News Story

School Districts Insist They Need More Money to Educate Fewer Students

While advocates for more money for public schools say school districts are facing a financial crisis, one point they concede is underplayed: the districts claiming distress overwhelmingly have declining enrollments.

So, should a district that has fewer students to teach each year receive more money?

While districts with as differing demographics as Alpena and Detroit and Ashley and Flint ran deficits, they shared one common characteristic — declining enrollment. In fact, 39 of the 47 conventional public schools in deficit in 2012-13 had declining enrollments from 2008-09 to 2012-13.

The state has increased overall state funding to K-12 education from $12.9 billion in 2012-13 to $13.4 billion in 2013-14. Federal dollars also increased in that last year from $1.701 billion to $1.764 billion. Yet, overall student enrollment in public schools dropped from 1,536,600 students to 1,530,500.

A majority of school funding in Michigan is tied to a per-pupil foundation allowance, which consists of local and state money that is used for general operations. When enrollment drops, so does this funding.

Yet, some advocates say they still need more money despite educating fewer students.

Livonia Superintendent Randy Liepa has been quoted by the statewide newspapers on why he thinks his district has less money than 10 years ago.

Liepa acknowledge that overall funding for state schools may have increased, but said in an email, " … school districts still may have less money to work with for their day-to-day operations."

Livonia's per-pupil amount from the state increased from $6,527 in 2010-11 to $7,542 in 2013-14. Excluding money used for the public school employees' retirement system, Livonia receives about $7,117 per pupil.

In an email, Liepa made his case for more money despite losing 1,100 students the past three years.

"Enrollment decline has hit our district (and many other districts in Michigan) hard. We cannot reduce expenditures at the same level we lose revenue," he said. "We have lost 1,100 students since 2010-11, which is about what we expected based on live births in our area. If we could reduce one teacher for every 30 students we lost — which we cannot, as an example, we have over 800 classrooms in our district, which means since 2010-11, we have lost an average of about 1.3 students per classroom — and if we estimated a savings of about $75,000 per teacher — probably a bit high — our savings would be, at best, $2.75 million. We lost well over $8 million in revenue."

Leon Drolet, chairman of the Michigan Taxpayers Alliance, doesn't buy into the argument that schools need more money when they are serving fewer students.

Drolet questioned whether Livonia couldn't reduce expenditures when it could predict enrollment was going to decline due to a reduction of live births in the area. Drolet said that signal had been out there a while.

"The public schools use public school math. The answer to every math problem they have is, 'Send me your money'," Drolet said. "That isn't the kind of math that happens in every other organization, whether it be a family or a business.

"The only place that can make that claim with a straight face is a public entity like a public school. Everyone else doesn't have a government that can take for them."

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

Commentary

VW Vote Shows 'Card Check' Still a Fraud

UAW loses when secret ballot is allowed

The recent defeat of a unionization effort by the UAW at a Volkswagen plant in Tennessee was not only a major setback for the union, but also for those pushing "card check" legislation.

Card check legislation, officially known as the "Employee Free Choice Act," was introduced in Congress in 2009 and would "authorize the National Labor Relations Board to certify a union . . . when a majority of employees voluntarily sign authorizations designating that union to represent them."

In other words, employees would "vote" by signing a card in the presence of a union representative, rather than voting in the normal democratic procedure using a secret ballot.

For the UAW vote in Chattanooga, the union claimed that more than half the workers at the assembly plant signed cards favoring the unionization. If the card check law had passed, the UAW would represent the workers. But when the votes were tallied from a secret ballot, the UAW lost 53 percent to 47 percent.

The Employee Free Choice Act legislation was a big deal a few years ago. Every major public- and private-sector union supported it and the Michigan House voted 66-40 for a resolution supporting the federal legislation.

But the 2009 federal card check bill went down, despite Democratic majorities in both chambers of Congress and the support of President Obama. Some senators backed off under pressure from constituents and other leaders on the left.

For talking so much about the importance of democracy, unions have shown they don't care much about one of its staples — the secret ballot. The VW vote adds to the examples where a union has claimed to obtain a majority of employee signatures but then lost when employees actually voted in private.

The card check idea should be put to rest for good.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.