Volume 35, No. 3
February 20, 2009
Federal Stimulus Dollars’ Impact on Education Depends on Definition of “Formula”
Although the President signed the “2009 American Recovery and Reinvestment Act” Monday, the impact of those dollars on Alabama K-12 is still being decided. Charts showing each school systems’ allocation for targeted programs, such as special education, were quickly available. However, the big question that remains is how some $730 million in “stabilization funds” will be disbursed by the governor.
Public education is earmarked to receive $598 million, of which approximately $424 million is allocated to K-12 and some $174 million to higher education. The remaining $133 million is left to Gov. Riley’s discretion for other government services, which could include education as well.
The Act states that the Governor shall first distribute the education funds …“through the State’s primary elementary and secondary funding formulae…” AASB believes that the “formula” can only be interpreted as the Foundation Program formula, the state’s funding method used to equitably distribute the budget for core student education. Those funds go directly to the classroom providing teaching units, student instructional materials and operation and maintenance funding or Other Current Expense (OCE), which funds support personnel salaries and benefits.
Competing interests for various programs will be putting pressure on state leaders to find an alternative definition to the state “formula” for education funding. Favored education programs that are not funded through the state Foundation Program have the most to lose in that decision. However, local boards know that education funding is provided through the Foundation Program. The caveat may be that only the total sum of dollars must be provided, and the governor may use discretion within that formula. For example, he might choose to distribute the funds solely through OCE to allow local boards to plug holes in the budget system by system. The details about how the stabilization funds are distributed will be vitally important to local K-12 schools and students.
The flexibility the Governor has puts legislators in a predicament about how to craft the 2010 Education Trust Fund budget, especially when their priorities may differ. The federal relief won’t completely fill the ETF hole anticipated in the 2010 budget. Without a say about where the federal dollars will go, legislators may be forced to make difficult choices about cuts they had hoped to avoid.
Local School Leaders’ ETF Priorities
AASB has data from local school leaders which prioritizes state funding cuts. Survey results confirm local school board priorities protect student achievement, preserve education employees and protect programs to help close the achievement gap among students.
School board members are adamant: protect state-funded teachers by preserving the divisors in the Foundation Program formula. If either the governor’s proposed use of stabilization funds or the Legislature’s proposed budget raises the divisors for how schools earn teacher units, students will be subject to larger class sizes because of the net loss of teachers. AASB’s survey emphatically demonstrates the state funding local school boards most want to protect and which areas could be cut first to minimize the harm to student learning. For results, call 800/562-0601 or click here.
Orientation & Professional Development Policy for School Board Members on Fast Track
Recognizing that informed school boards govern most effectively, legislators are acting quickly on school board member training bills. S.220/H.182 would require each school board to craft a policy outlining orientation and ongoing training requirements for its members.
“This is a GOOD bill,” said Rep. Priscilla Dunn, as the Education Policy Committee unanimously approved H.182. Elected or appointed members on a school board are inundated with complex education questions requiring legal, financial and administrative knowledge. New members must grapple with the issues from their first day of service to govern with student learning as their priority. Knowing that research demonstrates professional development for school board members has a positive impact on student learning drives this legislation. Thanks to Rep. Mac McCutcheon who handled the bill in committee Wednesday.
The non-controversial legislation is supported by the entire education community. The legislation gives local boards autonomy to determine the training that best meets their needs.
S.220, sponsored by Sen. Ted Little, passed the full Senate Tuesday on a 25-0 vote. H.182, sponsored by Rep. Jeremy Oden, awaits consideration by the full House.
Alabama Code Needs Fix for School Nurses
H.47/S.184 would update obsolete language in Alabama law regarding school nurses. The bills would affirm current practice by providing authority for local school systems to employ licensed practical nurses (LPNs) under the supervision of registered nurses (RNs).
The current law is in conflict with local school efforts to staff nursing professionals for our students. H.47, sponsored by Rep. Robert Bentley, awaits action by the full House, and S.186, sponsored by Sen. Quinton Ross, awaits action by the full Senate.
State and Education Employee
Healthcare Contributions May Increase
H.569 would provide that each state and education employee pay a minimum $25 per month to participate in their state-provided health insurance programs. Currently, state employees make no contribution for individual coverage and education employees pay $2 per month for individual coverage through PEEHIP. The bill also provides $180 monthly premium for family health care coverage in both plans. With the additional ccontributions included in the bill, the Legislative Fiscal Office projects a total annual savings of $65 million. For the ETF, the total savings are estimated at $58.9 million or an average of 712 employee salaries.
AASB supports the effort to reasonably increase education employees’ contribution for their health care insurance as a way to save employees’ jobs while still prioritizing student learning in the education budget. The issue has surfaced many times in the past, and the timing to make such a change has arrived. School board members clearly support this cost-saving measure as the 2010 budget faces deep cuts.
Each year, the increases to PEEHIP are significant and are taken off the top of the ETF budget. The assumption that the education budget should simply use its growth to bear those costs has been questioned by the public that provide the tax dollars for student education. In the last five years, employee health insurance costs have increased 83 percent, from $500 million to over $900 million directly from the ETF.
School Safety Remains Agenda Priority
H.199, sponsored by Rep. Earl Hilliard Jr., was approved by the House Education Policy Committee Wednesday. The bill would require school boards to have a comprehensive safety plan for each school. The legislation would require more comprehensive system-wide safety plans than school boards may have in place to comply with a gubernatorial executive order and the federal No Child Left Behind Act. The bill next goes to the full House for consideration.
AASB Supports Banking Option for Schools
H.143, a bill to expand options for local school boards when depositing certain funds, was approved by the House Banking & Insurance Committee Wednesday. This bill would allow school boards to place funds in programs that provide full FDIC coverage for deposits that exceed normal FDIC limits. By using a network of banks, these programs represent a viable alternative to the current requirement that all board funds be secured by the SAFE program. H.143 awaits consideration by the full House. Its companion, S.32, is pending in the Senate Finance & Taxation General Fund Committee.
Code Cleanup Sought
For Education Purchasing Laws
S.418 would consolidate the purchasing laws affecting local school boards. The intent of the legislation is to differentiate legal requirements affecting school boards from laws governing other governmental entities. Consolidating the laws in one education section would clarify the law for local boards whose education purchasing needs may vastly differ from other local entities. AASB supports this bill.
Student Discipline Linked to Drivers’ License
The Senate Education Committee Wednesday approved S.57, the bill that would institute a point system for student conduct linked to a fundamental teenage goal: obtaining a drivers’ license. The bill has gained support and momentum in the last few years before the Legislature.
It proposes a point-based system applied when a student has in-school suspension; out-of-school suspension; alternative school placement and expulsion. The point system would delay the student’s eligibility to obtain a learners’ permit, motorcycle operators’ license or drivers’ license. An amendment will be offered to ensure that the program would only be implemented after current student data system is upgraded and able to apply it (at no cost to local systems). S.57 moves to the Senate.
Alabama on Path to Join Interstate Compact
on Educational Opportunity for Military Children
H.438/S.371, legislation authorizing Alabama to join an interstate compact, has been approved by House and Senate committees. Ten states last year signed an agreement which created the Interstate Compact to address challenges facing schoolchildren of military parents when they are required to relocate across state lines. Many additional states are now considering joining the compact.
The compact would address issues such as eligibility, enrollment, placement and graduation requirements. It also creates an Interstate Commission to address future issues as they arise with general oversight of the agreement.
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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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