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Explore the issues of underfunding and disproportionate allocation of funds for Alabama K-12 education. Find out the impact on various programs and propose solutions for a better education system.
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Dr. Joseph B. MortonState Superintendent of Education Superintendents’ Meeting Wednesday, November 18, 2009
Alabama K-12 Public Education Faces Two Major Issues
#1 Alabama K-12 Public Education Is Underfunded
#2 The Alabama Legislature Has Been Influenced to Historically Position the State’s Education Trust Fund to Disproportionately Pay Health and Retirement Benefits From State Funds
#1—K-12 Is Underfunded • K-12 has 75.67% of the students in Kindergarten through Graduate-level Programs (K-12/Postsecondary/Colleges/Universities) • K-12 receives 68.78% of the Education Trust Fund Budget in FY 2010 Source: Enrollment and FTE Data for Postsecondary and Higher Education Obtained from Southern Regional Education Board, 2008 Enrollment for K-12 Data Obtained from NEA, 2008 for Enrolled K-12 Students
Current Distribution of ETF Appropriations Per FTE
K-12 Cannot Adjust For Proration • K-12 has no mechanism to raise revenues at the state or local levels without legislative and/or local political body approval (often requires a vote of the people as well). This is a slow process that does not aid all 132 school systems in the times of greatest need. • Postsecondary can raise tuition with State Board of Education approval. • Colleges/Universities can raise tuition with individual Board of Trustees’ approval.
What Does The 10-Mill Requirement Mean In Dollars and To Whom Does It Apply? 132 local school systems must “match” the state-funded dollars in the Foundation Program with the equivalent of 10 mills of property tax.
Current K-12 Funding Issues • Alabama Reading Initiative is underfunded • Alabama Math, Science, and Technology Initiative is underfunded • Alabama Connecting Classrooms, Educators, and Students Statewide is underfunded • Foundation Program items, including the following, should be reinstated • Other Current Expense (OCE) • Classroom Supplies • Student Materials • Technology • Library Enhancements • Professional Development • Common Purchases • Textbooks • High Hopes • 1% Salary Allocation • Technology Coordinators • Current Units • At-Risk • School Nurses are underfunded • English as a Second Language teachers are underfunded • Transportation is underfunded • Graduation Coaches are underfunded • Advanced Placement is underfunded • HIPPY is underfunded • Career and Technical Education is underfunded • National Board for Professional Teaching Standards is underfunded • After-School Programs are underfunded • Gifted Education is underfunded • Student/Teacher Testing is underfunded • Teacher Mentoring is underfunded • Character Education has no funding
#2—State Health and Retirement Costs Have Become Disproportionately Too High At The State Level
Did Teachers Lose Salary Benefits in Order to Obtain High-Quality Insurance Largely Provided by the State? Source: National Education Association
Teacher Salary Comparison 1986-2009 Source: National Education Association
Recommendations for K-12 Funding Beginning With The FY 2011 Education Budget (2010 Regular Session, Alabama Legislature) K-12 Education should receive, at a minimum, 70% of all expenditures approved in the FY 2011 Education Budget. PROPOSED CONSTITUTIONAL AMENDMENT? Beginning with the FY 2012 Education Budget, the Legislature shall appropriate funds to PK-12 elementary and secondary education, postsecondary education (two-year colleges), and four-year colleges and universities, including graduate programs, based on the number of students enrolled at each level of education. A constant four percent of the annual Education Budget shall be allocated to state agencies and entities providing services to education in Alabama. 2. The Legislature should freeze the state appropriation for the Public Education Employees’ Health Insurance Plan (PEEHIP) at the FY 2010 level and instruct the PEEHIP Board of Directors to develop a health insurance program to match funds available. Funds available may include an increase in the employee monthly/annual payment and/or changes in benefits, but that should be a part of the PEEHIP Board action.
Recommendations for K-12 Funding Beginning With The FY 2011 Education Budget (2010 Regular Session, Alabama Legislature) The Legislature should amend current law that establishes the minimum number of years of service required for retirement benefits to be 30 years and 55 years of age, instead of the current 25 years and no age minimum, and make it effective for all new employees beginning with the 2010-2011 school year. The Legislature should amend current law related to the Deferred Retirement Option Plan (DROP) to make the requirement to participate be a minimum of 30 years of service and 57 years of age and make it effective for all new employees beginning with the 2010-2011 school year. The Legislature should amend the law enacted in 1975 for all current and future Retirement Systems of Alabama members to increase payments from the current 5% of gross annual payroll to 6% of gross annual payroll, and the Retirement Systems Board of Directors should move from the current 20-year funding period for retiree obligations to 30 years, which more clearly reflects the industry standard.
How Much “New” Money Could We Have For FY 2011? “IF” If growth continues in the Education Trust Fund (ETF) at a positive rate like October 2009 there could be no increase in the current 7.5% proration and perhaps a reduction in FY 2010 proration. Assuming a 3% growth rate for FY 2011 there could be $159,669,887 “new dollars” in growth for the ETF.
If K-12 education receives 70% of the ETF (currently 68.8%) and the ETF amount for FY 2011 is $5,481,999,464, then K-12 would receive $3,837,399,625. That would be $245 million more than we are receiving now at proration level funding and 68.8% of the budget.
If K-12 can regain all $245 million for FY 2011 budget priorities that focus on improving the classroom and restoring cuts to the Foundation Program and not have some or all of it diverted to benefits, K-12 can begin to climb out of the deep hole we are in due to two years of devastating proration. PEEHIP administrators are asking for $238 million “new dollars” and Retirement administrators are asking for $57 million. If new dollars go to benefits, any funds available to fill the “proration gap” would be lost.
“If” is often called the biggest two letters ever put together by man to form a word. So, “if” the previous ifs come to pass and “if” the legislature will level fund benefits, then the Alabama Reading Initiative, the Alabama Math, Science, and Technology Initiative, and the Distance Education Initiative can live on; some cuts to the Foundation Program can be restored; Transportation can come closer to being funded; and K-12 education in Alabama can survive.
This is a survival plan, but in times such as these, a survival plan is what is needed. “IF”
Needed Non-Budget Legislation The Legislature should amend the existing Teacher Tenure Act and the Fair Dismissal Act to allow for a hearing at the local level before a local board of education regarding dismissal of employees. That ruling should be enforced immediately after the board vote, and no additional payments should be paid to the employee. If the employee appeals the decision to a circuit judge, the employee’s pay should be placed into an escrow account. If the employee wins the appeal, the employee receives back pay. If the employee does not win the appeal, the funds revert back to the general operations of the school system.
Craig pouncey Assistant state superintendent of education
“What does the future hold?” A closer look at FY 2011 Craig pouncey Assistant state superintendent of education Superintendents’ meeting Wednesday, November 18, 2009
Proration of FY 2010 resulted in the loss of $290 million for K-12
Based on Dr. Morton’s proposals that include: • 3% growth • 70/30 split We stand to regain $245,280,275
Even with 100% success in these proposals, we still fall short some $44,821,714in regaining the level of state dollars that was appropriated for FY 2010 • Let’s review our options . . .
Option 1 Follow the path of the past and assume thatthe state will continue to meet any increases required for peehip and retirement. • This would require all new dollars being directed to meet these needs. It would not restore state funding that was lost for the local districts • This would also require a loss of approximately 2,900 teachers and 1,400 support positions • All other programs would be funded at their prorated amounts, which would include transportation
Option 2 • Level fund existing employee benefit costs • Direct any new growth dollars back to the local districts Here are the details . . .
Foundation Program amount direct benefit To: fully funding all state-earned $254,002,222 LEAs certified positions using the current divisors Level fund OCE at its current No Change LEAs prorated level Level fund At-Risk at its current No Change LEAs Prorated level Student materials from $0 to $125/unit $ 6,071,985 LEAs Library enhancement From $0 to $50/unit $ 2,428,803 LEAs Textbooks from $15 to $18/student $ 1,605,342 LEAs
Transportation amountdirect benefit To: Fleet renewal $ 7,506,203 LEAs ($5,599/bus) on a 12 yr schedule Operations/salaries $ 9,995,793 LEAs
Line Items amountdirect benefit To: AMSTI $ 6,272,358 LEAs/state Current units $ 5,000,000 LEAs School Nurses $ 2,514,550 LEAs ARI $ 1,682,959 LEAs/state Career Tech $ 1,000,000 LEAs ACCESS $ 921,400 LEAs/state Governor’s At-Risk $ 828,898 LEAs National Board Certified Teachers $ 750,000 LEAs
Line Items - continued amount direct benefit To: ESL $ 744,416 LEAs Advanced Placement $ 447,506 LEAs Technology Coordinators $ 500,000 LEAs Character Education $ 300,000 LEAs Graduation Coaches $ 297,225 LEAs Teacher Testing $ 181,860 LEAs Teacher Mentoring No change LEAs
Summary Option 2 Results in 99.87% of all new state dollars being directly sent back to the local school systems.
Alabama H1N1 Update School Superintendents 11/18/2009
Alabama State Department of Education School Absenteeism Report 5-Day Average of Absenteeism by School, 11/06– 11/13/2009 Green: < 5% Yellow: 5% - <10% Orange: 10% - <15% Red: 15% - <20% Fuchsia: 20% - <25% Purple: >25% DateReported: 11/17/2009
*Data prior to 9/11/2009 are subject to over inflation of schools <5% DateReported: 11/17/2009
Target Groups • Pregnant women • Persons aged 6 mo-24 yrs of age • Household contacts of <6 mo of age • Healthcare and emergency services personnel • 25-64 years of age with chronic health disorders
H1N1 Dosing Regimen • <9 years of age 2 doses • >10 years of age one dose • Supported by preliminary data from NIH and manufacturer sponsored studies • Adults >18 years: 1 dose • Children 10-17 years: 1 dose • Children 6m-9 years: 2 doses
Race to the Top Alabama’s Plan for the Future
Longitudinal Data Systems Common Standards and Assessments Common Standards and Assessments Longitudinal Data Systems
RESULTS Based on AYP and Multiple Metrics Student to Teacher to School to System Statewide System of Differentiated Support Turnaround of Low-Performing Schools
