Thinking about the Cost of Educating Students via the Madison School District, Virtual Schools and a Madison School Board Member Ed Hughes email to State Senator Fred Risser

Susan Troller:

Madison School Board member Ed Hughes sent me an e-mail pointing out another vexing problem with Wisconsin's school funding system and how it penalizes the Madison district, which I've written about in the past. Hughes notes in his e-mail "This particular wrinkle of the state school financing system is truly nuts."
Hughes is incensed that the IQ Academy, a virtual school operated by the Waukesha district, gets over $6000 in state aid for poaching students from the Madison district while total state aid for educating a student in a real school here at home is $3400. Waukesha makes a profit of about $500 per student at the expense of taxpayers here, Hughes says. And that's including profits going to the national corporate IQ Academy that supplies the school's programming.

The complete text of Ed Hughes letter to Senator Risser:

Sen. Risser:

As if we needed one, here is another reason to be outraged by our state school financing system:

This week's issue of Isthmus carries a full page ad on page 2. It is sponsored by "IQ Academy Wisconsin," which is described as a "tuition-free, online middle and high school program of the School District of Waukesha, WI." The ad invites our Madison students to open-enroll in their "thriving learning community."

What's in it for Waukesha? A report on virtual charter schools by the State Fiscal Bureau, released this week, sheds some light on this. The Madison school district gets a little more than $2,000 in general state aid for each of our students. If you include categorical aids and everything else from the state, the amount goes up to about $3,400/student.
However, if Waukesha (or any other school district) is successful in poaching one of our students, it will qualify for an additional $6,007 in state aid. (That was actually the amount for the 2007-08 school year, that last year for which data was available for the Fiscal Bureau report.) As it was explained to me by the author of the Fiscal Bureau report, this $6,007 figure is made up of some combination of additional state aid and a transfer of property taxes paid by our district residents to Waukesha.

So the state financing system will provide nearly double the amount of aid to a virtual charter school associated with another school district to educate a Madison student than it will provide to the Madison school district to educate the same student in an actual school, with you know, bricks and mortar and a gym and cafeteria and the rest.

The report also states that the Waukesha virtual school spends about $5,500 per student. So for each additional student it enrolls, the Waukesha district makes at least a $500 profit. (It's actually more than that, since the incremental cost of educating one additional student is less than the average cost for the district.) This does not count the profit earned by the private corporation that sells the on-line programming to Waukesha.

The legislature has created a system that sets up very strong incentives for a school district to contract with some corporate on-line operation, open up a virtual charter school, and set about trying to poach other districts' students. Grantsburg, for example, has a virtual charter school that serves not a single resident of the Grantsburg school district. What a great policy.

By the way, Waukesha claims in its Isthmus ad that "Since 2004, IQ Academy Wisconsin students have consistently out-performed state-wide and district averages on the WKCE and ACT tests." I didn't check the WKCE scores, but last year 29.3% of the IQ Academy 12th graders took the ACT test and had an average composite score of 22.9. In the Madison school district, 56.6% of 12th graders took the test and the district average composite score was 24.0.

I understand that you are probably tired of hearing from local school board members complaining about the state's school funding system. But the enormous disparity between what the state will provide to a virtual charter school for enrolling a student living in Madison, as compared to what it will provide the Madison school district to educate the same student, is so utterly wrong-headed as to be almost beyond belief.
Ed Hughes

Madison School Board

Amy Hetzner noted this post on her blog:

An interesting side note: the Madison Metropolitan School District's current business manager, Erik Kass, was instrumental to helping to keep Waukesha's virtual high school open and collecting a surplus when he was the business manager for that district.

I found the following comments interesting:

An interesting note is that the complainers never talked about which system more effectively taught students.

Then again, it has never really been about the students.

Madison is spending $418,415,780 to educate 24,295 students ($17,222 each).

Related: Madison School District 2010-2011 Budget: Comments in a Vacuum? and a few comments on the recent "State of the Madison School District" presentation.

The "Great Recession" has pushed many organizations to seek more effective methods of accomplishing their goals. It would seem that virtual learning and cooperation with nearby higher education institutions would be ideal methods to provide more adult to student services at reduced cost, rather than emphasizing growing adult to adult spending.

Finally Richard Zimman's recent Madison Rotary talk is well worth revisiting with respect to the K-12 focus on adult employment.

Fascinating.

Posted by Jim Zellmer at February 21, 2010 12:18 PM
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