1. ORGANIZATIONS Education HEGN Board of Directors Policy Comm. C4/PAC (Political) Executive Committee Appoints a Majority of CCT/SCI Boards Board of CCT SCI Board of Directors C3 C3 Directors Executive Committee (Scholarships) (Vouchers) 1

2. Our Vision for a Successful K-12 Education System Included: Quality, world-class educational opportunities available to all Indiana students, whether in the public or the private school systems. A vibrant, diverse market of school models and programs designed to provide more choices to parents and more competition to drive improvement. New leadership in Indiana school policy to demand excellence, drive transformation, and put the priority on achievement instead of protecting the status quo. 2

3. Five-Year Strategy (as defined in 2007) 2008Elect an education-reform majority to the Indiana House, Re-elect Governor Daniels, and elect a reform-minded Superintendent of Public Instruction. 2009Enact significant education reform legislation and other pro-growth legislation during the 2009 session of the Indiana General Assembly. 2010Need to Elect a larger reform-majority to the Indiana House, ahead of redistricting. 2011Address redistricting, expansion of school choice legislation, enactment of teacher union collective bargaining reforms, and other pro-growth legislative reforms during the 2011 session. 2012Elect a new Governor strongly supportive of educational reforms and additional teacher union collective bargaining reforms. 3

4. The Problem THE INDIANA STATE TEACHERS ASSOCIATION (ISTA) The most powerful political force at the Statehouse and at the ballot box. Has been the biggest spender by far. Had real veto power on education policy and reform efforts in the state as well as a disproportionate impact on state fiscal, budget and tax policy. 4

5. The Plan Raise up to $1,200,000 to bring us to campaign funding parity with the ISTA-NEA teachers union in the 2010 elections. Support a select number of key candidates in target districts in 2010. Execute aggressive, targeted campaign tactics and financial support in key races. Highly targeted, research driven and professional decision making. Investment funding for the new PAC from corporations, partnerships, individuals and PACs. 5

6. Fundraising Impact of HEGN Organizations (January 2010 – June 2011 ) HEG PAC:$1.2 million for 2010 elections SCI:$250K for operational efforts $700K for voucher implementation CCT:$700K for FY2010 SCIN:$300K for efforts in 2011 session Aiming Higher:$1.2 million in TV ad campaign Total Impact:Approximately $4.4 million 6

7. Critical education reform legislation was passed in the 2011 Legislative session driven by the HEG Network that included: 1. Senate Bill 1, Teacher Evaluations, Teacher Effectiveness 2.Senate Bill 575, Collective Bargaining 3.House Bill 1002, Charter Schools 4.House Bill 1003, Choice Scholarships (Vouchers) 7

8. Legislative highlights: 1.Reformed collective bargaining limiting it only to wages and benefits. 2.Ended the practice of laying off teachers with the least seniority first regardless of their competence. 3.Created a teacher and principal evaluation system based on student learning and established a system of performance pay. 4.Established a systems of grading schools A-F. 5.Fully funded full day kindergarten. 8

9. 6.Students who choose to graduate early use the money that would have been spent on their senior year on higher education. 7.Established a new $1,000 tax deduction for families with children already enrolled in private schools. 8.Expanded the states’ online virtual school program. 9.Dramatically expanded the charter school law, increasing the number of authorizers. 10.Enacted the nation’s largest statewide voucher program that by the third year will serve every family earning up to 150% of the federal free and reduced price lunch program. 11.Eliminated deghoster. 9

10. HEGN Vision Continue support of additional education reform legislation. Assist with the execution of all new legislation. Address the “education delivery system” as we know it today. 10