The News Guy is going to (sort of) violate his usual policy today to (sort of) take a position on a bill before the Legislature.

As regular readers know, what the computer nerds call the default position of this site is to inform and to analyze, not to advocate or oppose. There is no shortage of advocates and opponents, hence no need to add to their number.

Besides, to the reporter, casting the same jaundiced eye on advocates and opponents is what comes naturally; joining either side does not.

Worse, in this case, the joining, however conditional, leaves the News Guy vulnerable to accusations of acting out of self-interest. The accusation would not entirely without foundation. The case about to be made here is being made out of the conviction that it is in the interest of the general public. But there is no doubt that it is in the interest of the news business and its practitioners, all of whom have a vested interest in public information being…well, public. That’s why some of them – including the publisher of the Rutland Herald and Barre/Montpelier Times Argus and the editorial page of the Burlington Free-Press — have come out in opposition to H 331, which is likely to get final approval from the Vermont House of Representatives Tuesday.

This post is going to stop just short of outright opposition. The bill, which would allow big-money contributions to the State College system and the University of Vermont to remain anonymous, is complex. It purports to have protections against the most likely abuses. Corporations would not be allowed make anonymous donations, not would individuals doing business with the colleges or UVM.

But just who would decide whether a donor was doing such business seems absent from the legislation, as does how and through what agency the donation would be either returned or revealed.

It is probably true that the colleges and UVM would raise a little less money if all donations of $10,000 or more were a matter of public record. Believe it or not, some folks don’t want their generosity known. A Free Press article last month quoted UVM spokesman Enrique Corredera explaining, “some do so out of humility. Some wish to avoid unwanted solicitation for donations. And, increasingly, donors wish to maintain anonymity to protect the privacy and personal safety of themselves and their families.”

Well, no doubt all that happens. But you know what else happens? A lot more than any of that other stuff?

People hide what they’re doing because they have something to hide. They keep their names from the public because they don’t want the public to know what they are doing. And they don’t want the public to know what they’re doing because they think the public will disapprove. The public might think that the big-money donors are being at least as selfish as generous; that they have an angle; that some of those gifts come with a price.

The public will so think because it is true, often enough if not usually. Any time rich and powerful people (although the rule may also apply to poor and weak people) are allowed to act in secret, some of them will act in their own interest, not the public’s.

Before the lawmakers vote Tuesday, they might take a look at the impacts of anonymous donations at the University of Oregon and the University of Louisville.

……..

The Oregon story is easily available at the News Guy’s occasional collaborator, the news web site VT digger, in a story by Donald M. Kreis about the new $200 million basketball arena and nearby 40,000-square-foot tutoring center for athletes on the campus in Eugene.

There’s no anonymity about the Knight Arena, named for Phil Knight, the head of the Nike shoe empire, and a big contributor to the university. But University officials are not revealing the cost of the other building, the Jaqua Academic Center for Student Athletes, or who is financing it.

“When donors call the shots…outside the normal requirements of public scrutiny, Kreis warned, athletic boosterism can too often become (a university’s) driving strategic priority.”
The University of Louisville is the alma mater of Sen. Mitch McConnell, the Kentucky Republican who is the Senate Minority Leader, and is now home to the McConnell Center for Political Leadership.

Among the Center’s contributors, whose names were kept secret at first, was at least one company that benefitted from “earmarks” McConnell shepherded through Congress, and others with close ties to the senator. As revealed by the web site of Citizens for Responsibility and Ethics in Washington, When the Louisville Courier-Journal sued to get the names of the donors, the Kentucky Supreme Court allowed the University to maintain the anonymity of those who had already contributed, but not of future donors, who, the court noted “may not simply wish to conceal their identities, but rather may wish to conceal the true purposes of their donation.”

Because the secrecy of corporate donations would not be protected by the Vermont bill, the situations are hardly identical. But that doesn’t mean there won’t be those who “wish to conceal the true purposes of their donation.”

It isn’t even necessary to do business with a university to corrupt it. Consider the possibility that the wealthy head of a pharmaceutical or biomedical company makes a secret donation to UVM to finance a health research center. Having put up the money, he has some say in who runs and staffs the center. The director and the researchers will know who buttered their bread, even if the public does not.

What this health care mogul might have bought himself is a study that concludes that the new product his company is about to take to market is a safe and efficacious cure for fallen arches, lower back pain and unrequited love, when a panel of unbiased doctors might have found it as helpful as soda pop. Neither the donor nor his company would have done a shred of business with the University.

Whoever doubts such a thing can happen is invited to Google “medical research fraud,” and prepare for several hours of fascinating reading. And health research is one of the “spires of excellence” on which UVM is planning to concentrate as it rearranges itself for the future.

Members of the House ought take these dangers into consideration. And they ought not comfort themselves by the assurance nothing like that can happen here.

Absent public access and open records, it can happen anywhere

The most important things that happened on Town Meeting Day were the things that did not happen.

Actually, not much happened. With the exception of that vote about how Burlington votes (tune in Monday for an examination of the Burlington brouhahas), the voters of Vermont last week endorsed: (1) The status quo; (2) the love of money (part of the status quo); and (3) their public schools, even if those schools cost some of that money they love.

So Mayor Mary Hooper of Montpelier presided over an administration that got bilked out of 400 grand. She gets re-elected anyway. So Coventry Town Clerk Cynthia Diaz has been charged with income tax evasion. Leave that to the feds, said the voters of Coventry, re-electing Diaz by a 3-1 margin.

Roughly the same margin by which voters in neighboring Lowell endorsed a wind power project in their town, either because they are committed to renewable energy or because the wind company will lower their tax bills, or both.

But peanuts compared with the almost 5-1 margin by which voters in Island Pond approved of selling the state airport in town to make way for a pellet plant that could provide more than 30 jobs. Both the Lowell and the Island pond votes are advisory, and do not officially decide either issue.

But the main thing that did not happen was a “taxpayers revolt” against school spending. Au contraire, as they say just north of here, despite the Great Recession, despite objections from no less than Gov. Jim Douglas that the current school financing system was “broken” and “twisted,” despite the tax commissioner’s official advice to raise the property tax rate and warnings that more tax hikes are in store, the voters overwhelmingly supported the school budgets.

According to the Wednesday afternoon count by the Vermont Superintendents Association, 228 budgets were approved as submitted, four passed after reductions from the town meeting floor, three were  postponed, and only 14 were defeated.

It was the smallest number of rejections since 2004.

Furthermore, most of the approvals were by large margins, while several of the rejections were by razor-thin majorities.

Always beware of over-interpretation. The results do not mean that voters are indifferent to their tax bills, or to the cost of public education. One reason the budgets were approved was that they didn’t go up much, if at all. Though final figures are not in, Brad James, the Education Finance Manager for the Education Department said that, “as of 23-Feb, we had received 261 proposed budgets out of roughly 280.” Based on those districts, James said, “overall budget increase for the State was up (one half of one percent).”

Furthermore, said James (via email), “education spending, which is the lion’s share of the Education Fund and is the figure that drives tax rates for individual districts, is down (by one tenth of one percent).”

In other words, all those warnings from Douglas, Education Commissioner Armando Vilaseca, and others had an impact. So did the Recession. As a result, said John Nelson of the State School Boards Association, local boards made a major effort “to keep budgets in line.”

Board members knew that “people in their communities weren’t getting raises and were being laid off,” Nelson said, so understood that spending would have to be restrained “ if they were going to get support for budgets.”

But also beware under-interpretation. The budget votes prove that the current school finance system is not “broken.” It is not perfect. But no school finance system is, not in any state. Vermont’s present system – Act 60 of 1997 as amended by Act 68 in 2003 – works. The schools function. They are, according to the (possibly flawed) standards by which Americans judge their schools, rather good.

They are also rather expensive. But obviously they are not too expensive. According to whom? According to the people who pay for them. If those people thought the schools were too expensive, many more budgets would have been rejected.

In a sense, the effectiveness of the criticism from Douglas et al only prove that the system works. Those criticisms are part of the system. The complaints of politicians (including their hyperbole) are part of any school finance system. Rhetoric, however overblown, neither can nor should be eliminated from any public policy process.

Less certain, but potentially more significant is the possibility that this year’s hold-the-line school budgets signal the start of a long-term spending moderation resulting from declining enrollment.

For years, one theme of the school spending critics has been that costs kept going up, and the number of teachers and teachers aides kept rising, even as the number of pupils fell by more than 10 percent in the last decade or so.

On the surface, not an unreasonable objection. Below the surface, matters get more complicated. A kindergarten-through-sixth grade school with 100 students, evenly distributed among its seven grades, has about 14 kids per class. If a few years later it has only 90 students, still evenly distributed, it can’t get rid of a teacher by combining classes unless educators (and parents) are willing to accept 24-pupil classes, which most educators consider much too big, especially in the lower grades.

So cutting staff in response to falling enrollment – without sacrificing quality – takes time. As Jeff Francis of the Superintendent’s Association said, “you don’t ever decrease capacity at the same rate that you increase it.”

But as enrollment continues to decline, more schools may be seeing an opportunity to reduce staff. There has been a small decline in the number of teachers over the last few years. A few very small schools have closed their doors entirely. There is more talk, encouraged by Commissioner Vilaseca,  of consolidation of schools, districts, and supervisory unions, highlighted on Town Meeting Day by the decision to merge four Addison County districts into one.

All small steps, and perhaps reversible. Brad James at the Education Department said he thought the poor economy “moved ahead the time when some boards planned on reducing staff due to declining enrollments,” while acknowledging that this was “merely a supposition.”

But John Nelson of the School Boards Association said he thought the falling school population was “beginning to kick in,” and that this year’s budget “reflected that there is a response from the school boards.”

Even the teachers union – the Vermont-NEA – acknowledged that there might be fewer teachers in the state’s schools a few years from now. Darren Allen, the union’s spokesman, said that while obviously the NEA did not want to lose members, “if there aren’t the kids to teach, then there aren’t the kids to teach.”

It would take at least another year or two of little or no school spending increases to determine whether this year’s moderation was a fluke,\ or the start of a long-term trend. But if it is not a fluke, it is a political tectonic plate shift. Public schools are the state’s biggest expense. The steady increase in school spending has been a contentious issue both in the Legislature and for local school boards. If that increase really abates as long as school enrollment drops (which won’t be forever), pressure on officials and policy-makers would substantially ease.

Not that schools won’t continue to be a political issue. They will still spend a lot of money. Some of the cuts the boards have made arguably lower the quality of education, so when the economy improves, educators may well seek more funds, perhaps arousing opposition. And some Vermonters don’t like Act 60 because it does what it was designed to do – make school taxes and (to a lesser extent) school spending, more equitable among richer and poorer districts.

For at least another year, though, the politicians who try to argue that Vermont’s public education sky is falling don’t have much of an argument. This week, the sky stayed right up there where it belongs.

BAGS

To illustrate how difficult it is likely to be to reduce the cost of public education in Vermont without also reducing the quality of same, please allow a local example or two.

These postings come to you from Barton, up in the Northeast Kingdom, where 153 children attend the Barton Academy and Grade School, not surprisingly referred to as BAGS by some, a standard kindergarten-through-eighth grade school.

For years, the school employed a professional, highly regarded school librarian, and the pupils had regular access to the library, where they could look up information, browse the shelves, get help selecting a book.

At the end of the last school year, she retired. To save money, the school decided not to replace her, at least for this year. Instead, the head of the computer room would do double duty at the library. By all accounts, she’s doing a great job. She’s capable, energetic, dedicated.

But she’s not a librarian. And because she has other duties, the pupils don’t have quite as much access to or guidance in the library as they did last year, and for many years before.

The decision not to replace the librarian was reasonable. That’s one less FTE (full-time equivalent) employee whose salary and benefits have to be financed by the taxpayers. In a tight economy, with school officials reluctant (as they should be) to raise taxes, leaving that position vacant is, at least debatably, the right choice.

But here is what is not debatable: A school with a fully functioning library presided over by a professional librarian is better than a school without them. It isn’t that BAGS isn’t a good school. Principal George Vanna said the library is “not boarded up” and is open almost as much as it was last year. The younger pupils still get their story hours. But Vanna also acknowledged that he’d rather have a librarian, even if only a part-timer. Maybe next year, he said.

In other words, saving money reduced educational quality. Perhaps not by much. Perhaps saving the money justified the reduction. But reduction it was.

As it almost was up the road at Lake Region High School, where the board decided to save money by cutting both the music program and the Spanish language program from full-time to half-time.

Again, a decision quite reasonable under the circumstances. But – again – a school with full-time music and Spanish instruction is better than a school with half-time music and Spanish instruction. Better enough to be worth the $68,000 needed to keep both programs fully functioning? Who knows? Either way, Lake Region would be a slightly worse school after the cuts (which were partially rescinded earlier this week after a public outcry; the board will try to keep both programs full-time).

The point here is not to express opposition to any of these cutbacks. In fact, it’s hard to see how anyone who served on a school board wouldn’t at least seriously consider approving those cost-saving steps. Whether those programs were worth the money is a legitimate question. But there is no question at all that they were worth something. So eliminating, reducing, or diluting them eliminates, reduces, or dilutes…something, a something which has value.

A lesson worth remembering as Vermont thinks about holding down school spending. In addition to Gov. Jim Douglas’s renewed call to “freeze” school budgets (not much more likely to be heeded than last year), Education Commissioner Armando Vilaseca is campaigning to reduce the number of supervisory unions and school districts, and even lots of Democrats speak openly about urging schools to consolidate. In Montpelier, at least, the established point of view seems to be that, in the current Washington health care jargon, something has to be done to “bend the curve” on school spending.

Making it all the more important to be wary of the commonly-heard claim by partisans on all sides that it is possible to cut costs without cutting quality. In theory, it may be. In practice, as the above examples demonstrate, it’s somewhere between hard and impossible.

Besides, some of the cost-cutting steps might not cut costs all that much. Vilaseca recently wrote of his supervisory union consolidation plan that, “my staff and I estimate this would save the state several million dollars a year.”

Kind of vague. Asked for elaboration, Education Department spokesperson Jill Remick supplied a Department study indicating that consolidation in Essex could save more than $600,000, or almost 25 percent, in personnel costs.

To put all this in some perspective, former Rutland Northeast Supervisory Union Superintendent Bill Mathis, who is skeptical about most of the cost-cutting proposals, pointed out (and Education Department statistics confirmed) that only 2.4 percent of the roughly $1.3 billion Vermont spends on public education (not including federal aid) goes to these central administration expenses.

“Let’s say we combined and saved one third of the money,” he said. “That’s less than one percent.”

Not a compelling case against consolidation. Less than one percent of $1.3 billion can be several million bucks. But Mathis’s larger point has merit. Almost everyone agrees that the big driver of school costs is the number of paid employees in and around the classroom, not the central offices. For several reasons (which will be examined in subsequent posts) Vermont has a lot them – teachers, teaching aides, counselors, librarians, technologists. The quickest way – if not the only way – to “bend the curve” of school spending is to have fewer of these educators.

Raising the threat of worse schools. A little-mentioned factor in this discussion is the real question of whether that “established point of view” in Montpelier is all that established among the electorate. Last year there was no “taxpayers revolt” against school spending at town and school meetings, as relatively few school budgets were rejected. With the lingering recession, it would be no surprise if more were defeated this year even though, in response to falling enrollments, schools around the state are cutting back.

Nobody likes high property taxes, but those were not a bunch of raging liberals who pressured the Lake Region School Board (raging liberals are not plentiful in this precinct) to put back the money for Spanish and music classes. A few made clear that if it took higher taxes to preserve today’s level of educational quality, then taxes should be higher.

Quite possible a minority outlook. But nobody’s really taken a poll on the matter, and there was the comment not long ago by one man whose politics are relatively centrist and who has no children in the public schools. When someone pointed out that Vermont spends a lot of money on education, he asked, “where else should we spend a lot of money?”,