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Indiana School Consolidation 
Developments (Pg. 1)

School Consolidation (Pg. 1, incl. index) (Pg. 2) (Pg. 3, incl. 2009 bills) (Pg. 4) (Pg. 5, 2010 General Assembly)

Introduction (9/13/08) - Consideration of school consolidation in Indiana is beginning to emerge as a "hot topic," thus, a special web page has been created specifically on this. Proponents of consolidation view it as a means of reducing administrative overhead costs. This topic was brought into sharper focus when it was included as one of the twenty-seven recommendations in the Kernan-Shepard Report, "Streamlining Local Government: We've Got To Stop Governing Like This." 

Kernan-Shepard Report Recommendation #11 says:
Reorganize school districts to achieve a minimum student population of 2,000. Establish state standards and a county-based planning process similar to that established in 1959 legislation. (Supporting data for this recommendation will be found in the Report.)

However, there were developments occurring around the state even prior to the above Report being released. Since then there have been more. One of the most recent developments occurred last month with the release of the White County (i.e. Frontier, North White, Tri-County and Twin Lakes) Consolidation Study, a 137 page report. The Lafayette Journal and Courier reported on this August 27th and September 12th.

Additional developments regarding school consolidation will be published in the weeks to come.

Mitch Daniels Wants School Districts Consolidated (Howey Politics, 10/7/08) - "...Daniels said he intends in the next legislative session to 'move out of the 19th Century and into the 21st Century' by seeking to pass 24 of the 27 Kernan-Shepard Commission recommendations (including #11 above) still on the table. Three were passed in 2008 by the legislature..." (more)

IU Study Doubts That School Consolidation Will Lead To Improved Achievement And Meaningful Financial Benefits Consistently Generated (IU, 10/16/08) - "School consolidation does not appear to improve student achievement, according to a new report by Indiana University researchers. Neither are meaningful financial benefits consistently generated from consolidation..." (more)

Gov. Daniels Says Forced School Consolidation Not On His Agenda (11/17/08) - After Gov. Daniels' staff had visited with the school superintendent of a southwestern Indiana school system as well as with several of the superintendent's colleagues Daniels followed up with a letter to the superintendent.

The letter, dated October 9, 2008, says in part, "I have said there is no 'magic number' of students when it comes to considering consolidation of small school corporations. Nor will I make forced consolidation part of my agenda. I do believe that all efforts up to and including consolidation should be considered when it comes to offering a rich curriculum and giving community members the maximum value for their tax dollar."

Which Lawmaker's Agenda Includes Forced School Consolidation? (11/19/08) - Forced school consolidation for some school systems may not be on Governor Daniels' agenda (at least his "public" agenda), however, that doesn't preclude it being on some lawmakers' agenda. In fact the Louisville Courier-Journal predicted this in its November 17th article. "Also, lawmakers are expected to consider proposals to consolidate some local government offices, eliminate township government completely and force some school consolidations." However, the article says a bit of caution was encouraged by State Senator Vi Simpson. "Simpson – who takes over the Senate Democratic caucus from Sen. Richard Young of Milltown – warned Gov. Mitch Daniels and chamber officials not to try to go too far in consolidating local governments and schools. 'There may be a few things we can agree on and get done,' she said. 'But don’t bite off more than you chew.'" (more)

From 1,008 Township Assessors To 13 = CONSOLIDATION; Next: Schools Are In The  Crosshairs (11/26/08) - The Ft. Wayne Journal Gazette published "Lawmaking Preview: Legislature's Upcoming Session Will Be Eventful" in its November 23, 2008 edition. The following is from that article. For the entire article click here.
Marilyn Schultz is executive director of Mysmartgov.org, an alliance of interests working to implement the report’s (Kernan-Shepard) recommendations. She said last week she was encouraged by the voters’ response in townships where assessing duties were put to the question.

“We think we have some momentum from our great success on Election Day,” she said. “A year ago, there were 1,008 township assessors in Indiana, and today we have 13.”

As a former state budget director, Schultz knows the budget-writing task will be foremost on lawmakers’ minds, but she hopes to drive home the point that government must “squeeze the absolute most services from the dollars we have,” insisting on greater efficiency and accountability.

Bills are now being prepared to encompass each of the Kernan-Shepard recommendations, save for the assessing and welfare funding changes already implemented. No legislative sponsors have yet been identified, but Schultz said there are lawmakers willing to carry them all, even the school district consolidation measure that will undoubtedly draw the most fire.

Possibility? Merging Services With Other School Districts (retitled, The Rochester Sentinel, 12/3/08) - The following article, written by Deb Howe, Rochester School Superintendent, appeared in The Rochester Sentinel on November 29, 2008. (Related actions by Caston School Board will be found here and here.)

Schools focus: Savings

CASTON, ROCHESTER, VALLEY
GET GRANT TO STUDY EFFICIENCY

As presented to area school boards in September, the three school districts serving Fulton County students – Caston, Rochester, and Tippecanoe Valley – were awarded a grant by the Indiana Department of Education to investigate ways we might work together to better serve students while being more fiscally efficient through the sharing of curriculum/programs, facilities, operations, personnel, etc. 
The evening of Thursday, Nov. 6, 2008, members of the Merging of Services Oversight Committee, consisting of six members from each school district, listened to presentations by four vendors who previously submitted proposals to conduct a Merging of Services Study. After meeting with each of the four vendors, it was the consensus of the group to recommend to each school corporation’s Board of School Trustees that Administrator Assistance be approved to conduct the Merging of Services Study.
Each Board has now approved Administrator Assistance and they will begin work immediately, meeting with superintendents and school boards while collecting data and conducting interviews with a variety of groups within each school corporation including community members and business leaders. Within the next two months, you may be contacted by a representative of your school corporation or Administrator Assistance to ask for your participation. Please understand you are not required to participate and may decline, however, the more varying thoughts, suggestions, or concerns that are shared, the better the study will be. Progress reports will be made to the superintendents in March and April with a final report to be delivered in May.
 
Again it is important to realize the purpose of this study is to seek ways the three corporations may be able to collaborate or partner to save money in providing student programs, transportation services, building maintenance, facilities management, or office support functions. By redirecting the money saved to other cost centers, it will be used to enhance the educational environment, improve student transportation, or support student programs.
Thank you!
 

(The following is reprinted from the December 20, 2008 Indianapolis Star and includes Daniels' recommendation that school systems with less than 1,000 students, such as Caston, be forced to consolidate. Pertinent info in this article about school consolidation is here and here and here.)

Daniels to push for local government reforms

Topping the list: county executive, cutting elected posts, school mergers

By Bill Ruthhart
bill.ruthhart@indystar.com

Indiana's county commissioners would be dumped in favor of a single county czar, hundreds of other elected officials would be eliminated and the state's smallest school districts would be forced to consolidate under government reform proposals Gov. Mitch Daniels endorsed Friday.

Just as quickly as Daniels rattled through many of his 20 recommendations to change the structure of local government, the opposition was lining up to fight what the governor called "a set of changes that are long overdue in Indiana."

County officials said they don't want to give up their elected positions. School boards stressed that they oppose forced consolidation.

And House Speaker B. Patrick Bauer said the General Assembly has more pressing matters to consider next year than "an academic's view of how government should operate, without any consideration given to whether such ideas are practical, or even feasible, in the real world."

Most of the proposals were based on recommendations made a year ago by the Commission on Local Government Reform, a panel Daniels appointed. It was chaired by former Gov. Joe Kernan and Indiana Chief Justice Randall T. Shepard.

Daniels listed four of the recommendations as his top priorities. They are:

Establishing a single, elected county executive to replace the current three- commissioner approach while giving county councils full legislative authority.

Eliminating the elected positions of county recorder, treasurer, assessor, surveyor and coroner and placing the county executive in charge of appointing those positions. County sheriff, clerk and auditor would remain elected positions.

Eliminating township government and transferring all of those responsibilities to the county executive.

Forcing school districts with fewer than 1,000 students to combine their central office operations with another district, unless they already are a countywide district. After such consolidation, no high school may be closed for at least five years.

"We are an outlier among the states," Daniels said. "We have more of almost everything -- taxing units, subdivisions and politicians. It's more than we need, more than taxpayers can get service for and certainly more than we should be paying for."

Daniels said he will push the recommendations in three to five bills in the 2009 legislative session.

Bauer, D-South Bend, said lawmakers would be better off focusing on passing the state's budget during a time of declining revenue, finding ways to slow Indiana's growing unemployment and helping the 80,000 Hoosiers who have lost jobs in the past year.

"Helping them out should be a priority for state government in tough economic times. These people are asking me, 'What are you going to do to help?' " Bauer said. "They are not asking me, 'When are you going to get rid of township government?' "

Daniels argued otherwise.

"They have that exactly backwards," he said. "It is because resources are going to be so tight that we cannot afford not to take the changes that will protect taxpayers and improve the quality of services for the citizens of our state. Now is exactly the time."

Cutting commissioners

One of the top changes Daniels will push for is eliminating the system of three county commissioners in favor of one county executive.

"There are not three CEOs in any company I know. There are not three commanding generals of any army I know. There are not three governors," Daniels said. "A single, accountable executive, I think, is the starting point for many of the other reforms that would help."

David Bottorff, executive director of the Indiana Association of Counties, said his group is opposed to the idea.

"We think the three-commissioner system works well, because it offers greater input from the public and a greater diversity of backgrounds to build a consensus at the executive level. There isn't just one person making the decisions."

Township government

Daniels also pressed for doing away with the state's 1,008 township governments, each of which has a board and a trustee.

"The level of government we call townships has outlived its day. It was perhaps well-suited 150, 160 years ago to a small, frontier state, but not to today," he said. "There are 31 states that do without them altogether, and there are only a handful of states that have more units of government than we do.

"It is really time to center on the county as the proper unit of government for those local services."

Under his proposals, Daniels also would have the county executive appoint the recorder, treasurer, assessor, surveyor and coroner -- positions that currently are elected. In this recommendation, the governor did not go as far as the Kernan-Shepard commission, which also recommended that sheriffs, clerks and auditors be appointed instead of elected.

The state's townships and counties are sure to fight this recommendation, too.

Bottorff said electing these positions "allows local citizens to choose who is going to carry out that state law for them."

School consolidations

The original Kernan-Shepard report recommended that school districts with fewer than 2,000 students should be forced to consolidate. Daniels dropped that number to 1,000 and said the focus should be on combining the central office operations of school districts.

Daniels said he didn't want to eliminate schools, just "overhead and the back office."

"In the interest of our children, we have too many school bureaucracies in this state, and there is simply no arguing for some below a certain size," he said. "We do not need to be spending money on superintendents and assistants and a whole array of administrative services that easily could be done at a higher level."

The result, he argued, would be more dollars going directly to the classroom.

Frank Bush, executive director of the Indiana School Boards Association, wasn't convinced.

"The only thing he's really doing is eliminating a school board and a superintendent, which isn't a high-efficiency kind of move because the expenditures related to those two entities basically are minuscule," Bush said. "But if you leave the buildings in place, you're still going to have to operate them and you're still going to need the administrative services in place."

Support and opposition alike

While the interest groups directly affected by the proposals pledged their opposition Friday, many others expressed support, including the Indiana Chamber of Commerce, Professional Firefighters' Union of Indiana, Indiana Association of Realtors and members of the Commission of Local Government Reform.

Still, Noblesville Mayor John Ditslear, who serves as executive director of the Indiana Association of Cities and Towns, predicted Daniels would face tough sledding on many of his proposals, especially school consolidation.

"I think he's right about the schools, but it's a gutsy move on his part. It's political suicide, because everyone loves their school district," said Ditslear, a former school board member. "It will be challenged, but I think all of this is going to be challenged."

Perhaps the biggest challenge will come from state lawmakers, many of whom have either previously held the elected positions Daniels wants to eliminate or are close to officials who still do.

"It may be a problem," Daniels acknowledged. "But I really believe better government will prevail over old friendships."

Additional Facts Topping the list

A commission appointed by Daniels last year proposed 27 changes aimed at streamlining Indiana government. Daniels has made some changes to the list and is now stressing several items as the most significant. They include:
Establishing a single, elected county executive. Daniels thinks the "buck never really stops" under the current three-member county commissions, and a single executive would provide better accountability. Doing away with commissions would leave county councils with the power to approve budgets and other legislation.
Transferring property assessment, poor relief and other township government duties to the county executive. Daniels says 31 states operate without township governments, and only eight have more than Indiana's 1,008. Many townships are just too small, in terms of area, assessed value and population, to provide cost-effective public services, he says.
Giving the county executive the power to appoint the assessor, treasurer, recorder, surveyor and coroner. Sheriffs, clerks and auditors would remain elected positions. Those who would be appointed fall into what Daniels sees as mainly administrative jobs that could best be performed by professionals, creating better accountability.
Reorganize school districts to achieve a minimum student population of 1,000. The smallest districts in Indiana, Daniels says, offer far fewer Advanced Placement courses, foreign languages and advanced math/science courses than those with more than 1,000 students.

On the Web
Daniels' legislative proposal can be found at www.in.gov/portal/news_events/33813.htm (see #11 in the article for school consolidation).

All School Systems With Less Than 1,000 Students Achieve Adequate Yearly Progress (AYP; No Child Left Behind) (1/30/09) - Beginning with the 2002-03 school year, The No Child Left Behind Act of 2001 (NCLB) has required schools to show annual improvements in the academic achievement of the overall student population and of identified student subgroups within the general population, including economic background, race and ethnicity, limited English proficiency and special education.

AYP designations for Indiana school corporations and schools are determined by student achievement and participation rates on the Indiana Statewide Testing for Educational Progress-Plus (ISTEP+) in English/language arts and mathematics; student attendance rates (for elementary and middle schools); and high school graduation rates (for high schools). Under NCLB, schools must make AYP in all student groups in order to meet AYP. The goal of NCLB is for all students to achieve proficiency in English/language arts and mathematics by 2014. (more AYP)

The first table (green highlight) in the next article lists the 48 school systems with less than 1,000 students. All 48 systems made Adequate Yearly Progress (AYP) for 2007, the most recent information reported on the DOE website. AYP info can be accessed by clicking on the system name in the table and then "AYP Results." Dewey Township Schools AYP results are here.

School System Size Does Not Determine Ratio Of “Classroom Dollars” To Total Educational Funding (Russ Phillips, 1/20/09)

As I explain below I believe Governor Daniels has made only a superficial review of data that causes him to recommend the consolidation of smaller school systems. Furthermore, a serious and complex matter such as this requires a thorough review of a multitude of factors that should be taken into consideration.

Governor Daniels is pushing for mandatory consolidation of school systems with less than 1,000 students and is doing so for two major reasons. In his State of the State Address he mentioned the need to begin spending the education dollar more efficiently” and that he considers it “totally unacceptable” that only 61 cents of every education dollar (61%) is spent in the classroom and that he wants “to move tax dollars out of the back office and into the classroom.” Daniels bases the 61 cents on the “Student Instructional Expenditure Report for 2006-07 School Year” that was issued by the Office of Management & Budget. Links to individual school corporation results are here. An abbreviated version of the Report with summary information on each school system is available here. The Entire Report may be found here (Note: very large file - 26MB/1258 pages)

Daniels says that consolidation will result in students having the opportunity for more advanced placement courses as well as advanced science/math and foreign language courses. However, it should be noted that research indicates, “Consolidation has no proven positive impact on student achievement and may negatively impact student achievement.”

The Governor’s contention that smaller school systems use dollars less efficiently in terms of getting dollars to the classroom is flawed (see tables below) and incorrect. In the above referenced Report school expenditures are reported in one of four categories:

            1) Student academic achievement expenditures – examples include teacher 
                salaries, principals, speech pathologists, media services, and textbooks

            2) Student instructional support expenditures – guidance counselors, nurses,
                curriculum development, superintendents, school boards, and technology

            3) Overhead and operational expenditures – legal services, business support,
                maintenance, transportation, food service, and athletic coaches

            4) Nonoperational expenditures – school construction, debt, interest,
                and lease rental

NOTE:Student Instructional Expenditures” were defined in the Report as the sum of expenditures under Category 1 and Category 2.  

 

In the table below, highlighted in green, are the 48 school systems with less than 1,000 students of which all except 12 meet or exceed the statewide average of 61% of educational dollars being for “student instructional expenditures.” Of these 12 only three are less than 55%. (The “55%” was selected arbitrarily.)

            Indiana School Systems With  Less Than 1,000 Students
DOE Id = IN Department of Education School Corporation Number
Enr = Enrollment for 2008-09 school year as reported by DOE here
Instr % = ratio of “student instructional expenditures” to the overall educational dollars spent for the 2006-07 school year

*School System

DOE Id Enr Instr %
Argos Community Schools 5470 670 64
Attica Consolidated Sch Corp 2435 926 63
Barr-Reeve Com Schools Inc 1315 747 69
Blue River Valley Schools 3405 806 66
Cannelton City Schools 6340 280 81
Cass Township Schools 4770 248 80
Caston School Corporation          2650 772 62
Clinton Prairie School Corp 1160 999 53
Cowan Community School Corp 1900 713 54
Crothersville Community Schools 3710 589 63
Daleville Community Schools 1940 672 60
Dewey Township Schools 4790 154 79
East Gibson School Corporation 2725 996 62
Edinburgh Community Sch Corp 4215 873 70
Eminence Community School Corp 5910 535 61
Frontier School Corporation 8525 831 61
Hamilton Community Schools 7610 568 60
Jac-Cen-Del Community Sch Corp 6900 961 66
Lanesville Community School Corp 3160 676 63
M S D of New Durham Township 4860 878 62
M S D Shakamak Schools 2960 910 74
Medora Community School Corp 3640 266 72
New Harmony Town & Twp Con Sch 6610 203 69
North Vermillion Com Sch Corp 8010 766 59
North White School Corp 8515 985 57
Northeast Dubois Co Sch Corp 2040 979 64
Oregon-Davis School Corp 7495 722 67
Orleans Community Schools 6145 832 63
Randolph Eastern School Corp 6835 990 50
Randolph Southern School Corp 6805 629 67
Rising Sun-Ohio Co Com 6080 947 76
Rockville Community School Corp 6300 889 59
Shoals Community School Corp 5520 671 64
South Central Com School Corp 4940 860 63
South Henry School Corp 3415 847 68
South Newton School Corp 5995 947 58
Southern Wells Com Schools 8425 784 68
Southwest Parke Com Sch Corp 6260 933 60
Southwestern Con Sch Shelby Co 7360 768 61
Springs Valley Com School Corp 6160 992 67
Tri-County School Corp 8535 788 60
Turkey Run Community Sch Corp 6310 612 61
Union School Corporation 6795 438 62
Wes-Del Community Schools 1885 798 62
West Central School Corp 6630 926 71
West Washington School Corp 8220 933 59
White River Valley Sch Dist 2980 859 66
Whiting School City 4760 839 63
*Links take you to DOE "Snapshot" of system. Usually in the upper left corner of that page is a  link to the system website.

The following table, highlighted in yellow, lists 34 systems with more than 1,000 students (except charter schools and Community Montessori Inc) and a “student instructional expenditure” ratio of less than 55%.

 Indiana School Systems With  More Than 1,000 
Students And Less Than 55% Of Educational Dollars Going
To "Student Instructional Expenditures"

DOE Id = IN Department of Education School Corporation Number
Enr = Enrollment for 2008-09 school year as reported by DOE here
Instr % = ratio of “student instructional expenditures” to the overall           educational dollars spent for the 2006-07 school year

*School System

DOE Id Enr Instr %
Avon Community School Corp 3315  8,380 51
Baugo Community Schools 2260  1,949 53
Center Grove Com Sch Corp 4205  7,564 54
Charter School of the Dunes 9310 329 49
Clark-Pleasant Com School Corp 4145 5,598 42
Community Montessori Inc 9320 432 53
Crown Point Community Sch Corp 4660 7,417 52
Danville Community School Corp 3325 2,613 52
Eastern Greene Schools 2940 1,334 45
Franklin Community School Corp 4225 5,019 53
Franklin Township Com Sch Corp 5310 8,828 51
Gary Lighthouse Charter School 9535 676 52
Hamilton Southeastern Schools 3005 17,140 53
Hanover Community School Corp 4580 1,975 50
Indpls Lighthouse Charter School 9575 530 34
Lebanon Community School Corp 0665 3,517 53
M S D Boone Township 6460 1,112 50
M S D Wayne Township 5375 15,384 54
Merrillville Community School 4600 7,021 52
Mill Creek Community Sch Corp 3335 1,621 51
Monroe-Gregg School District 5900 1,540 49
North Montgomery Com Sch Corp 5835 2,153 54
Northeastern Wayne Schools 8375 1,076 51
Oak Hill United School Corp 5625 1,483 53
Plainfield Community Sch Corp 3330 4,589 52
Porter Township School Corp 6520 1,642 51
Prairie Township Schools 4880 NA 35
River Forest Community Sch Corp 4590 1,569 36
South Montgomery Com Sch Corp 5845 1,935 49
South Putnam Community Schools 6705 1,301 41
Southern Hancock Co Com Sch Corp 3115 3,365 49
Tri-Creek School Corp 4645  3,690 48
Westfield-Washington Schools 3030 5,887 49
Zionsville Community Schools 0630 5,360 53
*Links take you to DOE "Snapshot" of system. Usually in the upper left corner of that page is a  link to the system website.


From these tables it is obvious that the size of a school system doesn’t necessarily dictate the efficiency with which dollars are directed to “student instructional expenditures.” If Daniels is concerned about the ratio of “student instructional expenditures” to the overall educational dollars provided he would be well advised to review this information on a system-by-system basis only. An even better suggestion would be to just leave the possibility of school consolidation in the hands of the local school boards and communities. As long as government is transparent and they are provided the necessary information they are in a much better position than a state official to make a decision in the best interest of their community. Furthermore, Indiana presently permits by statute for local decision-making, allowing a referendum to reorganize (school consolidation).

 

"Mission Statement - Caston School Corporation is committed to providing each student with the knowledge, skills, and abilities to function as tomorrow's exceptional citizens. Teachers, administrators, staff, and the at-large community are dedicated to seeing that the students develop to their full academic, vocational, and personal potential in order that they may take pride in themselves, their accomplishments, and their school. It is our goal that each individual at Caston School Corporation will do his/her utmost to teach, assist, counsel, and encourage one another in making our school the best center for a lifetime of learning."
(Policy # 2105)

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