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Senate & House Conference Budget and Legislation for K-12 Education 2009-11 Biennium 2009-10 and 2010-11 SY 2009 Supplemental, 2008-09 SY April 30, 2009.

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Presentation on theme: "Senate & House Conference Budget and Legislation for K-12 Education 2009-11 Biennium 2009-10 and 2010-11 SY 2009 Supplemental, 2008-09 SY April 30, 2009."— Presentation transcript:

1 Senate & House Conference Budget and Legislation for K-12 Education Biennium and SY 2009 Supplemental, SY April 30, 2009 Office of the Superintendent of Public Instruction

2 Big Picture View of Budgets Biennium Comment 1Budget Deficit $9.3 Billion18.5% deficit 2 Addtl Federal Resources (benefiting budget) $3.0 Billion $4.6 Billion total new federal resources 3Reduction to K-12 $1.8 Billion (2 State Fiscal Years) -2.6%, depending on how calculated Update 4/30/ Preliminary OSPI Analysis of Conference Budgets

3 Formula or Statewide Allocations: Statement of Change ActionComment 1I-728$680.8 M reduction (75%) Of remaining $226.6 M, $128.6 M funded with ARRA 2Levy Equalization $67 M reduction (15%) (caution, see later slide) Of remaining $425 M, $157 M funded with ARRA 3K-4 Ratio 294 school districts: No reduction in funding; no use- it-or-lose-it, full flexibility Language re: on-line learning applies to one district; still use-it-or-lose-it 4 Continue $25 M in Pupil Transportation No, funding eliminated$12.5 M per year 5 Continue 1:58.75 CLS Yes Update 4/30/ Preliminary OSPI Analysis of Conference Budgets

4 I-728 Reduction SY10-11SYBiennial Amount 1Enrollment980,667986,381- 2Rate (old)$458.10$ Rate (new)$131.16$ Total Funding (old rate)$449,243,553$458,173,975$907,417,527 5Total Funding (new rate)$128,624,284$97,967,361$226,591,645 6Difference (row 5-row 4) ($320,619,269)($360,206,614)($680,825,883) Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 4

5 Compensation MaintenanceConferenceDifference 1COLA$352,616$0$0($352,616) 2Health Care$127,900*$44,188($83,712) 3Rate in SY$774*$745($29) 4Rate in SY$831*$768($63) 5Math/Science PD Eliminated $43,991$4,255 Remainder of SY ($39,736) 6LIDs Funded21(1) 7Cost of LID$71,368$35,684($35,684) 8Primary National Board Bonus (SHB 2343) $5,105*$5,090($15) 9Challenging School Natl Board Bonus $5000 $0 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 5 *Governors proposed Budget

6 State Pensions Conference Budget saves $575.2 million across state government and $339.4 million in K-12 Phases in adoption of new funding method for Plan 1 liabilities; Changes salary growth assumptions; Delays adoption of new mortality tables until biennium. Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 6

7 Pensions Rates PlanMaintenanceConference PERS8.00%5.29% TERS10.95%6.14% SERS8.28%5.43% DRS admin Fee.16% Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 7 PlanMaintenanceConference TERS, Plan16.00% TERS, Plan24.93%3.36% SERS, Plan14.00%3.14% PERS, Plan16.00% Employer Contribution Rates Employee Contribution Rates, by plan Small adjustments may occur due to misc. legislation not yet signed.

8 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 8

9 Levies and Equalization Policy Debate Ensure that reductions in I-728 and I-732 are included in levy base, change sunset date Allow mid-cycle elections Increase Levy Lid by 4%-points, no more than 35% Levies passed through 2011 Reduce levy equalization by 15% (prorate) Do not increase equalization to reflect higher lid Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 9

10 Three bills that passed only 1 chamber SHB 1776 (As Passed House) ESHB 1776, Engrossed Striker (As Passed Senate) SB 6138 (As Passed Senate) 1 Suspended I-728/I-732 funding included in levy base Makes permanent the inclusion of suspended amounts in the levy base; ensures addition of new suspended amounts Extends current sunset clause from 2012 to 2015; ensures addition of new suspended amounts 2Mid-cycle levy openerYes 3 Increase in levy lid from date legislation enacted to 2011 Increases lid by 4%-points (up to 35%) for levies passed 2009 (after effective date of section) through 2011 Increases lid by 4%-points (up to 35%) for levies passed through Increase lid for levies authorized prior to May 2009 NoYes 5 Prorate or reduce levy equalization Yes, determined in the budget 6Other After-school grants determined in budget 7StatusPassed House Senate Amended House - passed Bill; House did not Concur Passed Senate; Did not pass House 10 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets

11 Levy Equalization Funding Reduction SY SYTotal 1Maintenance Level$241,906,000$251,195,000$493,101,000 2 Actual Funding (State and Federal) assuming Passage of ESHB ,034,000211,381,000425,415,000 3 Reduction from Maintenance Level (27,871,000)(39,814,000)(67,686,000) 11 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets

12 What is next? Levy Lid LiftLevy Equalization Policy Debate General consensus to increase the lid 4%-points, but not more than 35%; extra authority should be time-limited; extra authority should be for current levies and prospectively No consensus in House to support Senate proposal to increase lid while reducing equalization Status 1 of 3 bills driving a special session Timing is important to school districts, so pressure for action soon Legislation is necessary to implement the budget but without a bill, OSPI will pay equalization at 100% 12 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets

13 What to assume? Cannot predict legislative action w/ regard to levies and equalization Not financially prudent to assume that levy lid will be increased when developing RIF notices Not financially prudent to assume no or zero reduction in equalization Assuming the worst-case results in more RIFs; few good options this year Revenue is lower than projected; may be forced to push $60 million LEA reduction elsewhere (possibly in K-12) 13 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets

14 14 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets

15 ARRA Funds 4 Types of ARRA in Budget Fiscal Stabilization Title I IDEA Ed Technology Other ARRA Education Programs Homeless/ McKinney-Vento School Improvement Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 15

16 How will ARRA Fiscal Stabilization funds impact district in the School Year? Stabilization funds replace state funds for I-728 and General Apportionment Note: Districts will not be required to base expenditures on time and effort, if elect to use under Impact Aid Districts will need to track all expenditures separately for ARRA funds, and this does mean moving expenditures 16 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets

17 Distribution of ARRA Funds School Year Total Fiscal Stabilization $452,500$286,079$0$738,579 Title I 064,963 $129,926 IDEA 0110,679 $221,358 Ed Technology 04,139 $8,278 Total $452,500$465,860$179,781$1,098, Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets $ in Thousands

18 Distribution of Fiscal Stabilization Funds School Year Total Levy Equalization $0$157,455$0$157,455 Student Achievement $452,500*$128,624$0$581,124 Total $452,500$286,079$0$738,579 *Most will be expended through General Apportionment. 18 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets

19 Why School Year? Initial guidance from U.S. ED. indicated that must expend in sequence, beginning with 2009 ARRA requires proportionality; must allocate between in K-12 and Higher Education Reluctance by Legislature to use against General Apportionment in Need federal resources in state budget in FY Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets

20 How will system use ARRA funds in SY? State will apply for resources by 5/5/09 (est.) State will apply on behalf of districts by 5/5 (est.) – More later JV payroll of all I-728 CIS and most General Apportionment CIS to program 13 or available sub-program – No time & effort required, if used under Impact Aid Program – Revenue to be paid under account 6113 (new) – F-196 reporting under program 13 (new) 20 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets

21 How many staff, from where? 1Application Date 5/4/09 OR 5/11/09 2Weeks of Payroll Paid after Application Date Payroll for General Apportionment CIS 38,76747,300 4Percent of CIS 81%99% 5Payroll for I-728 CIS 3,900 6Percent of CIS 100% 21 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets We will give you more specifics as soon as we can…

22 Districts Must also Apply i-Grants application is pre-populated Declare using ARRA Fiscal Stabilization funds for purposes consistent with Elementary and Secondary Education Act – Strongly encourage: Title VIII, Impact Aid, Section 8003 – Most flexible program in ESEA, any expenditure is eligible (except those expressly not allowed by ARRA) On-system by 5/1 (estimate) Superintendents electronically sign by 5/5 Please 22 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets

23 Reporting Requirements for SY Expenditures Even though using the resources under Impact Aid provisions, and just-about any expenditure is allowable, still must report use of federal ARRA October 2009, expected date of reporting guidance I-728 reporting should be straight-forward We will collect reports via i-Grants and will populate report as much as we can Do not yet know if need to identify individual teachers to ARRA funds, or a portion of all teachers is acceptable 23 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets

24 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 24

25 Unprecedented Increase in IDEA $221 million for and Could allocate some in , but difficult issues with safety net eligibility mid-cycle Begins in , giving a bit more planning and thoughtful use of resources While the Legislature assumed 50/50 split, the appropriation is a biennial appropriation; OSPI intends to award all IDEA money in FY Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 25

26 Flexibility of IDEA is not universal IDEA permits districts to consider 50% of any IDEA increase as local money in the MOE calculation Effectively permits a district to replace local levy funds with part of the IDEA increase District must be in Meets Requirements status or determination in order to use this flexibility data November 2008 determination drives flexibility for school year via MOE calculation in districts Meet Requirements; 173 do not Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 26

27 How to gain flexibility, any district? No easy way out of this---federal guidance is absolutely explicit Any district not in Meets Requirements SEA must prohibit the district from using 50% of the increase in the MOE test Tried to implement best of two years (apply November 2008 or 2009 determination to SY)---cant do it OSPI eliminate carry forward cap Districts pay careful attention to new MOE calculation worksheets Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 27

28 How to gain flexibility if one of 122? OSPI considering allocating full grant in , not split between two years 50% of full allocation is eligible for exclusion from MOE calculation Instead of 50% of the first year amount; 0% of 2 nd year amount Hits safety net in Year 1 instead of split between 2 years (All of allocation must be obligated by 9/30/11, regardless of split of grant between years) Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 28

29 How to gain flexibility if one of 173? OSPI considering allocating full grant in , not split between two years Working on other options to provide flexibility if one of 173 Additional information will be forthcoming Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 29

30 30 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets

31 ESHB 2261 – State Education System Elements of an expanded Program of Basic Education and the funding to support it are phased-in and intended to be fully implemented by This expanded program does the following: Increases Instructional Hours Enhances the High School Diploma Authorizes a New Transportation Funding Formula All-Day Kindergarten part of BEA Adds the Highly Capable Program to BEA & creates a safety net similar to that of special education Adds Early Learning Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 31

32 ESHB 2261 – State Education System Other items included in the bill: Funding allocations and reporting on expenditures will use a prototypical school model System Capacity will be reviewed on an annual basis by OSPI The Quality Education Council will be formed Four Working Groups will be created to develop details of the funding formulas, early learning employee compensation, and levies and levy equalization A K-12 Data Governance Group will be established The State Board of Education will continue to refine an accountability framework The Professional Educator standards Board (PESB) must adopt performance standards for effective teaching and modifications for educator certification By January 1, 2010 PESB shall adopt a definition of master teacher Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 32

33 Legislation with Immediate Fiscal Impact; Legislation with Delayed Impact Immediate Impact HB 1244 Sec. 222: Dept. of Health prohibited from implementing new school health safety rules HB 1852: Fees for background checks increase to $60.25 SB 5676: Provides funding for approved middle school CTE using current allocation model HB 1292: Allows SBE to allow 180 Day School Waiver No Immediate Impact SB 5487: delay the deadline for Reduction In Force notices HB 2363: Value of suspended COLA from 2010 and 2011 school years must be made up in school years SHB 2343 – The 2010 & 2011 school years suspension of inflationary increase for National Board Bonus must be made up in school years. 33 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 33

34 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 34

35 Eliminated Programs ProgramsAmount (Thousands) 1Anti-Bias Training($650) 2Classified instructional Assistant Training($200) 3Classified Staff Recognition Award($84) 4Math Teacher/Supply and Demand Study($142) 5Paraprofessional Training($1,096) 6Principal Assessment and Mentorship($976) 7Summer Accountability Institute($1,000) 8School Librarian Allocation($8,000) 9ELL Professional Development Pilot Project($1,000) Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 35

36 Eliminated Programs Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 36 ProgramsAmount (Thousands) 1Internet Safety($80) 2School Safety Plans($1,600) 3Emergency Transportation Allocation($25,000) 4Cispus($62) 5Civil Liberties Education($292) 6Civics($72) 7After School Math Program($400) 821 st Century After School Grants($3,000) 9ELL Professional Development Pilot Project($1,000) 10Math Helping Corps($3,528) 11K-3 Demonstration Projects($2,062) 12Robotics($300)

37 Partially Reduced Programs Programs Amount Reduced Amount Remaining 1COLA on National Board Bonus($4,621)$61,783 2Superintendent/ Principal Internship($350)$1,060 3Leadership Academy($400)$1,600 4Non-Violence Leadership Training($442)$100 5Youth Suicide Prevention($60)$140 6Washington Achievers Scholars($500)$1,500 7Dyslexia Pilot Program($298)$290 8World War II Oral History Project($100)$50 9Building Bridges Dropout Grant Program($3,650)$1,350 10LEAP Bilingual Pilot Program($150)$150 11Local Farms – Health Kids Act($600)$600 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 37

38 New Programs ProgramsAmount (Thousands) 1Conditional Loan for fees for National Board Bonus$3,000 2Student Achievement Gap (2SSB 5973)$102 3Project Citizen$50 4Military Compact (SSB5248)$89 5On-line Learning (SSB 5410)$1,400 6State Education System (ESHB 2261)$1,868 7Comprehensive Ed Data System (ESHB 2261)$2,520 8Assessment and Curriculum (ESSB 5414)$70 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 38

39 Available District Grants GrantBudget Sec. Amount (Thousands) 1STEM Professional Development513(7)$278 2Navigation (2)(c)(v)$6,438 3Running Start for the Trades501 (2)(c)(iv)$350 4CTE Grants513(23)$5,500 5Building Bridges501 (2)(c)(vi)$1,350 6Beginning Educator Support formerly TAP 513 (24)$4,696 7Readiness to Learn513 (17)$7,188 8Reading Corps513(16)$2,112 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 39

40 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 40

41 Swine Influenza: A Situation Update Currently 6 suspected cases in Washington. Very high likelihood these cases will test positive for H1N1 swine virus. Expect a least a few additional suspected cases to be announced each day. One school closureMadrona Elementary in Seattle. Additional school closures probable, under authority of local health officer. 41

42 Swine Influenza: A Situation Update Review continuity of operations plans Establish and maintain communication with local health officer Communicate with students, parents and staff Current district status Wash your hands/cover cough/stay home if sick Notification procedures if closure necessary 42

43 School Closure SPI may excuse 3 school days for school closure School is closed when district is open Up to 2 days per incident, no more than 3 WAC Districts that are closed must make-up 3 days before any make-up can be waived by SPI District must also extend school beyond June 14th No district can drop below a district-wide average of 1,000 instructional hours WAC If the Governor declares an emergency, make-up days can be waived; 1,000 instructional hour requirement is not waived Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 43

44 Enrollment Reporting If a school is closed on a reporting day, the district should include the school enrollment as an estimate When the school re-opens, revise to actual enrollment Students must be absent from school for 20 school days (e.g., not closure days) before dropped from enrollment If a district is closed on a reporting day, the reporting day becomes the first day of the month that the district re-opens Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 44

45 45 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets

46 Apportionment/Financial Services Updates… Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 46

47 District-by-District Analyses District-by-district analyses necessary b/c when cutting as deeply as this biennium, fairness comparisons became critical Any district-by-district analysis is wrong; it is an estimate, and designed to show relative impact Pivot tables---they are a best-guess, but 1,000s of variables will change outcome Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets 47

48 Preparing Your Budgets Budget Preparation Site: Following items are available on site. Operating Budget John Jenft Rate Sheet F203/203X Pivot tables 48 Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets


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