Chalkbeat explains

Memphis suburbs are receiving federal money for more poor students than they have. Here’s why.

PHOTO: Brandon Dill/Special to The Commercial Appeal
In a 2015 photo, a student says goodbye to her friend as the pair board buses for home at the end of a school day at Bartlett Ninth Grade Academy.

Last school year, the small Lakeland district outside Memphis received about $64,000 in Title I funds to help educate poor students. Next year, it’s expecting nearly $427,000.

The Collierville district, 20 miles away, got about $635,000 last year. Next year? It’s expecting more than $3.1 million, a 490 percent jump.

And Germantown will do best of all. That district expects its Title I funds to increase nearly 850 percent to $2.2 million.

But poverty hasn’t risen precipitously in those places, which split off from Shelby County Schools in 2014 to form smaller districts and which have far fewer poor families. A quirk in the rules for allocating those federal funds will give all but Millington a big budget boost next year.

Combined, the five municipalities will receive an extra $7.1 million.

Meanwhile, in what could be described as a cruel irony, Shelby County Schools is set to receive $5 million less in Title I funds than it did last year — in part because of the secession of those six districts.

The changes have flabbergasted local educators.

“Something’s wrong with that equation,” said Deborah Atkins, who lives in Bartlett and teaches in Shelby County Schools. “I know we have (poor) students in the municipalities, but it’s not equitable.”

Those slated to benefit from the extra cash aren’t sure what it all means, either.

“I was surprised,” said Tammy Mason, superintendent of Arlington Community Schools, another one of the municipalities. Arlington is set to receive an extra $897,000. “We don’t have a plan yet.”

The funding shifts are another significant consequence of the tumultuous merger and subsequent de-merger of Memphis’s urban and suburban school districts. They also reveal how the labyrinthine method of allocating Title I money can perpetuate significant inequities.

Chalkbeat asked local, state and federal officials to explain the changes. Here’s what they told us.

Why is Shelby County Schools losing Title I money?

Last year, Shelby County Schools received $65 million in Title I funds. Next year, that number is expected to drop by 8 percent, or $5 million. There are three key reasons why, according to the U.S. Department of Education.

PHOTO: Katie Kull
The Foote Homes housing project, which is scheduled to be razed and redeveloped, has been home to thousands of Memphis families since it was built in the 1940s to serve as low-income housing for African-American families.

One: Shelby County Schools has a smaller share of the nation’s poor.

Title I funding is allocated based on each district and state’s portion of the total number of poor students in the U.S. That means that when poverty in one school district increases faster than in others, it shifts money away from those other districts even if their poverty levels haven’t changed.

And the share of those students living within the boundaries of Shelby County Schools has dropped, from 0.51 percent to 0.42 percent.

Two: The district is now smaller in the eyes of the federal government.

This year was the “first to reflect to creation of the new municipal school districts, which meant that the boundaries for Shelby used in the Census estimates were smaller than those used in the prior year,” according to the U.S. Title I program office.

Three: The new federal education law allows the state to withhold more Title I money from districts.

That money, taken from all Tennessee districts, will be redistributed by the state for school improvement efforts. Since most of the state’s lowest-performing schools are in Memphis, the district can expect to get a good chunk of that back.

Why are those five breakaway districts gaining $7 million?

This year will be the first year the U.S. Department of Education recognizes the six municipal districts in its funding calculations — nearly three years after the smaller districts formed.

That’s because the federal government only updates its list of school districts and boundaries every two years, and calculations about poverty lag another year behind that.

In the meantime, Title I funding for Shelby County Schools and the six municipalities was given to the Tennessee Department of Education as a bulk sum. The state then divided it among the seven school districts based on the percentage of poor students enrolled in food or income assistance programs and a few other criteria.

Now that the federal government recognizes the six municipal districts, a new process has kicked in to establish Title I funding levels.

In the first year of that process, each municipality inherits the student poverty level of the district it broke off from — in this case, Shelby County Schools. This is true even if poverty rates between the districts are drastically different.

State education officials called that policy “counterintuitive” and urged federal officials to reconsider. But the state ultimately accepted the extra funds when federal officials informed them that the money would go to other states if they declined.

Note: Shelby County Schools includes some unicorporated areas outside Memphis city limits
Source: Tennessee Department of Education (2015-16) and American Community Survey (2015)

Over the next three years, the Title I funds sent to the municipalities will gradually decrease to match their own poverty rates.

Source: Tennessee Department of Education

Why is one district losing a bit of Title I funding?

Not all of the municipalities are gaining money out of this policy. Millington’s student poverty rate is significantly closer to Shelby County Schools’ rate, so inheriting the larger district’s numbers didn’t change much.

In fact, the district is slated to lose nearly $128,000 this year. Officials say they have planned for that, and will take about $30,000 from Millington’s reserve fund to help make up the difference.

“We believe we’ll be able to carry on with the things we want to do,” superintendent David Roper said.

Local funding

Aurora board to consider placing school tax hike on November ballot

A kindergarten teacher at Kenton Elementary in Aurora, Colorado helps a student practice saying and writing numbers on a Thursday afternoon in February 2017. (Photo by Yesenia Robles, Chalkbeat)

Seeking to boost student health and safety and raise teacher pay, Aurora school officials will consider asking voters to approve a $35 million tax plan in November.

The school board will hear its staff’s proposal for the proposed ballot measure Tuesday. The board may discuss the merits of the plan but likely would not decide whether to place it on the ballot until at least the following week.

Aurora voters in 2016 approved a bond request which allowed the district to take on $300 million in debt for facilities, including the replacement building for Mrachek Middle School, and building a new campus for a charter school from the DSST network.

But this year’s proposed tax request is for a mill levy override, which is ongoing local money that is collected from property taxes and has less limitations for its use.

Aurora officials are proposing to use the money, estimated to be $35 million in 2019, to expand staff and training for students’ mental health services, expanding after-school programs for elementary students, adding seat belts to school buses, and boosting pay “to recruit and retain high quality teachers.”

The estimated cost for homeowners would be $98.64 per year, or $8.22 per month, for each $100,000 of home value.

Based on previous discussions, current board members appear likely to support the recommendation.

During budget talks earlier this year, several board members said they were interested in prioritizing funding for increased mental health services. The district did allocate some money from the 2018-19 budget to expand services, described as the “most urgent,” and mostly for students with special needs, but officials had said that new dollars could be needed to do more.

The teacher pay component was written into the contract approved earlier this year between the district and the teachers union. If Aurora voters approved the tax measure, then the union and school district would reopen negotiations to redesign the way teachers are paid.

In crafting the recommendation, school district staff will explain findings from focus groups and polling. Based on polls conducted of 500 likely voters by Frederick Polls, 61 percent said in July they would favor a school tax hike.

The district’s presentation for the board will also note that outreach and polling indicate community support for teacher pay raises, student services and other items that a tax hike would fund.



School Finance

Key lawmakers urge IPS to lease Broad Ripple high school to charter school

PHOTO: Scott Elliott

Several Indiana lawmakers, including two influential state representatives, are calling on Indianapolis Public Schools leaders to sell the Broad Ripple High School campus to Purdue Polytechnic High School.

In a letter to Superintendent Lewis Ferebee and the Indianapolis Public Schools Board sent Tuesday, nine lawmakers urged the district to quickly accept a verbal offer from Purdue Polytechnic to lease the building for up to $8 million.

The letter is the latest volley in a sustained campaign from Broad Ripple residents and local leaders to pressure the district to lease or sell the desirable building to a charter school. The district is instead considering steps that could eventually allow them sell the large property on the open market.

But lawmakers said the offer from Purdue Polytechnic is more lucrative and indicated they wouldn’t support allowing the district to sell the property to other buyers.

The letter from lawmakers described selling the property to Purdue Polytechnic as a “unique opportunity to capitalize on an immediate revenue opportunity while adhering to the letter and spirit of state law.”

It’s an important development because it was signed by House Speaker Brian Bosma and chairman of the House Education Committee Bob Behning, two elected officials whose support would be essential to changing a law that requires the district to first offer the building to charter schools for $1. Both are Republicans from Indianapolis.

Last year, the district lobbied for the law to be modified, and Behning initially included language in a bill to do so. When charter schools, including Purdue Polytechnic, expressed interest in the building, he withdrew the proposal.

The district announced last month that it planned to use the Broad Ripple building for operations over the next year, which will allow it to avoid placing the building on the unused property registry that would eventually make it available to charter operators.

The plan to continue using the building inspired pointed criticism from lawmakers, who described the move in the letter as an excuse not to lease the property to a charter school. Lawmakers hinted that the plan will not help win support for changing the law.

“It certainly would not be a good faith start to any effort to persuade the General Assembly to reconsider the charter facility law,” the letter said.

The legislature goes back in session in January.

The Indianapolis Public Schools Board said in the statement that they appreciate the interest from lawmakers in the future of the building.

“We believe our constituents would not want us to circumvent a public process and bypass due diligence,” the statement continued. “We will continue to move with urgency recognizing our commitment to maximize resources for student needs and minimize burdens on taxpayers.”

Indianapolis Public Schools is currently gathering community perspectives on reusing the property and analyzing the market. The district is also planning an open process for soliciting proposals and bids for the property. The district’s proposal would stretch the sale process over about 15 months, culminating in a decision in September 2019. Purdue Polytechnic plans to open a second campus in fall 2019, and leaders are looking to nail down a location.