Schools, Politics, and Common Sense

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Michigan Needs to Help Schools With Pensions
2007-10-25 19:01:00
Although the state has provided a welcome break to schools in the form of a temporary retreat on the pension contribution rate (this year is 16.72% versus last years requirement of 17.74% as the result of "revaluing" the pension investment portfolio - click here to see letter), the problem is, and will continue to overwhelm school budgets - next year the requirement is projected to be over 20%, for Birmingham that's about $2.1 million (or $266/student) ADDITIONAL pension cost.The following chart illustrates the burden that the unfunded pension and health care liabilities are placing on all school budgets. Note the striking increase in the unfunded burden. These costs are simply given to schools with no corresponding increase in funding.Proposed and actual changes in state law may help alleviate the problem in the longer term; new legislation includes increased employee contributions to the pension plan and extended vesting periods prior to the ability to collect full benefits. The...
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Technology in the Birmingham School District
2007-10-08 22:32:00
I've taken some time to put this post together and it shows just a small overview of a report given to the board last May. Everyone was very impressed with how some of our teachers are using the technology resources to expand learning opportunities for our kids. If you have about 8 1/2 minutes to spare - I've packaged some of the highlights (but not all, the presentation was about 45 minutes). I am convinced that what we are seeing is only tip of the creative iceberg, teachers will continue to expand the utilization of "21st Century" learning tools. These are types of initiatives we are supporting at BPS with board policy that will have a positive impact on students, teachers, and the wider community. The enthusiasm exhibited by these teachers reflects how effective application of new technology raises everyones energy for learning. Enjoy the video and please leave a comment.
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The Budget Shell Game
2007-10-08 15:15:00
I've resisted posts about the state budget because local school districts still don't know what our funding is going to look like. In Birmingham we budgeted for lower total funding in this school year. That is a reflection of past experience, projections of slightly lower enrollment, and a complete lack of confidence that Lansing will actually fix it global budgetary issues.Even after the so called budget compromise, it continues to look like a shell game for school funding. There seems to be calls for yet another attack on districts like Birmingham, known as hold harmless districts, as a way to provide funding for other districts. I've posted how we are funded and the attack on 20J funds reflects a basic ignorance of the complex mechanics of school finance. Regardless, please write your representatives (contact list here) and encourage them to protect our district from unwarranted attacks on our budgets - ask them to protect 20J funds.
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Birmingham Schools - A Message Revisited
2007-10-07 04:37:00
Why am I running again for the Birmingham Board of Education?It's a question my friends ask because they mistakenly assume that service on the board is a thankless job. It is a hard job that takes a significant amount of time and dedication (for no pay) but it's far from thankless. The energy and passion of this district's professional staff is contagious, and I see the results every day in my children. I believe my education and professional background in finance is a meaningful addition to a talented board, especially at this time of economic turmoil.So the simple answer is this: by serving on the board I'm making a meaningful contribution to something that really matters to my family and me - keeping our school system great.
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It was true then, it's true now.
2007-10-02 03:47:00
Last year I submitted the following commentary in support of our millage renewal, it was less a request and more a reminder of what we all want from our schools. Voters passed the renewal with a 74% margin. Once again, voters will be looking to the bottom of the ballot, and in the case of Terri McCardell for a pen to write in her name, for two seats on the Birmingham school board. It's an important choice and worth the effort to learn where the candidates stand. I hope you'll find my views as expressed in this blog worth supporting with one of your two votes.Amidst sometimes hostile criticism of public education, Birmingham Public Schools enjoys an abundance of extraordinary accomplishments and benchmark performances. Our district demonstrates just how well public education can be done. Our goals are clear and our children’s accomplishments are great. The continued stewardship of the district mission rests in the hands of local voters and taxpayers who support BPS schools. The...
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Lansing and Pensions: Waking Up To Reality
2007-09-21 21:16:00
An editorial today in the Detroit Free Press by State Representative Lorence Wenke talks about the "Surpise?" that the state pension funds (PSERS and SERS) are in the hole to the tune of $20 - $40 BILLION dollars. What rock have these people been hiding under? I'm just a reasonable person who got elected to a local school board; about 3 months after my election in 2003 the state teachers pension time bomb was obvious to me. I've been harping on the issue for some time and by my research shows that PSERS (Michigan's teacher pension fund) is underwater by a total $24 billion (that's counting the retirement AND health care benefits). That pension deficit has cost local school budgets nearly $1 billion a year because the state has pushed that funding problem onto the backs of Michigan's children. How? By consistently increasing the mandated school district contribution to PSERS without increasing the per-student funding to cover the cost. It's a classic shell game.Now the legisl...
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The Public Employee Pension Mess
2007-08-05 20:06:00
I've been watching this drama unfold over the last 5 years. I've posted about the issue in this blog and I've seen countless stories about it in many national publications. Now the New York Times has published a very good story by Mary Williams Walsh on how bad the problem is - and it's much worse than many have thought.Follow this link to a short commentary from Andrew Samwick, a Dartmouth professor who has written on pension problems and social security. A short comment from Mary Williams Walsh:It is hard to know the extent of the problems, because there is no central regulator to gather data on public plans. Nor is the accounting for government pension plans uniform, so comparing one with another can be unreliable.But by one estimate, state and local governments owe their current and future retirees roughly $375 billion more than they have committed to their pension funds.And that may well understate the gap: Barclays Global Investments has calculated that if America’s st...
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Leadership in Birmingham Public Schools
2007-06-20 16:11:00
When seeking input as to what qualities were valued in a new leader for the Birmingham public schools one person suggested that the person should be able to walk on water and squeeze blood from a turnip. As impressive as those skills would be, others suggested the leader should be: collaborative, committed, a strong communicator, decisive, team-oriented, visible, community focused, innovative, and politically savvy. Much of the feedback has been shaped by what people have seen in Dr. John Hoeffler, who after 17 years as superintendent of the Birmingham School District is retiring. It is no coincidence that BPS is consistently one of the top performing districts in Michigan year after year – results like this don’t happen by accident – they happen because a committed and passionate team finds ways to keep improving on what works. Dr. Hoeffler has guided a team that sustains its passion and vision for the benefit of our students. He will be missed. So here are some thou...
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Birmingham Public Schools - Character Education Matters
2007-06-04 23:50:00
The Birmingham Public School District (BPS) has many over 8,200 reasons to be proud, and now there is another accomplishment to add to the list. Out of 110 schools recognized nationally, EIGHT Birmingham Schools have been granted the 2007 Promising Practices Award from the Character Education Partnership (CEP). The schools are: Berkshire, Beverly, Bingham Farms, Derby, Greenfield, Pembroke, and West Maple. This recognition is remarkable, and is enhanced by the addition of Birmingham Covington School’s recognition as a National School of Character winner – one of only ten such winners in the nation. This award carries a $20,000 grant which will be awarded at CEP’s 14th National Forum on Character Education. The theme for the event is “Investing in America’s Future.” Character education is part of the BPS strategic plan and every school in the district has embraced the plan goals. We can all be proud of the recognition while celebrating the dedication of our staff, teac...
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Why Real Reform Never Happens
2007-05-30 06:23:00
Seems as if politicians everywhere are running away from responsibility; they just hand problems to their kids. As highlighted by Andrew Samwick from the pages of the Wall Street Journal: Pension Crash LandingMay 29, 2007; Page A14When Congress passed a broad pension reform last year prodding companies to get their retirement programs in order, it seemed too good to be true. Now we know it was.That's the lesson of an amazing bit of corporate welfare the Senate tucked into the Iraq war supplemental last week. Last year's bill included a hard-fought political compromise: Carriers that agreed to a "hard freeze" of their pension plans would be allowed to use a higher interest rate in calculating their plans -- which would reduce their net liabilities. The idea was to discourage airlines from buying union peace by running up their pension tabs, which they might later dump on taxpayers. A few airlines, such as Northwest and Delta, took this medicine.Their competitors, namely American a...
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Why Michigan Schools Are In Financial Trouble
2007-05-23 23:56:00
Michigan’s budget is in a full meltdown. Just a few days ago the reported budget for the current year ballooned to $800 million, that’s $200 million more than prior worst case estimates. The picture is focused on the poor revenue generation via tax collections and is exacerbated by a general malaise in the auto business. The impact on schools is being played out through a proposal to cut funding (the political phrase is “proration”) to the tune of $122 per student (and that number may grow to $210 per student with the addition of $200 million to the current deficit). What does not get proper attention is why schools can’t stay ahead of cuts even as they announce record cuts in local school budgets. The reason is clear – it’s all about the healthcare and pension costs. Take a look at Birmingham’s numbers: Change In Healthcare Cost Change in Pension Cost Total HC & Pension Change Enrollment HC/Pension C...
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Movement On Fixing Pensions?
2007-05-23 21:10:00
Finally, some forward progress on expense relief for schools. As part of the current budget negotiations the House is considering a bill (HB 4530) to “revalue” the assets in the teacher’s pension fund. This bill has already passed in the Senate. In reality this bill represents an accounting trick that will lower the school districts current pension contribution. This is welcome relief but make no mistake – this is a temporary fix. The fundamental problem continues to persist – extraordinarily generous healthcare benefits coupled with fewer new teachers and more retried teachers churning through the system. The bill will defer $190 million in current year expense along with $93 million in lower contribution to cover interest only on the amortization of the $24 Billion accrued liability. This only buys time – it does not fix anything. But it most assuredly a helps, so here’s to you Lansing – now make sure you don’t drop this ball or we all suffer. One thing t...
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GET READY FOR SMOKE AND MIRRORS FROM LANSING
2007-05-18 21:11:00
Newly released economic data will be spun by Lansing as good news. DON’T BELIEVE IT! Although collections will be higher than last year much of this is due to timing differences caused by when the infamous Single Business Tax (SBT) is actually collected. Not only is the temporary impact of this timing difference likely to return to trend in June, but future collections will be worse than anticipated. The reason is simple – Michigan is not creating new non-manufacturing jobs. Given the millstone of extraordinarily burdensome healthcare and pension costs schools will be forced to sacrifice more jobs on the inflexibility alter in Lansing. Not only is there NO MOVEMENT on containing healthcare and pension costs; irresponsible and (apparently) economically incompetent legislators like Andy Meisner in the House have passed legislation designed to ensure NO ALTERNATIVE cost savings measures could be pursued outside of the restrictive, expensive, and politically tainted collective barg...
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Dear Lansing: Michigan Continues to Burn, Stop Fiddling
2007-04-26 17:55:00
That the state economy is suffering is known to all. The inexcusable fact is that Lansing (Governor and Legislature) continues to abdicate the responsibility of making the hard choices. Everyone, including the MEA, must come to the table to COMPLETELY RESTRUCTURE Mich igan ’s system of government, its process of school funding, its out sized benefit packages, and its broken tax system. Casting stones at everyone else won’t work; the question should be what can I do, not what can I get? School districts are pleading for help with healthcare costs and pension costs – and what do we get from Lansing – NOTHING. These twin costs are driving school districts to the brink of insolvency – don’t believe me? Look at what these costs have done to GM, Ford, and DaimlerChrysler. As I’ve noted, the teachers pension fund has a $24 BILLION unfunded liability, and the trend not improving.Schools are looking at an end of year funding cut of $34 to $125 per student. For districts with cash...
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Legislators Gone Wild Part 2 – iPod Madness!
2007-04-16 23:13:00
Don’t get me wrong; I think the appropriate application of technology is not only inevitable, it should be a required component of all curriculum planning and long term educational strategies. I also applaud the initiatives of professionals exploring ways to make the delivery of education more engaging. However, with Michigan facing the reality of a legislature that postures in support of education while maneuvering to cut school budgets in the last month of the school year I’m perplexed by what played out this weekend regarding iPods. The technical web site ars technical sums it up best (although some of the commentary could have been cleaned up): Michigan kids won't get iPods after all By Justin Berka | Published: April 13, 2007 - 04:45PM CT There are going to be a lot of sad children in Michigan today. In fact, the volume of tears may be so great as to make the lake rise. And they're all crying because the big mean lawmakers aren't going to give them iPods after all. ...
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Legislators Gone Wild!
2007-03-29 17:15:00
Today we find the honorable Andy Meisner (District 27) submitting a bill that would allow teacher unions to negotiate a ban on privatizing bus, custodial or food service operations. Why a teacher union should seek to control this type of issue is beyond me. And let me be clear, I’m not suggesting that privatization is a panacea for school districts. But it should be an option open to exploration by local school boards. I also know that privatization is not typically contracted with unionized organizations, but the operative question is this: why would a school district explore the privatization option? The answer is always related to cost control or cost containment. And what would school districts want to do with the potential savings? They would want to provide more funds to help pay for TEACHERS! What a concept, districts seeking to save money so that they can continue to support their core mission – the education of Michigan’s children. Apparently, Representative Meisner b...
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The $24 BILLION Problem in School Funding
2007-03-06 17:41:00
The political talk in Lansing is beginning to show signs of coming to grips with a long overdue reality check by restraining their health care costs. As it relates to Michigan public schools, the elephant in the living room is represented by the twin issues of health care and pension funding. The health care issue is something all Michigan residents can relate to; we've all suffered from the slow adjustment in confronting the cost of this formerly "invisible" benefit. When it was just something added to the pay package consumers never had to worry that they may overuse, abuse, and misuse the service. Now, with co-pays, high deductibles, health savings accounts, and real world budgeting requirements the true cost of staying healthy is being brought into focus. In the long run, maybe that's not a bad thing. In the short run institutions that don't adjust will suffer the consequences (see any major auto supplier or OEM in this state for proof). The system in Michigan is stacked agai...
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Detroit News editorial missed the mark
2007-02-14 17:54:00
In last Sunday’s editorial page the Detroit News blasts school districts for finding ways to support student choice while making room for the much needed, and long overdue, updated high school graduation requirements http://www.detnews.com/apps/pbcs.dll/arti cle?AID=2007702110309>>. Like many districts, Birmingham has always had graduation requirements which substantially exceeded the state requirements; even with the new standards BPS exceeds the state mandate by 12 credits (16 to 28). The new requirements did compromise our flexibility between application of science and math credits; that difference required the addition of an additional math course to fit the state model. Much of the logic of moving to a trimester is focused on the ability to offer students unique high school electives like any of our 50 modern languages, or 25 engineering electives, or 30 business technology classes. None of these offerings make a “mockery out of [the] high school graduation...
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TAKE ACTION NOW!
2007-01-24 22:42:00
Write your state representatives now and demand that they take action now. Our schools are under assault and our teachers and their students are in peril. Lansing has kept its collective head in the sand for too long. Ask them to support a series of bills (for the Senate, ask them to introduce legislation similar to what the House Bills show). Use the links to the right for example email or letter... First, support Support House Bill 4116 which attempts to keep this years promised funding in place (it is aimed at preventing the proposed mid-year cut of over $214 per student). Second, support House Bill 4107 which is a move towards fixing the $23 Billion deficit in the state teacher’s pension fund, a deficit which threatens the financial stability of the entire school system. Third, ask legislators to reconsider bills that bring transparency to insurance programs so true costs can be revealed and cost effective alternatives can be considered. In the past these bills versi...
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Help Solve School Cost Problems – Part One, Healthcare:
2007-01-24 22:41:00
A history lesson for Birmingham parents: Cost s increases from 2003 to 2007 driven by healthcare and pension obligations run amok (based on a $62.9 million salary budget). Salary Increase Health care Increase Pension Increase $616,776 (0.99%) $2,690,000 (22.48%) $2,980,000 (36.83%) Why did salaries grow at less than 1%? Simply put, the wage structure brings new teachers in at low salary levels, with experienced teachers retiring at higher pay levels earned through increases tied to improved skills (higher learning), achievement of specialty certifications, contract increases, and increases tied to seniority. Will we always experience low salary growth through turnover? No, the district has experienced a long period of well matched turnover in the teacher ranks. Last year the district offered, for the first time ever, an early retirement incentive which is anticipated to save hundreds of thousands of ...
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Help Solve School Cost Problems – Part Two, Pension Plan:
2007-01-24 22:40:00
A history lesson for Birmingham parents: Cost s increases from 2003 to 2007 driven by healthcare and pension obligations run amok (based on a $62.9 million salary budget). Salary Increase Healthcare Increase Pens ion Increase$616,776 (0.99%) $2,690,000 (22.48%) $2,980,000 (36.83%) Do you want to take benefits away? No, all existing participants will stay in the pension program. The legislation cited above will provide a new alternative for NEW teachers; it is not directed at teachers in the system today. Will the legislation eliminate pensions? No, it will protect current participants but it will direct new teachers into a 401-k type program. What’s the problem with the current system? First, the state pension program (MPSERS) is over $23 billion under funded on current pension promises. Second, the cost to cover that short fall is taken out of the school aid fund but is treated as an unfunded m...
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Legislative Contact Data
2007-01-01 16:18:00
Use the following to contact your representatives:Governor Jennifer M. Granholm P.O. Box 30013 Lansing, Michigan 48909 Phone: 517-373-3400 Constituent Services Phone: 517-335-7858 Fax: 517-335-6863 Follow this link to e-mail the governor: http://www.michigan.gov/gov/0,1607,7-168- 21995-65331--,00.html Village of Beverly Hills, Village of Bingham Farms and Village of Franklin residents: State Senator: Gilda Jacobs (D-14th) Room 1015, Farnum Building P.O. Box 30036, Lansing, MI 48909-7536 Lansing phone: 517-373-7888 Toll free phone: 888-937-4453 Lansing fax: 517-373-2983 Local fax: 248-545-0394 e-mail: sengjacobs@senate.michigan.gov State Representative: Chuck Moss (R-40th) Room SO889, House Office Building P.O. Box 30014, Lansing, MI 48909-7514 Lansing phone: 517-373-8670 Toll free phone: 877-707-6677 Lansing fax: 517-373-5868 e-mail: ChuckMoss@house.mi.gov City of Birmingham, Bloomfield Hills and ...
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Cost Containment Bills
2006-11-30 20:41:00
As I've posted about in the past, our Legislators can have a significant impact on local school cost structures with well crafted legislation (that in itself can be a significant task). There are several bills under consideration that can help us next year, and in the years to come – Senate Bill s 895, 896, 897, 898 and House Bill 4947 are the bills that target health care costs and pension costs directly. These bills would give vital health insurance information to school districts and employees, make it easier to create self-insured pools, and amend the retirement system for future employees to save districts money and employees jobs (the state of Michigan did this for its employees in 1997). Different versions of these bills have been floating around for years with no action taken; now is the time to act if we hope to contain costs in an environment where there is little hope for increased funding. ACT NOW, contact your legislators and urge them to vote in support of these bill...
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Difficulties in Special Education – The Adversarial Process
2006-11-28 22:07:00
In the November issue of Leadership Insider, Christopher Borreca looks at the current state of special education and specifically at the adversarial aspects of IDEA (The Individuals with Disabilities Education Act). Mr. Borreca is a member of National School Boards Association Council of School Attorneys and has extensive experience with IDEA and other special education legislation. Mr. Borreca laments the path taken by many parties seeking the promise of a free appropriate public education (FAPE). That path is the process of adversarial confrontation which can develop when educators and parents disagree on the educational programs offered to their children. As Borreca points out, “the real problem may not reside in the emotionality of the issues, the expenditure of limited public dollars, or the behavior of zealous advocated who defend their clients’ positions. The real dilemma may be the very system itself [IDEA], which was created to assist in obtaining adequate services fo...
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Michigan Votes Custom Score Card!
2006-11-15 16:52:00
You can now create a custom score card to see how legislators vote according to your personal view on issues. It's a great program and something everyone should use to regularly check-up on how their state legislators are doing. Visit the site here or use the link on the right side of this blog.
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Why Proposal 5 Failed
2006-11-10 17:32:00
To paraphrase an old campaign slogan - It's all about the costs stupid.While a guarantee in funding sounded like a nice idea, the obvious exclusion of cost controls was noticed by the public and several editorial writers. As I've pointed below, over the last four years salary costs have increased LESS THAN 1%, while health care and pension costs have increased 22.5% and 36.8% respectively. That is unsustainable. Efforts to reform the pension system and the health care system must be undertaken at the state level. This is not just about saving costs, it's about making sure that our employees are safe too. I want the best for my teachers - but not at the expense of having to cut their jobs and gut my programs just so third party providers can feed at the trough - it's not fair, and it's not right.
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Time to VOTE!
2006-11-08 01:49:00
Ok, it's now time to vote. Remember to support the millage renewal and don't get frustrated like this man. He smashed a $5,000 voting machine with a cat!
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The Politics of War - Different Voices
2006-11-01 23:16:00
Regardless of your position on the justification for the war in Iraq, we are there now. It has transformed itself into a root cause of celebration for "jihadists" and a terrible struggle for our troops and the ordinary citizens of Iraq. The transformation has also expanded the arguments for or against the continued effort. This article (Only choice on war is to win or lose it) has a direct take on what's at stake now (ignore for the time on what we were told was at stake at the start). It is an interesting reflection. Beyond that view is the opinion of James Fallows, a writer for the Atlantic. In his feature article (subscription required) Fallows takes a pragmatic view of what has happened and proposes a strategy to allow for a exit to the war. In essence he points out we have won the war - but only if we view it in original context.He argues that the essence of the change is this: because of al-Qaeda's own mistakes, and because of the things the United States and its alli...
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Thankful for good leadership
2006-11-01 16:30:00
See this article to understand how a system can fail (not an issue in our district). The key to a working district: “People in the organization need to understand government and management roles and the consultative roles of parents and the community,” says Kathleen P. Macy, principal associate with TeamWorks International Inc., an organization that counsels troubled school districts.We have the good fortune of having many, many supportive constituents in the district that keep pushing for the best practice and support. Remember, people who disagree or object to what happens in our schools have the same objective as we all do, keep kids first. That is our common conversation and in respectful disagreement we can fashion better results.
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Pros and Cons of Looping
2006-11-01 16:26:00
A recent discussion of "looping" provides a basis for discussion on a practice which has some applications in our district (the 1st & 2nd grades classes at Pierce) and the 3/4, 5/6, 7/8 classes at Covington. See the discussion here.Flexibility is key, say experts. By Alexandra R. Moses A second-grade teacher for years, Melissa Fleischer wanted to know how first-graders were prepared, so she moved back a grade with the idea of staying with her class for two years.Then she thought she’d just stick with them to third grade. Then fourth. Then fifth.“We just sort of kept rolling,” says Fleischer, an instructional coach at Bailey’s Elementary School for the Arts and Sciences in Falls Church, Va. “The community we had established with the kids was just amazing.”The practice, known as looping, has grown in popularity over the last several years as tougher federal standards pushed educators for new ways to boost student performance. In a looping class, the teacher advanc...
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