[Vision2020] MSD financial condition

Mike Curley curley@turbonet.com
Thu, 27 Mar 2003 09:02:33 -0800


<color><param>0100,0100,0100</param>Dale, and others:

Just a couple of points of information for what they are 
worth:

1.  There are two significant voter-determined reasons 
why more cost savings have not been realized by MSD as 
enrollment has declined:  neighborhood schools and class 
sizes.  Parents have voted extra money (by levies) to keep 
4 elementary schools open and to hold class sizes in 
elementary classes and secondary "core" classes in the 
range of 20 - 23 students (average).  There are, of course, 
other economic and political reasons why costs have 
been reduced relatively (in constant dollars) but they 
usually have had less to do with voter decision-making.

Last year, in order to reduce costs and lower the proposed 
levy, MSD "consolidated" West Park and Russell 
elementary schools into a single K-6 program.  No one 
particularly wanted to do that from either an educational 
or community perspective.  Parents, teachers, 
administrators, and the school board were reluctant to 
make that move.  There were those who said voters 
would have supported a larger levy to allow both to 
remain K-6 schools.  Some said an elementary school 
should have been closed altogether and the 4 elementary 
schools consolidated into 3.  In the long run, enrollment, 
state funding levels and perhaps another levy will 
determine whether MSD moves back to 4  elementaries 
(K-6) or whether further consolidation is necessary.


2.  One can say "you cannot askMoscow taxpayers to 
increase property taxes" but the comment contains its 
own contradiction.  It is the Moscow taxpayers (at least 
50% of those who have voted in the past) who have put 
the tax level where it is.  As taxpayers we are an unruly 
bunch.  There are those who believe that there should be 
no public education system (notwithstanding the Idaho 
Constitution's requirement), so they will always vote 
against a levy;  there are those who will vote for nearly 
any levy MSD proposes; and there are a majority who fall 
somewhere between those extremes.  It is very difficult 
for a school board and administration to know what the 
majority will pay to run the district, particularly when the 
multitude may be screaming "I'll vote to fund this 
program, but not that one."


3.  Donovan may have engaged in a little hyperbole when 
he said the district's buildings are falling apart.  That is not 
true as I understand "falling apart" even when it is used 
figuratively.   They are not in a state of significant disrepair 
even individually.  Money IS needed to maintain the 
community's investment in them.  As with most any 
capital asset the cost of repair can multiply when 
maintenance is ignored.  The motor oil commercial that 
ends with "pay me now or pay me later" can aptly be 
applied to the situation.  Every year budgets for  
maintenance, technology (increasingly expensive and 
necessary), and curriculum (books, educational materials, 
staff training to maintain an educational continuum from 
grade to grade) take a hit at the expense of other 
programs.  Sooner or later on of those chickens may 
come home to roost if appropriate funding is not 
maintained.


4.  The district is already looking at the possibility of staff 
reductions for next year.  Programs may find themselves 
with less money, or a few might be cut altogether.  Of 
course, the district could propose another levy and a 
group (as Citizens for Quality Education) may demand 
that one be put on the ballot.  


5.  Salaries and benefits.  Add to point 1 above that staff 
has received salary and benefit increases annually and 
you have a big part of the funding equation.  If the annual 
operating budget is $16M, salary and benefits account for 
about $13.6M of that.  Inflation only applies to the other 
$2.4M.  A 1% s & b increase costs $136,000, which means 
the loss of about 2.3 teaching positions or cuts somewhere 
else in the budget.  Last night's Daily News said that the 
superintendent "warned there also may be a freeze on 
salaries...."  The article wasn't clear whether she was 
referring only to district salaries or to a mandate that may 
come out of Boise.  One thing we know is that if s & b 
increases that money isn't being spent somewhere else.  
Either teaching positions have to be lost (result: increased 
class size &/or more students moved to other buildings) or 
programs have to be cut or operated on less funding.  
Nothing pretty about any of it.


Mike Curley


On 27 Mar 03, at 5:27, Dale Courtney wrote:


</color>From:           	<color><param>0000,0000,8000</param>"Dale Courtney" <<dale@courtneys.us></color>

To:             	<color><param>0000,0000,8000</param><<vision2020@moscow.com></color>

<bold>Subject:        	<color><param>0000,0000,8000</param>RE: [Vision2020] MSD financial condition</bold></color>

Date sent:      	<color><param>0000,0000,8000</param>Thu, 27 Mar 2003 05:27:12 -0800</color>


<underline><color><param>0000,8000,0000</param>[ Double-click this line for list subscription options ]</underline></color> 


Donovan,


A couple comments: 


*	State funding for education has not, not, not been

drastically cut. That's a lie that someone has been feeding

you. State Funding has increased every year since 1989, 
and

is now at 170% of the 1989 funding level. 


*	However, our student enrollment at MSD has been on 
a sharp

decline (390 students; 13% in 5 years). State funding is

linked to the number of students (duh!). 


*	Why has the cost of education significantly in creased

over the last 10 years? Was it to increase our test scores?

The test scores have decreased every year for the last 13

years. In fact, it's down 7 percent. 


*	Can you tell me why total staff has increased 52% 
while

the enrollment in Idaho has only increased 16 percent? 


*	Do you know why the buildings/facilities at MSD are

falling apart? Could it be that MSD slashed that part of the

budget (by 86.2%) while increasing support services 4

percent? What MSD did was to shift out $1,062,259 from

facilities into instruction/support costs. Playing a cup

game by shifting funds doesn't put the blame on the tax

payers? 


*	Riddle me this: Are buildings/facilities fixed costs or

variable costs? Are students fixed costs or variable costs? 


More to ponder. 


I'd like to ask the local liberals to think out of the box

for a while. Look at the numbers and deal with reality. You

cannot ask the Moscow taxpayers to continue to increase

property taxes (mine right at 50% for government school

support) when the enrollment continues to decrease. 


Best,

Dale


-----Original Message-----

From: vision2020-admin@moscow.com

[mailto:vision2020-admin@moscow.com] On Behalf Of 
Donovan

Arnold Sent: Wednesday, 26 March, 2003 22:44 To:

dale@courtneys.us; vision2020@moscow.com Subject: RE:

[Vision2020] MSD financial condition




Dale, 


The reason why education is hurting, regardless of the 5-10

students less per grade between K-12 is four fold:


1) The state  funding for education has been drastically

cut. This means that the local area governments must 
make

for this difference. That means the property owner.


2) The cost of education has significatly increased over the

last ten years, about 100-200%


3) Often times the number of students helps, not hurts, the

education districts because the state divides the amount of

state aid according to the population. If Moscow has a

decrease in population and CD'A, Boise, Eagle, and Sandpoint

have an increase, Moscow get an even smaller percentage of

the state funding pie, this pie is also smaller.


4) The buildings and facilities are falling apart, it costs

a great deal to rebuild and maintain them. 


I really think you need to do more research then looking at

just government documents that are often misleading or

broken up into pieces that don't always seem how they look.

UI books are the worst, but Moscow does not keep the

greatest of records either. Budgets are tricky and

complicated and other only projected costs, a best guess so

to speak. The only numbers that are usually reliable and

understandable are the ones that definitions and are two or

three years. Do you really think we have any idea as to how

many students there will be MSD in 2005 or 2006?


Donovan Arnold