StanCollender'sCapitalGainsandGames Washington, Wall Street and Everything in Between



Update On Waste, Fraud, And Abuse: Kansas City To Close Half Its Schools

12 Mar 2010
Posted by Stan Collender

My column from yesterday's The Fiscal Times noted that state and local governments around the country, which because of balanced budget requirements and dramatically falling revenues are facing some very tough times, are being forced to make difficult decisions.

But this story in yesterday's The New York Times about Kansas City deciding to close half its public schools and reduce the payroll by around 20 percent makes the decisions by other states to close rest stops along some highways appear to be insignificant.

The Times' story indicates that the schools and school board in Kansas City have been in terrible shape for years and, therefore, that this decision was almost inevitable.  Still, the precipitating event was was the projected $50 million deficit (out of a total budget of $300 million) in the midst of the economic downturn and the prospect that it wasn't going to get any better any time soon.

Given that the number of students in the KC schools had fallen by 50 percent, closing half the schools might in some sense qualify as eliminating waste, and the failure of the school board to act before now might be considered fraud and abuse. 

Still, closing half of all schools at the same time shows either that the definition of waste, fraud, and abuse might need to be expanded, or that the budget changes that are already happening and will keep occurring for a while are going to go way beyond what that phrase traditionally has implied.

Cleveland is in the Same Boat

Cleveland schools are in exactly the same situation. From the Plain Dealer, March 9:

"[The school transformation plan] lays out building-by-building strategies, including closing or moving 16 schools. The district will shutter 14 elementary schools and two high schools -- more than 10 percent of its facilities -- after classes end in June.

"...

"Officials have to identify new schools for more than 5,000 children and determine whether they qualify for bus service. The district also has to arrange transfers for 400 to 500 teachers from closed schools.

"...

"All of this comes as the district tries to raise $72 million to fund the initiatives, cuts $53 million in spending and studies the possibility of layoffs."

http://blog.cleveland.com/metro/2010/03/cleveland_school_board_approve.html


School Costs

Arnold Kling over at econlog has a very interesting new post about administrative costs in public schools, and the claim that such expenses are often hidden from public scrutiny.

http://econlog.econlib.org/archives/2010/03/your_public_edu.html





Recent comments


Advertising


Order from Amazon


Copyright

Creative Commons LicenseThe content of CapitalGainsandGames.com is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 United States License. Need permissions beyond the scope of this license? Please submit a request here.