GASBO Conference November 10, 2016 Angela Palm apalm@gsba.com Legislative Update GASBO Conference November 10, 2016 Angela Palm apalm@gsba.com

Governor Nathan Deal, Jan. 14, 2015 State of the State Address I am establishing an Education Reform Commission to study a number of questions regarding our education system increasing access to Georgia’s world class early learning programs, recruiting and retaining high quality teachers in our classrooms, and expanding school options for Georgia’s families. In addition, a subset of this group will examine the most appropriate ways to modernize our QBE funding formula from the 1980s. …. My vision is to create a formula driven by student need that provides local school and district leaders with real control and flexibility. It is our hope that funding changes based on the commission’s recommendations will go into effect as early as the 2016-2017 school year.

Education Reform Commission Governor appointed 35 member Commission Jan. 21, 2015 Commission began meeting Feb. 2015 Five Committees Final recommendations adopted November 19, 2015 Final Report released Dec. 15, 2015

Gov. Deal, 2016 State of the State Address Because of the magnitude of the recommendations contained in the report, some statutory changes will be necessary to implement them fully. Other recommendations can be achieved through the budgetary process. …I received a letter from the four legislators on that [Education Funding] Committee expressing their desire that the reporting deadline be extended…until August 2016.  [I] extended the general reporting deadline to December 18, 2015….during the 2016 session of the General Assembly, I wanted this legislative body to conduct a full review of the Commission’s recommendations. That is what I ask you to do.  My budget next year will include funding to implement my recommendations and those of the Education Reform Commission. This will provide ample time to vet the full report. It is important that we get this right. It is also important that in the meantime, the debate be conducted in good faith and that your recommendations be based on facts and not rhetoric.

Funding Formula Recommendations All figures are taken from the Dec 15th Report and are subject to change Permanently add $258 million to the current K-12 state budget beginning in FY ‘18 Add an additional $209 million as funds are available “The district will earn funding based on the characteristics of the students enrolled and may use the money flexibly to meet the needs of the students if an accountability contract with the State Board of Education is in place.”

Funding Formula Recommendations Develop a student-based funding formula with 3 components Student Base Funding Weighted Student Characteristics Account for particular needs Account for important state initiatives Students can have multiple characteristics Early intervention and remedial programs eliminated Categorical Grants

Student Base Funding Based on enrollment counts not FTE counts in 6 instructional segments Base is grades 6-8: $2,393.13 Excludes T&E, SHBP, and TRS

Student Base Funding Continued Includes a number of items from QBE Counselors Art/Music/PE/Foreign Language teachers Technology Specialists Instructional operations Social Workers and Psychologists Principals, Assistant Principals, Secretaries Operations Facilities M&O Media center Staff Development Nursing Transportation

Student Base Funding Includes $110 per student for technology Includes $89.3 million calculated based on change to teacher compensation model

Teacher Salaries All districts will develop their own local models to submit to the State Board for approval Must have effectiveness as one component May include experience, critical shortages, hard to staff, or other local priorities Cannot require existing teachers to make less than their contracted amount in the year immediately prior to the implementation of the funding model Districts with accountability contracts will have flexibility to allocate earned funds at their discretion with the exception of funds earned for teachers continuing to be compensated under the T&E model

Teacher Salaries For all new teachers and those included in or opting into the local model, districts will earn funds based on the state funded level for teacher salary. The average teacher salary is used in the model as the state funding level. “State funded level for teacher salaries will be reviewed annually and adjusted periodically as determined to be appropriate in the annual state budget process.” When adjustments are made to the new model, the same adjustment shall be made to the T&E schedule.

Teacher Salaries Base salary remains at $33, 424 Districts will earn the statewide average teacher salary for 2016 -- $50,768 Districts will earn T&E at the level that would have been earned unless the teacher is included in or opts into the new local salary model Teachers below the state average/funded level for teacher salary earn only their actual T&E funding $89.3 million is calculated as the difference in the teachers earning above the state average and that amount is put into the student base not salaries These are the funding levels NOT necessarily the salary level

Weighted Student Characteristics K-3: 0.2872 ($687.21) 4-5: 0.0800 ($191.45) 9-12: 0.0822 ($196.72) CTAE: 0.0502 ($120.02) Gifted: 0.3231 ($773.15) ESOL: 0.1937 ($463.62) Economically Disadvantaged: 0.0970 ($232.23) Identified by Direct Certification which includes SNAP, TANF, homeless, migrant, and foster children – estimated to be 34.8% of students

Students with Disabilities Based on amount of time served per week regardless of disability (sample data) Students receiving less than 30 minutes per week are not weighted 30 minutes to 6 hours per week (26% of sample): 0.4089 ($978.58) Over 6 hours up to 15 hours per week (24%): 0.7099 ($1,698.82) Over 15 hours to 30 hours per week (38%): 1.7762 ($4,250.79) Over 30 hours to 60 hours per week (11%): 2.4710 ($5,913.44) More than 60 hours per week (1%): 4.8947 ($11,713.54)

Outside the Formula Central Office/Administration Central office of 1 superintendent, 1 secretary, 1 accountant, 2-12 asst superintendents or other certified Central Office staff based on enrollment Principal at each school T&E TRS – no change SHBP – no change Equalization – no change

Outside the Formula Local five mill share – no change Low Enrollment/Low Density Earned based on district enrollment size, district density, and whether or not tax digest is in the top quintile of the state in per student earnings Eligibility for the grant requires minimum millage levy of 13 mills by July 1, 2017; 13.5 mills by July 1, 2018; and 14 mills by July 1, 2019 Could qualify on low enrollment, low density, or both Low enrollment is a non-city district ≤ 3500, tax digest is not in top quintile Low density is <6 students per square mile, tax digest not in top quintile If qualify on both, tax digest can be in top quintile

Outside the Formula Hold harmless -- not needed under current model Charter systems Supplement would increase from $87.75 per FTE to $92.40 per student Cap remains at $4.5 million per district State Charters RESAs – no change