budget basics

Pre-K expansion will be pricier than expected, budget shows

Mayor Bill de Blasio pushing pre-K applications in Staten Island. (Ed Reed/Mayoral Photography Office)

Expanding pre-kindergarten will be more expensive than expected, Mayor Bill de Blasio said Thursday as he revealed a spending plan that includes additional funding for pre-K and the city’s school-turnaround program.

The 2016 budget includes $409 million for the city’s growing pre-K program, which is expected to enroll more than 70,000 four-year-olds next year. The city had estimated the cost at $340 million in February, a figure de Blasio said had grown because of increased demand and the steep cost of finding private space for pre-K classrooms in areas where the public schools had none to spare.

“It’s more popular than even we knew it would be, so we’re hitting the high end of our numbers,” de Blasio said. “We know the costs are going to be higher than anticipated, but it’s absolutely worth it.”

Nearly 69,000 families applied for a pre-K seat last month, according to the city. The borough with the biggest increase in applications was Queens, where many neighborhoods have perennially overcrowded schools.

“The physical build-out is proving to be a challenge in the sense that we have to find a lot more space in a number of neighborhoods where there’s school overcrowding, so we didn’t have the option to go into our existing schools and find additional space,” de Blasio said.

The city is also set to spend $108.3 million on the “Renewal” turnaround program next fiscal year, up from $30.7 million this fiscal year, officials said, a sign that the program will shift toward more intensive support and student services next year. Last fall, de Blasio promised to invest $150 million in 94 low-performing schools over three years to pay for extra services for students and training for staffers.

Officials added that the education department had repurposed more than $40 million in federal funds to use for struggling schools. That is in addition to another $34 million being allocated to boost the budgets of those schools, and other schools with low attendance that are getting extra services in order to become “community schools.”

Struggling schools will also receive funding to offer more academic help to overage eighth graders, vision screenings for students, additional science programs, and access to a substance abuse prevention specialist, according to budget documents, and 63 new guidance counselors will head to “high-needs” schools.

“We are going to just keep adding elements to turn these schools around,” de Blasio said.

The city isn’t allocating extra money for its after-school programs, which it also expanded to all middle schools last year. In February, the city said it would spend $190 million to serve 100,000 students; on Thursday, it said it would only spend $163 million but serve 107,000 students.

The city will allocate funding for 444 new programs in the Public School Athletic League, a significant increase. The city has faced ongoing criticism for the options available to students at small schools, prompting some recent student protests.

Meanwhile, the results of an experiment offering free lunch to middle-schoolers this year haven’t been convincing enough to expand it to other grades, de Blasio said. Middle schools will offer free lunch again next year to allow for a “more thorough test.”

“The results are mixed so far in terms of the impact it’s having, meaning the additional number of children who are taking advantage of it,” de Blasio said. “It’s not been that large so far.”

City Council members and Speaker Melissa Mark-Viverito have called for extending the program to all students, as have advocates, who say the pilot program was effective. In March, Fariña told the City Council that there was a 6.4 percent increase in the share of students eating free lunch at the 291 middle schools that were part of the program.

“Universal free school lunch in middle schools this year is proving to be an amazing and well-documented success. It is a no-brainer to ensure that all 1.1 million students are included in the June final budget,” said Liz Accles, executive director of Community Food Advocates.

Overall, the education department’s operating budget for 2016 stands at $21.7 billion, which includes $533 million more from the state than the city received last year.

The City Council will hold hearings on the budget before a final version is adopted in June. An education committee’s hearing is scheduled for May 28, and the new fiscal year starts July 1.

A new floor

Colorado’s new minimum wage means raises for child care workers and tuition increases for parents

PHOTO: Ann Schimke
Loveland's Teaching Tree Early Childhood Learning Center was one of the first two centers in the state to get a Level 5 rating in the Colorado Shines rating system.

Child care teachers and assistants absolutely deserve the raises that come from Colorado’s new minimum wage of $10.20 an hour, their bosses say, but the pay increases also mean that many providers will pass on the new expenses to tuition-paying parents already stretched thin by child care costs.

“I don’t know how much more parents can pay,” said Diane Price, who heads a nonprofit network of seven centers in Colorado Springs.

In some parts of the state, early childhood advocates also worry that the raises mandated by the minimum wage hike will cause some workers to lose public benefits by pushing their income just above the eligibility threshold — making it harder, not easier to make ends meet.

In a field working to professionalize its ranks, pay its workers more, and raise awareness about the educational and economic value of quality child care, many observers say the minimum wage increase is a step in the right direction.

“It’s an important move,” said Christi Chadwick, director of the “Transforming the Early Childhood Workforce” project at the nonprofit Early Milestones Colorado. “The thing I struggle with is we’re still not getting people out of poverty and paying them on par with the public school system.”

Price, the president and CEO of Early Connections Learning Centers, said, “Shame on us that we even have to have this discussion that early educators are in a category that pays minimum wage.”

The latest minimum wage increase, which took effect Jan. 1, is the second of four annual increases mandated by a ballot measure approved by Colorado voters in 2016. The last step of the phase-in process will boost the minimum wage to $12 in 2020.

Colorado is among 29 states — most in the northeast and west — that have set a minimum wage higher than the federal rate of $7.25 an hour, according to the U.S. Department of Labor.

Child care providers here say advance planning and clear communication with parents have helped them incorporate raises into their budgets.

Price, who raised tuition slightly at her centers last August, said she anticipates a budget hit of about $600,000 over the four-year phase-in period.

But that’s not just because her lowest paid staff members are getting raises to comply with the minimum wage law. Like many other child care directors, she’s giving raises across the board out of fairness to veteran employees.

Price said she didn’t want entry-level employees to catch up with those who already hav a Child Development Associate credential or an associate’s degree.

Heather Griffith, who leads the for-profit Young Peoples Learning Center in Fort Collins, is taking the same approach. Her whole staff, except two brand new employees, have received raises.

She’s already sent out a letter notifying parents that tuition will go up 6.5 percent on February 1 – that’s an additional $16 a week for a full-time preschool slot. It’s the second of three tuition hikes Griffith will institute during the minimum wage phase-in period.

While the higher costs are hard on parents, “it’s a lot tougher for these teachers to survive on non-livable wages,” Griffith said. “I’m 100 percent in support of this minimum wage hike.”

Griffith hasn’t gotten much pushback over the impending tuition increase. The thriving economy helps. Also, she said, parents like the care her centers provide and wouldn’t be able to find it for much less unless they switched to unlicensed care, which is mostly unregulated.

Anne Lance, who heads the non-profit Teaching Tree Early Childhood Learning Center in northern Colorado, said she began planning — and frontloading — wage increases for all staff shortly after the 2016 ballot measure passed.
Currently, her entry-level teaching assistants start at $10.50 an hour even though she’s only required to pay $10.20.

“I had to get way ahead of the game … so in a couple years when it gets closer to that $12, it’s not going to kill me,” said Lance, who operates one center in Loveland and one in Fort Collins.

While the center’s two sites serve many low-income children who qualify for state child care subsidies or state-funded preschool slots, there are some tuition-paying families in the mix, too.

It’s those parents who may feel the sting of the minimum wage increases over the next couple years. Lance said she’ll keep her tuition increases to a modest 3 percent this year, but may have to jump up to 5 percent in 2019 and 2020.

On average, lead teachers with several years of experience at Teaching Tree make about $13.50 an hour. While that’s above the minimum wage, it’s not much to live on for employees on their own or those who are single parents, Lance said.

In Colorado, about one-third of child care teachers qualify for some kind of public assistance to cover housing, food, health insurance, or child care costs, according to a 2017 survey of child care workers in the state.

Chadwick, of Early Milestones, said during visits last fall to the San Luis Valley and southeastern Colorado, early childhood leaders explained that some child care workers were quitting their jobs due to fears they would lose government benefits when minimum wage-related raises took effect.

To alleviate such concerns and make child care a profession that pays a living wage, more substantial raises are needed. But Chadwick and other leaders don’t expect further funding to come from a state-level effort.

Instead, they say it will be locally-funded initiatives — already underway in some Colorado communities — that pick up the slack.

“We have to pass things like mill levies and taxes that support early childhood,” said Griffith, of Young Peoples Learning Center. “We have to do it. We have to say yes to these things if what we want is a community that has educated kids ready to go into kindergarten.”

Investment strategy

Here are the initiatives Memphis’ education philanthropists will focus on in 2018

PHOTO: Matt Detrich/The Indianapolis Star
A charter leader from Indianapolis, Marcus Robinson is now CEO of the Memphis Education Fund, a philanthropic collaborative that invests in education improvement initiatives for Memphis schools.

A Memphis philanthropic group has shed its “Teacher Town” name but still plans to spend this year recruiting new teachers while also investing in growing the city’s single-site charter operators.

Unlike similar organizations in other cities across the country, the Memphis Education Fund plans to center its search locally — by helping local universities and groups prepare teachers for the challenges of urban education.

Originally called Teacher Town, the fund was created in 2014 by Memphis education leaders and local philanthropists with a goal of transforming Memphis into a destination city for talented teachers. That vision built on a major investment by the Bill & Melinda Gates Foundation to improve teaching in the city.

In 2016, the group adopted a broader goal of improving all schools; brought in a new leader, Marcus Robinson, from Indianapolis; and joined Education Cities, a national collective of local groups seeking to reshape schools in their cities

In part inspired by changes that have taken place in Indianapolis, where Robinson had worked as a charter leader, Education Cities coordinates local groups advocating for the “portfolio model,” a vision in which cities have more charter schools and let district schools operate more like charters.

Robinson told Education Cities a year ago that his next step for Memphis would be “to unite everyone around a common set of operating principles, expectations, and evaluations to create a level playing field for each operator to perform optimally.” This appears to be in line with the portfolio vision, which aims to give all schools flexibility to operate as they see fit, while holding them equally accountability for results.

But instead of bringing the Shelby County Schools district and local charter operators closer together, 2017 saw them waging open competition for students.

For 2018, Robinson is tackling priorities that are not likely to inflame divisions. The fund will continue to focus on principal training, along with helping single-site charter organizations, boosting reading skills among the city’s youngest students, and recruiting new Memphis teachers.

“We’re hell-bent to fill classrooms with teachers,” said Robinson, pointing to elementary schools as having some of the greatest need.

Memphis will need an estimated 3,600 new teachers by 2020, said Lesley Brown, who directs how the fund invests its money to attract, develop and retain talent for local schools.

Rather than recruiting teachers from outside of Memphis, Teacher Town’s original focus, Robinson said the fund is strengthening partnerships with local universities and teacher preparation programs, such as one launched at Rhodes College in 2016 with the help of a $7 million gift from the fund.

The Memphis Education Fund receives support from several local philanthropies, including The Pyramid Peak Foundation and the Hyde Foundation. (Chalkbeat also receives support from Hyde; read about our funding here.)

Robinson added that the fund also is ramping up its support for single-site charter operators, such as helping teachers implement new literacy curriculum at Memphis Delta Preparatory Charter School and STAR Academy Charter School.

“There’s less of an appetite for national charter organizations to move into Memphis,” he said. ”The next phase isn’t national CMOs (charter management organizations), but how do we encourage single-site schools to evolve.”

The group has doled out such grants to charters as part of a larger effort to boost student reading levels and develop teacher training for Core Knowledge Language Arts and KIPP Wheatley.

“Early literacy is a huge focus,” Robinson told Chalkbeat. “When we look at the test scores, early elementary scores are horrific. What’s the root? Access to quality literacy instruction.”