James R. Machell, Ph.D., a University of Central Oklahoma professor, has published a 16 page "white paper" - "Right Sizing" Oklahoma Districts: Examining district size, enrollment, and superintendent compensation in Oklahoma School Districts. His "abstract" of the research paper reads "This paper includes data related to the number and size of school districts and superintendent salaries in the state of Oklahoma. It is intended to encourage dialogue among elected state leaders and citizens about the need to consider cost savings that could result in badly needed additional funding being directed to classrooms across the state through cost savings that could be realized through the reorganization of many of the small school districts across Oklahoma." Many traditional public school supporters interpret the intent of the paper and the abstract is to convince "elected state leaders and citizens" that major school consolidation would put $27 million back in Oklahoma public school classrooms. A re-write of the abstract with interpreted intent is as follows: This paper includes data related to the number and size of school districts and superintendent salaries in the state of Oklahoma - "There are too many school districts which are small (less than 3,500 students) and those district superintendent salaries are far too large." It is intended to encourage dialogue... - "It is intended to encourage school consolidation..." ... cost savings that could be realized through the (reorganization) - consolidation of many of the small (and medium sized) school districts across Oklahoma.
Before we analyze Dr. Machell's data, analysis, and recommendations, we must examine the probable origin of the non-biased white paper. One has to look no further than Senate Bill 920 which Senator *** authored during the 2018 regular session. Dr. Machell works for the University of Central Oklahoma (UCO) in Edmond, which is very near Senate District 22. Machell is also probably a constituent of Senator ****. SB 920 would have administratively consolidated all Oklahoma traditional public schools with less than 200 students. When it was disclosed that consolidating designated schools would save virtually no taxpayer dollars - the committees to which it was assigned quickly killed it. Many public school supporters believe that Senator **** is the driving force for the research paper published by Dr. Machell. The paper has certainly encouraged dialogue concerning school consolidation, but also advocates administratively consolidating schools with less than 1,000 students, before consolidating schools with less than 3,500 students. So, Dr. Machell has in effect - "doubled down" on the original "less than 200 students" consolidation plan. Dr. Machell claims that $27 million could be saved by "eliminating" superintendents, so we'll examine his data and subsequent analysis for accuracy.
While the data quoted and utilized by Dr. Machell is for the most part accurate, the true number of Oklahoma school districts seems to elude him - as 524, 588, and 607 are quoted in different sections of his research. The State Department of Education even lists 546 as the number of Oklahoma school districts. This datum point may be irrelevant though, as Dr. Machell is relatively sure there are 538 total superintendents - and what he believes is relevant to his study is consolidating superintendents. (note: Dr. Machell never uses the term "consolidate" in his paper. He prefers "reorganize", as it is less threatening. It's like saying - "This will be painless".
Dr. Machell finally concludes that by using his consolidation model, we could eliminate 300+ superintendents and pare the number down to a total of 200... and save $27 million. He finally disclaims that there are a number of reasons why his approach to (consolidating) superintendents may not work. These include the difficulty politically and practically in (consolidating) school districts. ... the details associated with the practical details of managing such a change is complicated and messy. State leaders have considered various approaches to school district (consolidation) and some officials have studied efforts in other states with little to show in terms of results. Some have found that school district (consolidation) actually does little to save money and increase efficiencies.
From an article by Emily Windler of KOSU in 2016, paraphrased: The states of Oklahoma and Louisiana have about the same number of students (664,200 and 665,478, respectively), while Oklahoma has 516 school districts (superintendents) and Louisiana has only 70 school districts (superintendents). Anyone would tend to believe that Oklahoma spends more on General Administration and Total Administration than Louisiana does, but the facts say something completely opposite this assumption. According to the 2014 U.S. Census data - Louisiana, with 70 school superintendents, spent $179,587,000 on General Administration and $586,168,000 in total Administrative Spending. Oklahoma, on the other hand, with over 500 school superintendents, spent $175,201,000 on General Administration and $465,532,000 in Total Administration Spending. (Superintendent salaries in both states are about the same).
One example of administrative consolidation which actually increased administrative costs is right next door in neighboring Arkansas. From 2003 to 2006, Arkansas reduced its school districts and superintendents from 367 to 246. For the 2007-2008 school year, instead of reducing administrative expenses, school administrative costs actually increased 10%! Cases like Arkansas' are repeated over and over again, like in West Virginia, South Carolina, etc...
In April of 2018, we analyzed the "virtual" consolidation of twelve traditional public schools in one rural county - to determine the administrative cost savings when the twelve superintendents were rolled into one county superintendent. The cost savings were proven to be minimal, and most likely none. Using one model of consolidation, administrative costs even increased after the twelve schools were virtually consolidated. We may now virtually consolidate state traditional public schools utilizing the "Machell" model of school consolidation (which he calls re-organization) to determine if the state can actually (virtually) save $27 million. We will analyze the data from four mid-size schools (more than 1,000 students, but less than 3,500) by utilizing Total Expenditures, Total Administrative Expenditures, and Total Superintendent Salaries. Only the totals for each category will be analyzed, since the data can be accessed in the Oklahoma Cost Accounting System. The Total Expenditures for all four schools during the 2016 fiscal year was $66,796,664. Total Administrative Expenditures for the schools was $2,398,773 (3.6% of Total Expenditures) and Total Superintendent Salaries was $444,535 (.7% of Total Expenditures).
Dr. Machell believes the state can save money if three of the four superintendents are eliminated from the school payroll ($27 million statewide). If the "Machell Model" were used to administratively reorganize the four districts, he believes one superintendent would earn $150,000 and the schools, once consolidated, would save $294,535 in superintendent salaries. While it may be accurate to say "$294,535 will be saved in superintendent salaries" once three superintendents are eliminated, it's not accurate to say that $294,535 will be saved in Total Expenditures or Total Administrative Expenditures. Knowing that by eliminating superintendent services will only
shift the administrative costs to other administrative categories, such as an assistant superintendent or principal salary - the Office of Accountability provided and additional $100,000 to each consolidated school's Total Administrative Expenditures category (in its 2010 "cost of efficiency" model). Because of increased costs since 2010, we'll virtually add $110,000 to each of the three consolidated schools' Total Admin. Expenditures. The final "virtual" Total Superintendent Salaries, after consolidating will now be $480,000, as compared to $444,535 before consolidation. Of course, this virtual consolidation scenario is only anecdotal, a snapshot, but it would probably play out identically if all schools with less than 3,500 students are consolidated. If the state were forced to pay an additional $12,000 for each consolidated school (less than 3,500 students, which totals approx. 500 districts), the Total Administrative Expenditure increase could reach $6 million.
Dr. Machell claims that by reducing the number of superintendents in Oklahoma - $27 million will be saved for instructional costs, but fails to quote even one state where he finds this is true. We've already compared Louisiana's Administrative costs, with only 70 superintendents, to Oklahoma's 538 superintendents. What about other states with fewer superintendents though? Surely there are some states with fewer superintendents than Oklahoma... which spend less money for Administration?
State No. of Supts. No. of Students Admin. $/student
Alabama 180 743,789 $813
Arkansas 289 492,132 $732
Kentucky 186 686,598 $810
Oklahoma 538 692,878 $686
South Carolina 102 763,533 $712
West Virginia 57 277,452 $826
The state's four virtual charter schools will be immune from any consolidation efforts because three of them are privately managed, so the state can't touch them without additional legislation. We'll take a look at the data anyway, and compare to the four traditional schools. Total Expenditures for the virtuals during the 2016 fiscal year was $47,208,232; Total Administrative Expenditures was $2,894,146 (6.1%) and Total Superintendent Salaries was $1,235,130 (2.6%). This total is debatable because virtual schools code the Superintendent Salaries in several subcategories, such as 2500 Business Office. Anyone familiar with gazintas can plainly see that 6.1% > 3.6% and 2.6% > .7%. The question now becomes - Why have our state lawmakers granted immunity from consolidation to the virtual charter schools?
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