Smaller Schools Score Big In Governor's Study

The Lincoln Journal Star reports that smaller schools perform better in tightening the budget belt.

According to the article, when the state got its "financial bombshell in December in the form of a $53 million unexpected increase in state aid to schools, Gov. Dave Heineman wanted to know more. What was driving the increase? Which school districts were spending the most and why?"

The Journal-Star reports the governor learned the 53 schools in the category of “sparse” enrollment increased spending an average of 4.4% from the period 2005-06 and 2006-07. The smallest schools reported 6.2% spending growth. The largest schools — 18 of them — with budgets over $20 million, increased spending an average of nearly 8%. Omaha and Lincoln were included in the 18 largest schools, with increases of 9% for Omaha and nearly 8% for Lincoln.

Lexington Public Schools had the highest increase of large schools, at 15%. Kearney schools showed a nearly 13% increase. South Sioux City, 11%. And there were lower increases, most notably Norfolk and Scottsbluff schools at about 2% each.

The reasons for the increases are as complicated, as the governor is learning. But Dennis Pool, Omaha Public Schools assistant superintendent, said increases come from three main factors:

• high numbers of students whose primary language is not English;
• from large increases in heating and bus fuel costs; and
• from double-digit health insurance increases.

School aid is predicted to increase under the current financing formula by $132 million, or 17.5%, next year, and by 11% each of the following two years. The state is expected to send about $885.5 million in general fund taxes to public schools next year.

We think this news is positive proof that schools the size of Dorchester are not the key drivers behind the unsustainable increase in state aid costs. Large, urban education bureaucracies and the teachers' union are more likely culprits. Neither has ever seen a tax or spending increase that's too big. Savvy taxpayers knows that about two-thirds of their property tax bill goes directly to the local school district. Folks in Lincoln, Omaha, Lexington, South Sioux City and Kearney can't be too happy after reading the Journal Star's story.

However, we also believe this article and its staggering figures serve a reminder to Dorchester school board members and administrators that the pressure is on to hold the line on spending.