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January 2009: Education Updates

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Political Landscape section is a collection of news items, updates, and essays on policy issues, state and federal legislation, academic standards, testing issues, the politics of funding, and other issues.

This month, the League of Women Voters’ Joan Platz reports on the last acts of the 127th General Assembly, Ohio’s fiscal crisis, charter schools, the State Board of Education, international education in Ohio, and national education news.



127th General Assembly

The Ohio House and Senate met in sessions and held committee hearings during the week of December 8. As the end of the 127th approached, lawmakers focused on completing work and approving several bills. The Ohio Senate also approved on December 2, 2008 Sub. HB420 (Brinkman). HB420 was approved by the Ohio House on May 6, 2008. The bill’s original purpose was to promote transparency in state spending by requiring that certain information about state agency spending and effectiveness be collected and made available online. The substitute bill now includes several “clean-up” amendments, including two related to education. The bill, as amended, allows certain funds to be used in accordance with the Ohio College Opportunity Grant program and authorizes the Ohio Department of Education to implement a differentiated accountability model under the No Child Left Behind Act. This model has already been approved by the U.S. Department of Education. The Ohio House must now consider the changes to the bill as passed by the Senate.

Bills introduced the week of December 8, 2008:

  • HB654 (Luckie) School Student Transportation: Permits a school district to surrender the transportation of its resident high school students attending community schools to those community schools.
  • SB390 (Wilson) Community School Sponsors: Requires the Department of Education to issue annual report cards for community school sponsors containing aggregated performance data for the schools they sponsor.
  • SJR9 (Faber) Proposing Amendments: Proposes that the Congress of the United States pursuant to Article V of the United States Constitution call a constitutional convention for proposing amendments.

The Ohio House tried unsuccessfully on December 10, 2008 to approve Sub. SB57 (Coughlin), special education scholarship program, but the bill did not receive the needed 50 votes.

128th General Assembly

Members of the 128th Ohio General Assembly will be sworn into office on January 5, 2009. Democrats will have a 53 to 46 majority. The State of the State Address is scheduled for January 28, 2009, and the FY2010-2011 state budget bill is expected to be submitted to the Ohio House by February 2, 2009.

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State Fiscal Crisis

Governor Ted Strickland and the director of the Office of Budget and Management, J. Pari Sabety, announced on December 1, 2008 that Ohio “will confront the most serious erosion in revenues it has experienced in the last 40 to 50 years.” To address this crisis, Governor Strickland, along with the National Governor’s Association, is requesting that 111th Congress and President-elect Obama approve in January 2009 a federal economic stimulus package of $100 billion, including block grants for states ($5 billion for Ohio); $3.2 billion in Temporary Assistance for Needy Families; $25 billion for the auto industry; and increases in Medicaid matching funds, food stamps, and unemployment trust fund resources.

The governor and Sabety also met with a variety of stakeholder groups last week to review the economic information so that everyone would understand the problem and work cooperatively to develop solutions. According to their presentation, the national economy has lost 1.2 million jobs and the U.S. gross domestic product is expected to fall by 2.6 percent in 2009, which is the steepest decline since the Great Depression. Ohio’s FY08-09 budget could be short by $640 million before the fiscal year ends on June 30, 2009, depending on federal assistance and holiday retail sales. What is even more troubling is the outlook for the FY10-11 budget, which the Ohio General Assembly needs to approve by July 1, 2009. Current revenue estimates show a $7.3 billion deficit for the FY2010-2011 budget. The administration already assumed a 90 percent level budget for departments and agencies in FY2010 & 11, but that will be $4.7 billion short.

Here are some other “firsts” for Ohio’s finances:

  • The FY08-09 budget bill, HB119, was the lowest growth budget in 42 years, and yet to remain in balance it has had to be cut by $1.27 billion. Currently, state agency spending is 87.25 percent of the original levels of HB119.
  • Ohio’s wage and salary income growth has been in decline since FY82.
  • Revenue from the personal income tax has declined over the last 3 years by $1.379 billion. This has not happened since 1972 when the tax was enacted.
  • Revenue from the sales tax has declined over the past 2 years. This has not happened since 1950.
  • Total General Fund Revenue for FY2011 will be less than FY2004 levels.

According to a press release from the Governor’s Office, “Unless federal resources are provided, the severe nature of current and future shortfalls states are facing will have devastating consequences on core services states provide, including education (early care through higher education), health care, vaccinations, food safety, and other vital public health and safety net services. Giving states block grants to ensure that these basic services are not compromised and that states can continue to invest in education at all levels is a critical part of any recovery package.”

The presentation and other information about the state of Ohio’s economy is available at http://www.obm.ohio.gov/.

More Bad Economic News

The Office of Budget and Management, J. Pari Sabety director, released on December 10, 2008 the state’s monthly financial report, which included information from the Governor’s Council of Economic Advisors. This report also includes a featured analysis, Ohio Employment Trends and Impact on the GRF.

According to the report, total General Revenue Tax (GRF) receipts were $77.4 million (6.3 percent) below estimate for the month of November, and $128.4 million below revised estimates year to date. November's General Revenue Fund disbursements were $34.0 million (1.5 percent) above estimate. Total GRF receipts, including nontax receipts and transfers, are down $638.2 million for the year to date.

Ohio’s employment figures decreased by 9,000 jobs in October, and by 25,100 jobs since December 2007. Major job losses have occurred in manufacturing (down 8,400) and trade, and transportation and utilities (down 7,600) year-to-date. Education and health services posted a major increase (up 8,200 jobs).

Governor Strickland’s administration released information on December 11, 2008 outlining some “worse case” scenarios if the FY2010-2011 budgets of state departments and agencies had to be adjusted to compensate for a projected deficit of $7.3 billion. According to one scenario, to compensate for the projected deficit, agency budgets would need to be reduced by 25 percent. The Ohio Department of Education, for example, would need to reduce its budget by $2 billion in FY2010, which would mean an $840 per student reduction in state aid to schools, and an $870 per pupil reduction in FY2011. School districts would also lose grant funding that provides support for needed programs, including alternative education programs that serve at-risk students and school improvement funds. Funding for early childhood education would need to be cut by $9.1 million in FY2010, and special education preschool would need to be cut by $20.8 million (500 units).

In the 25 percent scenario the Board of Regents would lose $707 million in FY2010, which would reduce state support per student by $1,987. This would mean, for example, that Ohio State University's state support would be reduced by an estimated $119.6 million.

More Budget Cuts

Governor Strickland announced on December 19, 2008 that most state agencies would be asked to reduce their FY09 budgets by 5.75% to avert a shortfall this fiscal year. The Office of Budget and Management, J. Pari Sabety director, released a directive outlining the revised budget estimates for this fiscal year, which ends on June 30, 2009. According to the OBM, there will be a projected shortfall in tax receipts of $640 million. An anticipated increase in federal assistance of $362.9 million, including a 6% increase in federal Medicaid assistance, and other spending adjustments made to reduce the deficit will decrease the amount of needed cuts to $180 million over the next 6 months. This is the third budget reduction that Governor Strickland has ordered for the FY08-09 state budget. The reductions now total $1.9 billion.

State agencies had until December 29, 2008 to identify where the budget reductions will be made. The cuts went into effect on January 1, 2009. Some specific departments, including Rehabilitation and Corrections and the Department of Youth Services, are exempt from the across the board reductions. Also, certain line items and programs have been exempt from the reductions. For example, the Ohio Department of Education is required to reduce spending by $30.4 million, but cannot cut line items for foundation funding, pupil transportation, gifted education, special education enhancements, and career/technical education enhancements. The Board of Regents is required to cut $24.9 million, but not in the line items for the Ohio College Opportunity Grants, Ohio's Instructional Grant (OIG), state share of instruction (SSI), academic scholarships, Central State Supplement, Shawnee State Supplement, and capital components. The Ohio Arts Council is required to reduce its budget by $641,131 on a revised budget for FY09 of $10,680,536.

According to OBM Directive #9, “While the Governor recognizes and values the dedication of all state employees, these budget reductions should be developed to achieve the minimum possible impact on services for the citizens of Ohio.”

Information Released about ODE Budget Cuts

Superintendent of Public Instruction Deborah Delisle notified school district superintendents on January 1, 2009 about the next round of budget cuts that will be made by the Ohio Department of Education. Governor Strickland ordered a third round of cuts on December 18, 2008 to close a projected budget deficit for FY09, which ends on June 30, 2009. The ODE was directed to cut $30.4 million from its budget.

According to ODE information, the cuts for education will be made in the state aid line item, which is expected to have a surplus as a result of lower than expected enrollment, and line items for personal services, teacher training, early childhood education, alternative education programs, professional development, bus purchases, STEM initiative, the Ohio Educational Computer Network, school improvement, assessment, Ohio Core support, literacy programs, etc. Exempted from the cuts are foundation funding, special education and gifted programs, career technical programs, support for nonpublic schools, property tax reimbursements, and transportation. Read more >

State Budgeting Matters Reviews Budget Crisis

The December 2008 issue of State Budgeting Matters, “The Cats Are Out of the Bag” by Richard Sheridan, financial consultant for the Center for Community Solutions, raises several questions and proposes explanations regarding the state’s current budget crisis.

According to this report, there are a number of questions concerning the current state budget deficit. For example, additional information on state spending is needed to explain how a tax revenue shortfall of $952 million, reported by the Strickland administration, could result in a budget shortfall of $7.3 billion in FY2010-2011.

The report also describes how major tax policy changes have led to a $4.4 billion reduction in tax revenues for the General Revenue Fund (GRF). According to the author, some tax provisions included in the FY08-09 state budget bill HB119, such as the expansion of the Homestead Exemption program, have also eroded the GRF even more.

The report includes several options that state leaders could implement to avoid drastically cutting the FY2010-2011 budget. These include increasing taxes; postponing the final year of the income tax reduction; using the Rainy Day Fund; eliminating certain deduction and exemptions; expanding the sales tax base; phasing out the state’s local government revenue sharing program; utilizing the working capital balances that institutions of higher education maintain in order to be able to issue checks; increasing the local government share of certain human service programs; and instituting a state property tax.

According to the report, “It behooves the next General Assembly, as they focus on preparing a balanced budget for FY 2010-2011, to consider establishing a framework that will insure the long-term fiscal health of the state rather than considering what it will take for the state to maintain its primary responsibility to provide for the health, education, and welfare of its citizens in good times and in bad times, and for the long term, not the short term.”

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Charter School Report Reviewed

Professor Gary Miron of Western Michigan University reviewed a November 14, 2008 report called Public Charter Schools: A Great Value for Ohio’s Public Education System, produced by the Buckeye Institute for Public Policy Solutions and authored by Matthew Carr and Beth Lear. The review was prepared for the Think Tank Review Project.

The review identifies a number of “contentious” issues that divide traditional public schools and charter schools, analyzes the findings and conclusions of the report, and provides a comprehensive description of the particular cost advantages and disadvantages that charter schools face.

According to the review, the Buckeye Institute’s report “falls short in providing a comprehensive presentation of evidence. It ignores relevant research literature and extensive findings from the official state evaluation. It incorrectly assumes that charter schools serve the same types of students and provide the same range of services, and it does so based on only partial revenues. Perhaps most troubling, the report’s primary findings—that districts gain revenue for each student who attends a charter school and that there would be a net loss of revenues for districts if charter schools were closed—are based on an ungrounded and misleading interpretation of Ohio's mechanism for funding schools.”

The Think Tank Review Project is a collaborative project of the Arizona State University Education Policy Research Unit (EPRU) and University of Colorado’s Education and the Public Interest Center. The project is made possible by funding from the Great Lakes Center for Education Research and Practice.

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State Board of Education News

The State Board of Education, Jennifer Sheets president, met on December 8-9, 2008. The Board welcomed the 35th superintendent of public instruction, Deborah Delisle, who took the oath of office on December 9, 2008 in a ceremony officiated by Chief Justice of the Ohio Supreme Court, Thomas J. Moyer. The brief ceremony also included a moving performance of the national anthem sung by three elementary students from the Ohio School for the Blind.

The Board also bid farewell to several members whose terms ended on December 31, 2008: Jennifer Stewart, Sue Westendorf, Virgil Brown, Emerson Ross, Eric Okerson, Lou Ann Harrold, Heather Heslop Licata, Jane Sonenshein, and Michael Cochran. Colleen Grady resigned from the board in November in order to complete the term of Representative Tom Patten in the Ohio House representing the 18th House District. Board members also received the 2007-2008 annual report of the State Board of Education.

Committees

The Capacity Committee, chaired by Rob Hovis and Jane Sonenshein, and the Achievement Committee, chaired by Michael Cochran and Ann Womer Benjamin met on December 8, 2008.

The Capacity Committee discussed the 5-year revision process for Rules 3301-19-01 to -03, Expenditure Flow Reports, and Rules 3301-21-05 to -07, Preparing Teachers for an Associate License, and updating Rule 3301-14-01, Operation of the Education Management Information System (EMIS). The committee agreed to postpone a discussion of the guidelines for the evaluation of teachers and principals in order to discuss three issues regarding Ohio Administrative Code (OAC) Rules 3301-73-01 to 06, 08, 10, 13, 16,20, to 26 - Professional Conduct. These rules were approved by the Capacity Committee in November 2008 for the full board to consider an “intent to adopt” resolution in December 2008. However, the board was asked by the Ohio Education Association and the Ohio Federation of Teachers to reconsider the following three items included in the revised rules:

  • The degree to which individuals facing a professional conduct hearing have access to the complete investigatory file prepared by the Ohio Department of Education
  • A provision in OAC Rule 3301-73-04 H that would allow the Superintendent of Public Instruction to release to a school district superintendent the recommendations of the hearing officer regarding the results of a professional conduct hearing prior to the State Board taking action on the recommendation
  • A reference in OAC Rule 3301-73-21 to the Licensure Code of Professional Conduct approved by the State Board in March 2008.

According to ODE legal counsel Matt De Temple, the Licensure Code of Professional Conduct is not part of the administrative code, but serves as a guideline. Including a reference to it in this rule could infer that it has more authority. The committee discussed the merits of the three issues, and agreed to ask the full board to postpone taking action on the Professional Conduct Rules as revised and return the rules to the Capacity Committee for further study.

The Achievement Committee discussed and approved a resolution of intent to amend Rule 3301-51-20, Blind/Deaf Schools Standards for Admission, Transfer, Suspension or Expulsion, and a resolution of intent to amend Rule 3301-46-01, Innovative Education Pilot Programs, and heard an update on Physical Education Standards.

The Legislative Committee, chaired by John Bender and Carl Wick, discussed HB420 (Brinkman), which includes the differentiated accountability proposal that the Ohio Department of Education is permitted to implement under No Child Left Behind, and SB306 (Schuler), which was amended to address an issue regarding the payment of Joint Vocational School Districts. Mr. Bender also noted that Senator Padgett, chair of the Senate Education Committee, was not able to introduce an omnibus amendment that would have included other legislative requests from the SBE during this lame duck session of the Ohio General Assembly.

The board also recognized 21 schools in Ohio that were selected as National Blue Ribbon Schools. More information >

Lou Staffilino, Associate Superintendent, Center for the Teaching Profession, updated the SBE on efforts to increase the number of speech language pathologists for school districts in Ohio through an internship program. Carl Wick updated the board on the work of the Education Management Information System (EMIS) advisory committee, which includes a variety of stakeholders who meet quarterly. The EMIS advisory committee has finalized its recommendations for redesigning EMIS focusing on building capacity, training, and competence in the system. The report will be presented to Superintendent Delisle.

The combined EDGE and Quality Middle and High School subcommittee also met to discuss implementation strategies regarding the Top Ten knowledge and skills for the 21st Century, and the board conducted a Chapter 119 hearing on Rules 3301-34-01-04 Home Education and Rule 3301-69-03 Medicaid Administrative Cost Recovery.

Executive Committee

The State Board’s Executive Committee, co-chaired by Jennifer Sheets and Jennifer Stewart, met on December 9, 2008. The committee discussed the agenda for the new board member orientation in January 2009 and the board’s Equal Educational Opportunity Policy. This policy was originally adopted in 1978 in response to several court decisions that found certain segregated school districts in Ohio. The policy directed the ODE to identify, monitor, and correct discriminatory practices that affect racial balance in school districts.

Recently the U.S. Supreme Court has issued decisions that affect this rule. The Executive Committee agreed that the board should review the policy and suspend part of the policy on monitoring school racial balance, which is now not aligned with current federal law.

Steve Millett chair of the Subcommittee for Education in the Global Economy (EDGE), led a discussion about the work of the subcommittee and the supporting strategies to implement the Ten Ideas for Education in the Global Economy. This list was developed by the subcommittee through research and stakeholder involvement and feedback, and extensive outreach with the business community. The subcommittee requested that the SBE adopt a resolution in support of the following three supporting strategies that are critical in order for Ohio's schools to be competitive in the global society.

  • Modernize the Content and Delivery of Standards and Assessment: Revise the academic content standards to provide more depth and less breadth; align the standards to international best practices; align the standards to the Top Ten list; require learning to be project-based and integrate technology; ensure that the next generation of assessments and model lessons reflect changes in the standards; and, provide educators with adequate support systems to deliver the new standards.
  • Create Capacity for Personalized Learning: Develop guidelines and build capacity for schools and districts to implement for all students yearly personalized learning plans that include knowledge, skills and behavior objectives.
  • Engage the Business Community: Reengage business advisory councils at the local and/or regional levels; draw from the best practices of career-technical education models; provide students more opportunity for practical application of knowledge, skills, and behaviors so that education has real-world relevance.

Following the presentation the board discussed how this information should be disseminated to education and business stakeholders through the web and outreach with school district superintendents. There might need to be enabling legislation to enact some of the support strategies, and the work to implement the strategies will be assigned to the capacity and achievement committees.

Deborah Delisle, Superintendent of Public Instruction, presented the report of the superintendent, which included information on the schools and districts selected to be participants in the Performance Assessment Pilot Project; an update on the state budget; the selection of Jennifer Walker as the Ohio 2009 Teacher of the Year; and a reflection of the first week as superintendent. She concluded her remarks by noting the importance of the work of all educators and that teachers “hold the hearts and dreams of children in our hands.”

The next State Board meeting will be held on January 12-13, 2009.

Resolutions

  • Approved a Resolution of Intent to amend OAC Rule 3301-10-01, School Enrollment/Domestic Violence
  • Approved a Resolution of Intent to amend OAC Rule 3301-46-01, Innovative Education Pilot Programs
  • Approved a resolution to amend OAC Rule 3301-51-20, Blind/Deaf Schools Standards for Admission, Transfer, Suspension or Expulsion
  • SUBSTITUTE RESOLUTION. Approved a motion to refer the Professional Conduct Rules - Rules 3301-73-01-06, 08, to 10, 13, 16, 20 to 26, back to the Capacity Committee.
  • Approved a Resolution of Intent to rescind and adopt OAC Rules 3301-103-01 through -07, and to rescind Rule 3301-103-08, Autism Scholarship Program Rules
  • Approved a resolution to adopt a record retention policy for records maintained by the Ohio Department of Education Office of Board Relations.
  • Approved a resolution to adopt the report An Integrated Approach to School Funding Reform in Ohio.

Resolutions added to the original agenda:

  • Approved a resolution to adopt the recommendations of the Education in the Global Economy/Quality Middle and High Schools Subcommittee regarding the subcommittee's Supporting Strategies for Education in the Global Economy.
  • Approved a resolution to refer for immediate review the Equal Educational Opportunity Policy and to suspend pending that review the portion of the policy on monitoring school racial balance.
  • Approved a resolution recognizing the contributions of Board members whose terms will end on December 31, 2008.

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International Education in Ohio

Several initiatives are currently underway in Ohio to support international education and bench marking Ohio’s education system to best practices in the world. These initiatives were implemented following the release in 2007 of an analysis of Ohio’s education system by Achieve, Inc., Creating a World Class Education System in Ohio.

EDGE Committee Recommendations for Student Success in the Global Society

On December 8, 2008, the State Board of Education adopted the recommendations of the Education for the Global Economy Subcommittee, Steve Millett and Colleen Grady co-chairs, including the following three supporting strategies that are critical for the competitiveness of Ohio schools:

  • Modernize the Content and Delivery of Standards and Assessment: Revise the academic content standards to provide more depth and less breadth; align the standards to international best practices; align the standards to the Top Ten list; require learning to be project-based and integrate technology; ensure that the next generation of assessments and model lessons reflect changes in the standards; and, provide educators with adequate support systems to deliver the new standards.
  • Create Capacity for Personalized Learning: Develop guidelines and build capacity for schools and districts to implement for all students yearly personalized learning plans that include knowledge, skills and behavior objectives.
  • Engage the Business Community: Re-engage business advisory councils at the local and/or regional levels; draw from the best practices of career-technical education models; provide students more opportunity for practical application of knowledge, skills, and behaviors so that education has real-world relevance.

International Advisory Committee Plans to Prepare Students for Success

The Ohio Department of Education (ODE) with the support of the Longview Foundation, convened an International Education Advisory Committee (IEAC) in 2006 to plan strategically and take action to prepare Ohio students for success in the 21st century world. The advisory committee, consisting of educators, business leaders, foundation representatives, policymakers, and community organizations, held a conference in April 2007 to receive stakeholder input to develop a strategic plan. The IEAC also held regional summits in the fall to share draft recommendations that define international education “as a comprehensive approach” that includes Global Context, Global Content, Global Thinkers, and Global Systems, in which Ohio’s education system is bench marked against the highest performing systems in the world. Ohio educators are connected to communities of practice that extend around the globe and that bring innovative ideas and practices to our schools.

The IEAC also developed the following four goals to implement its mission statement:

  1. Ohio citizens will understand the global context and diversity of relationships among themselves, their communities, and the world.
  2. Ohio educators will deliver global content as a component of a world-class education and will create systems to support it.
  3. Students will become global thinkers with 21st century skills, so they can think critically and creatively across disciplines, manage complexity, embrace technology, and value diversity.
  4. Ohio citizens will achieve greater economic prosperity and improved quality of life.

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National Education News

Secretary of Education Selected

President-elect Barack Obama announced on December 17, 2008 the selection of Arne Duncan, the superintendent of the Chicago Public Schools, as the new secretary of the U.S. Department of Education. Mr. Duncan graduated from Harvard University magna cum laude in 1987 with a major in sociology and was appointed by Chicago Mayor Richard M. Daley in 2001 as the CEO of the Chicago Public Schools. He is considered a pragmatist, and, as one of President-elect Obama’s education advisors, has promoted teacher and principal preparation and training, literacy coaches, early childhood education, and math and science education.

Federal Role in School Funding

In an op-ed article “Nixon’s the One—to Imitate on Education” (New York Times, December 27, 2008), Matt Miller suggests that President-elect Obama take a look at the recommendations of a commission on school funding formed during the Nixon administration. That commission recommended that the federal government provide 25-30% of funding for public schools through a national tax and direct federal funds to school districts with the lowest tax base to provide more equitable funding for all school districts. According to the article, “Mr. Obama says rebuilding rundown schools will be part of his stimulus plan. That’s a start, but a one-time construction boon can’t solve the perennial woes caused by the very structure of American school finance. At a moment when we’ve basically nationalized the banking, mortgage, and insurance industries, a little nationalization of school operating costs is in tune with the times.” Read more >

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