February 5, 2016 Advocacy Webinar & Update Mark Tallman Download today s webinar outline. Governor s Budget Message

Transcription

1 February 5, 2016 Advocacy Webinar & Update Mark Tallman Download today s webinar outline Governor s Budget Message School District Block Grants funding to school districts unchanged except for KPERS funding KPERS funding reduced (from previously appropriated levels) due to lower cost for lower payrolls Captures unexpended Extraordinary Needs funds for 2016; all funds remain for

2 Governor s Budget Message Governor proposes: Shifting Infants and Toddlers program funding and oversight to Department of Education Shifting Children s Cabinet and program funding to Department of Education Place tobacco settlement revenues in state general fund rather than Children s Initiatives Fund Fund CIF programs under Children s Cabinet from State General Fund (same level of funding) Shift funding of Parents as Teachers to federal TANF funding, requires income means test Higher income families served by PAT would pay fee Governor s Budget Message Budget balanced by transfers, revenue shifts and federal aid to meet November revenue estimates Further adjustments required if revenues continue to drop Appears to be no support for increased revenue January actual receipts available soon 2

3 Governor s Budget Message Budget Documents Budget Director s Presentation January 13 Governor s Budget Volume 1 Governor s Budget Volume 2 Previous Documents: Legislative Research Department State General Fund Profile Consensus Revenue Estimate November 2015 (Long Memo) State General Fund December 2015 Receipts Budget Action: House House Appropriations amended SB 161 as follows: Do NOT transfer Early Special Education and Children s Cabinet programs to Department of Education Maintain Children s Initiatives Fund; fund programs at current level except for $7.2 million Provide $7.2 million from TANF to Children s Cabinet to use at discretion for means tested early childhood programs Remove funding for Parents as Teachers and Pre K pilot from Department of Education budget Funding level and source for PAT and Pre K pilot will be determined by Children s Cabinet (no money in KSDE) If Children s Cabinet can use TANF funding for other programs, CIF can be used to fund PAT without means test 3

4 Budget Action: House House Appropriations amended SB 161 as follows: Allow Governor to make targeted cuts (not across the board) if ending balance is less than $100 million. Allow Governor to defer KPERS payments from FY 16 to FY 17.* Change KPERS Death and Disability payments to reduce costs.* *Both would lower block grant but not school district operating funding. House expected to vote on budget bill next week. Under pay go rule, House cannot increase a budget amount without reducing equal amount of funding elsewhere. Budget Action: Senate Senate Ways and Means Held informational hearing this week. Committee expected to work the bill next week. 4

5 How K 12 State Aid has Changed Total state aid in major categories has increased every year since 2012 and will continue to do so this year and next year under the Governor s budget. Total aid has increased between 0.7 percent and 3.3 percent per year over this period. Net operating funds (subtracting KPERS funding, bond and interest aid, capital outlay aid and property tax reduction in local option budgets) have increased less, between 0.5 percent and 2.0 percent, but risen every year. On an unweighted, FTE per pupil basis, funding has increased between 0.26 percent and 1.5 percent. Every year except 2015, per pupil operating funding has increased less than inflation. KASB will be updating the following chart to provide information from 2009: 5

6 Kansas and National Economy State and School District Efficiency Report Alvarez and Marsal Full (Interim) report (K 12 section begins page 164) A&M Summary presented to Legislature A&M Slide Presentation to Legislature KASB Summary and Analysis of A&M Report Cash Balances reduce to 15 percent of operating budget or lose state aid over five years New Grant Opportunities increase federal grants KSDE IT Functions K 12 Benefits Consolidation (Statewide district health insurance) Collaborative Sourcing on Statewide Basis K 12 USD Insurance Pool KASB staff is meeting by conference call with A&M staff later today (Jan 29) to discuss ways to provide additional information to school leaders. 6

7 Committee on K 12 Student Success Final meeting January 19, approved report Final report, recommendations, other considerations, minority report KASB Analysis and Comments General Principles Committee: Individual focus, accountability of funding by program, tax equity, multi year. Accountability and Assessments Committee: All students take ACT; third party Rose assessments; districts track and graduation, remediation and dropout rates. State Board outcomes approved: Kindergarten Readiness Student Career Plan Graduation Rates Postsecondary Completion or Enrollment Social Emotional factors (determined locally) KSDE Presentations to House Education Committee 7

8 At Risk Funding Committee: Move to new system of identifying at risk students, verify eligibility. Bonding by Local School Districts Committee: State approval for state aid; use state building architect and project manager; limited amount of aid per year. HB 2486 details to follow. 8

9 Accounting Committee: Simple budget documents; allow uniform upload of data; strengthen audits. Report below from accounting working group. Efficient Use of Taxpayer Money Committee: Require certain purchases to be coordinated between districts, through regional service centers or on a statewide basis. HB 2504 details to follow. 9

10 Standards; Other Committee: Base accreditation on Rose standards Other Committee Topics Merit Pay informational hearing held in House Education Committee Jan. 19 [KASB Testimony] Other School Finance Items Senator Denning proposals: Use average daily attendance rather than single count date Use prior year enrollment and valuation for funding calculation Districts retain capital outlay revenue in TIP projects. (HB 2475) 10

11 State aid for Capital Improvements HB 2486 in House Education, hearing held Feb.1; scheduled for possible action Monday, Feb Block Grant SB 7 amended state aid formula for bond election held between July 1, 2015 and July 1, 2017; abolished state aid after July 1, Bill reinstates new formula for election held after Jan. 1, 2016, subject to approval of oversight board. Formula provides 75 percent state aid for district with LOWEST valuation per pupil; drops 1 percent for each $1,000 increase in AVPP. State aid for Capital Improvements School district bond project review board chairs and ranking minority of Appropriations/Ways and Means; two members of Kansas State Board of Education. The board shall determine the extent to which the facility being constructed or improved is to be utilized by the school district for direct instruction of students of the school district, and shall express such utilization as a percentage of the total utilization of such facility. (Not defined) Any architectural enhancements to a facility beyond basic building planning and design shall not be deemed part of the facility that is utilized for direct instruction of students. (Not defined) Only the percentage of the project approved by the board should be eligible for state aid. KASB Testimony 11

12 State aid for Capital Improvements SB 356 In Senate Education, hearing Wednesday, Feb. 10. Similar to HB 2486 with the following exceptions: The review board is composed of the chairs and ranking minority members of the Appropriations/Ways and Means, one member of the state board of education appointed by the state board of education and two members selected by the governor who are actively involved in the construction industry. The board shall review all submitted applications and approve or deny the disbursement of capital improvement state aid...based on whether the project for which such bonds are to be issued is for instruction. As part of its review of an application, the board may conduct a hearing and provide the applicant school district an opportunity to present testimony regarding the project. In determining whether a project is for instruction, the board shall consider the extent to which the facility being constructed or improved is to be utilized by the school district for direct instruction of students of the school district. Impact of change in Bond and Interest aid Spreadsheet for all districts Impact on districts in counties presented on House Education Committee 12

13 What 1 mill raises in each district Expanding Aid to Non Public Education HB 2457 In House Education, hearing held Feb. 2; scheduled for discussion and possible action Feb. 8. HB 2457 Amending the tax credit for low income students scholarship program act. Major changes are as follows: Changes part of definition of eligible student from an at risk student attending a public school to a child whose family household income does not exceed 250 percent of the federal poverty level. Removes portion of definition which required them to be enrolled at a public school the previous year or to be eligible to be enrolled in the first year sought for the child and the child is under the age of 6. Removes portion of public school definition that required the school to be either a Title I focus or Title I priority school. 13

14 Expanding Aid to Non Public Education Adds a provision to require scholarship granting organization to give preference to students who received a scholarship the previous year. Adds provision requiring scholarship granting organization to break payment into two installments (1st and 2nd semester). Section 4 removes reference to corporate income tax. Now reads: There shall be allowed a credit against the tax liability imposed upon a taxpayer... This would allow individuals to claim the credit. Section 4 also changes the amount of the credit from 70 percent of the contribution to the SGO to 100 percent of the contribution. Adds provision that prohibits the credit be given to anyone who designates the contribution for the benefit of a dependent. Increases the limit of the total amount of credits from $10M to $12.5M. Expanding Aid to Non Public Education KASB opposition testimony on these points: Increases state expenditures during budget shortfall, public education underfunded. Private schools under program may be selective in admission of students. No program accountability (testing, accreditation) or transparency (budget information). States with similar programs no better than Kansas on student success measures, usually worse. 14

15 School Consolidation/Realignment HB 2504 in House Education, hearing held Feb. 3; no further action scheduled. HB 2504 School district realignment Requires State Board to oversee redesign of districts by July 1, 2017; take effect one year later. Every county with 10,000 or fewer students to be a single district; over 10,000 districts must have at least 1,500. Apparently based on public school district students who are resident of the county. Boundaries generally follow county lines exceptions: Voluntary consolidations to reach threshold by July 1, State Board may take into account efficiency, not divide cities or townships. Boundary of districts in over 10,000 countries, redrawn if necessary to reach 1,500. Innovative districts may not be divided or disorganized; may have territory added. School Consolidation/Realignment Bond debt will remain with territory that originally approved; so part of new district may be taxed for previous bond issues. The number of school administration and supervisory service employees employed by a realigned school district shall not exceed 120 percent of the number of school administration and supervisory service employees of the school district with the largest enrollment in the prior year. (Not defined) Districts must inventory real property and vehicles for central office; all excess property not required for new central office goes to the state to be sold. No provision of process of determining new school board. Key Issues: What happens to school boards, community accountability Unclear impact on administration; more than superintendents Most successful states have smaller average classes, schools and districts 15

16 School Consolidation/Realignment KASB Support: KASB estimated impact of HB 2504 Report: (Part 1) Estimated Impact of HB 2504: District Reallocation Maps: Before Before with Counties Maps: After After with Counties Report (Part 2): estimated impact of 120 percent administrator limit on current staff Safety, Student Issues SB 367 Amendments to the juvenile justice system; in Senate Corrections and Juvenile Justice; hearings held this week Juvenile Justice Working Group Recommendations to Legislature Purpose: Reduce the number of juveniles in state custody (reduce costs) Implications for school districts: Agreements with law enforcement on handling students Schools reporting crimes already required Training for school resource officers, other personnel KASB/USA analysis and statement (neutral) 16

17 Safety, Student Issues Emergency Safety Intervention Task Force Recommendations to State Board and Legislature Final Report KASB Analysis HB 2534 Amendments to the freedom from unsafe restraint and seclusion act; Schools; relating to restraint and seclusion of students, in House Children and Seniors Committee, hearing Tuesday, Feb. 9; action Thursday. Key Issues: Should reflect consensus of ESI Task Force. Will current law sunset be allowed to expire; replace with regulations (now under consideration by State Board)? Safety, Student Issues SB 323 Suicide Prevention Training, In Senate Education, hearing held; discussion and possible action scheduled Thursday, Feb. 11. USA K Testimony Amendments expected to reflect State Department plans for accreditation regulations. 17

18 KPERS Issues School leaders working with legislative leaders on possible amendments to last year s working after retirement law. Extend grandfather provision for employees retired before May 1, 2015 (with time limit?) Use assurances from districts for hardship/hard to fill positions; extend for three years Allow retirees to return to work at a different district Allow early retirement under previous rules for persons aged 62 and older (issue of surcharge ) Pension spiking concerns Data Privacy Bills SB 342 Creates the Student Online Personal Protection Act; in Senate Education; hearing held Jan. 28; continues Feb. 8. HB 2533 creating the student online personal protection act, in House Education, hearing Wednesday, Feb. 10. Similar to SB 342. KASB position: neutral if amended to remove school districts and other educational agencies from the definition of operator under the bill, so avoid conflict with federal and state student privacy laws. [KASB Testimony Neutral] HB 2588 New bill, KASB analyzing, no action scheduled. 18

19 Informing on Question Elections SB 368 Prohibition against using public funds or resources to promote question submitted election issues; use of bond proceeds; in Senate Ethics and Elections, hearing held Feb. 4. Chief sponsor: Secretary of State Kris Kobach Would allow bond proceeds to be used only for projects identified on ballot. Would prohibit school boards and other local governments from using public funds or resources to promote passage or defeat of a question submit elected (current case law). No municipality shall use government funds to distribute, or cause to be distributed, any brochure, flier, political fact sheet or other document regarding any question submitted election, except as for notifications required by law. Does not prohibit personal advocacy, use of websites or social media. Key Points from KASB in opposition (testimony) Local governments should be allowed to inform voters about question submitted elections (bond issue, LOB limits, etc.) Weapons HB 2468 Authorizing possession of air guns on school property. On House General Orders; recommended as amended by H. Federal and State Affairs Prohibits districts from adopting policies preventing organizations from conducting activities on school property solely because the activities involve the possession and use of air guns. Districts could prohibit the possession of air guns at a school, on school property, or at a school supervised activity except when a pupil is participating in activities conducted by an organization or is in transit to or from such activities. Individuals, or parents of individuals, participating in activities conducted by an organization could be required to sign a liability waiver as prescribed by the chief administrative officer of the school; organization provide liability insurance. The bill would amend the definition of weapon to specifically exclude air guns. KASB opposed the bill (testimony): Local control state should not require districts to allow participation of certain organizations. Liability (addressed by amendment) Did not object to change in definition to make clear air guns MAY be allowed. 19

20 Weapons SB 65 Carrying of concealed handguns by public employees while engaged in employment. Recommended by S. Federal and State Affairs Feb. 3, as amended, including adding provisions of SB 66. Requires municipalities (local governments) to allow licensed employees to carry concealed handgun while engaged in the duties of such employee's employment outside of such employer's place of business, including while in a means of conveyance. As amended, does not appear to apply to school districts. Judicial Selection HCR 5005, constitutional amendment changing the selection process for Kansas Supreme Court Justices, FAILED to receive a two thirds majority Feb. 4. Final vote was 68 votes for and 54 votes against. The amendment, if passed by the Senate, would have allowed the voters to decide whether to give the governor direct power to choose a justice, subject to Senate confirmation. Currently, justices on the seven member court are chosen by the Governor who is given a choice of three candidates from the Supreme Court Nominating Commission. The non partisan commission is made up of five attorneys and four non attorneys. KASB supports the current judicial selection process and opposed the measure. Roll Call Vote 20

21 School District Accounting SB 188 Publication requirements under the Kansas uniform financial accounting and reporting act. FAILED on House final action, 58 vote for and 61 votes against. Roll Call Vote Revises requirements for posting documents on a district s website homepage; Redefines Budget at A Glance and Budget Summary Require each district to publish annually on the district s website : Compensation of the 10 highest compensated employees for districts of 500 or more; or the 3 highest compensated employees districts of less than 500; Expenditures to be paid to or on behalf of school board members including association dues, travel and per diem, expenses, and reimbursements for any other expenses; The lowest, highest, and average aggregate annual compensation of teachers; The dollars per pupil for instruction and total expenditures; Spending allocated to instruction, as a percentage of total expenditures; and FTE enrollment, number of classroom teachers and ratio of the total FTE enrollment to total number of classroom teachers for the current school year. Failure to comply would result in a $1,000 per day civil penalty if not corrected within 20 days of notice by the Kansas State Department of Education. KASB opposed the bill School District Accounting School Accounting Working Group(s) Proposal: have school audits include these Key Performance Indicators as short term alternative to new accounting system. capital outlay bond indebtedness salaries/wage costs insurance expense athletic expense KSDE estimates most already available; minimal cost? State interest in uploading more district accounting data; comparability issues. 21

22 Open Meetings/Records HB 2325 Enacting the public employee bargaining transparency act. Hearing held in House Commerce Feb. 2; scheduled for action Tuesday, Feb. 9. Generally follows current law for school districts. KASB testified as neutral. Energy Conservation Projects HB 2418 Review of and limitations on contracts and lease purchase agreements for energy conservation measures. In H. Commerce Subcommittee. Concerns expressed over agreements that by pass normal bid process for energy conservation projects paid back by utility savings. 22

23 Achievement, Funding KASB Achievement and Funding Research No state that exceeds Kansas on 14 education achievement indicators (seven) provides less total revenue per pupil than Kansas. No state that exceeds Kansas on 76 education achievement indicators (nine) provides less total revenue per pupil than Kansas. KASB Resources KASB Website Key Resources Page Legislative Calendar, Updated Daily NEW: Weekly Capital Connection KASB on Social Media Facebook: Twitter: Mark Tallman: Tallman_Mark Tom Krebs: TomKrebs1 Scott Rothschild: srothschild1 John Heim: JohnHeim67 23

24 February 10 Nothing special planned, but welcome to join us. 24