NH Center for School Reform Newsletter Update #21

Please direct inquiries to Susan Hollins (susan@nhschoolreform.org)

NATIONAL CHARTER SCHOOL WEEK

Last week was national charter school week and there was an outpouring of proclamations, studies, papers, postings, and legislative actions. NH School Reform is hosting a luncheon buffet for legislators May 25th…downtown Concord. Below please find our pick of interesting reads.

A Presidential Proclamation for Charter Schools
From the White House.
Charter schools were founded on principles of innovation, accountability, and higher achievement.

Maryland Ruling: Charter School Students Entitled to Equal Funding
From Baltimore Sun
Maryland’s State Board of Education provided leadership to assure equal funding for all students, whether in district or charter public schools.

PA Senators Advancing Direct Pay for Charter School
From The Patriot News
Why? More efficient; less friction (and better for district budgets & charter schools). New Hampshire surely needs a direct-pay for state funding provision. The highest-rated charter school laws have a direct pay provision for state-authorized schools. Currently PA has a diversion provision so the state redirects funds, but it is complex and delays payment.

Tennessee Senators Advance $300/student Facility Stipend
From the Nashville City Paper
Why? It’s needed. A facility stipend increases the ability of charter schools to borrow and lease because it is a guaranteed revenue stream—even if small—targeted for facility costs. NH schools need this to have better facility options.

Testing the Constitutionality of Charter Schools
From the Center for Education Reform
Yes, in state after state after state, charter public schools have met legal challenges.

New York’s Commissioner Urges More Charter School
From the New York Post.
Why? Because charter public schools are working well, students are thriving, and charter schools are revitalizing city education, bringing value and parents to cities.

Funding Charter Schools in New Hampshire
From NH Center for School Reform
We show the 2 models for charter school funding (for local- and state-authorized schools). And we calculate the costs to offer budget guidance for state-authorized schools that are not single SAU schools.

Take a Virtual Tour of US Charter Schools
From Center for Education Reform
Over 2000 of the 3400 charter schools have web sites. Go look at schools all over the country. There are many high schools for science and arts; many, many career academies and schools for at-risk students. Be inspired by the possibilities.

NH EDUCATION COSTS: 2 BILLION & RISING

Almost every NH community is growing. NH school districts are beginning to study the benefit of chartered public schools, intended to operate at 80% of total costs while also being accountable for high achievement and enabling public schools raise their own achievement.

Taxpayers spent 2 BILLION+ on public education last year. In addition, the State education budget was almost 100 million. Education costs just go up and up and up for communities and the State. Districts spent almost $400 million on special education. The State’s facility aid program has increased from $20 to $38 million in just a couple of years with many projects related to growth—adding students. Why not explore growing through small, choice schools, using existing community buildings for 20% less per student and no facility bonding demand? Diversify the community’s education portfolio. High performing, lower-cost schools are good for taxpayers AND students.

Department of Education datashows average elementary costs at $8,742 per student last year. Add in transportation and building bond costs and the “total” average elementary cost was $9,307.78 last year. That’s just the “average.” Not including transportation, food service, and capital costs, Waterville Valley’s elementary average student cost was $21,328 last year; Newington, $17,417; & Harrisville, $14,703. Depending on where you live, $7,200 per elementary student (80% of total statewide average) is a bargain!

For high schools, the statewide average “total” cost of per pupil education last year was $10,083.55. at 80%, the per pupil cost would be $8,070. Leaving out transportation, food service, and capital costs, high school averages last year were: Claremont, $10,552; Oyster River, $10,476; Moultonborough, $14,404; and Winchester, $16,029. Our lowest district high school costs were Farmington, at $6,102; Manchester, $6,221; and Franklin, $6,595.

The state has an opportunity this year to assure the charter school pilot program creates successful demonstration charter schools for districts. If 80% of parents are requesting more school choices, and 80% of taxpayers support lower cost schools, why not embrace and fund the 80% funding model and encourage more districts to take a serious look. The expenditure will likely repay itself many times over if new forms of lower cost, high achievement, choice schools catch on, as they have in other states.

Reasons to assure charter school funding in NH’s state budget:

Most NH communities are growing. More students = more space = more State Aid for facility additions. State facility aid increased from 20 to 38 million. A new polled study finds that nearly 80% of the public supports choice schools. Chartered choice schools use available buildings. (See our 2/22/ Newsletter: Bringing Old Buildings Back to Life)

The federal government has a 37 million Credit Enhancement Program for charter school facility projects (Go to our April 11^th Newsletter: (Millions for Charter School Facilities).

70%-80% of our school budgets are personnel costs—salaries and benefits. Research says we pay for factors (like additional degrees) unrelated to teacher quality. Our districts have almost no ability to change the track and step compensation model, but charter schools can demonstrate other compensation models. (See our December 10^th newsletter: Salaries and Compensation Study).

Parents want choices. Increasingly, parents are requesting, choosing, and demanding choices for public education--options other than the district school(s). Smart cities and districts are creating their own choice charter schools. Parents are happy. Taxpayers are saving money. (See City Charter Schools: in our 7/22/04 newsletter).

Charter school proposals based on inter-department or interagency planning can improve services to youth and also be more cost efficient.(See Human Services Oriented Schools: California Foster Children, in our 1/27/05 newsletter).

Our constitution and NH Supreme Court ruling does not allow disparate treatment of public students or allow certain special education students to be unfunded. All students should have funding & all students should find a school where they thrive.

CHARTER SCHOOLS COST LESS

A 2003 study of Michigan’s Anderson Economic Group used financial records from all districts and charter schools and that charter schools cost less to operate. In fact, they found a $2000 per student “savings.” The New Hampshire charter school model is based on 20% less cost per student but keeping high accountability for achievement.

6 WAYS CHARTER SCHOOLS BENEFIT TAXPAYERS

Transportation. Charter schools do not have taxpayer costs for transporting students from outside the host district. Parents who choose charter schools provide their own transportation. Parents mostly don’t mind because they want choice schools. 5 of 6 of our charter schools have waiting lists already.

Facilities: Charter schools cannot bond or seek aid for buildings, unless the facility is owned by the school district. Charter schools must raise money or have lease/purchase agreements for facilities. This saves the state millions in facility aid. And “smart communities” are restoring community buildings for small choice schools (our 2/22/05 newsletter).

Compensation & Per Pupil Savings: Charter schools must have unique compensation and benefit systems for lower costs. Typically compensation is 70-80% of school budgets. This is a budget area where charter schools have more efficient budgets, although not necessarily lower “salaries.” New compensation models can be tried.

Special Education: Charter schools are smaller schools and usually have individual program plans for each student. When all students have individual plans, fewer students require special education. Special services costs are decreased, but students still have needs met. This is a huge funding issue. 17.8% of NH’s public education funds are for special education. Chartered public schools are helping districts reduce these costs.

High School Dropouts are Reduced. More high school students thrive, achieve, complete high school, and enter life with a plan when they attend schools of choice that fit their needs and interests. The economic benefit to students and communities is huge. See national research.

Return of Village or Community Schools: Today’s parents want smaller schools closer to home. They want a return of small community schools. Charter schools are meeting this revival. Federal funds provide up to $500,000 per school for start-up costs. Towns have new ways to grow without huge facility costs.

LEGISLATIVE DECISIONS NEEDED

The following issues need to be addressed by New Hampshire’s Senate Finance Committee and Senate Education Committee. Their actions are anticipated within the next 2 weeks.