Volume 36, No. 1
January 15, 2010
Phantom Growth & Federal Dollars
Blur True Education Budget Numbers
Gov. Riley proposed his 2011 budget Wednesday and the budget numbers have public school leaders agog. Some school systems are operating on bank loans and lines of credit to meet payroll obligations, while economists declare that “flat is the new up” and school boards plead for a realistic budget. Local systems’ premise is that for 2011, no matter how harsh, school boards must make every necessary cut in the initial budget. There is no room for error in predicting revenues in the ETF. School boards have no capacity to weather proration if the state cannot fully fund the 2011 budget after the school year starts.
The governor unveiled a budget with some $469 million more revenue than is believed available at least right now. He combined a projected $345 million from a proposed federal jobs bill aimed at nudging the economy and a 2.35 percent growth in the Alabama ETF. But the federal fix is hardly a sure thing; it has just passed the U.S. House and must also pass the U.S. Senate, sometime after the health care debate has resolved. That isn’t likely to happen until the end of February, with high risk for even further delay.
The Legislative Fiscal Office projects zero growth in the education fund which makes the governor’s numbers perplexing. The executive and legislative budget projections have differed before, but the consequences of being off-mark, just by a half percent for 2011, could have drastic consequences upon public schools.
It is dangerous to be overly optimistic in tight financial times when lawmakers forecast budgets for schools. Local school boards must develop budgets to spend projected dollars. When those state dollars fail to materialize, remaining costs become a local liability. Many school systems will not have the resources or borrowing capacity to overcome the shortfall in 2011. This year’s proration is driving some to the brink. ETF committee members recently listened to superintendents tell stories of principals selling slushies at school simply to raise dollars to buy basic cleaning supplies and toilet paper. What more can schools do?
The budget committees face an unexpected repeat of last year -- waiting for Congress. The Legislature is not expected to address the budgets until Congress acts and the impact of the federal dollars can be incorporated into state budget plans. Meanwhile, additional state revenue figures will be available to use in projections. The scenario further proves that Alabama’s state budget funding process is broken and must be revised. (See Rolling Reserve Budget)
Conflicting Views or Wishful Thinking?
Local school boards believe the governor’s rosy budget is more wishful thinking than hard-nosed forecasting . The overall outlook maintains the 2010 split between K-12 and higher education with 68.9 percent to K-12 and 27.4 percent to higher education. The allocated funds largely restore cuts and increase dollars to priorities.
Local school boards expect a number of changes in the budget once lawmakers begin work. When budget considerations begin (probably late March), a budget comparison will be detailed in this newsletter. For a proposed budget spreadsheet, visit www.alabamaschoolboards.org
Charter Schools Bill Unworkable
Issue Diverts Focus
The governor’s fundamentally flawed proposal for charter schools is pending in the House and Senate in the Education Appropriations and Finance and Taxation Education committees. H.189 by Rep. McClurkin and S.202 by Sen. French are complicated pieces of legislation that would allow creation of charter schools statewide. In an unprecedented move, the bills would change fundamentally public education governance and regulations and heap significant financial and legal liabilities on local school boards which have charter schools within their systems, regardless of whether they authorized them or not.
Local school boards unequivocally oppose the bills. However, AASB is working with the Riley administration to provide insights about the significant problems the bills create.
Last December, AASB’s delegate assembly adopted a resolution outlining very specific requirements should a pilot charter school program be considered for Alabama. The proposed legislation simply does not meet those requirements for such schools.
Authorizing charter schools in Alabama would not result in new federal dollars for those schools; this is a misperception. The move only provides 40 points in a 500-point competitive bid for Race to The Top funding. If Alabama even receives a grant, the funds would not be used for charter schools.
The folly is in the rush to pass a law with overarching impact on public education. Review of the legislation reveals a hasty overhaul being pushed for the sake of a limited, competitive grant program.
Unfortunately, the heavy rhetoric and hoopla for the sudden charter school effort is diverting time and attention from a realistic examination of Alabama’s budgets. Local school boards urge lawmakers to recognize the devil in the details. Those problems precede the controversial, philosophical debates about charter schools’ community impact.
Outrageous Loophole in Tenure Process
Headlines across Alabama decried school dollars flowing to terminated education employees due to a flawed tenure law. A most-cited case involves a teacher convicted and serving time in a federal prison who continued to receive her school pay check for more than a year.
Rep. Chad Fincher and Sen. Marc Keahey have introduced legislation that only deals with rare and extreme cases. AASB looks forward to working with these sponsors and other lawmakers seeking to fix not only the outrageous criminal pay scenario but all such cases that leave local boards holding the bag because of the tenure loophole. AASB recognizes that overhaul of the tenure law is necessary, but until then, school boards must have relief from an astonishing technical flaw that destroys morale and drains education dollars.
This tenure loophole provides a shocking, unbelievable monetary incentive for wrongdoers to appeal termination and corrective decisions. Frankly, it is just too good a deal to turn down! The broken tenure system ensures that employee pay continues for an average of four to six months before cases are resolved. Meanwhile, schools also must hire a substitute to fill in for the employee.
Local school board members urge lawmakers to work quickly to solve the tenure loophole. AASB supports a solution that not only addresses extreme cases, but provides relief to ALL local school systems.
Educator Code of Ethics Fate Uncertain
The Legislature wasted no time in addressing the Educator Code of Ethics proposal. It approved a joint resolution to override the state Board of Education’s effort to place it in the Administrative Code. SJR 9, sponsored by Sen. Roger Bedford, was approved 18-10 in the Senate Tuesday and in the House Thursday 43-32 with 1 abstention. The joint resolution next goes to Gov. Riley for signature. Should Riley veto, as expected, the House and Senate must override his veto. It would take a simple majority vote in both Chambers to override the veto.
The ethics legislation is the final chapter in a saga that began last year. The state Board of Education voted to place the previously-adopted Educator Code of Ethics in the Administrative Code. The Legislative Council then met and revised the code. The state board stood by its original proposal after the council’s vote. Now, the entire Legislature must uphold the council’s recommendation and override a gubernatorial veto or the state board’s version Code of Ethics board will be placed in the Administrative Code.
Prudent Budgeting Process Vital
Lawmakers’ budget dilemma epitomizes the worst of Alabama’s education funding method. Local school boards support a sound, systematic and sustainable budgeting process to fund Alabama’s public schools. H.99 by Rep. Greg Canfield is once again the practical blueprint for that process: the Education Trust Fund Rolling Reserve Act.
The proof is in a scenario Alabama would enjoy had the process been in place the past two decades. Not only would every year of proration have been avoided, but the education budget would have remained steady, even during the last two years the recent economic decline.
AASB recognizes the past cannot be changed, but we can act now. Stable funding and stable growth allow for planning and building a future for the education of Alabama’s children. Support H.99.
Mandatory Elementary P.E. Moves Fast
The House Education Policy Committee Wednesday approved H.105, sponsored by Rep. Ken Guin, to address elementary physical education. The committee adopted an amendment so that K-8 must take thirty minutes of P.E. daily, but may include marching band, junior ROTC, or activities approved in a students Individualized Education Plan (IEP).
The amendment is a significant improvement to the bill. Nevertheless, AASB believes curriculum decisions should be made by the state Department of Education rather than the legislature.
2009 Legislative Session Acts
Require Board Policy Adoptions in 2010
School Board Member Training: Act 09-297
The act requires each school board to adopt a board training policy by March 1, 2010. AASB has developed a sample for boards to consider.
Student Harassment Protection: Act 09-571
The act requires each school system to adopt a policy by July 1, 2010. A model by the state Department of Education has been released.
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Local school boards work with legislative leaders to accomplish the public’s highest priority -- educating our children.
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28 Days remain in the
Regular Legislative Session.
Next Week: AASB Goes Green
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