KS Administrative Costs Consistent Over the Past Decade: A Research Report from the Kansas Association of School Boards

Tuesday, April 5, 2016

Kansas Administrative Costs Consistent Over the Past Decade

There have been recent comments in the media regarding the drastic increases in administrative costs in Kansas public schools.  KASB went to KSDE's current operating expenditure summary data to confirm or deny the following statement:  "Administrative costs are increasing dramatically in Kansas schools."

You can find the summary table here, but below are some key points:

• From 2005 to 2015
• Spending on instruction increased almost $875 million; which is a 40.2% increase. 
• Spending on administration increased $78 million; which is a 23.6% increase.
• The percent spent on administration has decreased from 9.2% to 8.2%.  If Kansas was still spending 9.2% of the total expenditures on administration in 2015, we would be diverting an additional $49,636,603 away from the classroom.
• Per pupil spending on instruction increased $1,660; which is a 33.7% increase.
• Per pupil spending on administration increased $134; which is a 17.9% increase.
• The percent spent on instruction has increased from 60.4% to 61.1%. 

Below is a chart showing the total expenditures by year and category.

The bottom blue area represents instruction spending, following by support services for staff and pupils in red and green, then general and school administration in purple and blue.

Note that the lines for general and school administration have remained largely consistent over this time period.  

The graph below shows the expenditures on a per-pupil basis.  

The per-pupil graph looks very similar to the total cost graph; the amounts spent for general and school administration have been very consistent since 2005.  Therefore, based on this information, it seems safe to say that the statement "Administrative costs are increasing dramatically in Kansas schools" is false.

For more information, visit kasb.org/research.  

Linda Hill: Norwich Teacher, Coach, and SADD Sponsor Wins Award

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New KCEG report: Private sector wants state to re-invest in Kansas Schools

FOR IMMEDIATE RELEASE: April 6, 2016    CONTACT: Kendra Bozarth, Kansas Center for Economic Growth 785.783.7370   Kansas public education is foundation for economic growth  New KCEG report: Private sector wants state to re-invest in Kansas schools      TOPEKA - Today the Kansas Center for Economic Growth (KCEG) released a new report to explore the link between public education, a skilled workforce, and a strong economy. The report, "Kansas Public Education: The Foundation for Economic Growth," analyzes the return-on-investment and also the cost avoidance that properly funded public education provides. "The Kansas Legislature recently reached First Adjournment, but the debate over the state's underfunded schools is far from over," said Annie McKay, KCEG Executive Director. "Kansas is not investing enough to ensure public education remains responsive to workforce demands. Unfortunately, lawmakers have offered little other than stall tactics and accounting gimmicks to address the problem. The longer we fail to properly fund schools, the greater harm it will inflict on the Kansas economy." Among the report's main findings: Every dollar invested into Kansas' public schools returns over $2.62 in economic benefits to the state. High school graduates save the state money. The Class of 2014 may save an estimated $111 million on social safety net programs, $985 million on crime control costs, and $1.5 billion on public health costs. 70 percent of community leaders and 81 percent of business leaders expect high school graduates to possess both technical and non-academic skills. Though there are almost 19,000 more students, total state aid is almost $350 million below its peak in 2009 when adjusting for cost increases, and there are over 620 fewer certified teachers in Kansas public schools. "As the leader of one of the most experienced, diversified, and respected mechanical contractors in the United States, I understand the importance of a well-trained workforce. Since our founding in 1893, our vision at U.S. Engineering Company is 'Be the Best.' In order to be the best, we must hire the most skilled employees. The development of that workforce starts with our schools," said Tyler Nottberg, Chairman of the Board for the Business Alliance. "Educating Kansas kids has a broad impact on our state economy," said McKay. "Boosting this investment holds huge potential for the state, but Kansas' unaffordable tax changes are making this otherwise obvious choice incredibly difficult, if not impossible." On Friday, March revenue collections came in yet again below estimates. For 11 of the past 12 months, Kansas has fallen short of revenue expectations. The perpetual budget crisis in Kansas is impeding on the state's ability to adequately invest in one of the most powerful economic development tools - public education. Read the entire report here.  # # #    See all of KCEG's latest research & analysis, including briefs, infographics and other blogs, on our website.

Kansas Center for Economic Growth 720 SW Jackson St, Ste 203 Topeka, Kansas 66603

A Blog on School Board Spending by the Kansas Association of School Boards

School boards putting more funds in classroom as share of administrative costs decreases

School boards across Kansas are putting a larger percentage of funds into the classroom and away from administration, according to a new analysis by KASB.

The analysis shows recent statements in the media alleging dramatic increases in administrative costs are inaccurate.

From 2005 to 2015, the portion of school funding spent on administration has decreased nearly 11 percent, from 9.2 percent of funding to 8.2 percent of funding. In fact, if administrative expenses had stayed at the 2005 percentage of funding, that would have cost the state an additional $50 million.

Administrative spending also fell behind other measurements of spending over the 10-year period.

Overall spending on instruction increased 40 percent, while administrative costs increased 24 percent. Per pupil spending on instruction increased 34 percent, while per pupil spending on administration increased 18 percent. Again, even though total dollars spent on education has increased over the past 10 years, the percentage share that goes to administration has decreased.

The KASB analysis is consistent with an earlier KASB report that shows since 1998, school districts have increased positions that are involved in the direct instruction of students by more than 16 percent while decreasing general administrative positions by nearly 17 percent.

During challenging budget times, school boards are working hard to ensure that tax dollars are spent as much as possible on the direct instruction of students.

A new blog by the Center for Economic Growth

The Kansas Economy: Three Jokes for April Fools' Day

 

By Annie McKay, Kansas Center for Economic Growth Executive Director

I recently reflected on all that's transpired in the last year, taking stock of progress, change, and where work remains to be done. Last year on April 1st KCEG, along with other allied organizations, held a press event at the statehouse where we called on the Governor and policymakers to reverse course and bring to an end the damaging tax plan put in place in 2012. While we weren't joking then, here are some jokes being played on every Kansan this April Fools' Day:

1. Kansas' revenue collections: For 11 of the last 12 months, the state failed to collect the revenue we need to pay the bills. Our expectations have been repeatedly lowered, burying the bar deep in the ground, and yet we have continuously been unable to clear it. Proponents of the failed tax policy offerexcuse after excuse as to why Kansas can't manage to make ends meet, but make no mistake about it - just like the math used to sell this failed policy, the excuses don't add up either. The fact of the matter is Kansas is an outlier when it comes to revenue loss, and like every other measure of success, we trail the region and the nation.
2. Support for education: In the first three months of 2016 alone the Governor and some policymakers proposed  dismantling early education, approved a plan forK12 that shifts money from one pot to another, and cut higher education by $17 million. This comes after consecutive years of sweeps, cuts, and other gimmicks that have left our comprehensive education system struggling. If policymakers and the Governor support education, their actions in the last several years fail to reflect as much. And if we're sincere about growing the Kansas economy, the place to start is with education. 
3. Job growth: Proponents of Kansas' current trajectory continuously change the measure of success for this failed plan. We've pulled apart the Governor's Council of Economic Advisors metrics, personal income growth, and theunemployment rate - none of which add up to signs that the experiment is working. Most notable, however, is Kansas' private job growth, which has been well documented by KCEG and others as being amongst the bottom of the barrel in the region and the nation. If you're keeping track at home, whether measuring since we started down this damaging path or just in the last year, Kansas' private job growth rate is laughable.

April Fools' Day is a time for practical jokes, hoaxes, and other tricks. But since damaging, unaffordable tax changes were enacted in 2012, it feels like Kansas has been living one perpetual April Fools' Day prank - except it's not funny. Kansans have a choice - they can either remain on the receiving end of the joke played on us by proponents of the "March to Zero" or they can call on policymakers to end the hoax that these tax changes will result in growth. It's time to come to terms with the compounding evidence that these extreme changes cost all of us a prosperous future.

KS Center for Economic Growth Blog on Senate Bill 463

High Danger Alert: SB 463

By Kansas Center for Economic Growth Senior Fellow Duane Goossen

Watch out! A very dangerous financial bill just surfaced in the Senate Ways and Means Committee, but it was promoted with language that hid the ultimate purpose and effect.

Senate Bill 463 permanently transfers more than $500 million annually from the highway fund to the general fund. The bill also abolishes the Kansas Endowment for Youth Fund (KEY), the Children's Initiative Fund (CIF), and the Economic Development Initiatives Fund (EDIF), placing all revenue that those funds now receive into the general fund.

The general fund is broke. Income tax revenue was cut so sharply in 2012 that recurring revenue does not begin to cover expenses, even though school funding has been converted to a block grant and many other spending cuts have been implemented, and even after sales tax rates were raised. Lawmakers have already used up general fund reserves. Kansas has no rainy day fund. The current budget barely survives by grabbing large one-time transfers from other funds.

In that situation, what happens in future fiscal years when highway money and children's money routes into the general fund? It all gets sucked up! It all gets put in service of paying off income tax cuts.

• Money designated for bridge repair and highway maintenance-gone.

• Funding dedicated for early childhood programs, Parents as Teachers, and family preservation-gone.

• Revenue set aside for economic development programs-gone.

 

Plus, this bill opens up the possibility of selling the KEY Fund revenue stream by repealing all of the statutes that promise this funding to children. Administration officials have been considering selling-pawning-the revenue stream for cents on the dollar, to obtain a one-time payment that would be yet another short-term plug for the budget crisis.

Proponents of SB 463 tried very hard to sound convincing. They claimed this bill was not something anyone needed to worry about, that the bill would not affect appropriations, but you better believe that it will.

The bill's fiscal note only vaguely outlines what may happen in the future, but includes this phrase about highways:  "it is likely that the scope of the T-WORKS Program would need to be reexamined." What an understatement! SB 463 permanently damages the highway plan, along with children's programs and economic development initiatives.

The bill is a set-up. Vote for this one lawmakers, and you have permanently raided the highway fund, sold off children's programs, and tied your hands on economic development. The governor's people say, "oh no, it doesn't do that," but if this passes, then next year and the year after that, you are going to find out that the fate of Kansas roads and early education programs was sealed with this bill.

This maneuver does not fix the problem caused by unaffordable income tax cuts, it just makes highways and children pay for it.

Game On group will start walking for Kansas schools on Friday

Game On group will start walking for Kansas schools on Friday

Starting Friday and continuing through the weekend, supporters of public education in Kansas will be walking to show their support of education and raise awareness of what they say are attacks by state leaders on schools, teachers and courts.

Game On for Kansas Schools will start its fourth walk to Topeka on Friday from various locations and will conduct a final event Monday that will culminate with a rally at the Statehouse.

“We never intended to do four walks, but we have been compelled to do so as we watch our legislators pit urban and rural, wealthy and poor, and large and small districts against each other rather than addressing the real needs of our students across the state,” Game On for Kansas Schools said in a statement.

The non-partisan group urges parents, teachers, students and community leaders to walk during the event, even if it is only for a short distance.
Walking routes will start in Merriam, Emporia and Manhattan. There will be rallies on Saturday in Eudora and Lawrence. At 9 a.m. Monday, participants will march from across the street from Topeka High School to the Statehouse.

Game On for Kansas has been critical of Gov. Sam Brownback and legislative leaders on numerous school issues, including the current school finance system that has been declared unconstitutional by the Kansas Supreme Court.

More details on Game On for Kansas’ event can be found below:
Here is information on the Merriam/Kansas City Walk:https://www.facebook.com/events/1706647776213977/
Manhattan Walk: https://www.facebook.com/events/1702379576705318/
Emporia Walk: https://www.facebook.com/events/1707081532882919/
Kickoff in Merriam: https://www.facebook.com/events/447073138817581/
Walk Kickoff in Manhattan: https://www.facebook.com/events/780892732044151/
Day 2 Start Rally and Walk in Eudora:https://www.facebook.com/events/898925733557136/
Rally in Lawrence hosted by Educate Lawrence:https://www.facebook.com/events/1133696103310012/
Crossing the Finish Line - Convening at the Capitol:https://www.facebook.com/events/982780118476911/