Systemic Changes Can’t Be Made At Budget Time

I’ve been involved in a lot of budget conversations lately, which I’m sure comes as no surprise. What keeps running through my mind is that the entire system needs an overhaul, but it can’t be done at budget time. Not only do most people show up with their opinions too late in the game to make a difference in the local budget, but the systemic changes needed to create more efficiency will take years and statewide – if not national – change.

In one of the many conversations I’ve had, the topic of the “failed” Department of Education came up. The U.S.’s poor educational ranking among other nations seemed a concern, so I looked up the Netherlands, which tops international rankings. Want to know how they fund schools? Here’s what I learned:

“In January 2023, the funding of primary education has been simplified. Schools now receive one sum per pupil and per school. How much funding a school receives depends on the number of students attending that school on February 1st of the previous year. The budget for primary education is approximately EUR 14 billion.

The Inspectorate of Edcuation monitors how schools spend their financing.The financial management of a school board is examined in more detail by the Inspectorate during the four-yearly inspection. The financial supervision focuses on the following questions:

- Is the financial position sufficient to continue to provide good education? (continuity of education) - Do institutions receive the educational resources to which they are entitled and do they spend those resources on the right things? (the lawfulness of the acquisition and expenditure of educational resources)

- Is the expenditure sufficiently targeted and cost-conscious? (the efficiency of the expenditure).”

This centralized funding makes a lot of sense. We all know that schools are not funded equally, so dispensing funds based on the number of students goes a long way to ensuring every student gets the same, high-quality education. Of course, we do the exact opposite in the U.S. We fund schools based on local property taxes, meaning poorer communities get poorer schools. While it’s hard to imagine a country the size of the U.S. managing this, it could certainly be done at a state level. 

I often find myself wondering how our neighbors to the north, Massachusetts, manage to continually top the list of best schools in the U.S. while having lower property taxes than Connecticut. As it turns out, the state has adopted a watered-down version of the Dutch way via the Chapter 70 program:

“Chapter 70 education aid is the Commonwealth’s primary program for distributing its portion of K-12 public education funding to the state’s 328 local and regional school districts. 1 The Chapter 70 formula aims to ensure that each school district has sufficient resources to provide an adequate education for all of its students, taking into account the ability of each local government to contribute. In short, the formula is designed to have an equalizing effect, with less wealthy districts receiving more state aid than wealthier ones.”

I’m sure we could find districts that would not agree that Chapter 70 works, but if we concern ourselves with rankings, then Massachusetts has cracked the code. But here’s the thing: it’s not just educational expenses that are ballooning. Healthcare costs are also an issue. Look at either side of the budget; you will see that healthcare costs are a significant driver of budget increases. 

Employers began providing health insurance to attract employees in the post-WWII era, and now it’s a huge burden. It’s also one that younger leaders are rejecting. At the same time that health insurance was being tied to employment here, in the U.K., the National Health System (NHS) was getting its start. Today, when compared to the U.K., the U.S. has a lower life expectancy, higher maternal mortality rates, and more significant outcome disparities based on a variety of factors like socioeconomics and ethnicity. And here’s the kicker: We pay more per capita for healthcare than the Brits. 

I’m the kind of person who likes to get to the root of the problem, not just treat the symptom. I’m also the kind of person who tries to understand how everything is tied to everything else. We have a systemic problem with how we fund essential services. The issues are a problem nationwide, but we sure do pay for them at a local level. The school district estimates that its self-funded health insurance plan costs are going up 17.9% - 19.9% this year. More than $6 million of the proposed budget is just for benefits. Imagine what would happen to that budget, and the town budget, if these two employers were not on the hook for providing health insurance. However, this larger issue can’t be solved simply by voting no at the next referendum. It’s a problem that will take creative solutions at much higher levels, and achieving that requires sustained pressure on elected officials at every level.

So, no matter how you vote on the budget, I hope you’ll attend the next Board of Finance meeting, the next Board of Education Budget Committee meeting and start getting involved at a state and national level. Write to or call Senator Jeff Gordon, Representative Kurt Vail, and Governor Ned Lamont to advocate for meaningful change. And reach out to Congressman Joe Courtney, Senator Chris Murphy, and Senator Dick Blumenthal to let them know it’s time to start exploring new, lasting changes that put students first and people before the profits of insurance companies.