Governor's new plan leaves district underwhelmed

By Janelle Randazza


PEABODY—Under a plan that would increase state aid to Massachusetts’ school districts by $164 million, Peabody will see a $432,161, or two percent increase—a number that is leaving Peabody administrators stunned and chagrined.
“I was absolutely disappointed when I heard the amount of funding Peabody would be receiving. Gov. Romney talked about it in terms of income levels and communities in need. Peabody is a good middle class community. It is not a wealthy community; it needs help from the state,” said Superintendent of Schools Nadine Binkley, who says she was hopeful at first but very disappointed when she saw the final numbers.
The plan, unveiled last week by Gov. Mitt Romney, is part of an education-funding overhaul, which would be the first major change to the state-aid formula since 1993. Romney's $25.2 billion fiscal 2007 budget proposal, also calls for money for laptop computers for students, teacher merit pay and extended school days, and offers a general increase in Chapter 70 funds, a state aid funding plan, which favors communities that face increasing enrollment. According to the state Department of Education, enrollment in Peabody schools has stayed fairly consistent over the past five years, with the greatest increase shown from 2000-2001, where the district showed an increase of 124 students.
Under Romney’s plan, Topsfield is the funding winner in Essex County, with a 37 percent increase in state school aid. Lynnfield came in fourth in the area with a 15 percent increase, just after Middleton’s 19 percent and Georgetown’s 16 percent gain.
According to Roger Hatch, DOE school finance programs administrator, Romney’s plan will bring about equity between school districts and it will correct a long-standing problem for districts that had high property taxes but low income levels, such as seacoast communities on Cape Cod.
“Since fiscal year 04, there was no measure of ability to pay in the formula, and that is what the general public rightfully expects… There should be some reflection in the formula for a community to be able to fund its schools,” said Hatch.
Mayor Michael Bonfanti worries that state administration isn’t looking at the big-picture. With Peabody responsible for a $777,000 increase in retired teacher health cost this year, in addition to last year’s $600,000 increase—and trying to remain competitive employer in a state that pays teachers well above the national average—Peabody’s expenses are growing yet its funding remain almost flush to previous years.
“I understand the population and total increase, but it seems the blue-collars are getting the short-end of this. I keep hearing from the administration that they want to improve on education but the funding doesn’t seem to be there,” said Bonfanti.
Geoffrey Beckwith, executive director of the Massachusetts Municipal Association, thinks that Romney’s plan, while imperfect, makes an important first step in getting Massachusetts state funding back on track.
In 2002 the Commonwealth provided 41 percent of funding to school districts while today it only gives 36.6 percent. Beckwith makes the point that even with Romney’s proposed $164 million increase in state aid a majority of school districts will still receive less education aid than they did in 2002. The reason being that in 2002 Massachusetts experienced some of the deepest cuts in education funding in the country, cutting per-pupil support for K-12 education by more than 14 percent, more than any other state in the country, between fiscal 2002 and 2004.
“The Commonwealth was one of only four states that reduced education aid during that time. Communities are still struggling under a massive withdrawal of state aid and… there have been consistent problems with the funding formula. Adjust the number for added cost and inflation and cities are going to be receiving less than funding than they did five-years ago,” said Beckwith.
Yet with Peabody still working to increase student achievement levels and meet adequate Annual Yearly Progress (AYP) requirements, some question who will pick up the difference as Peabody tries to move forward. In addition, the two percent increase in state aid will leave the district short of the three percent contractual increase in teacher salaries; the 14 percent increase in health insurance and increased energy costs.
“We have goals we need to meet and we know we can bring this around but it takes resources to do that,” said Binkley, who worries that the district will not have the funds to sustain the kinds of programs it needs.
“We have miles to go before we can declare success in dealing with the whole issue of state aid. People need to see Chapter 70 in that context and everyone needs to see the budget debate this year as an important first step. This is not crossing the finish line; instead it’s at the starting line of where we need to be,” said Beckwith.
Bonfanti worries about a district suffering in the meantime and property taxes rising to such a level that life-long residents will need to move.
“If property tax is the only way to raise revenue and the state doesn’t give the funding you are used to, then what more can you do? You have to provide for your kids,” said Bonfanti. “I just think it’s ironic that Peabody and other districts should have to pay to give towns like Topsfield and Lynnfield a break. This money is coming from the state, so we are all paying into it.”