1. Policy Matters: News from the Capitol Back to School | September 25, 2012 Gary G. Naeyaert | Senior Advisor for Policy & Communications Brad Wever | Director of Public Policy The Governor John Engler Center for Charter Schools | Central Michigan University

2. o Capitol Recap o MDE’s ESEA/NCLB Waiver o FY ‘13 Budget Highlights o Looking Ahead KEY ISSUES IN THIS PRESENTATION

3. o Lifted the cap on university authorized charter public schools and updated the charter school law (SB 618 (Pavlov), PA 277 of 2011). o Center staff presented to the House and Senate Appropriations Subcommittees on K-12 Education on CMU’s testing practices and student growth model. o Raised cap on the number of cyber charter schools to 15 (SB 619 (Colbeck), PA 129 of 2012). CAPITOL RECAP

4. o The Elementary and Secondary Education Act (ESEA) was passed in 1965 and replaced by the No Child Left Behind Act (NCLB) in 2001. o NCLB requires all students in all states to be 100% proficient in Math and Reading by 2014. Michigan isn’t close to this target. o Michigan is one of 33 states recently granted waivers by USED to the NCLB’s 100% proficiency target, in exchange for developing new proficiency targets and school accountability programs. o Now, 85% of Michigan students must be proficient in all subjects by 2023. o Also, MDE’s “Top to Bottom” (T2B) ranking has gone from having ‘no consequences’ to becoming the basis for Michigan’s new school accountability system. THE ESSENCE OF MDE’s ESEA/NCLB WAIVER

5. o Since 2010 federal and state “Race to the Top” legislation has required MDE to develop a list of “Persistently Lowest Achieving Schools” (PLAS) to identify the lowest performing 5% of schools in Phase 1+ of AYP, which would require state intervention. o MDE has produced a T2B list annually since 2010 which ranks all Michigan public schools based on a variety of factors, including student proficiency on standardized tests. o Among other things, the T2B ranking list is being used to replace the PLAS methodology for identifying the state’s lowest performing schools. T2B vs. PLAS

6. o The 250-data-point methodology for developing the T2B ranking has changed substantially each year it has been published: 2010: Matched the PLAS methodology 2011: Added subjects, Z-scores, 33% “growth”; removed AYP 2012: New MEAP cut scores; 25% “growth”; 25% achievement gap o Using the T2B list rankings to make “high stakes” decisions is problematic and difficult, given the ever-changing methodology. o Nearly 50% of CMU-authorized charter public schools have moved by as much as 20 percentile points, and some by over 50 points, when looking at the T2B lists for 2010, 2011 & 2012. T2B ISSUES

7. IS THE T2B LIST ANYTHING MORE THAN A PROXY FOR POVERTY?

8. o Reward Schools Top 5% of schools on the T2B list, top 5% of “improving” schools and “Beating the Odds” schools (to be added in 2013). 286 Reward Schools/19 charters. o Focus Schools 10% of schools w/the largest gap b/w the top 30% and bottom 30% of student performance. SPI can remove Focus designation for “Good Getting Great” schools. 358 Focus Schools/23 charters. o Priority Schools Bottom 5% of T2B list. Must implement one of four intervention models; under supervision of the School Reform Office (SRO), possible assignment to EAA/EAS. 146 Priority Schools/9 charters. MICHIGAN’S NEW SCHOOL ACCOUNTABILITY SYSTEM

9. ACCOUNTABILITY SCORECARDS o Replaces the current School Report Cards and AYP calculations (beginning in 2013). o All schools receive a color designation based on subgroup proficiency and improvement rates. Maintains the 9 traditional subgroups, PLUS a new subgroup of the bottom 30% of students. Proficiency targets are set at equal intervals to reach 85% proficiency by 2022. Improvement rate is set at the 80 th percentile of the 4 year improvement slope of all schools. o Accreditation status is also included, as well as other indicators: Graduation Rate Attendance Participation Status of Educator Evaluations Compliance with State Law

10. ACCOUNTABILITY SCORECARDS

11. CMU CHARTERS CONTINUE TO BE A BETTER CHOICE o In 2010, 75% of CMU charter schools outperformed their CRD. o In 2011, 90% of CMU charter schools outperformed their CRD.

12. CMU CHARTERS CONTINUE TO BE A BETTER CHOICE Despite the fact that CMU charter students are nearly twice as likely to be “at risk” than the statewide average, continuously enrolled students meet or exceed the statewide average proficiency in Math and Reading. Reading

13. o The K-12 portion of the FY ‘13 school aid budget is $12.9 billion; $200 million over FY ’12. o A new minimum foundation allowance of $6,966 per pupil means districts below this amount have seen an increase of $1-$120 per pupil. o $326 million to address MSPERS costs: o $130 million in pre-funding of retiree health care o $155 million in direct payments to districts (same amount as in FY ‘12) o $ 41 million into MPSERS reserve fund ($92 million less than FY ‘12) o Changes current law to base the foundation allowance of kindergarten students on the amount of time they are at school. Previously, half-day kindergarten students received the full foundation allowance. FY ‘13 SCHOOL AID BUDGET

14. o $50 million in technology grants to assist districts to prepare for computer adaptive testing in the future; or to take CAT in FY ’13. o $80 million to districts meeting 7 of 8 “best practices” ($52 per pupil). o $30 million in “performance funding” based on past MEAP proficiency level changes ($30 or $40 per pupil). FY ‘13 SCHOOL AID BUDGET

15. LOOKING AHEAD “Michigan’s education system is not giving our taxpayers, our teachers, or our students the return on investment we deserve.” “Our education system must position our children to compete globally in a knowledge-based economy.” Governor Rick Snyder Special Message on Education April 27, 2011

16. o In July, Governor Snyder unveiled the Michigan Education Funding Project. o GOAL: Propose a new education funding model based on: 1.Any Time, Any Place, Any Way, Any Pace public school learning model. 2.Performance funding rather than seat time requirements. o A workgroup is gathering suggestions from stakeholders and will be presenting a proposal to the Governor by December 1. o Richard McLellan o Mary Kay Shields o Peter Ruddell o Senior Staff in Governor’s Office o Expected to be a part of the FY ‘14 Executive Budget Recommendation. MICHIGAN EDUCATION FINANCE PROJECT

17. CONTACT INFO/QUESTIONS Gary G. Naeyaert Senior Advisor for Policy & Communications 517-364-9600 | gnaeyaert@thecenterforcharters.orggnaeyaert@thecenterforcharters.org Twitter: @gnaeyaert Facebook: Gary Naeyaert Brad Wever Director of Public Policy 517-364-9600 | bwever@thecenterforcharters.orgbwever@thecenterforcharters.org Twitter: @bradwever Facebook: Brad Wever