senate & house conference budget and legislation for k-12 education 2009-11 biennium 2009-10 and...

Senate & House Conference Budget and Legislation for K-12 Education2009-11 Biennium2009-10 and 2010-11 SY2009 Supplemental, 2008-09 SY

April 30, 2009 Office of the Superintendent of Public Instruction

Big Picture View of Budgets

2009-11 Biennium

Comment

1 Budget Deficit $9.3 Billion 18.5% deficit

2Addt’l Federal Resources (benefiting budget)

$3.0 Billion

$4.6 Billion total new

federal resources

3 Reduction to K-12$1.8 Billion (2

State Fiscal Years)

-2.6%, depending on

how calculated

Update 4/30/2009 2Preliminary OSPI Analysis of Conference Budgets

Formula or Statewide Allocations: Statement of Change

Action Comment

1 I-728$680.8 M reduction

(75%)

Of remaining $226.6 M, $128.6 M funded with

ARRA

2 Levy Equalization$67 M reduction (15%) (caution, see later slide)

Of remaining $425 M, $157 M funded with

ARRA

3 K-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

4Continue $25 M

in Pupil Transportation

No, funding eliminated $12.5 M per year

5Continue 1:58.75

CLSYes

Update 4/30/2009 3Preliminary OSPI Analysis of Conference Budgets

I-728 Reduction09-10 SY 10-11SY Biennial

Amount

1 Enrollment 980,667 986,381 -

2 Rate (old) $458.10 $464.50 -

3 Rate (new) $131.16 $99.32 -

4 Total Funding (old rate)

$449,243,553 $458,173,975 $907,417,527

5 Total Funding (new rate)

$128,624,284 $97,967,361 $226,591,645

6 Difference (row 5-row 4)

($320,619,269)

($360,206,614)

($680,825,883)

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

CompensationMaintenanc

eConference Difference

1 COLA $352,616 $0 ($352,616)

2 Health Care $127,900* $44,188 ($83,712)

3 Rate in 09-10 SY $774* $745 ($29)

4 Rate in 10-11 SY $831* $768 ($63)

5 Math/Science PD Eliminated

$43,991 $4,255Remainder of

2008-09 SY

($39,736)

6 LIDs Funded 2 1 (1)

7 Cost of LID $71,368 $35,684 ($35,684)

8 Primary National Board Bonus (SHB 2343)

$5,105* $5,090 ($15)

9 Challenging School Nat’l Board Bonus

$5000 $5000 $0


*Governor’s proposed Budget

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 2011-13 biennium.


Pensions Rates

Plan Maintenance Conference

PERS 8.00% 5.29%

TERS 10.95% 6.14%

SERS 8.28% 5.43%

DRS admin Fee

.16% .16%


Plan Maintenance Conference

TERS, Plan1 6.00% 6.00%

TERS, Plan2 4.93% 3.36%

SERS, Plan1 4.00% 3.14%

PERS, Plan1 6.00% 6.00%

Employer Contribution Rates

Employee Contribution Rates, by plan

Small adjustments may occur due to misc. legislation not yet signed.

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

8

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 lidUpdate 4/30/2009Preliminary OSPI Analysis of Conference Budgets 9

Three bills that passed only 1 chamber

SHB 1776 (As Passed House)

ESHB 1776, Engrossed Striker (As Passed Senate)

SB 6138 (As Passed Senate)

1Suspended 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

2 Mid-cycle levy opener Yes Yes

3Increase 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

2011

4Increase lid for levies

authorized prior to May 2009

No Yes

5Prorate or reduce levy

equalizationYes, determined in the

budget

6 OtherAfter-school grants

determined in budget

7 Status Passed HouseSenate Amended

House -passed Bill; House did not Concur

Passed Senate; Did not pass House

10Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets

Levy Equalization Funding Reduction

2009-10 SY 2010-11 SY Total

1 Maintenance Level$241,906,00

0$251,195,00

0$493,101,00

0

2Actual Funding (State and Federal) assuming Passage of ESHB 1776

214,034,000 211,381,000 425,415,000

3Reduction from Maintenance Level

(27,871,000) (39,814,000) (67,686,000)


What is next?

Levy Lid Lift Levy 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%


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 RIF’s;

few good options this year• Revenue is lower than projected; may be forced

to push $60 million LEA reduction elsewhere (possibly in K-12)


ARRA Funds4 Types of ARRA in Budget• Fiscal Stabilization• Title I• IDEA• Ed Technology

Other ARRA Education Programs

• Homeless/ McKinney-Vento• School Improvement


15

How will ARRA Fiscal Stabilization funds impact district in the 2008-09 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


Distribution of ARRA Funds

School Year

2008-09 2009-10 2010-11 Total

Fiscal Stabilization $452,500 $286,079 $0 $738,579

Title I 0 64,963 64,963 $129,926

IDEA 0 110,679 110,679 $221,358

Ed Technology 0 4,139 4,139 $8,278

Total $452,500 $465,860 $179,781 $1,098,141


$ in Thousands

Distribution of Fiscal Stabilization Funds

School Year 2008-09 2009-10 2010-11 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.


Why 2008-09 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 2009-10

•Need federal resources in state budget in FY 2009


How will system use ARRA funds in 2008-09 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) 20Update 4/30/2009Preliminary OSPI Analysis of Conference Budgets

How many staff, from where?


We will give you more specifics as soon as we can…

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


Reporting Requirements for 2008-09 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



24

Unprecedented Increase in IDEA•$221 million for 2009-10 and 2010-11•Could allocate some in 2008-09, but

difficult issues with safety net eligibility mid-cycle

•Begins in 2009-10, 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 09-10


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

•2007-08 data November 2008 “determination” drives flexibility for 2009-10 school year via MOE calculation in 2011

•122 districts “Meet Requirements”; 173 do notUpdate 4/30/2009Preliminary OSPI Analysis of Conference Budgets 26

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 2009-10 SY)---can’t do it

•OSPI eliminate carry forward cap•Districts pay careful attention to new

MOE calculation worksheetsUpdate 4/30/2009Preliminary OSPI Analysis of Conference Budgets 27

How to gain flexibility if one of 122?•OSPI considering allocating full grant in

2009-10, 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 2nd 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)


How to gain flexibility if one of 173?

•OSPI considering allocating full grant in 2009-10, not split between two years

•Working on other options to provide flexibility if one of 173

•Additional information will be forthcoming


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 2018.

• 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


31

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


Legislation with Immediate Fiscal Impact; Legislation with Delayed ImpactImmediate 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 2012-15 school years

• SHB 2343 – The 2010 & 2011 school years suspension of inflationary increase for National Board Bonus must be made up in 2012-15 school years.

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

33


34

Eliminated ProgramsPrograms Amount

(Thousands)

1 Anti-Bias Training ($650)

2 Classified instructional Assistant Training ($200)

3 Classified Staff Recognition Award ($84)

4 Math Teacher/Supply and Demand Study ($142)

5 Paraprofessional Training ($1,096)

6 Principal Assessment and Mentorship ($976)

7 Summer Accountability Institute ($1,000)

8 School Librarian Allocation ($8,000)

9 ELL Professional Development Pilot Project ($1,000)


Eliminated Programs


Programs Amount (Thousands)

1 Internet Safety ($80)

2 School Safety Plans ($1,600)

3 Emergency Transportation Allocation ($25,000)

4 Cispus ($62)

5 Civil Liberties Education ($292)

6 Civics ($72)

7 After School Math Program ($400)

8 21st Century After School Grants ($3,000)

9 ELL Professional Development Pilot Project

($1,000)

10 Math Helping Corps ($3,528)

11 K-3 Demonstration Projects ($2,062)

12 Robotics ($300)

Partially Reduced Programs

Programs AmountReduced

Amount Remaining

1 COLA on National Board Bonus ($4,621) $61,783

2 Superintendent/ Principal Internship ($350) $1,060

3 Leadership Academy ($400) $1,600

4 Non-Violence Leadership Training ($442) $100

5 Youth Suicide Prevention ($60) $140

6 Washington Achievers Scholars ($500) $1,500

7 Dyslexia Pilot Program ($298) $290

8 World War II Oral History Project ($100) $50

9 Building Bridges Dropout Grant Program

($3,650) $1,350

10 LEAP Bilingual Pilot Program ($150) $150

11 Local Farms – Health Kids Act ($600) $600


New Programs

Programs Amount(Thousands)

1 Conditional Loan for fees for National Board Bonus $3,000

2 Student Achievement Gap (2SSB 5973) $102

3 Project Citizen $50

4 Military Compact (SSB5248) $89

5 On-line Learning (SSB 5410) $1,400

6 State Education System (ESHB 2261) $1,868

7 Comprehensive Ed Data System (ESHB 2261) $2,520

8 Assessment and Curriculum (ESSB 5414) $70


Available District Grants

Grant Budget Sec.

Amount(Thousands

)

1 STEM Professional Development

513(7) $278

2 Navigation 101 501 (2)(c)(v) $6,438

3 Running Start for the Trades 501 (2)(c)(iv) $350

4 CTE Grants 513(23) $5,500

5 Building Bridges 501 (2)(c)(vi) $1,350

6 Beginning Educator Supportformerly TAP

513 (24) $4,696

7 Readiness to Learn 513 (17) $7,188

8 Reading Corps 513(16) $2,112



40

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 closure—Madrona Elementary in Seattle.

•Additional school closures probable, under authority of local health officer.

41

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

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 392-129-150

• 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 392-129-105

• If the Governor declares an emergency, make-up days can be waived; 1,000 instructional hour requirement is not waived


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


Apportionment/Financial Services•Updates…


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 1,000’s of variables will change outcome


Preparing Your Budgets

•Budget Preparation Site:http://www.k12.wa.us/SAFS/09budprp.asp

Following items are available on site.▫Operating Budget

▫John Jenft Rate Sheet

▫F203/203X

▫Pivot tables


senate & house conference budget and legislation for k-12 education 2009-11 biennium 2009-10 and...

Documents

budget slide

senate house conference

increase lid

levy base

higher lid update

later slide

rate new

total funding new rate