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Cy-Fair ISD Wants To Drop Your 20% Homestead Exemption


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Which parts of CFISD would benefit from year round schooling?

For a long time many Los Angeles USD schools had year round schooling. After an aggressive bond program, many of the year round schools are converting to traditional calendar schools once reliever schools open.

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But with year-round school, don't your staff costs, transportation costs, and utility costs eat up any possible savings? Not to mention the fact that it is often very unpopular with the residents.

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The cost of air conditioning alone would bankrupt most districts. We're talking every school (over 70 schools) cranking up the AC in the hottest time of the year.

Jedijake, are you meaning every school in the district would do year round school?

AFAIK only a portion of the schools in a given district do year round school - i.e. in LAUSD only some schools do year round, and that is decreasing as new schools open.

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It wouldn't solve anything financially. There are several models of year-round school (6wks on/2wks off, 9wks on/3wks off, etc). However, like block-scheduling, the jury is still out as to the effectiveness.

Plus the opportunities for summer employment for both teenagers and teachers presents a major problem. (not to mention summer course work).

Year-round school programs would have to accommodate for teachers salaries. Sure, the naysayers who claim that teachers get paid too much for a 10-month job would argue that they'd still work the same amount of days. However, many teachers earn summer pay for other jobs to compensate.

I've seen benefits of year-round school, but there are many cons as well.

There's one other solution that nobody in Texas will ever want to hear about but has been bandied about from time to time. That is a state income tax. Don't get me wrong-it's not something I would jump up and down about, but it's something else to throw out there.

Texas, particularly the Houston area is doing MUCH better than most places in the country in these desperate times. However, areas like the Bridgelands were supposed to be blooming out of control at this point. That's where a great deal of projected growth was coming from. Those homes are not selling from what I read and growth has stalled. It was marketed as a "move up" community. Prospective new residents cannot sell their homes and therefore are not buying new ones.

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It wouldn't solve anything financially. There are several models of year-round school (6wks on/2wks off, 9wks on/3wks off, etc). However, like block-scheduling, the jury is still out as to the effectiveness.

Plus the opportunities for summer employment for both teenagers and teachers presents a major problem. (not to mention summer course work).

Year-round school programs would have to accommodate for teachers salaries. Sure, the naysayers who claim that teachers get paid too much for a 10-month job would argue that they'd still work the same amount of days. However, many teachers earn summer pay for other jobs to compensate.

I've seen benefits of year-round school, but there are many cons as well.

There's one other solution that nobody in Texas will ever want to hear about but has been bandied about from time to time. That is a state income tax. Don't get me wrong-it's not something I would jump up and down about, but it's something else to throw out there.

Texas, particularly the Houston area is doing MUCH better than most places in the country in these desperate times. However, areas like the Bridgelands were supposed to be blooming out of control at this point. That's where a great deal of projected growth was coming from. Those homes are not selling from what I read and growth has stalled. It was marketed as a "move up" community. Prospective new residents cannot sell their homes and therefore are not buying new ones.

Drove through Bridgeland the other day. You wouldn't know they were suffering through such hard times. New homes still going up. Nice homes.

Most large master-planned communities of similar scale started at the entry-level (i.e. The Woodlands, Cinco Ranch, Fairfield, etc) during downturns etc, but eventually moved upmarket a decade or three (in the case of The Woodlands) later. Bridgelands on the other hand starts at the same price points as the other major master-planned communities in their mature stages.

I think they'll be ok. If you're not familiar with the Caldwell companies, they're a major player in NW Harris County real estate and all of their residential communities are higher end properties which have sold well. They've said they intend to stick with the plan laid out by General Growth. Take it for what its worth. I wouldn't be surprised if GGP comes back (assuming they get their financial house in order) and buys a stake in this development. There will be a mall built there and there are just a handful of companies that develop these today.

I think you'll see an explosion in retail/commercial growth in 2011 once the 2010 census figures come in. A few years later you'll have a totally redone 290 with a tollway and commuter rail along with the Grand Parkway.

Don't weep for Bridgeland or Cypress, growth continues.

People do need to get more politically active though to ensure that we get our fair share returned this area. Ultimately, I want to see an effort to incorporate.

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A few years later you'll have a totally redone 290 with a tollway and commuter rail along with the Grand Parkway.

You might see construction on the GP by 2015, but certainly not 290 or HML. Commuter rail, maybe.

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Response from Scott Hochberg:

Thank you for your note regarding state funding for CFISD. I apologize for responding in a form letter, but the number of emails I have been forwarded prevents me from responding personally to each.

Unfortunately, the call to veto HB 3646 is based on inaccurate or false information. I have tried to find the source of this misinformation, but nobody has yet claimed it, and Dr. Anthony says the email that is being distributed calling for a veto should not be attributed to him.

Here are the facts:

1.) HB 3646 does not penalize CFISD. In fact, according to Commissioner of Education Robert Scott, CFISD will receive an estimated $27.6 million increase in its state funding per year over what it would receive otherwise. That's at least twice the increase per student that the surrounding districts, to which CFISD is being compared, will receive.

2.) Vetoing HB 3646 will not force a special legislative session. The money funding HB 3646 is federal stimulus money, and, if HB 3646 is not in place, Texas must distribute the money according to federal formulas, which will not benefit CFISD, or must return the money.

3.) Even if a special legislative session were called, it would not necessarily benefit CFISD. Districts that are getting less than CFISD per student outnumber those receiving more, so it's at least as likely that CFISD would end up worse off in the deal.

4.) In addition to the $27.6 million that CFISD will get from HB 3646, the Commissioner estimates that CFISD will receive another $27 million in one-time federal stimulus money flowing directly to the district between now and Sept., 2011.

5.) There is no "inaccurate data" used in HB 3646, in fact the bill does not contain the specific allocation that any district will receive. The bill increases the funding of existing formulas, but does not determine how much any specific district will receive. The allocation for CFISD, like any other district, will be based on data that CFISD submits to the Texas Education Agency regarding its student attendance and tax collections. If this data is inaccurate or does not match pre-year estimates, the district will settle up with the state after the school year ends, as always.

6.) I have never said that CFISD should eliminate its homestead exemption. In fact, I carried legislation to increase the homestead exemption for all Texas homeowners, at state expense. Nobody has been able to tell me why this comment is being attributed to me, and nobody I can find has heard me say or imply this.

7.) The districts that are being compared to CFISD as having more funding either have no homestead exemption or have higher tax rates, and therefore have more tax dollars. According to the State Comptroller, Klein, Tomball, Spring and Katy ISDs (and others) have no optional homestead exemption at all, compared with CFISD's 20% exemption. That gives those districts a 10% advantage in tax revenue right off the bat compared with CFISD. Spring Branch ISD has a homestead exemption, like CFISD, but it has a higher tax rate.

8.) HB 3646 does not increase gaps between CFISD and other districts. It lowers gaps that have historically been in place. It does not reduce money available to CFISD, but actually increases state funding by significantly more than it does for the other districts mentioned. Further, it contains an automatic "escalator" clause that increases CFISD's funding even further, without increasing funding for the other districts, if state property values increase faster than student growth, which has occurred almost every year.

Finally, if there is to be a tax increase in CFISD, you should know that eliminating the homestead exemption is not the district's only choice. The district could instead increase the tax rate, in which case the business community would share the increase with homeowners. The district would need to pass an election to increase the tax rate, while it would not need an election to eliminate or cut the homestead exemption.

I appreciate your interest in public education and that you have taken the time to write.

Sincerely,

Scott Hochberg

State Representative

District 137 - Southwest Houston

Original Email:

Forwarding...

Please FORWARD to your CY-FAIR email lists - all Homeowners, Business Owners and Voters MUST voice to VETO this bill.

We are in direct communication with Senator Dan Patrick

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I understand that CyFair ISD has a 28.8 million dollar shortfall, but one partial solution is to change the planned technology replacement and upgrade cycle that was described in their 2004 Bond Referendum as costing $57,200,000. Also, while CyFair ISD holds conferences, graduations, etc... in the Barry Center, the costs of such facilities and sports arenas may outweigh the benefits. It is nice to be able to build such facilities, and to buy the newest technology. But there is a tremendous difference between NEEDS and WANTS

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Isn't that interesting! Sounds like the state was hoarding money. Suddenly, in the heat of the moment, "unexpected" money shows up? Hmmm....

I was wondering if, had CFISD dropped the homestead exemption and STILL be terribly shorthanded by the state with funds, they would turn around and sue the state. Wishing to avoid this, magical money turns up.

Still, I wonder if that will be enough. The article states that there will be budget cuts. What kind of cuts I wonder?

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Isn't that interesting! Sounds like the state was hoarding money. Suddenly, in the heat of the moment, "unexpected" money shows up? Hmmm....

I was wondering if, had CFISD dropped the homestead exemption and STILL be terribly shorthanded by the state with funds, they would turn around and sue the state. Wishing to avoid this, magical money turns up.

Still, I wonder if that will be enough. The article states that there will be budget cuts. What kind of cuts I wonder?

The district is going to cut back on teacher health insurance

. The new bulletin comes out June 28th. Teachers already get bad health insurance, this just should make it even worse.

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The district is going to cut back on teacher health insurance

. The new bulletin comes out June 28th. Teachers already get bad health insurance, this just should make it even worse.

That'll never happen. Of any option, that's the one that will never be a consideration.

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It's over. The board voted 6-1 for keeping the exemption, nixing any type of teacher raise, and digging into deep budget cuts.

I don't think that anyone except maybe Dan Patrick and Dr. Anthony have any idea what will happen after next year. If the board keeps the exemption now, it will keep it forever.

Insolvency is a precursor to bankruptcy. Frozen salaries for several years is a precursor to not being able to make payroll. The only way to avoid those two is to make deeper and deeper cuts every year. School closures, doubling up on bus routes, and 35-40 students in a class or more will result heavily at the secondary level (elementary schools are bound to state minimum laws).

It's going to be interesting.

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It's over. The board voted 6-1 for keeping the exemption, nixing any type of teacher raise, and digging into deep budget cuts.

I don't think that anyone except maybe Dan Patrick and Dr. Anthony have any idea what will happen after next year. If the board keeps the exemption now, it will keep it forever.

Insolvency is a precursor to bankruptcy. Frozen salaries for several years is a precursor to not being able to make payroll. The only way to avoid those two is to make deeper and deeper cuts every year. School closures, doubling up on bus routes, and 35-40 students in a class or more will result heavily at the secondary level (elementary schools are bound to state minimum laws).

It's going to be interesting.

Oh well, at least you still got the football stadium. And, all your high schools look like the campus of Wake Forest University. That oughta count for something.

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Look, we can make accusations and be sarcastic all we want. The bottom line is that this is not a fix or any attempt to solve the situation. Instead of coming up with a solution that will perpetuate over the long haul, the problem was swept under the rug.

It is being reported that 75 positions will need to be cut. The number will be closer to 150 to 200 or more. Last year it was 400-450 positions. Sadly, MORE administrative positions were added (like science coaching teachers-not even sure what that means, especially considering that most hired to that position were under 30 years old-and there were at least 20 people pulled from the classroom for that position).

This isn't about people getting into a profession knowing this would happen. Tell that to people at GM or Chrystler. It also isn't about anything that has already been voted on through bond elections. This is about the fact that the severe problems will continue or get worse. You can only make cuts for so long before you have to shut things down completely. I am not saying the district will cease to exist, but the "sacrifices" that will have to be made year after year will cause the school system to look very different than it does now.

What amazed me is how poorly defended this exemption was last night. The people who spoke against the elimination seemed to either not have a clue about how anything worked or were so frantic in their speech that it came across almost comical. Yet NOBODY on either side talked about the ramifications for the future. I wonder where people think money will come from. Making cuts year after year won't create magical money. The exemption will have to be eliminated eventually and the area is doing FAR better than most areas in the country. (claiming bad economic times is not an excuse)

Klein, Tomball, and Spring ISD must be laughing hysterically at all of this since they don't have an exemption and never will.

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Look, we can make accusations and be sarcastic all we want. The bottom line is that this is not a fix or any attempt to solve the situation. Instead of coming up with a solution that will perpetuate over the long haul, the problem was swept under the rug.

It is being reported that 75 positions will need to be cut. The number will be closer to 150 to 200 or more. Last year it was 400-450 positions. Sadly, MORE administrative positions were added (like science coaching teachers-not even sure what that means, especially considering that most hired to that position were under 30 years old-and there were at least 20 people pulled from the classroom for that position).

This isn't about people getting into a profession knowing this would happen. Tell that to people at GM or Chrystler. It also isn't about anything that has already been voted on through bond elections. This is about the fact that the severe problems will continue or get worse. You can only make cuts for so long before you have to shut things down completely. I am not saying the district will cease to exist, but the "sacrifices" that will have to be made year after year will cause the school system to look very different than it does now.

What amazed me is how poorly defended this exemption was last night. The people who spoke against the elimination seemed to either not have a clue about how anything worked or were so frantic in their speech that it came across almost comical. Yet NOBODY on either side talked about the ramifications for the future. I wonder where people think money will come from. Making cuts year after year won't create magical money. The exemption will have to be eliminated eventually and the area is doing FAR better than most areas in the country. (claiming bad economic times is not an excuse)

Klein, Tomball, and Spring ISD must be laughing hysterically at all of this since they don't have an exemption and never will.

Klein, Tomball and Spring don't have the exemption? Is that correct? Is it correct that Katy too doesn't have the exemption?

I didn't realize our taxes were that much lower than the above referenced areas. More info please.

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It's true, Mr. Football, that only 20 out of the about 1200 school districts in Texas have the exemption. Last week I posted incorrectly that CFISD was the only district in the region with the optional HE. I was wrong-Houston has one. I believe SB has one also, but I am not sure if these districts have the 20%.

Tomball, Spring, and Klein do not and are upset that CFISD is able to keep theirs in such times of "distress" (and be helped, albeit barely, by the state). These districts should be upset-they should be very upset.

My wife and I live in Tomball. We bought our home the day the foundation was laid. We were first time homeowners so, while we were explained everything, we didn't have a complete grasp over what happens when you buy a new home. Therefore, we were shocked when our monthly mortgage went up $300 after the first year (from unimproved to improved land). It was a learning curve to which we adjusted.

Now, sometimes we have a shortage in our ESCROW and sometimes we have an overage. This is all with no additional homestead exemption and one of the higher tax rates around. However, we are happy with where we live. We understand that some of this year's increase resulted from a massive bond that was passed in TISD. We are happy to pay for what is rightfully important.

When I first heard that CFISD was going to eliminate the optional homestead exemption, I thought that 20% would equate to $200 to $300 more per month for homeowners. Then I realized that it was $30 to $35 per month. That seems like a GREAT bargain to ensure that the district in which you live remains competitive with high standards and is able to provide a more sound instructional program.

Unfortunately, the members of the board, who represent the students first and foremost, do not agree.

And, as I said, even more unfortunate is the fact that money is not going to suddenly appear next year, the year after, or the year after that.

But I suppose you get what you pay for in the long run. So, the residents of CFISD will get what they pay for. They agreed to pay for additional buildings but do not agree to pay for quality instruction, programs, or resources within them.

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Does anyone know if being insolvent for a certain number of years results in Chapter 11?

I watched the board meeting in its entirety. I understood things much better the second time around. The board had NO choice given the options, to offer no raise to teachers. This is MUCH bigger than teacher raises since all options meant job losses.

Option 1: reduce the OHE by 10%, cut about 130 jobs, give a 3% raise to teachers

Option 2: keep the OHE intact, cut about 130 jobs, give a 2% raise, and have a tax rise election (would never pass)

Option 3: keep the OHE intact, offer no raise, cut 75 jobs.

Of course the logical thing to do would be to keep as many jobs as possible. Here's the problem though.

During the first week of June, a live a address was given by Dr. Anthony. In it, he stated that the best option was to eliminate the OHE, give teachers a 3% raise, and cut NO jobs.

Somehow, between June 4 and June 26, Option 1 changed dramatically. Suddenly, dropping the entire OHE was no longer a choice. Also, cutting the OHE by 10% and giving teachers a smaller raise of 2% was not an option.

This was clearly a tactic retain the entire OHE and not have any tax increase. Option 3, which had been the worst option, suddenly became the best by far. It was also stated that next year, more jobs would have to be cut and teachers will likely not receive a raise for about 3 years unless:

(1) the OHE is dropped next year (still won't happen of course)

(2) the state changes its funding for Cy-Fair (definitely will not happen)

This brings me back to my original question. If jobs are cut every year just to make payroll, then it would seem that it's a matter of time before the district goes into Chapter 11. If this does occur (within 3 years perhaps?) the state would immediately take over. It is my understanding the the commissioner would either appoint a new board or the SBOE would become the district's controlling board. Finances would become completely restructured (the district office personnel would be reconfigured and MAJOR cuts would be made at that level), and this ghost board would immediately move to eliminate ALL of the OHE as soon as they are legally able to do so.

As much as people hate government taking over things, this may be the best for the district.

So much for the thought that cutting taxes improves business and results in higher quality of services.

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Look, we can make accusations and be sarcastic all we want. The bottom line is that this is not a fix or any attempt to solve the situation. Instead of coming up with a solution that will perpetuate over the long haul, the problem was swept under the rug.

It is being reported that 75 positions will need to be cut. The number will be closer to 150 to 200 or more. Last year it was 400-450 positions. Sadly, MORE administrative positions were added (like science coaching teachers-not even sure what that means, especially considering that most hired to that position were under 30 years old-and there were at least 20 people pulled from the classroom for that position).

This isn't about people getting into a profession knowing this would happen. Tell that to people at GM or Chrystler. It also isn't about anything that has already been voted on through bond elections. This is about the fact that the severe problems will continue or get worse. You can only make cuts for so long before you have to shut things down completely. I am not saying the district will cease to exist, but the "sacrifices" that will have to be made year after year will cause the school system to look very different than it does now.

What amazed me is how poorly defended this exemption was last night. The people who spoke against the elimination seemed to either not have a clue about how anything worked or were so frantic in their speech that it came across almost comical. Yet NOBODY on either side talked about the ramifications for the future. I wonder where people think money will come from. Making cuts year after year won't create magical money. The exemption will have to be eliminated eventually and the area is doing FAR better than most areas in the country. (claiming bad economic times is not an excuse)

Klein, Tomball, and Spring ISD must be laughing hysterically at all of this since they don't have an exemption and never will.

Very well said and I agree. Most of the people concerned have no real grasp of how the process works, concerning school funding, concerning bonds, etc. I am also sure they do not know what it truly takes to successfully run a school, let alone a school district. I am by no means an expert (especially given I am not an educator) but I have taken the time to educate myself, and learn the process, etc.

To many people are concerned with the now; short term ramifications, with no regard to next month, let alone next year. Like you said, we can

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After watching it that second time, I would be willing to see teachers take either no raise again, or a minimal raise (2%) and see the OHE flushed away. It's a give-give situation that spells success in the future.

You are right that boards and residents only see the here and now ramifications. 75 cuts this year means there will be cuts next year, so on and so forth.

However, there is something to consider. On paper, it looks as though Klein and Tomball are doing very very well. Katy is not doing quite as well because their tax rate is HUGE.

New developments in Tomball have slowed down tremendously. Scratch that-they've stopped. I live in Village Creek and we are fortunate to have been built out before the recession. The edge of Northpointe close to Canyon Point Elementary (not sure the names of the developments) have haulted construction. Tomball has never opened a new high school since its birth. They may not be looking ahead to what the costs of operation will be for the new school. Granted, the school is critically needed, the revenue from new residents may not be there to support it.

The same lack of foresight that has caused businesses around the nation to go belly up are causing ALL districts to start the same trend. The problem is, school districts are not businesses and are not profit based. That's why it's ridiculous for people in the business sector to say that schools should be run like the business world. Tax payers do not fund the business world. They SELL products. Schools HAVE to run because kids have to go to school.

New, innovative ways to fund schools must be sought. What about adverstising? Seriously-that's how TV and radio stations are funded. You sell advertising slots to companies with targeted audiences.

Teachers can stop lessons for a "quick word from our sponsor". Sound silly? Some areas are starting to incorporate advertising on buses.

Bad times call for creative ideas. Sadly, very few in school systems have creative minds. Those that do are generally the teachers. Of course, who is going to listen to a bunch of bumbling teachers. After all, they are the demons of society, public enemies #1 and the reason for all or most of society's problems, eh?

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Something else just occurred to me.

If the state is supposedly giving out an $800 raise to teachers (which is about a 1.5% raise on average), then why couldn't the district say they'd drop the OHE by half, give a 1.5% raise to teachers, and cut ZERO jobs?

You compromise with that deal. You keep half of the OHE for what adds up to $10 a month. You give teachers a small raise which, when added to the state's $800, would equal 3%, and you secure everyone's job. With that plan, you keep everyone somewhat happy AND you secure solvency for the district over the next 3-4 years barring weird circumstances. In addition, you have expressed to the state that you are willing to take sacrifices to prove that you truly do need more funding.

THEN, if the "mandated" $800 does not go through (which it is likely not to), the state looks like the bad guy, not the district.

Something fishy went on with the board of education in Cy-Fair. There were several more options that could have been examined but were not even considered which seems to mean there was manipulation to achieve a specific result.

If only there were teacher unions.

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  • 2 weeks later...

Beyond the bonds, beyond the pay raises, beyond the tax increases, beyond state funding, beyond the home owners exemption... (I understand this discussion goes in further then my simple question...)

What make schools and teachers exempt from the economy?

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Apparently they are not as seen by the latest developments. The district is going after teachers first. How convenient.

But to answer the question in an idealistic manner, the business world seeks profit for itself only. Education seeks to benefit society at large and its future. If a CEO of a company lays off employees, as unfair as it is, it benefits the CEO and hurts only the employee. With education, if teachers are affected or laid off, the kids required to receive an education are hurt. (just as laying off police officers, nurses, and firefighters also hurts society).

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Apparently they are not as seen by the latest developments. The district is going after teachers first. How convenient.

But to answer the question in an idealistic manner, the business world seeks profit for itself only. Education seeks to benefit society at large and its future. If a CEO of a company lays off employees, as unfair as it is, it benefits the CEO and hurts only the employee. With education, if teachers are affected or laid off, the kids required to receive an education are hurt. (just as laying off police officers, nurses, and firefighters also hurts society).

The district is going after teachers first.

I don't agree with the district going for teachers, they should be doing it across the board.

the business world seeks profit for itself only.

Which is bad it what way? Who should dictate how much profit one should make if they are developing a system that can sustain itself based on consumer demands? I have seen a government entity blatantly profit themselves, the school districts cannot play innocent. Someone/somewhere mismanaged, overspent and/or just screwed up needs to have his head chopped off. Pointing the finger is the hard part.

If a CEO of a company lays off employees, as unfair as it is, it benefits the CEO and hurts only the employee.

If I own my business, and have to lay people off to survive, it would be fair to fire myself... I should have to close business down so I can fairly fire everyone instead of trying to save some jobs... If I get taxed more, it wouldn't be fair to the person I have to lay off to cover the extra expense. Sorry, but life isn't fair and in some cases it's for the better.

With education, if teachers are affected or laid off, the kids required to receive an education are hurt.

More teachers does not make kids smarter. Throwing X number of teachers at students does not translate to better education. More "qualified/skilled" teachers do. I would hope that those being layed off are the "least qualified" teachers, who may be better suited for different professions.

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More teachers does not make kids smarter. Throwing X number of teachers at students does not translate to better education. More "qualified/skilled" teachers do. I would hope that those being layed off are the "least qualified" teachers, who may be better suited for different professions.

I've been staying out of this because I don't have a dog in this hunt, but I've got to respond to this. Having more teachers may not make kids smarter, but having fewer teachers will be detrimental to the students' learning. I don't understand why that isn't common sense.

Most teachers neither enter nor leave the profession for salary reasons. "Qualified/skilled" teachers generally give more of themselves to their lectures and to their grading and evaluation. Increasing the already high stress level of teachers with larger class sizes is a very quick way to send your best teachers running to other professions to which they are less well suited, just to get away from the stress.

To be more specific, class enrollment is not merely a number. It may seem trivial to increase a twenty-student class to twenty-five students, for example. That kind of thing quickly leads to students of widely different abilities and behavioral maturity in the same class. This is an insurmountable no-win situation for even the best teachers. Another common effect of reduced teaching staffs is the loss of planning or off periods during the day, which are essential for parent contacts and managing paperwork.

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