In an open letter, Shelly Swayne, Stockton High School principal (USD 271) voiced concerns about a plan under consideration by the Kansas Legislature to consolidate school districts statewide. The letter follows.

By Shelly Swayne
Stockton High School Principal

Dear Kansas Legislators and Kansas Education Committee Members:

The HB 2504 has been presented in an effort to save our state money in education. The purpose of the bill is to cut costs to school districts who do not have an enrollment of 1500 students, and who are not already in a county- wide district. The concept of state mandated consolidation or in this case, administrative cutbacks without local support are difficult to say the least for those of us in the heart of Kansas.

There are two types of facts and figures I want to address with you; tangible and intangible pieces of the puzzle. The tangible facts are those that are concrete, they are able to be calculated not just estimated. The intangible facts are indeed those that we are not able to figure, but rather they are estimated facts; even those that are our greatest fears.

The tangible fact I want to address with you is that of KPERS. The reduction of districts as proposed will have a very real and large career impact on the current administrators, teachers and staff in those nearly 200 districts that will be affected across our state. I fear that the 100-300 jobs that are lost across our state public schools will literally bankrupt our KPERS system. Here is my logic:

For easy figuring, let’s say that HB2504 eliminates 150 jobs across the state, most of which will be certified professional superintendents, principals and some teachers. Most of those folks are going to be Tier2 contributors to KPERS, which means by law they contribute 6% of their monthly gross paycheck to the system of retirement. If the average professional salary of those eliminated positions is $60,000 yearly, then KPERS will lose employee investment to the tune of $540,000. The state contribution to KPERS employees used to be matching, but over the course of the past decade has been cut to about half the employee piece. This means KPERS will lose another 3% of salaries eliminated, $270,000; equaling a relatively concrete figure of $810,000 annually. Beyond the lost investment piece of this KPERS puzzle is the fact that some of those eliminated positions will be able to put their mandatory 85 rule together, and retire. The pressure on KPERS would then be required to pay 80% of their highest annual salary (HAS) forever. In an already state underfunded and tattered public retirement system, I fear this HB2504 will literally bankrupt our state.

I’d like to tell you that most of the eliminated positions will be able to find new education jobs to reinvest in our system, but they won’t. The public education system across our state has been raided, cut, eliminated, and otherwise pared down to a point where none of our districts can afford to hire anyone from anywhere. If the educators and leaders find new positions it will likely be out of state, where they may indeed transfer their balance of already invested money in the KPERS system into their new state’s employees retirement system; eliminating a significant cash balance investment from KPERS. It’s also very likely that these educators may choose to find whatever job they can manage, probably not much in NWKS. In any case however, they might very well pull their balance out of KPERS to invest in a portfolio that makes much more sense with higher possible dividends. KPERS is a nice foundation, but it is not a great payout multiplier at 1.85% when many portfolios can offer a much greater return to investment.

These are concrete numbers, tangible facts. They are not possibilities, they are probabilities! KPERS will not be able to withstand such a elimination of investors in a system that has not been paid into at the required rate by the state in more than 2 decades. Furthermore, this is not just about educators, this will have a great impact on all KPERS employees. Our commissioners, KDOT workers, city workers, KS highway patrol, state prison workers, social workers, and so many others that have paid into our system, or whom are currently collecting dividends in that system.

Beyond the concrete I would address just two intangible facts, the ones we cannot see, we can only anticipate, neither of which is a positive impact on Kansas. First, I want to address the loss of investment in Kansas. The Brownback administration and our legislators, many of you, have been adamantly committed to building small business growth and Kansas business growth in our state.

The tax breaks that are afforded these business owners to grow that component of our state economy is admirable. Although I have some arguments about it, I respect the decisions made to bolster a struggling state. The commitment to this growth that has been made in Topeka will be severely impacted by the disappearance of these districts statewide. Every district in Kansas does local business daily, my district in the small community of Stockton does approximately $8,000 of local business monthly, and I believe without a doubt that every district makes the most out of every business in every small town that may have school and district doors closing. These small businesses will lose significant dollars and could very well undo all that Topeka has fought hard to create.

In one fail swoop, districts will disappear and within six months so might businesses everywhere. Although I cannot calculate these figures specifically, I can guarantee the impact will be of critical costs.

As if the school district business loss would not be enough, the 100-300 people connected to the jobs lost will also take small business purchases and shoppers elsewhere. Depending on the size of town, district and loss of work, I would estimate that up to 30% of all small town business will be lost in the affected counties. 30% estimated loss would look like more Kansas jobs lost and some, if not many, small business closures.

Finally I want to talk about an intangible element that many in Topeka do not seem to want to address, our kids. I get very passionate about our kids. Kansas, many years ago, committed to our population that all Kansans are entitled by statute to a free, fully funded, public education by our state and local governments. That education is our foundation. There is no one in any job across our state that has not been impacted by education. No one. You as legislators sit in that position because the state of Kansas provided for you the opportunity to learn and teachers that touched your lives. Whether you were educated in public school or for some of you private, a teacher and a leader at your school inspired you, they led you, they challenged you, they cared for you; I’d bet money on it! Our kids still deserve that commitment from our legislators in the 21st century. Our kids in all of Kansas, whether they live in a town of 80,000, 800, or 8; they deserve the education that this state has always been required to provide, and they deserve to have it without a bunch of us fighting over the politics of it all, or traveling 40-60 miles to get it. It’s expensive to educate children at a high rate. It always has been, this is not new. If we do not create some revenue rather than tragically cut our state’s schools more, our children will believe that we do not find them important, that they are not valued. I refuse to believe that, and I refuse to allow them to hear that from you.

In the end, HB2504 comes down to commitment to our state’s values. Do we value more the opportunity to cut administrative and teaching jobs in our locally controlled schools, or do we value a balanced approach that does not tear the fabric of our state apart? Do we want to value the hard work already done that has been committed to building business up in Kansas, or do we want to be committed to dismantling all that has already been built? Do we value our kids across the state, the same way legislators valued you in your school days, or do we believe they are not worth the commitment?

I know that you want to solve the state’s budget issues, I have no doubt about that. I also believe you want our education system to create young Kansas citizens that can provide leadership in the careers that they choose, hopefully right here in Kansas. I believe that you want teachers and leaders in our schools to do great things and I hope you want us to feel valued in our work. I believe undoubtedly that you want to build Kansas business as these educational values are instilled daily. HB2504 is not that course. Kansas is a great place to be, please don’t make it a great place to be “from”.

Information obtained via www.kpers.org, state funding www.ksde.com, and USD 271 monthly budget reports.