Call to Action from School Administrators Coalition

HOUSE BUDGET COMMITTEE COMPLETES WORK ON K-12 BUDGET
YOUR ACTION NEEDED

The House Budget Committee completed work this week on HB 2 which is the appropriations bill for elementary and secondary education. The bill is expected to go to the House floor for debate next week. School administrators need to be aware of several issues related to the budget as included in HB 2 and should contact their state representative(s) listed at the bottom of this bulletin to express concerns.
1. HB 2 fully funds the phase-in of the formula for 2009-2010. This assumes a state adequacy target of $6117 and 58% of the funding coming from the new formula and 42% from the old formula. However, it is important to note that over $400 million of federal stabilization money is being used to support the formula. It appears that the legislature is using $400 million in federal stabilization funds to supplant the funding formula in order to provide general revenue funds that can be used for one-time spending programs. When the stimulus money disappears in two years, the general revenue must return to support the formula. Administrators are working with legislative leaders to discuss the possibility of using the one-time funds for school modernization and repair by creating a distribution process that will make these funds available to school districts as quickly as possible with the least amount of red tape.
2. The transportation categorical funding is increased about $14.5 million. Again, about $20 million in federal stimulus funding is being used to support this appropriation. There is a significant concern about what may happen to this funding in two years. This additional funding should keep the transportation reimbursement rate from falling lower than current levels; however, the uncertainty of fuel prices will play a significant role in the 2009-2010 transportation reimbursement rate.
3. The Critical Needs fund is eliminated in HB 2. This is the fund that supports DESE professional development programs including the Regional Professional Development Centers (RPDCs). If these funds are not restored, it likely means the elimination of the RPDCs and may result in a substantial fine by the federal government due to the failure to demonstrate a maintenance of effort for assistance to struggling schools. Please ask your legislator to restore this funding to at least the FY09 levels of $15 million. With over $500 million in stimulus funds for education from the federal government, it appears that ample funds exist at least for the next two years to support the Critical Needs Fund. Administrators should be very vocal about the legislature turning its back on the progress and improvements schools have made through professional development activities in the past 10 years.
4. The budget includes about $24 million in additional funding for Early Childhood Special Education. The source of this funding appears to be Proposition A funds approved by voters in November.
5. HB 2 provides the same level of funding for Career Ladder for FY10 as was included in the FY09 appropriation. One area of concern is that this categorical is being funded by Federal Stimulus funds. Is this an indication that the general assembly only intends to fund career ladder for the next two years? This is a question that legislators need to answer.
6. HB 2 eliminates funding for the Scholar’s Academy, Fine Arts Academy, and Safe Schools grants. There is also a 10% reduction in funding for Parents as Teachers. Your thoughts on these programs need to be communicated to your elected officials.
7. HB 2 reduces funding for virtual schools by $1 million as proposed by the Governor and maintains funding for Career Education at FY09 levels.
8. HB 2 moves funding for the A+ Schools program from DESE to Higher Education. This poses a significant concern about the future of the A+ program.
The bottom line is that there are some significant issues in HB 2 that impact public school funding in FY10 and beyond. It is extremely important that school administrators contact their representative(s) listed to below to express concerns about funding for K-12 education programs