House Budget Chair Icet had his House Joint Resolution 23 heard in his committee Wednesday morning.
Upon voter approval, this proposed constitutional amendment prohibits appropriations in any fiscal year from exceeding the total state general revenue appropriations from the previous year by more than the appropriations growth limit. The appropriations growth limit will be the greater of zero or the sum of the annual rate of inflation and the annual Missouri population growth.
In any fiscal year when the net general revenue collections are in excess of 1% of the authorized net general revenue appropriations allowed, 67% of the excess is to be transferred to the Cash Operating Reserve Fund and 33% to the Budget Reserve Fund, which are created by the bill. Any revenue in excess of the specified limits of the funds will be used to permanently reduce the income tax rate rounded to the nearest .25%.
Total state general revenue appropriations may exceed the appropriations limit only if the Governor declares an emergency and the General Assembly, by a two-thirds majority, approves appropriation bills to meet the emergency. The funds appropriated to meet the emergency will not increase the appropriation limit for the succeeding fiscal year.
New or increased tax revenues or fees receiving voter approval will be exempt from the calculation of the appropriations growth limit for the year in which they are passed.
Sixty-seven percent of the balance in the Budget Reserve Fund on July 1 of each year is to be transferred to the Cash Operating Reserve Fund. If the balance in the Cash Operating Reserve Fund exceeds 5% of the net general revenue collected in the previous fiscal year, the excess amount will be transferred to the General Revenue Fund.
In any fiscal year in which the Governor reduces expenditures below amounts appropriated, the Governor may request an emergency appropriation from the Budget Reserve Fund. If the request is approved by the General Assembly, funds may be restored to any expenditure authorized by existing appropriations. If the balance in the Budget Reserve Fund at the end of a fiscal year exceeds 7% of the net general revenue collections for the previous fiscal year, the excess funds will be transferred to the General Revenue Fund. If the balance is less than 7%, the difference will be transferred from the General Revenue Fund within five years.
Funds appropriated from the Budget Reserve Fund must be paid back within five years of the original transfer date.
Wednesday, February 25, 2009
Federal Stimulus Package's Impact on K-12 Funding
On February 17, President Obama signed in to law the largest funding package in our nation’s history, the federal “Recovery and Reinvestment Act of 2009.” This act contains approximately $787 billion in new federal spending or tax cuts with up to $100 billion potentially going to public education programs. MSBA will be providing a series of video conferences covering the federal stimulus package and its impact on Missouri’s schools in the coming days. For dates and registration information, please visit MSBA’s website at www.msbanet.org.
Missouri’s federal education funding will increase by an estimated $447 Million over the next 2 years. Click here for an estimation of the funding your district may receive, as calculated by Congressional Research Service: http://edlabor.house.gov/documents/111/pdf/publications/MISSOURI-20090213-HR1-LEAs.pdf
Missouri’s schools are certainly in need of additional federal funding. However, before making decisions on how funds will be used, districts need to seriously consider the following:
This massive increase in federal education funding is part of an exceptional stimulus program that is temporary. Although MSBA continues to lobby for increased funding of education, school districts should expect a decrease of federal funding after the 2010-11 school year.
The rules governing expenditure of Title I and Special Education funds still apply. The funds are distributed to districts through these existing federal programs. It appears that Congress did not waive the legal requirement that federal funds must supplement, not supplant state and local efforts. Therefore, most of the funding can only be used on new or expanded services to students, not to assist the district in costs associated with existing services offered such as salaries for existing special education personnel.
State funding for K-12 after 2011 is not projected to significantly increase. In fact, some experts are predicting a decline in state funding due to the continuing economic crisis. Therefore, in 2011 when federal funding likely decreases, any new programs districts create will need to end or the district will need to come up with local funds to maintain the programs (which could include increasing taxes or eliminating other programs.)
MSBA does not want to discourage districts from using these funds. However, school officials should consider one-time expenditures that will produce future and sustainable benefits such as equipment, technology or professional development. Alternatively, districts should take time to plan how new programs will be sustained after the 2011 school year.
Following is an overview prepared by the Education Commission of the States (ECS) of the federal stimulus bill’s impact on education funding:
This historic increase in education spending, and the changes that it will bring with it, may be difficult for some policymakers and their staffs to “get their heads around”. For this reason ECS has prepared this preliminary summary to help explain:
How much new education funding states can expect to receive;
How the funds will be distributed and how they can be spent;
How policymakers can explain this new funding to their constituents;
Things to think about.
1. How Much Will States Receive?
States will receive the following amounts of new federal funding, on top of current allocations, for education programs. Items in italics indicate newly created federal programs:
DistributedImmediately
Distributed OnJuly 1, 2010
Early Learning
Early Head Start
$ .50 billion
$ .50 billion
Head Start
$ .55 billion
$ .55 billion
K-12
Title I – Formula Grants
$ 5.00 billion
$ 5.00 billion
Title I – School Improvement Grants
$ 1.50 billion
$ 1.50 billion
Title I – Impact Aid
$ .10 billion
Title II – Education Technology State Grants
$ .33 billion
$ .33 billion
McKinney-Vento Homeless Assistance Act
$ .03 billion
$ .03 billion
Title V – Teacher Incentive Fund
$ .20 billion
IDEA – Special Education
$ 6.10 billion
$ 6.10 billion
Vocational Rehabilitation State Grants
$ .54 billion
Improved Data Collection
$ .25 billion
New Funding
State Incentive Grants
$ 5.00 billion
Innovation Fund
$ 0.65 billion
State Fiscal Stabilization Funds – Education Funding
$40.10 billion
State Fiscal Stabilization Funds – High Priority Needs
$ 8.20 billion
Higher Education
Increasing Pell Grants
$15.60 billion
Institute of Education Sciences
$ .25 billion
Work Study
$ .20 billion
Student Aid Administration
$ .10 billion
Higher Education Account
$ .10 billion
Total funds directed toward public education
$79.97 billion
$19.98 billion
The estimated grant to Missouri for education programs under the conference agreement to the federal stimulus bill is as follows (the estimate was prepared by the Congressional Research Service):
ESEA, Title I-A Grants to LEAs (Targeted and EFIG): $154,338,000
ESEA, Title I-A (School Improvement): $47,866,000
ESEA, Title II-D (Education Technology): $10,168,000
McKinney-Vento (Homeless Assistance): $1,388,000
IDEA, Part B (sec. 611): $227,175,000
IDEA, Part C: $6,422,000
State Fiscal Stabilization Fund: 942,895,000
*Note: the projected funding for Missouri is an estimate and, as such, is subject to change.
2. What are the Specifics of the Funding?
Below is a description of the funding systems and mandates for each of the major education programs in the Recovery and Reinvestment Act. Unless otherwise noted, distribution systems and mandates for pre-existing federal programs will remain the same.
State Fiscal Stabilization Funds – Education Funding
61% of these funds will be distributed based on a state’s relative population of 5 to 24 year olds and 39% of these funds will be distributed based on a state’s relative total population
Each state must first use these funds to restore state funding for K-12 education to its FY 2007-2008 level. States must then restore higher education funding to its FY 2007-2008 level.
If there is any remaining funding after restoring funds to their FY 2007-2008 levels, it must be distributed to school districts based on their share of Title I funding
For states to qualify for this funding, they must maintain support for K-12 and higher education at least at the level provided in FY 2005-2006
State receiving these funds are required to annually report on the following:
How these funds were used
The number of jobs saved or created by this legislation
Tax increases averted by this legislation
The state’s progress in reducing inequities in the distribution of highly –qualified teachers
The state’s progress on developing a longitudinal data system
The progress in implementing valid assessments
Actions taken by the state to limit higher education tuition and fees
Enrollment of in-state students at public higher education institutions
State Fiscal Stabilization Funds – High Priority Needs61% of these funds will be distributed based on a state’s relative population of 5 to 24 year olds, and 39% of these funds will be distributed based on a state’s relative total population States could use these funds for any state program that is deemed to be a “High Priority Need” – which could include early learning, K-12 or higher education
State Incentive GrantsThe U.S. Secretary of Education will be required to establish guidelines for distributing these grants based on whatever states have made significant progress in achieving equity in teacher distribution, establishing longitudinal data systems and enhancing assessments for English language learners and students with disabilities If a state receives funding under this program, it must distribute 50% of the funds directly to school districts based on Title I allocations.
Innovation FundThese awards will be designed to recognize school districts, or partnerships between nonprofit organizations and state educational agencies, school districts, or one or more schools that have made achievement gains. The final criteria for these awards will be designated by the U.S. Secretary of EducationTitle I School districts that receive funding from this program are required to report to the state educational agency a school-by-school listing of per pupil expenditures, states will then report this information to the U.S. Department of Education The U.S. Department of Education is asked to encourage states to use 40% of this funding for middle and high schools Institute of Education Sciences These funds are to be used for statewide data systems that include postsecondary and workforce information. $5 million from this grant may be used to hire individuals to be state data coordinators and for awards to public or private agencies to improve data coordination.
3. How Policymakers can explain this new funding to their Constituents
The Recovery and Reinvestment Act of 2009 is the single most expensive piece of legislation that the federal government has ever passed. This act moved from an idea to a signed piece of legislation within weeks. Because of its size and the speed with which it passed, many of your constituents may be wondering what it all means. To assist you ECS has assembled some communication tools:
Increased Federal Funds: This bill will provide up to $80 billion in additional federal funds for K-12 education. If these funds are expended by states evenly over the next two years, this would represent an 80% increase in total federal K-12 spending over 2008-09.
Increased Federal Role: This increase in K-12 spending will greatly increase the federal government’s role in education funding. Prior to this bill the federal government provided on average approximately 9% of all education spending. Assuming these funds will be evenly expended by states over a two-year period, this bill will increase federal spending on K-12 education to between 14.8% and 15.5% of total spending.
Funding Per Student: The additional K-12 operational funding will translate into an average additional $870.60 per student nationally per year for the next two years.
Education Jobs Created/Saved: Using current education spending patterns we can estimate that this act will create or save 267,355 teaching positions and an additional 40,000 instructional staff this year.
4. Issues and Ideas about this New Funding Package
States will be receiving a great deal of funding in a short period of time, and there are several points that you may want to take into consideration:
The temporary nature of this funding: This funding is designed to provide financial relief for a two-year period, so states should not count on receiving these additional funds beyond the 2010-2011 school year. States should be reluctant to use any of this federal funding for programs or projects that will last beyond this two-year period.
Early planning could result in greater payoffs: Policymakers in every state want to ensure that this increase in spending turns into increased student performance and the best way to do this is by spending some time in planning and preparing for these new allocations.
Filling holes or creating new programs: The fiscal conditions in some states are so bad that this additional federal funding will need to be used to make up for, or attempt to make up for, state budget cuts. In other states where the recession has not been as severe, there will be additional education funding available to use for new and innovative programs. It will be important to let your constituents know early on if you will have money for additional programs or not – you don’t want them coming up with wish lists only to have their hopes dashed.
Education Commission of the States • 700 Broadway, Suite 810 • Denver, CO 80203-3442 • 303.299.3600 • fax 303.296.8332 • www.ecs.org
© 2009 by the Education Commission of the States (ECS). All rights reserved. ECS is the only nationwide nonpartisan interstate compact devoted to education.
Missouri’s federal education funding will increase by an estimated $447 Million over the next 2 years. Click here for an estimation of the funding your district may receive, as calculated by Congressional Research Service: http://edlabor.house.gov/documents/111/pdf/publications/MISSOURI-20090213-HR1-LEAs.pdf
Missouri’s schools are certainly in need of additional federal funding. However, before making decisions on how funds will be used, districts need to seriously consider the following:
This massive increase in federal education funding is part of an exceptional stimulus program that is temporary. Although MSBA continues to lobby for increased funding of education, school districts should expect a decrease of federal funding after the 2010-11 school year.
The rules governing expenditure of Title I and Special Education funds still apply. The funds are distributed to districts through these existing federal programs. It appears that Congress did not waive the legal requirement that federal funds must supplement, not supplant state and local efforts. Therefore, most of the funding can only be used on new or expanded services to students, not to assist the district in costs associated with existing services offered such as salaries for existing special education personnel.
State funding for K-12 after 2011 is not projected to significantly increase. In fact, some experts are predicting a decline in state funding due to the continuing economic crisis. Therefore, in 2011 when federal funding likely decreases, any new programs districts create will need to end or the district will need to come up with local funds to maintain the programs (which could include increasing taxes or eliminating other programs.)
MSBA does not want to discourage districts from using these funds. However, school officials should consider one-time expenditures that will produce future and sustainable benefits such as equipment, technology or professional development. Alternatively, districts should take time to plan how new programs will be sustained after the 2011 school year.
Following is an overview prepared by the Education Commission of the States (ECS) of the federal stimulus bill’s impact on education funding:
This historic increase in education spending, and the changes that it will bring with it, may be difficult for some policymakers and their staffs to “get their heads around”. For this reason ECS has prepared this preliminary summary to help explain:
How much new education funding states can expect to receive;
How the funds will be distributed and how they can be spent;
How policymakers can explain this new funding to their constituents;
Things to think about.
1. How Much Will States Receive?
States will receive the following amounts of new federal funding, on top of current allocations, for education programs. Items in italics indicate newly created federal programs:
DistributedImmediately
Distributed OnJuly 1, 2010
Early Learning
Early Head Start
$ .50 billion
$ .50 billion
Head Start
$ .55 billion
$ .55 billion
K-12
Title I – Formula Grants
$ 5.00 billion
$ 5.00 billion
Title I – School Improvement Grants
$ 1.50 billion
$ 1.50 billion
Title I – Impact Aid
$ .10 billion
Title II – Education Technology State Grants
$ .33 billion
$ .33 billion
McKinney-Vento Homeless Assistance Act
$ .03 billion
$ .03 billion
Title V – Teacher Incentive Fund
$ .20 billion
IDEA – Special Education
$ 6.10 billion
$ 6.10 billion
Vocational Rehabilitation State Grants
$ .54 billion
Improved Data Collection
$ .25 billion
New Funding
State Incentive Grants
$ 5.00 billion
Innovation Fund
$ 0.65 billion
State Fiscal Stabilization Funds – Education Funding
$40.10 billion
State Fiscal Stabilization Funds – High Priority Needs
$ 8.20 billion
Higher Education
Increasing Pell Grants
$15.60 billion
Institute of Education Sciences
$ .25 billion
Work Study
$ .20 billion
Student Aid Administration
$ .10 billion
Higher Education Account
$ .10 billion
Total funds directed toward public education
$79.97 billion
$19.98 billion
The estimated grant to Missouri for education programs under the conference agreement to the federal stimulus bill is as follows (the estimate was prepared by the Congressional Research Service):
ESEA, Title I-A Grants to LEAs (Targeted and EFIG): $154,338,000
ESEA, Title I-A (School Improvement): $47,866,000
ESEA, Title II-D (Education Technology): $10,168,000
McKinney-Vento (Homeless Assistance): $1,388,000
IDEA, Part B (sec. 611): $227,175,000
IDEA, Part C: $6,422,000
State Fiscal Stabilization Fund: 942,895,000
*Note: the projected funding for Missouri is an estimate and, as such, is subject to change.
2. What are the Specifics of the Funding?
Below is a description of the funding systems and mandates for each of the major education programs in the Recovery and Reinvestment Act. Unless otherwise noted, distribution systems and mandates for pre-existing federal programs will remain the same.
State Fiscal Stabilization Funds – Education Funding
61% of these funds will be distributed based on a state’s relative population of 5 to 24 year olds and 39% of these funds will be distributed based on a state’s relative total population
Each state must first use these funds to restore state funding for K-12 education to its FY 2007-2008 level. States must then restore higher education funding to its FY 2007-2008 level.
If there is any remaining funding after restoring funds to their FY 2007-2008 levels, it must be distributed to school districts based on their share of Title I funding
For states to qualify for this funding, they must maintain support for K-12 and higher education at least at the level provided in FY 2005-2006
State receiving these funds are required to annually report on the following:
How these funds were used
The number of jobs saved or created by this legislation
Tax increases averted by this legislation
The state’s progress in reducing inequities in the distribution of highly –qualified teachers
The state’s progress on developing a longitudinal data system
The progress in implementing valid assessments
Actions taken by the state to limit higher education tuition and fees
Enrollment of in-state students at public higher education institutions
State Fiscal Stabilization Funds – High Priority Needs61% of these funds will be distributed based on a state’s relative population of 5 to 24 year olds, and 39% of these funds will be distributed based on a state’s relative total population States could use these funds for any state program that is deemed to be a “High Priority Need” – which could include early learning, K-12 or higher education
State Incentive GrantsThe U.S. Secretary of Education will be required to establish guidelines for distributing these grants based on whatever states have made significant progress in achieving equity in teacher distribution, establishing longitudinal data systems and enhancing assessments for English language learners and students with disabilities If a state receives funding under this program, it must distribute 50% of the funds directly to school districts based on Title I allocations.
Innovation FundThese awards will be designed to recognize school districts, or partnerships between nonprofit organizations and state educational agencies, school districts, or one or more schools that have made achievement gains. The final criteria for these awards will be designated by the U.S. Secretary of EducationTitle I School districts that receive funding from this program are required to report to the state educational agency a school-by-school listing of per pupil expenditures, states will then report this information to the U.S. Department of Education The U.S. Department of Education is asked to encourage states to use 40% of this funding for middle and high schools Institute of Education Sciences These funds are to be used for statewide data systems that include postsecondary and workforce information. $5 million from this grant may be used to hire individuals to be state data coordinators and for awards to public or private agencies to improve data coordination.
3. How Policymakers can explain this new funding to their Constituents
The Recovery and Reinvestment Act of 2009 is the single most expensive piece of legislation that the federal government has ever passed. This act moved from an idea to a signed piece of legislation within weeks. Because of its size and the speed with which it passed, many of your constituents may be wondering what it all means. To assist you ECS has assembled some communication tools:
Increased Federal Funds: This bill will provide up to $80 billion in additional federal funds for K-12 education. If these funds are expended by states evenly over the next two years, this would represent an 80% increase in total federal K-12 spending over 2008-09.
Increased Federal Role: This increase in K-12 spending will greatly increase the federal government’s role in education funding. Prior to this bill the federal government provided on average approximately 9% of all education spending. Assuming these funds will be evenly expended by states over a two-year period, this bill will increase federal spending on K-12 education to between 14.8% and 15.5% of total spending.
Funding Per Student: The additional K-12 operational funding will translate into an average additional $870.60 per student nationally per year for the next two years.
Education Jobs Created/Saved: Using current education spending patterns we can estimate that this act will create or save 267,355 teaching positions and an additional 40,000 instructional staff this year.
4. Issues and Ideas about this New Funding Package
States will be receiving a great deal of funding in a short period of time, and there are several points that you may want to take into consideration:
The temporary nature of this funding: This funding is designed to provide financial relief for a two-year period, so states should not count on receiving these additional funds beyond the 2010-2011 school year. States should be reluctant to use any of this federal funding for programs or projects that will last beyond this two-year period.
Early planning could result in greater payoffs: Policymakers in every state want to ensure that this increase in spending turns into increased student performance and the best way to do this is by spending some time in planning and preparing for these new allocations.
Filling holes or creating new programs: The fiscal conditions in some states are so bad that this additional federal funding will need to be used to make up for, or attempt to make up for, state budget cuts. In other states where the recession has not been as severe, there will be additional education funding available to use for new and innovative programs. It will be important to let your constituents know early on if you will have money for additional programs or not – you don’t want them coming up with wish lists only to have their hopes dashed.
Education Commission of the States • 700 Broadway, Suite 810 • Denver, CO 80203-3442 • 303.299.3600 • fax 303.296.8332 • www.ecs.org
© 2009 by the Education Commission of the States (ECS). All rights reserved. ECS is the only nationwide nonpartisan interstate compact devoted to education.
Wednesday, February 11, 2009
Two House Bills Passed Out Of Committee
A bill sponsored by the House Education Committee Chair Maynard Wallace, and another sponsored by Representative Gayle Kingery are the first two education related bills to pass of out committee and recommended for a floor discussion. HB 289 sponsored by Maynard Wallace makes changes to the safe school act and gives school district employees protection from lawsuits when they follow district policies dealing with unruly students. This bill is supported by MSBA. HB 242 is the other bill approved by the committee and it allows schools to go to a four- day school week, primarily to save money in transportation and other related school costs. Representative Sara Lampe voted "no" on this bill indicated that the four- day school week was not based on what was best for student learning but for monetary reasons only.
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