Will Apartments Overcrowd GMSD Schools?

Recently, the issue came up as to whether GMSD has adequately planned for growth in the event of a full build-out in the city of Germantown. Specifically, will new apartments overcrowd our schools?

Parents and the community members can rest assured that GMSD officials are continuously reviewing data and monitoring student enrollment. They have identified our district’s needs based on Germantown’s projected growth and expected demographic changes. Armed with this information, GMSD has implemented the necessary capital improvement plans to meet our needs as a growing district.

Take a look below for more specific information.

Q & A with Superintendent Manuel:

What’s the current enrollment at GMSD schools?

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What is the difference between programmatic and optimal capacities?

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What are the capacity issues for our schools?

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What is being done to alleviate K-5 overcrowding?

Check out this link to see GMSD’s newest school being built.

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Will all portables be removed in the near future from GMSD campuses?

“Yes. We will be removing all portables once the new school is built and school numbers will be able to accommodate optimal staffing.”

See the link from GMSD’s website

 

What space will be available for growth when the new elementary school opens? 

“You can see the total amount of space available once we open [the new elementary school]. Please look at the attached link below. It shows our forecasts for total build out in the city.”

See the link from GMSD

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In the event of a total city build-out, could GMSD still accommodate all students?

“Even if the city was completely built out. We would have capacity at k-5. See chart below.”

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What about middle school students, what are your plans for them?

“We do not have any capacity at the middle school level and need a wing and additional gym at Houston Middle school.”

 

These numbers are all based on a demography report, are you sure it is accurate?

“The demographer was very accurate in his forecasts for all schools. In the first year after his study, he projected within 5 students in the k-5 grade band. The second year after his study, we had 57 students less than projected because the district reduced the number of transfer students we accepted.”

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Looking for more info? Check out this link from GMSD.

The Truth Behind Overcrowding at GMSD Schools

Getting our own municipal schools in Germantown wasn’t easy. Voters in each of the suburban towns and cities approved referendums on forming municipal school districts in August 2012. But the results were voided months later in a decision by U.S. District Judge Samuel “Hardy” Mays and the Tennessee state legislature responded in 2013 by passing a new law that lifted the statewide ban on the creation of such school districts. With the new law, aldermen in each of the six towns set a new election date for the same ballot questions.

After these legal battles and two votes of the citizens, the Germantown Municipal School District (GMSD) opened its doors in 2014. Since then, the district has grown, and the city has benefited from these excellent schools. Overall, the district has grown 638 (15%) resident students in its first four years according to the District’s 2017 Facilities Plan.

Achievements

During those four years, the District has achieved quite a lot.

  • Houston High School has the highest public high school district ACT average in the state for the third consecutive year
  • GMSD was named a District of Distinction in 2017 for work on Exceptional Student Education Transitional Experience
  • Houston Middle School counselors were recognized with the RAMP recognition from ASCA this year (the only middle school in Tennessee to meet qualifications for the counseling program award)
  • Memphis Business Journal recognized Houston High as both the Most Challenging High School and the #1 Best Public High School
  • Each year, Houston High sets new records for students in the HHS 30+ ACT club

Because of these accolades, GMSD has become a school district of choice for many young families as evidenced by how quickly sold signs replace for sale signs in Germantown. Since 2013, the average number of days on the market for Germantown homes has decreased 65% from 113 to just 40, according to statistics from the City of Germantown.

Capacity

As a result, many are concerned about overcrowding at our schools and wonder what the GMSD administration is doing about it. You may even see or hear some candidates campaigning on this topic.

In the Spring of 2017, the district hired a professional demographer to project enrollment for the district over the next ten years. If you want to read the entire study, it can be found here.

Total district enrollment is forecasted to increase by 286 students, or 4.9%, between 2016-17 and 2021-22. Total enrollment is forecasted to decline by 108 students, or -1.8%, from 2021-22 to 2026-27.

But what does this mean for our current schools’ capacity? Many are concerned that the schools are overcrowded, and students are suffering as a result. Let’s take a look at capacity.

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Screen Shot 2018-08-21 at 8.21.01 PM.pngMaximum capacity is defined as the number of students that can be accommodated within a classroom. The utilization rate determines how efficiently the student population and programs operate within the available classroom space. Utilization rates are at or above 90 percent at each school. The district strives for enrollment at each school to be below the maximum capacity allowed by state standards and as such has defined optimal capacity as 2 students per teacher below the state maximums.

To achieve an optimal capacity, the district committed to various options to balance enrollment among the elementary and middle schools. Utilization rates currently above the desired thresholds and are being addressed temporarily through the use of modular classrooms at Dogwood and Farmington. This is a legacy solution inherited from Shelby County Schools. Removing portables has been a high priority item for GMSD as evidenced by the investments at Riverdale which facilitated the removal of portables there.

However, as seen in the maps above, the opening of the new Forest Hill Elementary School in 2019 will provide relief to Dogwood, Farmington, and Riverdale Elementary. Rezoning students at Dogwood, Farmington, and Riverdale will relieve capacity issues at these schools, allow the removal of modular classrooms that have been added to Dogwood and Farmington, and allow the district to explore staffing at a more optimal capacity for teacher to student ratio.

GMSD is watching closely the growth at the middle school level as well. With support from the City, they are preparing to fund a $5 million expansion at Houston Middle School as soon as fiscal year 2020. The absolute need will be determined once GMSD has carefully reviewed growth projections, the results of revising the school transfer policy and the effects of zoning changes planned for the 2019-2020 school year.

Support from the City of Germantown

In fiscal year 2019, the City of Germantown’s general fund budget allocates $6.9 million to directly support GMSD. This includes $2.5 million in maintenance of effort funding required by the state.

What is maintenance of effort? If you remember our previous post The Truth About School Funding and Sales Taxes, we explain the term “Maintenance of Effort” (“MOE”) generally refers to a requirement placed upon many federally funded grant programs that the State Education Agency (SEA) and Local Education Agencies (LEAs) or school districts, demonstrate that the level of State and local funding remains constant from year to year.(1)

Our public schools are mostly funded by revenue generated primarily from state sales tax and county property tax. Each county in Tennessee is required to operate and contribute funding for a public system of education. In order for a municipality to operate its own separate and independent district, the municipality must provide SUPPLEMENTAL funding. It is up to the municipal governing body to determine the amount and source of supplemental funding. We should all thank the administrators who crafted the wording of the resolution because they understood this and thus worded the referendum accordingly.

This is why the fiscal policy of tying school funding to a variable revenue source is dangerous. When sales tax revenues drop the only other source to pay that obligation is your property taxes. In a recession, not only would you have the negative impact of a down economy, the city would be in a position to be forced to raise your property taxes to meet the MOE requirements.

Additionally, the City of Germantown provides an additional $4.4 million to cover costs related to student safety and continuing the improvement of our school facilities.

More specifically:

  • $1 million for replacement of the failing boiler system at Riverdale School with an additional $1.5 million included in the fiscal year 2020 budget to complete the work
  • $1.36 million in debt service payments for the new elementary school currently under construction
  • $560,000 for school resource officers and crossing guards at each school
  • $500,000 for safety and security improvements at each school
  • $440,000 in debt service payments for the Riverdale addition
  • $355,000 court-mandated annual payment to Shelby County Schools
  • $200,000 each year for the next five years to help fund Houston Arts and Athletics Foundation field house construction and auditorium renovation projects at Houston High School.

As we head toward the November election, remember that your city government and the GMSD School Board actually has been planning for overcrowding in our schools and for any scenario growth in our city may throw at us.

Reference

(1)   Maintenance of Effort: The Basics 

 

 

 

The truth about school funding and sales taxes

It’s budget season again and inevitably we have claims about sales tax and school funding being tied to each other. If that sounds familiar it should, the same claims were made last year.

Everyone who purchases goods in the City of Germantown pays a 9.75% sales tax on those goods. That tax rate is made up of 7% for the State of Tennessee, 2.25% for Shelby County and 0.5% for the City of Germantown. In 2012, we voted to establish our own school district but to do so required that the city contribute funding equal to $0.15 of the property tax rate. This is only the City’s portion of funding. School funding is a mix of Municipal, County, State and Federal funds. To meet this obligation we voted to raise the City’s portion of the sales tax rate from 0.25% to 0.5%. The referendum was worded so that the funds would not to be tied to the schools but would easily meet the requirements for generating the funds the City would be obligated to contribute to GMSD. 

In other places, especially those with small independent school districts, public education is funded by a school tax. While school tax laws vary, typically, the taxing authority lies with the school board that determines the tax rate. Along with that power to levy taxes, the school board bears the responsibility of providing for the needs of the district with school tax revenue. This means the school board must balance their budget based on the revenue they generate from the school tax they levied on taxpayers. And ultimately, the Board of Education must answer to the public politically for the imposed tax rate and stewardship over revenues.

We don’t work that way here. Our school boards do not have the authority to levy a tax. Instead, our public schools are mostly funded by revenue generated primarily from state sales tax and county property tax. Each county in Tennessee is required to operate and contribute funding for a public system of education. In order for a municipality to operate its own separate and independent district, the municipality must provide SUPPLEMENTAL funding. It is up to the municipal governing body to determine the amount and source of supplemental funding within the parameters of state law. So, what are those parameters?

At this point lets stop for a moment to discuss maintenance of effort or MOE.

The term “Maintenance of Effort” (“MOE”) generally refers to a requirement placed upon many federally funded grant programs that the State Education Agency (SEA) and Local Education Agencies (LEAs) or school districts, demonstrate that the level of State and local funding remains constant from year to year.(1)

Ask the City of Memphis about this. They famously tried to cut funding from Memphis City Schools and ran into issues with MOE. So what does MOE have to do with the sales tax? Great question! Sales taxes are elastic, meaning that they fluctuate based on economic conditions. More simply, it fluctuates based on how much you and I shop in Germantown. Had we tied the sales tax to the schools, MOE would require that every time we break a record in sales tax collections, we would then have to meet that funding level going forward (even if we hit a recession and collet fewer taxes). You can always go up but never down, it is a one way street with MOE.

The administrators who crafted the wording of the resolution understood this and thus worded the referendum accordingly. It allowed the new sales tax rate to fund our obligations without escalating due to economic ups and downs. This is fiscally smart because when sales tax revenues drop the only other source to pay that obligation is your property taxes. In a recession not only would you have the negative impact of a down economy, the city would be in a position to be forced to raise your property taxes to meet the MOE requirements.

This is why the fiscal policy of tying school funding to a variable revenue source is dangerous. That policy reduces the predictability of property tax rates for people on fixed incomes. One year you are fine and the next we have a tax hike to offset sales tax shortages. 

See the CA article below to read how Aldermen Barzizza and Massey raised the same issues last year…

Despite public view, sales tax hike was never intended solely for suburban school systems

Bonus – Why Sales Tax vs. Property?

Sales tax is a burden shared by everyone purchasing goods in Germantown. It allowed the City to meet the revenue generation needs with out over burdening home owners. It spread that revenue generation across the broader community. You come from out of town and spend money in Germantown? You help fund our schools. And we thank you!

Reference

(1)   Maintenance of Effort: The Basics