Two bills that have big implications for funding for public schools in New Orleans are moving through the Louisiana Legislature currently. They both attempt to equalize the funding across all types of public schools – whether they are under the OPSB or the RSD, whether they are charter or traditional.
After Hurricane Katrina, our school system changed radically in a very short period of time. The state took over the vast majority of schools (moving them into the RSD); at the same time, the OPSB agreed to issue charters to the majority of the schools it retained.
One of the problems created by these changes was that the OPSB was suddenly a very small district in terms of the number of students in its directly run schools; however, it had the debt and other lingering costs of a much larger system. Trying to cover these costs has been a major burden for the district for the past few years.
SB 240, introduced by Sen. Ed Murray of New Orleans, deals with what are called “legacy costs.” The OPSB served 65,000 students before the storm – and the numbers of pending legal claims, old workers’ compensation claims, and retirees who need health care are proportionate the that larger system. These costs need to be shared by all public schools in New Orleans; we cannot expect to cover them from the funding meant to serve the 2,600 students in OPSB-run schools. Last October, the school board increased millage rates to raise additional funding to cover these costs. SB 240 allows OPSB to recover actual costs related to legacy costs – up to $6 million per year – and will ensure that the additional revenue created by the roll forward –another $6 million per year approximately – will be shared by all public schools.
HB 420, by Rep. Walt Leger, deals with debt related to general obligation bonds issued in the mid-1990s. At that time, voters approved a dedicated millage to pay off this debt. Current state law does not allow OPSB to hold back the money generated by these taxes from its charters. However, the school board must still make the full payment to the bondholders every year, often taking money from reserves to do so. HB 420 would change this for OPSB and school districts throughout the state. If it passes, all of the money that is supposed to go toward paying off the debt will be used for that purpose.
SB 240 was approved by the full Senate yesterday and will move to the House soon. HB 420 was approved by committee yesterday and will soon be heard by the entire House.
Both of these bills will help fix problems that have needed to be fixed for quite a while. Be sure to check our Legislative Updates to follow their progress through the legislature.
Fixing the Unintended Consequences of Reform
By: Tara ONeill | May 6, 2010
Two bills that have big implications for funding for public schools in New Orleans are moving through the Louisiana Legislature currently. They both attempt to equalize the funding across all types of public schools – whether they are under the OPSB or the RSD, whether they are charter or traditional.
After Hurricane Katrina, our school system changed radically in a very short period of time. The state took over the vast majority of schools (moving them into the RSD); at the same time, the OPSB agreed to issue charters to the majority of the schools it retained.
One of the problems created by these changes was that the OPSB was suddenly a very small district in terms of the number of students in its directly run schools; however, it had the debt and other lingering costs of a much larger system. Trying to cover these costs has been a major burden for the district for the past few years.
SB 240, introduced by Sen. Ed Murray of New Orleans, deals with what are called “legacy costs.” The OPSB served 65,000 students before the storm – and the numbers of pending legal claims, old workers’ compensation claims, and retirees who need health care are proportionate the that larger system. These costs need to be shared by all public schools in New Orleans; we cannot expect to cover them from the funding meant to serve the 2,600 students in OPSB-run schools. Last October, the school board increased millage rates to raise additional funding to cover these costs. SB 240 allows OPSB to recover actual costs related to legacy costs – up to $6 million per year – and will ensure that the additional revenue created by the roll forward –another $6 million per year approximately – will be shared by all public schools.
HB 420, by Rep. Walt Leger, deals with debt related to general obligation bonds issued in the mid-1990s. At that time, voters approved a dedicated millage to pay off this debt. Current state law does not allow OPSB to hold back the money generated by these taxes from its charters. However, the school board must still make the full payment to the bondholders every year, often taking money from reserves to do so. HB 420 would change this for OPSB and school districts throughout the state. If it passes, all of the money that is supposed to go toward paying off the debt will be used for that purpose.
SB 240 was approved by the full Senate yesterday and will move to the House soon. HB 420 was approved by committee yesterday and will soon be heard by the entire House.
Both of these bills will help fix problems that have needed to be fixed for quite a while. Be sure to check our Legislative Updates to follow their progress through the legislature.