School Funding Facts Figures Associated School Boards of South Dakota Brian Aust :: Director of Communications Decemb

1. School Funding Facts & Figures Associated School Boards of South Dakota Brian Aust :: Director of Communications December 17, 2007

2. What we�ll talk about Numbers, Rankings, Statistics Comparing South Dakota to the nation and other states Why are teachers paid poorly in South Dakota? School district budgets South Dakota�s budget

3. Why are we talking about it? Inadequate funding is a major problem for South Dakota schools Adequacy Study: State short by $133 - $400 million More than $20 million in opt-outs Program cuts Hiring and keeping teachers A need to expand the discussion Look �outside our box� to examine trends, see how other states are reacting to the challenges facing education in an NCLB world Create urgency and expectation to act

4. The data we use School finance data taken from U.S. Census Bureau figures Most accurate, current data available Released earlier this year, data from 2005 Other education data taken from National Center for Education Statistics Other data taken from reliable government sources.

5. Revenue Realities South Dakota ranks last in the nation in state per-student investment in K-12 education

6. Revenue Realities

7. Revenue Realities

8. Spending Realities South Dakota ranks 31st in the percent of funds spent on instruction

9. Spending Realities

10. Spending Realities

11. Rural Realities Other rural states invest significantly more on K-12 education than South Dakota

12. Rural Realities WAIT A MINUTE! South Dakota ranks 41st in expenditures� why do our public schools need more?

13. Rural Realities

14. Rural Realities Education systems in low spending states do not look like South Dakota�s system Serve many more students, higher student-teacher ratios Why does South Dakota spend more? South Dakota: Only one characteristic is recognized as requiring more funds to educate a student Attending a small school Small school adjustment (additional $800) Sparsity factor (to qualify: 0.5 students/sq mile) SFR looks at national-level sparsity.

15. Rural Realities Low spenders are not as rural as South Dakota SD Comparison: Assumes Wilmot School District could realize the same economies of scale as the Aberdeen School District Wilmot: $7,652; Aberdeen: $6,404 Just like economies of scale work for some South Dakota districts, economies of scale work for states too Simply: South Dakota is too rural to be compared to the low spenders in the nation.

16. Rural Realities

17. Rural Realities

18. Rural Realities

19. Rural Realities What does this tell us: Other states embrace their rural nature and provide public education with resources to overcome economies of scale Rural states spend below the national average, but significantly higher than South Dakota Rural states have different needs South Dakota, which contributes nearly $1,900 per student less than other states, does not adequately fund K-12

20. Regional Realities South Dakota�s low cost of living does not compensate for low teacher salaries

21. Regional Realities Why compare South Dakota to surrounding states? Competing for limited supply of teachers Since 2005, some surrounding states have devoted significant increases to K-12 North Dakota: $100 million, more to come Iowa: $178 million for teacher salaries Wyoming: $40,000 average starting salary Facing declining enrollment, just like SD

22. Regional Realities

23. Regional Realities

24. Regional Realities

25. Regional Realities South Dakota receives less per-student and spends less per-student than surrounding states Lowest state revenue Lowest average teacher salary

26. Regional Realities $56 million: If we want to bring teachers up to a regional average But, just looking at average salary is an incomplete comparison Multiple factors influence teacher salaries Adequacy study comparison included starting salary, experience, education, and COST OF LIVING

27. Regional Realities

28. Regional Realities $32.4 Million: If we wanted to pay teachers comparably ALL FACTORS CONSIDERED Supply/Demand Demand for teachers is high Supply is short Salaries become issue Low salaries hamper South Dakota�s ability to compete Application pools dwindling, staff positions going unfilled

29. State Aid Realities Low state funding is a barrier to hiring, keeping teachers

30. State Aid Realities South Dakota�s state aid formula is the primary source of school district�s discretionary revenue Increasing teacher salaries requires additional state aid

31. State Aid Realities After excluding federal revenues, the state aid formula makes up 84% of a district�s discretionary revenue. Vast majority of fed funds aren�t discretionary

32. State Aid Realities Salaries and benefits comprise 81% of SD districts� expenditures Increases in salaries and benefits cannot exceed the increase in the state aid formula over an extended period of time If they do, the district�s budget will inevitably go in the red

33. State Aid Realities Relationship is not only theoretical Between 1998 and 2005, South Dakota�s average teacher salary as increased by 22%, or 2.9% percent per year. Over the same period of time, the per-student allocation, the amount guaranteed by the state aid formula, has increased 19%, or 2.5% per year.

34. State Aid Realities So�If South Dakota ranks 41st in the amount spent on K-12, why are South Dakota teachers paid 51st in the nation? State aid is based on a low per-pupil amount that doesn�t reflect the needs of our rural education system� �and the state provides the lowest amount of per-student aid in the country� �meaning districts have less discretionary revenue that can be used to give increases to all teachers. Local property tax payers carry too much of the burden already � it�s time for the state to provide additional funding for K-12 education.

35. State Budget Realities Percent of the state budget devoted to K-12 has declined over the past decade.

36. State Budget Realities Since 1998, state lawmakers have shifted approximately 7 cents of every state dollar away from K-12 education and toward other areas of state government. * Percentages calculated using general appropriations bills, retrieved from Legislative Research Council. * Percentages include general state aid to education and state aid to special education.

37. State Budget Realities Overall, education is less of a priority than it was a decade ago K-12�s share of the education budget is lower than a decade ago If the relationship stayed the same from 1998 to 2008, K-12 could have approximately $764 more per student today (approx. $92 million). Note pagesNote pages

38. Closing Comments

39. Closing K-12 Education in South Dakota is not adequately funded First step is to realize the problem � help parents, community members and legislators understand Statistics only go so far � tell your story. South Dakota must embrace our rural nature and provide districts with adequate resources to overcome the challenges of delivering education in South Dakota. �Don�t tell me your priorities, show me your budget.� K-12 needs to be a priority again

40. Closing Comments Watch for School Funding Realities in the coming weeks Additional realities, more graphics, and expanded data.

41. Closing Comments Questions Brian Aust ASBSD Director of Communications 605.773.8382 baust@asbsd.org