Maryland Commission on Innovation and Excellence in Education

1. Maryland Commission on Innovation and Excellence in Education Rachel Hise, Lead Principal Analyst, Department of Legislative Services Leslie Pellegrino, Chief Financial Officer, Frederick County Public Schools Presentation to Association of School Business Officials – Maryland/DC May 23, 2019

2. Maryland Commission on Innovation and Excellence in Education The 25-member commission was created in the 2016 legislative session by the Governor and the General Assembly to: • review and update the current funding formulas for the schools in Maryland • develop policies and practices so that Maryland’s schools perform at the level of the world’s best systems

3. What We’ve Learned • Maryland’s school system has a strong national reputation built over the past several decades • State was ranked as the best in the US and currently ranks 5th in 2018 Education Week’s assessment of state education systems • Maryland schools have been a leader in important innovations such as: • Pre-school for 4-year olds • Access to AP courses • Maryland has nationally recognized schools and many high quality teachers

4. What We’ve Learned • Although Maryland has a reputation for strong schools, overall, Maryland students underperform on learning outcomes • Maryland is in the middle of the pack on NAEP (2015) scores: • 29th in 4th grade math 26th in 4th grade reading • 25th in 8th grade math 18th in 8th grade reading • U.S. is in the middle of the pack on PISA scores: NAEP: National Assessment of Education Progress (Nation’s Report Card) PISA: Program for International Student Assessment PISA: Programme for International Student Assessment Source: National Center on Education and the Economy

5. What We’ve Learned • Maryland education funding (State and local funds) is among the most regressive in the United States, meaning that districts with a high proportion of low‐income students receive less funding per student than others • State No Low Income 30% or more New Jersey$15,095 $18,054 Massachusetts 14,172 15,546 Maryland 13,495 12,279 • High-performing systems invest significantly more in schools serving high concentrations of poverty Source: Education Law Center, Rutgers University, February 2018

6. What We’ve Learned • More than half of public schools across Maryland have 40% or more of their students eligible for a free or reduced-price meal (185% of federal poverty level) • Maryland has large achievement gaps based on income, race, and disability • 53% of African American students attend schools in districts at 85% or below Thornton Bridge to Excellence adequacy levels (2015) • Only 8% of white students attend such schools

7. What We’ve Learned • Average salaries for teachers in Maryland are 25% below those of professions with comparable education requirements (e.g., accountants, nurses, architects) (2017) • Maryland faces significant teacher shortages, especially in STEM areas • Nearly half (47%) of teachers in their second year of teaching will leave the field at the end of the year • 60% of teachers are recruited from outside Maryland each year

8. What We’ve Learned • Fewer than 40% of students graduate each year assessed as “College and Career Ready” • We can and must do better because… • Maryland’s economic future is dependent on a highly skilled, well educated, globally competitive workforce • In today’s world – and even more so in the future – high-quality education and skills training is the only path out of poverty

9. Gap Analysis With support of NCEE, Commission did extensive and rigorous gap analysis, comparing Maryland to high-performing systems International • Finland, Ontario (Canada), Shanghai (China), Singapore United States • Massachusetts, New Jersey, New Hampshire Maryland is the first state to undertake a rigorous, comparative assessment and cost analysis using NCEE’s building blocks NCEE: National Center on Education and the Economy

10. Policy Recommendations Commission has reached near unanimous consensus on recommendations in five major policy areas to be phased in over the next 10 years: • Invest in early childhood education • Transform teaching into a high-status profession • Implement a rigorous curricula benchmarked to international standards leading to college ready and industry certified workforce credentials • Ensure all students are successful by providing significantly more support for schools who need it most, including students attending schools with high concentrations of poverty and struggling learners • Establish rigorous governance and accountability structure with meaningful consequences for under performance

11. Commission’s Interim Report • Interim Report issued January 2019 with detailed policy recommendations and total costs for the plan completed • Detailed ten-year implementation plan in all five policy areas completed, with total annual PreK-12 expenditures rising by $3.8 billion (state and local) by year 10

12. 2019 Legislative Session • Senate Bill 1030 – The Blueprint for Maryland’s Future approved and Governor will let the bill take effect without his signature • Adopted The Blueprint for Maryland’s Future as State education policy based on the Commission’s policy recommendations • Mandated funding for FY 20 – FY 22: • $255M in FY 20 • $355M in FY 21 • Up to $500M in FY 22 • Established Maryland Office of the Inspector General for Education and Office of Program Evaluation in DLS • Extended Commission through December 2019

13. FY 20 Funding - $255 Million • Full day Pre-K for 4-year-olds $31.7 million • Seed grants for teacher collaborations $2.5 million • Teacher salary increase $75.0 million • Transitional Supplemental Instruction $23.0 million • Concentration of Poverty Grants $54.5 million • Health/behavioral health funding increase $2.0 million • Special education $65.4 million • Oversight board/training/public outreach $0.9 million

14. Additional Revenues • General Assembly identified additional revenues to be dedicated to implementing the Commission’s recommendations and other revenues may be identified in the 2020 session • Sales tax revenues over $100 million from online purchases each year beginning in FY 20 • Proposed increases in casino operators’ shares were rolled back generating about $17 million annually for the Education Trust Fund beginning in FY 20 • Corporate filing fee waiver delayed one year generating $36 million in FY 21 • Mandated general fund expenditures were redirected to the Commission recommendations totaling $4 million in FY 20

15. Next Steps • Small working group of the Commission will be appointed to review how the total costs will be distributed between the State and local jurisdictions • Group will meet over the summer with staff to develop recommendations on the distribution of costs and other aspects of the Commission’s charge related to funding formulas • Commission will meet in the fall to review working group recommendations and make final recommendations

16. Funding Formula Group • The working group will look at formula issues including: • Foundation amount • Local wealth calculation • Weights for compensatory education, English Learners and special education formulas and new concentration of poverty formula • Enrollment count • Prekindergarten formula • GCEI • Maintenance of effort

17. FinalThoughts Cost is substantial but points to consider: • APA update of Thornton calls for increase of $3 billion – and continuing to do things roughly the same way • Cost of not redesigning our PreK-12 education system – and not investing more in it – will be much greater • As education levels rise, incomes and State revenues rise while health care and public safety costs decline • Commissionhas been asked to reconsider the implementation schedule so that the costs are phased-in as evenly as practicable over the phase-in period

18. Further Information • Commission web page: http://bit.ly/MDCommission • Interim Report (January 2019): http://bit.ly/InterimRpt2019 • The Blueprint for Maryland’s Future (Senate Bill 1030): http://bit.ly/SenateBill1030