NACTEI “The Beltway Blues”

1. Will Perkins Students Be Left Behind Are You Legal? Compliance and Enforcement Issues Under Perkins. Michael Brustein 3105 South Street, N.W. Washington, DC 20007 202.965.3652 Mbrustein@bruman.com NACTEI“The Beltway Blues”

2. Due to partisan rancor, election year politics, and a short legislative schedule: Perkins Reauthorization Doubtful this year, but Hill staff optimistic

3. Legislative staff predicts a bipartisan package by the end of July.

4. “Right now I see no evidence that the President’s proposal is supported by members of Congress.” Jane Oates April 21, 2004

5. “No one has vigorously endorsed Bush’s proposal” Kelly Scott April 21, 2004

6. There are no “landmines” as in the WIA. Jane Oates April 21, 2004

7. Who will take the lead on reauthorization?Congress has defaulted on Article I responsibilities

8. “The Perkins Vocational Education Program has remained fundamentally unchanged since 1917.” President Bush April 6, 2004

9. The President proposes to modernize this pre-World War I program to better secure the needs of the 21st Century Worker. White House April 6, 2004

10. The President proposes to redirect Perkins into SecTech. Secondary programs must offer 4 years English, 3 years math and science, 3 years social studies, as part of vocational curriculum.

11. The FY 2005 Budget Requests $1 billion to promote the development of a new generation of academically and technically rigorous career pathway programs. Susan Sclafani April 1, 2004

12. “If they are going to do the same things with the money, it’s a waste of money.”Susan Sclafani October 26, 2003

13. Perkins funds would only be available for programs that lead seamlessly into further education.Susan Sclafani April 1, 2004

14. No funding for most current voc ed programs, including Tech Prep, because they duplicate activities proposed in SecTech.Susan Sclafani April 1, 2004

15. “Your rhetoric and your budget don’t match.”Rep. Sherwood, R-PA April 1, 2004

16. “In my opinion, Perkins should be doubled.”Rep. Peterson, R-PA April 1, 2004

17. Bush Budget for FY 2005 “Career and technical training in our nation’s high schools has largely been an outdated relic, suitable for the classroom realities of the 1950’s…”

18. Bush Budget for FY 2005 “Students participating in vocational education programs in our nation’s high schools are often limited to courses that offer a narrow set of job skills and poor academic preparation for college and the modern workforce.”

19. Bush Budget for FY 2005 “There has been scant evidence that the Department’s Vocational Education State Grants Program leads to positive student outcomes despite decades of increasing federal investment.”

20. Congress approved $1.195 billion for Perkins for the period July 1, 2004 to June 30, 2005.

21. Perkins has been flat funded for approximately 20 years.

22. Funding for July 1, 2005 to June 30, 2006 Continuing Resolution Omnibus / Minibus

23. States and Locals will operate under current plan (with new benchmarks) for 7-1-04 to 6-30-05 and probably7-1-05 to 6-30-06

24. NCLB Issues Impacting Perkins • Increased Academic Rigor • Unfunded Mandate • Highly Qualified Teachers • Scientifically Based Research • Adequate Yearly Progress - Sanctions

25. Unfunded Mandates: • Key election issue • Intrusion on local prerogatives • Read what you vote for

26. Highly Qualified Teachers Teachers must be highly qualified (Bachelor’s degree) if teaching core academic subjects.

27. Perkins needs to rectify this concern – business and industry want experienced workers as career tech instructors. Jane Oates April 2004

28. Scientifically Based Research (SBR) • Curricula, professional development, instructional methodologies must be validated by rigorous evidence of effectiveness (national clearinghouse for SBR)

29. Adequate Yearly Progress (AYP) Must score higher on standardized English and math tests to make adequate yearly progress

30. AYP • All subgroups (racial, ethnic, low income, disabled, LEP) must make AYP • Any subgroup fails, the school fails • All schools must be 100% proficient by 2013-2014

31. AYP • At least 95% of all students enrolled and 95% of each subgroup must take assessment • Several states fail on participation rates • Failing AYP for 2 consecutive years = school improvement

32. Contrast AYP to Perkins Improvement • Transfers – 1st year in school improvement • Supplemental Services – 2nd year of school improvement • Corrective Action – 4th year • Restructuring – 5th year

33. House is using Perkins III as the framework, not SECTECH

34. The Two Key Questions: Will Perkins serve only career tech students? Will Perkins become a competitive program? Can the State ensure quality through formula grants?

35. In the past, career tech made the effort at collaboration. In the future, academic teachers must work collaboratively in order to serve all students. Susan Scalafani April 21, 2004

36. The New Legal Framework • Focus on career tech • Sweeping emphasis on accountability with new assessment • Aligned with NCLB – boost academic rigor of courses • Emphasis on integration, articulation • P/S dollars linked to WIA – partnerships with business • Not prescriptive as to where CTE takes place as long as students are academically prepared to enter college • Sanctions

37. “The Most Significant Compliance and Enforcement Issues Under Perkins”

38. Issues • The Compliance and Enforcement Process • Matching / Hold Harmless – State Admin • Maintenance of Effort • Supplanting • A-87 Allocability • Lapsing of Federal Dollars

39. The Compliance and Enforcement Process • Meaning of State-Administered Program • Single Audit Act of 1980, OMB Circular A-133 • The Office of Inspector General (e.g. Florida, Indiana) • The Compliance Supplement

40. Legal Authorities • Perkins Act • A-87 • A-102 • EDGAR • No Program Regulations

41. Monitoring Grantees are responsible for managing the day-to-day operations for grant and subgrant supported activities to assure compliance. 34 CFR 80.40

42. Grantee Monitoring Must Include: • Performance goals are being achieved • Each program, function, or activity 34 CFR 80.40

43. GEPA Single State Application20 U.S.C. §1232dGeneral Requirements for State–Administered Programs • Monitoring subrecipients • Enforcement of obligations • Providing t/a • Corrections of deficiencies • Assure proper accounting of all funds

44. State-Administered Programs • SEA responsible for lawful expenditures • SEA must effectuate audit resolution

45. 1996 Amendments to the Single Audit Act31 U.S.C. §7502(f)(2)(B) Pass through entities must monitor a subrecipient’s use of federal funds through site visits, limited scope audits, or other means

46. Reliance on Desk Review is insufficient. OMB

47. OMB expects pass-through entities to consider various risk factors in developing subrecipient monitoring procedure(relative size and complexity of award, prior experience)

48. Unallowable Audit Costs • Single Audit not conducted in accord with A-133 • Audits of entities expending under $500,000 per year

49. Pass-through entity may charge to federal grant the cost of “Limited Scope Audit.”

50. Limited Scope Audit Address one or more of the following types of compliance requirements: • Allowable costs / cost principles • Eligibility • Matching / MOE • Earmarking • Reporting