65% Solution and Lesson from New Zealand

The Republican Assembly of Lake County proposed the 65% solution to help with funding Illinois Schools without a tax increase. As I mentioned yesterday, I would like to delve into this a little deeper.

Illinois Schools currently average 59.5% of their funding going into the Education Fund which ostensibly is for the kids. When you look deeper at this though you will find that school construction also goes into this fund percentage. This does skew the numbers for any district in the building process.

For example, CCSD #46 where I live showed only 38% going to Instruction. See the chart below. This is reused from an earlier post.

Percent Expenditure By Function

District State
Year Instruction General
Administration
Supporting
Services
Other Instruction General
Administration
Supporting
Services
Other
2000-2001 29.6 1.7 36.0 32.7 45.8 2.4 32.3 19.5
2001-2002 30.9 2.0 33.0 34.1 45.5 2.5 31.0 21.0
2002-2003 38.3 2.3 31.9 27.5 46.1 2.6 31.6 19.7

Once you remove construction from the equation that brings them back up to around 60%. Now, if you add an additional 5% to that you would be adding approximately $1.8 million to the direct education of our kids.

How are schools supposed to reallocate this money if this is the solution? According to the article this is how it would work:


“Each school board would be empowered to determine how to allocate the additional classroom funds,” according to the proposal. “They would choose to raise teacher pay, reduce class sizes or add additional instructional opportunities. Districts below 65 cents (of the dollar) will need to increase by 2 pennies a year until the goal is reached,” with waivers possible for “legitimate reasons.”

This idea is already being used in New York, Maine, Tennessee and Utah and is being proposed in several others. It is the brainchild of Overstock.com’s Patrick Byrne. Byrne’s website for this is FirstClassEducation.com.

What gets cut to provide this money?


Administration, plant operation and maintenance, food service, transportation, student support (nurses, counselors), teacher training and curriculum and other non-classroom expenditures.

I know many will disagree about whether there is another 5% that can be reallocated in this district. I’ll leave that for another debate.

The 65% solution is not my first choice. It is a choice I would support this instead of a tax increase though. I believe that if you gave school boards the flexibility to reallocate money to the ed fund they would find creative and acceptable ways of accomplishing this without adversely affecting the kids.

I would prefer to see the state relax some of the laws or unfunded mandates as they are called. This would free up money to be better spent by the district themselves. Below are these unfunded mandates. These were taken from Better Funding For Better Schools.


Public schools in the State of Illinois must teach the following:

  • provide a standards-based instructional program in math, reading, social studies, fine arts, science, writing and other areas specified by ISBE. All schools must also teach: good nutrition; CPR; first-aid; drug/alcohol/tobacco abuse prevention; civic responsibility; sex education; bicycle/pedestrian/bus safety; daily physical fitness; consumer education; humanness and individual responsibility; good health care and AIDS prevention; driver training; principles of free enterprise; manners and etiquette; vocational training; economic awareness; Holocaust history/Black history/Women’s history; management of money, property and resources; and pride in work.

In addition, Illinois Public Schools must also:

  • Give specialized instruction for the hard of hearing, the blind, and the neurologically impaired in the “least restrictive environment”.
  • Teach gifted students
  • Conduct eye testing
  • Give inoculations
  • Provide pregnancy counseling
  • Instill morals, ethics, and values while avoiding any mention of religion
  • Search for and exclude all items defined as weapons
  • Help students develop political awareness and know-how
  • Dispense surplus milk and other commodities
  • Perform job placement, provide career information and develop work skills
  • Provide counseling and psychological services for grief and conflict assistance
  • Assist with bilingual language development and assistance in translation for non-English speaking students
  • Counsel delinquents
  • Provide transportation
  • Follow due process
  • Protect student privacy
  • Provide computer literacy
  • Eliminate sexual discrimination and harassment for students and staff
  • Prohibit smoking anywhere on school grounds
  • Assist in bladder control
  • Develop the ability to reason
  • Provide suicide counseling
  • Maintain birth information and age certification data
  • Close school for selected ethnic and national holidays
  • Maintain often extremely costly programs to manage or remove asbestos, lead and pesticides – including notices to the community.
  • Foster integration
  • Ensure civil rights and racial tolerance
  • Detect and report child abuse
  • Eradicate head lice, scabies and other diseases
  • Assist in charity fundraising
  • Serve hot lunch and breakfast
  • Develop an appreciation of other people and cultures
  • Build patriotism and loyalty to the ideals of democracy
  • Build respect for the worth and dignity of the individual
  • Involve parents in the creation and review of student discipline policies
  • Promote an understanding of the heritage of our country
  • Train all staff and provide protection from blood-borne diseases
  • Provide individual tutors for students who are hospitalized or recovering at home
  • Abide by conflicting state and federal accounting standards
  • Develop curiosity and a thirst for learning
  • Develop skills in the use of leisure time
  • Build a feeling of self-worth or self-respect
  • Meet all life safety code provision for school facilities
  • Retain student records for 60 years
  • Administer ISAT and IGAP tests in accordance with ever-changing rules
  • Account to the penny for the spending of federal funds
  • Pay for criminal background investigations for all staff


As you peruse the list, make a note of how many of these things should not be the responsibility of the schools, but that of the parents, like eye test, inoculations, pregnancy counseling, or to develop skills in the use of leisure-time.

Also notice the stupidity of some of the rules, especially the “Abide by conflicting state and federal accounting standards”. Who needs to have school records from 60 years ago?

I won’t continue through the whole list tonight, but you can see there is a lot of regulations and red tape that can be cut here. The biggest one of these is the “Meet all life safety code provision for school facilities”. The state has control over these regulations and they can be changed. Private schools do not have all the regulations that Public Schools have and yet they provide a wonderful education for the kids that attend them. If they are not, they won’t exist for very long.

This brings me to the long term solutions I could support. I will highlight a couple of plans below. With the entrenched nature of the NEA, the AFT and other Public Educational organizations, I do not believe reorganizing Public Education will work. Vouchers and competition are the only way. A paradigm shift must take place to force the Public Education system out of its monopoly status which has made it lethargic and self advocating.

The first one is one I have mentioned before and that is the The Heartland Plan for Illinois: Model School Voucher Legislation. This plan allows for district to opt-in by referendum. Vouchers could be used by any student for the school of their choice, including private schools. Any monies left over could be placed into and Educational Savings Account for future use by the student including college. The plan would also require new standardized tests that are not created by the State Board of Education. This is to preserve objectivity and reliability of the testing for all students. I believe this plan would include home-schoolers as well since in Illinois a home-school is considered a private school by the State.

The second plan is one I just discovered. In New Zealand, they got rid of all school districts and administration. They gave the money directly to the principals to run the schools along with a Board of Trustees elected by the parents of the students. The excerpt below comes from a speech given by Maurice P. McTigue entitled, “Rolling Back Government: Lessons from New Zealand. You can read about his credentials at the beginning of the article. It covers many topics of reducing government size. The highlighting is my addition.


New Zealand had an education system that was failing as well. It was failing about 30 percent of its children – especially those in lower socio-economic areas. We had put more and more money into education for 20 years, and achieved worse and worse results.

It cost us twice as much to get a poorer result than we did 20 years previously with much less money. So we decided to rethink what we were doing here as well. The first thing we did was to identify where the dollars were going that we were pouring into education. We hired international consultants (because we didn’t trust our own departments to do it), and they reported that for every dollar we were spending on education, 70 cents was being swallowed up by administration. Once we heard this, we immediately eliminated all of the Boards of Education in the country. Every single school came under the control of a board of trustees elected by the parents of the children at that school, and by nobody else. We gave schools a block of money based on the number of students that went to them, with no strings attached. At the same time, we told the parents that they had an absolute right to choose where their children would go to school. It is absolutely obnoxious to me that anybody would tell parents that they must send their children to a bad school. We converted 4,500 schools to this new system all on the same day.

But we went even further: We made it possible for privately owned schools to be funded in exactly the same way as publicly owned schools, giving parents the ability to spend their education dollars wherever they chose. Again, everybody predicted that there would be a major exodus of students from the public to the private schools, because the private schools showed an academic advantage of 14 to 15 percent. It didn’t happen, however, because the differential between schools disappeared in about 18-24 months. Why? Because all of a sudden teachers realized that if they lost their students, they would lose their funding; and if they lost their funding, they would lose their jobs. Eighty-five percent of our students went to public schools at the beginning of this process. That fell to only about 84 percent over the first year or so of our reforms. But three years later, 87 percent of the students were going to public schools. More importantly, we moved from being about 14 or 15 percent below our international peers to being about 14 or 15 percent above our international peers in terms of educational attainment.

When I read this, I was very impressed. This is exactly where we find the American Public Education system today. We are continually spending more and more money and not getting the same results. The status quo has to be changed here in Illinois and across this Country. In International Competitions we continually are falling further and further behind. We need to reverse that trend. To do that, we will need to be bold and creative like New Zealand. We have to make everyone realize that the current Public Education system is working for themselves and not the children. When we do that we can make the politicians listen. We can make a difference in short order, but the key is breaking the Public Education monopoly and replace with a system that is efficient, workable and affordable, but most of all produces results that all of us can be proud of.

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3 Responses to “65% Solution and Lesson from New Zealand”

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