Education Spending




Recent Issues

Philly Classrooms Out $200 Million, PFT Declares Victory

JANUARY 22, 2015 | News Availability by COMMONWEALTH FOUNDATION

In a blow to education reform in Philadelphia, the Commonwealth Court ruled that Philadelphia’s School Reform Commission did not have the power to cancel the Philadelphia Federation of Teachers’ contract last year, preventing an estimated $200 million from reaching classrooms over the next four years. About the ruling PFT Presiden

School Funding Reform & Weighted Student Funding

Testimony of Nathan Benefield, Vice President of Policy Analysis, and James Paul, Senior Policy Analyst

DECEMBER 4, 2014 | Testimony by NATHAN BENEFIELD, JAMES PAUL

Pennsylvania's education system is not underfunded, but it certainly is broken and irrational. Only by implementing a Weighted Student Funding model—and following the lead of other states who have moved toward a smarter funding method—can the commonwealth construct a more efficient and effective system to fund a first-class education for all of its students.

In Education Debate, Let’s Fund Students not Districts

DECEMBER 4, 2014 | News Release by COMMONWEALTH FOUNDATION

December 4, 2014, HARRISBURG, Pa.—In the ongoing state education funding debate, a common refrain is that more money will solve all problems. But Pennsylvania already spends $14,600 in total funding per student—nearly $3,000 more than the national average. How can even more money be the answer? It isn’t.





Recent Blog Posts

Five Ways Dollars Are Kept Out of Philadelphia Classrooms

JANUARY 22, 2015

The school district of Philadelphia saw a $1 billion increase in revenue over the past decade, even as enrollment declined. Yet many claim there isn't enough funding for basic classrooms supplies. The question is: Where is the money going if not into the classroom?

1. Union Leader Salaries

The PFT forces teachers to pay more than $700 for the average teacher each year in dues (or more than $500 in fair share fees to keep their jobs). Teachers never see that money as it is deducted from their paycheck just like taxes. 

At the same time, president of the American Federation of Teachers (AFT), Randi Weingarten, makes an astounding $550,000 a year off of teachers' dues. In fact, AFT has more than 200 staffers making more than $100,000 in compensation, according to the Center for Union Facts

Without such high dues, teachers could keep more of their salary and higher take home pay would help attract high quality teachers.

2. Political Spending

Philadelphia teacher union dues are being spent on political ads at the rate of $70,000 per minute. PFT ran two 30-second TV ads during an Eagles football game attacking Governor Corbett and select lawmakers. The cost of those two ads alone were $35,000 each, according to records filed with the FCC.

Nationally, the AFT spent more money on elections this year than ever before, including a gift of $500,000 from teachers’ union dues to fund attack ads via a “SuperPAC.” This money could buy countless classroom supplies the union claims Philadelphia schools lack. The teacher’s union’s actions indicate leadership is more concerned with playing politics than providing resources to struggling teachers and students.

3. Administrative Costs

The School District of Philadelphia has among the highest administrative costs in the state. In 2012-13, Philadelphia had a higher administrator to student ratio than the average Pennsylvania school district. In addition, the average administrator salary is $129,573, which ranks in the top 25 most generous school districts in Pennsylvania. These high overhead costs focus resources on adults instead of kids.

4. Health Care Costs

This past fall, for the first time, Philadelphia teachers were asked to contribute a portion of their salary towards health care premiums, a request made of teachers in every other Pennsylvania school district save one. With this change, approximately $54 million could go directly to classrooms if teachers begin to contribute just a percentage of their own health care costs. The School Reform Commission proposed teachers pay between 5 and 13 percent of their health care costs. That is about half of the 23 percent the average Pennsylvanian pays towards employer sponsored family coverage.

Former Governor Rendell, Philadelphia Mayor Nutter, and the Philadelphia Inquirer editorial board all agree with the necessity for reasonable concessions—but the PFT refuses to compromise. Without these savings, more teacher layoffs will be necessary.

5. PFT Health and Welfare Fund

Apart from health insurance, the school district contributes to the PFT Health and Welfare Fund. This entity, controlled by the PFT, provides supplemental benefits, such as dental and vision, along with a wide variety of other programs, such as term life insurance and an annual educational conference.

By simply ending the PFT’s monopoly control over these benefits, and selecting a high-quality benefit provider in the marketplace, the school district would save an estimated $22.4 million. Teachers will still receive these benefits with the savings would being directed back into the classroom for the benefit of students.

posted by ELIZABETH STELLE | 00:45 PM | Comments

Harmed by "Hold Harmless"

DECEMBER 15, 2014

There are few more egregious examples of political doublespeak than Pennsylvania’s “hold harmless” provision for state education funding.

Hold harmless guarantees each school district receives no fewer state education dollars than it received the previous year—regardless of changes in district enrollment. This may sound appealing in theory, but it is actually quite problematic in practice. While the policy ostensibly exists to prevent school districts from being harmed by reduced funding, it has, in fact, brought real harm and inequity to hundreds of districts across the commonwealth.

Consider that during the 2012-13 school year, state revenue per student in Pennsylvania's 20 fastest-growing districts was slightly more than $3,000. In contrast, state revenue per student among those districts with the largest decreases in enrollment was nearly $10,000. Put another way, school districts with declining enrollment received more than three times the state funding per student than growing districts.

20 Fastest Growing PA Districts 1996-2013

District

County

Growth

2013 State
Revenue Per Student

Garnet Valley

Delaware

119%

$2,877.47

Perkiomen Valley

Montgomery

89%

$2,826.65

South Fayette Township

Allegheny

86%

$2,698.31

Spring-Ford Area

Montgomery

83%

$2,764.82

Pine-Richland

Allegheny

74%

$2,686.28

New Hope-Solebury

Bucks

61%

$2,777.26

Central York

York

60%

$2,555.85

Oxford Area

Chester

56%

$4,538.11

Avon Grove

Chester

53%

$4,340.74

Daniel Boone Area

Berks

53%

$4,282.96

Mars Area

Butler

52%

$3,217.76

Lower Moreland Twn

Montgomery

48%

$2,888.73

Kennett Consolidated

Chester

47%

$2,842.80

Jim Thorpe Area

Carbon

45%

$2,885.29

Central Bucks

Bucks

45%

$2,401.97

Tredyffrin-Easttown

Chester

44%

$2,211.83

Owen J Roberts

Chester

41%

$3,120.39

Peters Township

Washington

40%

$2,608.30

Wilson

Berks

39%

$2,784.51

Northeastern York

York

38%

$4,602.52

Average Top 20

59%

$3,095.63

20 Fastest Shrinking PA Districts 1996-2013

District

County

Growth

2013 State
Revenue Per Student

McGuffey

Washington

-30%

$7,979.42

Sullivan County

Sullivan

-30%

$6,208.08

Southeastern Greene

Greene

-31%

$11,399.85

Warren County

Warren

-31%

$7,881.19

Jeannette City

Westmoreland

-32%

$9,242.87

Ligonier Valley

Westmoreland

-32%

$5,611.11

Susquehanna Community

Susquehanna

-32%

$10,778.41

Union

Clarion

-32%

$11,529.47

Punxsutawney Area

Jefferson

-32%

$9,524.06

Austin Area

Potter

-32%

$11,885.68

Galeton Area

Potter

-33%

$7,903.20

Cranberry Area

Venango

-33%

$8,525.50

Farrell Area

Mercer

-33%

$12,197.76

Marion Center Area

Indiana

-34%

$10,288.15

Northern Potter

Potter

-35%

$10,904.21

Allegheny-Clarion Valley

Clarion

-35%

$11,479.26

Purchase Line

Indiana

-35%

$12,383.83

Johnsonburg Area

Elk

-36%

$11,175.29

Salisbury-Elk Lick

Somerset

-39%

$9,555.59

Cameron County

Cameron

-39%

$10,600.96

Average Bottom 20

-33%

$9,852.69

A new policy brief from Temple University's Center on Regional Politics finds that Pennsylvania’s education funding system is out of sync with the rest of the nation.

While 11 other states provide a hold harmless guarantee to school districts, no other state in the nation also guarantees districts with declining enrollment a share of new education revenues.

Not only do Pennsylvania school districts retain baseline funding levels—regardless of student enrollment and student need—but declining enrollment districts are guaranteed a portion of new education revenues. The authors describe this practice as “hold harmless plus.”

Hold Harmless

My colleague Nate Benefield and I recently offered testimony to the Basic Education Funding Commission, where a large portion of our remarks focused on transitioning away from hold harmless in favor a weighted student funding (WSF) model.

Currently, if a Pennsylvania student moves from one district to another, state funding does not follow the child to her new school.

Above all else, a weighted model would distribute funds that truly follow each child. WSF also accounts for individual student need by providing additional dollars for low-income and English language learners.

The Funding Commission presents an important opportunity to establish a funding formula that is equitable, rational, and transparent. The first step for lawmakers should be to phase out hold harmless, once and for all.

posted by JAMES PAUL | 10:30 AM | Comments

A Shoddy Attack on Charters

NOVEMBER 11, 2014

Charter Schools

My letter to the editor of the Philadelphia Daily News takes issue with the paper's recent characterization of charter schools as "fiscal monsters." 

The Daily News editorial on charter schools ("Frankencharters") includes scary Halloween analogies but does a disservice to genuine efforts to improve education in Philadelphia. Referring to charter schools as "fiscal monsters" flatly ignores that charters spend and receive fewer dollars per student than district schools.

Despite significantly less funding, Philadelphia charters outperformed district schools on the 2012-13 State Performance Profile. Charters actually operate with maximum accountability, since poor academic performance or financial mismanagement will result in closure - a fate that rarely, if ever, befalls district schools. Will the Daily News similarly refer to failing district-run schools as "monsters" that need to be "reined in" when the next cheating scandal occurs?

It should come as no surprise that charters receive their funding from school districts, since charters are public schools, too. That so many families have opted for charters reflect their success - it illustrates the overwhelming demand for expanding school choice.

Continued oversight and transparency is an appropriate policy goal for charter and district-run schools alike - especially in light of the closure of Walter Palmer, which is indeed devastating to the students and families involved. But the unique circumstances surrounding Walter Palmer do not justify demonizing largely successful charters citywide.

The 34,000 students currently languishing on charter waiting lists illustrate the urgent nature of school reform. Denying them more educational options - just to prop up the failing status quo - does not serve the best interests of Philadelphia.

posted by JAMES PAUL | 06:24 PM | Comments



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