REPORT OF THE
TASK FORCE ON
Adopted November 7, 2006
Dr.
TABLE OF
CONTENTS
Introduction.................................................................................................. 1
Task Force Members................................................................................... 1
Review of Previous Task Force Information........................................ 3
Task Force Presenters................................................................................. 3
Findings and Recommendations............................................................. 4
Reservations
Concerning the “65 Percent Solution” Proposal................................. 4
Overview of Findings and
Recommendations Concerning Administrative Reorganization and Consolidation............................................................................................................. 5
Recommendations........................................................................................................... 6
Conclusions................................................................................................... 8
TABLE OF APPENDICES
Appendix A .... Legislation Creating Task Force,
Excerpt from HB 1021 (2005 Session).............................................................................. 9
Appendix B Legislation Appropriating Funds for Use of
Task Force, Excerpt from HB 1020 (2005 Session)..................................... 12
Appendix C Statutory Definition of Administrative
Services Costs 13
Appendix D Task
Force on School District Administrative Reorganization and Consolidation
Progress Report, December 31, 2004 15
Appendix E Comparative Data for
Appendix F School Consolidation Assistance Fund................... 17
Appendix G Requirements for Training of
Appendix H Statutory Duties of School Treasurers..................... 22
Appendix I Draft Legislation Authorizing the
Department of Central Services to
Administer a Self-Insured Group for School Districts........................................................................................... 26
Appendix J ......
Appendix K School Performance Review Program..................... 31
Appendix L Comparison of Administrative Costs to
Expenditures: 2004-2005 School Year........................................................... 33
REPORT OF THE TASK FORCE ON
Introduction:
Created in House Bill 1021 (see Appendix A),
and appropriated funding in House Bill 1020 (see Appendix B) of the 2005
Legislative Session, the Task Force on School District Administrative
Efficiency was directed to:
Task Force Members:
Task Force members were appointed by
Governor Brad Henry, President Pro Tempore of the Senate Mike Morgan, Speaker
of the House of Representatives Todd Hiett, and State Superintendent of Public
Instruction Sandy Garrett. Members and
their appointing authorities (noted in parenthesis) included:
The Task Force convened for its first
meeting on October 13, 2005 and held 13 meetings through November 7, 2006.
Staff Assistance for the Task Force was
provided by:
The Task Force adopted the following as its
Mission Statement:
The Task Force will study and review
existing programs that have proven to affect school district administrative
efficiency. The Task Force will
interview and hear administrators from large, small, urban, rural, and
out-of-state districts to determine administrative efficiency within a
broad spectrum of school districts. The
Task Force will study and review prior task force information and any other
information that may be available to result in final recommendations to:
Problem:
Solution:
Recognition:
Review of Previous Task Force
Information:
During the 2003 legislative session, the
Task Force on School District Administrative Reorganization or Consolidation
was created. Outside consultants were
retained to conduct research for use by the task force in arriving at its
recommendations. The consulting contract
was granted to Dr. Michael Metzger, Director of the
The objective of the consultants was to
assemble, interpret, and distill all of the relevant available evidence, in all
of its various forms, and translate these into potential tax dollar savings and
student performance gains, for school sites, districts, and the state as a
whole. However, the contracting
consultant passed away prior to completion of the final report and the task
force submitted a progress report to the legislature (See Appendix D). That task force expired on December 31,
2004, and no final report was ever issued.
With the permission of Dr. Warner, the current Task Force reviewed the
draft reports prepared by the consultants engaged by the previous task force. Dr. Warner also graciously provided an
extensive amount of supporting literature the consultants had collected. Drs. Knight and Pettigrew reviewed the
literature and found it to be very mixed in the conclusions. In addition, much of the literature was
dated.
Task Force Presenters:
Task Force members heard presentations from
State Department of Education personnel, including Lealon Taylor, Shawn Hime,
and Lu Norman concerning present practices, current statistical information,
definitions of administrative costs, and other pertinent information. Several outside presenters addressed the Task
Force as well. They included:
Additionally, the Task Force heard from the
following out-of-state presenters:
Findings and Recommendations:
The Task Force decided early in the process
to give attention to any findings concerning efficiency and cost-saving
practices -- whether directly considered administrative or not.
We also determined that a positive approach
(incentives rather than penalties) would probably result in more positive
changes than a punitive approach.
Reservations
Concerning the “65 Percent Solution” Proposal:
The Task Force has reservations regarding
the “65 Percent Solution” proposal, which would require school districts to
spend at least 65 percent of their operational budgets on expenditures directly
related to classroom instruction.
Services that are not included within the definition of “classroom
instruction” are a very necessary component of the type of school our students
need and deserve and our parents want and need for their children. In order to increase expenditures in
classroom instruction to meet the 65 percent requirement, schools would have to
decrease expenditures in the following areas:
plant operations and maintenance, food services, safe transportation,
instructional support including librarians, teacher training and curriculum,
nurses, counselors, and administrators.
Upon review of comparative data presented to
the Task Force (see Appendix E) on the surrounding states, we found that
Oklahoma ranks fifth (out of seven states) in the percentage of current
expenditures devoted to instruction; seventh in average salaries of public
school teachers for 2003-04; and second with a relatively high
student-to-teacher ratio. If
The former United States Secretary of
Education, Rod Paige, was quoted in the June 27, 2006, issue of the New York Times as stating, “Today, one
of the worst ideas in education is coming from conservatives: the so-called 65 percent solution…The most
likely outcome is that school officials will learn the art of creative
accounting in order to increase the percentage of money that can be deemed
“classroom” expenses. More ominously, it
will tie school leaders’ hands at a time when they need more freedom to innovate.”
The results of SEDL’s research on resource
allocation as presented by Dr. Zena Rudo demonstrated that student achievement
does improve when more money is spent in the instructional area, especially
when additional resources are provided for disadvantaged students. However, they found no evidence that the 65
percent solution impacts student performance.
Dr. Rudo’s research found that successful districts used effective resource
allocation strategies as part of a systematic process that aligned instructional
goals, reform strategies and resources.
She noted that “One size does not fit all. Resource strategies will be unique to each
district’s needs and circumstances.”
This point was further solidified when Dr.
Benny Gooden stated, “School improvement will be most successful when all
resources are aligned to address identified needs. These needs will vary from school-to-school
and district-to-district. Local school
leaders must have the flexibility to allocate resources as conditions require.”
Overview
of Findings and Recommendations Concerning Administrative
Reorganization
and Consolidation:
Voluntary reorganization within a school
district is particularly valuable in certain situations. Further, reorganization or combining of
functions with other school districts or other education entities can also
prove valuable and productive.
Additionally, if a school district determines that combining with
another school district is advisable in order to streamline administrative
functions, to improve curriculum, to enhance student achievement, to address
declining enrollment, or for other reasons, such a move can be made easier and
less expensive due to the availability of incentive funds in the School
Consolidation Assistance Fund. With the
passage of the Oklahoma Education Lottery Act, five percent of all net lottery
proceeds are deposited into the fund. It
is anticipated that the fund will have approximately $8 million on hand by the
end of 2006. The law was amended in the
2006 session to increase allowable incentive allocations (see Appendix F).
We,
as a Task Force, make the following recommendations:
A. Workshops
for school personnel – Require specific training for specific job
titles. Further recommend Regional Accreditation
Officers verify workshop attendance during annual site visits and note
accreditation deficiency for schools or districts not in compliance.
B. Practices
districts could consider:
C. Recognize
districts that demonstrate marked improvement or innovative methods in
administrative and district efficiency. The State Department of Education is already
providing some of this recognition, but we recommend it be expanded so that the
public and the Legislature are aware of our public school districts’ efforts to
make improvements in this area.
D. Legislation
which might be considered:
E. Recommended
State Department of Education actions:
F. The
School Performance Review Program administered by the Office of Accountability
should compile and publish a cumulative annual report on generic findings and
recommendations from completed reviews of school districts to provide a
resource of both district practices to be changed and practices to be praised
(see Appendix K for current law).
Conclusions:
Upon our review of the administrative costs of
school districts as compared to total expenditures, we found, of 540 districts
and 12 charter schools, 34 districts and 2 charter schools exceeded the
allowable percentages for the 2004-2005 school year. The state average was 3.42% (see Appendix
L). The law that limits these costs
allows percentages of six, eight, or ten percent depending on average daily
attendance (as referenced in Appendix C).
As the state average is well below the statutory limit for any size
district, we feel the public school districts in this state should be praised
for their efforts in keeping administrative costs low and believe that the
current limits and penalties for exceeding the limits are sufficient.
We would also suggest that a follow-up study
of practices instituted from the recommendations presented in this report would
be valuable. A study of which things
make administration more efficient or increase student achievement would be
helpful as well. Finally, the state and
school districts must have better accountability and assessment that enables
them to align costs with student and teacher data.
We hope that the recommendations contained
in this report are helpful for the purposes for which this Task Force has been
charged.
APPENDIX A
Legislation Creating Task Force
Excerpt from HB 1021 (2005
Session)
ENROLLED HOUSE
and
Morgan and Crutchfield of the Senate
An Act relating to schools; creating the Task Force on School District Administrative Efficiency; stating purpose of the Task Force; requiring recommendations by a certain date; providing for membership, meetings, staffing, and travel reimbursement; - - - - - - ; providing for codification; providing for noncodification; providing an effective date; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF
SECTION 1.
A.
There is hereby created until
B.
The Task Force shall make recommendations to the Legislature by
C.
The Task Force shall consist of seven (7) members who shall be appointed
on or before
1. One member appointed by the State Superintendent of Public Instruction who shall be a parent of a student in a public school in the state;
2.
Two members appointed by the Governor, of which one shall be a b
3.
Two members appointed by the Speaker of the Oklahoma Ho
4. Two members appointed by the President Pro Tempore of the State Senate, of which one shall be a retired principal of a public school in the state or a retired superintendent and one shall be a person with not less than ten (10) years teaching experience in a public school in the state.
D. The members of the Committee shall elect a Chair from among the members at the first meeting. If a vacancy occurs in any appointment, it shall be filled in the same manner as the initial appointment.
E.
The first meeting of the Task Force shall be held at the call of the
Governor and shall take place no later than
F. Members of the Task Force shall receive no compensation for serving on the Task Force, but may receive travel reimbursement as follows:
1. Legislative members of the Task Force may be reimbursed for their necessary travel expenses incurred in the performance of their duties in accordance with Section 456 of Title 74 of the Oklahoma Statutes, from the legislative body in which they serve; and
2. Other members of the Task Force may be reimbursed for travel expenses incurred in the performance of their duties by their respective appointing authorities in accordance with the State Travel Reimbursement Act.
APPENDIX B
Legislation Appropriating
Funds for Use of Task Force
Excerpt from HB 1020 (2005
Session)
ENROLLED HOUSE
and
Morgan and Crutchfield of the Senate
An Act relating to education; making appropriations; stating purposes; authorizing certain expenditures for certain purposes; - - - - - ; requiring certain funds allocated for Administrative and Support Functions of the State Department of Education to be transferred to the Legislative Service Bureau; authorizing the employment of an independent consultant; - - - - - ; providing an effective date; and declaring an emergency.
SECTION 38. Of the funds appropriated in Section 9 of
this act and allocated in Section 12 of this act for Administrative and Support
Functions of the State Department of Education, the sum of Thirty Thousand
Dollars ($30,000.00) shall be transferred to the Legislative Service Bureau to
contract with an independent consultant as part of the study of the Task Force
on School District Administrative Efficiency as authorized in Section 1 of Enrolled House Bill No. 1021 of
the 1st Session of the 50th Oklahoma Legislature.
APPENDIX C
Statutory Definition of
Administrative Services Costs
§70-18-124. Withholding certain expenditures from Foundation and Salary Incentive Aid.
A. Any school district with an average daily attendance (ADA) of more than one thousand five hundred (1,500) students for the preceding year which expends for administrative services in the 2005-06 school year or any school year thereafter, less expenditures for legal services, more than six percent (6%) of the amount it expends for total expenditures, less expenditures for legal services, shall have the amount which exceeds the six percent (6%) withheld the following year from the Foundation and Salary Incentive Aid for the school district.
B. Any school district with an average daily attendance (ADA) of more than five hundred (500) students but not more than one thousand five hundred (1,500) students for the preceding year which expends for administrative services in the 2005-06 school year or any school year thereafter, less expenditures for legal services, more than eight percent (8%) of the amount it expends for total expenditures, less expenditures for legal services, shall have the amount which exceeds the eight percent (8%) withheld the following year from the Foundation and Salary Incentive Aid for the school district.
C. Any school district with an average daily attendance (ADA) of five hundred (500) or fewer students for the preceding year which expends for administrative services in the 2005-06 school year or any school year thereafter, less expenditures for legal services, more than ten percent (10%) of the amount it expends for total expenditures, less expenditures for legal services, shall have the amount which exceeds the ten percent (10%) withheld the following year from the Foundation and Salary Incentive Aid for the school district.
D. For purposes of this section, “administrative services” means costs associated with:
1. Staff for the board of education;
2. The secretary/clerk for the board of education;
3. Staff relations;
4. Negotiations staff;
5. Staff for the superintendent;
6. Any superintendent, elementary superintendent, or assistant superintendent;
7. Any employee of a school district employed as a director, coordinator, supervisor, or who has responsibility for administrative functions of a school district; and
8. Any consultant hired by the school district.
E. If an employee of a school district is employed in a position where part of the employee’s time is spent as an administrator and part of the time is spent in nonadministrative functions, the percentage of time spent as an administrator shall be included as administrative services. Except for a superintendent who spends part of the time teaching in the classroom, the total amount of time a superintendent of a school district spends performing services for a school district shall be included as administrative services even if part of the time the superintendent is performing nonadministrative service functions and the total amount received by a superintendent from the school district as salary shall be recorded under the code for superintendent salary as provided for in the Oklahoma Cost Accounting System.
F. Each school site within a school district shall take steps to ensure that the administrative costs for the school comply with the expenditure limits established for school districts in this section.
G. Funds withheld pursuant to the provisions of this section shall be distributed through the State Aid formula to the districts not so penalized.
H. For the 2003-04 and 2004-05 school year, school districts shall report to the State Department of Education the costs associated with administrative services for the school district as defined in subsection D of this section.
APPENDIX
D
Task Force on
Reorganization and Consolidation
Progress Report
December 31, 2004
Introduction
and Purpose
The Task Force on
School District Administrative Reorganization or Consolidation was
created pursuant to HB 1767 of the 2003 session. The task force was charged with determining
how much money can be saved by reorganization or consolidation of the
administrative functions of school districts in the state, and the related
effects on the efficiency of the restructured functions and academic
programs.
Task Force
Participants
Mr. Pete Churchwell,
Chairman Mr.
Mike Mitchel, Vice Chairman
Representative Tad
Jones Representative
Ray Miller
Senator
Sandy Garrett, Ex
Officio Mr.
Richard George
Mr. Richard Gorman Mr.
Larry Harrington
Mr. Rick Kibbe Mr.
Larry Riley
Mr. Mark Shoffit Ms.
Terri Silver
Mrs. Mae Stevenson Ms.
Ann Weaver
Dr. Joe Siano Mr.
Lloyd Snow
Meetings
The task force held
several meetings from
The consultants under
the direction of Dr. Michael Metzger, Director of the Oklahoma Policy Research
Center at the University of Central Oklahoma, include Dr. Larkin Warner, OSU
Professor of Economics Emeritus, Dr. Sue Lynn Sasser, President Oklahoma
Council on Economic Education and Assistant Professor of Economics at UCO, and
Dr. Stephen Smith, Professor of Economics at Rose State College made
presentations of their initial data gathering at the October 13, 2004 meeting
of the task force. The consultants are
expected to complete their work in March 2005.