Fiscal Intelligence

Fiscal analysis that enables educators, small business owners, and community organizers to make informed decisions.

Month: April, 2013

Education Infographic.

Are Colleges in the Northeast Prepared for the New Demographic Reality?

The national picture described above is not great, but it masks important regional trends. In the South, the most populous region in the country, the number of high school graduates in 2027-2028 is projected to be 8 percent larger than it was in 2008-2009. This situation is much more dire for the Northeast, which the report defines as Connecticut, Pennsylvania, Maine, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont. In this region, the number of high-school graduates is expected to decline by 10 percent between 2009 and 2028. This means approximately 65,000 fewer students will be coming through the educational pipeline and moving into higher education, equating to a decline of 77 students per postsecondary institution in the region. (There are 869 postsecondary institutions in the Northeast.) Many higher-education institutions are bound to lose enrollments unless more significant attention is paid to nontraditional students or recruiting students from outside of the region.

Are Colleges in the Northeast Prepared for the New Demographic Reality?.

City of Yonkers

Enrollment for the dependent Yonkers school district increased by almost 6 percent from fiscal year 2009 to fiscal year 2012, while overall state public school enrollment declined by 0.8 percent. This enrollment increase has added to the pressures on the City’s budget. Assuming the budget gap is filled in part by utilizing fund balance, the City could quickly exhaust its balance. The City is considering possible gap closing measures including increases in the City income tax, property tax and real estate transfer tax, as well as increases in the contribution rates of employee health plans and limiting growth in the school district’s operating costs. The City is also advocating for the reassessment of all properties in Westchester County in the hope that this will save money by reducing the number of tax certiorari claims.

<div style=”margin-bottom:5px”> <strong> <a href=”http://www.slideshare.net/LuisTaverasMBAMS/city-of-yonkers&#8221; title=”City of Yonkers ” target=”_blank”>City of Yonkers </a> </strong> from <strong><a href=”http://www.slideshare.net/LuisTaverasMBAMS&#8221; target=”_blank”>Luis Taveras MBA, MS</a></strong> </div>

The state spends approximately 21% of its budget on K-12 education, or $32.5 billion in FY 2011, with the highest per-pupil spending in the nation as of 2009. The state has become more reliant on federal and local funding for schools in recent years; however, this strategy will be difficult to continue as federal stimulus funds dry up in 2012. To make matters worse, local communities may struggle to fully fund their school districts due to a recently passed cap on property tax increases in the state. Meanwhile, in the classroom, New York students receive lackluster marks on national standardized tests. Disparities in achievement between the state’s urban and suburban areas are especially acute, and within urban areas (particularly New York City) there are achievement gaps between socio-economic communities. The state has a strong and growing charter school movement that aims to address these inequalities, but problems remain.

<div style=”margin-bottom:5px”> <strong> <a href=”http://www.slideshare.net/LuisTaverasMBAMS/ny-annual-report2012&#8243; title=”Ny annual report_2012″ target=”_blank”>Ny annual report_2012</a> </strong> from <strong><a href=”http://www.slideshare.net/LuisTaverasMBAMS&#8221; target=”_blank”>Luis Taveras MBA, MS</a></strong> </div>

A “Comeback” in Name Only by Bill Watkins – City Journal

According to the U.S. Census Supplemental Poverty Measure, California’s poverty rate is the nation’s highest. And though the state accounts for about 12 percent of the nation’s population, it hosts more than 32 percent of its welfare recipients2,987,433 people have left California—more than the combined populations of San Diego, San Jose, and San Francisco. The 2010 Census shows that California’s population increased by 3,382,308 between 2000 and 2010, thanks to births and immigration.

A “Comeback” in Name Only by Bill Watkins – City Journal.

Bankrolling Failure by Larry Sand, City Journal Winter 2013

In California, education spending has doubled over the last 40 years. The state’s teachers are the fourth-highest-paid in the country, with an average salary of $67,871, not counting their generous pensions. What do we have to show for it? On the most recent NAEP, California’s fourth-graders ranked 45th in the nation in mathematics; in science, they ranked second to last, topping only Mississippi. Over the same 40-year span, California’s average SAT scores have dropped about 5 percent.

 

Bankrolling Failure by Larry Sand, City Journal Winter 2013.

Deadbeat City by Steven Greenhut – City Journal

Deadbeat City by Steven Greenhut – City Journal.

“THE ROLE OF DEBT IN THE SCHOOL DISTRICTS’ INSOLVENCY PUZZLE”

Dear Friends,

I have just completed an analysis of the outstanding debt of the school districts in the State of New York.  Drastic changes in debt level as shown by the case below inspired me to write this piece.  This is very concerning because it is taking place in an environment with declining enrollment. I hope you enjoy it.

% Change 2004/2011

MUNICIPAL NAME COUNTY

ENROLLMENT

DEBT

Kiryas Joel Village Union Free School District Orange

-40.00%

43061.85%

Sincerely,

Luis Taveras

CEO& Founder

Optimization with an impact

According to the financial plan released by the City of New York in January 2013, the forecasted revenue from the sale of the Taxi Medallions has been reduced from $790 million to $600 million in FY’2014. This means that the city has shifted the collection of the revenue to FY’15 ($50 million) and FY’16 ($140 million.) The unpredictability of this crucial revenue is creating a fiscal conundrum for the City of New York and this is exactly where the risk lies. If you would like to have a better understanding about this problem, you need to read the analysis published by Optimization with an Impact titled “The Taxi Medallions Dilemma”.

The Pension Fund That Ate California by Steven Malanga, City Journal Winter 2013

The Pension Fund That Ate California by Steven Malanga, City Journal Winter 2013.