Over the past several years, there has been a very significant shift in the fiscal burden of school funding from the state to c

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Please Note: Although this information was compiled a year ago, it is still applicable today, especially in light of possible school closings.

12/12/06

Redefining the Problem of Declining Enrollment

A position paper for the Massachusetts Association of Regional Schools

Draft version with excerpts for Heath Community informational meeting

Ken Rocke krocke.massed@rcn.com

Introduction

The Mohawk Regional School District is in the midst of trying to solve the ongoing budget crisis. Over the past few months several committees made up of dedicated volunteers have spent many a night discussing various facets of this problem. The recommended solution that came out of these meetings is to close three elementary schools (Colrain, Heath, Ashfield) over three years. A calculation has taken place that projects a five million dollar savings over five years. There are still many factors that have been identified but not quantified that knowingly erode these savings.

It is the position of the Heath Board of Selectmen and Finance Committee that the savings needs to be recalculated to show the whole picture. The assumptions that we have before us do not warrant the closing of any schools and that district should shift it’s focus away from closing schools to working with the legislature to secure adequate funding from the State.

Below are facts and information that support our position.

Over the past several years, there has been a significant transfer in the burden of school funding from the state to cities and towns. Statewide, Chapter 70 Aid, as a percentage of Actual Net School Spending (ANSS), has fallen from 40.7% in FY01 to 36.4% in FY06. Had FY01 funding levels been maintained throughout this 5-year period, local towns and regions would have seen property tax relief of almost one billion dollars.

This mandated shift of funding of schools from the state to cities and towns has gone largely unnoted outside of professional circles, perhaps due to the complexity of the Chapter 70 Formula. The result has been widespread and devastating: increased fees for basic educational services in many schools; cuts in essential programs and services to students; and constant and unremitting pressure on local budgets.

Some districts have been hit harder than others. By any measure, state support for Mohawk has declined precipitously from FY01 through FY06. Mohawk’s share of ANSS has risen from 43.2% to 58.4% in just five years. This has resulted in a total increase in local school assessments of over $5,700,000, over and above increases in Mohawk’s ‘share’ of the budget. Had Chapter 70 Aid been held constant over the past five years, there would be no budget crisis in Mohawk schools: no one would be talking of closing schools; principals would not be doing double-duty at more than one school; high school students would be getting the elective coursework they need for a complete education.

This trend is continuing, and accelerating. Driven by increases in fixed costs (health insurance, utilities) an FY08 level services budget will result in an increase of about 6% in the Mohawk District budget, which will then result in assessments to most towns in the 10% to 14% range. These increases are unmanageable for most towns, and the likely result is a defeated budget. A district which has already made significant cuts in core services to students will need to cut more.

This ongoing budget crisis in the Mohawk District is a direct result of the overall decline in state funding for public schools. It is exacerbated by two additional factors confined to a few districts: a decline in enrollment throughout the district, combined with the effects of a Chapter 70 Formula that makes no allowance for the costs unique to rural towns and districts. Any proposed solution must address all three factors if it is to have lasting benefit.

For example, closing schools (or school consolidation) is a short-term strategy that will at best delay the inevitable (cuts in other services to students) unless the state funding shortfall is addressed. Although rural districts with declining enrollment such as Mohawk are perhaps the first to feel the pinch, Mohawk may simply be the ‘canary in the coal mine’. Where Mohawk goes, other districts will soon follow.

Below are a few charts that graphically show the financial picture.

Source: Mass Department of Education Website http://finance1.doe.mass.edu/schfin/Chapter70/profile.aspx

Appendix I

A. Findings re: State funding to Mohawk, FY01 – FY06

Chapter 70 Aid for Mohawk has declined dramatically between FY01 and FY06. Actual Net School Spending (ANSS) has increased significantly during the same period. The combined burden of increased costs and decreased aid fell directly on district towns. 168% of cost increases have been met by Mohawk towns.

1. Actual Net School Spending increased by $1,745,278 (+13.8%)

· FY01 $12,602,961

· FY06 $14,348,239

2. Chapter 70 Aid decreased by $1,180,464 (-16.5%)

· FY01 $7,152,548

· FY06 $5,972,084

3. Chapter 70 Aid per student (FTE) remained essentially flat

· FY01 $4434 per student

· FY06 $4414 per student

4. Local share of ANSS increased by $2,925,742 (+53.7%)

· FY01 $5,450,413

· FY06 $8,376,155

B. Findings re: Statewide funding of education, FY01 – FY06

Growth in Actual Net School Spending outpaced growth in Chapter 70 Aid. 18% of cost increase was met by increased state aid, 82% by increased local spending.

1. Actual Net School Spending increased by $1,692,003,979 (+23%)

· FY01 $7,344,378,526

· FY06 $9,036,382,505

2. Chapter 70 Aid increased by $298,637,780 (+9.9%)

· FY01 $2,989,965,282

· FY06 $3,288,603,062

3. Chapter 70 aid per student (FTE) has increased only $287 in five years

· FY01 $3155 per student

· FY06 $3442 per student

4. Local share of ANSS increased by $1,393,366,199 (+32%)

· FY01 $4,354,413,244

· FY06 $5,747,779,443