third of our operating budget comes from the State of Tennessee. They give us a certain amount of money per student and according to what kind of student. When more students enroll, our revenue from the state goes up, to the tune of about $3,200 per student.

The other two-thirds comes from the Metro Government, paid from county taxes and allocated by the Mayor’s Office and the Metro Council. The amount of money we get from the Metro Government is fixed. It is not tied to a per-student formula the way state money is.

This year our enrollment is up by nearly 1,800 students. About a third of our revenue (from the state) reflected that increase. The other two-thirds of our revenue (from the Metro Government) remained flat.

[NOTE: We received a $26 million increase in our operating budget from the 2012-13 school year to the 2013-14 school year. Of this $26 million, $12 million came from our own fund balance, $10 million came from the state and $4 million came from Metro Government.]

How does that money move around the district?

It’s a phrase people use a lot: per-pupil spending. Metro Schools spends around $9,100 per pupil in grades K-12. When a student moves from one school to another, the money theoretically follows him.

If the student leaves his neighborhood school and moves into a magnet school, he is moving from one district-operated school to another. The money attached to him stays in the same pot of district money and our per-pupil spending amount stays the same.

When a student leaves his neighborhood school – or a magnet school – for a charter school, the $9,100 moves to the charter management organization that runs the charter.

When a student leaves a district school for a private school, the money does not follow him to the private school. The district loses the state revenue associated with that student, but the private school does not get it. The funding from Metro Government is unchanged. The private school gets private money in the form of tuition.

The expenses of the neighborhood school don’t increase with every additional student and don’t decline with every student departure. The school is spending the same amount to keep its lights on and its hallways clean. The school still has teachers to pay and technology to buy and maintain.

Innovative practices that are designed to quickly improve achievement could face tough times, like extended learning time, model classrooms and certain kinds of school-level professional development.

What’s the solution?

Our strategic plan calls for more equitable use of resources, placing money where it’s needed most for fair service of students. We are already moving toward a model that puts more money directly in the hands of principals, allowing them to spend money in ways that will most directly benefit the unique needs of their students. That will help everyone decide best allocation of existing resources and ensure that money is spent in the most effective ways.

But what about revenue?

The answer will come from a community discussion of school finances. We must have an honest and open dialogue about revenue and expenses. The Board of Education began that conversation this fall, well in advance of the usual budget cycle.

This issue has wide-reaching effects, beyond just budgeting and buying textbooks. It can affect a school’s character and existence.

Let’s look at it at the individual school level. When a school is constantly threatened with drastic budget cuts or even closure, it has a more difficult time attracting students, which leads to further budget reductions.

It is a cycle that puts even more of a burden on teachers and principals to properly educate the students they already have.

School-based budgeting gives power to the principals

“Knowledge about the needs of students is greatest closest to the student… School leaders require the ability to make decisions based on their knowledge, expertise and professional discretion.”

In a world of principal autonomy and school-based decision making, what is left for the central organization of a modern school district? Where does it fit in, and what role does it have to play?

Here in Nashville, the role of central office is changing dramatically. The top-down management structure is disappearing. In its place is a knowledge and support organization designed to provide central services, study and share innovative practices, develop leaders and keep schools accountable. In fact, this change is already reflected in the district budget and in a pilot program working in 15 schools right now for school-based budgeting.

What is school-based budgeting, and what does that look like?

At these 15 schools, principals have direct control over $6,300 per student (on average), meaning they can spend that money as they see fit. That number is expected to increase over time. The rest of the money goes to central services like transportation, food services, human capital, textbooks, building services and more.

SEE the school’s individual budgets.

The idea is to bring powerful decision-making power right into the schools, where the most knowledge about individual students lives. Next year, this program is expected to expand to 50-60 schools and could go district-wide by 2015-16.

During that time the whole concept could go even further, putting 100% of per-pupil funding on school level budgets. That would greatly expand the level of flexibility and discretion given to each principal and ensure funding is distributed equitably based on individual student need. In that scenario, school leaders would “buy” central services from the district, and there would be certain non-negotiable services like the Board of Education.

This is a culture change, moving central office to a system of specialized support for schools and giving more decision-making power to principals.

Updated: Where does the money go?

UPDATE: Our comprehensive and award-winning budget book is now available for your review. At 228 pages, is contains all the financial facts you could want for fiscal year 2013-14.

DOWNLOAD the FY2013-14 Budget Book
(PDF – 33.8MB)

Contained within the budget book is a greatly expanded version of our original post, the 2012-13 School Year Expenditure Analysis. It gives an in-depth (50 page) look at all of the money spent from the Metro Schools operating budget and grants.

For the sake of convenience, we’ve broken it out into a separate document.

DOWNLOAD the SY2012-13 Budget Analysis
(PDF – 2.1MB)


PREVIOUSLY:

Let’s look at the facts of public education funding in Nashville.

Here is a breakdown of the 2012-13 operating budget:

  • $714 million – 2012-13 District Operating Budget
  • $441 million – Amount sent directly to district-run schools
  • $28.2 million  – Amount sent to charter schools
  • $163.3 – million – Amount spent on school-specific operations and instructional support services like transportation, maintenance, custodial and grounds, IT
  • $41.4 million – Amount spent on Board of Education, Human Capital, Finance and Purchasing, instructional departments and other central support functions
  • $39.2 million – Amount spent on retiree benefits, pension and debt service

When those are added together, they give a great deal more context:

  • Including charter schools, nearly 66% of resources serve schools directly.
  • Including school specific services like transportation and maintenance, more than 88% of MNPS expenditures flow to schools to provide and support instruction.

In chart form:

Directly to District-run Schools $441,107,943 61.7% All school-based staff such as teachers, principals, counselors, librarians, bookkeepers, etc.
Centrally Managed, School-based Services $163,348,961 22.9% Transportation, maintenance, custodial, utilities, textbooks, and itinerant social workers, psychologists, and other
Central Services $41,458,693 5.8% Board, Superintendent, Finance, Purchasing, HR, Leadership & Learning Supervision, other centralized services (e.g., most of IT/data warehouse)
Obligations $39,252,805 5.5% Pension, retiree insurance, debt service
Charter Schools $28,240,250 4.0% Pass-through to charter schools
Other $1,032,606 0.1% Pass-through expenses
GRAND TOTAL $714,441,258 100%

How implementing Common Core State Standards has changed my classroom

by Cicely Woodard, 8th grade math & Honors Algebra I teacher at Rose Park Middle Magnet

Since implementing Common Core State Standards in my middle school mathematics classroom, my role as teacher has changed.  No longer am I the ultimate source of knowledge in the classroom.  Instead I am a facilitator of student-centered, student-led learning.  No longer am I helping students to choose the right answer.  Now I am helping them to develop deep understanding of mathematics that has meaning to their lives.  My expectations are high, and everyday my students are rising to meet those expectations.

The role of my students has changed as well.  In the past, my students were doing math activities just to master concepts.  Now they engage in high level math tasks that require them to think critically about mathematical ideas.  Before my students listened to me explain math concepts and gave some explanations to me.  Now they are participating in deep discussions with their peers in which they must formulate their own understandings, justify their thinking, and critique the reasoning of others.  At one time, my students focused on choosing the right answer on a multiple choice test.  Now they concentrate on learning math that is relevant to their everyday lives and communicating their understanding of that math.

My students are becoming effective communicators and courageous problem solvers who are not afraid to tackle rigorous math tasks.  They have a sincere desire to be successful.  When I see them, I see young people who are one step closer to being ready for life after high school.  They truly are becoming prepared for college and the workforce.  I attribute all of these positive changes to the implementation of Common Core State Standards in my classroom.

Learn more about Common Core State Standards & PARCC Testing:

Opinion Piece: Banning all virtual schools isn’t the answer

What practical effects would come from revoking the Tennessee Virtual Schools Act? For one thing, it might actually decrease accountability for online education.

That’s the conclusion of Dr. Kecia Ray, head of Learning Technology in Metro Schools. She gave her thoughts about all the talk of banning virtual schools this week in The Tennessean.

Public virtual schools have the same accountability standards as brick-and-mortar schools. Under the current system, underperforming virtual schools are at risk of state takeover or even closure. Revoking the Tennessee Virtual Schools Act would actually allow schools to circumvent accountability by operating as virtual programs, not schools, with student achievement results sent to the student’s zoned school. This is not the transparency most desire.

Dr. Ray also gives a possible alternative to this drastic measure at the end of the piece.

To read her full opinion column, visit Tennessean.com.

District-charter collaboration leads to transparency, high standards, & real opportunity

by Alan Coverstone, Executive Director of the Office of Innovation

In Nashville, when we first sat down to determine if it would be possible to build a collaborative relationship between our school district and charter school leaders, very few places had tried it. Just a short time later, our District-Charter Collaboration Compact was recognized as one of the first nine nationwide, and charter and district leaders have been building their cooperation ever since. We are learning a great deal with and from each other, and most of the lessons were made possible by the leaders who agreed to explore that first step.

We are fortunate the district leaders and charter leaders who helped develop the compact had the foresight to realize that unless we agreed on the outcomes we expect from our schools, we would never be able to work together effectively. Spending our time trying to show the data on our schools only in the most favorable light, whether in favor of charters or district schools, is a waste of time and contributes to misunderstanding and cynicism. Parents need to know objectively how schools are doing with all schools measured on the same balanced, objective criteria so their school choices will be informed through data.

Our District-Charter Collaboration Compact begins and ends with our shared commitment to high-performing schools for every student in Nashville regardless of whether that high performer is a charter, magnet, design center, enhanced option, or zoned school. Holding all schools to the highest possible standards is good for kids and making the information fair, useable and available for parents is too.

Nashville Public Schools Scorecard

We have taken an important step in that direction with the release of our new Scorecard comparison tool that allows parents to see the same measures for different schools side–by-side. With this information, visits to schools can be even more helpful as parents get to know the people in the building working hard to improve achievement by creating real opportunities for students.

 

Explore the Scorecard

Explore Your School Options

A letter to parents: So you’re a Focus School. What does that really mean, anyway?

UPDATE: The Tennessee Department of Education has awarded Focus School grants to Amqui, Carter Lawrence, and Ruby Major Elementary Schools, as well as Pearl-Cohn Entertainment Magnet High School. These grants are worth anywhere from $100,000-300,000 and will be used to help close achievement gaps at these schools.

To learn more about these grants, visit the DOE website.


Dear Parents,

When the Tennessee Department of Education released the list of “Focus Schools” with a few MNPS schools on it, we heard from parents right away. There was some confusion and more than a little concern. Focus is a new label with a new definition, and it’s not immediately clear what it means. Some assumed it was a replacement for the old label of a High Priority or “Failing” school.

That’s not the case. The state defines Focus Schools like this:

“The 10 percent of schools in the state with the largest achievement gaps between groups of students, such as racial and ethnic groups, students from economically disadvantaged backgrounds, students with disabilities and English-language learners.”

The achievement gap is a key concern of Tennessee’s new accountability system for schools and districts. MNPS wants to see all groups of students achieving at high levels, and we are making progress across the district.

Here’s what it can mean to be a Focus School:

  1. The school has high achieving students.
    The state’s own guidelines say, “Schools on the Focus list are not necessarily there because of low achievement. In fact, many showed excellent growth last year.” If your school saw big gains in all students – including those at the very top of the honor rolls – that’s a wonderful thing. But, it also means the gap between the top students and everyone else didn’t get any smaller. We need to increase all students’ achievement and close the achievement gap at the same time.
  2. The school is diverse.
    Our schools have many students with different backgrounds, different home lives, and different abilities, and they’re all held to the same standard. Some students have a great balance of support systems at home and at school to help. Some don’t. By giving schools this label, the state is asking that we “focus” part of our attention on these schools to increase achievement for all students of all abilities. That’s just what we’ll do.
  3. The school is eligible for additional financial help to close the gap.
    Again, from the state guidelines:

“Focus Schools will be eligible to apply for grants aimed at dramatically closing the achievement gap. Schools not awarded a competitive grant will be provided state resources to close their achievement gaps.”

The school labels under the new system are much more accurate and provide a fuller picture of a school than the old No Child Left Behind labels. The new labels place the focus on increasing academic performance for our schools’ highest achievers as well as on those who need the most help, so everyone achieves more.

Sincerely,

Your Metro School

ACT Now! Our plan to raise ACT scores across the district

Every high school student in Tennessee is required totake the ACT. Tennessee is one of just a handful of states with this requirement and while that is not always good for our public image – it perhaps puts statewide test scores below other states where only the best and brightest take the test – it is very good for our students. Some students who might not otherwise take the test are required to, giving them an additional college credential or even a HOPE scholarship.

We want all our high school students to score a bare minimum 21 on the ACT. Of course, we prepare them to reach much higher than that, but we set the minimum at 21 because that is when scholarships and financial aid to state schools are within reach. With a 21, many students can afford college.

This year’s ACT results for our district show we still have a long way to go, but we’re making progress.  In fact, we’ve advanced our scores at a faster rate than the rest of the state.

But it’s still not good enough. We need better results in a shorter amount of time. We need results like the ones at Hillwood High School.

In the short time since Hillwood principal Dr. Steve Chauncy started his ACT Now program, the percentage of his students scoring 21 or higher has risen nearly 10%. When you consider statewide gains are measured in tenths of a percent, that is a huge jump.

How did Hillwood do it? And how will Dr. Chauncy and the Hillwood team spread similar results district-wide?

  1. Practice, practice, practice
    Before students take the actual ACT in their junior year, they sit for up to six practice tests – one as freshmen, the PLAN test, two practice assessments as sophomores, and two as juniors. Those tests are as real as they come, often actual ACT exams from previous years given through a program called Learning Express. By the time they sit for the real thing, they know exactly what to expect.
  2. Targeted instruction
    Rather than teaching students how to take a test, data from these practice tests is used for targeted instruction in the classroom. Areas of need are identified for individual students, and lessons can be are tailored to those needs. That starts right away. Freshmen come into Hillwood carrying data from the EXPLORE test taken in middle school. That data is used to start building ACT college skills in freshmen seminar classes.
  3. Critical Thinking Classes
    All Hillwood sophomores take a Critical Thinking and Imaginative Writing course where they learn how to apply their knowledge to problem solving and real world scenarios. That helps work through tough questions like those on the ACT and the even tougher questions students will later address in college and in their careers.
  4. Adaptable Solutions for All Schools
    This program has been shared across the district to all zoned high schools. But not every high school is the same, so it is can be easily molded to fit a particular school’s needs, resources, and abilities. As schools find improvements, they will be incorporated into the ACT Now program so the district is in a cycle of continuous improvement.

Development for this program is far from over. We are going even deeper into the data, looking at individual questions on practice tests to identify the academic support students need and we are providing afterschool tutoring for juniors with support from HCA.

The program began at Hillwood in the fall of 2010 and is spreading so all our high schools see rapid growth and all students are college ready and eligible for scholarship dollars.

Rumor Control: Metro Says Student Can’t Slack Off With New Grading Policy – NewsChannel5.com

This piece from Aundrea Cline-Thomas at News Channel 5 sums up the new middle school grading policy pretty well.

Good grades used to be easier to come by.

“In the past maybe some of our grading practices inadvertently kind of made some grades a little bit invalid,” DuPont Hadley Middle School teacher Jennie Presson explained.

Assignments for extra credit would inflate the grades and could be a crutch especially for struggling students.

“Under the new policy students grades will be a really really accurate reflection of their level of understanding,” Presson added.

“It is a culture shift and we know it’s going to take some time,” Dr. Lora Hall, Associate Superintendent of Middle Schools said.

Full story:
Metro Says Student Can’t Slack Off With New Grading Policy – NewsChannel5.com | Nashville News, Weather & Sports.

It’s Official: Metro Nashville Public Schools rates “Intermediate” status

District meets seven of nine benchmarks; student achievement grows

Metro Nashville Public Schools showed growth in achievement among all subgroups of students last year, placing the district in intermediate status – the second highest accountability category. The State Department of Education earlier today released district-level status for all Tennessee districts, including for Metro Nashville Public Schools.

Under this new accountability framework, the top-performing districts are “Exemplary” while the bottom performing districts are in two “In Need of Improvement” categories; the remaining districts are in an intermediate category. Tennessee’s new accountability system replaces No Child Left Behind’s Annual Yearly Progress measures. Rather than expecting all districts to meet the same benchmarks year after year, the new system acknowledges that districts are starting from different places and rewards those that show the most growth. Under the new system, approximately 43% of districts were categorized as “In Need of Improvement” or “In Need of Subgroup Improvement.”

“These results show that thousands more of our students are performing at a higher level,” said Director of Schools Dr. Jesse Register. “Tennessee standards are among the highest in the country and this new accountability system is real, it is holding districts to standards that are difficult but attainable.

“The growth we have seen this year is the result of a lot of hard work, of making changes to instructional practice, providing more professional development and meeting our students’ diverse needs. We want to accelerate that growth at all levels and close achievement gaps.”

The accountability system, adopted after Tennessee secured a waiver from part of NCLB earlier this year, looks to districts to increase achievement levels for all students and reduce achievement gaps that exist between certain groups. Metro Schools serves approximately one-third of the state’s English Learner students, as well approximately 12,000 Students with Disabilities. The district also serves more than 56,000 economically disadvantaged students, which is about 71% of total enrollment for last year.

Metro Schools’ students made significant academic progress in the 2011-12 school year and the district met the majority of Tennessee’s academic achievement targets. In 2010, Tennessee adopted new academic performance standards that are among the most demanding in the nation. Metro Schools have shown steady improvement against these higher standards.

Grade 3-8 TCAP Tests
% proficient/advanced
  2010 2011 2012 
Reading/Language Arts 33.9% 38.9% 42.1% 
Math 25.9% 32.2% 38.4%
Science 36.2% 38.8%  44.5%
High School End of Course Exams
% proficient/advanced
  2010 2011  2012 
Algebra I 28.7% 37.6% 41.8%
English II 47.4% 46.6%  48.7% 

In addition, the district made impressive improvement at every grade level on the TCAP writing assessment with nine out of ten middle and high school students scoring competent or better.

Writing Assessment
Competent or Higher
  2010 2011  2012 
Grade 5  77% 77% 81% 
Grade 8 86% 86% 90%
Grade 11 90% 88%  91%

With this new system, Metro Schools met seven of nine benchmarks. The district showed improvement but narrowly missed the set benchmark for third grade reading/language arts. The district also missed in the graduation rate, the one calculation that has a one-year lag. The state has changed its calculation of graduation rate from a 5-year calculation to a 4-year calculation. Many students served by Metro Schools, such as English Learners or Students with Disabilities, require five years to graduate and are not included in the district’s overall graduation rate. Last year, Metro Schools’ graduation rate was 76.2%, down from 82.9% under the 5-year calculation. The 2012 graduation rate is not available.

Under Tennessee’s new accountability framework, the top-performing districts are exemplary while the bottom performing districts are in two in need of improvement categories; the remaining districts are in an intermediate category.

“I appreciate the support of our Board of Education as we transform our district. We knew test scores would be the last thing to change and we are pleased to see this growth,” said Register. “We must continue to improve in all categories. Reducing the achievement gap among student groups is our most significant challenge.”

Individual student reports are in transit to the schools where students are assigned for the 2012-13 school year. Each school will send the reports home to families. The State of Tennessee has not yet released school-level data.