Funding and the 10 Mil Match

This post digresses from the superintendent search somewhat but does emphasize what I believe to be an important ability our new superintendent must possess - the ability to inspire action on important educational issues. This article appeared in the Press Register in December 2007, before recession induced pro-ration hit the system. For those who ask "couldn't they see this coming" I believe an answer lies within the article, yes it was foreseen, but obviously we could not muster enough interest in the issue to get the help necessary to avoid the impact we now feel.

The next superintendent must be able to lead politically.

To this date no meetings are scheduled to continue the dialogue about replacing Dr. Hollinger

Match funding worries Baldwin schools By Josh Bean Staff Reporter Sunday,December 23, 2007 Edition: 02, Section: B, Page 01

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BALDWIN COUNTY

Match funding worries Baldwin schools

Officials say soaring cost to gain state funding could jeopardize system's ability to meet county's growing educational needs

By JOSH BEAN

Staff Reporter

BAY MINETTE - What could Baldwin County Public Schools have done with an extra $29 million this year?

Plenty, said Superintendent Faron Hollinger, as he explained a vexing trend: The amount of matching money that the Baldwin school system must supply to receive state funding has more than doubled in recent times, from $12.2 million ($550 per student) in 2001 to $29.3 million ($1,126 per student) this year.

The match is projected to exceed $40 million by 2010, according to figures from the Baldwin system. That worries Hollinger and other local officials who argue that it handicaps their ability to meet the county's need for more schools, classes and teachers.

''What I'd personally like to see is some consideration given to capping it, to the point where it doesn't grow," Hollinger said.

With uncertainty swirling as thousands of Baldwin taxpayers appeal their property assessments and as Baldwin school enrollment rises - the system has added 4,000 students since 2001, for a total of 26,680 - the match could become a pressing issue, Hollinger said.

According to state rules, each of the 132 Alabama school systems must provide the equivalent of 10 mills of local property tax revenue for education funding. A mill amounts to a dollar in tax for every $1,000 of assessed property value.

The Mobile County Public School System pays the highest match in the state, at $36.5 million - only 24 percent higher than Baldwin's, even though its enrollment is more than twice as large.

For perspective, Baldwin officials often compare themselves to Shelby County near Birmingham, which has roughly the same number of students and is also considered a wealthy, high-growth area. But Shelby County's match is significantly lower at $18 million - $729.94 per student.

Teacher cuts?

Without a cap or some kind of relief, Baldwin school board President Bob Callahan foresees possible teacher cuts.

Baldwin schools employ more than 400 locally funded teaching positions - jobs not paid for by state funds - and that number could be reduced without relief from the 10-mill match, Callahan said.

''We have things like the pre-kindergarten program that's been very effective, or reading coaches in every school, which has paid dividends for students. Those are the kind of things we won't be able" to fund, he said.

Says system is working

Assistant State Superintendent Craig Pouncey and education consultant Ira Harvey, who helped design the Foundation Program, say the formula is working like it should: Wealthier school systems, like Baldwin, have a greater local burden than poor systems.

Pouncey, who oversees the state's education finances, said there was never any expectation of capping the 10-mill match and added that he has heard of no movement to change it.

The 10-mill match reflects the value of a mill, Harvey said, so it's understandable for Baldwin's contribution to grow as property values grow.

Callahan counters that Baldwin pays more, on a per-pupil basis, than small, suburban systems like Vestavia Hills and Mountain Brook outside Birmingham. In fact, Baldwin's match on a per-pupil basis ranks second statewide, trailing only Homewood, another Birmingham-area community.

At the same time, he said, Baldwin County has an expanding enrollment, more free- and reduced-lunch students and more transportation costs than those smaller systems.

"Where's the equity in that?" Callahan asked.

Growing sales tax revenue in recent years has helped Baldwin officials handle the growing match, Callahan said, but that is now leveling off. He described it as the end of the ''Katrina Effect," when hurricane-recovery work and the presence of hundreds of evacuee families fueled retail sales.

Property taxes

If Baldwin raised property taxes, Harvey suggested, the school system might not face such a crunch from the 10-mill match. Baldwin property owners pay a total of 12.5 mills for schools every year, while homeowners in Hoover, Homewood and Vestavia Hills pay as much as 53 mills.

Callahan said local voters would never approve a property tax hike, with coastal insurance premiums soaring and annual reappraisals already boosting tax bills. ''Impossible," he said.

Hollinger said he has spoken to members of Baldwin's legislative delegation and state education officials about the need to address the match.

"When implemented back in the'90s, what appeared to be an equitable strategy then may have been effective, but I think it needs to be re-evaluated," Hollinger said. ''I would contend that the inequity may not have been eliminated, but just shifted - and, unfortunately, shifted in our direction."

Supports a cap

New state Sen. Lee ''Trip" Pittman, R-Daphne, said he supports a cap and has been ''testing the temperature" of other legislators to gauge support for such a change, although he conceded that other areas of the state might reject it.

If a cap is not politically viable, Callahan suggested the state could give a discount for interest paid for capital improvements, which would lessen the local burden for high-growth areas like Baldwin County.

Baldwin officials say any additional money is welcome, with many schools bursting at the seams and more than 200 portable classrooms - a record high - in use this year.

Baldwin already has $150 million in construction under way with new elementary schools in Daphne, Robertsdale and Foley and new middle schools in Spanish Fort, Foley and Fairhope. Those new schools will ''barely meet our needs," Hollinger said.

A new elementary school carries an estimated cost of $20 million.

Pouncey sympathizes with Baldwin's plight, but stressed that the rules are in place to make sure all students have adequate facilities.

"You've got school systems in other parts of the state that have schools that were built in the 1920s and 1930s and no capacity to replace them," Pouncey said.