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: [email protected]
Daniel Thatcher: [email protected]
Michelle Exstrom: [email protected]
Brenda Bautsch: [email protected]
Lee Posey: [email protected]
The webinar archive and power points will
be emailed to you next week.