EPLC Education Notebook

EPLC Education Notebook

Friday, July 1, 2005

Pennsylvania State Budget

The Legislature once again missed the June 30 constitutional deadline for passage of the state budget for the new fiscal year, but budget approval is anticipated before the sun rises over Harrisburg on the Fourth of July. We will report the approved education budget details next week.

Will the 2005-06 State Budget Improve Pennsylvania's Education Funding System? Pennsylvania continues to have one of the nation's most ineffective and unfair statewide funding systems for elementary and secondary education. In its latest Policy Brief, The Education Policy and Leadership Center poses eight questions that the Governor, every legislator, school district officials, parents and taxpayers should ask about the next state budget for public education. Read the "Criteria for Evaluating Pennsylvania Education Funding Proposals/Budgets" at www.eplc.org/fundingcriteria.html.

Pennsylvania Senate Activity

While action on the state budget has been slow, there has been a flurry of activity concerning a variety of education issues, some of which may be consolidated into a massive omnibus "School Code" amendment likely to be approved before the summer recess. By the time you read this, many of the bills reported here will have moved through additional steps of the legislative process. But, here's a progress report as of Noon on Friday.

The Senate Appropriations Committee passed the following legislation this week:

Senate Bill 709: Allows school property taxes to be collected in either four quarterly, six bimonthly or twelve monthly installments, rather than one lump sum. All school districts would be required to enact an installment collection system by the 2006-07 school year. Residents and businesses may choose to make installment payments. SB 709 was amended to allow tax collectors to request that school districts consider increasing their compensation to account for increased administrative costs associated with implementing an installment collection system. The bill requires districts to consider tax collectors' request within 45 days of receipt. SB 709 awaits further consideration by the full Senate. (Similar legislation - House Bill 1788 - was passed by the House on June 30).

House Bill 628: Requires school districts to prepare proposed annual budgets using the uniform form provided by the state Department of Education (PDE). The bill also requires the school board president to certify to PDE that the district's proposed budget has been prepared and made publicly available using PDE's uniform form and prohibits school boards from taking final action on a proposed budget if such preparation has not occurred. Additionally, HB 628 requires proposed district budgets to be made available for duplication upon request at a reasonable duplication cost. HB 628 has been re-referred to the Senate Appropriations Committee. (Similar legislation - Senate Bill 672 - was passed by the Senate on June 22 and has been referred to the House Education Committee.)

House Bill 820: Allocates $39.539 million to the Pennsylvania School Employees' Retirement System for FY 2005-06. HB 820 awaits further consideration by the full Senate.

House Bill 823: FY 2005-06 Capital Budget. HB 823 awaits further consideration by the full Senate.

House Bill 828: Allocates $6.731 million to Drexel University for FY 2005-06. HB 828 awaits further consideration by the full Senate.

House Bill 829: Allocates $48.314 million to the University of Pennsylvania for FY 2005-06. HB 829 awaits further consideration by the full Senate.

House Bill 830: Allocates $11.694 million to the Philadelphia Health and Education Corporation for FY 2005-06. HB 830 awaits further consideration by the full Senate.

House Bill 831: Allocates $9.523 million to Thomas Jefferson University for FY 2005-06. HB 831 awaits further consideration by the full Senate.

House Bill 832: Allocates $4.837 million to the Philadelphia College of Osteopathic Medicine for FY 2005-06. HB 832 awaits further consideration by the full Senate.

House Bill 833: Allocates $1.789 million to the Lake Erie College of Osteopathic Medicine for FY 2005-06. HB 833 awaits further consideration by the full Senate.

House Bill 834: Allocates $1.446 million to the Pennsylvania College of Optometry for FY 2005-06. HB 834 awaits further consideration by the full Senate.

House Bill 835: Allocates $1.167 million to the University of the Arts in Philadelphia for FY 2005-06. HB 835 awaits further consideration by the full Senate.

House Bill 836: Allocates $1.533 million to the Berean Training and Industrial School for FY 2005-06. HB 836 awaits further consideration by the full Senate.

House Bill 837: Allocates $0.186 million to the Johnson Technical Institute of Scranton for FY 2005-06. HB 837 awaits further consideration by the full Senate.

House Bill 838: Allocates $0.068 million to the Williamson Free School of Mechanical Trades in Delaware County for FY 2005-06. HB 838 awaits further consideration by the full Senate.

House bills 828 through 838 above are all non-preferred appropriations that require two-thirds approval in both the House and the Senate before being sent to the Governor.

The Senate Education Committee passed the following legislation this week:

House Bill 1304: Extends the mandate waiver program for local libraries for the 2005-06 fiscal year. The program allows libraries to apply for waivers of certain state regulations related to hours of operation, collection expenditures and more if state funding for libraries is less than that provided in FY 2002-03. The mandate waiver program was implemented in FY 2003-04 when libraries sustained a significant cut in state funding and was extended by the PA General Assembly again for the 2004-05 fiscal year. HB 1304 has been re-referred to the Senate Appropriations Committee. (Similar legislation - Senate Bill 651 - was passed by the Senate on June 15 and subsequently passed by the House Education Committee on June 30.)

Pennsylvania House Activity

The House passed the following legislation this week:

House Bill 1788: Allows school property taxes to be collected in monthly or quarterly installments, rather than in one lump sum. All school districts must operate an installment collection system by January 31, 2007. Taxpayers may decide whether or not to participate in the installment payment system. House Bill 1788 also requires the state to absorb the cost of school property tax increases (up to $500 per year) for homeowners in poverty who qualify for the state personal income tax forgiveness program. The property taxes of qualifying homeowners would effectively be frozen at a base year amount with the state picking up any tax increases. To qualify, an individual must have lived in the primary residence for the entire taxable year, must have paid school property taxes equal to or greater than the amount of the increase, and must apply to the state for reimbursement. The program would be administered by the Department of Revenue in conjunction with the state's personal income tax forgiveness program. (DON'T PLAN ON THIS PROPERTY TAX FORGIVENESS ACTUALLY BECOMING LAW.) HB 1788 awaits referral to a Senate Committee. (Similar legislation requiring installment collections - Senate Bill 709 - was passed by the Senate Appropriations Committee on June 28.)

House Bill 546: Allows current school employees who were former county employees (other than county nurses) to purchase creditable non-school service toward the Pennsylvania School Employees' Retirement Fund (PSERS). Individuals could purchase one year of PSERS credit for every three years of county service, up to a maximum of five years. The bill also eliminates the prohibition of those individuals currently eligible for an annuity (except for social security and military pensions) from purchasing service credit. HB 546 was amended to make changes to the administrative recordkeeping of the PSERS Board of Directors. The bill allows the Board to withhold documents related to financial investments from public inspection if the Board judges that the release of a document would have a negative effect on the value of an investment or cause a breach of the standard of care or fiduciary duty. Such documents would become public record once their release would no longer have a negative effect on investment value or cause a breach of standard of care or fiduciary duty. The right to withhold documents from public inspection would apply to all materials regardless of whether the record has already been made public or a request for the information has been made and is currently awaiting a ruling under the state's right-to-know law. Finally, HB 546 requires PSERS to return fees paid for requested documents that, as a result of this provision, will not be made available for public inspection. HB 546 has been referred to the Senate Finance Committee.

House Bill 564: Allows colleges and universities to conduct criminal background checks of potential full-time faculty and staff and to use those records in making hiring decisions based on the institution's written policy for use of such information. HB 564 was amended to allow colleges and universities to require job applicants to self-disclose, at a minimum, criminal history information related to sex offenses, misappropriation of funds and felony convictions. The bill also requires colleges and universities to inform prospective students whether or not the institution has established policies relating to criminal background checks. HB 564 has been referred to the Senate Education Committee.

House Resolution 4: Directs the Legislative Budget and Finance Committee to conduct a study of all existing state aid funding formulas and their impact on the state's 67 counties. The resolution directs the Committee to examine population-based and client-based funding formulas and how and when to revise state funding formulas to reflect population and client enrollment shifts in Pennsylvania's counties. This study would apply to a large array of programs, only some of which involve education funding.

House Resolution 299: Directs the Legislative Budget and Finance Committee (LBFC) to conduct an analysis of early retirement proposals (30 & out) for school and state employees. LBFC would assess the fiscal impact of proposed early retirement programs on the state and school districts, the impact on workforce needs, and more.

The House Appropriations Committee passed the following legislation this week:

Senate Bill 147: Requires the state Department of Education (PDE) to provide technical assistance, upon request, to a school or school district identified for warning, school improvement, or corrective action. Also, requires PDE to develop a clearinghouse of materials related to improving student's academic performance. SB 147 awaits consideration by the full House.

Senate Bill 511: Makes changes to the Technology Work Experience Internship Program. The bills revises the definition of "emerging technology companies", delineates responsibilities for educational institutions participating in the program, outlines terms and conditions for interns participating in the program, and opens the program to graduate students. An unrelated, non-education amendment was added to the bill. SB 511 awaits consideration by the full House.

Senate Bill 609: Appropriates $39.539 million to the Pennsylvania School Employees' Retirement Fund for FY 2005-06. SB 609 has been placed on the House Tabled Bills Calendar.

House Bill 8: Establishes an independent board to govern Pennsylvania's 14 community colleges. The fifteen-member Board - appointed by the Governor and caucus leaders in the House and Senate - would be advised by a Council of community college presidents. House Bill 8 also makes changes to the community college auditing process, increases the maximum reimbursement per full-time equivalent student to $1,680, and creates a separate line item for community college capital expenses in the state budget. HB 8 has been re-referred to the House Rules Committee. LOOK FOR A COMPROMISE BILL TO EMERGE ON COMMUNITY COLLEGE FUNDING AND AUDIT ISSUES, BUT WITHOUT A NEW BOARD.

House Bill 876: Authorizes the state Department of Education to directly reimburse tutors who provide services through the educational support services program, rather than providing funding to purchase tutoring services directly to students. Currently, eligible students receive state grants of up to $500 to purchase tutoring services from state-approved providers. HB 876 awaits further consideration by the full House.

House Bill 1408: Imposes a misdemeanor offense for improper use of bond proceeds. HB 1408 awaits further consideration by the full House.

The House Education Committee passed the following legislation this week:

Senate Bill 651: Extends the mandate waiver program for local libraries for the 2005-06 fiscal year. The program allows libraries to apply for waivers of certain state regulations related to hours of operation, collection expenditures and more if state funding for libraries is less than that provided in FY 2002-03. The mandate waiver program was implemented in FY 2003-04 when libraries sustained a significant cut in state funding and was extended by the PA General Assembly again for the 2004-05 fiscal year. SB 651 has been placed on the House Tabled Bills Calendar. (Similar legislation - House Bill 1304 - was passed by the House on June 13 and was subsequently passed by the Senate Education Committee on June 28.)

House Resolution 177: The House Education Committee adopted an amended version of House Resolution 177 late Thursday night. EPLC will report on the details of the Resolution when its final version, as amended, becomes available. The Committee began debating the Resolution at its Committee meeting on Wednesday. As discussed on Wednesday, the Resolution called for an investigation of the academic atmosphere at the Commonwealth's community colleges, state-owned colleges and state-related colleges and "the degree to which faculty have the opportunity to instruct and students the opportunity to learn in an environment of independent thought". During Wednesday's heated, hour-long debate, Committee members questioned whether a legislative panel was the appropriate venue for investigating an ideological issue, whether a problem regarding academic freedom on college campuses actually exists or is merely anecdotal, and whether a legislative solution could solve the problem. Rep. Gibson Armstrong, the Resolution's sponsor, said he has received approximately 50 anecdotal complaints from college students who felt aggrieved by what they felt were inappropriate actions taken during their coursework. Armstrong said the investigation would determine whether a problem with academic freedom exists on the Commonwealth's college campuses. He suggested that the legislature could pass a student's bill of rights to address the problem and that the state has a fiduciary responsibility to explore such complaints at institution's that receive significant amounts of state funding.

The House Rules Committee passed the following legislation this week:

House Bill 472: Creates a personal income tax credit for the donation of used computers to nonprofit educational institutions and other organizations. HB 472 has been re-referred to the House Appropriations Committee.

House Bill 958: Prohibits political subdivisions (including school districts) and counties that did not levy the occupation tax as of January 31, 2005 from levying such a tax. HB 958 has been re-referred to the House Appropriations Committee.

House Bill 824: Allocates $324.316 million to Penn State University for FY 2005-06. HB 824 now awaits consideration by the House Appropriations Committee.

House Bill 825: Allocates $172.528 million to the University of Pittsburgh for FY 2005-06. HB 825 now awaits consideration by the House Appropriations Committee.

House Bill 826: Allocates $173.935 million to Temple University for FY 2005-06. HB 826 now awaits consideration by the House Appropriations Committee.

House Bill 827: Allocates $12.934 million to Lincoln University for FY 2005-06. HB 827 now awaits consideration by the House Appropriations Committee.

House bills 824 through 827 above are all non-preferred appropriations that require two-thirds approval in both the House and the Senate before being sent to the Governor.

All legislation from the Pennsylvania General Assembly, including bills cited in this Notebook, can be found at www.legis.state.pa.us/cfdocs/legis/home/session.cfm.

Pennsylvania State Board of Education

The PA State Board of Education took action of a number of items at it June 30 meeting:

Validation of PSSA Performance Levels: The Board adopted new cut scores for the Pennsylvania System of School Assessment (PSSA) exams and new descriptions of the assessments' performance levels (advanced, proficient, basic, below basic). Cut scores determine which performance level a student achieves by setting borders on a range of points that correlate to each performance level (for example, a fifth grade PSSA math score between 1293-1461 would score Proficient, however a 1292 would score Basic and a 1462 would score Advanced. In this scenario, 1293 and 1461 are the cut scores - the cut-off points for scoring in the Proficient performance level).

The PSSA cut scores were adjusted because the exam has changed since the current cut scores were established in 2001. Since that time, the Department of Education (PDE) has adopted Assessment Anchors that focus which state standards are tested. PDE also reevaluated the cut scores to reflect refinements suggested by an independent, third-party PSSA validation study and to account for assessments in new grade levels. In addition to revising the scores to align with the changed assessment, the Board also adopted new descriptions of each performance level (advance, proficient, basic, below basic). The new descriptions are designed to provide teachers with more detail about what skills a student should be able to demonstrate in each performance level in grades 3, 5, 8, and 11.

The new PSSA cut scores were developed using the bookmark method by gathering input from a panel of teachers about where the cut-off points should be set, then providing that teacher input to statisticians to develop the final scores. A public roundtable discussion on the technical process of developing the new cut scores will be held within the next month.

NCLB Accountability Workbook Amendments: The Board adopted two changes to the state's plan for addressing No Child Left Behind. The Board approved the Pennsylvania Performance Index (PPI) as an alternative way for schools and school districts to achieve adequate yearly progress (AYP) if they do not achieve AYP through the traditional route. The PPI measures a school or district's continuous improvement, rather than basing AYP on attainment of proficiency on the PSSA. PDE is in the process of developing information that will detail how the PPI will be implemented. The Board also approved new criteria for identifying school districts that are in "Improvement" status. Under the new policy, to enter this (needs) Improvement status a district must not make AYP for two consecutive years in the same subject area in certain grade spans (Elementary, 3-5; Middle, 6-8; and High School, 9-12). These changes were requested by PDE and approved by the U.S. Department of Education (USDE). Both changes will take effect in the 2005 AYP cycle. Three other amendments requested by PDE were denied by the USDE.

The USDE denied the state's request to change the minimum number of students (the "N" size) required to report disaggregated assessment data for the special education and limited English proficiency student subgroups. PDE requested that the "N" size be 40 or 15% of all students tested, whichever is greater. PDE has not received an official reason as to why the request was denied, however, in order to utilize new federal flexibility related to testing of special education students states must have the same "N" size for all student subgroups. The USDE also denied a request to change how sanctions are administered in schools and districts where the special education subgroup is the only group that does not make AYP. PDE had proposed that NCLB interventions in those schools/districts apply only to the special education program. Interventions would have applied to the entire school or district if the school/district did not make AYP for its special education subgroup within two years. The USDE denied this amendment because it conflicts with the legislative intent of NCLB. Additionally, the USDE denied the state's request to utilize what Pennsylvania felt was "a more reasonable timeline" for implementing NCLB sanctions. PDE had proposed a one-year lag between identification of schools that did not make AYP and implementation of sanctions associated with a school's AYP status. The USDE denied the request because it conflicts with the legislative intent of NCLB.

Finally, PDE announced that Pennsylvania has been approved by the USDE to utilize new federal flexibility that allows up to 2% of all students (approximately 20% of special education students) to take an alternative assessment. PDE is in the process of developing this alternative assessment and plans to have it in use by the 2006-07 school year. In order to utilize this special flexibility in the current AYP cycle for which no alternative assessment was available, the State Board adopted a special process that will allow certain special education assessment results to be adjusted for the 2004-05 AYP cycle only. The USDE will issue further guidance on how this flexibility can be accounted for in the 2005-06 AYP cycle. (The 2% of students that will be tested using this alternative assessment are in addition to 1% of all students with the most severe cognitive disabilities already permitted to take the Pennsylvania Alternate Student Assessment (PASA) for accountability purposes.)

Extension of NCLB Bridge Certificate: The Board extended the deadline to apply for the Bridge Certificate Program to July 30, 2006. The Bridge is an alternative path through which special education and middle school teachers may become highly qualified as required by No Child Left Behind. For details about the Bridge Program, see www.teaching.state.pa.us/teaching/site/default.asp?g=0.

Chapter 4 (Academic Standards and Assessment): The Board announced its intention to adopt changes to the regulations governing Academic Standards and Assessment (Chapter 4). The Board added requirements to school districts' strategic planning obligations to reflect recent state program changes. One specific change requires strategic plans to "address how the school entity deploys its most effective and highly qualified teachers in order to meet the learning needs of students who are below proficiency or at risk of not graduating", a change that may impact school districts' teacher assignment practices. Changes to Chapter 4 also address the use of local assessments to determine proficiency for high school graduation. The proposed regulations require PDE to determine whether the proficiency level of a district's local assessment is comparable to the proficiency level of the PSSA. If PDE determines that the local assessment is not comparable, the district must use the PSSA for graduation purposes until a comparable local assessment is approved. Finally, the Board deleted the definitions of PSSA Performance Levels (advanced, proficient, basic, below basic) from Chapter 4. These definitions will be replaced with more detailed descriptions of each performance level that have been developed by PDE. Chapter 4 will now begin the regulatory review process, including opportunities for public comment and legislative review.

Career Education and Work Academic Standards: The Board moved forward Proposed Academic Standards for Career Education and Work. The proposed standards will now begin the regulatory review process, including opportunities for public comment and legislative review. Access a copy of the proposed standards at www.pde.state.pa.us/stateboard_ed/lib/stateboard_ed/One_document.doc.

Alternative Assessment Standards for Students with Disabilities: The Board adopted Alternative Academic Standards for Reading and Math for students with the most significant cognitive disabilities. The standards apply to students who take the Pennsylvania Alternate Student Assessment (PASA) as an alternative to the PSSA. The alternative assessment standards are part of the state's comprehensive plan to address No Child Left Behind and were submitted for Board approval because state law requires the Board to review all materials related to the state's NCLB plan. The alternative standards for reading and math are not part of the Board's formal Academic Standards and, therefore, are not subject to the state's regulatory review process. The alternative assessment standards will become effective upon approval by the U.S. Department of Education.

Private Academic School Accreditation Organizations Extension of Provisional Approval: The Board extended the deadline for provisional approval from September 2005 to December 2005.

State School Fund Request: The Board authorized $25,000 from the State School Fund to support continuation of the Pennsylvania Achievement Gap Effort (PAGE 1 project).

Vocational Education Program Approval Standards: The State Board for Vocational Education approved changes to the Vocational Education Program Approval Standards (Chapter 339). The regulations will now begin the regulatory review process.

Other

The Education Policy and Leadership Center is now accepting applications for the 2005-2006 Pennsylvania Education Policy Fellowship Program (EPFP). Participants in this professional development experience develop a broadened understanding of the policy process and the various aspects of education policy, enhance communication and decision making skills, refine their potential for leadership, and expand their network of professional colleagues through participation in nine full-day seminars, national conferences, and a unique strategic leadership training experience conducted by the U.S. Army War College. The nationally-recognized EPFP program was established more than 40 years ago by the Washington, D.C.-based Institute for Educational Leadership. For more information about the program and an application, see www.eplc.org/fellows.html.

Next week...The National Education Association holds its annual meeting in Los Angeles on July 1-6. For information on these and other upcoming events, see www.eplc.org/calendar.html.

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