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March 6, 2009

STOP THE PRESSES

ACTUALLY, STOP EVERYTHING YOU’RE DOING!

STOP computing your projected state funding for 2009-2011! STOP preparing for negotiations! STOP thinking you had ANY idea about the state’s plans for K-12 funding!

Recommendations for funding K-12 education have been totally changed. The Governor is recommending that federal stabilization money (part of the economic stimulus package) be used to fund a large portion of the $100 million increase to K-12 (as outlined in the Governor’s budget) which would have originally come from state general fund dollars.

This drastic change away from use of state funds in favor of the temporary use of federal stimulus money to fund K-12 education causes several concerns:

Will state money be there to replace federal funds in the 2011-2013 biennium?
Federal money is required to go out based on the Title I formula guidelines so individual districts will receive different amounts than they would have received under the current foundation aid formula.
Even if the state has money to replace federal dollars in 2011-2013, those dollars will go out on the foundation aid formula (not Title I used for 2009-2011), so districts will get entirely different funding amounts (yet again) than the previous biennium and may not be able to sustain staffing and programming. Thus, a large portion of funding for schools will be based on the following:

2007-2009    North Dakota’s Foundation Aid Formula

2009-2011    Federal Title I Formula

2011-2013    North Dakota’s Foundation Aid Formula
Even though federal money will be distributed based on the Title I formula in 2009-2011, it can be used for anything related to ESEA, IDEA, Perkins, and modernization or renovation of buildings. It should be used for one-time expenditures that supplement state foundation aid.
The NDEA may want 70% of the federal money to go to teacher salaries even though, when we return to use of the state’s foundation aid formula (resuming in 2011-2013), there may not be adequate resources to sustain those salary increases in some districts.

NDSBA has supported the adequacy concepts in HB1400 and the proposed state funding levels in HB1013. However, given the unforeseen and potentially insurmountable problems caused by using two different distribution formulas over the course of four years (two biennia), NDSBA finds it hard to support the recommended change in funding source.

The Governor’s Commission on Education Improvement has worked for over three years to develop an equitable funding formula and make recommendations for academic and funding adequacy. It does not seem prudent to lay it all aside.

The state was ready and able to invest $100 million general fund dollars in K-12 education—money that would flow through the foundation aid equity formula to fund academic adequacy. The legislature should do just that!

We believe the one-time federal funds should be used to provide local districts with money for one-time expenditures such as instructional material, classroom technology and training, updating library resources, CTE equipment and materials, and building modernization and renovation. By using the federal money as it was intended, schools can make long postponed purchases and repairs and the funding formula would not be compromised.

The above concerns and recommendation will be presented on Monday at the hearing for HB1400. We encourage you to explain to your legislators the potential problems involved in receiving money based on one formula one biennium and another formula the next. Let them know the extent to which you could use the federal money for one-time expenditures if it was not being used to replace state dollars for foundation aid.

The hearing on HB1400 is scheduled in the Senate Education Committee on Monday, March 9, at 8:30 a.m. in the Missouri Room (possibly in the Brynhild Haugland Room).

The Governor’s property tax reduction bill, SB2199, will be heard in the House Finance and Taxation Committee on Monday, March 9, at 2:30 p.m. in the Fort Totten Room.

STAY TUNED!

Everyone has access to bill topics and texts, hearing schedules, and bill status reports at the Legislature’s Web site. NDSBA’s Web site includes this weekly Legislative Newsletter, hearing schedules for the upcoming week, and the list of bills NDSBA is tracking. Updated information will be posted Thursday or Friday each week depending on when information becomes available.

ADDITIONAL INFORMATION:

ND State Web site: www.nd.gov

ND Legislative Information Web site: www.legis.nd.gov

Legislature Toll Free # 1-888-635-3447

Bismarck Legislative # 328-3373

LEGISLATIVE NEWSLETTER

STOP THE PRESSES

ACTUALLY, STOP EVERYTHING YOU’RE DOING!

STOP computing your projected state funding for 2009-2011! STOP preparing for negotiations! STOP thinking you had ANY idea about the state’s plans for K-12 funding!

Will state money be there to replace federal funds in the 2011-2013 biennium?

Federal money is required to go out based on the Title I formula guidelines so individual districts will receive different amounts than they would have received under the current foundation aid formula.

Even though federal money will be distributed based on the Title I formula in 2009-2011, it can be used for anything related to ESEA, IDEA, Perkins, and modernization or renovation of buildings. It should be used for one-time expenditures that supplement state foundation aid.

The NDEA may want 70% of the federal money to go to teacher salaries even though, when we return to use of the state’s foundation aid formula (resuming in 2011-2013), there may not be adequate resources to sustain those salary increases in some districts.