Federal Education Update

1. Federal Education Update Noelle Ellerson FASFEPA September 14, 2011

2. Overview • Climates: Funding, Political, Federal and State • ESEA • Reauthorization • Regulatory Relief (NOT waivers!) • Title I Formula Fairness • Budget and Appropriations • FY11, FY12 • Debt Ceiling Supercommittee • Balanced Budget Amendment • President’s Job Package • IDEA Full Funding • Rural Education • Education Technology • Child Nutrition • Choice: Charters and Vouchers • Advocacy and Grassroots

3. Climates • Funding • Continued recession at state and local level • Cessation of ARRA/EduJobs • Actual and anticipated cuts from FY11 and FY12 • Anticipated cuts from Debt Ceiling Commission • Political • Partisan. Middle ground moderates are gone. • Gearing up to an election year • Federal • Gridlock between House and Senate • State • State legislatures were heavily impacted by last year’s elections • Strong push on education issues with grassroots implications

4. ESEA Reauthorization • It’s the gift that keeps on giving; unlikely before 2013 • Who’s Who • Administration and Congress • Big 8: Sens. Harkin, Enzi, Alexander, and Bingaman; Reps. Kline, Miller, Kildee, and Hunter • Previous Architects of NCLB • Education Organizations • AASA, NSBA, NAESP, NASSP, NEA, AFT, CCSSO, etc… • Foundations and Think Tanks • EdTrust, Gates, Walton,

5. ESEA Reauthorization: Key Issues • Mandated Standardization v. Focus on Poverty • Formula v. Competitive • Punitive Accountability v. Incentivizing Accountability • Assessment: One-Time v. Growth • Overly Prescriptive v. Flexibile • Charters: More v. Less • Assessing Special Learners • Early Childhood Education • Health/Wellness/Total Child • Turnaround Models/School Improvement

6. ESEA Reauthorization • House has taken a piecemeal approach • Begs the question, ‘What is the piece? What is the meal?’ • Has moved three pieces to date, anticipates two more by the end of the calendar year • Remaining two pieces expected to be related to teacher quality and accountability/assessment • Senate is (allegedly) taking a comprehensive approach • Wanted to move a comprehensive bill by Easter (2011, that is) • Have yet to introduce any legislation • Question bipartisan nature of efforts • Raises concerns over how comprehensive the bill will be, and if it is skeletal, concerns about the accompanying amendments • Activity this week?

7. ESEA Reauthorization H.R. 1891 "Setting New Priorities in Education Spending Act" Full Committee Wednesday, May 25, 2011Ordered favorably reported, as amended, to the House by a vote of 23-16 H.R. 2218, "Empowering Parents through Quality Charter Schools Act"Full CommitteeWednesday, June 22, 2011Ordered favorably reported, as amended, to the House by a vote of 34-5. Voted out of full House 9/13 HR 2445 “State and Local Funding Flexibility Act” Wednesday July 14, 2011 Ordered favorable reported, as amended, to the House by a vote of 23-17

8. Waivers v. Regulatory Relief • 80% of LEAs labeled as failing for 2011-12 school year • AASA/NSBA call to action for targeted, specific regulatory relief • More than 1,000 signatures from all 50 states • Secretary Duncan interest in quid-pro-quo approach to providing relief through conditional waivers

9. Waivers v. Regulatory Relief • Tentative Details on Duncan’s ‘Relief’ Proposal • States would have to sign up for all three waivers….no picking and choosing • To receive waiver for 2014 deadline for 100% proficiency, states have to adopt CCR standards (think Common Core) • To receive waiver to freeze AYP/AMO sanctions, states have to propose their own differentiated accountability systems incorporating growth and establishing new performance targets. Would do away with SES, choice, and Title I set aside • To receive waiver for HQ teacher requirements and to get funding flexibility, states would have to adopt an evaluation system for teachers and principals based on growth • Remaining questions: With what resources? With what political capital? What role for SIG turn around models?

10. Waivers v. Regulatory Relief • LEAs should not have to adopt policy priorities (think Race to the Top or turnaround models), especially unfunded priorities, to get relief from a broken law • Regulations got is in to the mess, regulations (well, reversing them) can get us out • If the policies the administration wants were popular with policy makers or practitioners, they would be more widely adopted and implemented already. • Using waivers to force these priorities is not good policy

11. Waivers vs. Regulatory Relief • Idaho and Montana have received relief without adopting administration priorities • Exercise statute provision that authorizes modification of state accountability workbook • NCLB Waiver Watch: www.cep-dc.org

12. Waivers vs. Regulatory Relief • Urge your Representatives and Senators to, in the absence of complete reauthorization, support targeted regulatory relief. • Suggested options? Suspension of sanctions. This would freeze AMO/AYP at 2010-11 school year levels. • This maintains accountability, is not a blanket waiver, and provides LEAs with the relief they need while we wait for Congress to pass a bill 4 years past-due.

13. Title I Formula Fairness • www.formulafairness.com • Led by Rural School and Community Trust • Current statute uses two weighting brackets to determine an LEA’s Title I allocation • Unintended consequence is that some larger, less-poor schools can end up receiving more Title I dollars per-child than smaller, poorer districts

14. Title I Formula Fairness • All Children are Equal (ACE) Act (HR 2485) provides legislative fix • Turns down the volume on number weighting to ensure that Title I dollars are distributed to concentrations of poverty • 11 original co-sponsors: Representatives Glenn Thompson (R-PA), Ruben Hinojosa (D – TX), G.K. Butterfield (D-NC), Louise Slaughter (D-NY), Dan Boren (D-OK), Mike Ross (D-AR), Tom Petri (R-WI), Lou Barletta (R-PA), Mike Kelly (R-PA), Todd Platts (R-PA), and Richard Hanna (R-NY). • Also joined by Reps. Roby (R-AL), Hartzler (R-MO), and Crawford (R-AR) • Urge your representative to sign on!

15. Budget & Approps: FY11 and FY12 • FY11 as an indicator, both in terms of cuts and process • FY12: hard to imagine any scenario where education doesn’t take a big hit • LEAs continue to weather the unfortunate ‘perfect storm’ when it comes to funding: • Ongoing effects of recession • Cessation of ARRA and EduJobs • Actual and anticipated cuts in annual federal appropriations for both FY11 and FY12 • Districts and schools continue to make tough choices • Double dip recession?

16. FY11 • It may be wrapping up, but the politics and policies of FY11 budget discussions have STRONG implications for FY12 discussions. • Think: DC vouchers • Record-setting series of 7 CRs, including precedent-setting CR cuts • $38 billion below FY10 levels; includes $12 billion in reductions from previous CRs • Labor, HHS section cut by $5.5 billion (3.36%) • Includes 0.2% across-the-board cut • Title I, IDEA, and REAP were ‘level funded ‘, which included the 0.2% cut • Administration priorities funded: Race to the Top receives $700 additional funding; Investing in Innovation receives $150 million, and Head Start receives $340 million

17. FY12 • FY12 budget proposal released Feb 14 (2012-13 school year) • Despite tight economic times, including non-defense discretionary budget freeze, education receives historic increases • Proposal includes massive restructuring in ESEA reauthorization • Policy shift toward consolidation and competitive grants • Elimination? • Despite overall increases: • Title I receives $300 million • IDEA received a $200 million increase, falling to 16.5% instead of the promised 40%

18. FY12 • House Chairman Ryan (R-WI) introduced his Plan for Prosperity • Cuts the overall budget by $5.8 trillion over ten years.  • Non-security discretionary spending is but to pre-FY08 levels and would be frozen at that level for five years.  • Essentially, all of the 10-year reduction comes from cutting non-security discretionary spending.  • Specific details on cuts to education remain to be finalized. That said, I can give an unofficial summary of the Function 500 (education) issues within the resolution:  • Cuts discretionary funding for function 500 to the pre-2008 level of $80 billion for every year through 2020.  • For 2011, it cuts funding by $15.7 billion (16.7 percent).  • The cut deepens to 25 percent after 2011 and will translate into a cut of roughly $30 billion per year.  • Passed the House 235-193. While Democrats offered several alternatives, all were voted down. All Democrats opposed, as did four Republicans (Jones (NC), McKinley (WV), Paul (TX), and Rehberg (MT)).

19. FY12 • Full steam ahead. Sort of. Déjà vu? • House is moving along like trains on a schedule. They anticipate moving 9 of the 12 appropriations bills before the August recess. • LHHS WAS scheduled for markup July 26 • The FY12 allocation for the LHHS is $18 (11.6%) billion below FY11 levels, $7 billion below HR 1 (3.9% below FY08 and roughly equal to the FY04 level). When adjusted for population and inflation, it’s even less than the FY04 allocation. • Senate is a bit slow, but numbers are ready. • Have yet to officially release a budget. • Conrad released some of his details: $8 billion increase overall. Within that, Security takes $7 billion cut and non-security increases by $17 billion. The House-passed budget is a cut of $30 billion below FY 11, with defense going up $18 billion and non-security being cut $48 billion. • Coalition letter to appropriations chairs to put as much money as possible into the 302(b) allocations so LHHS is protected against cuts.

20. FY12 • House Appropriations Subcmte was to mark up the week of September 5 • House Appropriations Committee is expected to unveil its CR 9/14 so it is ready for floor action the week of 9/19.  The CR is expected to run through 11/18 and provide funding for disaster assistance. According to CQ: “House Majority Leader Eric Cantor, R-Va., on Monday reiterated his view that the CR will conform to the $1.043 trillion cap in the debt agreement, or only $7 billion below the fiscal 2011 level. Earlier this year, Republicans had hoped to cap fiscal 2012 discretionary spending at $1.019 trillion.” • Senate Appropriations Subcmte to mark up the week of September 19 (Sept 20, to be exact!) • Weigh in and let them know the importance of investing in and protecting education funding

21. Debt Ceiling • House and Senate each skipped a recess to finalize • Raised the debt ceiling and established annual spending caps for the next ten years, includes an immediate reduction of $7 billion in FY12 • Creates 12 member ‘Super Committee’ tasked with identifying an additional $1.5 trillion in cuts over the next ten years • If they fail to identify the full $1.5 trillion, we go in to sequestration (across-the-board cuts), which could translate into 6.7 % (or $3 billion) for USED.T This would be in addition to the $1.25 billion cut USED took in the FY11 appropriations process • While the debt ceiling discussions have wrapped up, the Super Committee and spending caps will continue to shape the annual appropriations processes for at least the next ten years. • Super Committee Roster: • Senate: Murray (WA), Baucus (MT), Kerry (MA), Kyl (AZ), Portman (OH), and Toomey (PA) • House: Hensarling (TX), Becerra (CA), Camp (MI), Clyburn (SC), Upton (MI), and VanHollen (MD)

22. Balanced Budget Amendment • Calls for balanced budget as soon as FY 2018 • Hard, fast cap on spending • Would freeze spending at 18% of GDP • We are currently at 24%, and the last time we were at 18% was 1966 • That predates ESEA, IDEA, and Medicare • Super majority to raise any taxes • Urge your members of Congress to oppose any constitutional amendment to balance the budget.

23. President’s Job Package • President Obama announced his Jobs Package, The American Jobs Act, last week • It is focused on infrastructure, including funds for school modernization and renovation, as well as funds for saving/reinstating/creating educator jobs • Education provisions are located on pages 13-26 • Education provisions are broken into two categories: teacher stabilization and school modernization

24. President’s Job Package • Teacher Stabilization • $30 billion • ED allocates funds to states in manner similar to SFSF and EduJobs (60% on share of school aged population, 40% on overall population) • MOE language allegedly stronger • Up to 10% of State allocation can be set aside for state-funded early-learning programs • LEAs have until 9/30/13 to obligate funds

25. President’s Job Package • School Modernization • $25 billion • ED allocates funds to state a la Title I share • 40% of funds are directly allocated by ED to 100 LEAs with the largest number of children in poverty (NOT including Hawaii, DC, or Puerto Rico) • State allocation reduced by aggregate amount of funds directly received by LEAs in that state in the ‘Top 100’ list • Of remaining state funds, at least 50% must be distributed based on LEAs relative share of Title I, with minimum award of $10,000 • Remaining funds allocated through awards (competition?!) with priority for rural • Funds can NOT be used for new construction, routine maintenance or stadiums • LEAs have 36 months to obligate funds

26. IDEA Full Funding • AASA’s #1 legislative priority • Senator Harkin has introduced the IDEA Full Funding Act (S 1403). We are waiting for the House partner bill. • Rep. Polis has a IDEA funding bill, but our focus is on the Harkin version • Urge your Senator to sign on the S 1403, and talk with your entire Congressional delegation about the funding pressures of IDEA and the importance of protecting and increasing IDEA funding in FY12 and debt ceiling conversations.

27. IDEA Maintenance of Effort • AASA is working to seek a MOE waiver around IDEA • If feds can cut their effort, and SEAs can receive waivers, where is the relief for LEAs? • Could be similar to ARRA approach • OSEP letter interpretation and subsequent pushback

28. Rural Education: REAP • Rural Education Achievement Program (REAP) • S 567, no House version yet! • Transition to new locale codes • Allow districts to choose between RLIS and SRSA funding • Switch the eligibility poverty measure • Shift in the sliding formula from $20,000 to $25,000 and $60,000 to $80,000.

29. Rural Education • Office of Rural Education Policy (S 946) • Creates office, within USED, leveraged to evaluate and provide analysis on USED policies and how they would impact rural areas • Urge your Senators and Representatives to join their respective chamber’s Rural Education Caucus

30. Education Technology: E-Rate • FCC program that provides discounts to help schools and libraries afford telecommunications services • Anti-Deficiency Act (S 297) • Raise the spending cap • Waiting for final action by the FCC on a host of rules/notices: • Gift rule • CIPA • Roll-over funds

31. Education Technology: Ed Tech • Title II Part D, Enhancing Education Through Technology, E2T2 • Zero-funded by the administration, eliminated by the House in its ESEA eliminations bill • Sen. Bingaman introduced the ATTAIN Act (S 1178), which allows for EETT-type program ($300 m trigger); Rep. Roybal-Allard to introduce partner bill

32. Child Nutrition • NSLP/SBP reauthorized last December • AASA, NSBA and Council opposed unfunded mandates within the law • Increased reimbursement, higher nutrition standards • Set paid lunch price • Set training and certification requirements • Review indirect cost process • Continue to work on the regulations, which affirm our suspicions

33. Choice: Vouchers & Charters • Vouchers have been the go-to topic in state legislatures • Vouchers played out in FY11 CR debate, and DC Voucher was reinvigorated • Two subsequent House efforts around special education vouchers for military families were defeated • Expect another push • Charters are a priority in the administration and we see support in both chambers • AASA supports public dollars for public schools, and public school choice, which includes public charters. • Latest PDK poll gives vouchers their lowest level of public support in ten years

34. Boil it Down to Three Bullets, Noelle! • Funding: Education funding is and must be an absolute priority. Education took a disproportionate hit in the FY11 funding cycle, and our nation and it’s future economic success cannot afford to continue these cuts. Invest first in IDEA and Title I! • ESEA: We want reauthorization, but we know politics will delay it. Provide immediate, targeted regulatory relief by allowing all states to freeze accountability at the 2010-11 level. • Balance: Recognizing the likelihood of cuts, it is prudent to examine the regulations and reporting requirements. As federal support declines, so should federal requirements.

35. Your Advocacy • What can you do? Weigh in early, weigh in often. • These decisions get made whether you weigh in or not, and your voice carries a lot of weight. • Get to know your Representative/Senator, and especially their education staffer. • Build a regular dialogue.

36. Your Advocacy • Five minutes a week- schedule an outlook appointment! • Invite the Representative/Senator and staffer to your district. Anecdotes and stories have a lot of sticking power with this Congress. Let the face of your school be the one that sticks in their mind!

37. Your Advocacy • AASA Blog: www.aasa.org/aasablog.aspx • AASA Weekly Update • AASA Advocacy Network • Use your professional organizations, at the state and local level. We are membership organizations and you are the members!

38. Questions? Noelle Ellerson Assistant Director, Policy Analysis & Advocacy AASA nellerson@aasa.org Yes, the slide show will be available.