Category Archives: education finance

DeBlasio’s FY 2018 NYC Budget, Detroit’s Bankruptcy, and NYC’s Recovery from the 1970s

I was upset that a summary table that showed how much NYC spends on the largest government functions, including debt service and pensions, and how much of this is funded by locally-raised money, was removed from NYC’s “Budget Summary” documents.

https://larrylittlefield.wordpress.com/2017/01/25/the-deblasio-budget-hiding-the-facts/

But there is good news. The table, albeit without a column for spending by agency on judgments and claims and without a comparison with prior years, is back in a more detailed document that came out later, the latest “Message of the Mayor,” page 81.

http://www1.nyc.gov/assets/omb/downloads/pdf/mm4-17.pdf

And that allowed me to easily update the tables and charts I produced last year comparing FY2014, Mayor Bloomberg’s last budget year, with FY 2017, as proposed. A spreadsheet with the tables and charts for FY 2007, FY 2014 and FY 2018 as proposed is attached below.

But in the rest of this post, I’d like to review the “Unsaid” about Detroit’s bankruptcy and New York City’s recovery from the 1970s, and their relevance to NYC today.   Because in my view, despite all that was written and said about those two past events, few have identified the most important reasons why they actually happened.

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Local Government Employment in New York: Annual Average Data for 2016

About a month ago, the U.S. Bureau of Labor Statistics released 2016 annual average employment data from the monthly Current Employment Survey. It isn’t the most detailed information with regard to local government, but it is the most timely, so I once again put together a series of charts showing the trends.

The data shows that after a period of austerity, local government employment is rising again in New York State. The increases are not large, and in New York City local government employment is still rising more slowly than private sector employment. But in the Rest of New York State the increase in the ratio of private employment to local government has halted. Moreover, elementary and secondary school employment, which soared in the Rest of New York State under former Governor George Pataki’s “everybody onto the payroll to get a pension” policies, is rising again despite (at least according to the latest data I’ve seen) falling school enrollment. And in New York City, private sector (but presumably mostly Medicaid-funded) home health care employment has soared at a pace and to a level that raises questions about what the heck is going on.

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Education: Census Bureau Government Finances Data for FY 2004 and FY 2014

For the United States and most parts of it, the decade from FY 2004 to FY 2014 saw soaring public employee retirement costs, and weak growth for taxpayer income. In response to these trends state government assistance for public elementary and secondary schools fell relative to the income of all state residents, and total spending on public schools fell as a share of everyone’s income as well. But there was an offsetting factor. School enrollment fell as a share of the total population, and in many cases in absolute numbers, as the very large “Baby Boom Echo (Gen Y, Millennials) Generation exited school with smaller generations behind them.

At the same time, and perhaps driven by the same demographic shifts, state and local government spending on public higher education increased when measured per $1,000 of everyone’s personal income. But how did different states compare, and how was per-student elementary and secondary school spending affected? That is the subject of this post.

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State and Local Government Finance: Census Bureau Data for FY2014 Compared with FY 2004

The Governments Division of the U.S Census Bureau released its detailed state and local finance data for FY 2014 on January 31, and I have compiled it and produced a couple of large tables – one for all state governments and one for all local governments by state – comparing that year with FY 2004. The data shows, by category, the amount of revenues (property taxes, federal aid), expenditures (public school spending, police department spending) and debt for every state in the country and, at the local government level, for New York City and the Rest of New York State separately.

To be comparable across states and across the years, the data is presented per $1,000 of the personal income of all the residents of each state. Think of it this way. Your household else spends X percent of its household budget on food, X percent on housing, etc. And, via the taxes and government fees you pay, X percent of its income on public schools, X percent on police, etc. The data is presented per $1,000 rather than as a percent to make the data for small categories easier to see. I plan to write a series of posts, with additional tables and charts, for different aspects of state and local government finance separately. But in the triumph of hope over experience, in this post I will explain where the data comes from and how it was compiled, provide the whole database for download up front, and invite people to look at the numbers themselves at the same time I do, and decide for themselves what the data means. Before getting my take on it.

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The DeBlasio Budget: Hiding the Facts

What is the most important fact about Mayor DeBlasio’s budget proposal?

http://www1.nyc.gov/site/omb/publications/finplan01-17.page

The unsaid.  During the Bloomberg Administration the “Budget Summary” document had included summary tables that showed how much money was spent on each agency for wages and salaries, how much for pensions, how much for other benefits, how much for interest, how much for lawsuits, how much for other non-personnel costs such as contracts and supplies, and how much of each function is funded by the city, and how much by other layers of government.

Last year DeBlasio provided that table for his budget proposal, but not for past years.  But I was able to make a comparison with that table from prior years and write this post.

https://larrylittlefield.wordpress.com/2016/05/12/new-york-citys-fy-2017-budget-proposal-more-for-those-who-have-more-leaves-less-for-those-who-have-less/

This year DeBlasio has apparently ordered that this information be omitted from the Budget Summary altogether, which is exactly the sort of stuff I fear we can expect from Trump.

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Schools Are Obsolete II

Not long ago, New York City Comptroller Scott Stringer, as part of a campaign to obtain the support of the United Federation of Teachers, released a report critical of the financial practices of the charter school network Success Academy. A page 21, the report noted:

https://comptroller.nyc.gov/wp-content/uploads/documents/FK15_092A.pdf

“Success Academy invoices to DOE bi-monthly for per pupil funding for general and special education services that it provides to students who reside in New York City. For Fiscal Year 2015, Success Academy was entitled to receive $13,777 per year for each of its students who reside in New York City. Further, Success Academy was entitled to receive an additional $10,390 per year for each student that was mandated to receive and was provided special education services for between 20 to 60 percent of the school instructional week, and an additional $19,049 per year for each student that was mandated to receive and was provided special education services for more than 60 percent of the school instructional week.”

My first impression is that’s a whole lotta money. For non-special education children, that is $275,540 per 20 students and $165,324 per 12 students. On the other hand, I know that this is less than the amount NYC district schools receive. Does that make me think that charter schools are a better deal? In part. But what it mostly does is further convinces me that education needs to be rethought and reorganized from the ground up. For that amount of money, or even less money, a new system, unencumbered by the deals, favors, practices and privileges of the past, could provide far better values for students, younger and future teachers and taxpayers alike. For the existing system, school reform has been defeated and its time to face it. Only by making a clean break will anything get better, or even avoid getting worse.

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Public School Finance in the Bloomberg Years: A Detailed, Comprehensive Analysis for NYC and Elsewhere

From FY 2002, the last NYC budget before Mike Bloomberg became Mayor, to FY 2014, the last budget of his Mayoralty, New York City’s public school expenditures per student increased by 38.4% in real dollars (adjusted for inflation and for relative private sector wages that year). That is a huge increase in spending on the most expensive public service there is, during a decade when the pay of most private sector workers fell behind inflation. The U.S. average gain in public school spending per student was 3.8%. During the Bloomberg years NYC’s spending on instructional (mostly teachers) compensation per student increased 49.3%, including a 22.4% increase in wages and salaries and 125.0% (more than doubling) on benefits, including pensions. The U.S. average gains were 6.3% for total compensation and 43.9% for benefits, with a 2.4% decrease in instructional wages and salaries per student.

And yet at the end of this period, during the 2013 campaign for Mayor, every candidate but one said either that the schools were no better, or perhaps worse, than they had been before “Education Mayor” Bloomberg and the shift to Mayoral control. Most so-called education advocates agreed. The United Federation of Teachers, which funds many of those advocates, demanded even more money for its members, in exchange for less time spent working with students, and lower expectations as to their level of effort. And got it. And yet there is still extensive resentment, by many of those speaking for those working in education in NYC, toward the people and children of the city. A feeling that they are still being treated unfairly and deserve even more. But is that true? And what was actually received in exchange for all that additional money?

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