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Legislative Update

December 8, 2011

Prepared by: Dodie J. Wellshear, Government Relations Consultant

 
 
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LEPC sends education recommendations to 2012 Legislature

 

The Legislative Educational Planning Committee (LEPC), comprised of both House and Senate members, prepared final bill recommendations for the 2012 legislative session. Dale Dennis presented a number of potential issues and choices for the committee to consider. Among the considerations presented, along with the committee's recommendations, are the following:

  • BSAPP - Dale reminded the committee that the statutory BSAPP is $4,492, while the Governor's recommendation is just $3,780. He also prepared a chart showing BSAPP with the Consumer Price Index applied: $$3,600 in 1992 would be the same as $5,809.80 in 2011; $4,492 today would be the same as $2,783.43 in 1992; and $3,780 today would be the same as $2,342.25 in 1992. Further, he told the committee if they chose to increase the base from the governor's recommendation, the cost is about $68 million per $100 added to the BSAPP. 
    • LEPC Recommendation: $3,780 should be the minimum BSAPP passed by the Legislature.     
  • Implementing SB 21, Uniform Reporting System - The 2011 Legislature passed a SB 21, which requires the KSDE to develop and maintain a uniform reporting system for receipts and expenditures for school districts to begin on July 1, 2012. As this was passed literally in the wee hours of the final day of the session, there was no appropriation granted for implementation, which Dale estimates at $50,000.  
    • LEPC Recommendation: Recommend Supplemental Appropriations Bill to cover expenses for implementing SB 21.   
  • Contingency Reserve Fund - KSA 72-6426 provides that the Contingency Reserve Fund will drop from 10% to 6% on July 1, 2012.  
    • LEPC Recommendation:Introduce legislation extending the 10% until July 1, 2015.     
  • KPERS Working after Retirement - The current provision of KSA 74-4937 allowing teachers and administrators to work after retirement, without the $20,000 cap, is set to expire July 1, 2012.  
    • LEPC Recommendation:Introduce legislation to extend current provision until July 1, 2015.         
  • Special Education, SB 111 - This bill changes the starting date of the portion of the special education school finance formula that determines the minimum and maximum amount of special education state aid a school district may receive. The provision now is set to go into effect for the 2012-13 and 2013-14 school years and ends on June 30, 2014. (Note: The effective date of this bill has been delayed in each of the past two legislative sessions, because so many - including USA/Kansas - have testified they consider it to be very problematic public policy.  
    • LEPC Recommendation: Introduce legislation to repeal this law entirely. (The committee noted that it has been proven now by those testifying against it that it is clearly not good public policy, so it's time to just get rid of it altogether.       
  • Computing Supplemental General State Aid (LOB) - KSA 74-6433d provides that this aid is to be computed by multiplying $4,433 by Weighted Enrollment (minus special education), then adding 2008-09 Special Education amount. Dale noted that when special education appropriations exceed the 2008-09 amount, the computation will change to the current year's allocation for the school district. This will create some increases or decreases for some districts.  
    • LEPC Recommendation:Introduce legislation allowing districts to choose the 2008-09 Special Education amount or the current year's amount, whichever is higher.        

The LEPC declined making recommendations regarding increasing the Supplemental General State Aid LOB (low valuation districts' equalization) and computing LOB/Bond & Interest State Aid with increased Virtual School enrollment, as highlighted by Dale.

 

Governor's plan receives tepid LEPC response

 

Beginning with his opening salvo that the "current school finance formula is broken and unsustainable," the governor's policy director, Landon Fulmer, faced an expressed mix of interest, concern, and skepticism over the new Excel in Education school finance plan currently being promoted by Governor Brownback's office. A summary of the Governor's plan, accompanied by a Q&A summary are available on the USA|Kansas website.

 

A chief concern of the committee was that no district-by-district financial runs have been provided yet that show the specific financial impact on school districts statewide. As committee chairwoman Sen. Jean Schodorf (R-Wichita) said, "The devil is really in the dollars!" Fulmer said he hopes to have that information ready for the State Board meeting next week. The committee asked to be provided with that information as well.

 

Much of the focus of Fulmer's presentation - and of great interest to LEPC members - was his assertion that no school district will get less funding than they do currently under the governor's proposed plan. He said this concept has changed slightly since he began making this presentation in that there will be what he referred to as a "perpetual hold-harmless" provision in the "baseline per pupil."

 

Sen. John Vratil (R-Leawood) noted that it appears this formula will cost more and Fulmer responded that was indeed the case. When Vratil asked how the governor planned to raise the necessary revenues, Fulmer answered that the State General Fund is looking better and they anticipate there being enough revenue available to make the transition without raising taxes.

 

Rep. Steve Huebert (R-Valley Center) said a critique he'd heard of the plan is that it would cause local taxes to increases, although he couldn't understand how that would be. Fulmer stated that "schools would not get less funding under this, but the increased local control will allow them to raise taxes, but some may choose to lower them too."

 

Upon questioning from Sen. Vratil regarding the operating premium block grant and the at-risk block grant, Fulmer responded that he's now thinking of blending these together. As he's presented to administrators across the state, he said he's come to realize these aren't as separate as they seemed to be when he initially looked at it.

 

The committee ended with a request for further details, especially the financial printouts, as they become available.

 

"Atta-boy!" to Doug Powers

 

Doug Powers, superintendent of Maize USD 226, provided an excellent presentation on the particular challenges of growing school districts, as requested by the committee chairwoman. However, he went much further by providing a look at the common challenges - and potential opportunities - faced by school districts statewide. While he highlighted special grants and programs their district is utilizing to address specific needs in his district, he focused too on the growing impasse between meeting increased outcome/performance expectations and the significant decreases in state/federal funding.

 

USA|Kansas' lobbyist nearly jumped out of her seat and hugged him, though, when he responded to a question by Sen. Ruth Teichman (R-Anthony) asking what his response was to the governor's office's assertion that the formula is broken and what Doug would recommend regarding the formula: "I basically like what we have now, but would like it to be funded fully...and to keep it equitable." Many, many thanks and kudos to Doug for stating so simply and directly the USA|Kansas legislative position.

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