iowa school finance, iowa economic and education comparability: and advocacy for adequate and timely...
TRANSCRIPT
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Iowa School Finance, Iowa Economic and Education Comparability: and Advocacy for Adequate and Timely
School Funding
ISFIS/AEA 267 Superintendent Meeting
Jan. 7, 2015
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Pre-thinking
• What’s one thing the legislature should do for your school, staff and students as the 2015 Session begins?
• ________________________________
• ________________________________
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Agenda
• State of Iowa Budget• Budget considerations in times of uncertainty• Mapping tools to help tell your story• State of Iowa Economy• Comparison of Education Funding• Advocacy Actions that will make a difference
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State of Iowa General Fund
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• CRF = $522.3M• EEF = $174.1M
Source: Iowa Legislative Services Agency Graybook, end of session analysishttps://www.legis.iowa.gov/docs/publications/EOS/26076.pdf
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Source: Iowa Legislative Services Agency Graybook, end of session analysishttps://www.legis.iowa.gov/docs/publications/EOS/26076.pdf
FY2015 Surplus:•$660.0 million
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State’s Cash Position
• Current Cash position: north of $1B– CRF full at $522.3 million– EEF full at $174.1 million– Surplus for FY 2015 $660.0 million– 5.6% revenue growth YTD through 1/5/15
• Forecast of state financial stress in a year or two– Due to legislative actions (property tax relief and others)– If the economy is healthy but the state budget isn’t growing, what’s the problem?
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Current State of State Revenues
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Jan. 2, 2015 Monthly Revenue Memo LSA to Legislature https://www.legis.iowa.gov/docs/publications/MM/615723.pdf
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Comments on Receipts through 12/31/14
• December 2014 net General Fund revenue was $109.8 million (23.5%) above the December 2013 revenue level. YTD net tax receipts are $182.1million (5.8%) more than FY 2014. ($26 million due to timing of Thanksgiving holiday sales taxes, effectively explaining both the Nov. dip and the Dec. recovery)
• Major sources of tax revenue and their contribution to the FY 2015 change include:– Personal income tax (positive $92.9 million, 5.4%)– Sales/use tax (positive $77.1 million, 5.8%)
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• Big 3 are strong through 1/4/15
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https://www.legis.iowa.gov/publications/fiscal/dailyReceipts
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• Refunds are down 4.2% through 1/4/15• Net Receipts are up 5.6%• REC estimate set on Dec. 9: – Revised FY 2015 to 5.6% ($361.5 million)– Set FY 2016 growth of 4.8% ($328.2 million)
• Overall, healthy if not spectacular revenue growth
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Jobs (reported in MRM)
• Iowa nonfarm employment was reported at 1,579,100 for the month of November (not seasonally adjusted), 17,300 higher (1.1%) than November 2013.
• Employment growth contributes to growth in income tax and sales tax.
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Certified Budget Considerations with Unknown SPG
• Preserve Options – Tax rates can go down, but not up after certification – there is no one size fits all solution. Depends on your particular situation.
• Plan scenarios (worst to best case, least to most likely)• Budget guarantee creates temporary certainty (at least a floor) for one year
• Do you have sufficient UBA to proceed with bargaining and budget setting regardless of what the state does in the next 60 days?
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Across-the-Board Cuts
• Policy Question: Is it more important to set a low cost per pupil to avoid an ATB cut or to set a higher cost per pupil and risk the ATB cut?
• __________________________________• __________________________________• __________________________________
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Across-the-Board Cuts
• Policy Question: Is it more important to set a low cost per pupil to avoid an ATB cut or to set a higher cost per pupil and risk the ATB cut?
• In an ATB cut, schools keep spending authority, cash withheld
• Consider impact on categorical areas• Are your cash reserves healthy now?• Don’t confuse ATB cut with generally insufficient funding
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Maps
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Maps• State Penny Extension– Assumes an additional six years of bonding capacity between 2029 and 2035.
– In addition to existing bonding capacity through 2029
• State funds ISL Shortfall– Amount varies by district, some see a smaller shortfall, others larger (per student) because of the way the proration formula penalizes property poor districts
– Total cost: $72 million (adds cash and spending authority)
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Economic Comparability
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Per Capita Personal Income
2013 2012 2011 2010 2003
Iowa $45,114 $43,935 $40,470 $42,040 $29,828
National $44,543 $43,735 $41,663 $39,937 $31,472Iowa Rank 22 24 25 28 33
www.bea.gov Highest ranking among the states for Iowa in years and two consecutive years higher than national average.
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Iowa’s growth of 3.2% (2012-13) ranked 9th in the nation and is in the highest quintile.
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In 2011, Iowa ranked 24th in the nation in Median Household Income, with two consecutive years above the national average. LSA FACTBOOK quoting U.S. Bureau of the Census
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Source: www.taxfoundation.org Tax Foundation calculations based on data from the Bureau of Economic Analysis, the Census Bureau, the Council on State Taxation, the Travel Industry Association, Department of Energy, and others.
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Sum it Up
• Is this Heaven? No, it’s Iowa. • We’ve recovered from the economic downturn better than most states.
• Education funding will keep the economy moving along and build a solid workforce.
• Do you think Iowa can afford to commit to funding education adequately (and timely)?
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Education Funding Comparability
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Public Education Coalition Funding Fact of the Week
• Joint effort of AEAs, IASB, ISEA, SAI and UEN• April 24 Issue has link to the entire set• http://us5.campaign-archive1.com/?u=e0acb6236d9a5dbd136a38ef4&id=948ddcee87&e=2570288da8
• Let’s take a look at some of the data:
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Source data: Iowa Legislative Services Agency 2013 FACTBOOK https://www.legis.iowa.gov/docs/publications/FCT/2014/25037/25037.pdf
$1,647 below the national average
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Poverty• Iowa’s funding for
at-risk students and dropout prevention resources, combined with targeted grant funds for high-needs schools soon to be appropriated in July 2015, translates into a 9.8% additional funding commitment for low-income students.
• The national average investment is an additional 29% funding per pupil beyond the base for low-income students. Most states provide an additional 20-25%.
Source data: Free and Reduced Lunch Percentage Count data from Iowa Department of Education BEDS data collection. National statistics from American Institutes for Research, Study of New Funding Method for Nevada Public Schools, Sept. 25, 2012.
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English-Language Learner FundingDuring the 2013 interim, an ELL task force met and studied needs of students, best practice and funding considerations. In their report, they recommended “weighted funding closer to the national average by increasing from .22 to .39 through a phase-in formula over a three-year period.”
Source: Iowa Department of Education, Bureau of Information and Analysis, Basic Educational Data Survey and EASIER
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As Special Education Costs Increase,So do Deficits
LSA Issue Review: “An allowable growth rate of 0.0% in FY12 impacted FY12 balances negatively.”
The FY13 special education deficits in this chart shows the trend continues.
Legislative Services Agency, Fiscal Division, Issue Review, Dec. 12, 2013, State School Aid Funding for Special Education
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Education in Iowa gets a Smaller Slice
• The National Association of State Budget Officers (NASBO) State Expenditure Report analyze all state expenditures excluding bonds (not just general fund.) In their analysis on Table 5, page 11, titled State Spending by Function, as a Percent of Total State Expenditures, Fiscal 2012
• Iowa Elementary and Secondary Education for FY 2012 was 16.8% of total state spending. That compares with an average of 18.9% in the plain states region in which Iowa is categorized and well below the national average of 20.0% for all states.
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Education in Iowa gets a Smaller Slice
The National Association of State Budget Officers (NASBO) State Expenditure Report
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Iowa’s % change in spending per student, inflation-adjusted, FY08 to FY14, is down $641 per
student
• Iowa experienced -11.7% change in spending per student, inflation –adjusted, since 2008
• Only 10 states lowered spending more than Iowa
• Study concludes Iowa has lost $641 per student, inflation-adjusted, since 2008
• Increases in per student spending this year don’t fully compensate for the prior cuts: Iowa’s change in spending per student, inflation-adjusted, FY 13 to FY 14 is $23
Center on Budget and Policy Priorities, May 20, 2014 New study looking at all spending.http://www.cbpp.org/cms/?fa=view&id=4011
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Source: NCES data adjusting for cost of living differences
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Source: NCES data adjusting for cost of living differences
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It’s not the Money, it’s what you do with it. . . .
• We often hear push back on the request for adequate funding with the statement, “we shouldn’t just throw more money at the problem.”
• What does education spending buy? Or put it this way,
• If your district had $1,657 more per pupil, what would you be doing with it to make a difference for students?
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Advocacy Actions
Does contacting legislators and the governor makes a difference? Under what conditions?
_____________________________________
_____________________________________
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Why Lobby?
“People who write letters write the law.”
Joel Blackwell, The Grass Roots Guy
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Why Lobby?
“All things being equal, politicians go with the flow. Your job is to create the
flow.”
Joel Blackwell, The Grass Roots Guy
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Legislative Timeline
• 26D:24R in Iowa Senate and 56R:43D in the House with one election pending
• Jan. 12, 2015 First Day of Session• Feb. 13, 2015 Last day for bill draft requests• May 1, 2015 110th day of Session
https://www.legis.iowa.gov/docs/Schedules/SessionTimetable.pdf
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Advocacy Actions
• Send a “thanks for running” letter• Send a congrats letter (all House, 25 senators in odd numbered senate districts, Governor)
• Call and invite to coffee - and listen– Thank them for their public service (and for anything they supported – TLC grants, 5th year of ELL state funding, preserving PK – if you don’t know, call or email and we can look up something for you)
– Ask what are hearing about education issues– Give contact information and invite them to connect with you as a resource
– Find out how they prefer to be contacted 44
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Advocacy Actions
• Invite them to a school function, board meeting, ribbon cutting, PD day, academic awards senior recognition, staff recognition for retirees, etc.)
• Follow up with priority lists, issues, position papers and data soon, but doesn’t have to be the first conversation if you are just building a relationship.
• Watch for announcement of committee chairs and appointments. Send a letter thanking them for serving on education or ways and means committee, etc. Offer to sit down and talk issues.
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Senate Education Committee
• Herman Quirmbach, Chair, Ames
• Brian Schoenjahn, Vice Chair, Arlington
• Tod Bowman, Maquoketa• Robert Dvorsky, Coralville• Rita Hart, Wheatland• Robert Hogg, Cedar Rapids• Kevin Kinney, Oxford• Lis Mathis, Cedar Rapids
• Amy Sinclair, Allerton, Ranking Member
• David Johnson, Ocheyedan• Jerry Behn, Boone• Brad Zahn, Urbandale• Jason Schultz, Schleswig• Tim Kraayenbrink, Fort
Dodge• Mary Jo Wilhelm, Cresco
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House Education Committee• Ron Jorgensen, Chair, Sioux City • Tedd Gassman, Vice Chair, Scarville• Josh Byrnes, Osage• Mark Costello, Imogene• Cecil Dolecheck, Mt. Ayr• Greg Forristall, Macedonia• Joel Fry, Osceola• Mary Ann Hanusa, Council Bluffs• Jake Highfill, Johnston• Kevin Koester, Ankeny• Norlin Mommsen, DeWitt• Sandy Salmon, Janesville• Quentin Stanerson, Center Point
• Patti Ruff, McGregor, Ranking Member
• Ako Abdul-Samad, Des Moines• Timi Brown-Powers, Waterloo• Dennis Cohoon, Burlington• Ruth Ann Gaines, Des Moines• Curt Hanson, Fairfield• Mary Mascher, Iowa City• Art Staed, Cedar Rapids• Sharon Steckman, Mason City• Cindy Winckler, Davenport
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Next: Advocacy action steps
• Attend Forums “Eggs & Issues”• Go to picnics and fundraisers
“Most committee votes are won or lost at fish fries, not in committee meetings.” Bob Guyer
• Come to the Capitol anytime (wing it or call an insider for help)
• Donate money to a candidate or legislator• Have a letter writing party– Ask for legislative support– Thanks for legislative action
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Never doubt that a small group of thoughtful citizens can change the world. Indeed, it is the only thing that ever has.
Margaret Mead
Decisions are made by those who show up.
President Josiah “Jed” BartlettNBC’s “The West Wing”
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Other Issues
• School Start Date/Waiver process• Attendance Center Rankings• Assessment Task Force Recommendations• Finance Formula Interim Committee Recommendations
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Contact Us Office 515-251-5970 www.isfis.net
Larry Sigel Margaret Buckton Jon Muller Susie [email protected] [email protected] [email protected] [email protected]: 515-490-9951 Cell: 515-201-3755 Cell: 515.577-2136 Cell: 641-745-5284
Josie Gerrietts Traci Giles Sean Gibson James [email protected] [email protected] [email protected] [email protected]
ISFIS StaffContacts