Meeting of the Board of Regents | October 2008

Wednesday, October 1, 2008 - 9:35am

sed seal

THE STATE EDUCATION DEPARTMENT / THE UNIVERSITY OF THE STATE OF NEW YORK / ALBANY, NY 12234

TO:
FROM:	Diana M. Hinchcliff
SUBJECT:	Proposed Regents 2009 State and Federal Legislative Priorities
DATE:	October 8,2008
STRATEGIC GOAL:	Action to Implement Regents 2009-10 State Budget Proposal and State and Federal Legislative Proposals
AUTHORIZATION(S):

Executive Summary

Issue for Discussion

Proposed list of Regents state and federal legislative priorities for 2009.

Reason(s) for Consideration

Implementation of Regents 2009-10 state budget proposal and state and federal legislative proposals.

Proposed Handling

Each committee will discuss its respective proposals during the October meeting and direct staff to make necessary changes, deletions and additions.

Procedural History

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�� Each year the Regents identify policy issues that will require legislation for implementation. Some are carried over from the previous year and some are new. Those requiring a state appropriation are included in the Regents budget proposal. The others are proposed for introduction during the legislative session. The process for developing legislative priorities is synchronized with the process for developing budget proposals.

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The Regents priority federal and state legislative recommendations for 2009 propose new, reauthorized or extended statutory authority that would enable SED to carry out legislative mandates and Regents policy. The priorities include proposals for legislation needed to execute actions that would be required by the Regents 2009-10 budget priorities and funding requests related to federal statutes. Not all budget priorities would require legislation and not all the legislative priorities are related to the budget request.

Following is a complete list of all the proposed Regents legislative priorities, including budget priorities that would require legislation. This would constitute the Regents federal and state advocacy agenda for 2009.

Background Information

Governor Paterson addressed the state’s weakened economy by requiring all state agencies to implement a 3.35 percent reduction in their 2008-2009 operating expenses. He imposed an additional 7 percent reduction in State Operations spending due to the continuing economic downturn. The legislature returned for a special session in August and reduced Aid to Localities spending by 6 percent, excluding school aid. On October 3, following a meeting with legislative leaders, Governor Paterson projected an additional $1.2 billion deficit in the 2008-09 budget and called for a special “economic” session of the legislature for November 18. He asked the leaders to propose $2 billion in additional cuts. The state budget deficit for 2009-10 is currently projected to be at least six times greater than this year’s, as the state’s and nation’s fiscal conditions continue to deteriorate.

Recognizing that new program funding is impossible, the Department’s 2009-10 budget and legislative requests will focus on three themes:

Ensure program stability by sustaining our critical programs that have been proven to work and the policies that support them.
Establish or increase fees to ensure stable and adequate funding for critical programs and operations.
Continue the State Aid Foundation Formula as the state’s fiscal situation allows.

A complete description of proposed Regents priority federal and state legislative proposals for 2009 is attached.

Recommendation

The Regents should discuss the proposed priorities in their respective committees and direct staff to any necessary changes, deletions and additions.

Timetable for Implementation

October Meeting: Board committees evaluate and recommend adjustments to the 2009-2010 draft budget and legislative priority areas, themes and initiatives.

November Meeting: Board acts on the 2009-2010 budget proposal, the Regents priority federal and state legislative proposals and the 2009-2010 State Aid proposal.

PROPOSED REGENTS 2009 STATE LEGISLATIVE PRIORITIES

A. SUSTAIN CRITICAL PROGRAMS

1. Reduce the Number of Required School District Reports and Plans

Description: A substantial portion of the reporting and planning requirements imposed on school districts by state statute should be eliminated if they are duplicative, unnecessary or outdated. Both the Commission on Property Tax Relief and the Commission on Local Government Efficiency and Competitiveness recommended an end to unfunded mandates. Legislation is needed to eliminate statutory requirements and allow SED to rescind regulations that are duplicative or unnecessary. Plans and reports would be limited to those necessary to carry out critical state interests such as maintaining school district accountability, closing the student achievement gap and protecting health and safety of students, teachers and administrators in schools. Regulations based on federal statutory requirements would be streamlined where possible and state and federal requirements would be aligned. The net effect would be to require data reporting to only one source and to continuously improve data collection.

History: New in 2004. A.8687-ANolan/S.1773-A-Saland in 2008. S.1773 passed the Senate.

2.Allow Retired Teachers to Teach in Hard-to-Staff Schools and Subjects Without Affecting Their Pension

Description: There is a severe shortage of qualified, certified teachers in the arts, math, science, bilingual education, career and technical education, English as a second language, school media and bilingual special education in urban and rural school districts throughout the state. Schools under registration review and other low-performing schools with challenging teaching environments historically have had difficulty attracting qualified teachers. There is a significant turnover rate among new teachers and those in high-need schools. The number of baby boomer teachers retiring will increase each year and there are not enough new and experienced teachers to replace them. The Retirement and Social Security Law should be amended to permit retired public employees who hold a valid teaching certificate to teach subjects and in areas for which there is a shortage of teachers and in high-need schools without a cap on the salary they earn while also receiving a state pension. The state Commissioner of Education and the New York City Department of Education chancellor would have to certify the need for teachers, and the term of their employment would be limited. This would help relieve the statewide shortage of qualified teachers for these subjects, areas and schools.

History: New in 1999. S.5752-B-Saland/A.9075-B-Abbate in 2008. Supported by New York State United Teachers, New York State School Boards Association, New York State Council of School Superintendents and New York City Department of Education. Did not pass either house.

3.RequireCriminal History Checks and Fingerprinting

Office of Cultural Education Employees & Volunteers

Description: Legislation is needed to require OCE employees and volunteers to be fingerprinted as a condition of employment or acceptance as a volunteer. This would protect children and students who tour the State Museum, State Archives and State Library and reduce the possibility of theft of valuable and irreplaceable items and artifacts.

History: First proposed in 2006. A.8683-Nolan/S.4331/Saland in 2008. Did not pass either house.

Employees in Special Education Placements

Description: Legislation is needed to protect the health and safety of students with disabilities who attend various special education schools in settings outside of a public school district or BOCES by requiring fingerprinting and criminal history record checks of prospective employees. This is already required of prospective employees of school districts, charter schools and BOCES. The City of New York fingerprints employees of special education schools with which it contracts but there is no such requirement for schools that do not contract with the city. Leaving special education students unprotected creates a serious risk that individuals convicted of crimes such as sex offenses involving children that would disqualify them from serving in public schools will be employed in schools that serve these students. The legislation also should clarify that existing law relating to reporting, investigation or identification of child abuse by persons in an educational setting would apply to non-residential special education schools and programs, but not to residential schools and programs already subject to child abuse and neglect reporting under the Social Services Law.

History: New in 2006. A.8681-Nolan/S.5774-Saland in 2008. S.5774 passed the Senate.

4. Update the Public Accountancy Statute

Description: The practice of public accountancy has evolved to include professional services and practices that were not offered when the current statute was enacted in 1947. The definition of practice should be expanded through legislation to include all types of professional services that reflect contemporary business practices, including tax return preparation, financial planning, management consulting, investment management and the like, to strengthen public protection.

History: First proposed in 1999. A.11696-A-Glick/S.7497-B-LaValle in 2008. A.11696 passed the Assembly.

5. Strengthen Early Childhood Education

Description: The compulsory school age is 6. Current law makes kindergarten optional and allows school districts to offer only half-day kindergarten programs. Of 678 school districts, 34 are providing half-day programs while 603 offer full-day and 41 offer a combination of full-day and half-day. Legislation is needed to give SED authority to require children to enter school at age 5 to give them a good start on their education.

Over 80 percent of 4-year-olds are in day care outside of the home before they start kindergarten. Children who start their education behind often stay behind because there is no “catch up” curriculum. How a child reads at the end of first grade predicts with 80 percent reliability how he or she will read at the end of third grade. Research overwhelmingly shows that acquiring academic skills and knowledge by age 6 correlates with later academic success in school and in life. Children in full-day kindergarten would increase their educational skills. Early education has strong economic benefits, according to major research studies: it reduces drop-out rates and the need for intervention services. Children with disabilities would have the continuum of services they need so they can be integrated in regular classrooms. Kindergarten, which is not a mandate now, would be less vulnerable to funding cuts. School districts often propose to eliminate kindergarten in tight budgets, causing great concern for parents and disadvantaging young students. Parents would be able to request a waiver from this requirement. Lowering the compulsory school age from 6 to 5, together with requiring school districts to provide full-day kindergarten, would help ensure that all students get a good start.

History: New in 2006. A.8688-Nolan in 2008. A.8688 did not pass the Assembly; there was no bill introduced in the Senate.

6. BOCES Reform Initiative

Pursuant to the recommendations of the Commission on Property Tax Relief and the Commission on Local Government Efficiency and Competitiveness, the district superintendents are developing a proposal to expand and enhance BOCES’ role in providing intermunicipal and component school district services. This proposal will be presented to the Regents at a later meeting.

7. IDEA Reauthorization Conforming Legislation

Each year relevant state law must be amended to conform to final federal regulations for the Individuals with Disabilities Education Act, which was reauthorized in 2004.

B. ENSURE STABLE AND ADEQUATE FUNDING

1. Stabilize the Professions Revenue Accounts

Description: There has been no increase in licensing fees for the professions since the 1980s even though statutes have been enacted mandating that SED establish and regulate numerous new professional licenses and programs. Legislation is needed to give SED authority to implement an across-the-board fee increase, which would enable us to fully discharge our responsibility to protect the public. The requested fee increase would allow the Office of the Professions to investigate and prosecute illegal practice, upgrade outdated technology (needed are a new computer system, document scanner and interactive telephone system), investigate and prosecute more discipline cases and secure expert witnesses, cover the increase in expense for providing peer assistance to nurses in the Professional Assistance Program (those who have substance abuse problems), fully fund meetings of the state boards that provide professional advice to the Board of Regents, cover the increased cost to manage the licensee photo ID program and pay credit card company fees for licensees who use our online registration.

History: First proposed in 1999 as a fee increase for prosecution of illegal practice. A.1928-Canestrari in 2008, which did not pass the Assembly. There was no bill introduced in the Senate. This is a new, broader proposal.

2. Stabilize the Cultural Education Revenue Account

Description: The Cultural Education account was created by an act of the legislature in 2002, which also transferred to it all Office of Cultural Education functions previously supported by state General Fund operations appropriations. It provides a major share of the operational funding for the State Museum, State Archives, State Library, and Office of Public Broadcasting and Educational Television. The fund also provides annual support of $1,200,000 to the General Fund; $1,000,000 to the Summer School for the Arts; up to $650,000 for the Empire State Performing Arts Center program; and up to $3,272,300 for the New York State Theater Institute program.

The CE account is modeled after the Local Government Records Management Improvement Fund (LGRMIF), which provides funding for local government grants and related operations. LGRMIF is funded by a county-collected surcharge of $5.00 for recording, entering, indexing, or endorsing a certificate on any instrument or for assigning an index number to actions pending in county court or Supreme Court. The 2002 statutory change kept the LGRMIF charge in place and applied an additional $15.00 surcharge to support the new CE account. Counties retain $.25 of each LGRMIF surcharge and $.75 of each CE account surcharge to defray their collection expense.

The balance in the CE account has experienced increases and decreases over the life of the fund. This is due to national and state economic conditions at any given time that have suppressed the housing market and, therefore, affected the number of transactions subject to the surcharge. Annual revenue from fees has declined more than 30 percent from the historically high levels of the first several years and revenue from interest has declined 84 percent from two years ago and will disappear by next year. Annual revenue (before transfers out of the fund) is now below the cost of operating the Office of Cultural Education’s programs. The current economic downturn has reduced revenue severely, causing the account balance to decline sharply. Reserve funds will be exhausted within the next year.

Legislation is needed to amend the current fee structure to provide that when the actual cash balance of the CE account, adjusted for accrued obligations, falls below $7,500,000 as of April 1, 2009 or any April first thereafter, an additional $7.50 surcharge would be imposed. The commissioner of education, with the approval of the director of the budget, would be authorized to suspend the additional surcharge for a subsequent state fiscal year in which the actual cash balance of the account, adjusted for accrued obligations, exceeds $15,000,000 on April 1. The additional surcharge would remain suspended unless the actual cash balance of the cultural education account, adjusted for accrued obligations, falls below $7,500,000 on a subsequent April 1.

History: This is a new proposal.

3. Stabilize the Local Government Records Management Improvement Fund

Description: The Local Government Records Management Improvement Fund (LGRMIF) was established in 1989 and is funded by a county-imposed surcharge of $5.00 for recording, entering, indexing, or endorsing a certificate on any instrument or for assigning an index number to actions pending in county court or Supreme Court. Counties retain $.25 of each surcharge to defray collection expenses. The fund supports: (a) grants to local governments to improve records and archives administration; (b) a regionally-based program of technical assistance and advisory services to local governments for records management; and (c) State Archives operations to administer the fund. It also supports the Documentary Heritage Program and the Archives Partnership Trust through revenue transfers under statute. In 2002, a statutory change applied an additional $15.00 surcharge to support the new Cultural Education account.

The balance in the LGRMIF fluctuates depending on state and national economic conditions that suppress the housing market. The current economic downturn has reduced annual revenue from fees by 32 percent from four years ago. The cost of operating the programs it has funded over its almost 20-year life has increased substantially. The current projection is that funds available for records management grants to local governments will decline significantly over the next several years unless additional revenue becomes available.

Legislation is needed to amend the current fee structure to provide that when the actual cash balance of the fund, adjusted for accrued obligations, falls below $5,000,000 as of April 1, 2009 or any April first thereafter, an additional $2.50 surcharge would be imposed. The commissioner of education would be authorized, with the approval of the director of the budget, to suspend the $2.50 surcharge for a subsequent state fiscal year in which the actual cash balance of the account, adjusted for accrued obligations, exceeds $10,000,000 on April 1. The additional surcharge would remain suspended unless the actual cash balance of the cultural education account, adjusted for accrued obligations, falls below $5,000,000 on a subsequent April 1.

History: This is a new proposal.

4. Fee for Regulating Oversight of Proprietary Schools

Description: Legislation is needed to increase and adjust current fees and fines to support SED’s oversight of non-degree-granting proprietary schools. This will protect students from illegal and unethical practices, create a candidacy school program to eliminate unlicensed schools, and create a disbursement schedule for private lenders that are required to reimburse students from the Tuition Reimbursement Account when schools go bankrupt or are in financial difficulty.

History: First proposed in 2006. Never introduced in the legislature.

PROPOSED REGENTS 2009 FEDERAL LEGISLATIVE PRIORITIES

NO CHILD LEFT BEHIND (NCLB) ACT

NCLB governs elementary and secondary education, mandates educational standards, and holds states, school districts, and schools accountable for the performance of all students.

Much has changed since the Regents first approved recommendations for the reauthorization of No Child Left Behind. The Regents have intensified their work on school improvement, educator development, growth models, graduation rates and other critical education reform issues. The U.S. Education Department (USED) has expanded its growth model and differentiated accountability pilot programs and is to release final Title I regulations shortly. National advocacy organizations are recasting their NCLB recommendations in the broader context of education reform. Members of Congress are revising their proposals and are interested in middle and high school reform and early childhood education. Following the November election, the country will have a new Congress and a new president who will not be so closely identified with NCLB or proposals that were discussed during the past two years of the current Congress.

These changes will provide an opportunity for the Regents to review and, if needed, revise their NCLB recommendations. This will take place before the end of the year.

Current NCLB Priorities. Tier 1 is top priorities; Tier 2 is secondary priorities.

Tier 1

Single Accountability Designation: Permit states to use Title I criteria alone, including the assessments of student subgroups, to determine when a school or district is “in need of improvement.” Additional measurements, under Title III and IDEA, should be used only to determine additional needs of special populations, not for school or district designations.

Tier 2 accountability recommendations: Permit states to allow certain categories of students more time to graduate; continue flexible policy on Adequate Yearly Progress methodologies (“n” size, confidence intervals, & indexing); adjust goal of 100% proficiency by 2014; impose sanctions only for failure to cooperate in making improvements.

Growth Models: Give states the option of using a growth model, a status model, or a combination of both to determine Adequate Yearly Progress.

Targeted Interventions and Differentiated Consequences: Permit schools to target remediation or interventions to the subgroups of students who are falling short of achieving Adequate Yearly Progress rather than imposing them on the entire student population of a school or district

Tier 2 recommendations: Permit greater flexibility in how and when districts provide school choice and supplemental education services (SES); adequately fund school choice and SES; expand access to and adequately fund Response to Intervention and Early Intervening Services for all students; replace the “persistently dangerous” school designation with a school safety index designed to create safe learning environments.

Assessments for Special Populations (English Language Learners and Students with Disabilities): Permit states to develop valid and reliable assessments for different sub-populations of ELLs and students with disabilities that will lead to more effective interventions; provide adequate support for those interventions; and provide fiscal and programmatic incentives to implement best practices in raising achievement.

Highly Qualified Teachers (HQT): Continue to support state efforts to meet reasonable HQT goals and provide incentives for states to pilot approaches to improve effectiveness of teachers and other school leaders

Tier 2 recommendation: Permit professional development funds to be used for PBS TeacherLine and Ready to Teach products.

Additional Tier 2 Recommendations

Add the Strengthening Kids’ Interest in Learning and Libraries (SKILLs) Act – Would require states to set goals to guarantee that all students will be served by highly qualified, state-certified school library media specialists and have the library resources they need to succeed.

Funding – Fully fund all mandated activities; increase flexibility in directing funds to where they are most needed

School readiness – Support, align, and strengthen Reading First, Early Reading First, Even Start, and Ready to Learn Television; expand outreach; permit public libraries to participate as partners

Due process – Provide more lead time to fulfill USED information and data requests; expand public disclosure of information provided to USED and decisions made; provide opportunities for review of USED findings and appeals of determinations.

Proposed Priority for 2009

One of our recommendations will be to add provisions of the No Child Left Inside Act to fund states’ and schools’ expansion of environmental education, including increasing teacher capacity and strengthening and developing environmental literacy plans.

WORKFORCE INVESTMENT ACT (WIA)

WIA focuses on the education and training needs of out-of-school youth and adults and economic and workforce development. It connects postsecondary career and technical education and training, adult education and family literacy, and vocational rehabilitation.

Title I- Workforce Investment Act: Authorize separate funding for the one-stop delivery center infrastructure; maintain the representative balance on youth councils; simplify the determination process for youth participation; ensure representation of key partners on State and Local Workforce Investment Boards.

Title II- Adult Education and Family Literacy Act: Reward good state performance; expand funding for state leadership activities; retain state maintenance of effort requirements; create a separately funded health literacy program; create a separately-funded literacy zone pilot program.

Title IV- Vocational Rehabilitation Act: Enhance the current funding formula; create a separately-funded transition program; create a separately-funded program for veterans’ services; provide incentives to increase the supply of qualified vocational rehabilitation counselors; maintain the current limit on intensive supported employment services; increase opportunities for entrepreneurship and self-employment; expand the Social Security Administration’s demonstration authority to test work incentive provisions to increase earnings; modify the funding formula for Centers for Independent Living; improve the effectiveness of Statewide Independent Living Councils.

E-RATE (SCHOOLS AND LIBRARIES) PROGRAM

The E-Rate Program provides schools and libraries with access to affordable telecommunication services, Internet services, and cabling and network infrastructure.

Secure permanent exemption from the Anti-deficiency Act (restricts the flow of funds to schools and libraries)
Simplify the application process
Prevent additional federal requirements for blocking and filtering access to Internet content that schools and libraries need.

EARLY CHILDHOOD EDUCATION

Participation in a high-quality early education program builds the foundation for a child’s success in school and in life.

Support passage of the Providing Resources Early for Kids (PRE-K) Act or a similar proposal that would create a formula grant program for states to help local pre-school providers improve the quality of their programs

Support passage of the Prepare All Kids Act, Ready to Learn Act, or a similar proposal that would authorize funding to help states make voluntary high-quality full-day pre-kindergarten available and affordable for all children.

MUSEUM AND LIBRARY SERVICES ACT (MLSA)

The MLSA is the main source of federal support for the nation’s libraries and museums. It is due for reauthorization in 2009.

Library Services and Technology Act: Align priorities of the state grant program with the act’s overall goals and purposes; authorize the Librarian Education for the 21st Century program to ensure a supply of qualified library professionals; improve data collection by authorizing the Institute of Museum and Library Services to collect data and require data collection to be coordinated by statewide advisory committees

Museum Services Act: Create a state formula grant program for museums similar to the one for libraries.

PRESERVE AMERICA’S HISTORICAL RECORD (PAHR) ACT

The PAHR Act would provide federal support to state and local governments, historical societies, libraries, and related organizations to preserve state and local archival records. The recommendation is to support its passage.

PROPOSED REGENTS 2009 FEDERAL FUNDING PRIORITIES

(For Fiscal Year 2010)

Note: The federal fiscal year will be October 1, 2009 to September 30, 2010. This will be referred to as the 2010 fiscal year.

NO CHILD LEFT BEHIND

Title I, Part A – Grants to Local Educational Agencies

FY 2010 Funding Request: $16 billion