1. PICKFORD PUBLIC SCHOOLS... BARAGA TOWNSHIP SCHOOL DISTRICT... ONTONAGON AREA SCHOOLS... BARK RIVER HARRIS SCHOOL DISTRICT... CHATFIELD SCHOOL... COVERT PUBLIC SCHOOLS... MARION PUBLIC SCHOOLS... VESTABURG COMMUNITY SCHOOLS... ST. IGNACE CITY SCHOOL DISTRICT... L'ANSE AREA SCHOOLS... FOREST AREA COMMUNITY SCHOOL DISTRICT... DETROIT PUBLIC SCHOOLS... POTTERVILLE PUBLIC SCHOOLS... HENRY FORD ACADEMY... HANCOCK PUBLIC SCHOOLS... GENESEE SCHOOL DISTRICT... INKSTER CITY SCHOOL DISTRICT... BUENA VISTA SCHOOL DISTRICT... CESAR CHAVEZ ACADEMY... HOUGHTON-PORTAGE TOWNSHIP SCHOOLS... FULTON SCHOOLS... WESTWOOD HEIGHTS SCHOOL DISTRICT... ECORSE PUBLIC SCHOOL DISTRICT... BLOOMINGDALE PUBLIC SCHOOL DISTRICT... NEGAUNEE PUBLIC SCHOOLS... RIVERSIDE ACADEMY... HARTFORD PUBLIC SCHOOL DISTRICT... HURON VALLEY SCHOOLS... TRAVERSE CITY SCHOOL DISTRICT... WATERFORD SCHOOLS... TROY PUBLIC SCHOOL DISTRICT... FARMINGTON PUBLIC SCHOOL DISTRICT... CHIPPEWA VALLEY SCHOOLS... ROCHESTER COMMUNITY SCHOOL DISTRICT... WALLED LAKE CONSOLIDATED SCHOOL DISTRICT... WARREN CONSOLIDATED SCHOOLS... ANN ARBOR PUBLIC SCHOOLS... PLYMOUTH CANTON COMMUNITY SCHOOLS... LIVONIA PUBLIC SCHOOLS... UTICA COMMUNITY SCHOOLS... CONCORD ANTRIM ACADEMY... MARSHALL ACADEMY... AGBU ALEX & MARIE MANOOGIAN SCHOOL... WESTERN MICH ACADEMY OF ENVIRON. SCIENCE... BLISSFIELD COMMUNITY SCHOOLS... SPRINGPORT PUBLIC SCHOOLS... MCBAIN AGRICULTURAL SCHOOL DISTRICT... TAHQUAMENON AREA SCHOOLS... MANISTIQUE AREA SCHOOLS... MAYVILLE COMMUNITY SCHOOL DISTRICT... HOLTON PUBLIC Why DOES Michigan have over 700 School Districts? Should it? Learning Team: Bob Balwinski, Bob Cipriano, Dan Hanrahan, Dan Schab, Joann Neuroth, Kathy Weller

2. The Challenge Governor Granholm has asked the Education Policy Fellowship Program to prepare a recommendation as to whether her next four-year agenda should include a campaign to consolidate Michigan into fewer school districts. We’ve all taken a week’s vacation to work on this high-paying consulting job. So let’s get started...

3. Our Research Program 1:15 Explore Michigan history 1:30 Explore assumptions/make projections 2:00 Analyze current financial/performance data 2:20 Check public opinion data 2:35 10 minute break-- 2:45 Look at a recent case study 3:45 15 minute break 4:00 Michigan Association of School Boards

4. How many districts now? 552 Local Districts 57 Intermediate Districts 225 Public School Academies (Charter Schools)

5. Historical Perspective Year# of Districts# of Pupils 1880 6,352 362,196 1915 7,337 598,159 1950 4,9181,043,566 1965 1,2271,917,890

6. Number of Districts since 1840

7. How did we get so many Districts? April 27, 1827 First Public School Law Education is a Public Responsibility Legislative Council of Michigan Territory Began the Practice of Organizing Districts Within Township Townships with 50 or More Families Must Provide Schoolmaster No School Could be Larger than 9 Sections Desire of Families to be Close to School House Local Control Michigan Abhors Centralization No Plan (Educators v Local Citizens)

8. Why did The Number Decline? Primary District/Secondary Districts Union Schools – Formed by Two or More Graded Schools 1917 Rural Agricultural School Act 1944 Michigan Public Education Study Commission –Suggested minimum Enrollment –Recommended a Reorganization Commission be Named in Each County –Legislature Took No Action School District Reorganization Act of 1964 Each of 60 ISD’s Submit Reorganization Plan Every District Would be Part of K-12 District State Committees Districts With Changing Boundaries Could Vote

9. How did the Reduction Occur? Consolidation Annexation Dissolution

10. Barriers to Further Reductions Consolidation Requires Vote of Both Districts Annexation Requires Vote of Annexed District Local Control No Monetary Incentives

11. What might vary with # of Districts?

12. Predict what might happen to: Student achievement % of overhead Local sense of ownership/engagement/pride Drop out rates Number/variety of course offerings Fund balances/fiscal stability

13. What does data say: Are there “Economies of Scale?” One definition of “Economies of Scale” suggests that larger districts can minimize non- instructional expenses relative to those directly involved in teaching and learning. The next slide shows how we divided Current Operating Expenses into those which should be maximized and those an “economy of scale” would hope to minimize.

14. InstructionSupport Basic Classroom Added (includes Special Ed) Adult Ed Instructional Support (includes counselors, therapists, librarians etc) Bus/Administration Op/Maintenance Transportation Current Operating Expenses Community Service Capital Outlay General Fund School Finances: An Overview

15. Michigan Districts Sorted by Size TraditionalPSAs (04-05) Metro DPS (152,199 students) Top Quartile Utica (29,106) to Lakeview (2,383) n = 137 Second Quartile Hastings (3,281) to Swan Valley (1,714) n = 138 Detroit Academy of Arts and Sciences (2246) n = 1 Third Quartile Mason County (1,705) to Unionville (901) n=138 Academy of Oak Park (1470) to Star International (976) n= 7 Bottom Quartile Eau Claire (897) to Bois Blanc Pines (2) n=138 Plymouth Ed Center (887) to Outlook Academy (15) n = 182

16. Instruction (including support) as % of COE for Each Quartile TraditionalPSAs Metro67.1% Avg Top Quartile72.4% Highest: xxx% Lowest: xxx Second Quartile71.7% Highest: xxx% Lowest: xxx 56.2% Third Quartile71.2% Highest: xxx% Lowest: xxx 49.4% (55.8% w/out 2 CSAS schools at 37%) Bottom Quartile69.1% Highest: xxx% Lowest: xxx 55.2%

17. Does data suggest other definitions of “Economies of Scale”? We examined the most recent consolidation (Wakefield – Marenisco) Wakefield Marenisco Combined2003-2004 2003-04 2003-04 2003-04 Percent Instruction1,711,611 688,045 2,399,656 70 Non-instruction 596,290 427,939 1,024,229 30 Total2,307,901 1,115,984 3,423,885

18. And after consolidation? Wakefield-Maranesco2004-200 Cost 2004-2005Percent Reduction Instruction2,004,261 71 395,395 Non-instruction 836,699 29 187,560 Total2,840,930 582,955

19. And how about student achievement? Does district size matter? We sorted first by SEV into wealth quartiles (to equalize comparisons) Then we arranged each quartile by SIZE Within each quartile, we separated PSAs (their finances are so different) We compared % Instruction and MEAP scores in clusters of 18-20 schools

20. TraditionalPSAs (04-05) Metro DPS (152,199 students) Wealthiest Quartile Utica (29,106) to Lakeview (2,383) n = 137 Second Wealthiest Quartile Hastings (3,281) to Swan Valley (1,714) n = 138 Detroit Academy of Arts and Sciences (2246) n = 1 Third Quartile Mason County (1,705) to Unionville (901) n=138 Academy of Oak Park (1470) to Star International (976) n= 7 Bottom Quartile Eau Claire (897) to Bois Blanc Pines (2) n=138 Plymouth Ed Center (887) to Outlook Academy (15) n = 182 Districts Sorted by Wealth

22. Consolidation of Michigan Schools – Results from the 2002 State of the State Survey Lisa Ray, Research Analyst David N. Plank, Co-Director The Education Policy Center at MSU

23. Do You Favor Consolidation of School Districts in Michigan? 1.No Children – 53%, Children – 45%, Children in Public Schools – 41% 2. B or better – 47%, C or better – 53% 3. Rural – 42%, Small Town – 55%, Suburban – 51%, Urban – 49% 4. Caucasian – 49%, African American – 53% 5.Athletics Important – 51%, Athletics Not Important – 45% 47%

25. A Closer Look At Those Who Initially Favored Consolidation What if consolidation: A)would bring a greater mix of students into the school district? B) meant that local citizens would have less say into how the consolidated district is run? C) would lead to school closings? 42.6% 18.0% 18.6%

26. A Closer Look At Those Who Initially Opposed Consolidation What if consolidation: A)would lead to more specialized programs for students? B) would reduce administrative costs? C) would not lead to school closings? 66.3% 60.3% 55.2%

27. Best Way for Local School Districts to Reduce Costs and Spending? A.Consolidation B. Contracting for services C. Increasing class sizes D. Reducing the curriculum E. Sharing resources with other school districts

28. Policy Implications 1.Michigan residents are not as strongly opposed to consolidation as popular wisdom might suggest. 2.Support or opposition depends on the perceived consequences of consolidation. 3.Compared to other cost-reduction options, Michigan residents clearly prefer to have their district share resources with other districts,.

29. What does governance experience suggest? Let’s ask School Boards Anthony Derezinski Director of Governmental Relations Michigan Association of School Boards