Education Secretary called out over inflated claims about sequestration

As Education Week points out, US Secretary of Education Arne Duncan has long been considered an asset for the Obama Administration.

But, Duncan made some incorrect claims recently about the impacts of the pending fiscal sequestration on education around the country, and he is being called out about it – NOT by Republicans, but the not exactly conservative Washington Post!

Writes EdWeek:

“…the Washington Post put Duncan through the fact-check ringer—giving him “Four Pinnochios” for his statements about pink slips already going out to teachers, which is what the education secretary told Politics K-12′s Michele and other reporters last week.”

Four Pinocchios (Spelling lesson for the Post, only one “n” but two “c”s in the name) – Ouch!

Getting Pinocchios from the Washington Post – Quadruple Ouch!

EdWeek continues:

“The Post even compared Duncan’s statements to Susan Rice’s comments on Libya, which ultimately doomed her bid for Secretary of State.” Super Ouch!

Bringing this closer to home, I wonder how many panic-inducing claims about the sequester’s impacts on Kentucky’s schools might also be suffering from the Duncan-Pinocchio effect. I seem to recall a few years back we heard all sorts of claims one spring about all the teachers we were going to lose due to supposed funding short-falls. Came the new school year, and hardly anyone lost a job. Maybe a reader can refresh my memory on that.

For sure, we know some districts could be doing their business a lot more economically. We talked about that in our Bang for the Buck 2012 report.

Flip back to page 18 in that report. Ask yourself how come Harlan Independent – even with a 53 percent free and reduced cost school lunch rate – can educate students at $8,639 a piece and get an ACT Composite Score average of 20.9 while Anderson County, with only a 43 percent lunch rate, spends over $3,440 more per pupil and gets a much lower ACT Composite Score of 18.3?

In any event, it looks like the nation’s head educator got himself caught, right by his growing nose, smack in the center of the sequester tornado. Given the amount of wind constantly being generated in Washington, a Washington “tornado” can be a really dangerous place to be!

Moving Kentucky’s minimum dropout age to 18 will cost how much?

One of the big question marks in the proposal to increase the minimum dropout age to 18 is how much it will cost to keep those students in school for two more years.

The problem starts with figuring out exactly how many dropouts we are talking about.

Officially, the dropout figure has been running around 6,000 students or so for some time. But, most researchers working with dropout data have little confidence in any state’s dropout reporting. Schools have no real inducement to report this accurately and obviously are happy with the lowest number possible. The fact that the dropouts are gone makes them difficult to impossible to track, which frustrates attempts to audit the situation.

There was an audit on the accuracy of Kentucky’s dropout rate reporting – way back in 2006.

No surprise to anyone doing research in the area, this now rather dated report found the state’s published dropout rates were considerably under-reporting the true situation.

I’d love to be able to use really recent data to do a better estimate of how much the Age 18 bill might cost, but I am finding some issues with the data on enrollment, dropouts, retentions and reported graduations for the Classes of 2010 and 2011. High-accuracy data is promised to us when the Class of 2013 graduates, but that is months away.

So, I am going to go with data I developed in a 2011 paper for the Class of 2009 as a way to get some sort of handle on what this legislation could cost. I wish I could use something more current, but that isn’t reasonable at this time.

If you look at Figure 1 in that 2011 paper, it shows that as the Class of 2009 wended its way through Kentucky’s public high schools, it accumulated a total of 6,272 officially reported dropouts.

However, in order to make the reported data for fall membership (enrollment), dropouts, retentions (students held back in the same grade at the end of the year) and total diplomas and certificates work out, there had to be an additional unreported loss of students summing 5,150 more students.

Now, other calculations found in the report show that some of those unknown 5,150 students were actually accounted for as 787 students who graduated early, in less than four years.

Put this all together, and I estimate we are talking about an extra 10,635 students who probably would have been retained in the school system if an Age 18 bill had been in place for this class.

The latest audited school finance data I have comes from the 2010-2011 Receipts and Expenditures Report (Excel) from the Kentucky Department of Education. That document says per pupil funding from local tax sources was $3,733. The state per pupil funding, which is mostly from SEEK, amounted to $4,442 per pupil. Finally, federal support averaged $1,935 per pupil.

If these kids remain in school, all those funding sources get zapped, not just state SEEK. It’s as if the Kentucky legislature can launch an unfunded mandate on both local school districts AND the US government!

For example, if the local tax dollars don’t track, locals risk a reduction in their SEEK dollars, for example. And, the feds are committed to support students in school, too.

So, let’s put all of this together.

As you can see, the increase in state funding is only part of what will happen to the taxpayer. Overall, taxpayers will have to have to cough up a pretty tidy sum – well over $100 million.

By the way, loading more than 10,000 students back into the system is probably going to burst the seams at some high schools. I don’t have a good handle on how to estimate that, but school facilities are not cheap.

Now, with all of this said, the expenditures would still be a good investment, IF IT WORKED! But, the research we’ve mentioned in a number of earlier blogs indicates this feel-good-for-adult-liberals idea that forces their will on unwilling kids doesn’t work. It just makes those kids more expensive dropouts at age 18 instead of age 16. It might even lead to more violence in school as these entrapped kids will be a lot older, a lot madder, and a lot more capable of causing mayhem.

What we really need to focus on here is how to re-engage these kids to make them want to stay. How can we re-fire their self-confidence and provide real hope they can get back on track. Just turning our schools into some sort of daytime stalag won’t do that. I want to see some imaginative programs that really work before we even think about going to simple coercion that apparently doesn’t function as intended.

Bluegrass Institute talks tax and budget reform on WHAS

Jim Waters joined WHAS’ Mandy Connell on Monday morning and much of the discussion was focused on tax and budget reform. You can hear the podcast here:

In August we armed Kentuckians with a few key questions to ask their legislators about the Governor’s Blue Ribbon Commission on Tax Reform. These questions are below and are still relevant!

(1) Despite the fact that most lawmakers from both sides of the aisle say Kentucky’s tax code is outdated and a hindrance to economic growth, Lt. Gov. Jerry Abramson, the chairman of the Governor’s Blue Ribbon Commission on Tax Reform said last week that any kind of big, bold reform is unlikely. But Kentucky needs bold reform: The 2012 Alec-Laffer State Economic Competitive Index ranks Kentucky No. 39 out of 50 on economic outlook and No 49 out of 50 on our public debt and unemployment rate of 8.2 percent.

QUESTION for your legislators: What specific action will you take to make our tax policy more business-friendly, competitive and prosperous?

(2) Lt. Gov. Jerry Abramson, who also is chairman of the Governor’s Blue Ribbon Commission on Tax Reform, recently indicated that a sweeping overhaul of the state’s tax code isn’t in the works. He also said: “I don’t think anyone ever thought there would be a complete rewrite of the tax code.”

QUESTION for Gov. Beshear: Do you agree with Lt. Gov. Abramson’s views? If so, did the tax commission fail to fulfill its purpose? If you do not agree with Lt. Gov. Abramson, what overhauls do you plan to address, and how?

To contact your legislator, call toll-free (800) 372-7181. You do not have to have to know the name of your legislator. You only need to give your name, address and question. It will then be forwarded to those legislators that represent your area of Kentucky.

To contact the Governor’s office, you will be transferred to a voice mail. All you need to do is leave your name, phone number and question.

Reason to give #25: Transparency in the budget process

We are counting down the top 30 reasons to donate $17.92 each month to the Bluegrass Institute as part of our 1792: Never Out of Date campaign.

Reason #25 to donate: You want to see a transparent budget process in the Kentucky General Assembly.

Kentucky taxpayer money is spent behind closed doors. General Assembly Budget Committee meeting feature armed guards, roped-off hallways and virtually no access for the press.

Shouldn’t taxpayers have access to the conversations about how their hard earn money is spent?

Who fights for transparency in Kentucky’s budget process? The Bluegrass Institute. Learn more here.

 

Focus on wasteful spending, not more revenue

Taxes. Tax commissions. A hard look at tax-reform. Much needed tax revenue? Taxes, taxes and more taxes.

It seems like “tax” is the first word on the tongues of Frankfort politicians when state budget and debt solution ideas are up for discussion.

What if we changed “tax” in all the phrases above to “spending”. A spending commission, spending reform, etc…

The Kentucky Club for Growth recently put together some great information (via the Kaiser Family Foundation statistics) about the Commonwealth’s spending versus its neighbors. The short version is this: Kentucky spends, on average, about $1,000 per capita more than all but one of its bordering states.

From Kentucky Club for Growth:

As you can see, Kentucky spends $1000 more per person than any of our neighbors (save West Virginia, which must funnel a greater portion of education funding through the state treasury). In fact, Kentucky is 8% higher than the average of our neighboring states ($5,523) and 14% higher than the national average ($5,251).

If anything, Kentucky’s spending is too high. Other states are able to provide services at significantly less cost per capita.

Just another example of Kentucky’s spending problem.

One solution to our state’s debt problem is to stop the obsession with taxes and start obsessing about where and how taxpayer money is spent.

It is clear that Kentucky has a spending problem, not a revenue problem. Rather than look for ways to increase revenue, why not look to the best practices of our six border states who spend taxpayer money more efficiently than we do?

Economic dreaming

I have a problem with people who somehow think certain sectors of the economy can magically be shielded from the realities of economics. The facts are that sooner or later, when real resources are not available, every area of society suffers.

A case in point of the magical thinking viewpoint about economics came out today in the News-Enterprise newspaper.

That paper opines:

“It’s time to start creating new solutions to protect schools, even go so far as to make them recession proof.”

I’m sorry, but real life does not work that way. You cannot cancel the facts of life about economics. And, you cannot create magic protection for an especially large enterprise like our public school system that absorbs an amazingly large part of every tax dollar we send to Frankfort (somewhere around 40%).

Actually, overly extreme attempts to somehow protect schools from recessions could create inducements that produce and sustain inefficiency in schools. That just adds more stress in a recession.

We might also create some very severe negative attitudes about schools in the minds of those involved in other areas of our economy (such a public safety and health, to name just two of many) that are not receiving such special treatment.

Do we need new, cost-saving solutions for our schools? You bet we do, especially solutions that get us more recession fighting “Bang for the Education Buck.” Some answers may include charter schools (which generally operate more cheaply than traditional schools) and really creative use of digital learning.

But, will workable solutions include a magic wand that somehow insulates schools from the economic realities that impact all our lives? No way! Not going to happen.

Failed leadership

Rep. Jeff Hoover has some thoughts on why the Kentucky General Assembly had to be called into special session (courtesy of cn|2 ):

When you don’t follow the rules, when you do things behind closed doors, not out in the open, when you don’t involve the membership that should be involved – it is failed leadership…

I think that pretty much hits the nail on the head. What is Hoover referring to? Well, probably the fact that budget negotiations were conducted behind closed doors, with an armed guard, and out of view of other legislators. The budget process was not transparent.

PODCAST: Jim Waters talks transparency, armed guards with Heartland

BIPPS.org - Government Transparency

Jim Waters, President of The Bluegrass Institute, sat down for a conversation with the Heartland Institute about recent transparency troubles in the Kentucky General Assembly.

Listen here.

This is particularly timely as the Lexington Herald-Leader praised the General Assemblyfor how open its budget negotiations were during this session. Jim accurately describes why that is not the case.

Open and transparent? We must have missed it

The Lexington Herald-Leader’s most recent editorial is titled “Kudos to legislature for opening budget negotiations“. Unbelievable.

For the record, budget negotiations for the 2012 General Assembly were not open — unless you consider the presence of one lone public-TV camera as a great example of transparency.

In fact, the paper says all you need to know in the body of the editorial when they contradicted the title:

The budget conference committee meetings were not open to the public but were broadcast by KET…

The Lexington Herald-Leader cannot speak firsthand on how open the meetings were because they were not in the room. How do I know that? Because press was not allowed. Having one camera in a room does not make a process open and transparent. The Bluegrass Institute pointed this out and asked these questions:

  • Why was the press not allowed to attend these negotiations?
  • Why were legislators not on the budget committee not encouraged to attend?
  • Why did the budget committee need an armed guard?
  • Why was the hallway roped-off?

Perhaps the Herald-Leader didn’t see the picture of the hallway outside the room where negotiations were taking place. I’m not sure how anyone could sell these recent negotiations as open and transparent.

Tuesday afternoon links

Here are a few notes for this Tuesday - 

  • The Lexington Herald-Leader thinks that the recent General Assembly budget negotiations were open and transparent. We disagree here and here.
  • It appears an effort to further limit the amount of certain cold medicines Kentucky citizens can buy is moving forward.
  • We posed this question on our Facebook page: Does one camera in a budget committee hearing establish transparency? Stop by and lend your thoughts!