2019-2020 State Budget Passed

The legislature was busy this week, moving forward with the 2019-20 state budget and all the related pieces of policy, and while there are several items that still have to make it across the official finish line, we’re well on our way.

To say that the last 24 hours have been a roller-coaster would be an understatement, and there have been fireworks on the Senate floor (and off) and a major change in the policy going into the omnibus School Code bill with charter school reform falling entirely off the table.

What we do have is an appropriations bill, an omnibus School Code bill, an omnibus safety bill, and two CTC-related bills. There are also a few other items moving in the last hours of June by themselves.

At the time I’m writing this, most items haven’t yet made it the whole way to the governor’s desk, however, things are well on their way, and we’re past the point of no-return. We’ll provide additional updates as soon as everything is finalized!

Read on for more information!

 

The Numbers…

The 2019-20 state budget has officially crossed the finish line, providing a $33.997 billion spending plan, a 1.8% increase over 18-19. The plan directs $250-300 million into the state’s Rainy Day Fund, something that has not occurred in the recent past…and it’s been raining for quite some time.

For education, the governor’s proposed education-related increases wound up in a final budget mostly intact; however, there were some reductions. Click here to view the 2019-20 list of appropriations.

BEF—While the governor proposed a $166 million increase in dollars through the new BEF formula, the final budget includes only a $160 million BEF increase for school districts.

SEF—The final 2019-20 budget includes a $50 million increase in state special education funding, as proposed by the governor. This amount will run through the new SEF formula.

RTL—The final 2019-20 budget level-funds the RTL block grant—and maintains it as a separate line item. The same $268 million distributed in 18-19 will be distributed in 19-20. This includes about $242 for school districts, $8 million for charter schools and an additional $18 million for a subset of school districts that received additional funding last year.

Social Security—The final 2019-20 budget moves the school district portion of SS payments into the BEF line item (about $480 million). SS payments to IUs and CTCs will continue to flow through the SS line item. For school districts, it doesn’t change the way SS is processed or paid—and it does not run the SS dollars through the BEF formula.

Career & Technical Education—The final 2019-20 budget includes a $10 million increase for CTCs, with $7 million going to fully fund the CTC formula and an additional $3 million going into the equipment grants.

Transportation—The final 2019-20 budget level funds the pupil transportation line item at $549 million. There is a slight reduction in the nonpublic/charter line item, pursuant to the formula.

School Safety—The final budget includes $60 million for the School Safety and Security Grant Program, level funding the program at 18-19 levels. See below for more about changes to how the funding will be distributed in 19-20.

Pre-K—The final 2019-20 budget contains a $30 million increase in early childhood education, with a $25 million increase for Pre-K Counts and a $5 million increase for Head Start.

Early Intervention—The final 2019-20 budget includes a $15 million increase for EI as proposed by the governor.

EITC Program—The final 2019-20 budget includes a $25 million increase in the tax credits available via the Opportunity Scholarship Tax Credit program.

What’s not in the appropriations is just as important as what is in it…

NO $45k Minimum Teacher Salary—The final 2019-20 budget includes no state funding for districts with teacher salaries below $45k, nor does it contain any mandate requiring school districts or other LEAs to increase teacher salaries.

 

The Policy…

Omnibus School Code Bill

 

The Senate loaded House Bill 1615 last night as the omnibus School Code vehicle. While the bill includes many changes to the School Code, it’s just as notable for what it doesn’t include. It does NOT include any changes to the charter school law, as the charter reform discussion fell off the table. That means that the House will not get any of their charter school reform bills—nor any of the components of any of the bills. It also means that there will be no Charter School Funding Commission formed this fall to review the funding formula. It does mean that the fall is an opportunity for further charter school discussion—and potential movement on charter school funding reform.

 

With charter school reform coming off of the table, changes to Act 82—educator evaluations—also came off of the table, as a victim of deal on charters. This issue is expected to be picked up in the fall.

 

A third item that came off the table along with charter school reform dealt with school board training. There was a push to remove PDE from the process of offering school board training and approving alternative providers. It is unclear if that issue will be picked up in the fall.

So, what IS in the School Code bill? Here’s the list of k-12-related items (higher education items are not included in this list)…

 

  • Special Education Funding Commission: the Special Education Funding Commission must reconvene for its five year review of the new special education funding formula for school districts by August 15, 2019 and issue a report by November 30, 2019.
  • Full Academic Year Requirement for Testing: a student enrolled in a school between October 1 and the testing window who was absent at least 20% of the school days shall not be deemed as meeting the full academic year requirement, and the student’s score won’t be included in the school accountability performance.
  • Budget Reporting: instead of sending a copy of general fund budgets to PDE and to the Education Committees, school districts will need to submit an electronic copy to PDE (and PDE will need to post) within 30 days after receipt.
  • PlanCon Moratorium: the moratorium on the acceptance of new PlanCon applications will continue through the 2019-20 school year.
  • Superintendent Eligibility: an individual who served as a chief recovery officer or a financial administrator to serve as a superintendent or assistant superintendent.
  • Compulsory School Age: the age of beginner is changed from 8 to 6, and the drop out age is changed from 17 to 18.
  • Food Shaming: allows a school district to provide an alternative meal to students that are not free/reduced price lunch-eligible if they owe more than $50 for school meals until the students pay off the balance or establish a payment plan.
  • Innovation Schools: creates an innovation schools program to study and evaluate innovative approaches to economically disadvantaged schools, including workforce development, mentoring services, prevention measures and social wrap-around services. PDE must accept and evaluate applications from schools for designation as an innovation school, and schools must be in the bottom 5% of all schools based on percent enrollment that is economically disadvantaged and have either partnered with behavioral health specialists or have provided an integrated social services model, and be located in a Promise Zone, as designed by the US Department of Housing and Urban Development. An innovation school shall submit an annual plan for academic and social programs, which shall include requests for waiver of state or federal requirements, and PDE, Human Services and L&I will review and approve annual plans and do what they can to waive state regulations and apply for federal waivers related to academic testing or testing periods, academic assistance, college and career preparations, before/after school care, behavioral health services, social services, integrated student support services and behavior intervention. To continue to maintain a designation as an innovation school, the school must meet or exceed the median score of schools in its peer group in ELA, math and science in the first 3 of 4 years of the program, have 89% of its ADM economically disadvantaged and appoint a program manager to oversee implementation of the annual plan.
  • EITC Increase: adds a definition of “economically disadvantaged school” to the EITC law, increases the tax credits available under the OSTC program by $25 million, adds subchapter S trusts into the definition of “pass through entity.”
  • CTC Funding: clarifies that the CTC is fully funded with the addition of $7 million.
  • RTL Funding: clarifies that school districts and charter schools get what they got in RTL in 18-19.
  • SS Shift: clarifies that SS payments to school districts will be paid for through the BEF line item.
  • AP and IB Fees: PDE will provide assistance to students with financial need to take the AP or IB exams.

 

 

PlanCon

The recommendations of the PlanCon Advisory Committee were unanimously adopted by both chambers of the legislature and sent to Governor Wolf in Senate Bill 700. The recommendations include: the development of a new PlanCon program for school construction reimbursement that includes a streamlined process for applications and a new funding formula, the implementation of a small projects grant program and the requirement that the Department of Labor and Industry to provide guidance on the difference between a maintenance and a public works project. It is important to note that while the policy was passed, there is NO FUNDING to go along with this for 2019-20. That means, that the fight for funding for this program will shift to 2020-21. Again, the moratorium on school districts submitting PlanCon applications will continue through 2019-20.

This bill was also amended to include language authorizing a Higher Education Funding Commission.

 

School Safety and Security

There are two safety and security bills that will wind up on the governor’s desk.

The first, is Senate Bill 144, which establishes the Keystone Telepresence Education Grant Program for IUs to purchase telepresence equipment for the educational support of homebound students—and it is now the vehicle for the omnibus changes and additions to Act 44 and other safety and security changes.

Trauma Informed Education: requires trauma-informed approaches to education to be included in school board training, training for school or system leaders, professional education curriculum, professional development for educators and training for school employees. The training for school employees must include recognition of the signs of trauma in students, best practices, information on the school’s trauma policies and connecting students with appropriate services. The language also requires the statewide School Safety and Security Committee to develop a model trauma-informed approach plan to be used by a school entity that wants to apply for grant funding for this purpose.

Grants to Nonpublic Schools: provides $3.2 million in safety and security grants to nonpublic schools via IUs through the Office for Safe Schools at PDE.

School Safety and Security Committee: adds a school nurse, a school principal, a school board director and an expert on trauma-informed approaches to the Committee.

Safety and Security Surveys: requires PCCD to conduct safety and security surveys of school entities at least every two years and ensures that the school entity-specific data provided to the statewide School Safety and Security Committee is confidential; however, it allows PCCD to release aggregate data at its discretion. 

Part A Grants: clarifies that the Part A grants for meritorious applications by school districts will range from $30,000 to $45,000 based on ADMs. School districts with 1,200 or fewer ADMs will get $30,000 for Part A; school districts with more than 1,200 to 2,100 ADMs will get $35,000 for Part A; school districts with 2,100 to 3,900 ADMs will get $40,000 for Part A; school districts with more than 3,900 ADMs will get $45,000 for Part A.

Part B Grants: allows PCCD to award grant requests in whole or in part based upon school entity grant applications and ensures that the sustainability planning is not a necessary component of a grant application. PCCD is permitted to prioritize grants based on survey responses from the prior year, but they need to provide guidance about any areas of prioritization in the funding announcement. PCCD must also provide an informational training for applicants outlining the grant priorities and application process.

Grant Limitations: caps the maximum allocation of grants at $450,000 in addition to Part A funds, with exceptions for Philadelphia and Pittsburgh. Extends the grants to cyber charter schools for limited use. Ensures that grants are awarded no later than March 1, 2020.

Audits: the Auditor General is not permitted to perform audits related to school safety and security assessments, surveys or grant applications.

RVATs: the PA State Police must create six RVATs in six regions to provide more capacity for school safety and security assessments.

Safety and Security Training: clarifies that the 3 hours of training every 5 years can be in one or a combination of the articulated areas based on the needs of the school entity. The training adds another potential component for student threat assessment training.

Safe2Say Something: provides for protection of records and clarifies the procedure for release of records pursuant to a court order. Clarifies that the annual report by IUs regarding the Safe2Say program can only use aggregate data.

Threat Assessment Teams: beginning in 2021-22, requires school entities to establish at least one threat assessment team to assess and intervene with students whose behavior may indicate a threat to themselves or others. The teams must include individuals with expertise in school health, counseling, special education and school administration along with the school safety and security coordinator (or designee) and other school staff and community resources as appropriate. The teams must be trained, make materials available to students and employees, ensure employees understand the process for reporting at-risk behavior, and assess and respond to at-risk behavior, make referrals, assist with Safe2Say Something reports (as needed) and notify parents and guardians. The language ensures confidentiality of student records and requires statewide School Safety and Security Committee to develop and publish best practices and offer model training programs for team members and school employees and model information for students and parents.

In addition to that language, Senate Bill 621 is expected to find its way to the governor as well. Senate Bill 621 includes the following clarifications:

School Police Officers: clarifies that school police officers must complete the basic training as required by the Municipal Police Officers’ Education and Training Commission, have graduated from the State Policy Academy or have been employed as a State Trooper, and they must complete the Basic School Resource Officer Course of Instruction by NASRO (or equivalent course as determined by PCCD); currently employed school police have six months to obtain the training. It also requires school police officers to attend annual in-service training approved by the Municipal Police Officers’ Education and Training Commission. It clarifies that school police officers have jurisdiction on school buses going to and from school activities. It also clarifies that a school entity can contract with an independent contractor or third-party vendor to provide a school police officer, but prior to performing services, the individuals must complete the Basic School Resource Officer Course of Instruction or an equivalent program approved by the Commission and satisfy all clearance requirements. It further clarifies that a just must grant authority to carry a firearm if the officer met the training requirements.

School Resource Officers: clarifies that active certified sheriffs and deputy sheriffs are qualified to serve as SROs. The language also requires completion of the Basic School Resource Officer Course of Instruction by NASRO (or equivalent course as determined by PCCD). Currently employed SROs have six months to obtain the training

School Security Guards: requires completion of the Basic School Resource Officer Course of Instruction by NASRO (or equivalent course as determined by PCCD). Currently employed school security guards have six months to obtain the training. To carry a firearm, the school security guard must be licensed under 18 Pa. C.S. Ch. 61 Subch. A, be certified under the Lethal Weapons Training Act, completed the NASRO training and have satisfied all clearance requirements.

Commission Duties: gives PCCD the duty of reassessing the training requirements periodically, establishing criteria for certifying approved third-party vendors to provide school security guard services to school entities and producing an annual report on recommendations for improvements in school security personnel training requirements.

 

Career & Technical Education

The legislature is sending two career and technical education omnibus bills to the governor: Senate Bill 89 and House Bill 265. These bills contain the following provisions:

Terminology Update: updates the Public School Code to replace “vocational-technical schools” with “career and technical schools,” to replace “Department of Public Instruction” with “Department of Education,” etc. 

Online Career Resource Center: creates a PA Smart online career resource center that must include postsecondary pathways and options, career and technical education and workforce opportunities, career pathways, data and statistics on employment opportunities and compensation, statewide and regional articulation agreements, and other relevant career resources.

Schools-To-Work Program: creates the Schools-to-Work program between PDE and the Department of Labor and Industry. The program will award competitive grants to support the establishment or enhancement of workforce development partnerships between schools, employers, organizations or associations to create employment and training pathways.

Workforce Development Program Clearinghouse: requires the Pennsylvania Workforce Development Board and PDE to conduct a survey to determine the number and types of workforce development programs offered at secondary and postsecondary institutions. The Board may, in consultation with PDE, compile a clearinghouse of model programs discovered during the survey.

Occupational Advisory Committees: requires the establishment of an occupational advisory committee must be established for each career and technical education program or cluster of related programs offered by an area career and technical school or school district. Advisory committees must meet at least twice each year to advise the board of directors, administrators and staff on curriculum, equipment, instructional materials, safety requirements, program evaluation and other related matters. Multiple career and technical schools or school districts operating career and technical education programs within the same intermediate unit can establish a shared occupational advisory committee to serve all participating schools and districts.

Transfer and Articulation Agreements: adds provisions requiring institutions of higher education and public schools to provide the Transfer and Articulation Oversight Committee and PDE with copies of articulation agreements for inclusion in the existing transfer and articulation system within 30 days of entering into any subsequent articulation agreement.

Classification of Program Code: requires PDE to establish a standard application form for a public school entity seeking approval to establish or renew a Classification of Program Code (CPC). The language also provides for the Commission on Agricultural Excellence to establish guidelines for when a student completes an academic course to apply those credits towards the completion of an agricultural education program.

Career Information and Recruitment: requires a school entity to offer career representatives from skilled trades, publicly identified priority occupations, CTCs, community colleges and institutions of higher education the opportunity to participate in the delivery of information regarding employment training and opportunities for students. School entities must provide each representative with at least one opportunity to offer information to students in grades 4-12 regarding educational and career training opportunities. PDE and L&I must develop materials for students related to workforce needs and guidelines to assist school entities with the implementation.

Career and Technical Education Equipment Grants: clarifies PDE guidelines regarding CTE Equipment Grants, noting that grant awards can be used to purchase an entire set of tools.

 

 

Other Stuff…

In the chaos of the budget discussions, a couple of other pieces of legislation made it to the governor’s desk. He is expected to sign both.

Flexible Instructional Days: Senate Bill 440, which codifies the pilot Flexible Instructional Days (FID) program into law, allowing school districts to continue to receive approval from PDE to utilize FIDs and get credit for canceled school days, made it to the governor’s desk. He is expected to sign the bill into law.

Technical Changes to Act 5: Senate Bill 724 also made it to the governor’s desk. The bill makes corrections to Act 5 of 2017 to further provide for delinquent payments by employers, for voting eligibility and for a nonparticipating employer withdrawal liability allocation under PSERS.