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Proposal would hit local school budgets

Originally published 08:54 a.m., February 10, 2010
Updated 05:15 p.m., February 12, 2010

RICHMOND—All three local public school divisions would see further reductions in state funding next year if Gov. Bob McDonnell’s proposal to update the index that determines how much state money each district receives is approved by the General Assembly.

The local composite index, which is normally readjusted every two years to reflect economic conditions, is set for adjustment this year. However, former Gov. Tim Kaine recommended freezing the index for one year — a move that would save the state $29 million and prevent 97 of the state’s school divisions from losing additional state money.

McDonnell announced Monday that he would not support freezing the index.

“Every time the index is readjusted some school systems gain funding, while others receive less,” McDonnell said. “This has occurred for nearly 40 years, and local officials understand the routine and objective biennial implementation of the index.”

A higher score on the index means fewer state dollars. Approximately 30 school divisions, primarily in Northern Virginia, stand to collectively gain $128 million in additional state funding if the index is updated, while 97 of the state’s school districts would lose funding.

Locally, Isle of Wight County Public Schools stands to lose nearly $800,000 in funding. Southampton County would lose about $638,000. Figures were not immediately available for Franklin.

“For nearly 40 years, the Local Composite Index has been an impartial means by which to determine state and local responsibility for education funding in Virginia,” McDonnell said. “The application of this index has always been done in an objective manner, using the most recent fiscal data to most fairly apportion state resources,” McDonnell said.

Local school officials weren’t surprised by the move.

“This matches what we were predicting,” said Katherine Goff, a spokeswoman for Isle of Wight County Public Schools. “We were prepared for this.”

The division stands to lose nearly $800,000 in state funding next year if the index is updated, according to Goff.

Isle of Wight Schools Superintendent Dr. Michael McPherson presented the school board with a list of proposals to close the division’s multimillion-dollar anticipated budget gap last month. The proposals assumed that the composite index would be adjusted as scheduled.

“He had a few things that he had highlighted that would be moved back in the event that the freeze did take place,” Goff said. “None of that would be able to be placed back into the budget at this time.”

Charles Turner, superintendent of Southampton County Public Schools, said that the division would lose about $638,000 next year if the index were updated — on top of more than $1.4 million in already anticipated state cuts.

“It will have a devastating effect on us here in Southampton County Schools,” he said. “The smaller school divisions ultimately are impacted very severely when something of this nature occurs.”

Franklin City Schools Superintendent Dr. Michelle Belle said the division was already expecting “major decreases” from the state.

“When you talk about the composite index going up, it means less state money for us, but we’re anticipating that anyway,” she said.

Belle said the school division is waiting to see what “the bottom line” will be once the final budget is approved. She didn’t have an estimate of how much state funding the school division would lose if the composite index were updated.

“The thing we’re waiting on is his actual budget,” she said.

Local school officials say that they have been in contact with state delegates and senators from the region.

“School divisions in the Hampton Roads region are working strategically to work with local delegations to convey the local impact of this action,” Turner said.

To cover the $29 million price tag of updating the index, McDonnell will recommend to the General Assembly the transfer of $13 million from Literary Fund balances; $8 million through the use of available balances in the Health Insurance Fund to reduce state health insurance premiums; $5.2 million will be found in Real ID savings and an available $3 million will be captured in additional Non-General Fund balances.

McDonnell’s composite index proposal, along with other budget recommendations, must be approved by the General Assembly.

“We’re just watching and developing our budget based on the best practices we can, while we anticipate receiving more information from the state and the localities about what the funding will be,” Goff said.

On the Senate floor Friday, Sen. Louise Lucas, D-Portsmouth, discussed Gov. Bob McDonnell's support for recalculation of the Local Composite Index (LCI). The LCI determines the amount of state support for local school districts, and its recalculation will give more money to some localities, while taking $115 million from 97 localities.

Her remarks are now available online at Youtube.


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Comments

Posted by bluefishgertie (anonymous) on February 10, 2010 at 10:10 a.m. (Suggest removal)

Thank goodness Franklin's school budget fix will be easier than most other districts across the Commonwealth. Simply cut the waste and reduce the administrative staff of both the School Board's and the Superintendent's office. Their staffing is bloated. Just look at the budget, loaded with items that have not even the remotest relationship to any educational requirement. Education is not a scared cow anymore. The educational system deserves the same scrutiny that all of our other taxpayer funded programs should be receiving.

Posted by MyHometown (anonymous) on February 10, 2010 at 12:52 p.m. (Suggest removal)

Can anyone explain this? What is this index and how is it determined? If the schools in northern VA stand to gain then it seems to reason that those that already have great educational funding will be expanded and those that struggle with resources will be pushed further back. Is it based on population, student success rate? Speaking of student success rate, where is our lottery money? I have not heard tell of one cent of lottery money going to the schools when they achieved AYP or SOL Accreditation. Weren’t these schools supposed to be rewarded for their efforts? The rewards that I am aware of came in the form of sign on bonuses at schools that were not getting the job done in an attempt to attract higher qualified teachers.

Are there areas that can be cut? Certainly, but the area schools have far surpassed schools in other areas with similar demographics and income levels. This has been accomplished with the dedication and hard work of the educators and administrators in our area. This issue is not about staff salaries, which by the way have been frozen in the county for the past two years. It is about providing a quality education for the next generation, something anyone in the educational field holds as a common goal. If these cuts are indeed realized we will have to take a close look at staffing and extra programs that are offered to small groups. I would hate to see us lose some of these programs though. Our gifted students should not be bridled with limited educational opportunities just because they don’t go to school in NOVA nor should our children with learning disabilities not be afforded classroom settings and resources that give them the best opportunity to succeed.

Posted by mom23cutekidz (anonymous) on February 10, 2010 at 3:54 p.m. (Suggest removal)

Trying to put aside partisanship, please tell me what good this move would make? When we are looking at a budget crisis for the state and local governments, let's spend $29 million updating the composite index, which is not a necessity. It surprises me that Bob McDonnell has the nerve to visit this area to discuss the Mill closure, as if he feels for this community, and then turns around to devastate it more with cuts to our local education. As if families here don't have enough to worry about, now we have to worry more about the education our children will receive.

It would surprise me if bluefishgertie had children in local public schools. It is my experience that those who are most critical of public education either do not have children in the public school system or send their children to private schools. To those people I say, if the community is not going to support public education, then DO NOT question why gang activity and drug use increases, or you can't find a business with good customer service, or your house/car/business gets broken into, and that crime rates in general rise at an alarming rate, because the public schools have been charged with educating AND parenting many children today. Which is another reason it is so frustrating to hear talks about budget cuts and educators doing their job. If most teachers were only responsible for teaching and all parents/communities did their jobs, public education would be a whole different world. Instead, everyone expects the schools to fix everything and do it on a shoestring budget.

If we are to have a balanced budget in this state, lets look at all the pet projects and government waste before we cut money to education. I encourage all citizens who care anything about our schools to write your legislators and attend your city/county budget meetings to show that funding to our schools is VERY important to us, because I can assure you, those that don't have any stake or interest in "their money" going to education are usually there and very vocal about their opinions! Thank you Southampton and Isle of Wight Counties, and the City of Franklin teachers for all you do that goes above and beyond, personally and financially (out of their own pockets), to educate and mentor the children of our area!

Posted by bluefishgertie (anonymous) on February 10, 2010 at 5:13 p.m. (Suggest removal)

If I have children in the local school system is not the question. My concern, as a taxpayer is simply are we using our resources in the most effective way. Honestly, have you ever heard a school official comment on how they have maximised the monies that we have been allocated. I constantly hear the hue and cry for more educational funding. That always puzzles me, as I have never heard what programs would be added or enhanced. Enlighten me, please.

Posted by davefrklnva (anonymous) on February 10, 2010 at 6:11 p.m. (Suggest removal)

Start with the salaries at the top and work your way down. (But leave teacher pay alone). don't forget the govt issued cars, even though they make enough to pay for a personal car on their own like the rest of us. The we'll talk.

Posted by MyHometown (anonymous) on February 10, 2010 at 8:33 p.m. (Suggest removal)

Ibdeadude
Not sure what your point was but teachers in a public school are asked to be much more than a teacher. They have to teach all of the children that are dropped off each morning. Teaching a child is more than just spouting off subject matter and then testing for understanding. Our schools didn’t get accredited by just teaching. Teachers have to determine which of the various learning styles the children are either born with or conditioned to. They then have to somehow get around, or through, all of the issues that come with broken homes, child abuse and neglect, substance abuse, etc on top of the normal distractions and personality changes that come with the growth stages of adolescence.

As for the trained social workers, they can’t do their job because parents don’t admit or fail to recognize that their child needs help. If you think about it, the teaching staff spends much more time interacting with a school age child than many of their parents.

As for taxation, the article doesn’t talk about new taxes but rather shifting funds to school systems that are already far ahead of the others. The school systems that are going to receive additional funding already have the best technological advances in education, latest in teaching aids, and are drawing students primarily from college educated parents that stress education. Local schools, those that will be losing funds, have been able to acquire some of the latest teaching aids using grant money but are struggling to maintain much of the equipment on hand.

Whether we have children in the local school system or not we all have to be supportive of our schools. A good education is a major tool in treating/preventing some of the social issues listed by those commenting on this article. For many children the seven or so hours they spend in school each day is the most stability they experience. It might be the only positive interaction some of them have with adults and peer groups.

Posted by shadow03 (anonymous) on February 10, 2010 at 9:08 p.m. (Suggest removal)

Well said MyHometown!

Posted by DBenton (D Benton) on February 10, 2010 at 11:54 p.m. (Suggest removal)

The composite index is used in VA to compare / contrast the ABILITY of each locality within the state to pay for local public education. School divisions in our rural area tend to have very low composite indexes as compared to other areas of VA. Franklin and Southampton have composite indexes in the range of 0.30, meaning the State feels the locality SHOULD be able to cover 30% of the total cost of local public education, while the state funds the remaining 70%. Conversely, areas like Northern VA have much higher composite indexes like 0.70, meaning Fairfax itself pays 70% of the cost to educate it's children, and VA kicks in just 30% of the "per pupil cost".
The composite index is designed to insure that a high quality public education is made available throughout the entire State because poorer locales are not asked to fund as much money per child (the State picks up the tab for ~70% of the total cost), while more prosperous areas of the State are asked to LOCALLY fund 70 or 80% of the total cost to educate children in their school districts. Thus, the composite index is a noble effort by VA to "level the playing field", if you will, between Fairfax and Franklin in terms of what is made available to students.
The over-arching problem is that overall State funding for K-12 education has been slipping for quite a while when compared to the true cost of providing the mandated services. The State continues to push more and more of the responsibility of paying for K-12 downstream to the individual cities and counties by not fully funding education mandates at the State level. The state legislature and DOE put new requirements on local school divisions statewide EVERY year, but too often provide little, or NO, funding to meet the newly prescribed law. It is left up to the local city council and board of supervisors to find a way to cover the additional cost of the newly mandated item out of their local tax collections.
Adjusting the composite index is normal, and should be done regularly in my opinion. The REAL problem is that the size of the State funded piece of the education pie is shrinking.

Posted by m992fs (anonymous) on February 11, 2010 at 12:19 a.m. (Suggest removal)

goverment needs to stop giving hand outs plain and simple no free food childcare bus rides meals at the mlk center mabee the kids will work hard so they can get somewere in life . If you always get a handout why would you want to change, school is not a daycare the kids need parents to teach them the other 16 hours their not in school

Posted by IPBuddy (anonymous) on February 11, 2010 at 1:19 a.m. (Suggest removal)

The schools would be fine if there were leaders who knew how to run a business, manage finances and get the most bang out of a buck. Cuts should not affect the teachers who are in the classroom teaching. The first thing we always hear from the leaders is that we have to cut teachers. Why is that? Because it naturally gets people rouled up and they do not want to cut their dynasy i.e. administration. Southampton County is a fine example. From what I understand, there are over 40 people in the school board office-many times what it was just a few years ago. In many cases, the salaries are astronomical and their duties minimal. Mr. Turner told his people last year there might not be raises but he'd take care of their jobs. What he should do is get rid of many of their jobs! Take care of our teachers and the taxpayers-not yourself and your expensive dynasty! How many people were there ten years ago? Twenty years ago? What was the enrollment then versus now? What salaries do these education bureaucrats draw? If some are so critical, why were some able to be moved to serve elsewhere when there was an actual need in a school? How much of the total employee costs is other than teachers? It would be a great public service if the TN would investigate this in each of our local jurisdictions. And don't just take their word for it-demand proof and verify with independent sources what they tell you. Education costs continue to increase but it is not because of our teachers who teach. There are two groups getting screwed- the teachers and the taxpayers.

Posted by sweetwater (anonymous) on February 11, 2010 at 1:36 a.m. (Suggest removal)

Three...you forgot the students.

Posted by SilverBullet (anonymous) on February 11, 2010 at 7:46 a.m. (Suggest removal)

IPBuddy,

Just wondering. Did you experiences any of those same conditions in your place of employment?

Small businesses have been cutting their budgets and staff for years. The only good jobs left are government jobs, and they perpetuate themselves with new programs. It will eventually all come to a head regardless of the composite index as both state and local governments budgets either shrink or are funded by more funny money; ie DEBT.

Posted by bluefishgertie (anonymous) on February 11, 2010 at 9:45 a.m. (Suggest removal)

Right on IPBuddy. My Hometown, you know very well what ibdeaddude said. Please do not insult us, by using this tired old ploy of distraction. There's never seems to be a shortage of Chicken Little's out there. Those who continually cry, scream, screech and kick, whenever possible school funding cuts are mentioned. To them performance and good management of the system means very little,other than keeping the bureaucracy well funded and intact. Keep allocating and if all else fails, allocate more. What educational programs are in danger of being eliminated? What educational programs would be added if additional funding was provided and why. Easy questions, why no answers? Just what do all those central office folks do that is so essential to the daily functioning of the school system? I am trying very hard to understand your position. Yes, the system has forgotten the students. How many of our teachers are not certified? How many are of our teachers have been trained to be social workers? Thirteen million dollars is a very generous sum of money to fund a school system of barely 1300 students.

Posted by Mike61 (anonymous) on February 11, 2010 at 11:47 a.m. (Suggest removal)

I.O.W County overspent their budget last year by 33%. What were they spending on? Land.....some of which they had owned and sold, then decided to re-purchase it again at an inflated rate. Reason I say this is because the money they spent was Taxpayer money. The same Taxpayer money that would be funding our schools if they had it now. Sure, who knew I.P. was going to close, I will give them that but why is the County trying to corner the market in Real Estate? I think it is because of this impending Intermodal Park the Port Authority plans to eventually build on Rt.460. So the County tries to buy up every acre they can so the County can sell the property at a profit. Smart? Sure it is but do you think for one minute whenever that happens my tax bill is going to go down? NO. Something else......before the County purchased all this property, say John Doe owned it, He was paying taxes on it, now the County owns it, who is paying taxes on this property now? The County!!! Not only did they spend big bucks they didn't need to, but they just created a huge debt the Taxpayer will have to pony up for, the Real Estate Taxes on this same land. Is my County in the Real Estate Business or is my County supposed to be providing Responsible Government for its citizens? I don't understand....I bet they wish they had the 133 MILLION DOLLARS back that they spent on property last year. Perhaps then we could keep Windsor Middle School open Huh?

Posted by MyHometown (anonymous) on February 11, 2010 at 3:21 p.m. (Suggest removal)

Thanks DBenton for your explanation on indexing. I am still a little confused though about how money appropriated for the 30 schools in NOVA would increase. If I understood you correctly that it is based on a districts ability to support itself then it seems that the cuts should be equal throughout the state assuming that everything else stays constant other than state funding.

Posted by MyHometown (anonymous) on February 11, 2010 at 3:27 p.m. (Suggest removal)

bluefishgertie
Who is distracting? I stated very clearly my thoughts/opinions on the matter. I didn’t write anything about more money. And I don’t know which school system you are talking about with 1300 students. I also don’t know where you get your budget information. The school district I just looked up, Southampton County Schools, has right at 3000 students not counting the programs being run out of the old Hunterdale building. I did find a budget proposal for 2009. SoCo Schools requested 25 million, 1.8 million less than the previous year. (You stated earlier that you had no knowledge of a school division ever reducing it’s own budget.) That is about 3.5 mil for each school. If you continue to break that number down per category, students, maintenance, upkeep, teaching supplies, etc. you will see it dissipate at a rapid rate. What is distracting are people that write in screaming about a greedy system and have lots of questions and misinformation. I research my subjects before I get on here and comment on anything. You asked what programs are being looked at? That will not happen until the budget for next year is known. And believe me, I am watching. I have children in the system and I cannot afford to send them to an academy so I am watching closely to see what is going to happen to our school systems. I also don’t know how many people are doing what jobs at the school board. I do know that they try as best they can to provide the resources the schools need. That is why they have been fully accredited at the high school for 7-8 years, have met AYP, and have had full SACS accreditation for 51 years.

In referencing the previous post, there were so many things in there that I was not sure what the ultimate goal was. It was obvious that the poster was not satisfied with the status quo but there was a lot left open. Maybe you missed the part where I stated, in my first post, that there are areas that can be cut/modified while you were looking for someone to lash out at. I have stated before and will repeat for you now, every agency takes what they can while the going is good and the school systems are no different. Now that financing is being crunched they will do what any other system would do when faced with the same. They will look for ways to reduce cost and merge programs. The state is reducing funding and they have to because the money is not there. The schools will run on a leaner budget just like everyone else. I am proud of the work our school board has done in the past to cut cost without cutting corners. The state is cutting the budget but they are still going to hold the schools to the same standards they have in the past. We have to still educate the population and pointing fingers at each other and shouting on commentary doesn’t get it done.

Posted by bluefishgertie (anonymous) on February 11, 2010 at 4:17 p.m. (Suggest removal)

MyHometown, I am referring to the City of Franklin School System. Oh, I did notice your $10,000.00 or more sign at the new Hunterdale school has not worked in several weeks. Why was that electronic sign positioned in the wrong direction?

Posted by chuck (anonymous) on February 11, 2010 at 4:18 p.m. (Suggest removal)

If I'm reading Gov. McDonnell's press release correctly, the $29 million is not the cost of updating the index -- it is the additional money the state would be sending the localities over and above what they would have received if the index was frozen.

Also, it is interesting to note that in January McDonnell affirmed Kaine's index freeze for 2011. As expected, the northern Virginia localities were furious. Apparently McDonnell had a change of mind in early February, and withdrew his support for the freeze.

Home assessments are a critical component of the index. Northern Virginia assessments have been hit particularly hard over the past year or so, while the company that does our local assessments maintains that values here have held steady. It would seem reasonable to believe that if our local values correctly reflected foreclosures, conversions to rentals, etc., perhaps our local composite indices would drop too.

Posted by DBenton (D Benton) on February 11, 2010 at 6:45 p.m. (Suggest removal)

The composite index is complicated to explain. The easiest way to describe it is as a "measuring stick" of each locality's ability to pay for local public education REFERENCED against all other localities in the State. From the DOE website:

The Composite Index determines a school division’s ability to pay education costs fundamental to the commonwealth’s Standards of Quality (SOQ). The Composite Index is calculated using three indicators of a locality’s ability-to-pay:

True value of real property (weighted 50 percent)
Adjusted gross income (weighted 40 percent)
Taxable retail sales (weighted 10 percent)
Each locality’s index is adjusted to maintain an overall statewide local share of 45 percent and an overall state share of 55 percent.

Now, back to my personal comments. For 2008-2010 biennium, Franklin City has a Composite Index of .2686 (we pay 26.86% locally, state sends 73.14% of the SOQ requirement, but that SOQ amount "per student" is a TOTALLY understated figure relative to the true local cost of providing mandated services - my editorial comment).
In the same biennium, SoCo has a composite index of .2578, and Isle of Wight is at .3697. For comparison, Fairfax County has a Composite Index of .7650. All of these figures are computed on a Base Year of 2005.

The recently updated composite index is computed on a Base Year of 2007, and reflects changes that have occurred around the State. Fairfax County now stands at .7126, while Franklin rises to .3047. SoCo rises to .2896, and Isle of Wight rises to .3926.
What the State is saying in re-adjusting the composite index is that we have become a little bit MORE able to pay locally for public education, while Fairfax County has become slightly LESS able to pay. Unpalatable for some locally, but locally we would get a slightly lesser share of the State pie as a whole.

All of this can be confusing. Again, the State is trying to fairly and effectively distribute our state tax dollars in a way that provides a baseline level of education in every locality across the entire State, regardless of a locality's ability to pay. The reasoning is that children in all classrooms across the State should be afforded the same kinds of educational opportunities.

Posted by MyHometown (anonymous) on February 12, 2010 at 7:04 p.m. (Suggest removal)

Thanks DBenton. That cleared it up for me.

Posted by IvorVeteran (anonymous) on February 13, 2010 at 8:38 a.m. (Suggest removal)

And so, according to DBentons provided formula (true value of real property), the bogus appraisals we keep suffering comes back to bite us in the tush! How is it possible that this region is now MORE able to pay a greater share than ever before?!

Posted by MyHometown (anonymous) on February 13, 2010 at 9:30 a.m. (Suggest removal)

I hear you Ferguson. I will not be convinced that our properties are more valuable than those in northern VA. I guess swampland is in high demand these days.

Posted by IvorVeteran (anonymous) on February 13, 2010 at 10:25 a.m. (Suggest removal)

This is why so many of our founders were willing to fight a WAR with their government (twice)---they were fed up with being milked for mess they had no interest in supporting, and were tired of being ignored when their complaints were squashed in the mud. They spoke specifically about NOT trusting the government, since the POWER corrupts them. The good people who keep paying for all this stuff have yet to get there in great enough numbers, but, keep on playing around with them . . . . .

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