DCIU Legislative Update-1-February 6, 2013

DELAWARE COUNTY INTERMEDIATE UNIT

LEGISLATIVE UPDATE

February 6, 2013

STATE UPDATE

Session Information

Session Days

House

February 4, 5, 6, 11, 12, 13; March 11, 12, 13, 18, 19, 20; April 8, 9, 10, 15,16, 17, 22, 23, 24; May 6, 7, 8, 13, 14, 15; June 3, 4, 5, 10, 11, 12, 17, 18, 19, 20, 24, 25, 26, 27, 28

Senate

February 4, 5, 6, 11, 12, 13; March 11, 12, 13, 18, 19, 20; April 8, 9, 10, 15, 16, 17, 29, 30; May 1, 6, 7, 8, 9, 13, 14; June 3, 4, 5, 10, 11, 12, 17, 18, 19, 24, 25, 26, 27, 28

Committee Hearings and Meetings

Tuesday, 2/5/13

Gov. Tom Corbett presents his 2013-14 state budget proposal to a joint session of the Senate and House of Representatives.

Wednesday, 2/6/13

House Education: Informational meeting to receive an update from Carolyn Dumaresq, Deputy Secretary for the Office of Elementary andSecondary Education, on the transition to the Keystone Exams

Wednesday, 2/13/13

House Education: Deputy Secretary Dumaresq to provide a brief on the implementation of the teacher educator effectiveness system and theadoption of the Department of Education’s new performance profiles (state report cards)

Senate Veterans Affairs & Emergency Preparedness & Senate Education: Joint public hearing on school emergency plans and security measures designed to ensure student safety and increaseschool-to-parent communication in an emergency

On January 22, the House Education Committee held an informational briefing on the Professional Educator Discipline Act and a voting meeting to consider the following bills which passed out of committee:

HB 19, whichrequires school districts to incorporate an age-appropriate child exploitation awareness education program into the existing curriculum for students in grades K-8.

HB 75, which prohibits school districts from starting their fall term prior to Labor Day; however, a district could conduct in-service for teachers before the holiday.

HB 91, which amends the Tax Reform Code to allow individual career and technical education schools to be eligible to receive business donations within the Educational Improvement Tax Credit (EITC) program.

HB 111, which establishes elements to be contained in the State Board of Education’s master plan for higher education.

News and Updates

Governor Introduces 2013-14 Budget

On Tuesday, the Governor introduced his 2013-14 budget proposal, a $28.4 billion state spending plan, which is a 2.4% increase over 2012-13. The budget provides $9.55 billion for K-12 education. Funding for the Basic Education Subsidy would receive a modest $90 million, or 1.7%, increase, bringing the total to $5.5 billion. The largest increase in the education budget once again is allocated to pensions. The budget includes $1.08 billion, an increase of $223.9 million, or 26.2%, for school employees’ retirement costs.Other specific education items under the governor’s plan are:

* Special Education – Special education is level funded again at $1.03 billion, for the sixth year.
* Accountability Block Grant – level funded at $100 million.
* Assessment -- $56 million, which is a $3.8 million, or 7.2%, increase for state and federal testing programs, including the Keystone Exams and PSSAs.
* Authority Rentals and Sinking Fund Requirements – the funding that is used for reimbursement to schools for approved construction projects (PlanCon) is level funded at $296 million. The governor also proposed extending the moratorium on new PlanCon projects for an additional year.
* Career and Technical Education – level funded at $62 million.
* Teacher and Principal Evaluations -- $6.6 million for continued development of this initiative. Of this amount, $3.9 million is allocated for a teacher evaluation tool that will be fully implemented in the 2013-14 school year. In addition, the budget provides $2.7 million for the development of a new specialist evaluation tool and principal evaluation tool. Full implementation of the principal evaluation tool will occur in the 2014-15 school year.
* Educator Misconduct -- $775,000 to establish a dedicated division within PDE’s Office of Chief Counsel to prosecute misconduct by professional educators. Funding will be provided through a $25 increase to the $100 certification fee that educators pay to the Department of Education for certification.
* Pre-K Counts – $87million, which is a $4.5 million, or 5%, increase for Pre-K Counts pre-kindergarten education programs.

2013-14 Budget Hearings

Senate Appropriations Committee:

  • State-related universities (Pitt, Penn State, Temple, and Lincoln)--Thursday, February 28
  • The Department of Education -- Monday, March 4 at 9:30 AM
  • The Pennsylvania State System of Higher Education -- Tuesday, March 5

House Appropriations Committee:

  • State-related universities -- February 25
  • Department of Education -- Tuesday, February 27
  • State System of Higher Education -- Monday, March 4

Governor Corbett Announces Liquor Privatization Plan Highlighting Consumer Choice and Convenience; $1 Billion Proceeds to Education

Gov. Tom Corbett on January 30 proposed tying a renewed effort to privatize the state’s liquor system to $1 billion in new education funding over the next four years. Corbett’s plan would shutter more than 600 state-owned liquor stores and auction off up to 1,200 wine and liquor licenses to a variety of retail businesses, phasing in private sales of wine and liquor over four years. Under the plan, people would be able to buy beer and wine at supermarkets or convenience stores. Distributors, which are limited to cases and kegs of beer, would be able to sell six packs. They would also be able to bid on liquor licenses. Patrons of restaurants and bars, currently limited to buying up to two six packs of beer, would also be able to purchase bottles of wine. The money from those licenses would be directed toward a new “Passport for Learning” education block grant targeting school safety, early learning, individualized learning and science, technology, engineering and math courses. The proposal will be introduced in the state House of Representatives.

Senate GOP leader Scarnati says liquor linkage to schools not a problem for him

One day after warning Gov. Tom Corbett against taking policy "hostages" by linking budget issues, Senate President Pro Tempore Joe Scarnati, R-Jefferson County, said the governor's new bid to augment school funding with proceeds from liquor store sales doesn't break his rules.Scarnati said that's because Corbett's liquor privatization plan, which raises the possibility of adding $1 billion in new education block grants over a four-year period, appears to set out a different dynamic than: "Either sell the state stores or education gets cut... This is: 'If you do this, here is what I'm proposing.''But the Senate leader also said he hopes that the governor's new budget plan - due February 5 - contains other increases in public school funding aside from the proceeds of a politically complex issue like liquor privatization. Future education funding should not only be predicated on liquor store privatization, he said. He also noted he has concerns over whether sales of liquor licenses will hit their projected revenue targets, and whether Corbett's plan can adequately replace annual profits from the state store system.

PA Rejects all 8 Cyber Charter School Applications

Pennsylvania Secretary of Education Ronald Tomalis rejected on January 28 all eight cyber charter school applications pending before the state Department of Education.The schools had hoped to serve a total of almost 10,000 Pennsylvania students at a projected cost to taxpayers of roughly $350 million over the next five years.

All eight statewide cyber charter school applications have been rejected, a decision that comes as legislators debate charter school funding and existing cyber schools have taken a hit for missing state academic goals.State Education Secretary Ron Tomalis announced the decision on January 28 citing deficiencies in each application and calling into question what a cyber charter school really is. Many of the applicants proposed to use learning centers in a way that blurred the line between a brick-and-mortar and cyber charter school – another factor in the decision. One trend in education -- among regular public and charter schools alike -- is blended education, which combines face time with cyber time.Some of the state's existing 16 cyber charter schools have added opportunities for face-to-face instruction, such as in-person tutoring centers. Under the state charter school law, cyber charter schools must offer a "significant" portion of their programs through the Internet or other electronic means. They cannot require students to attend in person, with some exceptions such as state testing.

Charter School Legislation to be Introduced

The House Republican Caucus on January 25 unveiled a legislative package aimed at reforming charter and cyber charter school funding. The Charter and Cyber Charter Funding Reform Package consist of the following:

  • Special Education Funding.Rep. O’Neill will introduce legislation to create a commission to address inequities in the special education funding formula. The commission will be charged with determining how the Commonwealth should fund charter and cyber charter special education students.
  • Pension/Doubledip.Rep.Emrick will introduce legislation to allow deductions for school district pension payments prior to calculating payments to cyber charter schools.This one change will save approximately $165 million for school districts over the next five years.
  • Cyber Funding Reforms.Rep. Reese will introduce legislation to make the following additional changes to the current cyber charter funding formula for non-special education students:
  • A new “Cyber Program” deduction to spur on competition between school districts and cyber charter schools. School districts will be permitted to deduct 50 percent of the costs of any cyber program they offer to their own resident students.
  • Districts would be allowed to make additional deductions in calculating their payments to cyber charter schools; these deductions represent costs that occur in a brick-and-mortar setting, but not necessarily in a cyber setting. The proposed new deductions are:
  • The “Extracurricular Activities” deduction will allow districts to deduct 50 percent of the costs they incur for extracurricular activities.This deduction will not change the availability of extracurricular activities to cyber charter students who choose to participate in their home school district’s activities.
  • The “District Pupil Services” deduction will allow districts to deduct 100 percent of the costs associated with certain services that are offered in a brick-and-mortar setting but are not necessarily offered by cyber charter schools. These deductions will include student health services, food services and library services.
  • Redefining the “Other Financing Uses” deduction to only debt service and fund transfers.
  • Direct Payment of Charter Schools. Recognizing the concerns of charter and cyber charter schools not being timely paid by school districts, the Commonwealth will provide their funding directly.
  • Longer Charter Terms for Predictable Financing. The term of a charter will be lengthened from the current three years for an initial charter and five years for renewals, to five years for the initial charter and 10 years for renewals. Longer terms will allow charter schools to more easily secure predictable and consistent bankfinancing; the shorter terms have made private financing difficult for a number of charters in the state.

Senate Passes SR 6

The Senate amended and passed Senate Resolution 6, which directs the Joint State Government Commission to study the issue of violence prevention, to establish an advisory committee to conduct a thorough review and comprehensive analysis of the underlying causes of violent crime, including mass shootings. The final report, due Dec. 31, 2013, would include recommendations regarding mental health laws and procedures, necessary changes in state laws and practices, policies relating to violent crime. The report also would include recommendations on ways to make schools safer, and to develop awareness, education and other strategies to address issues relating to violent crime. Prior to adoption, the resolution was amended to specify that the laws in which changes may be recommended include the Mental Health Procedures Act, and 18 Pa.C.S. Ch. 61 Subch. A (relating to Uniform Firearms Act).

Senate Passes SB66, State Tax Equalization Board

The Senate also passed SB 66, which moves the State Tax Equalization Board (STEB) from an independent board to a division within the Department of Community and Economic Development (DCED). STEB has the power and duty to determine the market value of taxable real property in each school district, and to certify to the Department of Education and to the board of school directors of each school district by July 1 of each odd-numbered year, a list of all school district showing the market value of taxable real property and the assessed valuation for county tax purposes and by July1 of each even-numbered year, the changes in market value which result from properties going on or off the assessment rolls for taxation purposes.

Democratic Leaders Discuss Priorities & Governor’s Budget Address

Senate Minority Leader Jay Costa (D-Allegheny), along with Minority Whip Anthony Williams (D-Philadelphia) and Appropriations Minority Chairman Vincent Hughes (D-Philadelphia) briefed reporters on February 4 on their caucus’ legislative priorities and what they expect to hear during the governor’s budget address tomorrow. The leaders told reporters that “creating jobs, extending and strengthening education opportunities for all our children, providing for a highly skilled workforce, supporting and assisting our local communities, and providing and protecting basic services for all Pennsylvania families are the priorities of the Senate Democrats as the General Assembly begins deliberations for the 2013 14 session.” The priorities outlined included:

-Approval of the Senate Democrats’ PA Works Program

-Adopt a comprehensive transportation plan for roads, bridges, transit, rails, ports and airways to address and pay for critical needs

-Offer local governments new flexibility and revenue options to avoid reliance on property taxes

-Make initial $275 million down payment to restore cuts for local schools

-Fully implement the federal Affordable Care Act to extend federally funded health insurance coverage

Senate President Pro Tempore Outlines Legislative Priorities

Senate President Pro Tempore Joe Scarnati (R-Jefferson) today outlined for reporters his legislative priorities for the new legislative session. At the top of the list are pension reform, transportation funding and negotiating the 2013-14 budget. Other items on Sen. Scarnati’s agenda include school safety, “purely public charity” legislation, state schools, and various educational initiatives.

Sen. Scarnati warned he will not take kindly to proposals that attempt to link issues, such as pension reform to education funding. He characterized such legislative hostage-taking as “Washington-style politics” and indicated it has no place in Pennsylvania.

Pension reform: Sen. Scarnati said he is looking forward to seeing Gov. Corbett’s plan for dealing with the pension crisis. He said he hopes the governor provides “real numbers” to go along with the plan, including a potential $200 million annual cost that will have to be accounted for.

The budget: Given Budget Secretary Charles Zogby’s comments at his midyear budget briefing that many programs have at this point been cut “to the bone,” Sen. Scarnati expressed agreement that areas in human services, education and similar have been cut past the fat and the muscle.

Transportation funding: “I think we’ve talked about it enough,” Sen. Scarnati said. He warned delaying a bill until June could prevent upwards of $300 to $400 million going to road and bridge projects. He said he has not been informed of a “drop dead date” for getting projects underway this summer, but noted given the session calendar, action by late April or early May is “most doable.” He cautioned much negotiation will still need to take place after the Governor’s announcement.

Purely public charities: Sen. Scarnati noted the legislation made it to the governor’s desk last session but was not signed, and expressed his intention to try again.

Education: “I don’t see the likelihood of this body going along very well with reducing funding for public schools,” Sen. Scarnati said. He said that a situation where education is put at risk if pension reform is not done is unlikely, as there are generally a number of options available to lawmakers beyond a simple binary choice when it comes to funding. In particular, Sen. Scarnati noted education is a sensitive subject among legislators.

School safety: Sen. Scarnati said he has not yet seen the governor’s proposal but said his proposal will be an additional $10 million in the Safe Schools line with broader parameters for its use.

Liquor privatization: “…is something that is an interest around the [Capitol] building,” Sen. Scarnati said. He added that also under discussion for several years has been a package of bills aimed at liquor “modernization,” that stops short of privatization. He said enacting those bills would mean $75 to $100 million becoming available annually in the General Fund. Sen. Scarnati said he would like to see “both trains on the track,” meaning both modernization and privatization measures moving through the General Assembly.

With respect to the issue of selling licenses, Sen. Scarnati speculated demand may be low for licenses in rural areas such as his district. Sen. Scarnati qualified however that the three top priorities – transportation funding, pensions and the budget, all should come first. He reiterated he would object to the privatization of liquor being linked in any way to a transportation bill.