EPLC Education Notebook
Tuesday, July 19, 2005
Enacted Education Legislation
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Congruent with adoption of the FY 2005-2006 state budget, the
General Assembly approved omnibus changes to the school
code through enactment of
Act 46 (House Bill 628).
Many of these school code changes in Act 46 are companion
language to appropriations made in the new state budget. For
instance, Act 46 adds to the school code authorizing language
for new programs included in the budget, such as concurrent
enrollment for high school students and supplemental funding for
school districts that currently spend less than $8,500 per
pupil.
For more information about the FY 2005-06 education budget, as
well as other education-related legislation adopted during the
budget finalization process, see the July 8 edition of the EPLC
Education Notebook at
www.eplc.org/notebook/July8,2005.html.
Here is a detailed review of the omnibus changes made to the
school code by Act 46 (House Bill 628):
* Requires school districts to prepare proposed annual
budgets using the uniform form provided by the state Department
of Education (PDE). On the date of adoption of the
proposed district budget, the school board president must
certify to PDE that the proposed budget has been prepared and
made publicly available using PDE's uniform form. No final
action may be taken on a proposed budget if such preparation has
not occurred. Additionally, the new law requires proposed
district budgets to be made available for duplication upon
request at a reasonable duplication cost;
* Authorizes school districts to reopen their 2005-06
budgets to reflect state allocations;
* Extends the deadline for completing state-mandated
professional development from June 30, 2005 to April
30, 2006 for a select group of teachers who: were certified
prior to May 1, 2001, did not receive required notice of their
continuing professional education compliance status from PDE by
June 2004, and have not fulfilled their mandated professional
development requirements. Also, requires PDE in the future to
mail written notice to educators who have not completed their
mandated professional development hours a year prior to the
educator's compliance deadline and to provide electronic notice
to educators who have fulfilled their professional development
obligations. Finally, the legislation requires educators to
notify PDE of any change of address;
* Budget includes $13.867 million for Teacher Professional
Development for FY 2005-06
* Clarifies the process for evaluating applications for
teaching certificates. The legislation requires PDE to
notify an applicant for a teaching certificate of all
information needed if an application is incomplete. The
application will remain open for one year following such
notification. Additionally, requires PDE to notify an applicant
of all deficiencies in an application if an application is
rejected. Finally, the legislation clarifies which applicants
are subject to the increased grade point average (GPA)
requirements for teacher certification previously adopted by the
State Board of Education. Applicants whose initial teacher
preparation began before October 7, 2000 will be evaluated based
on the GPA in effect on the date of application for
certification. Applicants whose initial teacher preparation
began on or after October 7, 2000 will be evaluated based on the
GPA in effect on their date of graduation;
* Requires payments for children placed in institutions
to be made by the student's resident school district within 30
days of receipt of an invoice from the district in
which the institution is located;
* Establishes accounting, bookkeeping, and auditing
requirements for approved private schools and the state's four
chartered schools for the deaf and blind. Also,
requires PDE to develop interim audit standards within 60 days
that will apply to audits conducted after July 1, 2005 and to
develop permanent audit standards within one year of publication
of the interim standards;
* Expands the number of students eligible for tutoring
services through the educational support services and
educational assistance programs by allowing funding to be used
for kindergarten through twelfth graders. Previously, tutoring
was only available through ninth grade. Additionally, allows
schools to recommend students for tutoring provided through the
educational assistance program even if the student does not meet
current academic guidelines for eligibility;
* Budget includes $70 million for tutoring programs for FY
2005-06 ($4.000 million for Education Support Services and
$66.000 million for the Educational Assistance Program)
* Adds definitions for the state's 2005 math and reading
proficiency targets to the tutoring law;
* Allows school entities to notify parents of the
availability of tutoring services "whenever the school entity
recommends tutoring under the educational assistance program".
Currently, parents must receive notice at the same time they
receive state assessment results;
* Allows state-funded tutoring to be provided during the
school day as long as it does not interfere with a
student's regular classroom instruction and does not supplant
services required in a special education student's
individualized education program. Currently, the state-funded
tutoring must be provided outside of normal school hours;
* Provides for the distribution of state tutoring
funding for students in grades seven through twelve;
* Requires Head Start providers to demonstrate that they
have the ability to serve more children or to provide extended
day services in order to qualify for state funding.
Providers may demonstrate these criteria by entering into
cooperative agreements with school entities. A definition of
"school entity" was added to the section related to the Head
Start Supplemental Assistance Program;
* Prioritizes Head Start funding. Head Start
providers that received a grant in the prior fiscal year are
eligible for a grant in an amount equal to the grant received in
the immediately preceding fiscal year, less any start-up costs.
However, the grant will be reduced if the provider does not
enroll at least 90% of the students it was approved to serve for
that year by March 1. The reduction would be proportionate to
the number of children enrolled;
* Budget includes $30 million for Head Start for FY 2005-06
* Establishes a state grant program to support
concurrent enrollment for high school students. School
entities will receive state grants to defray higher education
tuition costs for students taking courses in core academic
subjects to earn both high school and post-secondary credit.
Supplemental grants will be provided for low-income students to
cover the total cost of tuition, books and fees for which the
student would be responsible (up to 8% of the funds appropriated
for concurrent enrollment may be used for supplemental grants).
Students may not enroll in more than 24 postsecondary credits
per school year. To qualify for grant funds, school entities
must form concurrent enrollment committees which will develop
dual enrollment agreements with higher education institutions
that outline student eligibility and participation requirements.
Private school, home education, charter school and nonpublic
school students may participate in concurrent enrollment
opportunities through their school district of residence (up to
4% of fund allocated may be used for these students). The
legislation also allows up to 4% of funds allocated for
concurrent enrollment to support "early college" high school,
gateway to college and "middle college" high school programs;
* Budget includes $5 million for dual enrollment for FY 2005-06
* Authorizes PDE to use up to $2.875 million of
unexpended, unencumbered funds for Empowerment Districts;
* Authorizes PDE to grant a mandate waiver request
related to transportation of students more than 10 miles by the
nearest public highway if the waiver would be more cost
effective or address student safety concerns. The
transportation would remain eligible for state reimbursement;
* Establishes a new formula for community college
funding. Beginning in FY 2006-07, all community
colleges will receive the same state reimbursement for operating
costs, base supplement and growth supplement that they received
during the previous year. Colleges also will be eligible for an
Economic Development Stipend for courses or programs focused on
occupations that the state annually determines are high
priorities**. Any additional appropriated funding would be
distributed as follows: 75% of the remaining funds would be
proportionately distributed among the colleges as part of their
base supplement; 25% of the remaining funds would be distributed
based on enrollment growth. A different funding formula will be
used for the 2005-06 fiscal year only.
** (The legislation also outlines guidelines by which the
Department of Education will annually identify high priority
occupation programs. High priority programs provide training
for jobs that are in demand by employers or meet regional
workforce needs and have a higher instructional cost to operate.
The Economic Development Stipend that supports these programs
targets the most funding to for-credit, high priority programs
that are high-cost, followed by for-credit, high priority
programs that are not high-cost, and, finally, non-credit, high
priority occupation training courses);
* Budget includes $252.831 million for community colleges
operating expenses, capital expenses, and regional community
college services for FY 2005-06
* Establishes a Community College Capital Fund within
the State Treasury for approved capital projects;
* Reforms the community college auditing process.
Audits will now be conducted by independent accountants and
subsequently reviewed by the state Department of Education.
Previously, the state audited the colleges;
* Increases community college accountability by
requiring annual reporting by the colleges. The
legislation requires PDE to annually collect data about
community colleges' enrollment, student retention rates,
graduation rates, employer satisfaction, student placement into
additional education or employment, and more;
* Requires the State System of Higher Education to
report its financial statements in accordance with the
generally accepted accounting principals prescribed by the
National Association of College and University Business
Officers, the American Institute of Certified Public Accountants
or any other recognized authoritative body, as well as
applicable policy and standards promulgated by the state and the
federal government;
* Budget includes $465.197 million for the State System of
Higher Education for FY 2005-06
* Expands the Educational Improvement Tax Credit
Program (EITC) by $4 million to allow businesses to
donate up to $44 million annually to scholarship organizations
($29.3 million) and educational improvement organizations ($14.7
million). Previously, the EITC program was authorized to
provide up to $40 million in state tax credits to businesses
that make donations through the EITC program;
* Establishes reporting requirements for scholarship
organizations and educational improvement organizations that
receive funding through the EITC program. Scholarship
organizations and pre-kindergarten scholarship organizations
must annually report to the Department of Community and Economic
Development by September 1: the number of scholarships awarded
to pre-K students, to students in grade K through 8, and to
students in grades 9 through 12 during the immediately preceding
school year; the total and average amounts of scholarships
awarded to students in the delineated grade spans; and
scholarships awarded on a county-by-county basis, if the
awarding organization collects such information. Educational
improvement organizations are required to annually report the
name of each innovative educational program that received a
grant and total grants awarded to each program during the
immediately preceding school year; a description of how each
grant was utilized and a description of demonstrated or expected
educational improvements; the names of public schools and school
districts where innovative educational programs were
implemented; and the number of grants made and total amount of
grants on a county-by-county basis, if the organization collects
such information The legislation prohibits the Department of
Education from requiring any other information to be provided;
* Adds a definition for "Current Expenditure per Average
Daily Membership". The definition applies to the Foundation supplement that is part of the Basic Education Subsidy;
* Defines those eligible for small district assistance
as districts with an average daily membership of 1,500 or less
and an aid ratio of .5000 of greater. These districts
will receive a supplement of $45 per average daily membership
for the FY 2005-06 school year;
* Defines the Basic Education Subsidy Funding Formula
for FY 2005-06. Each school district will receive a
minimum 2% increase over the amount received for basic education
in FY 2004-05. The basic education subsidy also includes
special supplemental funding for: Limited English Proficient
Students, poverty, enrollment growth, tax effort, small district
assistance, and a Foundation supplement (temporary special
assistance) for districts that currently spend less than $8,500
per student;
* Budget includes $4.492 billion for Basic Education
Subsidy for FY 2005-06
* Authorizes up to $10.025 million for Intermediate
Unit programs for institutionalized children;
* Defines the Special Education Subsidy Funding Formula
for FY 2005-06. Each school district will receive a
minimum 2% increase over the amount received for special
education in FY 2004-05;
* Budget includes $953.064 million for Special Education
for FY 2005-06
* Penalizes school districts, charter schools,
vocational-technical schools and intermediate units for failing
to file reports on time with the PDE. An institution
will forfeit $300 per day from its state subsidies if it does
not submit its annual financial report, annual budget, and pupil
membership/child accounting reports to PDE within 30 days of the
submittal date established by the Department. Forfeiture will
continue until the institution submits reports that meet PDE's
established criteria. The legislation allows the Secretary of
Education to waive the forfeiture if the Secretary is satisfied
that extenuating circumstances exist. Additionally, PDE may
initiate disciplinary action against a chief school
administrator for failure to submit these reports within 60 days
of the established deadline. Superintendents' letters of
eligibility and administrative certificates held by other chief
school officers may be suspended for one year for a first
offense and may be revoked for a second or subsequent violation.
If a chief school officer is not certified, PDE may take action
to prohibit the individual from being employed in a similar
position, including rescinding any waivers that allow the
individual to be employed;
* Increases the state reimbursement for school
construction and renovation projects. The state
reimbursement rate to school districts for eligible elementary
school projects is increased to $4,700 per pupil (up from
$3,900), secondary school projects will be reimbursed at $6,200
per pupil (up from $5,100), and vocational-technical projects
will be reimbursed at $7,600 per pupil (up from $6,300).
Reimbursements for elementary/secondary buildings will be
calculated based on elementary enrollment and secondary
enrollment. (The reimbursement rate is multiplied by rated
capacity rather than by actual enrollment.) The legislation
also establishes two additional reimbursements for construction
projects that use pre-approved designs from the Department of
Education's school facility design clearinghouse or whose
buildings meet certain environmental design standards.
Districts that select a pre-approved building design or meet
certain environmental design standards will receive an
additional $470 per pupil for elementary schools and $620 per
pupil for secondary schools. Increased reimbursement levels
will apply to all future construction projects and to
construction contracts that were awarded but for which a lease
or general obligation bond was not approved by PDE prior to
January 1, 2005. This is the first increase to the state
reimbursement rate for school construction since 1987;
* Clarifies that no subcontract awarded to a nonprofit
organization to provide services through Pennsylvania
Accountability Block Grants may abrogate provision of a
collective bargaining agreement between the nonprofit and its
employees. Also, amends the authorized use of accountability
block grants to allow tutoring to be provided during the school
day as long as it does not interfere with a student's regular
class schedule or supplant required special education services;
* Budget includes $200 million for Pennsylvania
Accountability Grants for FY 2005-06
* Repeals parts of Chapter 15 of the Workforce
Development Act as they are inconsistent with changes made by
House Bill 628.
Pennsylvania Higher Education Activity
- On Thursday, July 14, the Pennsylvania State System
of Higher Education Board of Governors approved a 2 percent
tuition increase for the 2005-06 academic year at
state-run universities. The $96 increase brings the tuition fee
for resident undergraduates to $4,906 from $4,810, the smallest
increase in seven years and the third smallest increase in
PASSHE's history. The board also increased the existing
technology tuition fee by $25 for in-state students and $38 for
out-of-state students. The Board also elected Kenneth
M. Jarin, a partner in the Ballard Spahr & Ingersoll
law firm of Philadelphia, as its new chairman.
Jarin succeeds Charles A. Gomulka, who served as chairman from
June 2000 to June 2005. Finally, the Board approved an
extension of Chancellor Judy Hample's contract through
July 31, 2008. Dr. Hample was hired by the Board in
June 2001 with a three-year "rolling contract", subject to
annual review, and has been granted extension each of the last
three years. For more information, visit
www.passhe.edu.
- The Boards of Trustees at both The Pennsylvania
State University and the University of Pittsburgh also have
adopted their 2005-06 operating budgets, raising tuition by 5.9
percent and 6 percent respectively for full-time resident
students. The respective tuition increases for
out-of-state students at both Penn State and Pitt total 4.5
percent and 3 percent. Officials from both universities report
they were able to keep tuition hikes down due to minor funding
cuts in other areas.
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.
- This week...The House Education
Committee visits the KidsPeace facility in Orefield on
Tuesday. The U.S. Department of Education
hosts a Teacher-to-Teacher Workshop in Tampa, FL on
July 18-20. The PA Parent Information and Resource
Center hosts a forum on "Planning Ahead: What Parents
Should Know About Adequate Yearly Progress" on Tuesday in
Philadelphia. The National Board for Professional
Teaching Standards hosts its National Conference July
21-23 in Washington, D.C.
- Upcoming Events...The Office of Child
Development and the Pennsylvania Child Care Campaign
will host a conference to celebrate new subsidized child
care eligibility regulations and to discuss both Federal and
state subsidized child care issues. The free event
will be held on August 4 in Harrisburg. Helen Blank, a
nationally known expert on federal child care policy currently
with the National Women's Law Center and formerly Director of
the Children's Defense Fund Early Care and Education Division
will be the featured speaker. For more information or to
R.S.V.P., contact Rhoda Vega at 717-772-2098 or
rvega@state.pa.us by
Monday August 1, 2005.
- Mark your calendar...EPLC's fourth annual
Education Policy and Leadership
Conference will be held March 12-14, 2006 in
Harrisburg. Please save the dates on your calendar! For
information on these and other upcoming events, see
www.eplc.org/calendar.html.
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