MBAE's report, School Funding Reality: A Bargain Not Kept, documents the extent of a problem we all know exists -- explosive growth in the cost of school employee health insurance has crowded out funding for other portions of school budgets that directly impact students such as spending on books and other classroom materials as well as teacher training.
Despite the fact that the State has consistently lived up to the funding commitments established under the Education Reform Act of 1993, school districts all over the state are laying off teachers and cutting back on book purchases, teacher training, library services and athletics.
HERE'S WHY:
From fiscal year 2000 to fiscal year 2007, state education aid (known as Chapter 70) rose by $700 million per year; over that same period school spending on employee benefits rose by $1 billion per year.
In contrast, spending on classroom teachers, teacher professional development, and purchases of books, software, and other educational materials - areas of the budget that have the most impact significant impact on student learning - when adjusted for inflation has actually been falling since 2000. Spending on instructional materials fell by 11.3% per year from 2000 to 2007.
The report also found that spending between districts has not been made equal. The neediest districts are the farthest below the state spending goal and have the lowest growth in spending. At only 2.3% per year from 2007 to 2010, their per pupil spending growth was a full percentage point less than the wealthiest suburban districts (3.4%).
STEPS TO ADDRESS THIS CRITICAL ISSUE
MBAE is taking steps to identify and advance solutions on this critical issue. First, we have joined with other leading business groups, including Associated Industries of Massachusetts(AIM) and the Massachusetts Taxpayers Foundation, in a coalition that supports granting Massachusetts municipalities the ability to alter health care plan design without having to bargain each change with municipal unions, and to require by statute that all eligible local retirees enroll in Medicare as their primary source of health care coverage.
Also, MBAE is working on two more studies of the school finance issue. The next report will identify where opportunities can be found for school savings through cost efficiencies and consolidation. The final report will look at other states and districts school funding models to determine whether Massachusetts should consider a new approach to funding education.
Get the Full Report, Press Release, and Read Our Blog
blems in education. MBAE saw the potential for this documentary to engage employers in education reform and became one of the first business members of 
