School spending research argues for override
Several weeks ago when Mayor Higgins was holding budget meetings at each ward, it occurred to me that I carried around a couple of assumptions: First, I assumed that in spite of Proposition 2½, city spending had grown a lot over the years and second, I assumed that an override was a rare event that probably indicated a management problem.
Having recently retired from management positions (mostly), I also realized that I had the time to look into how the city spends its money. I decided to focus only on school costs, the largest single portion of the city budget. I spent 30 bleary-eyed hours on government websites - mostly the Massachusetts Dept. of Education website - digging through data and occasionally talking with the state's School Finance Administrator in Boston.
I learned three key things that I want to pass along:
1. Overrides are normal. Since Proposition 2 ½ went into effect in 1982, 1,798 overrides have been passed by Massachusetts cities and towns. This is because the law does two things: A) it forces a city's tax levy to grow at less than historic inflation, thereby shrinking in real terms, and B) it recognizes that shrinkage eventually cuts services voters want and the law therefore gives voters the override as a way to decide what servivces they want.
The U.S. Dept of Labor's Inflation Calculator shows that growing 2 ½ percent per year actually results in a 17.4 percent shrinkage compared to inflation between 1982 and 2008. This is largely because 22 of those 26 years have had inflation greater than 2 ½ percent. The current Northampton override attempts to recover only about one sixth of what has been lost to inflation.
2. We already spend less on our schools than others do. In 2008 Northampton spent $11,614 in total for each pupil. The Massachusetts average was $12,489. In recent years, this pattern holds: The average Massachusetts town spends 7.5-8 percent more on their kids than we do on ours. Some of this comes from the fact that, at $54,002, Northampton teachers in 2008 were paid more than $10,000 less (almost 19 percent less) than the Massachusetts average which is $64,143. Also noteworthy, adjusted for inflation, Northampton teachers were paid almost 9 percent less in 2008 than they were in 2004.
3. We spend less than we used to on most kids. The state changed the way it gathers data in 2007, so to make historical comparisons, we have to use what they call "Program Costs"' rather than the "Total Costs" just cited for 2008. Northampton's "Total Per Pupil Program Cost" has averaged an increase of about 1 percent above inflation each year. However, from 2000-2007, what the state calls ¿Regular Per Pupil Program Cost' has actually gone down 4 percent adjusted for inflation. After much digging, I learned that what's going on is that costs that are mandated by the state are going up while spending on "regular" kids is going down. For example: from 2000 through 2007 what the state calls "SPED Per Pupil Program Cost" in Northampton has gone up 95 percent , or 58 percent adjusted for inflation. At about $22,000 each, this cost is now more than triple what is spent on ¿regular pupils', which is $6,945. Similarly, what the state calls "Out of District Per Pupil Program Cost" (which includes Charter Schools) has also gone up much faster than inflation and, at $15,438 is more than double what we spend on regular students. If we say "No" to the override, we will still have to pay these state mandated costs.
My wife and I no longer have school-aged kids. We'll be voting yes only because it's the right thing to do. Someone once paid for us to go to school. The world today is far more complicated and requires far greater technological and cultural literacy than the world our generation grew up in. It is hard for me to believe that we in Northampton would choose to do any less than prior generations did for us.
Northampton resident Kevin Lake worked for Pricewaterhouse Coopers, was a management consultant and ran small nonprofits.











Comments
Re: Truth
The link takes you to $500,000 the City is looking to spend on CPA projects. The City also plans for $1.2 million in property buyouts near the dump. This is just two projects of wasted money. Now ask why the City is threatening to close schools and stop school sports when wasteful spending like this exists. The City needs to prioritize and not tap tax payers everytime they want more money and avoid prioritizing. Lets have a debate about priorities with the money we have and not be coerced by politicians and unions.
http://www.northamptonma.gov/gsuniverse/httpRoot/comm/2008_First_Round_C...
You're still a little short...
So, congratulations! You've identified 1.7 million dollars in "wasteful" spending (according to you). By that account, you are still over 4 million dollars short.
You remind me of the braniac here who was blaming our problems on a maintenance worker at the parking garage making $38,000 a year. His solution? Fire the maintenance worker. Great. Now just do that 200 more times and all of our problems will be solved.
Re: Little Short
It took me 15 minutes to find $1.7 million in wasteful spending. What if I actually spent several hours?
You also miss the point. Tax payers are not responsible to bail this mess out. Lets have a discussion about prioritization and decide what we want to fund and not fund.
It's simple...
...we want to fund a well-staffed police department, a well-staffed school department, a well-staffed senior center, and a well-staffed fire department.
You, apparently don't.
And you, apparently didn't bother to read the article above. Why is it so hard to understand that for 22 out of the last 26 years, our property taxes have lagged behind the rate of inflation. This is what caused our deficit, not "government waste". Coupled with cuts in state aid, we are suffering from the "Perfect Storm" financially. Essentially, we haven't paid the bill in full, so YES, the taxpayers ARE responsible for bailing out this mess because we created it when we voted to put Prop 2 1/2 in place. The chickens have come home to roost for all of the free-market, no-tax Reaganomic devotees. It's time to step up and take responsibility for the commons which we all share. Police, fire, social services, and education are the responsibility of EACH AND EVERY ONE OF US whether or not you have children in school, whether or not you've called the cops at 3am, and whether or not you use senior services.
Furthermore, as stated above, Northampton is near the bottom of the list on per-student spending in the schools. What is there to say about that but shame on us? We live in one of the most socially progressive cities in this state and we are short-changing our children. What a joke we've become.
As far as the time you've spent finding 1.7 million in "waste" and the boast that you can find more, then my challenge to you, my friend is DO IT. AND DO IT NOW! So far, all I've seen from the No side is weak, petty arguments. GO ON, find that extra 4 million dollars and I'll gladly vote NO.
However, we won't hold our collective breath. All of the No people like to claim the city is wasting too much money, but I haven't seen ANYONE on the NO side who can close the gap, it's just too large. When you factor in the devastating cuts in our state aid from WonderBoy Romney and the more recently cuts by the Patrick administration, we are hurtin' plenty. Contrary to public opinion, Claire Higgins had little to do with digging us into a SIX MILLION dollar hole.
Meanwhile the YES side HAS done the research and has provided cold hard numbers and facts. The problem is, it's too easy (and lazy) to bitch about "government this and government that". The No people haven't provided adequate DATA (you know, numbers and facts) to support their position. Pure and simple. Their entire argument boils down to "Don't Tax Me."
Mr. Kevin Lake, the author of the piece above worked for PriceWaterhouse Coopers, an esteemed accounting firm and while I cannot attest to his accounting prowess, he claims to have spent over 30 hours in research of this topic. I would say he comes pretty damn close to an expert on the subject, and not some crabby old man yelling at the teenagers to get off his lawn.
Relax
Treat this like the private sector and cut costs. Prioritize, freeze wages and cut wasteful spending. Can't give pay raises when the business is in the red.
You obviously have stake in this to be calling me a crabby old man. Don't steoretype, because I am 35, have a MBA and work in business. This needs to be handled like a business decision, because you can't pull money out of the pockets of residents during a recession. Maybe you should think about others. Stop the scare tactics (police will not come to your house at 3am)about what will happen if tax payers don't cave in.
Dude
Please re-read my last sentence. I was stating that Kevin Lake was an expert and not a crabby old man. That comment was NOT directed at you. Don't get so defensive.
...and yes, I have a huge stake in all of this...a job that will be eliminated if the override fails to pass. And a house that will be lost without a job...
...boy I wish all I had to lose was $160 a year. I'd gladly pay it to keep my job. I can scarcely afford it either, but I'd gladly pay it if I thought my neighbor was going to lose her job, too.
Re: Dude
Sorry to hear about your situation. You should really confront your fellow City employees who refuse salary freezes and reductions during a recession. Their sacrifice would save your job. I would also confront the City over the CPA situation and land purchases, because I would rather see that money spent to keep you employed. Once again, sorry for your situation.
Why can't you understand??
Some of us are just barely able to keep up with our bills! We CANNOT afford this override! Do not insult me by insinuating that by voting no, I don't think our schools, fire and police departments should be properly staffed and funded. You come across as being very ignorant to those of us who may not earn as much money as yourself. I am not interested in researching to find numbers and facts that pertain to the state and city funding, nor do I have the time. Right now the only research I am willing to do is how to stretch my income to keep my family well fed and my bills paid! Those are the ONLY numbers I need to decide my NO vote!
Not a moral issue
For some of us it's not the moral issue you are standing on your high horse to profess but a money issue. Some of us really can't afford to keep up with our expenses now never mind increasing them. Please do donate what you can to the city schools instead of asking the people who can't afford to do so.
I'm sad that none of you can
I'm sad that none of you can afford to spend $160 a year for a tax increase. Can ANY of you for ONE MINUTE think of someone besides yourself who may be losing $40,000 when they lose their jobs, and potentially their homes? But I guess that's the 21st century Republican mantra - "I've Got Mine, Screw You." Man, the selfishness of some people never ceases to amaze me.
...and bsi75 - I wasn't calling YOU an old crabby man, I was saying that the author of the story was an expert and not a crabby old man. YOU need to not get so defensive, friend.
Re: selfishness
If a teacher, cop or other city employee is laid off because the override fails, they should not blame the taxpayer. They should blame their fellow employees who refused to take a pay freeze or decrease to save colleagues. This is what people are doing in the private sector to save jobs. They should blame the City for poor budgeting and question some current expenditures (e.g. CPA, land buys etc.).
People are also not selfish if they need that $200 for their own bills, retirement savings or kids college tuition. This would be a permanent tax increase.
Thank you
Thank you, thank you, thank you. FINALLY some well-reasoned, FACT BASED discussion on the override and not a bunch of cranky, out-of-touch Higgins-haters.
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