Local Schools Frustrated by Uncertain State Aid

By Doug MacPherson on Tuesday, March 16, 2004.

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In March, school districts traditionally try to finalize their school budgets.
but in recent years that's become harder to do.
That's because state lawmakers keep changing the amount and the distribution formula for state aid to local schools.
This year, many communities still don't know how much they'll receive from the state.
New Hampshire Public Radio's Doug MacPherson reports.

AS EXECUTIVE DIRECTOR OF THE STATE'S SCHOOL BOARD ASSOCIATION, THEODORE COMSTOCK IS IN TOUCH WITH SCHOOL BOARDS ALL OVER NEW HAMPSHIRE. THE OPERATIVE WORD THESE DAYS, SAYS COMSTOCK, IS FRUSTRATION.

TAPE THEODORE COMSTOCK the problem is that from year to year, the average school district in new Hampshire doesn't know what their revenues are going to be when they're making their budget. :12

TAKE THE CITY OF DOVER, FOR EXAMPLE. THIS YEAR, DOVER RECEIVED 5.5 MILLION DOLLARS IN STATE AID. THAT'S DOWN FROM LAST YEAR, WHEN IT RECEIVED 6.3 MILLION. AND NEXT YEAR ITS PROJECTED TO RECEIVE ANYWHERE FROM 4.4 MILLION TO 4.8 MILLION DOLLARS. EVEN NOW, WHEN NEARLY EVERY SCHOOL DISTRICT IN THE STATE IS FINALIZING ITS SCHOOL BUDGET FOR NEXT YEAR -- LAWMAKERS ARE STILL TWEAKING THE STATE FUNDING FORMULA. AS TO WHAT DOVER MIGHT RECEIVE THE YEAR AFTER NEXT -- THAT'S ANYBODY'S GUESS.

STATE REPRESENTATIVE PHYLLIS WOOD OF DOVER ADMITS SHE'S NOT ALL THAT FAMILIAR WITH THE PROBLEM. TOLD THAT SOME COMMUNITIES WISH THEY COULD RELY ON HARD NUMBERS FROM THE STATE, WOODS IS SYMPATHETIC ï¿½ UP TO A POINT.

TAPE PHYLLIS WOOD 257 well of course there are some state agencies that are probably saying the same thing. I think our budget is not something that's set in concrete. :09

THIS YEAR'S STATE BUDGET, WOODS SAYS, IS "EVOLVING."
AS A MEMBER OF THE HOUSE EDUCATION COMMITTEE, REPRESENTATIVE DAVID SCOTT IS MORE FAMILIAR WITH THE PROBLEM. BUT SCOTT SAYS THE FUNDING PROBLEM AT THE STATE LEVEL IS DWARFED BY WHAT HE CALLS THE SPENDING PROBLEM AT THE LOCAL LEVEL, INCLUDING IN HIS CITY OF DOVER. SCOTT POINTS OUT THAT STATE SPENDING HAS KEPT PACE WITH THE RATE OF INFLATION ï¿½ A LITTLE LESS THAN THREE PERCENT A YEAR.

TAPE DAVID SCOTT 067 over the last 5 years, the compound increase of spending in dover is nine percent. /// So we do have a funding problem. But the funding problem comes from a spending problem which comes from a management problem. The person who's running this multimillion dollar operation is spending wildly, and I would say quite frankly has a spending addiction. :26

THE PERSON SCOTT IS REFERING TO IS ARMAND LASELVA.
NOT SURPRISINGLY, THE DOVER SCHOOL SUPERINTENDENT BRISTLES AT THE SUGGESTION THAT HE MIGHT BE A SPENDTHRIFT. LASELVA DID SUBMIT A HIGHER BUDGET REQUEST THIS YEAR ï¿½ BUT MOST OF THE COST INCREASES, HE SAYS, ARE BEYOND HIS CONTROL.

TAPE ARMAND LaSELVA 294 we have a bus contract, and the bus contract is going up 175-thousand dollars. /// you want to try to negotiate fewer busses? What can you do? 298 medical premiums are going up. Nothing we can do about that. It's part of the collective bargaining agreement and the only way you're going to make changes there, is if you can negotiate a higher co-pay participation from the membership. :26

RE-OPENING A RECENTLY CONCLUDED COLLECTIVE BARGAINING AGREEMENT IS NOT SOMETHING MOST COMMUNITIES TAKE LIGHTLY.
ADD UP ALL THE FIXED INCREASES, AND LaSELVA IS COPING WITH AN AUTOMATIC BUDGET INCREASE OF 2-POINT-3 MILLION DOLLARS.

TAPE ARMAND LaSELVA 455 so we've cut into the budget in order to make sure we're footing the expense of the 2.3 million dollar increase :06

MOSTLY THROUGH CUTS IN PERSONNEL. AS OF LAST WEEK, LA-SELVA'S BUDGET WAS 665-THOUSAND DOLLARS HIGHER THAN LAST YEAR'S BUDGET ï¿½ A TWO-PERCENT INCREASE.

BUT OVERALL, DOVER'S SPENDING HAS INCREASED ABOUT NINE-PERCENT A YEAR FOR THE LAST SEVERAL YEARS. ACCORDING TO DOUG HALL, CO-DIRECTOR OF THE NEW HAMPSHIRE CENTER FOR PUBLIC POLICY STUDIES ï¿½ THAT'S EXACTLY THE STATE AVERAGE.
IF YOU GO BACK TO WORLD WAR TWO, HALL SAYS, NINE-PERCENT IS LOWER THAN THE STATE AVERAGE.

TAPE DOUG HALL in the early 1940's, spending on the school districts by the school districts started to increase at about 11 percent a year. And that was compounded, 11-percent a year, from about 1942 to 1989. the long term trend is about 11 percent a year. We then had about 8 or 9 years where the spending was going up only about 5 percent a year. And then in the last 5 years, it's returned to a nine percent average.

HALL POINTS OUT THAT SCHOOLS ARE LABOR-INTENSIVE ï¿½ AND LABOR
COSTS HAVE INCREASED, AND CONTINUE TO INCREASE, SUBSTANTIALLY. MEANWHILE, STATE AID TO PUBLIC SCHOOLS DOES NOT.
THE STATE'S PORTION OF PUBLIC EDUCATION CONTINUES TO DROP. IN 1999, THE STATE ASSUMED ONE-FOURTH OF THE COST OF PUBLIC SCHOOLS. THIS YEAR, IT'S DOWN TO ONE-FIFTH. HALL AND OTHERS SAY IT'S ONLY A MATTER OF TIME BEFORE THE STATE FINDS ITSELF BACK IN COURT.

TAPE DOUG HALL If past history holds true, and you have this 9-percent a year increase, then as the state share declines, the state is in essence asking to have somebody come in and bring another lawsuit. :13

FOR N-H-P-R NEWS, I'M DOUG MACPHERSON.