Joint Education Committee Minutes

Committee Meeting Information

November 4-5, 2009

Wy Contractors Assoc/McMurry Training Center

Casper, Wyoming

Committee Members Present

Senator Henry H.R. “Hank” Coe, Co-Chairman

Representative Del McOmie, Co-Chairman

Senator Kit Jennings

Senator Mike Massie

Senator Kathryn Sessions

Senator Michael Von Flatern

Representative Bob Brechtel

Representative Bernadine Craft

Representative Robert McKim

Representative Cathy Connolly

Representative Ross Diercks

Representative Alan Jaggi

Representative Matt Teeters

Committee Members Not Present

Representative Tom Lubnau

Legislative Service Office Staff

Dave Nelson, School Finance Manager

Matt Sackett, Research Analyst

Matt Willmarth, School Finance Analyst

Josh Anderson, Staff Attorney

Others Present at Meeting

Please refer to Appendix 1 to review the Committee Sign-in Sheet
for a list of other individuals who attended the meeting.

Executive Summary

The Education Committee met for two days in Casper. The Committee received information on the revenue forecast for the state and the implications of the forecast on the school foundation program account and the capital construction account. The Committee heard information on the Department of Education budget request for the 2011-2012 biennium, including information on programs that were included or not included in the request. The Committee received a report on school audits from the Department of Audit.

Call To Order (11/4/2009)

Co-Chairman Coe called the meeting to order at 8:30 am. The following sections summarize the Committee proceedings by topic. Please refer to Appendix 2 to review the Committee Meeting Agenda.

Approval of Minutes

Senator Massie moved that the minutes from the September 14-15, 2009 meeting be approved with no changes. The motion was seconded and passed by voice vote.

School Foundation Program

Mr. Dave Nelson, Legislative Service Office, noted that the Committee would be updated on state revenue projections and foundation program and school capital construction account profiles based upon October CREG reports. This update would be to reports based on the May CREG projections as provided to the Committee at its June meeting.

Mr. Matt Sackett, Legislative Service Office, noted that the CREG October report did not change significantly from the state revenue bottom line provided by its May report. He pointed out the 2011-2012 biennial projections are somewhat less optimistic than the May estimates for budget reserve account and general fund revenues due to declining assessed valuation. Additionally, mineral production is generally down for the forecast period, with prices estimated to decrease or increase marginally for minerals. The Committee was reminded that CREG will revisit projections in January.

Mr. Matt Willmarth, Legislative Service Office, provided a handout to the Committee (see Appendix 3 for a copy of the handout) on updated fiscal profiles for both the school foundation program account and the school capital construction account. He pointed out the significant increase in the amount of the foundation account balance transferred to the school capcon account at the end of the current biennium, up by $174 million from the May estimates for a total sweep of $407 million. This increase is due primarily to the historically high assessed valuations for the 2008 tax year. He also advised the net increase to the school capcon account would result in a larger transfer from the capcon account to the common school permanent land fund, as required by law.

Mr. Willmarth noted that projecting the numbers forward through the end of the 2011-2012 biennium, a shortfall is projected in the school foundation program account of approximately $37 million. Mr. Nelson noted the projections assume no external cost adjustment through the end of the 2011-2012 biennium.

Mr. Nelson provided a handout to the Committee indicating areas within the block grant model which are set by the legislature at levels above those recommended by consultants, combined with areas within the model which are under consultant recommendations (see Appendix 4 for a copy of the handout). He noted that one task assigned to the Committee this interim was to review foundation expenditures in light of revenue projections. The Committee devoted considerable discussion to the matter at its June meeting. He noted that the handout has been updated from the June meeting to reflect the latest account profile and CREG revenue projections.

Mr. Willmarth provided an additional handout to the Committee expanding foundation and capcon estimates into the 2013-2014 biennium and expanding funding scenarios (see Appendix 5 for a copy of the handout). He noted that the estimates within the handout assume no transfer of excess amount from the school capital construction account to the common school permanent land fund. The funding scenarios provide an estimate under the application of ECA adjustments to foundation program entitlements, and upon different level of school capital construction funded beyond major maintenance and component level funding.

Senator Sessions requested from the colleges and the University information on fee increases imposed by each institution for student services such as parking and housing. She requested the information be provided to her commencing with that period just prior to the year the Hathaway scholarship was effective.

In response to a question, Mr. Nelson noted that if there was any Committee recommendation to reduce the foundation guarantee level under the block grant model, it would appear to be more sustainable as an across-the-board reduction as opposed to reducing specific model components. Further, under current account profiles and revenue estimates, it appears the level to which the legislature has set funding beyond consultant recommendations would support a reduction of up to 6.5%.

Mr. Nelson stated the Department of Education will report on responses to reports provided to the Committee at its June meeting on special education and transportation.

Special Education

Mr. Joe Simpson, Deputy State Superintendent, provided a handout to the Committee provide an array of options available to the Committee on special education (see attached Appendix 6). Ms. Peg Brown-Clark, Department of Education, emphasized the department's support for continuing the current reimbursement of prior year special education district expenditures at 100%.

Ms. Stephanie Weaver, Department of Education, reported the department is revising the state data collection on special education to provide more specificity, more consistency and to eliminate errors. She also noted that there is a need for increased accountability and the department is working on clarifying its special education rules and regulations to enhance department monitoring and to clarify the determination of "allowable costs." The department is requesting legislation supporting the department's recommendations.

Ms. Weaver also reported that if the legislature elects to establish a cap on the amount of reimbursement under state special education funding, it consider the implications on maintenance of effort requirements attached to federal funds. In response to a question, Mr. Simpson stated the department would look at how to use federal funds in order to backfill any spending beyond any established cap. Ms. Weaver noted that the department is encouraging district to use federal special education funds, and is investigating ways in which to use these funds more efficiently and in consideration of state funds.

Senator Sessions requested information on court ordered placements and the number of children involved in these programs, broken down by placements by judgment and by IEP teams. Representative Teeters requested information on the rate of identification and the amount of funding attached for special education students. Deputy State Superintendent Simpson noted that there is an additional cost to serve special education students but noted that the department recommends reviewing the implications of imposing a cap on state funds and in using federal monies for additional costs.

Co-chair McOmie made a motion to request that the Department pursue the imposition of a cap on state special education funding, together with the additional legislation necessary to support its efforts in establishing allowable costs. The matter would be further considered at the next Committee meeting. The motion was seconded and passed by voice vote.

Transportation

Mr. Leeds Pickering, Department of Education, provided information to the Committee responding to the June Committee meeting discussion (see Appendix 7 for a copy of the handout). Mr. Pickering stated that the department reviewed and analyzed transportation expenditures and practices in various ways and under various methodology. The result was a finding that school district are responsibly providing transportation services even though they receive funding based upon 100% of prior year expenditures. Mr. Pickering did note the department established several cost-containment measures for districts which are detailed in the handout. He noted the measures are not necessarily department recommendations.

Mr. Pickering reported there are three separate accounting categories within transportation costs, trips to and from school and field trips at $53 million, student activities at $6.3 million and transportation-connected capital outlay which includes $12.9 million attached to school route trips and $3.8 million attached to student activities. He noted the main difference between student activities transportation and to and from school route buses is the bus storage costs. The statewide transportation cost totals approximately $72 million for the 2008-2009 school year.

Responding to Committee discussion, State Superintendent McBride suggested the Committee considered discussing activities transportation with the Wyoming High School Activities Association, the statewide organization controlling student activity scheduling and location. The Co-Chairs requested staff to contact the Association for inclusion on the next meeting's agenda.

Senator Von Flatern made a motion to adopt option 3 as appearing on the department's handout, which would freeze student activity transportation reimbursements at the school year 2007-2008 level.. The motion was seconded and failed by voice vote.

Department of Education Budget Recommendations

Department of Education Budget

State Superintendent McBride provided a handout on the Department of Education 2011‑2012 budget request (see Appendix 8 for a copy of the handout). Dr. McBride stated although the state is entering some interesting economic times, he suggested the state will navigate the difficulties with minimum impact on school districts. He pointed out the fiscally restrained environment the Legislature will enter the 2010 budget session, and although a 10% reduction was imposed on state agencies including the department, school district block grant funding was not reduced. He pointed out the department is recommending elimination of the elementary foreign language instruction program, and emphasized the increased focus bringing children to the 3^rd grade reading level. Additionally, State Superintendent McBride reported the department brings only one exception request to the Legislature, which is funding for continuing the career-technical education program initiated through previous Committee study efforts.

Mr. Fred Hansen, Department of Education, noted the school foundation program budget within the department's request will fluctuate in accordance with account profile updates provided by the Legislative Service Office.

In response to a question, Ms. Mary Kay Hill, Department of Education, noted that federal law drives much of special education and that there is a significant amount of federal special education money attached to certain program requirements. The department is investigating methods and mechanisms to do a better job of leveraging federal funds.

Mr. Hansen distributed to Committee members information on the department's school configuration guidelines applicable to block grant model computations (see Appendix 9). Mr. Hansen described the guidelines and application of the guidelines to model administration. In response to a question, Mr. Nelson noted the intent of the guidelines was to provide some attachment between school facilities and the funding model, and that the guidelines would be used in conversations between the school facilities commission and the department. Mr. Hansen noted the guidelines are not rules. State Superintendent McBride added the guidelines prescribe a bright line as to model related configurations for purposes of defining schools, as the recalibrated model is school-based, not district-based. Exceptions will be allowed but only for good reason and not for revenue generation purposes. Mr. Hansen noted the date for application of guidelines to co-located schools may be extended following the next model recalibration.

Distance Education.

Mr. Chuck Mitchell, Department of Education, provided two handouts to the Committee (see Appendix 10 for a copy of the handouts). Mr. Mitchell noted that distance education is flexible and innovative and also highly accountable. He stated that reporting is provided down to the individual student level.

Mr. Scott Bullock, Department of Education, reported on the department distance education grant program by describing two years of program grants, including the required reporting by participating districts. He noted that course management systems are expensive, and reported most distance education programs are currently attached to brick and mortar schools. Mr. Bullock noted that his analysis is based upon one year of district reporting, and the data will be more robust as the program matures. Responding to Committee inquiry, Mr. Bullock stated that distance education initially began as a post secondary education concept, but has evolved into the secondary grades. Distance education students do generally participate in district field trips and activities. State Superintendent McBride added distance education provides a means to bring educational programs to home school students and to involve those students in district assessments and student activities.

Ms. Lechelle Brant, Department of Education, described the department's distance education switchboard, and provided information on courses included within the district education program offerings. She indicated additional information is available on the department's website.

Mr. Bullock noted there is concern expressed by districts with program funding and the relationship of funding to the required agreements between districts offering distance education with the district of residence. Additionally, the department is requesting legislation clarifying the application of district tuition fees assessed under such agreements to the required local resource reporting under the foundation program block grant model. After additional discussion, the Co-Chairs directed staff to assemble requested legislation clarifying the relationship, and to include the draft legislation on the agenda of the next Committee meeting.

Career Technical Education (CTE)

Mr. Tom Martin, Department of Education, provided two handouts to the Committee (see Appendix 11 for a copy of the handouts). Mr. Martin reported the department developed a strategic plan for career-technical education to connect academic coursework with technical training, to provide and generate innovation and to support the workforce, education and economic needs of Wyoming. He stated sixteen career clusters were created with several career pathways within each in order to accommodate student choices and needs and to provide students with informed choices.

Mr. Guy Jackson, Department of Education, reported the department awarded three CTE demonstration project grants during the current biennium. Two recipients were for hospitality and tourism programs chosen because of their unique approaches to CTE. A third grant went to a wind energy program. All three recipient programs include student based internships. He stated the department requests the legislature to sustain current efforts by continuing the grant program into the next biennium.

In response to a question, Mr. Jackson noted the grants are awarded for a two-year period, with the program to be self-sustaining by the third year of operation. He stated the department is new soliciting new programs for an additional round of grants. Ms. Hill, Department of Education, added the department, through the CTE program, is working with districts to change practices and move from vocational education to career-technical education, which is an evolutionary process progressing one step at a time. State Superintendent McBride noted the demonstration project grants require integration with academics and an application of core courses to career training. The department is hopeful the traditional vocational education approach begins to fade as the CTE approach emerges.

National Board Certified Teacher Program

Mr. Hansen, Department of Education, provided a handout to the Committee (see Appendix 12 for a copy of the handout), and noted that the National Board Certified Teacher Program is included in the department's exception budget request. He also pointed out the program increased last biennium by sixty teachers.

Mary Elbogen Garland speaking on behalf of the National Board Certification Program, stated certified teachers provide the foundation to strengthen the quality of instruction in the state. She pointed out that when the program was initiated in Wyoming, it was estimated that 10% of the teacher population would be a good target for program participation. Currently, the state has just under 3% of the teacher workforce attaining board certification..

Ms. Rae Lynn Job, also speaking on behalf of the Board Certification Program, stated the certification program is a powerful professional development experience. She noted that about 2% of teachers nationwide are board certified and that Wyoming is ahead of the national average. She added the program is based upon the premise that the teacher learns as much as possible about their students and base teaching decisions upon student needs.

Instructional Facilitators

Deputy State Superintendent Simpson provided a handout to the Committee on instructional facilitators (see Appendix 13 for a copy of the handout). Ms. Jillian Barlow, Department of Education, explained the submitted report and noted that in its reauthorized of program financial assistance in 2008, the Legislature required a research-based approach for program implementation as well as a plan for program evaluation. She stated that district reports indicate 83% of district teachers reported working with instructional facilitators. Primary reported facilitator activities included collaborative meetings and developing and selecting appropriate instructional strategies. Ms. Barlow concluded by recommending continued funding of the program in the next biennium at current funding levels, as well as continuation of annual reporting requirements.

Meeting Recess

Co-Chairman Coe recessed the Committee at 5:15 pm.

Call To Order (11/5/2009)

Co-Chairman McOmie reconvened Committee meeting at 8:30 am.

Department of Education Budget Recommendations (Continued)

BIA School Funding

Deputy State Superintendent. Simpson provided two handouts to the Committee (see Appendix 14 for a copy of the handouts), which included a report from St. St. Stephen's Indian School accounting for the expenditure of state funds received pursuant to an agreement with the state for provision of student services on the Wind River Indian Reservation. The agreement was entered into between the Joint Tribal Council and the State Superintendent pursuant to W.S. 21‑4‑601. Deputy State Superintendent Simpson, responding to questions, report the school does receive a large portion of funding from the U.S. Bureau of Indian Affairs. Mr. Hansen added the department has included funding for the school within its exception budget request for the next biennium. Senator Jennings stated it would be appropriate to request an Attorney General’s opinion on the appropriateness of funding the school with state funds under W.S. 21-4-601. Deputy State Superintendent Simpson noted that St. Stephen's is required to comply with the same rules as other public schools and reported its students are required to take statewide assessments.

Programs Not Included in the Department of Education Budget

State Superintendent McBride stated that in light of current economic constraints, the department is not requesting funds for several programs within its 2011‑2012 budget request. Some programs have been removed as a result of program prioritization, and others have been discontinued based upon legislative action.

Student enrichment

Ms. Hill provided a handout to the Committee on student enrichment (see Appendix 15 for a copy of the handout). She noted the enrichment program has been operating for approximately 18 months following legislative authorization, and the department has received district reports on enrichment programs for the first year of the current biennium. She noted that nine districts received program project grants and each approached the program differently. She stated there is anecdotal evidence favoring program continuation but noted the department does not have quantitative data on program effectiveness. As such, the department is not forwarding program funding within its budget for the next biennium.

After additional discussion, Co-chair McOmie requested staff assemble draft legislation continuing program funding subject to department recommendations, to be discussed at the next Committee meeting. Representative Teeters requested the Committee not combine several legislative proposal into one omnibus bill, but rather forward each Committee approved proposal by separate legislation.

Driver’s Education

Ms. Hill provided a handout to the Committee on driver's education (see Appendix 16 for a copy of the handout). She stated driver's education program is not part of the statewide educational program established by the State Board, and that it was provided pursuant to legislation. Reporting on program fund distribution, she stated there are a variety of different programs, some offered during the regular school day and some offered after school. She noted that only 25% of the legislative appropriation was spent by districts, partly due to the tying of program expenditures to at-risk students. The department's recommendation was to not renew the program or if the legislature wishes to continue the program, the qualifier attached to at-risk students be removed.

Senator Massie made a motion to not continue funding on the driver's education program. The motion was seconded and passed by voice vote.

Food service

Ms. Hill provided a handout to the Committee on food service (see Appendix 17 for a copy of the handout). She stated the program was specifically eliminated by enabling legislation, and therefor was not included in the department's 2011-2012 budget request. Several issues were identified by the department's report on the program, including guidelines for determining district program deficits, the methods attaching funding to qualifying meals and the availability of additional federal funds. She stated districts operate programs at a deficit and spend more than generated through fees, but noted the legislature determined food service programs to be a self sufficient enterprise activity. She noted food service is an essential part of the school day. Deputy State Superintendent Simpson clarified that food service programs are generally not self supporting, but indicated the programs can be operated by districts at more effective and efficient levels. He stated the department did not have the authority to include food service supplemental funding in its budget request, but stated the department supports the program.

Representative Connolly made a motion to forward continuation of food service program funding at the next Committee meeting. The motion was seconded and did not pass by voice vote.

State Superintendent McBride stated that the department would submit a letter to local school boards requesting that, to the extent possible, they attempt to operate food service programs at break even levels and that they assemble to discuss best-practices for managing food service programs.

Sign Language

Ms. Hill reported the Legislature, in 2008, included sign language as a foreign language eligible for meeting success curriculum requirements under the Hathaway student scholarship program. The difficulty in so doing was the certification of sign language instructors. The department implemented the requirements by adopting a nationally recognized common course description for sign language instruction, and advised the department is able to comply with legislative directives within the agency's existing resources. No additional budget request is necessary.

Department of Audit Annual Report

Ms. Pam Robinson, Department of Audit, provided two handouts to the Committee (see Appendix 18 for a copy of the handouts). She noted the department has changed its school audit format by undertaking annual audits of specified school finance issues, called "blitz audits," which reduces the agency's time spent on-site at school districts, and also allows the agency to review all districts each year.

Mr. Rich Cummings, Department of Audit, described the school "blitz" audit process. He noted the department can complete special audits initiated at the request of the Department of Education in a manner similar to the blitz audit. He noted the process provides opportunity to districts to appeal audit findings, and reported that two appeals have been initiated over the past two year period. One appeal upheld the audit results and the second is awaiting a ruling.

Mr. Cummings stated the department is in the process of conducting ten full audits and a blitz audit of at-risk expenditures. He reported the department is not yet committed to the at-risk audit and would be willing to investigate other issues requested by the legislature such as special education or transportation.

In response to a question, Mr. Cummings stated the department discovers problems regularly but there is no one persistent problem. Ms. Robinson added that pursuant to statute, the department has to review vocational education separately every three years, and requested the Committee to extent the required review to once every five years. This would lessen the impact on other agency audit functions.

Senator Massie moved the Committee request staff draft legislation addressing the 3 year vocational education review requirement for consideration at the next meeting. The motion was seconded and passed by voice vote.

Representative Teeters requested more detailed information on the audit findings, specifying the amounts at issue and the resolution of findings.

Future Committee Meeting

In responding to discussion on future recalibration of the block grant funding model, Co-Chairman Coe stated any recalibration effort will likely not be a massive overhaul of the current funding model. He added that the model has provided the state with a very transparent process, and as such, any major model revision would be likely be resisted. Co-Chairman McOmie expressed agreement with the remarks of Co-Chair Coe.

After discussion, the Co-Chairs announced the next meeting of the Committee will be scheduled on January 19, following the January 18 meeting of the Select School Facilities Committee. The meeting will be held in Casper.

Meeting Adjournment

There being no further business, Co-Chairman McOmie adjourned the meeting at 12:00 p.m.

Respectfully submitted,

Senator Coe, Co-Chairman Representative McOmie, Co-Chairman

Appendix	Appendix Topic	Appendix Description	Appendix Provider
1	Committee Sign-In Sheet	Lists meeting attendees	Legislative Service Office
2	Committee Meeting Agenda	Provides an outline of the topics the Committee planned to address at meeting	Legislative Service Office
3	School Foundation Program	School Foundation Program Account	Legislative Service Office
4	Matrix comparison	Matrix comparison	Legislative Service Office
5	Funding scenarios	Funding scenarios	Legislative Service Office
6	Special education	Special education reimbursement	Department of Education
7	Transportation	Transportation costs	Department of Education
8	Budget recap	Budget Recap	Department of Education
9	Configuration guidelines	Configuration guidelines	Department of Education
10	Distance education	Distance education	Department of Education
11	Vocational education	Vocational education/CTE	Department of Education
12	Certified teachers	National board certified teachers	Department of Education
13	Instructional facilitators	Instructional facilitators	Department of Education
14	BIA School funding	BIA School funding	Department of Education
15	Student enrichment	Student enrichment pilot project	Department of Education
16	Driver education	Driver education	Department of Education
17	Food service	Food service	Department of Education
18	Audit report	Audit report	Department of Audit