2013 LEGISLATIVE SESSION Summary Report. Reflects Governor s Final Actions August 21, 2013

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1 2013 LEGISLATIVE SESSION Summary Report Reflects Governor s Final Actions August 21, 2013

2 IOWA ASSOCIATION OF COMMUNITY COLLEGE TRUSTEES IOWA ASSOCIATION OF COMMUNITY COLLEGE PRESIDENTS 2013 LEGISLATIVE SESSION Summary Report Reflects Governor s Final Actions July 3, 2013 (updated August 21, 2013) This summary of the 2013 Legislative session was prepared by Steve Ovel, Kirkwood Community College, on behalf of and in cooperation with the 2013 Iowa Community College lobbying team and active legislative liaisons consisting of the following individuals: Don Avenson, Tom Cope, Matt Eide, Jerry Fitzgerald, Maggie Fitzgerald, Mark Joyce, Brice Oakley, John Pederson, Dave Palmer, IACCT Legislative Consultant, Cindy Schulte, Iowa Valley Community College District, and Jim Kersten, Iowa Central Community College. Thank you to IACCT Executive Director MJ Dolan for her valued support and leadership throughout the legislative session. We also thank the following Community College legislative liaisons for their support with their local Community College legislative delegations and their frequent trips to the State Capitol: Ann Watts (DMACC), Julie Stoik (WITCC), Matt Thompson (SWCC), Gary Mohr (EICCD), Clark Marshall (ILCC), Don Kohler (IWCC), Jan Snyder (NCC), Kathy Flynn (HCC), Michele Applegate (NIACC), Martha Wick (IHCC), Barb O Hea (NICC) and Becky Rump (SCC). We extend a special thank you to Ann Watts (DMACC) for her assistance in sending the weekly legislative updates, preparing the bill tracking list, and maintaining the IACCT legislative website for the past eight legislative sessions. Ann is retiring this year and we wish her the very best in all her future endeavors. We also thank Gary Kaufman (DMACC) for his capable assistance in preparing bill drafts for the lobbying team throughout the legislative session. Jeremy Varner, Division Administrator and his team at the Department of Education, Division of Community Colleges and Workforce Preparation provided invaluable assistance in drafting new language and changes to existing statutory language regarding the Career and Technical Education task force, adult literacy and work-based learning intermediary programs. We also extend a thank you to the staff of the United Way of Central Iowa and the United Way of East Central Iowa for their leadership in organizing and preparing the Skills2Compete Coalition Policy Paper that served as the foundation document for our funding and policy requests for the Adult Literacy Program and PACE Career Pathways Program and for their effective advocacy efforts throughout the legislative session in support of these initiatives. Any questions regarding the information in this report should be directed to Steve Ovel at or sovel@kirkwood.edu or the IACCT office at Legislative Summary Page 1

3 Summary of Appropriations Program FY 2014 Inc./Dec. over Percent Appropriation FY 2013 change State General Aid * $193,274,647 $ 16,000, % Faculty Salary Funding $ 500,000 $ 0 0.0% Voc-Tech Tuition Grant Program $ 2,250,185 $ 0 0.0% Skilled Workforce Shortage Grants $ 5,000,000 $ 0 0.0% GAP Tuition Assistance Program $ 2,000,000 $ 0 0.0% Regional Telecomm. Councils $ 992,913 $ 0 0.0% Workforce Development Fund $ 4,000,000 $ 0 0.0% Corrections Education Program $ 2,608,109 $ 250, % ACE Infrastructure Fund $ 6,000,000 $ 0 0.0% Maintenance Infrastructure Fund $ 0 ($ 5,000,000) (100.0%) Small Business Development Ctrs. $ 735,728 ($ 200,617) (21.4%) Workforce Training & Economic $ 15,300,000 $ 7,300, % Development Fund (260C.18A) Adult Literacy Programs $ 5,500,000 $ 5,500,000 new PACE Career Pathways Program $ 5,000,000 $ 5,000,000 new Work-based Learning Network $ 1,500,000 $ 1,500,000 new Total $244,460,965 $ 30,349, % * The $500,000 FY 2013 faculty salary funding allocation was built into the FY 2013 state general aid base and is contained in the FY 2014 SGA appropriation above. Community College Legislative Priorities 1. Increase our State General Aid Support We secured an increase of $16.5 million in SGA for FY 2014 (includes faculty salary funding) over the FY 2013 funding level. This is the single largest one year increase in SGA in our history exceeding last years $13.5 million increase. 2. Increase our Infrastructure and Job Training Support We secured level funding for the ACE Infrastructure Fund of $6.0 million. The ACE infrastructure funding is now allocated directly to the Community Colleges and not by application through the EDA. A $1.0 million maintenance infrastructure appropriation was vetoed by the Governor. The Workforce Training and Economic Development (WTED) fund was increased to $15.3 million and the EDA Workforce Development Fund was level funded with $4.0 million. 3. Protect the Integrity of the Iowa New Jobs Training Program (260E) We succeeded in protecting Chapter 260E from any legislative changes Legislative Summary Page 2

4 4. New Student Assistance Program Support Statutory language establishing PACE career pathways and GAP tuition assistance programs was passed in This year we secured $2.0 million in continued funding for the GAP Tuition Assistance program to support tuition assistance for non-credit skill certificate programs. The Kibbie Skilled Workforce Shortage Tuition Grant program was established in FY $5.0 million in continued funding was secured to support students in our credit career and technical education programs. 5. Workforce Development Programs $5.0 million in new funding was secured for the PACE career pathways program. $5.5 million in new funding was secured for adult education and literacy programs. $1.5 million in new funding was secured for the statewide work-based learning intermediary network. 6. Career and Technical Education Reform A Secondary Career and Technical Education Program Task Force will be established by the Department of Education to review the content, quality and availability of career and technical education programs statewide. School districts were given the authority to use funding from their statewide one cent sales tax infrastructure funds in collaboration with other school districts and their community college to support the construction of regional education centers. New State Funds Established During This Legislative Session Skilled Iowa Worker and Job Creation Fund A new fund was created to support worker training and job creation efforts in the state. It is being funded with the first $66 million from the state s gaming industry receipts. Seven existing and new community college workforce development, job training and student financial assistance programs are now being supported from this new fund. See House File 604 on page Legislative Summary Page 3

5 2013 Legislative Report Index Summary of Appropriations Page 2 Community College Legislative Priorities Page 2 New State Funds Established During This Legislative Session Page 3 Appropriations Bills Education Appropriations Bill State General Aid Page 6 Faculty Salary Funding Page 7 Student Financial Aid Programs Vocational-Technical Tuition Grant Program Page 8 National Guard Educational Assistance Grants Page 9 Private College Iowa Tuition Grant Program Page 9 All Iowa Opportunity Scholarship Program Page 9 State University Funding Page 9 Iowa Skilled Worker and Job Creation Fund Page 10 Workforce Development Fund Statutory Changes Page 11 Workforce Training and Economic Development Fund Page 11 GAP Tuition Assistance Program Page 13 Kibbie Skilled Workforce Shortage Tuition Grant Program Page 14 Pathways for Career and Employment Program Page 14 Adult Basic Education and Adult Literacy Programs Page 15 Accelerated Career Education Infrastructure Program Page 18 Small Business Development Centers Page 18 AMOS Workforce Program Page 19 Secondary Career & Technical Education Task Force Page 20 Work-based Learning Intermediary Network Page 20 State SILO Regional Education Center Funding Page 21 Administration and Regulation Appropriations Bill Regional Telecommunications Councils Page 21 Economic Development Appropriations Bill Workforce Development Fund Page 23 Workforce Development Field Offices Page 24 Offender Reentry Program Page 25 Justice Systems Appropriations Bill Corrections Education Page 25 Infrastructure Appropriations Bill Page 26 Bond Repayment & Supplemental Appropriations Bill Bond Repayment Fund Page 26 Maintenance Infrastructure Funding Page 26 Health and Human Services Appropriations Bill SNAP Employment & Training Program Page Legislative Summary Page 4

6 Bills of Primary Interest to Community Colleges Community College Deductions Page 27 Department of Education Policy Bill Page 28 Bills of Secondary Interest to Community Colleges Record Checks of Health Care Employees and Students Page 29 Department of Homeland Security and Emergency Management Page 30 Economic Development Authority Policy Bill Page 31 Targeted Jobs Withholding Pilot Projects Page 31 Commercial & Industrial Property Tax Reform Page 32 Education Reform Page 32 Bills Not Passed of Interest to Community Colleges Career & Technical Education Reform Page 33 Economic Development Authority Tax Provisions Page 33 Appendix A Education Appropriations Bill Statutory Language Provisions Workforce Development Fund Page 34 Pathways for Career and Employment Program Page 34 GAP Tuition Assistance Program Page 36 Adult Basic Education & Adult Literacy Programs Page 36 School Infrastructure Regional Education Center Funding Page 37 Statewide Work-based Learning Intermediary Network Page 37 Tables (on attached PDF file) Table 1A: State General Aid Distribution Page 40 Table 1B: State General Aid Distribution Page 41 Table 2: Faculty Salary Distribution Page 42 Table 3: Workforce Training & Economic Development Fund Page 43 Table 4: GAP Tuition Assistance Program Page 44 Table 5: PACE Career Pathways Program Page 45 Table 6: Adult Education and Literacy Program Page 46 Table 7: Workforce Development Fund Distribution Page 47 Table 8: ACE Infrastructure Distribution Page Legislative Summary Page 5

7 Appropriations Bills Education Appropriations Bill: House File 604 SIGNED by the Governor State General Aid for Community Colleges. Appropriates $193,274,647 in state general aid (SGA) to the Community Colleges. This is an increase of $16,000,000 or 9.0% compared to the FY 2013 appropriation of $177,274,647. The 2013 appropriation numbers below include the $500,000 in FY 2013 faculty salary funding built into our SGA base. That is why the increase over FY 2013 column below totals $15,500,000. The FY 2014 distribution prepared by the Department of Education is displayed below. See attached Tables 1A & B for detailed spreadsheets. FY 2013 SGA FY 2014 SGA Increase over Appropriation Appropriation FY 2013 Northeast Iowa $ 8,854,388 $ 9,572,490 $ 718,102 North Iowa Area $ 9,217,658 $ 9,772,970 $ 555,312 Iowa Lakes $ 8,497,711 $ 9,035,001 $ 537,290 Northwest $ 4,174,658 $ 4,443,196 $ 268,538 Iowa Central $ 9,881,929 $ 10,865,853 $ 983,924 Iowa Valley $ 8,132,678 $ 8,657,389 $ 524,711 Hawkeye $ 12,225,380 $ 13,121,235 $ 895,855 Eastern Iowa $ 15,299,569 $ 16,582,059 $ 1,282,490 Kirkwood $ 27,463,617 $ 30,143,212 $ 2,679,595 Des Moines Area $ 28,313,175 $ 31,835,539 $ 3,522,364 Western Iowa Tech $ 9,991,020 $ 10,781,694 $ 790,674 Iowa Western $ 10,478,080 $ 11,522,373 $ 1,044,294 Southwestern $ 4,247,120 $ 4,527,071 $ 279,952 Indian Hills $ 13,313,886 $ 14,202,552 $ 888,666 Southeastern $ 7,683,781 $ 8,212,013 $ 528,232 Total $177,774,647 $193,274,647 $15,500,000 State General Aid Appropriations History: FY 1988 $ 75,399,923 FY 1989 $ 80,351,182 +$ 4,951,259 FY 1990 $ 87,275,326 +$ 6,924,144 FY 1991 $ 99,007,776 +$11,732,450 FY 1992 $103,957,683 +$ 4,949,907 FY 1993 $105,999,720 +$ 2,042,037 FY 1994 $111,520,721 +$ 5,521,001 FY 1995 $115,470,717 +$ 3,949,996 FY 1996 $120,871,270 +$ 5,400,553 FY 1997 $126,006,271 +$ 5,135, Legislative Summary Page 6

8 FY 1998 $130,582,051 +$ 4,575,780 FY 1999 $135,366,156 +$ 4,784,105 FY 2000 $141,577,403 +$ 6,211,247 FY 2001 $147,577,403 +$ 6,000,000 FY 2002 $137,585,680 ($ 9,991,723) FY 2003 $138,585,680 +$ 1,000,000 FY 2004 $139,260,763 +$ 675,083 +$ 762,675 one time supplement $135,779,244 ($ 3,481,519) 2 ½% ATB cut FY 2005 $139,779,244 +$ 4,000,000 FY 2006 $149,579,244 +$ 9,800,000 FY 2007 $159,579,244 +$10,000,000 FY 2008 $171,962,414 +$12,383,170 FY 2009 $183,062,414 +$ 9,100,000 $180,316,478 ($ 2,745,936) 1 ½% ATB cut FY 2010 $158,678,501 ($21,637,977) $184,278,501 +$25,600,000 ARRA one time supp. $168,410,655 ($15,867,846) 10% ATB cut, Oct. 8, 2009 $174,354,235 +$ 5,943,580 ARRA MOE supplemental $175,179, ,012 Fac. Sal. added to SGA base FY 2011 $158,754,232 ($16,425,013) $152,825,911 ($ 5,928,321) Deappropriation $158,754,232 +$ 5,928,321 Supplemental appropriation $159,579, ,012 Fac. Sal. added to SGA base FY 2012 $163,774, ,195,403 $164,274, ,000 Fac. Sal. added to SGA base FY 2013 $177,274, ,000,000 $177,774, ,000 Fac. Sal. added to SGA base FY 2014 $193,274, ,000,000 $193,774, ,000 Fac. Sal. Added to SGA base Community College Faculty Salaries. Appropriates $500,000 for distribution to Community Colleges to supplement faculty salaries. This is level funding with the FY 2013 appropriation. This is the seventh year for this appropriation. Future annual appropriations are uncertain although there is a tentative commitment by legislative leadership to provide additional funding in future years in an effort to increase Community College faculty salaries to the national average. These funds are to be built into our base SGA appropriation for all future years. This was done in FY 2008, FY 2010, FY 2011, FY 2012 and FY 2013 but was not done for the FY 2009 appropriation due to the budget cuts experienced in the FY 2010 appropriation process. The FY 2014 distribution has not yet been prepared by the DE. See attached Table 2 for a spreadsheet detailing the Community College faculty funding appropriation calculation. FY 2013 Allocation FY2014 Allocation Northeast Iowa $ 38,585 $ 38, Legislative Summary Page 7

9 North Iowa Area $ 21,513 $ 21,778 Iowa Lakes $ 24,150 $ 24,021 Northwest $ 10,494 $ 10,495 Iowa Central $ 22,825 $ 23,877 Iowa Valley $ 19,296 $ 19,298 Hawkeye $ 31,483 $ 30,961 Eastern Iowa $ 37,451 $ 38,230 Kirkwood $ 75,952 $ 76,616 Des Moines Area $ 93,596 $ 92,478 Western Iowa Tech $ 19,939 $ 20,204 Iowa Western $ 33,256 $ 33,291 Southwestern $ 12,068 $ 11,283 Indian Hills $ 38,304 $ 38,046 Southeastern $ 21,087 $ 20,827 Total $ 500,000 $ 500,000 Community College Faculty Salary Funding History: FY 2008 $2,000,000 FY 2009 $1,500,000 Was not built into our base as required FY 2010 $ 916,680 ($ 91,668) 10% ATB cut, Oct. 8, 2009 $ 825,012 Net allocation FY 2011 $ 825,012 ($ 20,415) Deappropriation, Jan. 3, 2011 $ 20,417 Supplemental appropriation $ 825,012 Net allocation FY 2012 $ 500,000 FY 2013 $ 500,000 FY 2014 $ 500,000 See Iowa Code section 260C.18D for background on the faculty salary distribution formula. Vocational-Technical Tuition Grant Program. Appropriates $2,250,185 for the Vocational- Technical Tuition Grant Program. This is level funding with the FY 2013 appropriation. The current funding level provides average grants of $729 to an estimated 3,000 students. The maximum grant is $1,200. Vocational-Technical Tuition Grant Program Appropriations History: Fiscal Funding Applicants Students Average Year Assisted Award FY 1998 $1,875,000 23,499 5,217 $ 416 FY 1999 $2,244,197 21,581 5,859 $ 383 FY 2000 $2,482,400 21,747 5,890 $ 421 FY 2001 $2,482,400 19,108 6,051 $ 410 FY 2002 $2,482,400 16,414 5,899 $ Legislative Summary Page 8

10 FY 2003 $2,375,657 19,505 2,767 $ 859 FY 2004 $2,533,115 21,204 2,642 $ 899 FY 2005 $2,533,115 20,459 2,891 $ 876 FY 2006 $2,533,115 20,853 2,961 $ 855 FY 2007 $2,533,115 20,459 2,950 $ 859 FY 2008 $2,783,115 19,792 3,397 $ 819 FY 2009 $2,783,115 20,056 3,211 $ 854 FY 2010 $2,512,958 25,716 2,912 $ 863 $2,261,662 Reduced by 10% ATB cut $2,512,958 Restored through supplemental appropriation FY 2011 $2,413,959 30,645 2,966 $ 826 FY 2012 $2,250,185 31,362 3,037 $ 729 FY 2013 $2,250,185 FY 2014 $2,250,185 National Guard Educational Assistance Program. Appropriates $5,100,233 to the College Student Aid Commission for the National Guard Tuition Aid Program. This is a $300,000 increase in funding compared to the FY 2013 appropriation. The maximum award is limited to the cost of attendance at Regents universities. Private College Iowa Tuition Grant Program. Appropriates $46,513,448 to the Iowa Tuition Grant Program in support of students attending Iowa s private colleges and universities. This represents an increase of $1,000,000 or 2.2% from their FY 2013 level of support. $500,000 in additional one time funding support was provided for in the Standings Appropriations Bill, SF 452, and $500,000 in the Bond Repayment and Supplemental Appropriations Bill, SF 648. Appropriates $2,500,000 to the Iowa Tuition Grant Program to for students attending for-profit private institutions. This is level funding compared to the FY 2013 appropriation. All Iowa Opportunity Scholarship Program. Appropriates $2,200,000 for the All Iowa Opportunity Scholarship Program. This is a decrease of $40,854 in funding compared to the FY 2013 appropriation. Appropriates $554,057 for the All Opportunity Foster Care Grant Program. This is level funding compared to the FY 2013 appropriation. State University Funding. Appropriates to the Regents $559,126,751 in state general aid for all university programs. This is an increase of $14,091,545 or 2.6% from their FY 2013 appropriation level. $10,000,000 in additional one time general institutional support was provided to the University of Northern Iowa in the Bond Repayment and Supplemental Appropriations Bill, SF 648, to offset lower revenues from a majority of their student body being comprised of Iowa resident students. Regents tuition set-aside fund replacement request. Historically the state universities have been using up to 21% of their student tuition receipts for redistribution to other students for merit and need based scholarship assistance. The Regents had requested $40 million in student 2013 Legislative Summary Page 9

11 scholarship assistance to replace this tuition set-aside practice. They received no funding to do so during this legislative session. The following statutory restriction regarding this practice was passed by the legislature. Iowa Code Section 262.9, subsection 19, Code 2013, is amended by adding the following new paragraph: NEW PARAGRAPH. c. Prohibit the designation of a portion of the tuition moneys collected from resident undergraduate students by institutions of higher education governed by the board for use for student aid purposes. However, such institutions may designate that a portion of the tuition moneys collected from nonresident students be used for such purposes. Iowa Skilled Worker and Job Creation Fund. A new fund was created to support worker training and job creation efforts in the state. It is being funded with the first $66 million from the state s gaming industry receipts. The following existing and new community college workforce development and job training programs are now being supported from this new fund: Workforce Training and Economic Development Fund (260C.18A) $15,300,000 Adult Basic Education and Adult Literacy Programs (260C.50) $ 5,500,000 Pathways for Career and Employment Program (260H) $ 5,000,000 GAP Tuition Assistance Program (260I) $ 2,000,000 Work-based Learning Intermediary Network (256.40) $ 1,500,000 Kibbie Skilled Worker Shortage Tuition Grant Program ( ) $ 5,000,000 Accelerated Career Education Infrastructure Program (260G) $ 6,000,000 Total $40,300,000 The following EDA and university economic development programs are now being supported from this new fund: EDA Economic Development Incentive Fund (High Quality Jobs Prog.) $16,900,000 AMOS, Project Iowa (a Des Moines workforce initiative) $ 100,000 Regents Innovation Fund $ 3,000,000 UI Entrepreneurial Program $ 2,000,000 ISU Economic Development Programs $ 2,424,302 UI Economic Development Programs $ 209,279 UNI Economic Development Programs $ 1,066,410 Total $25,700,000 NEW SECTION Iowa skilled worker and job creation fund. 1. An Iowa skilled worker and job creation fund is created in the state treasury. The fund shall consist of appropriations made to the fund, moneys transferred to the fund, and moneys deposited in the fund as provided by law. 2. The Iowa skilled worker and job creation fund shall be separate from the general fund of the state and the balance in the Iowa skilled worker and job creation fund shall not be considered part of the balance of the general fund of the state. However, the Iowa skilled worker and job creation fund shall be considered a special account for the purposes of section 8.53, relating to generally accepted accounting principles. Moneys in the fund may be used for cash flow purposes during a fiscal year provided that any moneys so allocated are returned to the fund by the end of that fiscal year. Notwithstanding section 8.33, moneys in the fund at the end of each 2013 Legislative Summary Page 10

12 fiscal year shall not revert to any other fund but shall remain in the fund for expenditure in subsequent fiscal years. Workforce Development Fund Statutory Changes. The bill includes the following policy changes. See Appendix A for the detailed statutory language. Strikes Iowa Code Section , subsection 2, paragraphs a and d. These following two programs no longer receive funding from the Workforce Development Fund so they are being removed from the Code. This was a code corrective action. o a. Training and retraining programs for targeted industries o d. Innovative skill development activities. Increases the funding limit for each business site from $25,000 to $50,000 annually and the three year limit for each business site from $50,000 to $100,000. The limit for consortium projects is increased from $50,000 to $100,000. Workforce Training and Economic Development Fund (260C.18A) Statutory Changes. The bill strikes Iowa Code Section 260C.18A, subsection 2, paragraph e, Job retention projects under section 260F.9, which was repealed June 30, This was a Code corrective action. The bill transfers oversight responsibility for the Workforce Training and Economic Development Fund (WTED) from the Economic Development Authority (EDA) to the Department of Education (DE) effective July 1, Both agencies were supportive of this change. The change was made for the following reasons: The WTED fund was established in 2003 as part of the Grow Iowa Values Fund (GIVF). o The WTED fund was assigned to the Department of Economic Development (DED) for oversight because they had responsibility for most of the other GIVF programs and the GIVF appropriations were directed through the DED. EDA Director Debi Durham indicated when she assumed responsibility for the EDA that all of their programs would be reviewed and those not representing the core EDA mission would be directed elsewhere. o The WTED fund is not a core EDA program. o Most of the expenditures in the program are for programs and activities under the jurisdiction of the DE. o The DE is better positioned to evaluate WTED fund program performance and accountability. The other three job training programs under the administrative oversight of the EDA, the 260E, 260F and 260G programs all involve Community College contractual relationships with employers, much like the EDA financial incentive programs. The WTED fund programs, however, involve service delivery directly to credit and noncredit students, individual workforce program clients and K-12 school districts. The three historical funding sources for the WTED fund, the Grow Iowa Values Fund, the Iowa Power Fund and the Rebuild Iowa Infrastructure Fund are no longer operational Legislative Summary Page 11

13 o The GIVF and IPF are no longer in the Iowa Code. The funding for the WTED fund was changed to a general fund line item in the Education Appropriations Bill and appropriated to the DE. Currently the DE has to transfer that appropriation to the EDA for distribution to the Community Colleges. The funding is now coming out of the Iowa Skilled Worker and Job Creation Fund and being appropriated to the DE. We also supported allocating up to $150,000 of the annual WTED fund appropriation to the DE to support a full time workforce development staff position(s) to provide the staffing needed to provide statewide accountability oversight and coordination of the workforce and job training programs supported through the WTED fund. $100,000 was appropriated. Workforce Training and Economic Development Fund (260C.18A) Appropriation. The bill appropriates $15,300,000 to support this program. This represents an increase of $7,300,000 or 91.3% over the FY 2013 appropriation of $8,000,000. This funding is now coming from the new Iowa Skilled Worker and Job Creation Fund created in section 8.75 and funded from gaming revenues. $100,000 of this appropriation is to be allocated to the Department of Education for administration of the Workforce Training and Economic Development funds created pursuant to Iowa Code Section 260C.18A. The WTED fund was established in 2003 as part of the Grow Iowa Values Fund enabling legislation. The WTED fund has become an important source of financing for Community College new program innovation, development and capacity building with a focus on career and technical education and the state s targeted industry clusters. The WTED program had three primary funding streams the previous four years; the Grow Iowa Values Fund, the Iowa Power Fund and the Rebuild Iowa Infrastructure Fund. Two of these funding streams, the IPF and RIIF were eliminated at the end of Fiscal Year Funding from the GIVF was discontinued at the end of FY A new $5,000,000 general fund appropriation was established in the 2011 Education Appropriations Bill for deposit into the WTED fund accounts in FY This was intended as the ongoing budget line item that would serve as the basis for funding the WTED fund in future years, given the loss of funding from the GIVF, IPF and RIIF. $8,000,000 was appropriated for FY Funding in future years will come from the new Iowa Skilled Worker and Job Creation Fund. Moneys in the fund are allocated pursuant to the Community College state general aid distribution formula established in Iowa Code Section 260C.18C. See attached Table 3 for detailed spreadsheet. FY 2013 FY 2014 Allocation Allocation Northeast Iowa $ 354,285 $ 703,181 North Iowa Area $ 333,466 $ 545,081 Iowa Lakes $ 308,460 $ 527, Legislative Summary Page 12

14 Northwest $ 152,257 $ 263,433 Iowa Central $ 513,009 $ 965,067 Iowa Valley $ 297,570 $ 514,726 Hawkeye $ 468,048 $ 877,893 Eastern Iowa $ 607,877 $ 1,256,041 Kirkwood $1,394,966 $ 2,627,791 Des Moines Area $1,744,473 $ 3,457,153 Western Iowa Tech $ 390,691 $ 774,379 Iowa Western $ 496,977 $ 1,024,118 Southwestern $ 156,211 $ 274,574 Indian Hills $ 491,307 $ 871,501 Southeastern $ 290,402 $ 517,902 Total $8,000,000 $15,200,000 Workforce Training and Economic Development Fund Appropriations History: Grow Iowa Iowa Rebuild Iowa State General Total Values Fund Power Fund Infrastructure Aid Fund Appropriation/ Iowa Skilled Worker Fund FY 2004 $ 3,758,065 $ 3,758,065 FY 2005 $ 3,106,160 $ 3,106,160 FY 2006 $ 7,000,000 $ 7,000,000 FY 2007 $ 7,000,000 $ 7,000,000 FY 2008 $ 7,000,000 $ 2,500,000 $ 2,000,000 $11,500,000 FY 2009 $ 7,000,000 $ 2,500,000 $ 2,000,000 $11,500,000 ($ 1,400,000) 20% flood recovery cut $10,100,000 FY 2010 $ 6,300,000 $ 2,500,000 $ 2,000,000 $10,800,000 FY 2011 $ 5,320,000 $ 2,500,000 $ 2,000,000 $ 9,820,000 FY 2012 $ 2,100,000 $ 5,000,000 $ 7,100,000 FY 2013 $ 8,000,000 $ 8,000,000 FY 2014 $15,300,000 $15,300,000 GAP Tuition Assistance Program (260I) Appropriation and Statutory Changes. The bill appropriates $2.0 million from the new Iowa Skilled Worker and Job Creation Fund to the Gap Tuition Assistance Fund to implement the gap tuition assistance program. This is level funding with FY Funding can be carried over from year to year. The fund is administered by the Department of Education. The bill includes the following two policy changes in 260I. See Appendix A for detailed statutory language. Increases the student income eligibility threshold from 200% to 250% of the federal poverty level Legislative Summary Page 13

15 Authorizes the use of funds for the costs of providing direct staff support services. Limited to 20% of the annual allocation for the two smallest Community Colleges, 10% for the two largest Community Colleges and 15% for the remaining eleven Community Colleges. Moneys in the fund are to be allocated pursuant to the Community College state general aid distribution formula established in Iowa Code Section 260C.18C. The official allocation numbers as determined by the Department of Education for the Gap Tuition Assistance Fund follow below. See attached Table 4 for a detailed spreadsheet. FY 2013 FY 2014 Allocation Allocation Northeast Iowa $ 99,875 $ 99,614 North Iowa Area $ 105,623 $ 103,700 Iowa Lakes $ 97,276 $ 95,601 Northwest $ 47,778 $ 46,966 Iowa Central $ 109,975 $ 111,174 Iowa Valley $ 93,052 $ 91,494 Hawkeye $ 139,022 $ 137,538 Eastern Iowa $ 173,124 $ 172,123 Kirkwood $ 305,949 $ 308,971 Des Moines Area $ 309,637 $ 318,529 Western Iowa Tech $ 113,363 $ 112,401 Iowa Western $ 117,196 $ 117,880 Southwestern $ 48,537 $ 47,781 Indian Hills $ 152,082 $ 149,784 Southeastern $ 87,511 $ 86,444 Total $2,000,000 $2,000,000 Kibbie Skilled Workforce Shortage Tuition Grant Program. The bill appropriates $5,000,000 million from the general fund to the College Student Aid Commission for the Kibbie Skilled Workforce Shortage Tuition Grant Program. This is level funding with FY Moneys appropriated by the bill that remain unencumbered or unobligated at the close of the fiscal year do not revert to the general fund but remain available for expenditure for the purposes designated by the bill until the close of the fiscal year that begins July 1, In FY 2013, the first year of this new grant program, 4,233 unduplicated student awards were made in the fall and spring semesters totaling $3,608,180 in grant disbursements for an average award of $852. $1,391,820 was reserved for students attending summer sessions in Pathways for Academic Career & Employment Program (PACE) appropriation and statutory changes. The bill appropriates $5.0 million from the new Iowa Skilled Worker and Job Creation Fund to the Pathways for Academic Career & Employment Fund to implement the 2013 Legislative Summary Page 14

16 PACE career pathways program. This is new funding for this program. Funding can be carried over from year to year. The fund will be administered by the Department of Education. The bill includes the following two policy changes and two new program definitions. See Appendix A for detailed statutory language. Establishes a PACE fund into which the appropriation will be placed. Increases the student income eligibility threshold from 200% to 250% of the federal poverty level. Technical Iowa Code correction. Adds language defining pathway navigators. Adds language defining regional industry sector partnerships. Moneys in the fund are to be allocated pursuant to the Community College state general aid distribution formula established in Iowa Code Section 260C.18C. The official allocation numbers as determined by the Department of Education for the PACE Career Pathways Fund follows below. See attached Table 5 for a detailed spreadsheet. FY 2014 Allocation Northeast Iowa $ 248,931 North Iowa Area $ 233,614 Iowa Lakes $ 218,734 Northwest $ 108,066 Iowa Central $ 288,437 Iowa Valley $ 210,732 Hawkeye $ 331,002 Eastern Iowa $ 433,345 Kirkwood $ 798,715 Des Moines Area $ 880,254 Western Iowa Tech $ 278,282 Iowa Western $ 306,709 Southwestern $ 110,838 Indian Hills $ 348,927 Southeastern $ 203,414 Total $5,000,000 Adult Basic Education and Adult Literacy Programs. The bill appropriates $5,500,000 million from the new Iowa Skilled Worker and Job Creation Fund to implement adult basic education/adult literacy programs. This is new funding for this program. Funding can be carried over from year to year. The program will be administered by the Department of Education. $3,883,000 shall be allocated for the ABE/GED adult literacy programs delivered by Iowa s Community Colleges as provided for in new Iowa Code Section 260C Legislative Summary Page 15

17 o This appropriation will be distributed using the Community College SGA distribution formula. $1,467,000 is allocated for ELL adult literacy programs. o The funding will be distributed as grants to community colleges for the purpose of adult basic education programs for students requiring instruction in English as a second language. o The Department of Education is directed to establish an application process and criteria to award grants pursuant to this subparagraph to community colleges. The criteria shall be based on need for instruction in English as a second language in the region served by each Community College as determined by factors including data from the latest federal decennial census and outreach efforts to determine regional needs. $150,000 is allocated for DE staff support and related leadership activities. From the moneys appropriated in this paragraph, $210,000 shall be transferred to the Department of Human Services for purposes of administering a pilot project to provide access to international resources to Iowans and new Iowans to provide economic and leadership development resulting in Iowa being a more inclusive and welcoming place to live, work, and raise a family. o The pilot project shall provide supplemental support services for international refugees to improve learning, literacy, cultural competencies, and assimilation in 10 locations within a county with a population over 350,000 as determined by the 2010 federal decennial census. o The Department of Human Services shall utilize a request for proposals process to identify the entity best qualified to implement the pilot project. The request for proposals shall specify that a qualified entity must be utilizing more than 100 interpreters and translators fluent in over 50 languages and dialects to help medical clinics, government agencies, nonprofit organizations, businesses, and individuals overcome language barriers so that limited English proficient individuals can receive essential services; working with the United States department of state, the United States agency for international development, and a family foundation center for international visitors that facilitates visits from international leaders to build personal and lasting connections between Iowans and professionals from around the world; partnering with business and industry, foundations, and accredited postsecondary educational institutions and other entities located in the state to offer monthly public forums by leading experts and engage youth in global leadership conferences; and leading the state in providing resources to immigrants and refugees through a multilingual guide to the state, a comprehensive resource website, and emergency interpretation services. o Some of the language for this allocation was vetoed by the Governor. Iowa is currently one of only three states that do not provide funding assistance for adult literacy programs. This new state funding will supplement the federal Department of Labor allocation. It will build on existing career pathways policy and programs by investing in adult basic education and integrated learning programs to help more low-skilled adult workers obtain postsecondary credentials and skill sets required for employment in middle skill jobs Legislative Summary Page 16

18 This funding may be used to develop and deliver contextualized coursework tied to a community colleges PACE career pathway and GAP tuition assistance programs. The bill includes new statutory language (260C.50) to better define these eligible activities in the Iowa Code. Iowa Code Chapter 259A is limited to the GED program. See Appendix A for detailed statutory language. The FY 2013 basic adult literacy appropriation was distributed as follows using the SGA funding distribution formula as provided for in the appropriation language. These are the official numbers as determined by the Department of Education. See Table 6 for a detailed spreadsheet. Basic Adult Literacy Program FY 2014 Allocation Northeast Iowa $ 193,376 North Iowa Area $ 195,522 Iowa Lakes $ 181,014 Northwest $ 89,064 Iowa Central $ 218,225 Iowa Valley $ 173,554 Hawkeye $ 264,118 Eastern Iowa $ 334,866 Kirkwood $ 605,828 Des Moines Area $ 637,453 Western Iowa Tech $ 217,610 Iowa Western $ 231,587 Southwestern $ 90,814 Indian Hills $ 285,016 Southeastern $ 164,953 Total $3,883,000 The FY 2013 ELL adult literacy appropriation was distributed as follows using a special distribution formula developed by the DE as provided for in the appropriation language. These are the official numbers as determined by the Department of Education. ELL Adult Literacy Program FY 2014 Allocation Northeast Iowa $ 41,251 North Iowa Area $ 36,185 Iowa Lakes $ 30, Legislative Summary Page 17

19 Northwest $ 39,156 Iowa Central $ 74,744 Iowa Valley $ 66,359 Hawkeye $ 65,876 Eastern Iowa $ 85,282 Kirkwood $ 115,450 Des Moines Area $ 397,520 Western Iowa Tech $ 126,649 Iowa Western $ 54,532 Southwestern $ 31,418 Indian Hills $ 57,637 Southeastern $ 34,856 Total $1,257,000 Accelerated Career Education (ACE) Infrastructure Program. Appropriates $6,000,000 from the Iowa Skilled Worker and Job Creation Fund for infrastructure improvements at Community Colleges associated with implementing ACE Programs authorized under Chapter 260G. This is level funding compared with FY Funding is to be distributed equally to all Community Colleges as it has been in prior years. Each Community College will be allocated $400,000. Beginning in FY 2013, this appropriation is now managed by the Department of Education and distributed directly to the Community Colleges. Accelerated Career Education (ACE) Program Infrastructure Appropriations History: FY 2000 $7,500,000 FY 2001 $5,300,000 FY 2002 $2,500,000 FY 2003 $2,500,000 FY 2004 $5,500,000 FY 2005 $5,500,000 FY 2006 $5,500,000 FY 2007 $5,500,000 FY 2008 $5,500,000 FY 2009 $5,500,000 FY 2010 $5,500,000 FY 2011 $5,500,000 FY 2012 $5,000,000 FY 2013 $6,000,000 FY 2014 $6,000,000 Small Business Development Centers (SBDCs) (ISU Economic Development Programs). Appropriates $2,424,302 to the economic development programs at Iowa State University from the Iowa Skilled Worker and Job Creation Fund which is level funding with the FY 2012 funding level. The bill requires an allocation of $735,728 for the Small Business Development Centers, many of which are located at our Community Colleges. This is a decrease of $200,617 or 21.4% in funding compared to FY Legislative Summary Page 18

20 Small Business Development Centers Appropriations History: General Fund GIVF FY 1998 $1,222,880 FY 1999 $1,235,880 FY 2000 $1,248,329 FY 2001 $1,211,869 FY 2002 $1,147,192 FY 2003 $ 459,831 FY 2004 $ 460,000 FY 2005 $ 550,000 FY 2006 $ 550,000 $350,000 FY 2007 $ 650,000 $350,000 FY 2008 $ 900,000 $350,000 FY 2009 $1,060,000 $350,000 FY 2010 $ 976,234 $315,000 FY 2011 $ 994,929 $266,000 FY 2012 $ 936,345 $105,000 FY 2013 $ 936,345 FY 2014 $ 735,728 AMOS. $100,000 is appropriated from the Iowa Skilled Worker and Job Creation Fund to the Department of Workforce Development to develop a long-term sustained program to train unemployed and underemployed central Iowans with skills necessary to advance to higherpaying jobs with full benefits. This funding is earmarked for an existing program in the Des Moines area, A Mid-Iowa Organizing Strategy, or Project Iowa. Secondary Career and Technical Education Programming Task Force. We worked with the DE during the interim to develop a process for evaluating the content, quality and availability of career and technical education programs at the secondary level and their alignment with our Community College CTE programs. Following our work, a task force was created to do so. It will do its work over the next eighteen months. The following language establishing the task force and its mission was included in the bill: 1. a. The director of the Department of Education, or the director s designee, shall convene a task force that includes secondary and postsecondary education stakeholders, including representatives from business, industry, construction-trade industry professionals and labor to review current secondary career and technical programming offered by community colleges and make recommendations for programming that reduces skill shortages, enhances the state s economic growth, and ensures that all students statewide have access to high quality globally competitive career and technical education programs. b. The task force shall review appropriate provisions of the Iowa Code, including but not limited to Code chapter 258, relating to vocational education, and section , subsection 5, paragraph h, relating to vocational service area requirements in the core curriculum standards for grades nine through 12, and related provisions of the Iowa administrative code. The task force shall consider measures to ensure rigorous standards, consistency in program quality 2013 Legislative Summary Page 19

21 statewide, alignment with postsecondary programs leading to middle-skill occupations with family-sustaining wages, curriculum that aligns workforce skills with industry-recognized standards where those standards exist, responsiveness to labor market needs, robust business and industry participation, including participation on advisory committees, and efficient statewide delivery of programming. The task force shall also review the definition of career academy for purposes of Code sections 260C.18A and 261E.10, and review and recommend core components of career academies and regional centers. c. The task force shall recommend specific changes in policy or statute to ensure that all students statewide have access to high-quality, globally competitive career and technical education programs. The task force shall submit an interim progress report by January 15, 2014, and a final report with its findings and recommendations by November 1, 2015, to the state board of education, the governor, and the general assembly. Statewide Work-based Learning Intermediary Network. The bill appropriates $1,500,000 to support this program. This is a new appropriation. $50,000 of the appropriation is to be used to support the DE staff expenses associated with the Secondary Career and Technical Education Task Force. The funding is to be distributed on a request for proposal basis but if all fifteen Community Colleges apply, it will most likely be distributed equally at $96,667 per college. Regional entities other than Community Colleges may apply for the funds. This enabling legislation and statewide network was created in 2009 with a one-time allocation of $900,000 from the DED s targeted industry program funding allocation. All fifteen Community Colleges established a regional intermediary network but only a few remained after the initial funding was exhausted. The bill makes a number of changes to Iowa Code Section (Statewide Work-Based Learning Intermediary Network) which include more focus on preparing students for the workforce by connecting business and education and offering relevant, work-based learning activities to students and teachers, particularly opportunities in occupations relating to STEM or to opportunities in targeted industries identified by the EDA. The statewide work-based learning intermediary network program would integrate services with other career exploration-related activities and facilitate the attainment of portable credentials of value to employers, when appropriate. A steering committee will develop a design for a statewide network comprised of 15 regional work-based learning intermediary networks and recommend program parameters and reporting requirements to the Department of Education. Each regional network, or consortium of regional networks, shall annually submit a report to the department that details its operations and activities for the most recent fiscal year and includes a plan for providing, in the following year, core services to all school districts within its region and for integrating job shadowing activities into secondary career and technical education programs. See Appendix A for the detailed statutory changes to Code section Legislative Summary Page 20

22 SILO Fund Use Authorization for Regional Centers and Joint Infrastructure Projects. We have been attempting for several years to secure a change in the statute that will allow school districts on a statewide basis to use their Physical Plant and Equipment Levy (PPEL) and/or Statewide School Infrastructure (SILO) funding for the construction or lease of Regional Academy Centers through partnerships of two or more secondary schools and a Community College. A pilot project was approved several years ago allowing Hawkeye Community College and four school districts in the Grundy Center area to use their PPEL funds to support Hawkeyes Western Outreach Center. The SILO program is now referred to as SAVE. The bill permits a school district to use its SAVE one cent statewide sales tax supported infrastructure fund to sell, lease, exchange, give, or grant, and accept any interest in real property to, with, or from a community college for purposes of a joint infrastructure project with one or more school districts or one or more school districts and a community college for buildings or facilities constructed or leased for the purposes of offering classes under a district-to-community college sharing agreement or concurrent enrollment program. See Appendix A for the detailed statutory language. We were unsuccessful in securing use of PPEL funding for this purpose. Administration and Regulation Appropriations Bill: House File 603 SIGNED by the Governor Regional Telecommunications Councils. Appropriates $992,913 to the Regional Telecommunications Councils (RTCs) to provide technical assistance for ICN network classrooms, planning and troubleshooting for local area networks, scheduling of video sites and other related support activities. This is level funding compared to the FY 2013 appropriation. The regional distribution is based on a per region amount plus a per site amount. The conference committee report specified that the moneys appropriated for this purpose shall be distributed by the commission to the regional telecommunications councils based upon usage by region. The regional telecommunications councils shall report to the Iowa Telecommunications and Technology Commission by January 31, 2014, for the immediately preceding six-month period beginning on July 1, 2013, and ending December 31, 2013, and by July 31, 2014, for the immediately preceding six-month period beginning on January 1, 2014, and ending on June 30, The report shall include information requested by the Commission related to the activities supported through this appropriation. A new formula has been created to distribute the RTC allocation. The formula includes: Fiscal Year 12 percent of Total ICN Usage for all Regions = percent of Allocation Received. ICN usage includes: Internet, data, and video from community colleges, Area Education Agencies (AR+EA), and K-12 schools. Charges and discounts are based on Fiscal Year 12 financial information Legislative Summary Page 21

23 The final distribution for FY 2014 has been determined by the Iowa Telecommunications and Technology Commission and is as follows. FY 2013 FY 2014 Allocation Allocation Northeast Iowa $ 69,581 $ 72,683 North Iowa Area $ 63,935 $ 62,775 Iowa Lakes $ 55,062 $ 64,518 Northwest $ 54,257 $ 54,093 Iowa Central $ 68,774 $ 63,717 Iowa Valley $ 59,095 $ 60,701 Hawkeye $ 65,548 $ 64,946 Eastern Iowa $ 61,515 $ 61,555 Kirkwood $ 83,293 $ 90,548 Des Moines Area $ 92,165 $ 92,496 Des Moines Public Schools $ 7,278 $ 0 Western Iowa Tech $ 64,471 $ 61,679 Iowa Western $ 71,194 $ 61,601 Southwestern $ 58,288 $ 58,496 Indian Hills $ 61,515 $ 64,256 Southeastern $ 56,675 $ 58,850 Total $ 992,913 $ 992,913 Regional Telecommunications Councils Appropriations History: FY 1998 $1,750,000 FY 1999 $1,858,192 FY 2000 $1,858,192 FY 2001 $1,692,188 FY 2002 $1,522,393 FY 2003 $1,272,285 FY 2004 $1,272,285 FY 2005 $1,240,478 FY 2006 $1,240,478 FY 2007 $1,240,478 FY 2008 $1,364,525 FY 2009 $1,364,525 FY 2010 $1,232,071 $1,108,864 Reduced by 10% ATB cut FY 2011 $1,065,180 FY 2012 $ 992,913 FY 2013 $ 992,913 FY 2014 $ 992, Legislative Summary Page 22

24 Economic Development Appropriations Bill: Senate File 430 SIGNED by the Governor EDA Workforce Development Fund. Appropriates $4,000,000 from the Workforce Development Fund Account to the Iowa Economic Development Authority s (EDA) Workforce Development Fund program. This is level funding with FY By statute, $3,000,000 is distributed to the Community Colleges for job training projects authorized under Chapter 260F and $1,000,000 is distributed to those Community Colleges with eligible apprenticeship programs also authorized under Chapter 260F and based on each Community College s proportional share of eligible contact hours from the previous year. That distribution will be determined after the FY 2013 apprenticeship numbers are certified. There were two policy changes to the Workforce Development Fund that are included in the Education Appropriations Bill, House File 604. From the $3,000, F allocation, $300,000 will be placed in the Community College business consortium training fund leaving $2,700,000 for distribution based on each Community College s proportional share of SGA in FY 2013 as provided for by administrative rule. These are the official numbers as determined by the Department of Education. See attached Table 7 for a detailed spreadsheet. FY 2013 FY 2014 Allocation Allocation Northeast Iowa $ 134,832 $ 134,478 North Iowa Area $ 142,591 $ 139,996 Iowa Lakes $ 131,322 $ 129,061 Northwest $ 64,500 $ 63,404 Iowa Central $ 148,466 $ 150,084 Iowa Valley $ 125,621 $ 123,517 Hawkeye $ 187,680 $ 185,676 Eastern Iowa $ 233,718 $ 232,366 Kirkwood $ 413,031 $ 417,111 Des Moines Area $ 418,010 $ 430,014 Western Iowa Tech $ 153,040 $ 151,741 Iowa Western $ 158,215 $ 159,139 Southwestern $ 65,524 $ 64,504 Indian Hills $ 205,311 $ 202,208 Southeastern $ 118,139 $ 116,699 Total $2,700,000 $2,700,000 EDA Workforce Development Fund Appropriations History: FY 1998 $4,250,000 FY 1999 $6,850, Legislative Summary Page 23

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