TOP 12 ISSUES WEBINAR SERIES Education

Meagan Dorsch

NCSL Director of Public Affairs

Julie Davis Bell

Education Program Group Director

Presenters

Daniel Thatcher

NCSL Education Program Policy Specialist

Brenda Bautsch

NCSL Education Program Senior Policy Specialist

Michelle Exstrom

NCSL Education Program Principal

Lee Posey

NCSL Education Committee Director

Webinar Overview

The Overall Fiscal Picture for Education (Julie)

K-12 Funding Issues: Reallocation of Resources

(Dan)

Specific Example: Teaching Reform (Michelle)

Higher Education Funding: Emerging New Policy

and Funding Models (Julie and Brenda)

Federal Education Policy – Changing Federal Role

and Impacts on States (Lee)

State Budgets Trends for Education

K-12 and Higher Ed as % of state budgets

5 Year Trends in state support to K-12

5 Year Trends in state support to Higher Ed

State revenues trending upward, local revenues downward

(due impart to weak property tax performance)

K-12 & Higher Education Spending as a Percentage of General

Fund Appropriations: FY 2005-FY 2011

SOURCE: National Association of State Budget Officers, http://www.nasbo.org/LinkClick.aspx?fileticket=y%2fqdEfOcPfs%3d&tabid=38.

33.5%

34.5%

35.5% K-12

10.5%

11.0%

11.5%

12.0%

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Higher Ed

ARRA funding, beginning in FY08, may distort total state effort

K-12 & Higher Education Spending as a Percentage of General

Fund Appropriations: FY 2005-FY 2011

SOURCE: National Association of State Budget Officers, http://www.nasbo.org/LinkClick.aspx?fileticket=y%2fqdEfOcPfs%3d&tabid=38.

45.0%

45.5%

46.0%

46.5%

47.0%

47.5%

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

K-12 & Higher Ed.

ARRA funding, beginning in FY 2008, may distort total state effort

K-12 Revenues by Source

SOURCE: U.S. Department of Education, National Center for Education Statistics

43%

45%

46%

48%

49% State Local

7%

8%

9%

10%

2005 2006 2007 2008 2009

Federal Federal revenue share increased with

addition of ARRA funds

Improvement in State Taxes,

Decline in Local Taxes

SOURCE: Rockefeller Institute of Government, State Revenue Report, January 2012, No. 86

State tax revenue

Local tax revenue

Local education workforce shrunk -1.2% from FY10 to FY11.

SOURCE: Rockefeller Institute of Government, State & Local Government Jobs Continue to Decline in Most States, Feb. 17, 2012.

Great Recession

State Action:

Reallocation of Scarce Resources

Gap Between Projected Revenues

and Expenditures for K-12

SOURCE: Marguerite Roza, PhD, University of Washington; NCSL presentation, Nov. 2011, available at: www.ncsl.org.

State Action:

Reallocation of Scarce Resources Redesign state and district funding formulas:

– To allow greater flexibility (time, class size, etc.)

– To account for student types

– To direct resources where they are most needed

– To maintain cross-district equity

Improve and standardize data collection and

systems:

– To track resource allocations to student needs

– To insure comparability across LEAs

State Action:

Reallocation of Scarce Resources Invest in and promote use of technology

– To enhance learning

– To improve productivity

– To aid in the creative use of building space

Improve delivery of special education aid:

– To support early response to intervention

(RTI)

– To link to personalized student progress

State Action:

Improving Teacher Effectiveness

Salaries 41%

Employee benefits 14%

Instructional staff support 5%

Purchased services

2% Instructional supplies

3%

Tuition to out-of-state and private schools & Other

1%

Student support services 5%

Administration 11%

Operations 18%

Non-instruction related expenditures

34%

Total Current Expenditures: FY 2009

Instruction and

instruction-related

expenditures = 66% of all

current expenditures

State Action: Improving Teacher Effectiveness

In 2010-2011, at least 26 states reformed

teacher evaluation

Legislatures in many of these states also

reformed teacher tenure

At least six states enacted legislation

reforming teacher collective bargaining in

2010-2011.

State Action: Improving Teacher Effectiveness

States also reformed teacher reduction in

force (RIF) policies, commonly referred to

"last in, first out".

– According to NCTQ, eleven states require districts

to consider performance in RIFs.

– In 23 states, layoff decisions are left entirely to

districts, and another 11 states require districts to

consider seniority in layoffs. In five states, it is the

only factor that can be considered.

State Policy:

Higher Education Productivity

State Policy: Higher Education Productivity

– Improving high school rigor and college readiness

– Easing and facilitating articulation and transfer

– Supporting students (especially adults) with some

credit but no degree

– Providing students with more flexibility and options

– Decreasing remediation

– Incorporating technology into instruction

– Institutional efficiencies (streamlining administrative

functions; joint purchasing agreements; using

facilities on evenings and weekends; increasing

faculty workloads; year-round operations)

State Policy: Higher Education Productivity (con't)

– Carefully reviewing programs to eliminate

duplicative programs and close low demand high

cost programs that can't be justified by economic or

labor market needs

– Providing degrees that match the jobs required by

the economy

– Demanding institutions and systems to begin or

continue reporting performance data

– Promoting collaboration among universities

– Creating and supporting new providers

– Incorporating performance-based funding

State Policy:

Higher Education Funding

Federal stimulus funding cliff hit this year

State appropriations for higher education

fell by 7.6% from 2011 to 2012, the largest

such decline in at least 50 years

29 states appropriated less for higher

education this year than they did five

years ago

State Policy: Higher Education Funding

Changes in State Appropriations for Higher Education

Source: Chronicle of Higher Education; "Grapevine" survey of

the Center for the Study of Education Policy at Illinois State U,;

SHEEO, 2012.

State Policy: Higher Education Funding

– Traditional Model

• Incremental changes to appropriations

• Credit hours attempted or enrollment

– Performance (Outcomes Based) Funding

• Link funding to outcomes metrics

– Credit Completion

– Progress metrics

– Low-income, STEM graduates

– Performance Funding Legislation in

2011 in AR, CO, IL, MS, TX

State Policy: Higher Education Funding

Financial Aid

– States awarded $6.3 billion in undergraduate need-

based grant aid in 2009-10, an increase of 4.5%

from 2008-09.

– States provided more than $1.9 billion in nongrant

student aid, including loans, work-study, and tuition

waivers, up 4.4% from last year.

– 48 states have awards based exclusively on need;

30 states have financial awards based only on

merit; 23 states have awards based on both need

and merit.

Undergraduate Financial Aid Dollars, by

Standard for Award: 2009-10

47%

16%

18%

13%

6% Based on only need

Based on need and merit

Based on only merit

Special purpose awards

Uncategorized

Federal Policy Update

Federal policy will impact state

decisions :

Decreased federal funding

Uncertainty around ESEA

reauthorization

Federal actions re: higher ed

Federal Budget:

fewer dollars for states FFY 2012 (current year)—federal funding for

discretionary programs decreased 2.7%

FFY 2013—with sequestration, federal

discretionary and non-discretionary

funding declines 8-9%

FFY 2014 and beyond—federal

discretionary spending continues decline

Federal Budget

If budget sequestration occurs in 2013

– Title1 -$1.2 billion

– Special Ed state grants -$996 million

– Impact Aid -$110 million

– Teacher quality grants -$214 million

– Career &Technical Ed state grants

-$98 million

Uncertainty around Elementary and

Secondary Education Act (ESEA)

reauthorization

Current incarnation as No Child Left Behind

(NCLB) is 10 years old

House and Senate committees have different

approaches

U.S. Department of Education offering NCLB

waivers

NCLB Waiver Requirements

States can seek waivers of specific NCLB

provisions including

– the timeline for students achieving 100%

proficiency in reading and math

– district and school improvement and

accountability

– use of federal funds

Requirements for NCLB Waivers States must be transitioning to college-and-

career-ready standards and assessments

States must develop systems of

differentiated recognition, accountability

and support

States must set guidelines for evaluating

and supporting teacher and principal

effectiveness

Waiver map

MD

DC

DE

NJ

CT

RI

MA

PR ROUND 1 CO, FL, GA, IN, KY, MA, MN, NJ, NM, OK, TN

ROUND 2 AZ, AR, CT, DE, ID, IL, IA, KS, ME, MD, MI, MS, MO, NV, NH, NY, NC, OH, OR, RI, SC, SD, UT, VT, VA, WA, WI, WY, DC, PR

Not currently applying AL, AK, CA, HI, LA, MT, NE, ND, PA, TX, WV

ESEA: House and Senate bills Points of agreement

– Scraps AYP

– Does not require student achievement

targets for subgroups

– Keeps annual testing, disaggregation of

achievement data

House and Senate bills

Points of disagreement

– Highly qualified teacher provisions

– Teacher evaluation

– Approach to intervention in low

performing schools

– Accountability

ESEA House and Senate Bills

Funding provisions

– Senate bill consolidates some funding

and strengthens comparability of

services provision

– House bill eliminates maintenance of

effort for Title I and provides flexibility;

caps funds at FY 2012 level

Higher Ed: New Emphasis

Federal regulatory measures addressing

accountability

Now increasing emphasis by

Administration and Congress on

affordability and value

Higher Ed: Administration

Proposals Increased funding for campus-based aid

Shift some federal aid away from colleges that

don’t keep net tuition down

Two competitive grants programs

– $1 billion for Race to the Top: College Affordability

and Completion

– $ 55 million “First in the World” Competition

Administration Higher Ed

Proposals (continued)

Report card

Stop scheduled increase in interest on

Stafford loans

Make the American Opportunity Tax Credit

permanent

Revamp workforce training programs

Contact Information Julie Davis Bell: julie.bell@ncsl.org

Daniel Thatcher: daniel.thatcher@ncsl.org

Michelle Exstrom: michelle.exstrom@ncsl.org

Brenda Bautsch: brenda.bautsch@ncsl.org

Lee Posey: lee.posey@ncsl.org

The webinar archive and power points will

be emailed to you next week.