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here to go back to the LWVO Education Update Main Page To: LWVO From: Joan Platz Education Update for March 19, 2007 1) Governor Strickland Outlines Priorities in State of the State: Governor Ted Strickland presented the "State of the State" address to a joint session of the Ohio House and Senate on March 14, 2007 paving the way for the Executive Budget to be introduced in the Ohio House on March 15, 2007. In his remarks Governor Strickland outlined budget recommendations aligned to his election campaign called "Turnaround Ohio," and made some bold recommendations regarding health care, early childhood education, vouchers, charter schools, the Tobacco Master Settlement Agreement, and property tax cuts. Overall Governor Strickland stressed that the priority of his administration is to "....keep and create jobs that grow from Ohio's strengths and that are worthy of Ohio's workers." Unfortunately, the budget will be tight. According to the Governor, "There is belt tightening ahead and it's not a pleasant thing to do....Especially when we're already dealing with shortfalls". Out of eighteen cabinet departments, two will receive cuts, nine will be funded with increases for inflation, and seven will receive "reasonable" increases in general revenue fund (GRF) dollars. GRF spending will shrink the first year of the proposed budget, and increase by 2.2 percent over two years. "That's lower than the growth rate in House Bill 66. In fact, it's lower than any budget in the last 42 years." The Governor also announced the creation of the Ohio Government Accountability Plan, to identify state priorities, establish performance agreements with agency directors, measure outcomes, and evaluate the ability of all agencies "to keep, attract, and create jobs worthy of Ohio's workers." To address K-12 education Governor Strickland proposes several changes to improve the equity and transparency of the state's funding system for schools, and ensure that Ohio's students are prepared for jobs in a global and competitive market. "My proposals do not solve all the problems of our schools, but they represent a major advance toward providing adequate and equitable funding for our primary and secondary schools." "Today, the goal is not to outshine Pennsylvania, or Indiana, or Kentucky. We must set high standards to prepare our young people to compete with the world, to win in the Global economy." "We must build educational systems that are fluid enough for creativity and innovations, and agile enough to adapt to the demands of our changing state and world." Governor Strickland's "State of the State Address" is available at http://governor.ohio.gov 2) Executive Budget for FY08-09 Introduced: On March 15, 2007 Governor Strickland, Pari Sabety, Executive Director of Office of Budget and Management, and members of the Governor's Office reviewed the details of the Executive Budget for FY08-09 with members of several organizations and agencies. The budget plan proposes general revenue (GRF) spending of $25.66 billion in FY08 and $27.23 billion in FY09, for an overall growth rate of 4.4 percent over the biennium. Total spending for all funds is $57.26 billion in FY08 and $59.31 billion in FY09. According to the budget briefing documents, the rate of growth in spending in this budget is less than the growth in the current budget, which is 4.5 percent. Spending is below the State Appropriation Limitation (SAL) enacted last year, which would allow an increase of up to 7.1 percent in growth over the biennium. According to the Executive Budget Briefing Document (available at http://www.obm.ohio.gov/) the proposed FY08-09 Executive Budget is balanced and adheres to the tax reforms approved by the 126th General Assembly. It targets very limited resources to the priorities outlined in Turnaround Ohio, such as life long learning, access to health care, investments in Ohio's strengths, and accountable government. "The guiding philosophy of the Strickland-Fisher Administration is to live within our means, and to invest in what matters." p. 1 Briefing Document. The following is a summary of the overall budget outlined in the Budget Briefing Document. The actual language of the budget bill will be available this week, which will provide much more detail and information about the changes in law that will be required to implement Governor Strickland's plan for Ohio. Highlights of the Executive Budget -Lowest budget growth in 42 Years: Allows $411.9 million (2.1 percent) in tax revenue growth over FY07-08; tax collections will decline $40 million over FY08-09; reduces taxes further by $261.5 million through tax changes; applies the Commercial Activity Tax broadly and equally across all sectors of the economy, including the petroleum industry; captures the full sales tax revenue generated from residents of other states who come to Ohio to buy motor vehicles; and prevents shipments of untaxed cigarettes into the state. -Property Tax Relief: Provides $261.5 million in annual property tax relief over the biennium through an enhanced homestead exemption for 775,000 Ohioans over age 65 and home owners with permanent, total disability. Approximately 25 percent of home owners will be able to take advantage of this exemption. -Life Long Learning to Create the Most Competitive Workforce in the World: Makes new investments in early care and education; redesigns funding for primary and secondary education; securitizes tobacco revenues from the Master Settlement Agreement to support the Ohio School Facilities Commission and property tax relief for seniors; proposes a compact with higher education to keep tuition flat and identify new efficiencies; realigns and coordinates workforce programs; utilizes federal dollars from the Workforce Investment Act to support job training; and develops a grant program in the Department of Job and Family Services to encourage job training and creation for youth. -Health Care Access for All Children: Increases affordable access to health care coverage for every child up to age 21; expands Medicaid eligibility for working people with disabilities, pregnant women, and low income working parents; proposes ways to better manage Medicaid; helps Ohioans with disabilities to maintain health coverage while working; and expands the PASSPORT program. -Investments in Ohio's Strengths: Implements new initiatives to support new and growing industries in Ohio and provides new resources for Ohio to compete in the global market. The proposed budget focuses on building a strong energy industry in Ohio which will serve as an economic development driver; expands transportation and communication networks throughout the state; promotes energy development and conservation; and provides a dependable revenue source for local governments. -A Government that is Accountable: Directs state government agencies to become better managers and stewards of tax dollars; recommends that school districts voluntarily participate in regional insurance agreements; adjusts reimbursement rates for health care providers; implements best practices for third party liability in Medicaid; launches a new initiative called Advantage Ohio to review state regulations to eliminate contradictory and obsolete rules; and initiates the Ohio Government Accountability Plan to evaluate state departments and agencies. 3) More Details on the Proposed Budget for Education: The Executive Budget proposes an education budget (all funds) of $10.03 billion in FY08 and $10.39 billion in FY09. General Revenue Fund dollars will provide $6.90 billion in FY08 and $7.21 billion in FY09. The Lottery Profit Fund will provide $672.9 million in FY08 and $667.9 million in FY09 to support education programs. Overall the education budget will realize an increase of $45.48 million in FY08 and $294 million in FY09. Per pupil state funding will increase by three percent each year to $5,565 in FY08 and $5,732 in FY09. (The State Board of Education recommended a per pupil level in FY08 of $5,585 and in FY09 $5,773.) In addition, the biennial budget for FY06-07 126-HB66, included additional funds called building blocks for intervention, professional development, data-based decision making, and professional development, etc. The proposed budget increases building block funds by three percent each fiscal year. The state's share of the foundation formula will increase by 5.5 percent over FY06-07 to 47.5 percent in FY08 and 48 percent in FY09. This will affect the state aid ratio, which is used in the school funding formula to determine state funding for programs such as special education. Because the state share increases, the local contribution for special education will decrease. The following are other changes in the proposed Executive Budget for education: -Holds districts harmless through a restructured and simplified guarantee. According to a printout, 311 districts will receive increases in state funding in FY08 and 371 districts will receive increases in FY09. No school district will receive less funds than the previous year.Ohio School Facilities -Authorizes the securitization of Ohio's tobacco settlement funds of the Master Settlement Agreement and establishes the Ohio Tobacco Settlement Financing Authority. This will generate approximately $5 billion. The funds will be used to rebuild Ohio's schools and provide property tax relief through the expansion of the homestead exemption. $250 million in GRF funds will be available each year for next 20 years due to the savings generated by not having to pay debt services on bonds currently used to support the Ohio School Facilities program.Property Tax Relief and Reimbursements -Expands the Homestead Property Tax Exemption to those over 65 and the disabled, regardless of income, on the first $25,000 of home value. The loss to local school districts will be made up by the state. The number of home owners eligible for the homestead exemption will increase from 220,000 to 775,000 or approximately 25.2 percent of home owners. This will cost $261 million over the biennium.Ohio Core and Education Reform Outlined in the Achieve Report Accountability -Provides the ODE with authority to impose penalties for school districts that do not submit the required data through the EMIS.Community Schools and Vouchers -Places a moratorium on new charter schools.Early Care and Education: The Executive Budget supports an expanded investment in early care and education programs to improve the quality of these programs, increase access to these programs, and strengthen the state's early intervention efforts. Overall the Executive Budget supports a number of initiatives that will improve the quality of early care by expanding access to professional development; increasing the number of specialists; and developing a statewide early care and education fiscal model to provide sustainable funding for quality early care programs in Ohio. The proposed budget also provides for the following: -Increases child care provider rates using federal TANF funding. The new rates will increase revenue for providers by 11.5 percent. ($54.9 million in FY08 and $57.4 million in FY09.)Higher Education: Funding for the Board of Regents (all funds) totals $2.3 billion in FY08 and $2.33 billion in FY09. GRF funds total $2.27 billion in FY08 and $2.31 billion in FY09. Increases the number of Ohioans with college degrees by 230,000 in 10 years, and increases the graduation rate among those who start college by 20 percent. -Creates the cabinet level Chancellor of Higher Education. -Establishes the Higher Education Compact between the state and public institutions of higher education. Directs institutions to realize efficiency savings of one percent in FY08 and three percent in FY09, and increases the state share of basic instructional subsidy by 5 percent in FY08 and 2 percent in FY09, if institutions of higher education maintain zero growth in tuition rates in FY08 and up to 3 percent in FY09.Please Note: More detail about the proposed budget for education is available at the Office of Budget and Management web site at http://www.obm.ohio.gov/. The document on the proposed budget for the Ohio Department of Education includes detailed funding information on thirteen program series, which are further subdivided into specific programs for education. The thirteen program series are Academic Standards and Model Curricula; Educator Quality; Academic Achievement; School Choice; Basic Aid Support; School Operation Support; Special Education; Early Childhood Education; Career Technical Education; Gifted Education: Students At Risk; Adult Education; and State Administrative and Infrastructure Support. More detail on the funding for the program series will be available in the Education Update next week after the language of the budget bill is introduced. 4) 127th General Assembly: The House and Senate will hold sessions this week and many committees, including the House Finance and the Senate and House education committees, will also hold hearings. (See # 6 below for details.) *Last week the House unanimously approved Am. HB 67 (Patton), the FY08-09 Transportation Budget, although lawmakers disagreed over one important component of the bill, the future allocation of $194 million in revenue raised from the Commercial Activity Tax (CAT) on oil and petroleum activity. Governor Strickland supports allocating to the General Revenue Fund the revenue raised through the commercial activity tax (CAT) on oil and petroleum. Some lawmakers, including the Speaker of the House Jon Husted, believe that the Ohio Constitution requires revenue raised on petroleum, even through the CAT, to be earmarked for highway and transportation projects. The debate over the CAT will continue in the Ohio Senate next week, and is expected to carry over into the debate over the proposed Executive Budget for FY08-09. *Hearings continued last week in the House Insurance Committee, chaired by Representative Batchelder, on two other state budgets, HB 100 (Brinkman) - the state budget proposal for the Ohio Bureau of Workers' Compensation (BWC) and HB 101 (Brinkman) - the budget for the Industrial Commission. The BWC budget is $328.9 in FY08 and $329.2 million in FY09, and the budget for the Industrial Commission is $61.8 million in both FY08 and FY09. *The Ohio Board of Regents met last week in Columbus on March 14, 2007 and selected former state Senator Eric Fingerhut as its chancellor. 5) Update on House and Senate Education Committee Hearings: The House Education Committee, chaired by Representative Setzer, met on March 13, 2007. The Committee heard a presentation on the Data Driven Decisions for Academic Achievement project (D3A2), which is a statewide initiative to streamline access for administrators and teachers to data, tools to interpret areas needing improvement, and links to educational content resources aligned with Ohio's academic content standards. The Committee also heard testimony on four bills. Representative Wolpert presented sponsor testimony on HB27, which revises the academic performance rating system for school districts and buildings. The bill would allow a school district currently rated Excellent or Effective to retain that rating with a "conditional" designation added, if the district failed to meet adequate yearly progress for three years in more than one subcategory. Both proponent and opponent testimony was presented on HB66 (Collier) minimum school year. Darold Johnson from the Ohio Federation of Teachers proposed that the bill be amended to mandate that a school week constitute five days; the number of hours for operation of community schools serving students in grades 6-12 be increased from 920 hours to 1001 hours (which is the number required for traditional public school students in grades 7-12), and allow districts to use hours or days to meet school year requirements when schools close due to calamity. Supporting the bill were Executive Director Karin O'Neil of the Ohio Association of Independent Schools and Tom Ash of the Buckeye Association of School Administrators. Proponent and opponent testimony was also presented on two bills regarding the authority of the Ohio Board of Regents and the appointment of the chancellor of the Board of Regents - HB2 (Webster), and the powers of the Board of Regents (OBR) HB85 (Webster). BOR Chairwoman Donna Alvarado spoke in support of HB85 (Webster), which expands the powers of the BOR and gives it more authority over tuition costs. Others testified in support of HB2 (Webster), which will provide the governor with more leverage over higher education and its role in the economic development of the state. *The Senate Education Committee, chaired by Senator Padgett met on March 13, 2007 and heard sponsor testimony on SB2, SB57, and SB89. SB2 (Cates) grants the governor authority to appoint the Chancellor of the Ohio Board of Regents to the Governor. This bill is the same at HB2 (Webster), and allows the governor to appoint the chancellor of the board of regents; appoints the chancellor to the governor's cabinet; and makes the board of regents an advisory board to the chancellor. SB57 (Coughlin) creates the Special Education Scholarship Program. This program would provide public funds to students with Individual Education Plans (IEPs) to receive special education services from other public schools or approved private entities. The Ohio Department of Education is required develop rules to implement the program, evaluate the program, and review special education weights. Similar bills were introduced last session in both the House and Senate, and the House version of the bill, HB 431 (Peterson), was approved by the House Education Committee. SB89 (Gardner) prohibits schools from opening before Labor Day. Senator Gardner presented sponsor testimony on the bill and explained that the bill benefits families and the tourism industry. The bill would not affect school districts with year round school schedules. 6) This Week at the Statehouse: TUESDAY, MARCH 20, 2007 *The House Finance and Appropriations Committee, chaired by Representative Dolan (614-644-5088), will meet at 1:00 PM in room 313. The committee will hear testimony presented by Pari Sabety, Director of the Office of Budget and Management, on the proposed state operating budget for FY08-09. A bill number has not been assigned as yet. *The Senate Finance and Financial Institutions Committee, chaired by Senator Carey (614-466-8156), will meet at 2:30 PM in the Finance hearing room. The committee will approve appointments made by Governor Strickland, and hear sponsor testimony on SB49 (Schaffer) - Expedited Local Partnership Program (school facilities list) and SB98 (Schuler) - Autism Diagnosis Education Pilot Program. *The House Education Committee, chaired by Representative Setzer (614-644-8051) will meet at 4:00 PM in room 116. The committee will hear testimony on HB 27 (Wolpert) - academic performance ratings; HB66 (Collier) - minimum school year based on hours; HB2 (Webster) -allows the governor to appoint the chancellor of the Ohio Board of Regents and makes other changes regarding the Ohio Board of Regents; and HB85 (Webster) - expands the authority of the Ohio Board of Regents. *The Senate Education Committee, chaired by Senator Padgett (614-466-8076), will meet at 4:00 PM in the North hearing room and hear testimony on SB2 (Cates) - appointment of the Chancellor of the Board of Regents. WEDNESDAY, MARCH 21, 2007 *The House Finance and Appropriations Committee, chaired by Representative Dolan (614-644-5088), will meet at 10:00 AM in room 313 to hear presentations from the Department of Education, the Board of Regents, and other state agencies on the FY08-09 operating budget. *The House Infrastructure, Homeland Security, and Veterans Affairs Committee, chaired by Representative Reinhard (614-644-6265), will meet at 2:30 PM in room 114 to hear testimony on HB82 (Chandler) - requires all school buses be equipped with a seat belt assembly for all passengers. THURSDAY, MARCH 22, 2007 *The House Finance and Appropriations Committee, chaired by Representative Dolan (614-644-5088), will meet at 9:30 AM in room 313 to hear testimony from invited agencies regarding the FY08-09 Operating Budget. 7) State Board of Education Meets: The State Board of Education, Jennifer Sheets president, met on March 11,12, &13, 2007. Members welcomed 7th District Representative Heather Heslop Licata to the State Board. Ms. Heslop Licata was recently appointed to the State Board of Education by Governor Strickland, and replaces Tom Sawyer, who resigned from the State Board to replace Kimberly Zurz in the Ohio Senate 28th District. The Quality Middle and High Schools Subcommittee, chaired by Carl Wick, met on March 11, 2007 and had an in-depth discussion on the following topics: 1) the progress so far in the implementation of the recommendations of the Quality High Schools Task Force; 2) implementation of 126-SB 311 (Gardner), the Ohio Core; 3) a review of the work of the Partnership for Continued Learning, Dr. Julie Schaid director, regarding dual enrollment programs; and the calculation of the graduation rate. The School Funding Subcommittee, chaired by Virgil Brown, also met on March 11, 2007 and discussed the committee's next steps after publication of the document "A New Direction for Ohio's School Funding: Designing a System that Relates Resources to Results." The subcommittee discussed several topics for further research and action, including best practices for school/district leadership; dropout prevention; budgeting and resource allocation; data analysis and improvement planning; instructional practices; and governance. The committee is planning an extra meeting possibly in March 2007 to continue discussions about next steps. The Capacity Committee, Sue Westendorf and Carl Wick co-chairs, and the Achievement Committee, Michael Cochran and Steve Millett, co-chairs, met on March 12, 2007. The Capacity Committee discussed legislative recommendations concerning school bus drivers and Educational Service Centers, and the following rules: Rule 3301-21-01 colleges and universities preparing teachers; Rule 3301-24-01 licensing and education programs; Rule 3301-27-02 pupil activity programs; and Rules 3301-83-06, 3301-83-07 and 3301-83-20 concerning school bus drivers. The committee also recommended that the full Board adopt six legislative recommendations regarding school bus driver qualifications. The Achievement Committee discussed recommendations to improve instruction in financial literacy; previewed the proposed Perkins Transition Plan; and considered a resolution of intent to adopt standard scores for alternate assessments in science and social studies in grades 5 and 8, and grade 7 in writing. The Achieve Report Public engagement subcommittee, chaired by Steve Millett and Sue Westendorf, presented information about the twelve regional meetings that will be held to discuss the recommendations included in the Achieve report, "Creating a World-Class Education System in Ohio." The members of the committee include Deborah Cain, Lou Ann Harrold, Eric Okerson, and Ann Womer Benjamin. The meetings are scheduled from 4:00 to 6:00 PM between March 29, 2007 and April 30, 2007. The schedule should be available on the ODE web site soon. The State Board also recognized Ohio's 2006 Milken Educators, Ann Hartmann Cunningham from West Elementary School in Athens City School District, and Julie Herman from Compton Elementary School in Athens City School District. Following lunch the Board heard an update on School Readiness and Early Learning from Eric Okerson and Carl Kohrt, CEO from Battelle. The Board also heard a presentation regarding the Perkins Transitions Plan, and recommended the following State Board of Education positions on bills before the General Assembly: Support HB 66 (Collier) - minimum hours for school instructional day; take no action on SB 57 (Coughlin) - Special Education Scholarship; and oppose HB27 (Wolpert) - change in performance rankings. A Chapter 119 hearing was held on an intent to rescind Ohio Administrative Code (OAC) Rule 3301-54-01 entitled Rule for Determining the Amount of Payment for Contracted Special Education Units, and an amendment of OAC Rule 3301-51-11 entitled Funding for Preschool Special Education. On March 13, 2007 the State Board of Education began its business meeting at 9:00 AM and immediately convened into executive session. When the Board reconvened, Superintendent of Public Instruction, Dr. Susan Zelman, provided information to the Board about her recent visits to schools, and the achievements of the "Schools of Distinction", which must show that 75 percent of students are making academic progress, including student with disabilities. Dr. Zelman also reported that she will be preparing a vision statement on educational reform that prepares students to succeed in the 21st Century, and identifies the assessments that will be needed to benchmark student progress. The Board then took action on nine personnel items and the following resolutions: *Amended Ohio Administrative Code (OAC) Rules 3301-83-06, -07, and -20 related to the qualifications for transportation staff including school bus drivers, medical standards for school bus drivers, and general safety rules for pupil transportation. *Adopted legislative recommendations, which will be forwarded to the Ohio General Assembly, regarding the following: 1) Require all school bus drivers, including those working for both public and private employers, to report to the ODE;*Approved an intent to consider the proposed transfer of school district territory from the Franklin City School District, Warren County, to the Middletown City School District, Butler County. *Approved an intent to consider the proposed transfer of school district territory from the Zanesville City School District, Muskingum County, to the East Muskingum Local School District, Muskingum County. *Approved an intent to adopt standard scores indicative of Advanced, Accelerated, Proficient, Basic, and Limited Skill Levels on the Fifth-Grade Science and Social Studies, Seventh-Grade Writing, and Eighth grade Science and Social Studies Achievement Alternate Assessments for Students with Disabilities. *Adopted the Report-Only Indicators for the Local Report Card for 2006-07 and beyond. *Adopted the document entitled "Poverty-Based Assistance: Findings and Recommendations". *Appointed Richard Reidy to the Educator Standards Board. *Appointed members to the Foreign Language Advisory Council. *Approved the transfer of school district territory from the Lake Local School District, Wood County, to the Eastwood Local School District, Wood County. *Denied the proposed transfer of school district territory from the Mariemont City School District, Hamilton County, to the Indian Hill Exempted Village School District, Hamilton County. *Rescinded OAC Rule 3301-24-02 - Performance-Based Licensure. *Amended OAC Rule 3301-24-03 - Teacher Education Programs. *Presented a Commendation to Senator Tom Sawyer for his service on the State Board of Education. *Presented a Commendation to Susan Tavakolian for her service to the State Board as a member of the Ohio Department of Education staff and designated her as an Executive Director Emeritus. The State Board of Education and the Ohio Board of Regents will hold a joint meeting on March 21, 2007 in the Rhodes Office Tower in Columbus. The next regular meeting of the State Board of Education is scheduled for Monday and Tuesday, April 9-10, 2007, at the Ohio School for the Deaf, 500 Morse Road, Columbus, Ohio. For more information please visit http://www.ode.state.oh.us/GD/Templates/Pages/ODE/ODEDetail.aspx?page=3&TopicRelationID=576&ContentID=23357&Content=26588 9) Bills Introduced: SB 105 (Goodman) Extends the homestead exemption to home owners that have annual incomes of fifty thousand dollars or less, and changes the manner in which the homestead exemption tax reduction is calculated for certain eligible home owners. SB 110 (Boccieri) Requires public and chartered nonpublic schools to test students for dyslexia and related disorders, and provide intervention services to students identified as having dyslexia or a related disorder. HB107 (Patton) - Freezes primary residence taxes for eligible persons 65 or older. 10) Celebrate Arts Day on March 21, 2007: Arts Day 2007 and the 2007 Governor's Awards for the Arts in Ohio will be celebrated on Wednesday, March 21, 2007 in Columbus hosted by Ohio Citizens for the Arts and the Ohio Arts Council. Hundreds of supporters of the arts and arts education will join together to recognize the winners of the 2007 Governor's Awards for the Arts, and thank lawmakers for their continued support for the arts and arts education in the FY08-09 state budget. The following winners of the 2007 Governor's Awards for the Arts will be presented their awards by President of the Senate Bill Harris and Speaker of the House Jon Husted in a lunchtime ceremony: -Arts Administration, Marsha Dobrzynski, Young Audiences of Northeast Ohio, Cleveland -Arts in Education, Dr. Jacquelyn Quay, Hamilton -Arts Patron, James F. Dicke II, New Bremen -Business Support of the Arts, Dayton Power and Light Company, Dayton -Business Support of the Arts, Ohio Magazine, Cleveland -Community Development and Participation, James Levin, Ingenuity bFestival of Arts and Technology, Cleveland -Individual Artist, Bebe Miller, Dancer, Columbus As in the past, students from across Ohio will be performing at the Statehouse throughout the day, and students from several high schools will visit all members of the Ohio General Assembly and thank them for recognizing the personal, academic, and economic contributions that the arts make to individuals and communities. . For more information about Arts Day and Talking Points regarding the FY08-09 proposed budget, please visit Ohio Citizens for the Arts at http://www.ohiocitizensforthearts.org/ |
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