CUCPTSA Legislation Newsletter – January 2009

EXCITING NEWS…

One of the action items this year on the federal part of the council legislation team’s agenda was to raise the profile of the CUCPTSA leg team by applying for the National PTA Outstanding Advocacy Award and nominating Legislative Chair Kim Anderson for the individual Shirley Igo Advocate of the Year Award.

For more than a century, PTA’s members have been a powerful voice for the health and education of children. Last year, in recognition of the hard work and dedication of PTA members, National PTA presented the first annual Outstanding Advocacy Award. The award is presented to a local, council, district or region PTA that, through their dedication, leadership and efforts affected child related policy, regulation or legislation compatible with PTA’s mission and goals. The PTA chosen will receive two all-expense paid trips to the 2009 National Legislative Conference and be recognized at an awards ceremony on Capitol Hill on March 12th. In addition, the PTA will receive $500 which may be used solely to cover direct expenses for PTA work.The National Legislation Committee and National President reviewed all submissions and selected our council legislation team, the Capistrano Unified Council of PTSAs, as this year’s winner of the National PTA Outstanding Advocacy Award.

The Shirley Igo Advocate of the Year Award was established last year to mark the passing of one of PTA’s greatest child advocate leaders, PTA National President Shirley Igo (2001-2003). To honor Shirley, National PTA will present an annual award to one individual who most exemplifies the qualities that made Shirley a true advocate for all children. The person chosen to receive this award will receive an all-expense paid trip to the 2009 National Legislative Conference and be recognized at an awards ceremony on Capitol Hill on March 12. The National Legislation Committee and a panel of Shirley’s fellow advocates reviewed all nominations and selected Kim Anderson as this year’s recipient of the Shirley Igo Advocate of the Year Award.

LOCAL

1/6/09 Special CUSD Board meeting:

The Trustees listened to approximately 80 minutes of public input regarding Superintendant Carter, after which they retreated to a Closed Session meeting. At the end of this meeting, they announced they had voted 6-1 to put the Superintendent Carter on paid administrative leave.

1/12/09 CUSD Board meeting:

  • Trustee Christensen spoke on behalf of all Board members and addressed the following rumors:

Trustees are micromanaging this district – Not true. They have no time to do that as most of them work full time

Trustees have chain meetings – Not true. They barely speak to each other to avoid Brown Act violations

Trustees want to break the unions - Not true. They have supported the unions when the previous board voted to make cuts

Trustees want to implement vouchers – Not true. None of them want to do that

Trustees want to close down San Juan Hills HS - Not true. They just want to stop the large amount of money being spent on that location.

Mr. Christensen went on to share that they’ve all read the hundreds of e-mails regarding Superintendent Carter and they understand the frustration. Policy prevents them from speaking about employment issues. The trustees are trying to do their best for the school district which is what they were put on the Board to do. Need to put politics aside and move forward working together.

Trustee Jack Brick also made a statement sharing that he made a mistake when he voted to put Supt. Carter on paid administrative leave – he meant to vote “No.” He tried to change his vote the next day which legal counsel would not allow. He asked for us all to pull together and for everyone’s support.

Highlights from the agenda items:

#13: Fiscal Audit – approved 7 – 0

#14: School Programs & Facilities – Lots of support to make S J Elem a K-8. Trustees told staff that everything in terms of CrownValley was a no-go and come back with other suggestions at a Facilities workshop.

#15: Settlement Agreement between CUSD & Whispering Hills. They decided to keep it for further discussion.

#16: Consulting firm for cell tower facilities - Trustees were concerned regarding the safety of cell towers (unknown future health problems) near students. They decided to keep it for further discussion.

#17: School Calendar – Postponed until the next meeting.

#18: Surplus property - Approved 7-0

#19: Approved 7-0

The rest of the agenda (Items 20 - 26E) was postponed until the next meeting.
Around 11:00 PM they voted to continue the meeting an extra half hour; at 11:30 PM they postponed all remaining items until the next meeting.

At 11:30 PM they went into Closed Session; they came out at approximately Midnight to report approval 7-0 of E and F (School bus driver only) and they had no comment on any other items in Closed Session.

STATE

During the month of December, budget plans were proposed by the Democrats, Republicans, and Governor Schwarzenegger. Unfortunately, the legislature has not been able to reach consensus and pass a budget package the governor is willing to sign. The legislature returned to both regular session and a third Special Session on the Budget on January 5th. The “Big 5” continue to meet to discuss solutions to the budget crisis. The Republicans stand firm in their promise to not raise taxes and Democrats are unwilling to balance the budget on cuts alone.

Democrat Budget Plan: Passed on December 18 and vetoed by the governor on January 6.

The Democrats employed a legal theory that one bill could simultaneously raise some taxes and reduce others by the same amount without triggering the two-thirds vote requirement. In order to increase revenues by $11.3 billion, the Democrats proposed increasing sales taxes, gas “fees”, and implementing an oil severance tax. In addition, they proposed cuts of $6.9 billion including $4 billion to K-12 Education, and over $400 million to community colleges, CSU, and UC. Cuts to SSI/SSP grants ($600 million) and CalWorks ($100 million) were also included in the proposal.

Republicans voted against the bill package, but it passed with a majority.

Republican Budget Plan:

As an alternative plan, Republicans proposed $15.6 billion in cuts (more than two-thirds of which target education) and $6 billion in revenues. Those revenues, however, are not from new taxes but are from pots of money approved by voters specifically for health care for children (Prop 10) and the mentally ill (Prop 63). The GOP seeks to reallocate $3.9 billion in taxes from mental health programs and $2.1 billion from preschool programs and services. Voters would need to approve the reallocation of funds generated from Prop 63 and Prop 10.

The Republican plan was never brought before the legislature for a vote.

The Governor’s Budget Proposal for 2009-10:

On New Year's Eve, Mike Genest from the Department of Finance unveiled the governor’s 2009-10 budget proposal to close a roughly $41 billion budget deficit over the next 18 months and provide a $2 billion reserve. The proposal relies on tax increases, spending cuts and borrowing and the actions proposed are to start now in the mid-year and continue into the 2009-10 budget year.

Revenue: $14.8 billion

  • Raising sales tax by 1.5 cents for three years and taxing services and activities.
  • Reducing income tax credit for dependents.
  • Imposing an oil severance tax of 9.9%
  • Raising alcohol tax by 5 cents per drink.
  • Increasing VLF by $12 per vehicle.
  • Eliminating property tax deferral for elderly, blind or disabled homeowners.

Borrowing: $10.3 billion by selling revenue anticipation warrants, securitization of the lottery, borrowing from special funds, and shifting tribal gaming revenue to general purposes.

Spending cuts: $16.5 billion including:

  • $5.2 billion cut to K-12 Education and community colleges to start with the current year and extend into 2009-10. The governor proposes to defer $2.6 billion in payments to July, eliminate COLA, give school districts the ability to reduce the 2009-10 school year by five days, reduce funding for a number of categorical programs, eliminate funding for some programs, reduce revenue limit funding (general fund), suspend education mandates, provide “complete and permanent flexibility with respect to categorical funding”.
  • $692 million by cutting the University of California and CaliforniaStateUniversity budgets by 10 percent and eliminating the planned 7.5 percent budget increase in 2009-10.
  • $1.7 billion by furloughing state employees by two days a month until June 30, 2010
  • $1.4 billion by reducing monthly grants to the federal minimum for low-income aged, blind and disabled on Supplemental Security Income/ State Supplemental Program and eliminating payments to recent immigrants.
  • $1.1 billion from CalWORKS welfare programs by reducing welfare grants by 10 percent, cutting benefits at 60 months for some recipients, requiring reviews every six months and eliminating a cost of living adjustment due in June 2010.
  • $275 million by eliminating the state First Five Commission and shifting money – and half of the money from 58 county commissions – to children's health programs. Voters would have to approve changes to Proposition 10.
  • $226 million by diverting money set aside in Proposition 63 for mental health services to fund mental health managed care. Voters need to approve the change.
  • $43.2 million by cutting the Legislature's budget 10 percent and eliminating a cost-of-living increase.

To complete his “four-legged stool”, the governor proposes to create jobs by relaxing environmentalregulations to accelerate public works projects mostly connected to highway construction. He also wants to make state government run more efficiently by eliminating or consolidating redundant or unnecessary programs and agencies.

K-14 Education Mid-Year Adjustments

Falling revenues allow for a reduction to the Prop 98 Minimum Guarantee. When the current year budget was signed, the guarantee was $58.1 billion. With the following changes, the guarantee will drop to $51.5 billion. However, schools will be allowed to spend $56.1 billion. It is hoped that the $2.1 billion cut proposed for the current year will be accomplished in such a way as to minimize actual funding reductions to school districts.

Eliminate COLA of .68% = $287 million.

Reduce K-12 by $1.6 billion due to lower state revenues bringing down the Prop 98 guarantee.

Re-designate $1.7 billion from other accounts to cover K-12 expenses (i.e. K-12 busing from Public Transportation Accounts). This move allows the state to lower the Prop 98 guarantee.

Sweep up unappropriated funds of $55.5 million.

Back fill property tax shortfalls.

Defer $2.6 billion in Revenue Limit and K-3 CSR payments from April to July.

K-14 Education 2009-10 Budget Cuts/Adjustments

The Prop 98 minimum guarantee for 2009-10 is projected to be $55.9 billion. The State funded spending level is budgeted at $56.3 billion. (The LAO lists the Prop 98 guarantee at $54.9 billion). Cuts to Education will be $3.1 billion in 2009-10.

Decrease funding by $1.1 billion allowing school districts to reduce school year by five days.

Eliminate all COLA = $2.5 billion

Eliminate funding for High Priority Schools Grant Program = $114 million.

Replace state lottery funding ($891.6 million) with General Fund dollars to be counted toward the Prop 98 guarantee. Currently, lottery funds are above and beyond the Prop 98 funding.

Suspend all education mandates except CAHSEE and interdistrict/intradistrict transfers.

Provide complete and permanent flexibility with respect to categorical funding allowing districts to transfer money to their general funds.

Cash Flow for State

The state has a cash flow problem with estimates that the state will run out of cash by February. The failure of the legislature to bring the budget into balance hinders the state’s ability to sell bonds. Treasurer Bill Lockyer has called a halt to public works projects ($3.8 billion in funding). Controller John Chiang says the state could be forced by March to issue the equivalent of IOUs.

Budget Concerns

There is concern in Sacramento and throughout the state over several aspects of the Governor’s proposal including:

  • Two furlough days per month for state employees – Several elected statewide elected officials (Secretary of State, Attorney General, etc.) have stated they will not ask their employees to take furlough days.
  • Shortening the school year in 2009-10 by five days. Education leaders are concerned that this will have adverse impact on students and teachers.
  • 10% cuts to Cal Grants program for college students and the 10% increase to tuition being planned by the University of California and CaliforniaStateUniversity to offset revenue losses.
  • Tax increases proposed by the governor.

The California Teachers Association (CTA) has filed for a ballot initiative to increase the state sales tax by one cent in order to raise $5-6 billion annually for K-14 Education. In addition, several of the revenue proposals from the Governor and Republicans would need to go to the voters for approval. The Legislative Analyst also suggests sending the Democrat’s tax and fee proposals to the voters and recommends that an election should be scheduled as soon as possible (April or May).

Sources: CA Dept. of Finance , California Budget Project , Legislative Analyst’s Office , Los Angeles Times , and Sacramento Bee

FEDERAL

Post election analysis

Democrats post gains in both houses, take White House

The Democratic Party increased their majority in the 2008 elections, winning the presidency and securing a total of 56 Senate seats and 257 House seats. Democrats were four seats shy from winning a filibuster-proof super majority in the Senate; one race is yet to be determined (with a Minnesota recount in progress) and two seats are taken by independents (who regularly vote with Democrats). The Democrats won 22 new House seats, bringing their total to 257, with 178 seats for the Republican Party. With a new Congress also come changes to the education committees in both the House and Senate.

Changes to congressional education committees Faced with a financial crisis, a sputtering economy, and wars in Iraq and Afghanistan, it is unclear when the new Congress and White House will address education priorities, such as the reauthorization of NCLB. Democratic congressional leaders are waiting for the Obama administration to set the education priorities. The Chairman of the Health, Education, Labor and Pension (HELP) Committee, Senator Edward Kennedy (D-MA), is reportedly back from taking leave to recover from surgery for brain cancer in June. He recently met with key senators on November 19th to discuss the overhaul of health care, another Obama Administration priority.
Over the next few months, Congressional leaders will dole out committee assignments to returning and new freshman members of Congress. The HELP Committee will see some changes:

  • Wayne Allard (R-CO) is retiring
  • President-elect Obama has already resigned from the Senate
  • former Virginia governor and new senator Mark Warner (D-VA) may seek a seat on the committee
  • outgoing Mayor of Anchorage and new senator Mark Begich (D-AK) may seek a seat on the committee

As the chairman of the National Governors Association, Warner made high school redesign a priority and encouraged fellow governors to expand opportunities for students to earn college credit in high school. Begich believes NCLB has been a disaster and wants the federal government to deliver on the millions of dollars promised to schools.

The House Committee on Education and Labor will also see some changes:

  • Republican Representatives Luis Fortuño (R-P.R.) is retiring
  • Ric Keller (R-FL) lost his re-election bid
  • John R. "Randy" Kuhl Jr. (R-NY) lost his re-election bid
  • Tim Walberg (R-MI) lost his re-election bid
  • David Davis (R-TN) lost in the GOP primaries

Four first-term House education committee members, Representatives Jason Altmire (D-PA), Joe Courtney (D-CN), Carol Shea-Porter (D-NH), and John Yarmuth (D-KY), and fifth term member Judy Biggert (R-IL) will be returning to Congress, narrowly winning their re-election.

The House also picked up five new members with backgrounds in education and could possibly be contenders for the education committee. Freshman members Larry Kissell (D-NC) and Dina Titus (D-NV) are both educators and are critics of NCLB. Jared Polis (D-CO) and Aaron Schock (R-IL) are both former state board of education members and want their hand in re-drafting NCLB. Walt Minnick (D-ID) also indicated an interest in serving on the education committee with a special interest in expanding access to higher education. (Courtesy of National PTA)

National PTA – school modernization & new weekly update link. Monthly PTA Takes Action: Federal Policy Update replaces This Week in Washingtonnewsletter. See pta.org to subscribe.

Obama’s plans for education:

Secretary of Education

In mid-December, CEO of Chicago Public Schools Arne Duncan was nominated as the new secretary of education for the incoming Obama administration. Duncan has been the CPS chief since 2001 and has earned a reputation as a reformer by implementing some relatively sweeping changes, including the closing of many schools due to academic failure. He also has provided support for charter schools and other innovations in public education and is expected to implement a similar approach in his new Cabinet position.

Duncan knows importance of working with community. During his tenure as CEO, the members of Illinois PTA and Chicago Region PTA found Duncan to be "supportive" and "always open to their input." Betty Durbin, the retiring president of Chicago Region PTA, found that the CPS chief "wanted the PTA perspective on every issue," and believes that as secretary of education he certainly won't forget how important parent involvement is to a successful school community. Not only did Duncan offer an open door to PTA, he ensured that his staff was present at monthly PTA advisory meetings to seek feedback on his proposed school policies.