1. EPLC - February 20081 Governor Rendells Proposed 2008-09 EDUCATION BUDGET HIGHLIGHTS Presented by Ron Cowell The Education Policy and Leadership Center February 2008

2. EPLC - February 20082 Governor Rendells Proposed 2008-09 State Budget Summary $28.3 billion General Fund Budget $1.1 billion or 4.2% increase over 07-08 Federal Funds - $18 billion Motor License Fund - $2.9 billion Lottery Fund - $1.7 billion Total Operating Budget – $61.3 billion

3. EPLC - February 20083 Governor Rendells Proposed 2008-09 Education Budget Summary Total of $9.8 billion for Basic Education (PreK-12) Increase $470 million or 5% over 07-08

4. EPLC - February 20084 BASIC SUBSIDY $5.242 billion proposed $291.3 million or 5.9% increase compared to: Increase of $167 million or 3.5% in 07-08 Increase of $292 million or 6.5% in 06-07

5. EPLC - February 20085 NEW BASIC FORMULA Linked to Costing-Out Study But does not include Special Ed Increase State Funding by $2.6 billion over 6 years Gets state share to 44% in 6 years

6. EPLC - February 20086 NEW BASIC FORMULA $291 million in 1 st year Intended to close Adequacy Gap Achieve Adequacy over 6 years

7. EPLC - February 20087 NEW BASIC FORMULA Calculate adequacy target for district: $8,355 + poverty, ELL, size, geographic Minus actual spending = adequacy gap Determine state share of adequacy gap based upon aid ratio and districts existing tax burden With 1.5% Hold Harmless in 2008-09

8. EPLC - February 20088 ACCOUNTABILITY Districts receiving basic ed increase above Act 1 inflation index must spend portion above index on proven school improvement strategies Districts identified as Warning, Improvement or Corrective Action & districts with a school identified for improvement or Corrective Action must have PDE approval for use of resources above inflation index

9. EPLC - February 20089 OTHER INCREASES Special Ed – $1,040.3 mill +$30.3 mill Transportation – $529.4 mill +$22.4 mill Authority Rentals – $334.2 mill +$10.6 mill Social Security – $513.3 mill +$18.5 mill Retirement – $475.2 mill +$24.1 mill Charter Reimb – $197.5 mill +$36.3 mill

10. EPLC - February 200810 OTHER INCREASES PA Assessment – $58.4 mill +$26.8 mill Pre-K Counts – $87.5 mill +$12.5 mill Teach Prof Dev – $47.0 mill +$16.7 mill Dual Enrollment – $12 mill +$2.0 mill Sci: Its Elementary – $15 mill +$1.5 mill

11. EPLC - February 200811 ADDITIONAL EDUCATION LINE ITEMS Accountability Grants – $275 mill + 0 Classrooms for Future – $90 mill + 0 Education Assistance – $66 mill + 0 High School Reform – $11 mill+ 0 School Improvement – $22.8 mill + 0 Head Start Assistance – $40 mill + 0 Safe & Alternative Sch – $23.3 mill+ 0 IUs –$6.3 mill+ 0

12. EPLC - February 200812 SOME EDUCATION FUNDING CUTS Science & Math Ed – $2.5 m to $0 Urban & Minority Teach – $3 m to $0 New Choices/Options – $2.5 m to $0 Non-Pub/Chart Trans – $67.9 m -$1.1 m Rx for PA – Food Serv – $4.8 m -$1.2 m School Entity Dem Proj – $17.2 m to $0 Education Mentoring – $1.2 m to $0 Gov Schools of Excell – $2.5 m - $0.6 m

13. EPLC - February 200813 HIGHER EDUCATION Community Colleges Operating - $236.2 m + $6.9 m Capital - $44.5 m+ $0 SSHE $518.7 m+ 14.5 m State-Related – $696.6 m+7.5 m Privates (IAG) – $42.0 m+ $0 PHEAA Grants – $397.7+ $11.6 m Technical Colleges - $2.4 m +$0.4 m

14. EPLC - February 200814 Pennsylvania School Funding Campaign Successful Schools… Successful Children… Successful Communities

15. EPLC - February 200815 PA SCHOOL FUNDING CAMPAIGN GOALS In 2008, enact legislation to implement and fully fund a new school funding system within 5 years based on Costing- Out Study and supporting principles of equity, adequacy, efficiency, accountability and predictability. Make a down-payment of at least $1 billion as part of 08-09 state budget.

16. EPLC - February 200816 PA SCHOOL FUNDING CAMPAIGN Proposed a specific formula and a first- year phase-in Announced PASSET Proposal and the Campaign on January 23 Steering Committee Members Campaign Partners/Supporters www.paschoolfunding.org

17. EPLC - February 200817 PASSET Proposal Pennsylvania Adequacy in School Spending and Equity in Taxation 5 year Plan based on Costing-Out Study Includes Adequacy & Property Tax Reduction Gets state share to 50% + Consolidates many line items Campaign now comparing Governors Proposal & PASSET

18. EPLC - February 200818 FUNDING CAMPAIGN YOU CAN TAKE ACTION! Sign up on Web Site Focus on Goals and Principles Contact Your Legislators Regional Leadership Teams & Networks Legislative Contact Teams Legislative Breakfasts Media Events Media Outreach