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To:     LWVO
From: Joan Platz
Education Update for April 2, 2007

1) 127th General Assembly: 
The Ohio House and Senate are not scheduled to meet this week. Subcommittees of the House Finance and Appropriations Committee will meet to continue hearing testimony on HB 119 (Dolan), the FY08-09 Budget. (See #6  below.)

*Governor Strickland Signs Transportation Budget:  Lawmakers approved HB67 (Patton) - FY008-09 Transportation Budget on March 28, 2007 after a conference committee worked out a compromise between House and Senate versions of the bill.  Governor Strickland signed the $7.8 billion transportation bill on March 31, 2007, but vetoed a provision that allowed community schools to provide their own transportation for their students without establishing a contract with the local school districts.   The conference committee agreed to a controversial $194 million provision regarding the end to an exemption of the Commercial Activity Tax (CAT) on petroleum products. The CAT funds will be directed to the General Revenue Fund as proposed by Governor Strickland's transportation budget as introduced.  The House version of HB67 had sent the money to the transportation fund. The law also eliminates the ability of the tax commissioner to raise the CAT in future years if revenues are lower than projected. The issue regarding the CAT on petroleum products is expected to be debated further in the budget bill, HB119 (Dolan).

*Alicia Leatherman will head the Early Childhood Cabinet which Governor Strickland announced in March 2007. Ms. Leatherman was formerly the executive director of the Ohio Child Care Resource and Referral Association.

*This week the Legislative Service Commission released the Red Books, which outline in detail Ohio laws and rules for each agency and department of state government.  The Red Book for education is over 250 pages long, and provides information about the school funding formulas, policy changes in the budget, and background information regarding policy changes.  The Red Books are available at http://www.lsc.state.oh.us/budgetdocuments.html

2)  110th Congress: 
The U.S. House of Representatives approved a $2.9 trillion federal budget for FY08 on March 29, 2007 (HCR 99). The federal budget is a nonbinding resolution which has been required since the 1974 Budget Act.  It sets targets for revenue and spending, but is intended only to guide Congress as it debates the thirteen separate appropriations measures that allocate appropriations for government agencies and departments.  The budget includes $50 billion for the  State Children's Health Insurance Program (SCHIP), eliminates tax cuts that otherwise would expire in 2010, and reflects new spending priorities for education, children's health, and health care for active-service military personnel and veterans.  The proposed budget does not address the controversial alternative minimum tax.  Congress is expected to take up action on the appropriations measures in May or June 2007.

3)  Reports from the House and Senate Education Committees:
*The House Education Committee, chaired by Representative Setzer, met on March 27, 2007 and heard testimony on HB 27 (Wolpert) - academic performance ratings and HB 85 (Webster) - Board of Regents.

HB 27 revises the law regarding the school performance ratings. Jennifer Economus from the Ohio School Boards Association and George Tombaugh, Superintendent of the Westerville School District testified in favor of the bill, and Dr. Mitch Chester, ODE Associate Superintendent for Policy Accountability testified in opposition to the bill.

HB85 (Webster) expands the authority of the Ohio Board of Regents. Jim Furman of the National Center of Public Policy in Higher Education testified in support of the bill.

*The Senate Education Committee, chaired by Senator Joy Padgett, met on March 27, 2007 and heard a presentation from the Ohio Association of Community Colleges, and testimony on SCR3 (Dale Miller) - No Child Left Behind Reauthorization; SB110 (Boccieri) - testing for dyslexia, SB 118 (Gardner) physical fitness instruction K-6; and SB2 (Cates) - transfers authority to appoint chancellor Ohio Board of Regents.

-Senator Miller presented sponsor testimony on SCR 3, which asks the U.S. Congress to amend the federal No Child Left Behind Act of 2001, to fully fund the act when it is reauthorized, and change the way adequate yearly progress is determined.  According to Senator Miller, NCLB is underfunded by $40 - $70 billion. The method that is used to determine Adequate Yearly Progress should also be changed to account for the level of diversity of Ohio's schools districts.  Some homogenous school districts or ones with low percentages of diverse student groups have advantages over diverse districts with large numbers of students who qualify for free or reduced price lunch; students with disabilities; students from different racial backgrounds, or students who speak English as a second language.

-Senator Boccieri testified in support of his bill, SB110 - Dyslexia Testing, which would require schools to test students for dyslexia and related disorders.  According to his testimony, approximately 15 percent of Ohio's population is affected by dyslexia or a related disorder, but schools do not routinely identify students with the disorder.

-Senator Gardner provided sponsor testimony on SB118 - physical education instruction, which would require daily physical education instruction in grades K-6, and require Ohio to adopt standards for physical education.

-The committee also continued to hear testimony on SB2 (Cates), which transfers the appointment of the Chancellor of the Board of Regents to the Governor.  Testifying in favor of the bill were Nick Lashutka from the Ohio Business Roundtable, Dr. Roy Church, from the Ohio Association of Community Colleges, and Bruce Johnson, president, Inter-University Council of Ohio.

Testifying in opposition to the bill were Judy Kaufman, former member the Legislative Services Commission, James Tuschman, Ohio Board of Regents, James Furman, a member of the board which created the Board of Regents, Bruce Beeghly, vice chair of the Board of Regents.

4)  OBM Director Answers Budget Questions: 
The director of the Office of Budget and Management, J. Pari Sabety appeared before the House Finance and Appropriations Committee, chaired by Representative Dolan, on March 28, 2007 to answer questions regarding the Executive Budget Request outlined in HB119 (Dolan).  Last week Director Sabety presented an overview of the budget recommendations for FY08-09 proposed by the Strickland administration, but members of the Finance Committee had to hold their questions until this week.

After clearing up some discrepancies between the OBM's Blue Books and the actual language in HB119, Director Sabety responded to a number of questions regarding the policy decisions behind the proposed budget line items, including questions about the use of one-time revenue sources to balance the proposed budget, health care and Medicaid funding, and some questions that referred back to issues raised during the 2006 election campaign regarding tax breaks for the wealthy and funding schools.

Specifically, several questions were raised about Governor Strickland's plan included in HB119 for funding schools, and whether or not Director Sabety (and Governor Strickland) believed the proposed changes would make the school funding system constitutional. Director Sabety responded that it is up to the courts to decide the constitutionality of the system, but steps were being taken in the proposed budget to make the system more equitable and less dependent on property taxes.

This line of questioning became the most heated of the morning session as some committee members referred to Director Sabety's answers as "evasive".  Those comments led to an exchange between Chairman Dolan and the Democratic committee members, who believed that some of the comments being made were disrespectful to Director Sabety and Governor Strickland.

The following are some of the questions and responses to Director Sabety from members of the committee during the two hour session:
-Representative Webster replied to one answer by Director Sabety regarding EMIS that he had hoped that there would be an overhaul of EMIS (Electronic Management Information System) in the budget because it causes problems.

-Asked by Representative Hottinger to justify the use of one time funds to balance the budget, David Ellis, Assistant Director OBM, explained the one time funds being used in this budget in comparison to previous budgets.  One time funds in the proposed FY08-09 budget total $483.7 million, compared to $469.6 million in FY06-07, $2.99 billion in FY02-03, and $3.8 billion in FY04-05.

-Representative Peterson commented that he would rather see the Homestead exemption means tested.

-In a reply to Representative Garrison's question regarding categoricals for special education, Director Sabety answered that there were increases in the foundation line item.

-Representative Webster asked if the Ohio School Facilities would be sunset in 2020?  Director Sabety replied that there was no language that relates to the longevity of OSFC in HB119.

-Representative Budish asked about the confidence Director Sabety had regarding the $5 billion securitized funds from the tobacco Master Settlement Agreement.  Director Sabety replied that ten other states have proceeded to securitize MSA funds, which will protect the future stream of revenue for these funds.

-Representative Jones asked why the Reduction in Force for financial reasons was removed.  Director Sabety replied that it was redundant, since the statute already allows school districts to reduce personal for other reasons.
5)  ODE Presents Overview of the Proposed Budget: 
Superintendent of Public Instruction, Dr. Susan Tave Zelman, and several representatives from the Ohio Department of Education led the members of the House Subcommittee on Primary and Secondary Education through the education components of HB119 (Dolan), the Executive Budget Request for FY08-09.  Members of the subcommittee include Representative Schlichter, chair, Representative Strahorn, ranking member, and Representatives Peterson, Coley, and Garrison. The following are highlights from the written presentations:

*Dr. Zelman, Superintendent of Public Instruction:  The Executive Budget request for FY08-09 does the following:
-Follows a SBE recommendation to eliminate all guarantees except for transitional aid, which will simplify the formula and allow districts to better predict future funding.

-Supports a pilot project to identify expenditure patterns in schools.

-Supports SBE changes in poverty based assistance which will allow districts more flexibility, and targets more funding to schools with the highest concentrations of need.

-Provides 3 percent per-pupil increases each year in foundation funding, the largest hike since FY 2002.

-Continues investments in professional development.

-Increases funds for public preschool.

-Seeks changes in the work requirements to expand eligibility for TANF funded Early Learning Initiative.

-Continues supports for the state assessment system.

-Includes funding to support career-technical education and innovative programs for high schools to help increase the graduation rate.

-Provides more support for all day Kindergarten, but not a SBE recommended levels.

-Provides a level of operating funds for the ODE that are below FY03 levels.

"I acknowledge that this was a difficult budget for the administration to develop because of the tight economy, and I appreciate the fact that the budget includes many of the State Board's policy recommendations."

"Ultimately, I dream of the day when school district superintendents no longer have to spend a significant amount of time raising money to operate their school districts."
*Kelly Weir, Associate Director of Budget and Planning:
-1.8 million students are being served in Ohio's educational systems. This includes  13 percent of students with disabilities; 16 percent of students who are gifted; two percent of students who are limited English proficient; and 22 percent of students who live in families that are at or below 100 percent of the federal poverty level, which is $20,650 for a family of four.

-42.7 percent of funds for education are state funds; 48.8 percent are from local sources; and 8.5 percent are federal funds. Total funds are $16 billion each year (state, local, and federal).

-Most General Revenue funding is formula driven distributions or entitlements.
"The largest federal spending programs are Individuals with Disabilities Act (IDEA) funding for special education students at $492 million; Title 1 funding for economically disadvantaged students at $410 million; and various food related programs such as School Lunch and School Breakfast at $365 million."
*Paolo DeMaria, Associate Superintendent for the Center for School Finance:
-Every district is impacted differently by the changes proposed in the Executive Budget.

-The Executive Budget continues to support the add on "building blocks", which were funded in the last budget.  "These add-ons amount to about $48 per pupil in the current fiscal year and would grow to $49.38 in FY08 and $50.90 in FY09.

-Supports the recommendation to end the second ADM count in February.
"The "snapshot" intended to be represented by a February count will be almost completely unreliable, and given the current structure of guarantees, it will have minimal funding impact."

-Changes in parity aid will add $3 million in FY08 and $36 million in FY09 to the cost of the program.

-Places in permanent law a fairer methodology for funding transportation, which will be implemented in future years.

-Recommends $14 million per year for school bus purchase allowances, which is flat funded.

-145 districts will receive gap aid.
*Mitch Chester, Senior Associate Superintendent for Policy and Accountability.
-Adds $1.6 million each year for the value -added progress dimension, which will be a new component of the local report cards beginning with the 2007-2008 school year.
-Includes $3 million in each year to train teachers and administrators to use local report card data to improve classroom instruction.
*Lou Staffilino, Associate Superintendent for the Center for the teaching Profession:
-"Research shows five years of effective teaching can completely close the gap between low achieving students and others."
-Supports National Board Certification of teachers in Ohio with $9.3 million in FY08 and $10.3 million in FY09 to fund application fees and stipends.
-Supports Entry Year Teachers, but the amount of the stipend will be reduced to $600 in FY08 and $500 in FY09, and may require districts to use local funds.
-Supports Entry Year Principals
-Supports professional development in reading, mathematics, and science
-Supports the ongoing work of the Educator Preparation and Eductor Standards Board.
-Supports Ohio Core in intensive training, ESC Teacher Preparation, supplemental Postsecondary Enrollment Options, Faculty on Loan.
-Supports the Teacher Advancement Program pilot project, which provides an integrated model for the structure of teaching and learning within schools.
*Jane Wiechel, Associate Superintendent for the Center for Student, families, and Communities:
-"Quality early education programs pave the way for helping all children enter kindergarten ready for success.  For many of our poorest children, quality early education service are an essential step to closing the achievement gap before they arrive at the kindergarten door."

-There are approximately 306,240 three and four year old children in Ohio.  More than 60 percent will spend at least some time in out of home care by age five.

-Approximately 41,781 children have received services through the ELI

- Early Learning Initiative (9,869 children); the Early Childhood Education grant program (8,912 children); and preschool special education (23,000 children).  Federal Head Start provides services to 36,555 children.

-The Executive Budget changes for ELI will make a significant difference in the results of the program.

-The Executive Budget increases slightly the number of preschool units for special education preschool.  (20 more units each year.)
*Jane Wiechel, Associate Superintendent for the Center for Student, families, and Communities:
-More than 380,000 students are eligible for intervention services.

-The Executive Budget includes $437.5 million for Poverty-Based Assistance and a new program for closing the achievement gap, which 31 districts will receive.
*Janet Schilk, Director of Educational Reform in the Center for School Improvement:
-Supports Alternative Education Challenge Grant, which provides funds for school districts to develop alternative education strategies for at-risk students with community partners.  117 initiatives are currently in operation and 21 in urban districts.

-Supports the Center for Learning Excellence at OSU
*Todd Hanes, Executive Director for the Office of Community Schools;
-There are 306 community schools and 69 sponsors in 33 Ohio counties serving more than 76,000 students.  Funding totaled $529 million in FY07.

-"The overall academic performance of community schools has not met expectations."

-"At no point should a choice option be a poor quality choice option."

-There are more than 20 changes to community school law in the Executive Budget.

-"The proposed change may remove Ohio's community school program from complying with the federal definition of a charter school, thus presenting a potential loss of federal dollars."

-Eliminates parity aid and community outreach and dropout prevention portions of Poverty-Based Assistance for community schools; makes community school ineligible for closing achievement gap subsidy; funding for internet based schools are cut by 60 percent.
6)  This Week at the Statehouse:
TUESDAY, APRIL 3, 2007
The House Finance and Appropriations Committee, Subcommittee on Primary and Secondary Education, chaired by Representative Schlichter, will meet at 9:00 AM in room 113 to hear testimony regarding the biennial budget (HB 119 - Dolan) from the Ohio School Facilities Commission; eTech; School for the Blind; and the School for the Deaf.

WEDNESDAY, APRIL 4, 2007
The House Finance and Appropriations Committee, Subcommittee on Higher Education, chaired by Representative Webster, will meet at 7:30 AM in room 121 to hear testimony regarding the biennial budget (HB 119 - Dolan) from the Cultural Facilities Commission and the Ohio Board of Regents.

The House Finance and Appropriations Committee, Subcommittee on Primary and Secondary Education, chaired by Representative Schlichter, will meet at 9:00 AM in room 113 to hear testimony regarding the biennial budget (HB 119 - Dolan).

The House Finance and Appropriations Committee, Subcommittee on Human Services will meet at 9:30 AM in room 313 to hear testimony on the budget from the Department of Job & Family Services regarding Family Stability; TANF: Food Stamps etc; Child Support, Children's Services'; Child Welfare, Child Care, Foster Care and Adoption.

THURSDAY, APRIL 5, 2007
The House Finance and Appropriations Committee, Subcommittee on Higher Education, chaired by Representative Webster, will meet at 8:00 AM in room 121 to hear testimony regarding the biennial budget (HB 119 - Dolan) from the Ohio Board of Regents.

The House Finance and Appropriations Committee, Subcommittee on Primary and Secondary Education, chaired by Representative Schlichter, will meet at 9:00 AM in room 113 to testimony regarding the biennial budget (HB 119 - Dolan).

TUESDAY, APRIL 10, 2007
*The House Finance and Appropriations Committee, Subcommittee on Primary and Secondary Education, chaired by Representative Schlichter, will meet at 9:00 AM in room 113 to hear all testimony on the biennial budget (HB 119 - Dolan).

WEDNESDAY, APRIL 11, 2007
*The House Finance and Appropriations Committee, Subcommittee on Primary and Secondary Education, chaired by Representative Schlichter, will meet at 9:00 AM in room 113 to hear all testimony on the biennial budget (HB 119 - Dolan).

THURSDAY, APRIL 12, 2007
*The House Finance and Appropriations Committee, Subcommittee on Primary and Secondary Education, chaired by Representative Schlichter, will meet at 9:00 AM in room 113 to hear all testimony on the biennial budget (HB 119 - Dolan).

7)  News from the ODE:

-The State Board of Education and ODE are holding a series of regional meetings throughout the state in April to discuss the report "Creating a world-Class Education System in Ohio".  This report was issued in February 2007 by Achieve, Inc., and benchmarks Ohio's education system against the best practices in the world. Ohio is the first state in the nation to participate in an international benchmarking study, which was conducted by Achieve, Inc., and McKinsey & Company. The State Board will consider information in the Achieve report and the results from these regional meetings to inform discussions at its annual June retreat.

For information about the meeting times and locations, please visit http://www.ode.state.oh.us/GD/Templates/Pages/ODE/ODEDefaultPage.aspx?page=1

-Superintendents and community leaders are invited to attend the Ohio International Summit for Education on April 26, 2007 at the Ohio Historical Center in Columbus. The summit will engage Ohio leaders from education, business, foundations and government in developing a strategic educational response to the challenges and opportunities posed by globalization and technological change.

Featured speakers include Ohio's First Lady Frances Strickland and Sir Michael Barber, former advisor to British Prime Minister Tony Blair and co-author of Achieve's report on Ohio. In addition, the summit includes a panel of leaders from businesses and industries that have been successful in marketing Ohio products abroad. They will share their perspectives on the skills students need to succeed in the 21st century.

Registration for the event is free. Superintendents and community leaders with Ohio education licenses may register by logging into STARS. Business and community leaders who do not hold Ohio education licenses may access a registration form by contacting Meg Grass at mathilda.grass@ode.state.oh.us. For general information about the summit, contact Eric Calvert at eric.calvert@ode.state.oh.us.

8)  Bills Introduced the Week of March 26 -30, 2007

HB 128 (Bacon) Creates the Autism Diagnosis Education Pilot Program and provides funding for the Pilot Program by making an appropriation for the biennium beginning on July 1, 2007.

HB 133 (Hughes) Grants tax credits to businesses that provide internships to students attending Ohio's colleges and universities and that hire former interns.

HB136 (Raussen) Provides payments for classroom facilities projects in lieu of participating in other state programs for high wealth schools.

SB130 (Spada) Permits schools to count time in session to make up calamity days for 2006-2007.

SB131 (Fedor) Requires State Board of Education to adopt instructional standards in physical education.

9)  Advocates Ask Lawmakers to Support the Arts: 
Advocates for the arts testified before the House Finance and Appropriations Subcommittee on Higher Education, Representative Shawn Webster chair, on March 27, 2007 regarding the FY08-09 Executive Budget.  Speaking before the subcommittee were Julie S. Henahan, Executive Director of the Ohio Arts Council, Rick H. Jones, Executive Director of the Fitton Center for Creative Arts in Hamilton, OH, and Kathleen Cerveny, Program Director of the Cleveland Foundation.

Director Henahan spoke on behalf of the Ohio Arts Council, Susan Sofia chair, and focused her testimony how the "...arts mean business for Ohio's economy and the importance of arts education for Ohio's future workforce."

According to the testimony the arts support Ohio's economy, enhance Ohio's quality of life, attract knowledge workers to Ohio, and through arts education, prepare the workforce of tomorrow.

"During the last 42 years the state has consistently made this strategic investment of public dollars through the OAC to support the health of Ohio's economy, education and culture."

"Ohio Arts Council grants are, in fact, matched by public or private and federal dollars on an average of 45 dollars to every one state dollar."

"In fiscal year 2006 the Ohio Arts Council supported nearly 600 artists, arts organizations, schools and arts activities with $8.8 million.  This investment in the arts yielded nearly a $400 million return through matching funds.  The Ohio Arts Council helps make money for the state!"

Rick H. Jones, Executive Director of the Fitton Center for Creative Arts in Hamilton, OH thanked members of the Ohio General Assembly for their past support of the arts through the Ohio Arts Council budget. He also requested that the committee restore the Arts Council budget to the 2000-2001 level of $32,247,900.  The requested increase would enable the Arts Council to "..reach more artists and arts and cultural organizations, to serve more people, and to provide services and resources to us statewide in big cities and small towns, on the rivers and in the hills."

The testimony highlighted the achievements of arts education programs such as the SPECTRA+ program, which is an arts based school reform program that has remarkable data showing student improvement in reading and math.  According to an evaluation of the program, which is soon to be released, "The children in the arts (SPECTRA+) program showed significant gains in their creative thinking, appreciation for the arts, and certain areas of self-esteem when compared to control group children."

Kathleen Cerveny, Program Director of the Cleveland Foundation testified that "The Ohio Arts Council and the public funds it provides are crucial partners for us in the system of support for our cultural community."

"In Northeast Ohio alone, art and culture directly support 4000 good jobs and generate $1.3 billion in regional economic activity each year."

Ms. Cerveny also emphasized the need for Ohio to compete in the global economy, and prepare workers who can think and perform outside the box.  "The high concept, creative worker will fuel the economy of this new age.  And there is nothing that supports, expands and literally teaches high concept skills better than the arts."

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