Local Education Funding: Rules of the Road for Successful Collaboration

1. Local Education Funding: Rules of the Road for Successful Collaboration • John R. Woolums, Esq. • Director of Governmental Relations • Maryland Association of Boards of Education

2. MABE’s Mission The mission of the Maryland Association of Boards of Education is to provide members with a strong collective voice, and to support local school board governance through professional development, advocacy and member services.

3. We’re in it for the kids! Our 860,000 public school students deserve an outstanding education, provided by highly qualified and effective teachers in safe, healthy learning environments – and effective local advocates for the policies and resources necessary to make this possible.

4. Local Funding in Context • State funding, laws and policies • Maryland’s Constitution, Thornton Commission, and Bridge to Excellence Act • Federal funding, laws and policies • Local funding & maintenance of effort • Local collaboration to achieve cost savings, efficiencies and excellence. • Procurement, staffing, operations & facilities • Unmet & emerging funding issues

5. State Funding in FY 2015 • Direct State Aid: $5.297 billion • $88.8 million more than FY 2014 • $24.6 million more for the Foundation Program • $28.8 million more for Compensatory Aid • $17.6 million more for LEP grants • $11.4 million for Net Taxable Income grants • $5.6 million more for Special Education • Teacher Retirement: $863 million • $6,160 billion total

6. Local Funding in FY 2014 • $5.338 billion in Education Aid • $80.87 million over MOE • 6 counties funded at MOE • Most funded significantly over MOE • $17 million for non-recurring costs • 8 counties funded non-recurring costs • 3 counties over MOE did so entirely through non-recurring costs • $173 million for Teacher Retirement • $5.593 billion total

7. Budget Roles & Rules Maryland’s boards of education are quasi-state agencies which are subject to the local government’s budget process. Boards of education develop and adopt a budget according to 14 major categories. Counties approve the overall funding level for their school system budgets and must approve major category transfers. Counties must maintain per pupil funding levels from year-to-year.

8. Local Funding Rules & Options The Maintenance of Effort (MOE) law includes mandates – but also provides for flexibility. The MOE law allows counties to reduce their total funding based on declining enrollment. The MOE law allows for waivers for hardship, and for locally agreed to, and state approved, recurring and non-recurring costs.

9. Non-recurring Cost Exclusions Counties may fund certain non-recurring cost items, supplemental to the regular school operating budget, without that expenditure increasing the annual operating budget that sets MOE for the next year. Statute defines as: Computer laboratories, technology enhancements, instructional program start-up costs, and books other than classroom textbooks. Regulations expand to other one-time costs.

10. Non-recurring Costs in Action Technology Facility sale proceeds Architectural safety/security survey costs Facility projects New school start-up costs

11. Cooperative Administration Boards of education may enter into agreements for the cooperative or joint administration of programs relating to purchasing, personnel, accounting, data processing, printing, insurance, building maintenance, and transportation. Agreements must be approved by the local government and submitted to the Attorney General.

12. Cooperative Purchasing Boards of education, and other state and local governmental entities and nonprofits, may enter into cooperative purchasing agreements. Each State or local procurement contract for supplies or services must include a provision facilitating the participation of other state and local entities and nonprofits.

13. Cooperative Purchasing A local entity may participate in an existing State or local contract, if the governing body of the entity determines that participation would: (1)   provide a cost savings in purchase price or administrative burden; or (2)   further other policy goals including operational and energy-efficiency goals related to the purchase, operation, or maintenance of the supply or service.

14. Cooperative Buying in Action School systems report mutual benefits of cost savings through cooperative bidding and purchasing of electricity, cleaning services, healthcare, and prescription drugs. ESMEC Energy Trust – all 9 Eastern Shore school boards, 7 counties, 3 community colleges, and several municipalities. ESMEC Health Insurance Alliance – 6 school boards and 2 counties.

15. Cooperative Operations Local law enforcement as School Resource Officers (SROs) Health Department nurses in schools Emergency management communications and sheltering Snow removal Technology & telecommunications Recreation & Parks use of school facilities School/community swimming pools

16. Education Funding Needs Staffing, Salaries & Benefits Professional Development OPEB New Schools & Facility Maintenance Educational Technology & Virtual Learning Prekindergarten Compulsory Attendance Age Increase Student Discipline & Alternative Education College Readiness & Dual Enrollment

17. THANK YOU! John R. Woolums, Esq. Director of Governmental Relations Maryland Association of Boards of Education 621 Ridgely Avenue, Suite 300 Annapolis, MD 21401 www.mabe.org