Back To Basics

Reflections on Education Spending and Fiscal Responsibility
by
Hugh Kemper

A few years ago during a school district annual meeting I stood up to explain why, as a school board member, I had voted against the proposed budget and intended to do so again that evening. This came as no surprise to fellow board members. They had heard my rationale on numerous occasions. As a courtesy, nonetheless, I forwarded to them several days before the meeting a copy of the remarks I intended to make.

My reasons were quite simple; namely, (a) the proposed budget increase was over 9% for the second year in a row, (b) this and past budgets were substantially in excess of any and all affordability benchmarks (e.g. inflation, personal income, and economic growth), (c) property taxes, as a result, had been increasing and prospectively would continue to increase at rates approaching double-digits annually and (d) the lack of fiscal responsibility was a disservice to not only taxpayers but also our children as it was only a question of time before the day of reckoning arrived. 

What transpired next was in the view of my daughter-in-law tantamount to a verbal lynching.

In what appeared to be a well orchestrated personal attack on my character and motives by adults and students, the more printable comments ranged from being accused of trying to save money on the backs of children to the suggestion that I downsize if I couldn’t afford to pay for the education of our children. I can’t recall a single substantive, fact-based opinion.

During my professional career I'd experienced a tussle or two and felt I had acquired a pretty thick skin. And ultimately reason normally prevails.  I must confess, however, that that evening my thick skin was pierced, almost. It undoubtedly would have been had not a half dozen or so attendees approached me after the meeting to pat me on the back for "telling it like it is."

Fiscal responsibility is the cornerstone of all spending decisions, large and small. It should be consideration #1, not an afterthought.

Are we all guilty of impulse buying? Of course! On small items impulse buying is normally not a problem unless it becomes addictive. On large items, it depends on how large is large.

Fiscal responsibility should be the first step, not an afterthought, in weighing education spending. Education spending is not only a large budget item; it is a recurring large budget item. Spending must be disciplined to be sustainable during inevitable, cyclical downturns, not predicated on good economic times in perpetuity.

Those of us who argue for fiscally responsible education spending are not child haters or scrooges. We want what’s best for our kids (I have four grandchildren in Vermont schools). That doesn’t mean, however, we can always provide what we’d like to. It mystifies me that we (at the national, state, local and personal level) appear to regard fiscal responsibility as an afterthought in spending decisions.

For Vermont it is not all gloom and doom. On the contrary, as Vermont over the past decade or so has so far overspent on education, it can now significantly streamline education costs without compromising quality. Hopefully, the relatively modest increase in school budgets for school year 2010 is a start. There is, however, much more to be done to bring education spending down to sustainable, affordable levels for the long haul.

I have begun to refer (privately, of course) to those who advocate spending without considering its broader implications as the Irresponsibles.

The Untouchables is one of my favorite movies and a sense of humor is healthy, particularly in tough economic times. 

Comments

[Tom Licata]

Just as more mayors have taken over their schools from their local school boards, Vermont's Brigham decision should be followed with a similar takeover of Vermont's schools by the state, overseen by the Governor's office.

For too long, local school boards have protected their interests - such as keeping open unrealistically low enrollment schools - at the expense of broader interests throughout the state of Vermont. Having our schools run by a monopoly coupled with an incestuous political ally in Montpelier has exacerbated the unintended consequences of the Brigham decision. At the time of the Brigham decision, education spending accounted for 23% of Vermont's state budget. Today, it accounts for some 40%, as it continues to consume a greater share of Vermont's precious revenues dollars.

Quite simply, it has become out of control and if drastic measures are not taken soon, this state will face bankruptcy or near-bankruptcy conditions.

What are those drastic measures? School closures are necessary. We can no longer afford our roughly two dozen schools with enrollments in the range of 50 students and our over 100 schools with less than 100 students.

A Blue Ribbon Commission should be appointed to determine statewide school closures and the cost savings associated with these closings. If the local communities object, they should be required to pay the opportunity cost of keeping their school open.

As for our roughly 285 school districts, we should start with moving to having just one; with a conversation of going to as many as 14, or one for each of Vermont's counties.

On a different note, a similar Blue Ribbon Commission should be appointed to determine statewide hospital closures. We have too many small, inefficient and unaffordable hospitals given Vermont's economies-of-scale.

Montpelier and its legislators are either ignorant of or choose not to acknowledge the gravity of our economic crisis (http://www.vermonttiger.com/content/2009/02/reckoning.html?cid=6a00d834519c3c69e2011278e712c928a4).

We've only yet to scratch the surface of its full impact.

The impact of the changes recommended here are more psychological and cultural, than practical; as streamlining education and health services will provide greater efficiency and allow its savings to ameliorate the current and future budget cuts from such areas as human services, transportation, corrections and law enforcement.

Over time, tax revenues are determined by economic and productivity growth. The solutions addressed here speak to some of our productivity issues. Meaningful land use, regulatory and tax reforms are needed if Vermont is to move forward with job creation. Its current path of "central government control" is doomed to fail, as our private sector job growth of 0% this decade coupled with a 70% increase in government payroll and benefits would attest.

As founder of Vermonters of Economic Heath, I launched our Web site (http://www.vteh.org/) in October of 2007 with these words:

"In The Gathering Storm, Winston Churchill’s stated purpose was “to show how easily the tragedy of the Second World War could have been prevented.” In Churchill’s time – as now - a storm was brewing but “people were viewing it and not doing anything.” In Vermont, an economic and demographic storm is brewing and like Churchill’s time, Governor Douglas, Speaker Symington, Senator Shumlin and others in Montpelier are doing little but viewing this coming tsunami."

Montpelier should take note. Our tsunami has only just begun.

[Ed G. Mann]

I, among many other smart individuals, shall be quite far from the Vermont "beach" when the wave breaks. I sold my real holdings five years ago, therefore, as a renter, I'm quite mobile.

The heavy consumers of OPM will be very stunned when the only wallets being picked are theirs.

Ragnarok is coming for their socialist Xanadu. The first Fimbulvetr just passed.

[GreggB]

Good doggy, Fenrir, good doggy.

[David Usher]

Fiscal responsibility does not have a commonly accepted definition among Vermont legislators, particularly those who see more government spending as the solution to the problems and downturns in life that people experience.

The education system is seen by many as worthy of all financial support available. That's their definition of fiscal responsibility... like, it's for our kids, you know.

[Chris Campion]

When rational arguments fail, ostracize. This sounds like a 4th-grader planning a game of competitive kickball, yet this is how virtually anyone with a dissenting opinion is treated at a school budget meeting or vote in Vermont. If we cannot question how our tax dollars are spent, then why are we electing those people to local school boards who don't condone or allow questions? I have a really hard time understanding why budgets increase YOY at a rate 2-3 times the rate of inflation when there are fewer students to teach and more people to teach them. It's like a business raising prices every year but delivering less of a good or service, and then the business owner gets indignant when you ask him or her "Why am I paying more for this?".

After a while, the patrons are no longer spending money in the store. They can be found shopping somewhere else.

[Bob Zeliff]

Well said Mr Kemper. It is not so much the money as clearly Vermonters have been willing to spend the money for better or worst. It is getting value for the money spent. For that money our schools, all of them, should be performing in the top 10% nationally. They are not. That is shameful performance of our education professionals.

[Gov. Tom Darling]

I fail to see why any community cannot run a slate of Mr. Kempers. If they did, I fail to see why they cannot whittle down their local budget to the bare essentials.

We can blame the NEA, but the board negotiates and agrees. Regardless of the outcome, staffing cuts are the administration's decision. With dwindling student numbers, wings can be closed and schools consolidated at the local level.

Given that towns can elect people like Kemper, and that local boards can make much more bold decisions than they are making, it seems that we are living the will of the people.

So, we either trust democracy and our peers, educate our peers through forums like the board meetings, run for office ourselves, support like-minded individuals, or give our voice to the governor and legislature.

Can we stop advocating this last idea? I like my local democracy.

[Jordan Retro 6]

Wherever you when to begin,Important is not stop after beginning, Regardless of whenever you are over, Do not regret. The best is that we are do it.