Budget Notes

Budget Notes from the 2001 Regular Session Measures

Senate Bill 5511

(1) Budget Note (page 3 of Budget Report for SB 5511)

Based on an AEG Subcommittee recommendation, the Subcommittee stated its intention to remove $10.5 million General Fund in Policy Option Package 401 for the Data Integrity Assurance Project in the State School Fund appropriation bill (Senate Bill 5514) and appropriate $10.325 million General Fund to the Emergency Board as a special purpose appropriation, with reporting instructions to the agency. The Subcommittee also stated its intention to appropriate the remaining amount of that package’s funding ($175,000) to the Operations budget for a feasibility study, and therefore increased the Operations budget by $175,000 General Fund. The Subcommittee adopted the following related budget note:

Budget Note

The Department of Education shall report to the Joint Legislative Committee on

Information Management and Technology as well as the Emergency Board with a

technology plan for its initiative to upgrade and consolidate school district data systems,

called the Data Integrity Assurance Project. The plan should include a cost/benefit

analysis of the Department’s current proposal to use multiple data centers versus

alternatives such as using a centralized system. The Department shall report initially to

receive allocation of the special purpose appropriation (or a portion thereof) in the

Emergency Fund, then semi-annually in calendar year 2002, and finally to the 2003

legislative Assembly on the progress of the project.

Action by the Department of Education

The Department reported its technology plan to the Joint Committee on Information Management and Technology and the Emergency Board, in June 2002. Funding for the project had been eliminated from the Emergency Fund during Legislative Special Session.

(2) Budget Note (page 4 of Budget Report for SB 5511)

The Subcommittee approved the AEG Subcommittee’s recommendation to remove a

portion ($2.5 million General Fund) of the Department’s second year funding of

professional services in its technology budget and appropriate the amount to the

Emergency Board as a special purpose appropriation. In its action, it did not include

$300,000 budgeted for the Quality Education Model as recommended by the AEG

Subcommittee. It adopted the following budget note:

Budget Note

The Department of Education shall have the Department of Administrative Services’

Information Resource Management Division and the Human Resource Services Division

analyze the appropriateness of staffing levels and use of contracted services for

technology projects at the Department of Education. The analysis shall include the

appropriateness of job descriptions and classifications for information systems staff at

the Department of Education, the full-time, permanent positions needed for ongoing

operations (versus start-up and one-time activities), and the appropriateness of using

contracted services versus in-house staff. Where it is determined that the use of outside

contractors is appropriate, the Department shall issue Requests for Proposal and report

on its selection of a contractor at such time the Department is requesting allocation from

the special purpose appropriation to the Emergency Board created for this purpose.

Action by the Department of Education

The Department made a status report to the Joint Committee on Information Management and Technology and the Emergency Board in June 2002, on the conclusions of the staffing analysis directed in this note.

(3) Budget Note (page 4 of Budget Report for SB 5511)

The Subcommittee approved requesting the Department of Administrative Services to unscheduled 15 percent of the remaining current services level technology budget until the Department of Education submits detailed technology plans to the Joint Legislative Committee on Information Management and Technology and the Emergency Board no later than March 2002. Finally, the Subcommittee approved the following budget notes recommended by the AEG Subcommittee:

Budget Note

The Department of Education shall move its public web server or website to DAS

Information Resources Management Division (IRMD) facilities at the discretion of DAS IRMD, during the 2001-2003 biennium. The Department of Education will report its

relocation plan and any progress made toward relocation to the Joint Legislative

Committee on Information Management and Technology no later than March 2002.

Action by the Department of Education

The Department reported to the Joint Committee on Information Management and Technology and the Emergency Board, including the Department’s information technology strategic technology plan for 2001-03 and requested rescheduling of the 15% of the technology budget.

(4) Budget Note (page 4 of Budget Report for SB 5511)

Budget Note

The Department of Education and the Oregon Public Education Network shall work with

the Department of Administrative Services on networking for schools to ensure a

collaborative, least-cost, non-duplicative approach.

Action by the Department of Education

The Department and the Oregon Public Education Network are working with the Department of Administrative Services, through their Chief Information Officer Council, to identify opportunities for efficiencies and partnerships in service delivery.

(5) Budget Note (page 5 of Budget Report for SB 5511)

In concluding its work on the Operations budget, the Subcommittee approved the following budget notes:

Budget Note

The Department of Administrative Services is requested to unscheduled 50 percent of

General Fund dollars for Certificate of Advanced Mastery (CAM) activities pending a

report to the Emergency Board and interim committees on education on a written plan

for CAM field training including regional magnet schools, businesses, labor

apprenticeships, community colleges and, where appropriate, Oregon University System

participation. The report shall include information on developing an “externship”

program that immerses the CAM student in his/her chosen field and collaboration with

businesses and Oregon University System to show how such certificate of Initial Mastery

and Certificate of Advanced mastery success will result in the student having greater

chances of acceptance to an Oregon University System school and in Oregon

employment.

Action by the Department of Education

The Department submitted a written report on a plan for CAM field training to the Emergency Board in October 2002. The Department reported to the House Interim Committee on Education previous to the October report and met with the Senate Interim Committee on General Government in November 2002 regarding CAM implementation. The General Fund appropriation for CAM that had been unscheduled was eliminated in the Third Special Session.

(6) Budget Note (page 5 of Budget Report for SB 5511)

Budget Note

The Department of Education shall report to the Emergency Board by December 2001

and by June 2002 on the status of the Technology Enhanced Student Assessment

project. The reporting shall include timelines for the project, a budget-versus-actual

expenditures report, and school district satisfaction.

Action by the Department of Education

The Department reported the status of the Technology Enhanced Student Assessment project to the Joint Committee on Information Management and Technology and the Emergency Board in November 2001 and the Emergency Board in June 2002.

(7) Budget Note (page 5 of Budget Report for SB 5511)

Budget Note

The Department of Education shall report to the Emergency Board no later than October 2002 on the progress towards meeting the performance targets established for

the School Improvement Fund grant program. The report shall include each district’s

baseline performance, goals, and progress in meeting the established goals included in the application for the grant funds.

Action by the Department of Education

The Department reported to the Emergency Board on the progress towards meeting the performance targets established for the School Improvement Fund, in October 2002.

(8) Budget Note (page 5 of Budget Report for SB 5511)

Budget Note

The Department of Education shall report to the Legislative Audit Committee on the

results of and its response to the findings of the Secretary of State’s Audits Division

compliance audit initiated in June 2001.

Action by the Department of Education

The Department reported on results and its response to the Secretary of State’s Audits Division compliance audit, initiated in June 2001, to the Joint Legislative Interim Audit Committee in August 2002.

Senate Bill 5512

(9) Budget Note (page 2 of Budget Report for SB 5512)

Early Intervention/Early Childhood Special Education

The Subcommittee approved a General Fund reduction of $8,548,591, but appropriated this amount to the Emergency Board as a special purpose appropriation. The Subcommittee discussed that this program is still expanding and over the course of a biennium it is difficult to accurately predict caseload. It also expressed a desire to have the Department report on additional federal funds that may become available for the program and approved the following budget note:

Budget Note

The Department of Education shall report to the Emergency Board no later than April

2002 on the status of the Early Intervention/Early Childhood Special Education program.

The report shall include the number of eligible children served in the program; actual

caseload growth to date in 2001-02 and projected caseload growth for the remainder of

the biennium; and the amount of additional federal funding available for the program,

including federal Individuals with Disabilities Education Act funds and Medicaid funds.

Action by the Department of Education

The Department reported to the Emergency Board in April 2002, on the status of the Early Intervention/Early Childhood Special Education program.

(10) Budget Note (page 3 of Budget Report for SB 5512)

Oregon PreKindergarten Program

The Governor’s budget included a policy package of $5,900,000 General Fund to expand the Oregon PreKindergarten Program to 60 percent of eligible children by the end of the 2001-03 biennium. The Subcommittee eliminated the $5,900,000 General Fund from the Department’s budget, but appropriated $3,900,000 General Fund to the Emergency Board as a special purpose appropriation for the program. The net reduction of $2,000,000 was made in anticipation of additional federal funds for the HeadStart program. The Subcommittee discussed the HeadStart priority of full-day, full-year service and the need for the Department to access additional childcare dollars to help providers qualify for the new federal expansion funds. The Subcommittee heard that additional Child Care Development Block Grant Funds (CCDF) may be available for that purpose. The Subcommittee adopted the following budget note:

Budget Note

The Department of Education shall report to the Emergency Board no later than April

2002 on the status of the expansion of the Oregon PreKindergarten/HeadStart

programs. The report shall include the number of children served by the programs,

progress on accessing child care dollars to enable Oregon to procure additional federal

Head Start dollars for new slots, the amount of additional federal funds made available

for expansion of the programs, and the roll-up costs of the expansion for the 2003-2005

biennium. The Department of Education shall work with the Employment Department to

ensure that use of child care dollars for Head Start expansion is included in the State

Plan for Child Care Development Funds. Should the federal HeadStart funds not

become available, the Department is directed to appear before the Emergency Board to

request additional General Fund for the program.

Action by the Department of Education

The Department reported to the Emergency Board in April 2002 and requested the allocation of the General Fund reserved for this program in the Emergency Fund.

(11) Budget Note (page 3 of Budget Report for SB 5512)

Policy Package Reductions/Federal Fund Use

The Subcommittee reduced Policy Option Package #303-Dropout Prevention and Recovery and Policy Option Package #305 – Beginning Teacher/Administrator Mentor Program due to General Fund constraints. It discussed the value of these packages as well as the perception that the Department had not sufficiently researched and reported on the use and availability of federal funds to use toward these and other initiatives identified in the Governor’s budget, such as support to low-performing schools. The Subcommittee adopted the following budget note to provide direction to the agency to seek federal funds for these policy option packages as well as the English as a Second Language (ESL) training grants established in House Bill 2286:

Budget Note

The Department of Education shall report to the Emergency Board, after adoption of the

federal fiscal year 2002 budget, with a proposal for implementing the initiatives for

dropout prevention and recovery, teacher/administrator mentoring, support to low-

performing schools, and ESL training for teachers using, to the extent possible, federal

funds including, but not limited to, Eisenhower Professional Development grants, Class

Size Reduction funds, Safe and Drug-Free Schools funds, Migrant Education and other

Title 1 grants, Dropout Prevention Demonstration Program funds, Innovative Education

Program Strategies funds, the proposed Improving Teacher Quality, Reading First, and

Education Technology State grants, as well as other federal funds for pre-K through 12

education. Additionally, the Department shall examine and report on the roles and

duties of its education program specialists and managers to determine if a realignment

of priorities for these staff would help the Department achieve the goals of its initiatives.

Action by the Department of Education

The Department made the directed report to the Emergency Board in November 2002.

(12) Budget Note (page 4 of Budget Report for SB 5512)

The Subcommittee approved the reduction of $5.5 million General Fund in the regional programs, with the understanding that federal special education law puts the ultimate responsibility on school districts to serve students with disabilities. The Subcommittee adopted the following budget note:

Budget Note

The Department of Education shall report to the Emergency Board no later than April

2002 on the funding of regional programs, including additional federal and other funds

made available in 2001-2003, changes in service delivery models, and fiscal impacts to

to school districts and education service districts to accommodate the General Fund

reduction in the program. The Department of Education is directed to take a leadership

role in working with school districts, education service districts, regional programs, and

other entities as needed to devise a regional strategies approach to help mitigate the

impact of the General Fund reduction in the regional programs.

Action by the Department of Education

The Department made its report on the status of the Regional Programs to the Emergency Board in June 2002.

Senate Bill 5514

(13) Budget Note (page 2 of Budget Report for SB 5514)

State School Fund