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November 10, 2003

1)  Report: Miami Union $19 Million in Debt. Brian Peterson is a professor of history at Florida International University. He also keeps close tabs on public education in Miami and, as editor of his own e-mail newsletter, Miami Education Review, he is well-connected to the city’s education establishment, including the United Teachers of Dade (UTD). UTD held a meeting on October 29 that featured a visit by AFT Executive Vice President Nat LaCour. Peterson reported he had a source who attended this meeting and I am inclined to believe him.

According to Peterson, the regularly scheduled UTD elections will not take place next spring, and will not take place at all until after a new UTD constitution is written and approved. Furthermore, the current AFT administratorship will not be dissolved until UTD is financially solvent – which may take a long while, considering the scope of its problems.

Peterson reports that UTD is $19 million in the red, all of which is due by June 30, 2004. That’s $1,200 to $1,500 per member, depending on whose membership numbers you believe. The only way to generate the sum in time is to start unloading buildings, including the notorious UTD headquarters building and Pat Tornillo’s condominium.

AFT claims to already have spent more than $4 million in Miami in the first three months of its administratorship, which is now predicted to last another 18 months. And, though UTD is also an affiliate of both NEA and the merged Florida Education Association, AFT appears to have exclusive jurisdiction over the Miami fiasco. Neither NEA nor FEA has issued a press statement on Miami since the Tornillo scandal hit.

2)  Two NEA State Affiliates Endorse Favorite Dems. Right on the heels of the California Teachers Association, Vermont NEA also endorsed Howard Dean for the Democratic presidential nomination. Coupled with upcoming endorsements from SEIU and AFSCME, Dean can expect substantial union campaign support. However, support for Dean will not be unanimous.

The South Carolina Education Association voted to endorse Sen. John Edwards of North Carolina, and while the Michigan Education Association has issued no endorsement, MEA President Lu Battaglieri personally endorsed Sen. John Kerry of Massachusetts some months ago.

Wesley Clark thinks he has found an issue with which to gain teacher support – the proposed closure of Department of Defense schools in the United States. Clark spoke out against the idea last week, but his reasoning runs counter to the current union conventional wisdom. He said public schools could not afford the additional students transferring in from DoD schools. The unions are arguing they can’t afford students to be transferring out (see Item #4 below).

3)  It’s Back to the Nineties for CTA. The détente between Gov.-elect Arnold Schwarzenegger and the California Teachers Association may qualify as the shortest in history. The Governator chose former Los Angeles Mayor Richard Riordan as his secretary of education, prompting CTA Associate Executive Director John Hein to resign from Schwarzenegger’s transition committee.

It’s hard to believe that the appointment of Riordan alone was responsible for Hein’s decision, particularly after CTA President Barbara Kerr had called Hein’s position on the team “very important for all of us and recognizes the high esteem in which CTA is held within the political arena. It also means the voices of educators are at the table.”

Hein’s resignation will not affect the transition, since the 68-member team was more swollen than Arnold’s pecs anyway. But it does signal that CTA assumes – correctly, I think -- that California under Schwarzenegger will not be something new and different, but rather something the union has dealt with before: a state with a liberal Democrat legislature and a moderate Republican governor, both trying to play games with a massive budget deficit.

CTA did not like Gray Davis, but it didn’t need to. As long as Davis was signing the CTA-sponsored bills cruising through the legislature, he was doing the union a service. Dropping an additional $1.84 billion on the teacher bargaining table in 2000 wasn’t chopped liver, either. With Arnold holding the veto pen, the fat years are well and truly over for CTA.

4)  The Double-Edged Sword of Marginal Per-Pupil Spending. Per-pupil spending is at once the most helpful, most used, most abused, and most misunderstood education finance statistic in the public domain. The most popular way of arriving at it is to divide current expenditures by average daily attendance. The utility of per-pupil spending in budgeting, analysis or comparison of expenditures across jurisdictions is self-evident.

We only run into trouble when we use per-pupil spending as a description of how money is actually spent by the public education system. Sorry to say, each student does not have an annual personal budget of $7,800 from which his or her education is purchased. As with virtually every other economic enterprise on the planet, education is delivered on the basis of marginal costs – that is, the cost of schooling the next additional student.

The teachers’ unions have proven time and again they understand the concept, because they use it to argue against vouchers and charter schools. Siobhan Gorman of Washington Monthly recently asked NEA President Reg Weaver how vouchers could “drain money from public schools” if those public schools no longer had to educate that child. “Did the heat bill go down? Did the light bill go down?” Weaver replied.

Last week, teachers’ unions in New York and Massachusetts echoed this argument in calling for a moratorium on the establishment of charter schools in their respective states. The Massachusetts Teachers Association stated that when a student enrolls in a charter school, the school receives funding in the form of the average per-pupil expenditure. The regular school that lost the student, however, does not save the average per-pupil expenditure, but only the marginal cost of educating that student.

So far, so good for the unions. They make a clear and defensible point about the difference between fixed and marginal costs of education. But they fail to consider the reverse corollary. All public schools are funded in reference to average per-pupil expenditures. If a school system’s marginal costs are low (as the unions are claiming), each new student who enrolls in a regular public school brings with him or her revenue in excess of costs, or, as economists like to call it, profit.

In their eagerness to score points against private and charter schools, the unions are playing with dynamite. Do they really want the public to make funding decisions on the basis of marginal per-pupil spending? Do they really want to argue that charter schools are eating into their “profit?”

5)  Marysville Strike Reduced Enrollment. Teachers in Marysville returned to work after a 49-day strike, the longest in Washington State history, despite the lack of a contract settlement. State law requires 180 school days so those strike days will be made up and employees will not lose pay. Nevertheless, the strike had an indirect negative effect on salaries.

When school resumed on October 22, enrollment had declined 5.4 percent, by far the largest drop in the local area. The district will now receive $2 million less than it had budgeted for the 2003-04 school year. The district’s director of finance said the missing students were now in neighboring districts, private schools, or being home-schooled.

6)  Non-Union Teachers Stage Job Action. I’ve been covering teachers’ unions for a long time, but this is a new one on me.

Last Tuesday, over 200 St. Louis public school teachers apparently held a sickout to protest the district’s new sick leave policy. On Wednesday, 152 teachers extended the protest to a second day. The sickout was unique in that it was staged by teachers who do not belong to the local union, which is affiliated with AFT.

In fact, the job action is partially a protest against the union, which negotiated a contract that included a provision restricting the accumulation of sick days. Strikes and other job actions are illegal in Missouri and the sickout was not sanctioned by the union. District officials plan to ask teachers for doctors’ notes.

7)  “Take Charge and Steer Things.” On October 6, EIA reported on a proposal within the Cleveland Teachers Union (CTU) to eliminate the practice of having four committee chairmen, appointed by the president, sit on the union’s 24-member executive board. The proposal was strongly opposed by CTU President Richard DeColibus, but it was approved by CTU’s House of Delegates. After the vote, DeColibus reacted this way:

“While this is undeniably more democratic, the net effect is to reduce the presidency of the union to a weak, ineffective and irrelevant position. Being one of twenty with all being exactly equal sounds wonderful until you start to deal with difficult and controversial issues; then, you need someone to take charge and steer things in a given (hopefully correct) direction…. Hey, if you want a weak and indecisive union, this is America and you’re entitled to it. That’s what you will have in April when you’re stuck with a brand new president who has no authority to govern.”

8)  Quote of the Week. “How much has the town offered? How much is the union demanding? Are they discussing ways to help the town get control over escalating health insurance costs? Are there other unresolved issues? No one is saying because, as this newspaper reported Tuesday, ‘neither side could disclose specific information about what is being negotiated. The ground rules for negotiating state that nothing can be released until a contract is signed.’ In other words, the people who will be responsible for paying for the next teachers’ contract – the taxpayers of Seymour – have no right to know anything until the deal is signed, sealed and delivered.” – from the editors of the Waterbury Republican-American, describing contract negotiations in the town of Seymour, Connecticut. (November 7 Waterbury Republican-American)

 

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