1. K-12 Funding and Policy Trends

2. Copyright 2015 Market Data Retrieval Federal Funding Continuing Resolution (CR) in place through December 11 Conservatives want to limit federal role FY 2016: Congress has proposed between $1.7 - $2.8 billion in cuts for ED President has promised a veto of sequester level appropriations Without a change to the sequester provisions, education funding outlook is flat for the foreseeable future 2

3. Copyright 2015 Market Data Retrieval FY 2016 Federal Budget 3 FY 2015 Appropriation FY 2016 Request House BillSenate Bill Title I$14,410$15,410$14,410$14,560 School Improvement Grants$506$556$0$450 Striving Readers$160 $0 IDEA State Grants$12,290$12,580$12,792$12,415 English Language Acquisition$737$773$737$712 Safe & Drug-Free Schools$223$200$0$83 Improving Teacher Quality (Title II)$2,350 $1,681$2,246 Teacher Incentive Fund$230$350$0$225 Math & Science Partnerships$153$203$0$141 State Assessments$378$403$300$350 Statewide Longitudinal Data Systems$35$70$35$34 Preschool Development Grants$250$750$0 Investing in Education$120$300$0 Promise Neighborhoods$57$150$57$37 21st Century Learning Centers$1,152 $1,135 Career & Technical Education$1,125$1,327$1,121$1,122 Preschool for All$0$1,300$0 Ed Tech State Grants$0$200$0 High School Redesign$0$125$0 Source: Department of Education Budget Tables, http://www2.ed.gov/about/overview/budget/tables.html?src=cthttp://www2.ed.gov/about/overview/budget/tables.html?src=ct

4. Copyright 2015 Market Data Retrieval State Funding States supply roughly 45% of all K-12 funding FY 15: state K-12 spending increased by $11.1 billion, up from $8.8 billion Projected CAGR of between 2% to 2.5% for revenues and expenditures over next five years Each state’s fiscal position and policies are unique 4

5. Copyright 2015 Market Data Retrieval E-Rate Modernization E-Rate cap increased to $3.9 billion $1 billion in annual support targeted for internal connections, at rate of $150/student over five years Applicants that pay the full cost of E-rate supported services can receive direct reimbursement from USAC Increased flexibility Increased transparency 5

6. Copyright 2015 Market Data Retrieval Evolving Funding Models Course choice Competency-based Some states moving away from categorical funding to give districts more flexibility Non-traditional fund raising for both schools and companies 6

7. Copyright 2015 Market Data Retrieval ESEA Reauthorization Needs to happen this year; attention will get diverted in election year Rep Kline not running for re-election New House Leader after October 31 Can Congress pass a bill the President will sign? If reauthorized, what happened next? 7

8. Copyright 2015 Market Data Retrieval Student Data Privacy Congress working on rewrite of FERPA Multiple pieces of privacy legislation in many states, many modeled on California’s SOPIPA Issues of most consequence to vendors Data retention and destruction Use of data to improve products Parent access and correction Definition of PII 8

9. Copyright 2015 Market Data Retrieval Instructional Materials Evidence that IM spending is increasing States are giving districts more flexibility with respect to adoption Continued sense that current IM don’t measure up on alignment to standards Increased interest in OER, district-created resources Discovery remains a problem - metatagging 9

10. Copyright 2015 Market Data Retrieval 10 Kathleen Brantley, Director, EdNET Insight, MDR kbrantley@dnb.com kbrantley@dnb.com Rita Oates, Ph.D., President, Oates Associates, ritaoates@aol.comritaoates@aol.com Mark Schneiderman, VP Government Affairs, School Messenger mschneiderman@schoolmessenger.com mschneiderman@schoolmessenger.com