"Slush fund" in Montgomery County schools?
The Washington Post this weekend lobbed some serious accusations at the Montgomery County Board of Education, calling recently revealed health care savings a "slush fund." This is the latest development in a battle between the school board governing this high-spending, wealthy suburban district and the County Council that exercises putative control over the county's budget.
In this go-round, the council cut $25M from the schools budget, after which the school board suddenly found $21M in health care savings, which it promptly used to reverse an expected increase in the proportion of health care costs paid by teachers. The Post, a vocal parents' group, and others are unhappy the savings weren't used more directly in the classroom.
The whole thing reveals one of the thorniest problems of traditional "marble cake" school governance. Both the council and the school board are agents of the taxpayers of Montgomery County. They are each serving others sets of interests as well, however: students, parents, teachers, public workers other than teachers, business owners, etc. The present system of governance in Montgomery County doesn't seem to be succeeding at working out the conflicts among those groups in an orderly and transparent way.
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About the Editor
Bernard Lee Schwartz Policy Fellow
Chris Tessone was a Bernard Lee Schwartz Policy Fellow and the Director of Finance of the Thomas B. Fordham Institute. He has strong interests in governance and education finance, especially teacher compensation and school facilities finance.
May 23, 2013