Financial Package Issue 12

feeling the

AFTER $HOCK East and the community experience reverberations of the American financial crisis in several ways

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page 2 financial 03.01.10

DistrictConflict

Olathe and Blue Valley’s policies for paying teachers with increased workload varies from Shawnee Mission’s >>KatyWesthoff High school teachers in the Shawnee Mission School ers with a sixth class. The payments needed to be approved representatives that meets District, unlike those in the Olathe and Blue Valley districts, are losing their supervisory period to take on more classes without more pay. Under contract, teachers are granted one planning period and one supervisory period on top of teaching five classes. Because of increased enrollment, block scheduling and budget restrictions, teachers are losing their supervisory period to teach a sixth class.

Art teacher Jodie Schnackenberg feels that this difference between teachers with five and six classes is unfair.

“Some teachers have 30 more kids, which is 30 more papers to grade for English classes or tests to grade for math classes,” Schnackenberg said. “I don’t think the district appreciates this extra work.”

German teacher Karen Pearson volunteered to teach an extra class this year in order to split up German 3 and German 4. The skills between the two sets of students are widely varied, and Pearson thought it would best serve the students to have two separate classes. She has lost her planning time, but doesn’t feel she needs it after her experience teaching. Pearson isn’t bothered by the lack of compensation.

“I didn’t go into teaching to get rich,” Pearson said. “The students get what they need. But if this becomes a pattern, teachers should get paid more for the extra work.”

Schnackenberg recognizes what she calls the “catch-22” of the situation: teachers want to keep their jobs, so they take on the extra work. She said she is not ungrateful to the SMSD, but is just frustrated because other districts do pay for the extra classes, though she doesn’t see the district policy changing any time soon.

“An entire teacher could get a job,” Schnackenberg said.

“But we can’t afford them. We’ve got the students and the space, but the money’s not there. That’s frustrating.”

The Olathe school district has the same problem, but teachers are getting compensated for their extra classes. For the first time, the district provided $1,000 this year for teach-

by the Olathe Human Resources office. The Executive Director of Secondary Personnel and Services at Olathe, Lowell Ghosey, reported that only four or five situations called for the payment across 12 schools. “[The payment] could prevent the need to hire another teacher, thereby still saving us money in the bigger picture,” Ghosey said.

Leigh Anne Neal, the Director of Communications for the SMSD, says that block scheduling is the key factor in teachers losing their supervisory period.

“Budget constraints are an issue,” Neal said. “But the block schedule requires more staff to be teaching six classes due to the seminar time.”

More teachers are needed to supervise all the seminar classes, causing a greater need for class time. According to Neal, Shawnee Mission South doesn’t have block scheduling and all teachers have five classes, a supervisory period and a planning period. These teachers are paid the same as teachers at East with six classes.

At the Blue Valley district, Scott McWilliams, the Director of Human Resources, says the high schools operate with the same schedule, even with block.

“In Blue Valley, full-time high school teachers are placed on a salary schedule based on experience and education,” McWilliams said.

According to Loralee Baker-Rapue, the Director of the Communications Department in Blue Valley, the Professional Council negotiates contracts. The Professional Council is a group that represents both districts administrators and members of the Olathe teacher’s union, the National Education Association (NEA).

The NEA is the largest teacher’s union and works with school districts across the country, calling themselves “the voice of education professionals” on their official Web site, NEA.org. Spanish teacher Linda Sieck, East’s NEA representative, says there is a bargaining team made up of NEA

before the school year to negotiate contracts for teachers at a district-bydistrict level.

Shawnee Mission

Olathe Blue Valley

>>KatieEast Currently, the SMSD budget can’t allow for negotiations with the bargaining team to change the six-period issue. Sieck says the district is handling the situation diplomatically and is expressing their appreciation for the extra work teachers are putting in.

The Blue Valley and Olathe districts pay teachers for teaching extra hours, Shawnee Mission does not.

Helpfor the>> Homeless New policy could provide increased aid to students in need

US Foreclosures

3.2 million in 2008

State Funding for SMSD $14.5 million cut for ‘09/’10

Base Student Aid $4,012 per student

Student Aid Cut

$421 per student since ‘08

less students may be struggling outside of the classroom, the district still expects them to succeed at school.

“Regardless of the economic status of the student, we have high expectations for all of our students,” Cain said.

“We just want to really make sure that we don’t have barriers in the place of these students accessing that curriculum.”

The Olathe School District already has a policy on homeless students and currently has 176 such students in its schools.

‘‘

>>SammiKelley

Feeling the Shockwave

My dad has to work at home now because his job was moved to Texas and Mexico, so instead of making us move, he started working out of our house.

Budget Cuts

$10.5 million last year

Sophomore L e

because of the guidelines published in 2009. The policy was also proposed because the district has experienced a growing number of homeless students since the economic downturn.

“As we see economic conditions, being what they are, you know everyone’s impacted by that,” Cain said.

The policy defines a homeless student as “A child or youth who shares housing of other persons due to loss of housing, economic hardship or a similar reason; lives in a motel, hotel camp ground or other location due to the lack of alternative adequate accommodations; lives in an emergency or transitional shelter; has been abandoned at a hospital; or is awaiting foster care placement.” Also, a homeless student is a student whose nighttime residence is not ordinarily used as a regular sleeping accommodation for human beings.

Typically, homeless students fall under the free and reduced lunch umbrella, according to Cain, meaning the district gives them financial assistance to ensure they are given the same opportunities that other students in the district have. With the new policy, the district will also provide transportation aid for its homeless students. The district homeless coordinator will take each student’s case individually and work to ensure they receive the same opportunities as the rest of the district’s students. Even though home-

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LoganHeley

In February, 231 homeless students were enrolled in the Shawnee Mission School District, according to the district’s Associate Superintendent for Educational Services, Dr. Curtis Cain. This number is down from last year’s year-end total of 308, but higher than the 186 enrolled in the district two years ago. Cain believes there is a chance this years total might surpass last year’s total by the end of the year.

On Feb. 22, the Shawnee Mission School Board read a proposed district policy regarding homeless students in the district. The policy gives a definition for what a homeless student is, specifies the duties of the newly established district homeless coordinator and enrollment and placement guidelines for homeless students. Cain expects the proposed homeless students policy to be adopted by the Board at its March 8 meeting at the McEachen Administrative Building.

According to Cain, the district wanted to create a homeless students policy to align themselves more with the McKinneyVento Homeless Assistance Act, a national law.

The McKinney-Vento Act became law in 1987 and was reauthorized as part of the No Child Left Behind Act in 2002.

In 2009, the U.S. Department of Education published guidelines for the Act and made youth funds available as a part of the American Recovery and Reinvestment Act. According to Cain, the district has proposed the policy

a nn D hlgren ya

Homeless Students in KC Increased 45% this year

how do i get started?

The best place to begin your investment search is by educating yourself on the various funds and stocks available for purchase. Wheeles suggests using services like Morningstar.com to familiarize yourself with funds or company stocks you might be looking to invest in. If you’re looking to invest in a certain company, Wheeles recommends researching that company before you do so. Check to see if they match with you philosophically.

If there are issues you support, check to see if they support those too. Also, check to see how their company is being viewed. Are they receiving government bailouts? Do they have executives accused of questionable ethics? Setting up a simple Google Alert for that company’s name can keep a potential investor updated on the status of a given company or fund.

The next step is to find the service you want to use to invest your money. Your bank or credit union will usually have a person dedicated to just financial advice and investments. Also, there are many investment companies in the area, such as Wheeles’ Morgan Stanley, that will match you with a financial advisor who will help manage your investments for you. Online investment services are another option. Services like E-Trade and Sharebuilder.com are examples of online stock trading sites.

Online services are generally the easiest to deal with, but you are on your own when it comes to advice. That is why many choose to set up a portfolio with a financial adviser.

Make sure to examine the costs of the service before you invest. If you decide to go with a financial adviser, it would benefit you to meet with the adviser before you sign any agreements and discuss their investment philosophies to make sure you’re both on the same page.

what should i invest in?

dollars

Wheeles suggests that teens involve themselves in mutual funds, instead of individual stocks, to begin their portfolio. Mutual funds consist of a diverse number of publicly traded companies and generally produce a fairly stable return. Generally, a fund is managed by an established financial manager. The manager of the fund then decides which companies to purchase and in what amounts.

There are three different “share classes” for mutual funds: A, B and C. In most cases, the “A” class should only be purchased if the investor is looking for a long-term investment.

“A” class shares are “front-load” shares. This means that the investor pays an upfront fee to purchase the fund and then little or nothing to retain it each year. Investors looking to invest for less than five years should look to “B” and “C” class shares instead of “A” shares.

The “B” and “C” classes typically are purchased by investors looking to invest on a shortterm basis. “B” shares have “back-end” loads which mean that while the investor won’t have to pay an initial fee, but they will most likely be required to pay a fee when they sell the fund.

Investment service providers have begun discouraging or even eliminating “B” shares from their sales pitch largely because of their lack of pay off in the long run.

For investors looking to sell their funds before the five year mark, “C” shares are probably their best bet. “C” shares are “level-load” shares. They don’t charge an initial fee and the fee paid upon selling the fund is small or their may not be one at all depending on how large your account was.

an investment in action: “A” Shares “B” Shares “C” Shares

$1,648 $1,474

A how-to guide in smart investing

>>LoganHeley

As teenagers, we don’t often think about how we’re going to pay for retirement or even how we’re going to pay for college. “Investing” and “financial planning” are things that tend to intimidate young people, but, in reality, they shouldn’t. Keeping track of a portfolio is about as easy as checking Sherron Collin’s stats from the last KU game.

“If you can follow Big 12 Basketball, you can follow the stock market,” local Morgan Stanley financial adviser Barry Wheeles said.

In fact, teenagers are the ones that should be investing. Getting such an early start can do wonders in the end. Investing just a little now can set you up for life later... that is, if you play your cards right.

how much money should i invest?

A good rule for teens to follow is to not invest an amount that you know you’ll need in the near future. If you know you’re going to need the money to pay for something such as college or a car within the next few years, DON’T INVEST IT. No investment service can promise they won’t lose your money and if you make a gamble, it might not pay off. Don’t invest what you don’t have. This may sound obvious, but some investors get caught with large debts because they overestimated how much they could actually invest.

Teens with a steady income, no matter what size, should consider setting goals for saving their money or investing it. Even if you feel like its an insignificant amount, you could be surprised. Putting your summer job money in a Roth IRA and letting it sit until retirement can set you up quite well. Two-thousand dollars put in a Roth IRA every summer of a teen’s high school career can yield over $1.1 million.

Wheeles loves the “Rule of Seven” example for long-term investors. The “Rule of Seven” says that your investment will double after 10 years if you have a seven percent interest rate (you can find government bonds with a seven percent interest rate at www.treasurydirect.gov). Though the amount you initially invest as a teen might not be much, the interest over time in addition to the amount you add to the fund later in life can make a once insignificant amount turn into retirement goldmine.

how do i keep up with my stocks?

Depending on what type of service you use to invest, the way you keep track of your investments will change. Online services will allow you to check your portfolio by simply logging on. If you use a financial adviser either from your bank, credit union or a private company then you’ll need to contact them personally to check on your investments. However, your financial adviser will not honor any investment instructions given in a voicemail because of security and communication concerns.

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Feeling the Shockwave

$569 $264

after 1 year *all numbers assume a 5 percent annual return

top performing

INDUSTRIES:

after 10 years >>http://news.morningstar.com/articlenet/ Photography

21.81% in the past month

Non-Metallic Mining

11.70% in the past month

Audio & Video Equipment 10.26% in the past month

Computer Peripherals

8.84% in the past month

Sophomore N a

$558

I invest in the stock market because it’s a good learning experience. It helps you to understand economics and gets you ready to deal with your finances in the future. My advice is to buy low and sell high.

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the cost of the share of stock

say you’re looking to invest $10,000 in a mutual fund. which one is right for you? $1,911

dimes to

issue 12 financial page 3

ie Barnes ta l

Jewelry & Silverware

8.82% in the past month

page 4 financial 03.01.10

considering the cuts

Clearing his throat and skipping the usual pause that precedes a presentation filled with bad news, Shawnee Mission School District Superintendent Dr. Gene Johnson addressed the auditorium by clicking to the first slide: “School Funding: A Time for Crisis - A Time for Action.”

The crowd of approximately 120, seated in the East auditorium on Feb. 16 for the Board of Education’s first of five Financial Forums, listened for an hour and a half as Johnson met every glum expectation that the meeting had promised. Designed to answer community questions about rumored budget cuts, the forums were open presentations that were concluded with a half hour of Q&A from those in attendance.

The forum was marked by slides describing SMSD’s recent budget crisis and their expected solutions. State funds had fallen short, stimulus money would be gone in two years, local and Federal support did not meet SMSD’s need this fiscal year, all while the district population was on the rise along with the demand for more support for student resources.

To counter the rapid financial losses, the SMSD Board of Education will propose a budget-reduction plan, expected to cut $9 to $11 million from the current budget, at a district-wide board meeting on March 8. As faculty and personnel costs are currently the largest expense of the district, accounting for roughly 75 percent ($20 million per month) of the district’s overall budget, most of the proposed reductions at the meeting will hover around staff.

“We’re just trying to keep our head above the water

financially here,” Johnson said at the forum at East.

Johnson attributed the majority of the district’s financial struggle to the allocation of state budget funds.

The amount of state funding has been declining, the district’s budget was reduced by $3.5 million, which could continue to decrease until a projected $40 million deficit by the 2012 fiscal year.

Alongside staff reductions, the Board may modify special education programs within the district. SMSD budget reports reveal a disparity in state funding for specialized programs, as the state covers only 65 percent of the district’s budget, compared to the 92 percent state-wide average.

At the meeting, Johnson stressed that the quality of education would not be compromised. The first dozen slides outlined the achievements and quality reputation that SMSD had upheld. However, most cuts will be from maintenance, teachers, or administrators as they account for the bulk of the budget expenses.

The Board of Education will consider fee increases with respect to facility rental, such as gymnasiums and all-day kindergarten and make additional cuts to department and school operating budgets. The district may also have to dip into its Contingency Reserve, currently $5.6 million, to balance the budget.

“I’m worried most about the effects of the students,” math teacher Angela Scheiferecke said. “Their opportunities are going to be impacted because we may have to cut some of the programs they are utilizing. The district will have to come to terms that we need to create new sources of revenue in Shawnee Mission.”

STA $HO

Recently announ stem from state and worsening e

>>TimShedor and

county-wide concerns

SMSD’s Johnson County counterparts in Olathe and Blue Valley are witnessing the same red numbers in their budget. Olathe faced a $4.5 million state-funding reduction last year, even after downsizing roughly 250 employees by offering early retirement, creating consolidation through job elimination or forcing resignations.

Last year, Blue Valley School District announced approximately $4.8 million in proposed budget cuts, with 90 percent coming from eliminated or consolidated job positions at the district level.

“We receive a significant amount of money from the state,” Olathe School District Superintendent Pat All said in a recent podcast. “However, having a local budget option would save the district [approximately] $1.2 million [this year].”

The Blue Valley District has plans to open a new school, BV Southwest, and Olathe plans to open Mission Trail Junior High this fall. But unlike Blue Valley and Olathe, SMSD has few intentions to build new schools or to expand. It has a higher student density and a smaller capital outlay - funds raised through local taxes to pay for renovating, building and equipment expenses - than either district because of no new additions, therefore, it has a lower income.

SMSD currently holds a higher teacher-administrator ratio at 18.4-to-1 than most neighboring districts. Olathe has 13.8-to-1; Blue Valley 10.5-to-1. Despite staff reductions, however, Johnson said that the district expects only a two-to-three student increase in classroom sizes.

Furthermore, no schools are expected to close.

“Teachers, no matter that the situation, hold students in their best interest,” Schieferecke said. “Whatever demands the district makes, we as teachers must rise to Trends in Instruction Expenditure Funding for the 2009-10 School Year:

Federal Funds

41 percent since last year

the challenge and continue to provide for our students.”

Under the current Kansas School Finance formula, Johnson County contributes 30.5 percent of the statewide income tax and 25.6 percent of the statewide sales tax. However, the county only receives 15.7 percent of the state support from income tax. In a process known as equalization, the state provides financial support to districts with low property values on a per student basis. Since Johnson County’s property values are the highest in Kansas, districts like SMSD, Blue Valley and Olathe are returned only half of what they contribute to the state.

However, this percentage may quickly change along side the recent rapid flux in Johnson County socioeconomics. The number of SMSD students living in poverty this year increased 163 percent, as Johnson County as a whole saw only a 55 percent increase. Nearly a third of the district’s students are eligible for the free lunch program, a 10 percent increase in the last two years.

“It is likely that more affluent counties will continue to support other parts of the state,” SMSD Budget and Finance Manager Tim Rooney said at the East forum.

“Since Shawnee Mission is currently allowed per pupil funding that ranks in the bottom 10 percent across the state, some have argued that [Kansas] should allow the district to collect more local funding where 100 percent of it stays in Shawnee Mission.”

Breakdown of District’s Expenses Operations & Maintenance 10 School Administration 5.7

Business, Human Resourc Information Services 5.2 Transportation 4.2 General Administration Classroom Instruction & Support 74.2

>>

For additional coverage including a video of the Jan. 16 District budget meeting at Shawnee Mission East, visit smeharbinger.net.

Extraordinary School Prgrm.

125 percent since last year

Summer School

37 percent since last year

Adult Supplemental Ed. 825 percent since last year

Special Education

3 percent since last year

issue 12 financial page 5

solutions across the state

According to SMSD Communications Director Leigh Anne Neal, state funds have struggled in recent years for a variety of reasons. First, state legislators have developed spending plans that include expenses higher than revenue, creating a deficit. Second, legislators have approved tax reductions that have taken effect over the last decade. Third, the economic downturn has caused state revenues to plummet, and since the state does not have enough balances to absorb these losses, it is being forced to reduce its expenditure budgets.

“We think the local education can best manage our budget based on our needs of the local school district,” Rooney said. “Based on the current formula, the state has to try to predict how much each district needs.

There have been significant differences in what the government provides and what the state needs. We’d love to see the local option change and more local authority.”

Seventy percent of SMSD’s coffers are filled by state funds, but this percentage will face a rapid decline in the upcoming years. The state legislature is continuing to propose new and broad financial proposals, such as the recent $11 million proposed cut from the state’s educational budget. Education accounts for nearly 50 percent of Kansas’s total expenses.

Most bills currently in the legislative process concern teacher removal policy, such as advance notice standards and reactivation of retired teachers, but a handful specifically call for reductions to the school budgets.

“There are quite a few bills in the legislature that directly affect school funding,” Kansas House of Representative Pat Colloton said in an e-mail interview.

“We just passed one last week in the House of Representatives that allows a district to draw down some of its funds from their capitol improvement reserves under certain circumstances. Usually amendments to the budget are offered to counter school budget cuts. I have always voted to support these and have sometimes been the legislator who has brought these amendments.”

SMSD has only applied for catastrophic aid, funds that are applied to special education programs, during the 2008-2009 fiscal year. The district plans to apply again this year, and hopes to receive $3.1 million again like last year. However, the a legislature bill may change the catastrophic aid requirements by tightening guidelines and qualifications, which may make SMSD ineligible

ATE OCK

of

nced budget cuts for SMSD e financial discrepancies economy SamKovzan

Annual SMSD Budget

2004-2005

2005-2006

2006-2007 2007-2008 SCHOOL YEAR

General Funds

8 percent since last year

Virtual Education

2008-2009

100 percent since last year

Capital Outlay

To gain a better understanding of how the district spends their money and how it’s changed over the past three years, turn to the back cover of the financial pullout section.

12 percent since last year

Vocational Education

1 percent since last year

‘‘

Feeling the Shockwave

I’ve been applying for tons of scholarships so r inge my parents don’t have to pay ss the full out-of-state tuition at MU. I had to retake the ACT to boost my score so I’d be more eligible for scholarships.

Gifts/Grants

14 percent since last year

Senior Ellie K e

0.7

Total Expenditures

AMOUNT (IN MILLIONS) $100 $200 $300

rces,

Local Revenue

‘‘

State Aid

Capital outlay and construction funds will be reduced by 10 percent, but the bill allows districts to retransfer the money to a regular contingency fund. Once in the contingency fund, a reserve fund for emergency situations, the district is able to withdraw funds and attribute them to various projects in need of funds.

According to Johnson, options unavailable to the district include increasing the level of state funding that Shawnee Mission receives and suspending the requirements of the No Child Left Behind Act, a federal legislation that requires states to develop assessments in basic skills to be given to all students at each grade level.

Johnson also disputed the idea that a statewide tax increase would automatically improve SMSD’s deficits, referring to the plan Kansas Governor Mark Parkinson developed in November 2009.

Parkinson proposed a 1 percent increase in state sales tax and an increased cigarette tax. If implemented, it would add $50 to BSAPP (Base State Aid Per Pupil) for all school districts in Kansas, providing SMSD an additional $1.7 million. Since the district’s reduction plan is expected to defer roughly $11 million from the current budget, this means that the district would still be reducing its budget by around $9 million. Thus, state sales tax would inadequately address the problem.

“When you hear this idea of ‘Let’s support a state sales tax,’ you have to know where that’s all going to go,” Johnson said at the forum. “We’re going to still be reducing our budget for next year by $9 million.”

Rather than rely on state legislature, Johnson believes the district must be able to control its own destiny by means of a greater local authority, which would permit local fundraising to stay in Shawnee Mission and allow the district to finance the programs the Shawnee Mission community desires. Through SMSD’s local option budget, raising $1 million locally equals $3.2 million for the district, whereas $50 per pupil provides only $1.7 million. Currently, the local tax authority allows SMSD to raise taxes to 31 percent of the state’s budgeted income.

Johnson said the Shawnee Mission Board of Education also advocates the development of a new funding formula for Kansas school districts.

“Lots of people are trying to find a new way to fund education in Kansas,” Johnson said. “But in the meantime - either on a [temporary] or permanent basis - we need to be able to control our destiny in Shawnee Mission.”

Enrollment

1 percent since last year

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Affordable Education

issue 12 financial page 7

With several new proposals, President Obama strives to help students pay for college

$5 Billion

.64 percent of the $787 billion American Recovery and Reinvestment Act Early Learning Programs, including Early Head Start, child care, and programs for children with special needs.

$77 billion

9.8 percent of the $787 billion ARRA Reforms to strengthen elementary and secondary education. $48.6 billion to stabilize state education budgets and encourage states to:

Three Steps to Making College More Affordable Fill out a FAFSA form

1

The “Free Application for Federal Student Aid” is a form open to all students trying to recieve some sort of federal aid for college. It determines whether a student is eligible for Pell Grants, Stafford Loans, and other forms of government support in paying for college.

College Funding $30 billion being spent

Apply For Scholarships

2

With literally thousands of opportunities open, students have an endless amount of chances to get some extra money for college. Often times requiring an essay or written assignment, scholarships are a good way to show who you are and why you deserve help towards college.

Elementary Funding $77 billion being spent

Get a Job

3

You can’t always rely on your parents for everything. Bussing tables or working a cash register somewhere are both easy ways to make a little extra cash to help you afford the college of your dreams.

Early Learning Funding $5 billion being spent

Make improvements in teacher effectiveness and ensure that all schools have highlyqualified teachers Make progress toward college and careerready standards and rigorous assessments that will improve both teaching and learning Improve achievement in low-performing schools, through intensive support and effective interventions Gather information to improve student learning, teacher performance, and college and career readiness through enhanced data systems.

Federal Recovery Act Passed on Feb. 13, 2009

$5 billion

.64 percent of the $787 billion ARRA Competitive funds to spur innovation and chart amitious reform to close to achievement gap.

$30 billion

3.8 percent of the $787 billion ARRA To address college affordability and improve access to higher education.

‘‘

Feeling the Shockwave There are people in

America who do not have the things I have, but still college is a reach financially for myself and my family. Another thing that has to come into concern is that I have a sister that’s two years younger than me, and she will be in college concurrently.

Kansas Funds from Act $1.5 billion so far

Senior Patric k

ates degrees in art programs for emerging artistic industries in the nation. Lastly, this program would reward the colleges that graduate the most students.

A $4,000 tax credit called the American Opportunity Tax Credit would help families in need send their children to four-year colleges. This tax credit would be completely free to qualifying U.S. citizens and cover two-thirds of the average public college tuition. The government would use previous tax filings to decide who receives the credit on a need-based level. Those who receive the credit will be required to perform 100 hours of public service a year.

Maureen Mcrae, the Director of Financial Aid at Occidental College, predicts that most students attending her college will participate in this initiative.

“Because of the type of students our school attracts, I would say that our students would take advantage of that,” Mcrae said.

Mack agrees. He believes that KU students who already participate in community service without a monetary reward would continue their service if it included promised help for college.

Also in his proposal, Obama hopes to increase the amount of money given in Pell Grants. Pell Grants provide need-based grants to low-income undergraduates across the nation. Previously, Pell Grants covered 55 percent of cost at a four-year college but in recent years, with growing tuition costs, that number has dropped to 32 percent.

Obama hopes to raise the average Pell Grant from $4,050 to a new maximum of $5,100.

Another of Obama’s goals is to implement an income-based repayment plan on July 1. This government initiative, which was originally led

by Massachusetts Senator Ted Kennedy, is an effort to prevent payments on student loans from exceeding 15 percent of the borrower’s income.

Those who earn less than $16,000 a year, with no dependents would not be committed to making any monthly payments.

Senior Tara Raghuveer, a four-year debater, is familiar with Obama’s Pell Grant plan because it was a case within this year’s debate topic on poverty.

“I think that seniors, especially in this economy, are in need of aid [more] than in the past. The benefit of this aid is it doesn’t exclude the middle class that doesn’t qualify for aid, but still need help paying for college. In this economy, government assistance is vital.”

The American Recovery and Reinvestment Act in invested heavily in education both as a way to provide jobs now and lay the foundation for long-term prosperity. >>WhiteHouse.gov

$117 billion

with over $19,000 of debt, according to a recent study done by the United States Department of Education. In the same study it was revealed that, since 2001, two million “fully qualified” students did not attend college because they couldn’t afford it.

Statistics from that study also revealed that college costs have grown nearly 40 percent in the past five year leaving 60 percent of college graduates with debt. Lauren Asher, president of the Institute for College Access & Success, explained how government officials should counter the high costs of college.

“Policy makers have become increasingly aware over the last several years about the burden that student debt can create in already tough times,” Asher said in an interview with Bloomberg. com. “This proposal gives a signal that if you do need to borrow to pay to go to college, and you’re responsible about repayment, you can do it in a way that doesn’t jeopardize your future.”

Since taking office in January 2009, President Barack Obama has placed a strong emphasis on education reform. He has already enacted a plan reforming the entire nation’s high school education system. His efforts do not stop there. In his Jan. 27 State of the Union, Obama stressed that he will “invest in the skills and education” of Americans. Simply put, Obama said, he hopes to make college affordable for everyone. He feels when this is accomplished everyone will have the opportunity to continue their education past high school.

Obama’s plan may come at a perfect time for high school seniors. Those planning on attending the University of Kansas will experience a rise in housing costs and a slight increase of base tuition according to KU Admissions Counselor Nathan Mack.

In hope to relieve this financial strain, Obama and Vice President Joe Biden developed a five point plan. First Obama and Biden plan to revitalize community colleges. Over 12 million students attend community college each year according to the USDE. Without these schools, Obama said, many students wouldn’t be able to gain the skills necessary to further their education.

Obama and Biden hope to create a Community College Partnership Program to strengthen the nation’s community colleges. The program would provide analysis to determine what students need to continue their education after attending a community college. It will also implement new associ-

EDUCATION REFORM BUDGET

‘‘

>>AlysabethAlbano The average U.S. college student graduates

Ba

rr y

Remaining Funds Used on grants, loans, etc.

>>DanStewart

Breaking

DOWN BILL$

174,662,248

184,033,926 184,790,805 + 5 percent + 0 percent

the 2007-2008 2008-2009 2009-2010

ACTUAL AMOUNT (IN $) INCREASE/DECREASE

REVENUES AND EXPENDITURES

Expenditures Revenues

$240,000,000 $230,000,000

$12.3 Million Deficit

$15.4 Million Deficit

$27 Million Deficit

$38.6 Million Deficit

$220,000,000

An in-depth look at changes in the district’s Total Expenditures over the past three school years

$210,000,000 $200,000,000 $190,000,000 $180,000,000 $170,000,000

DEPARTMENT

Instruction

DEPARTMENT’S PERCENTAGE OF TOTAL EXPENDITURES 2007-2008

55 percent 07-08

57 percent 08-09 50 percent 09-10 25,775,779

26,960,231 + 5 percent

25,586,848 - 7 percent 8 percent 08-09 7 percent 09-10

General Administration

3,295,619 2,268,310 + 45 percent 1 percent 08-09 + 1 percent 1 percent 09-10

School Administration

2,253,756 13,418,157

14,120,777 + 5 percent

14,363,128 + 2 percent 4 percent 08-09

4 percent 07-08

4 percent 09-10 22,590,587

24,446,680 25,914,604 + 8 percent + 6 percent

Operations & Maintenance

8 percent 08-09 7 percent 09-10

7 percent 07-08 31,387,759 + 75 percent

27,160,181

Loss of Federal Stimulus

DEPARTMENT’S PERCENTAGE OF TOTAL EXPENDITURES 2008-2009 AND 09-10

WHAT IS ACTUALLY PAID FOR IN EACH DEPRTMENT?

Student & Instructional Support 8 percent 07-08

1 percent 07-08

2010 State Loss of Catastrophic 2011 State Aid Revenue Reductions Revenue Reductions

Instruction Teacher salaries and benefits, classroom supplies Student and Instructional Support Nurses and Counselors’ salaries, Librarians, Classroom media General Administration Superintendents, business offices School Administration School principals and associate principals Operations and Maintenance Custodians, maintenance workers, repairs, mowing Capital Improvements Mainly equiptment and building repair, computers Debt Services Pays off bonds to build new buildings and major renovation Russell Knapp, District Budget Analyst

17,893,941 - 34 percent

Capital Improvements

6 percent 08-09 9 percent 09-10

8 percent 07-08 23,476,615

22,179,014 - 6 percent

24,075,700 + 9 percent

Debt Services

7 percent 08-09 7 percent 09-10

7 percent 07-08 58,546,828

TOTAL EXPENDITURES 2007-2008 $320,421,815

2008-2009

$323,571,172 1 percent increase

+ 85 percent

2009-2010 31,084,492

$367,961,291 14 percent increase

31,668,293 + 2 percent

Other Costs 10 percent 07-08

10 percent 08-09 16 percent 09-10

AMOUT PER PUPIL $11,883 $12,196 3 percent increase $13,942 14 percent increase