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A summary of the 2019 Legislative Session, including key actions and legislation related to funding, state revenue policy, and emphasis on student needs in Iowa.
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Legislation in the 2019 Session • 2,067 pieces of legislation introduced, some actually considered • 169 agreed to by the House and Senate in the same form and sent to the Governor • Of those 169, 78 were finished the last week of Session • Governor vetoed sparingly, nothing that impacted schools.
Action Comments • HF 306 set 2.06% increase in SSA, Was signed on Feb. 19, 2019, pretty close to Feb. 14, 2019, 30‐day deadline. • Third highest increase in a decade. • Exceeds the REC revenue estimate for FY 2020. • Completed on time based on new deadlines (within 30 days of the Governor’s budget for the upcoming school year, so essentially four months before the school fiscal year begins.) • Other funds (transportation and formula equity, state penny extension, MH Training) must be considered in total package. • But SSA is the bread and butter of school district budgets. Some data:
State Revenue Policy • School funding adequacy is a function of sufficient state revenues and mix of revenue sources for schools. • Continued property tax relief focus confuses the issue – state investment increases to make up for a reduced property tax dollar but schools don’t receive those funds as additional revenue. • Tax cuts enacted in 2018 are still impacting the state’s general fund. Proposals in 2019 session (elimination of inheritance tax, for example) are still alive for next session. UEN typically opposes tax cuts at the state level that will negatively impact the state’s ability to pay for adequate school funding. • Similar issue with property tax relief through the formula. As state money relieves property taxes through the formula, the cost of SSA to the state gets bigger and bigger. A mix of resources, like a diversified investment portfolio, insulates the state general fund from economic downturns.
State Revenue Policy • State General Fund Revenue Estimates for the FY 2020 budget year were lackluster, with projected growth set at 1.6%. • With the FY 2019 estimate of 4.6% and nearly full employment in Iowa, it’s not the economy that is primarily responsible for a lower FY 2020 revenue pie. • The impact of tax reform enacted in the 2018 session is felt in the lower income tax revenue projections despite some increasing sales tax revenue projections. • Check out the Legislative Digest for additional information on tax cuts, policy decisions limiting state revenue, and increased tax credit thresholds of private school scholarships (STOs) that were raised in each of the last two Legislative Sessions.
UEN Funding: Emphasis on Student Needs lacking • Equity requires our formula to meet student need as poverty in Iowa has nearly doubled in the last two decades. Iowa’s school formula must recognize the needs of students from low-income or non-English speaking families, or at-risk of dropping out, to fund programs for student success. Early investment increases access to quality preschool programs which prevent higher costs later.
Action Comments • ELL bill, SF 445, introduced in the Senate, approved by Education Committee, now in Appropriations Committee. • No action on poverty weighting this year • Diversity Plan Open Enrollment Regulation Repeal (SF 199 approved by Senate Education Committee and HF 6 in House Education Committee) although both died, still alive for 2020 Session. Negatively impact 5 high poverty districts in Iowa. • ELL - What should policy be in the future? Choices include increased weighting, increase years of eligibility, adding ELL weighting to PK students, or mirroring special education tiered weightings with levels of ELL services based on an IEP. • Poverty: the national average additional weighting for low-income is 29%. Iowa’s at-risk total is $16 million (based half on enrollment and half on grades 1-6 FRPL) and dropout prevention generates $125.5 million. Where does that stack up for Iowa?
National Average is 29% of per pupil funding dedicated to educating students from low-income families. Sioux City is at 6.22% of DCPP.
In 2001, only 4 districts had more than 50% of students eligible for FRPL. IFYI – Diagonal was the state high at 60.2%)
Children from families with incomes at or below 130% of the poverty level are eligible for free lunch those 130-185% eligible for reduced lunch. Districts in the largest and smallest enrollment categories had the highest percentage of students eligible for free or reduced price lunch (Table 1-7). (FYI – Postville is at 100% in FY 2019)
State Penny Extension Des Moines East High Est. 1861 This building built in 1911 “New” Gym in 1955 Renovated in 2006
Action Comments • HF 546 was approved by 95 House members and 48 Senators sending it to the Governor. • Extends through Jan. 2051. • Increased contribution to property tax equity and relief over time to 30% of the total revenue. • Increased public input through public hearings and reverse referendum. • Still need an RPS vote. • Added safety and security equipment as an allowable expense. No other action on funding for security staff. • Increase in PTR will make it harder to repeal in 2051. • See specifics in the Legislative Digest.
Action Comments • HF 307 was enacted. $19 M in transportation in the formula for FY 2020. • Only two UEN districts benefit: • Waterloo $277,652 • College Community $287,006 • Formula supplement instead of a grant – much more secure. • Reimbursement is based on prior year’s expenditures (and other factors in a formula) • Brings all districts down to $381 per pupil enrolled (state average was $330 per pupil enrolled in 2017-18) • DE is required to review usage and the formula. • See specifics in the Legislative Digest.
Action Comments • HF 307 was enacted. $2.9 M in the formula for FY 2020. • Closes the gap by another $5 per pupil. • UEN Impact: • 12 UEN Districts receive $5 per pupil spending authority increase • 5 UEN Districts receive property tax relief. • $1.7 million reduces property taxes in those districts with higher DCPP • $1.2 million increases DCPP by $5, closing the gap to $165 from highest to lowest DCPP • At this rate, it will take 33 more years to eliminate the gap. • See specifics in the Legislative Digest. • With transportation solution in place, shift gears to another inequity, such as needs of students from low-income families and ELL students.
Teacher Shortage and Quality Instruction • School districts require maximum flexibility to provide great instruction to all Iowa students. • Some progress in 2019, but schools will still struggle with enough applicants to fill needed positions, in some cases none at all, and in keeping great people when other private sector jobs pay more. • Diversity of the applicant pool is also critical for urban districts who strive to have teachers reflective of student demographics. • Loan forgiveness and grow-your-own strategies are on the list. • The responsibility for teacher pay that is not competitive in Iowa economy is lack of adequate funding.
Action Comments • SF 394 allows several online learning options to meet offer and teach. • SF 603 Concurrent Enrollment for 1 math or 1 science course to meet offer and teach. • SF 159 Praxis requires DE to set score and creates conditional license for a new teacher with a job offer. • Online Learning Flexibility was a priority for UEN districts. Local control over online educational delivery with four options is appreciated. • Some flexibility will certainly help all districts attract and retain great teachers, but UEN districts may not take advantage of SF 603 benefits. • This is just a start: still need some work through resources for loan forgiveness, incentives for teachers to work in shortage area schools, CTE strand to recruit students into teaching, and additional flexibilities.
Measure for Economic Competitiveness: Teacher Pay Penalty • Economic Policy Institute: The teacher pay penalty has hit a new high. Trends in the teacher wage and compensation gaps through 2017 • https://www.epi.org/publication/teacher-pay-gap-2018/ • “Teacher wage and compensation penalties grew from 2015 to 2017 • The public school teacher wage penalty grew from 17.0 percent to 18.7 percent from 2015 to 2017. • Teacher benefits improved relative to professionals from 2015 to 2017, boosting the benefits advantage from 6.5 percent to 7.6 percent. • Despite this improvement, the total compensation (wage and benefit) penalty for public school teachers grew from 10.5 percent to 11.1 percent in 2017.” • EPI Chart shows the gap:
Education Week, August 9, 2018 • Enrollment Is Down at Teacher Colleges. So They're Trying to Change • https://www.edweek.org/ew/articles/2018/08/09/enrollment-is-down-at-teacher-colleges-so.html?r=1004150315
Action Comments • HF 690 Children’s Mental Health System set up a system but did not provide funds. • HF 758 Education Appropriations included $2.1 million to AEAs for MH training of educators and a resource clearinghouse. • SF 376 MH content in High School health curriculum, did not get approved in the Senate. • SSB 1240 in Senate Human Resources Committee: telehealth screening and treatment in school setting. • HF 690 is a good structural start, but may not overcome the geography limitation of service location. Just like attracting teachers, there are MH services deserts without services. • AEA training is a good start, but it’s not a one-time thing. Must be ongoing. • Both SF 376 and SSB 1240 are in committee and alive for further action as the 2020 Session begins.
Action Comments • HF 546 State penny extension allows use for safety equipment & technology • SF 284 would have added an SRO as a position that generates weighting from operational sharing(no UEN districts currently use operational sharing) • School safety tech and equipment will be more accessible to school districts with the state penny extension • Costs for school safety personnel are still a challenge. Relates back to both adequate funding in general and lack of specific funding to train staff, implement safety plans and retain ongoing safety personnel.
Action Comments • SF 394 Online Learning Flexibility creates different ways for school to offer courses on line. • SF 603 Concurrent Enrollment Flexibility: allows use of either one math or science course to meet offer and teach. • SF 159 Praxis requires DE to set score and creates conditional license for new teacher with a job offer. • SF 438 District Flexibility: Impacts health screenings and many other less controversial provisions. Educational effort is needed to bring staff, parents and stakeholders on board. Approved in Senate but sits in House Education Committee. • What other flexibility would help your schools better educate students? Let us know.
Action Comments • SF 139is a 1-year extension of requirement that Iowa high school graduates complete ½ unit of financial literacy course • Applies to the class of 2020-21 • Which means that Fall 2019 juniors will have two years to complete the requirement. • 4-year extension was the goal but this compromise was supported by UEN • Pairs well with online learning flexibility to create additional options for high school students to get access to the course • Some transitional challenge since the content might be better suited to 9th or 10th graders when aligning all coursework. • Too much specificity in the Iowa Code on the contents of the course, which UEN could lobby to change in the future or just let it go.
School Choice Defense • Bills for ESA’s/vouchers in 2018 and 2019 Sessions did not advance through a chamber, but did get through Senate Education Committee in 2019 • Tax bills did expand STOs in 2018 and again 2019 • Costly – tight budget applies to this issue too • Resources on UEN Web Site
http://www.uen-ia.org/legislation.htmIncludes calls to action, issue briefs, list of priorities, UEN testimony, presentations
Issue Brief: School Choice • Costs outweigh the benefits: Issue Brief explains how vouchers don’t increase student achievement, they divert funds from public schools, exacerbate poverty and minority concentrations in urban centers, insufficient budgetary oversight, and no accountability through locally elected school boards. • Sources: Economic Policy Institute, School vouchers are not a proven strategy for improving student achievement, Feb. 2017 https://www.epi.org/publication/school-vouchers-are-not-a-proven-strategy-for-improving-student-achievement/ • Iowa Department of Education Certified Enrollment, https://www.educateiowa.gov/data-reporting/data-reporting/certified-enrollment • Institute on Taxation and Economic Policy, State Tax, Subsidies for Private K-12 Education, Oct. 2016, • http://itep.org/itep_reports/2016/10/state-tax-subsidies-for-private-k-12-education.php#.WG-uxRsrJ3g • The UEN calls on the Iowa Legislature to adequately fund public schools and oppose further expansion of state tax dollars for private schools either directly through school vouchers or indirectly through expansion of tax credits that will further reduce the resources available for Iowa’s public school students.
UEN 2020 Legislative Priorities • Individual districts consider priorities and send to UEN. • UEN Steering Committee considers the list, refines, amends, sets the priorities. • UEN Staff do research, write issue briefs and talking points in advance, post on UEN web site. • Shared with the UEN members at the annual meeting. • Don’t wait until then to be talking with your legislators about unmet needs in the areas of adequate funding, resources for serving students based on need, local flexibility,
THANK YOU FOR YOUR VOICEon behalf of urban students! • Stay connected through the Summer and Interim. • Let us know what you need to beef up your advocacy efforts. • UEN Legislative Analyst • Margaret Buckton, margaret@iowaschoolfinance.com • 1201 63rd Street, Des Moines, IA 50311 (515) 201-3755 cell
