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School Board News Bulletin
November 2002

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PAC endorsement helps elect Blagojevich Governor

IASB offers new book on Illinois school finance

EFAB final report recommends state shift to income, sales taxes

Gidwitz open letter urges tax bailout to aid sinking schools

Illinois team works on targeting new Healthy Schools Initiative for kids

NEWS FROM IASB

'PlusFacts' to provide positive news about public schools

NSBA's 2003 conference planners aid Illinois attendees

Shea joins IASB staff

DEVELOPMENTS IN SCHOOL LAW

In the wake of the Supreme Court's decision upholding drug screens of extracurricular participants

NEWS HEADLINES

ILLINOIS DISTRICTS

Tuition tax credits mainly benefit the state's affluent

Illinois districts' deficit spending hits all-time high

New state director named for NCA school accreditation

REFERENDUM RESULTS

FEDERAL UPDATE

A few e-rate tips, official Web site may help schools get funds

U.S. education secretary Paige demands adherence to state standards for NCLB

PAC endorsement helps elect Blagojevich Governor
Blagojevich vows to continue giving 51 percent of new revenue to education

The Illinois Statewide School Management Alliance political action committee (PAC) picked a winner when it announced October 15 it was endorsing Congressman Rod Blagojevich for Governor. An endorsement committee interviewed both Congressman Blagojevich and Attorney General Jim Ryan before making the recommendation. Alliance PAC trustees met to discuss, and ultimately follow, the committee's recommendation in voting to endorse the Congressman.

"Mr. Blagojevich's positions on school voucher programs, and his ultimate objective of the delivery of a quality education to all Illinois children, support what we have been working for in the Legislature," said Joe Alesandrini, chairman of the Alliance PAC Endorsement Committee, and a Pekin High School board member and IASB Director. "We need a governor who will work on behalf of public education to put the welfare of children ahead of political convenience."

Topping the issues facing public school districts in Illinois is making permanent the commitment of 51 percent of new state revenues to education funding, according to the Alliance PAC. In the last 25 years, the state's share of school funding has dropped from 48 to 38 percent.

"One way that I plan to increase funding for our schools is by not only continuing Governor Ryan's commitment to direct 51 percent of new revenues to education funding, but to codify that promise into law," Blagojevich said.

Governor-Elect Blagojevich also earned praise from the Alliance for his stand against using state dollars to fund private schools or voucher programs.

Blagojevich agreed to review a number of key school management issues, including tax cap exemptions, the state foundation level, the school construction program, the retired teachers health insurance program, mandate waivers, unfunded mandates, Tax Increment Financing, special education funding, school reorganization, and the selection process for the State Superintendent of Education.

The Alliance PAC candidates in state legislative races also did "very well" on November 5, according to PAC spokesman Ben Schwarm. "Of the funds the PAC contributed to candidates in 2002, 96 percent went to those who won their races."

Democrats gained a hold on both legislative chambers, as well as the governor's chair. Democrats already controlled the House by six votes, but appear to have picked up a 14-vote majority now, and they took away control of the State Senate as well, ending the Senate Presidency of James "Pate" Philip.

IASB is a member of the Illinois Statewide School Management Alliance, along with the Illinois Association of School Administrators, Illinois Association of School Business Officials, and the Illinois Principals Association.

Source: Alliance PAC, November 6, 2002.

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IASB offers new book on Illinois school finance

Essentials of Illinois School Finance is the title of a new book published by the Illinois Association of School Boards. Sub-titled "A Guide to Techniques, Issues and Resources," the new book was originally designed as a training manual and desktop reference for school business managers and budget makers. While it serves that role admirably, the book also provides an effective reference for anyone who needs to understand "the essentials of Illinois school finance."

From the role of the school board (addressed in the foreword by IASB Executive Director Michael Johnson) to the peculiarities of state funding to the formulas for projecting enrollments and staffing budgets, this book covers just about everything - and does it in plain English.

The author, James B. Fritts, is a retired school business official who now teaches school finance to administrators and aspiring administrators at Loyola University of Chicago. In addition to his own experiences and those of numerous students and colleagues, Fritts calls on a wide array of sources with expertise in state funding, property tax administration, and virtually all aspects of school business management.

The first part of the book deals with revenue - where schools get it, how they maximize it, protect it, manage it and plan for it. The second half of the book addresses expenditures - how schools budget for them, reduce them, and make plans to deal with them. Together, the two sections provide a solid base for financial management and long-range planning.

Beginning with how Illinois funds its schools and the school district organization, Part One reviews the budget as a legal document and revenue plan, fund accounting, the property tax cycle and assessment process, the rules and impact of 'tax caps,' Corporate Personal Property Replacement Tax Revenue, how the General State Aid formula works, and categorical grants for social programs. It continues with federal appropriations and matching grants, uses of local revenue sources, techniques for revenue projection, short- and long-term borrowing options, maintaining revenue controls, and successful referendum planning.

Part One concludes with an analysis of the school funding debate over equity and adequacy.

Part Two reviews how school expenditures are managed and monitored.

Essentials of Illinois School Finance is available from IASB Publications, 2921 Baker Drive, Springfield, IL 62703. Telephone 217/528-9688, extension 1108; fax 217/528-2831. Price is $23 ($18 for IASB members) plus $4 shipping. The book also may be purchased through the Association's online bookstore, http://www.iasb.com .

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EFAB final report recommends state shift to income, sales taxes

Illinois needs to spend more on education from income and sales taxes, while easing its reliance on property taxes, if public schools are going to thrive. That is the key finding from the final report of the governor's Education Funding Advisory Board (EFAB).

"I think we're talking a substantial tax increase, and we ought not hide it anymore," said Robert Leininger, chairman of EFAB.

The advisory panel released its report October 22, after spending nearly five years studying how to improve school funding. The final report recommends, among other things, that Illinois trade in $3.5 billion in property tax revenue that's now used to fund education, in exchange for income and sales taxes.

The tradeoff would not add new money for education, but it would reduce some of the state's over-reliance on property taxes, and create a fairer funding system, said Robert Leininger, a former Illinois state superintendent of education who now chairs EFAB.

The plan recommends the state provide voluntary incentives for the consolidation of elementary and high school districts into unit school districts. It also calls for infusing $1.8 billion worth of new money into education, thereby increasing the foundation level per pupil from $4,560 to $5,565.

At least 70 percent of Illinois school districts are operating with a budget deficit, and that number is only expected to climb within the next year, Leininger said, citing newly released statistics from the Illinois State Board of Education (ISBE).

A copy of EFAB's final report is available from the Web site located at www.isbe.state.il.us/EFAB/default.htm.

Source: State Journal-Register, Springfield, October 23, 2002.

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Gidwitz open letter urges tax bailout to aid sinking schools

ISBE Chairman Ron Gidwitz recently sent an open letter to the two major party gubernatorial candidates - addressed to all Illinois daily and weekly newspapers - pleading for new leadership to come to grips with the fiscal crisis facing Illinois schools.

"I am extremely worried about what may become of our educational system next year because no candidate for governor has addressed the fiscal crisis that currently grips our schools," Gidwitz wrote.

In a letter that school management leaders praised as "timely and visionary," Gidwitz added: "As much as the gubernatorial candidates would like to think otherwise, sufficient revenue for our children is not going to come from scrimping and saving from existing state sources."

The state board chairman noted that an infusion of $350 million in new money for schools would be needed next year "just to stay even -- which is to fall behind."

"Without new revenues or some other way to generate funds at the state level, budget cuts will be more draconian next spring than they were last," Gidwitz warned.

Source: Illinois Association of School Administrators' Web site, October 17, 2002.

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Illinois team works on targeting new Healthy Schools Initiative for kids

Health, nutrition, education and physical activity groups are joining forces to implement a national program in Illinois to turn the trend of increasing obesity in children.

Illinois' Action for Healthy Kids team has chosen two target actions for schools: providing all children, from Pre-K through grade 12, with quality daily physical education that helps develop the knowledge, attitudes, skills, behaviors and confidence needed to be physically active for life; and providing food options that are low in fat, calories and added sugars, such as fruits, vegetables, whole grains and low-fat or nonfat dairy foods.

The Healthy Schools Initiative is based on the premise that the fight against childhood obesity, which is reaching epidemic proportions in the United States, will best be waged at schools, where children spend a great deal of their day. By providing resources and information to school personnel, as well as parents, proponents hope to create a healthier environment in the nation's schools.

Ten representatives from Illinois attended the Healthy Schools Summit in Washington, D.C., October 7-8, and will form the nucleus of the Illinois team. The summit was funded, in part, by the National Dairy Council.

The National School Boards Association is one of 34 sponsor organizations for the Initiative. Linda Dawson, director of editorial services, will represent IASB on the Illinois team.

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NEWS FROM IASB

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Ever wish you had a quotable fact or statistic at hand to refute a negative assertion you've been confronted with concerning public education? Then watch for the PlusFacts packets you will receive as you enter the first general session on Friday, November 22, at the Joint Annual Conference. This is something new from IASB, a little extra support that school leaders may find helpful.

Each packet contains eight cards, and each card contains a positive piece of information about public education. The facts should be easy to remember, and - if you don't want to memorize them - you can slip one in your pocket or your purse so that it's there when you need it.

Then if someone you know starts criticizing schools, you can say, "But did you know that ..." and plug in the information from your PlusFacts. Or you can use the facts when you make presentations to service clubs or to start your board meetings.

IASB had a specific reason for including eight cards in the packet - the aim is to provide one card for each board member, and one for the superintendent. That way, each of the eight school leaders in most school districts can target a specific message in the community. But, if you prefer, you may all use all of the facts.

The packets also contain a source for the information, in case someone challenges the facts. The source will be listed in tiny print in the bottom left corner of each card. This is not, however, just a one-time thing. There will be PlusFacts in future issues of The Illinois School Board Journal and this newsletter. IASB also plans to have new cards to add to the deck when members attend division meetings. So watch for PlusFacts ... and use them to promote the good news about public education.

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Illinois school leaders attending panel sessions at the NSBA Annual Conference will get a break from NSBA schedulers, as all sessions involving Illinois school board members and superintendents are to be scheduled for Saturday and Sunday (April 5-6). This will ensure that Illinois school leaders will be free to return to seat elected board members, and meet statutory requirements.

That good news was arranged and relayed October 24 by Sandy Gundlach, IASB director of field services, from Kenisha Williams, the NSBA staffer responsible for scheduling panels for NSBA's Annual Conference.

"I explained that Illinois' school board election will be April 1, 2003, and that there is potential conflict regarding Illinois school board member participation on panels, and their statutory requirement of seating the board within seven days of the election (April 8)," Gundlach explained. As a result, NSBA made the announcement of the scheduling plans to aid Illinoisans.

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Patrick Shea has agreed to join IASB in the post of assistant manager in the Administrative Services area in the Springfield office. His areas of responsibilities will include providing technical support, aiding the association with Microsoft application problems, and assisting with the day-to-day support of the computer network. Shea's first official day was November 1.

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DEVELOPMENTS IN SCHOOL LAW
By Melinda Selbee, IASB/s general counsel

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In a landmark ruling the U.S. Supreme Court recently upheld the constitutionality of school drug screens for students who participate in extracurricular school programs. In order to assist school leaders in coming to grips with that ruling, Part I of this article - appearing in the October Newsbulletin - discussed important issues for school leaders to consider and discuss in regard to school drug prevention efforts in general, and drug screens in particular. Specifically, Part I provided background on the law regarding searches and drug screens, and listed five issues school officials should weigh:

Only five of the author's original list of 12 issues could be included in the October newsletter. Here are the other seven issues school officials may wish to discuss and consider when evaluating an existing program or designing a new one to deter drug use by students:

6. Do board policies reflect board thinking (board function)? Are there well-drafted policies in place regarding student rights, search & seizure, student discipline, disciplinary procedures, and bus conduct? Is the policy language easily understood or are the terms vague? Every student conduct policy or rule should have three clearly stated components: description of prohibited conduct, a jurisdictional statement (i.e. where and when the conduct is prohibited), and possible consequences.

Does the student handbook need updating (staff function)? Does it adequately provide notice of the school's conduct rules, extracurricular and athletic participation requirements, and other important information. All staff-drafted disciplinary rules must be consistent with the district's disciplinary policies.

7. What sanctions are appropriate for a student who violates drug rules? The available sanctions depend on the rule violated, i.e. whether it was a student discipline rule applicable to the entire student body or whether it was a rule that applied to only extracurricular participants.

Student discipline codes typically prohibit "using, possession, distributing, purchasing, or selling illegal drugs, controlled substances, 'look-alike' drugs, and drug paraphernalia" by students on school grounds or at school activities. When should drug rehabilitation be offered instead of suspension or expulsion? How are repeat offenders treated? Are sellers treated more severely?

Rules applicable only to participants in extracurricular activities can apply around the clock, seven days a week. A ban on drug use with an accompanying drug screening is only minimally intrusive, provided violators face no academic sanction. Thus, the punishment for a student who has a positive drug screen is limited to denying the student the privilege of participating in the extracurricular program. How long should the participation be interrupted? Note that inconsistent "coach's rules" can sabotage the enforceability of a sanction.

8. Are due process procedures up-to-date and are they used correctly? This staff function is critical to the success of any disciplinary program. The U.S. Constitution and State law mandate certain suspension and expulsion procedures.

In most cases involving a student's removal from a team, courts have ruled that participation in extracurricular athletic programs is a privilege rather than a right. The deprivation of a privilege does not trigger the Constitution's due process provision. Consequently, unlike school attendance, students generally have no constitutional right to participate in extracurricular programs. Nevertheless, participants who violate the conduct code should be allowed to give an explanation before being removed from the activity.

9. School officials must be careful of using jargon such as "zero tolerance." There is no common understanding of what this terms means. Additionally, use of "zero tolerance" may damage the discipline program's credibility because school officials cannot keep the implied promise. Indeed, the Individuals with Disabilities in Education Act and student records laws prevent school officials from even explaining the reason some students are treated differently.

10. Would a school liaison police officer contribute to the goal of drug-free schools and students? How can the contribution be maximized? According to a 1996 Illinois Court of Appeals decision, the search of a student by a school liaison police officer is tested using the same Fourth Amendment standard as that of a search conducted by a school official. However, if the police request school officials to search a student for law enforcement purposes, the search must be supported by probable cause.

11. In what ways can law enforcement and school officials work together to ensure drug-free schools and students? Are procedures followed regarding reciprocal reporting of criminal offenses committed by students?

12. How effective is the district's drug prevention program? How does one measure and monitor "effectiveness?"

Note: The complete text of this article, together with footnotes containing legal citations is available on the IASB Web site at: www.iasb.com/files/nb1002.htm#law1 .

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NEWS HEADLINES

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Recent demographic studies indicate Americans approve of stringent standards of schooling, but distrust public policies that could punish their children or the schools they attend. Parents want to have control but only low-key involvement in their children's schooling. Their greatest wish is for schools to provide personally tailored, attentive care to their children's emotional, social and academic development. "Perhaps more marketing messages could depict images of children succeeding in school, teachers providing individualized attention, and schools proving to be a source of local pride." (September 2002, American Demographics) ... Governor Ryan confirmed October 3 that state fiscal experts project a budget shortfall of more than $2 billion by next summer, and he questioned campaign pledges by both major-party gubernatorial candidates to veto any state tax increase. "I think a promise of no new taxes is probably bad policy, especially in times like this," said Ryan, after briefing state legislative leaders on revenue concerns (October 4, Chicago Tribune) ... Illinois is among the best at giving its people the opportunity to get a higher education, according to an independent study comparing higher education in the various states, released October 2. "Measuring Up 2002: The State-by-State Report Card for Higher Education" was prepared by the National Center for Public Policy and Higher Education. It grades states in five areas based on quantitative measures of achievement (October 3, State Journal-Register, Springfield).

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ILLINOIS DISTRICTS

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The state dipped into its pocket to hand out $65.9 million in tuition tax credits to 183,132 families this year, state revenue department records indicate. But the program mainly benefits those in middle and upper-income brackets, according to a study by the People for the American Way Foundation.

The state-funded tuition tax credit program provides credits of up to $500 per family, primarily to wealthier families who send their children to parochial schools, according to the foundation's study. Families boasting adjusted gross incomes of at least $80,000 got 46 percent of the tuition breaks last year.

"It probably has not served its intended purpose," said Glenn "Max" McGee, the state's former superintendent of education. "Maybe I was naive. I said this was going to benefit poor kids."

The two-year-old program has no income limit, and anyone who has a child enrolled in a private school is eligible. Thus, families with kids in elite schools where the tuition is over $10,000 per child are eligible to receive the largest credits.

Although the tax credit is also available to families with children in public schools, their allowable expenses usually are not high enough to qualify for the credit.

More information is available at the foundation's Web site, http://www.pfaw.org .

Sources: Misplaying the Angles: A Closer Look at the Illinois Tuition Tax Credit Law, People for the American Way, October 2002; Chicago Sun-Times, "Tuition tax credit more popular in second year," October 22, 2002.

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More than 80 percent of Illinois school districts are spending more dollars than they are taking in, according to Gary Ey, ISBE's top financial manager.

In contrast, only 46 percent of Illinois school districts faced spending deficits three years ago. The following year that figure rose to 61 percent.

The deficits arise largely from limits on school revenue, including property tax caps, and a burgeoning number of Tax Increment Finance (TIF) districts that have drained potential property tax revenue from schools. State and federal funding also has declined in some school districts, while there's been a growing trend for successful tax protests to erode anticipated revenue.

Meanwhile, the bill for major school expenditures, such as health care costs, employee salaries, and pension demands, have skyrocketed.

Source: Chicago Tribune, "Deficit school budgets multiply," October 17, 2002.

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John Evans, former assistant director of the Office for Academic Policy Analysis at the University of Illinois, assumed the state director position of the North Central Association Commission on Accreditation and School Improvement (NCA CASI) in late September.

As state director, Evans oversees the accreditation of public and private elementary and secondary schools in Illinois. The accreditation process requires schools to meet a set of quality standards, be evaluated by an outside group of professionals, and engage in continuous school improvement focused on increasing student performance. Accreditation is voluntary and must be renewed each year. Schools that choose to be accredited demonstrate their willingness to be held accountable for quality and results.

Evans plans to focus his tenure with NCA CASI on helping schools achieve higher results for students. "We know that the school improvement process required by NCA CASI produces results for all students. A recent study of schools actively engaged in the Association's school improvement process revealed that 79 percent made verifiable gains in student achievement," Evans said.

For more information phone Jill Clark Hawley at NCA, 303/722-6019, or e-mail: jhawley@ncacasi.org.

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REFERENDUM RESULTS

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Voters approved only 23 of the 80 school finance referendums at the November 5 general election, based on preliminary results reported by ISBE's research division. With the economy being widely blamed, at press time nearly 21 percent of tax increase propositions appear to have won voter approval. Yet voters approved 50 percent of the bond issues on the November ballot.

Unofficial results showed 71 percent of all school finance referendums had failed or were failing. The rejected proposals included a tax increase proposal in the state's second-largest school district, Unit District 46, Elgin.

Bucking the trend, however, was Hazel Crest District 152-½, a district on the verge of insolvency, where voters agreed to a tax increase that may have come too late to prevent the district's dissolution.

In addition to most school finance questions, voters also rejected three of four proposed school district consolidations in the state. The lone success involved the state's smallest school district, with voters approving the annexation of tiny Otter Creek-Hyatt Elementary District 56, in LaSalle County, to Allen Township C.C. District 65, Ransom. Voters elsewhere were asked to decide on proposed changes in school board office terms in three school districts, with results not yet known at press time.

In addition, tax caps were approved by voters in Coles and Cumberland Counties, with no other tax cap propositions on the ballot this time.

Final referendum results and a list of district outcomes are posted on the IASB Web site as well as an analysis of trends, and will be included in the December Newsbulletin.

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FEDERAL UPDATE

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$2.25 billion in e-rate discounts available to schools, libraries for 2003 funding year

Since the program began in 1998, the federal e-rate program has helped thousands of schools and school districts obtain billions of dollars in discounts to support more affordable telecommunications and Internet access. As school administrators begin gearing up for the next funding cycle in 2003 - and with the first application period now beginning, experts offer the following tips to make sure potential school funds are not left unclaimed:

• Use correct forms and instructions. Official forms and instructions can be found, and filed, online at http:// www.sl.universalservice.org. Visitors to the Web site will also find background information and updates on the e-rate.
• Complete the three forms required. Forms 470, 471, and 486 are available for filing online at the Universal Service Administrative Company (USAC) Web site at http://www.sl.universalservice.org/menu.asp. The first form required, Form 470, needs to be filed by mid-December this year to qualify for the 2003 funding year.
• File priority one and two requests separately. Fundamental needs, such as Internet requirements, get first funding. The feds will then fund "priority two" needs, including requests for equipment for the neediest schools. Districts that file requests for Priority Two funds should file a second 471 form, separating their poorest schools to hasten approval.
• Assign a top administrator to complete the applications. Low-level staff members may not understand how to fill out the required forms.
• Make sure to get your technology plan approved each year. The plan must be approved annually. "The plan should include everything you can possibly file for, including local and long-distance services, Internet service, and infrastructure such as wiring costs, local and wide area network equipment and servers," according to experts at the e-rate consulting firm, Dietrich Lockard Group.
• Cooperate with vendors to pursue your funds. Rather than turn in one complete bill for reimbursement every quarter, ask each of your vendors to track your expenses and bill the SLD for their share.
• Keep all records for five years. Federal audits are performed at random annually, so written records must be kept ready and on file. The state e-rate coordinator is Ricardo Tostado, phone 312/814-2220 or e-mail at rtostado@isbe.net. For any questions schools can contact the state coordinator or visit the SLD Web site, www.sl.universalservice.org.

Sources: USAC Web site; and Dietrich Lockard Group consulting firm. For more information visit Dietrich Lockard Group online at www.dietrichlockard.com or phone 314/961-3211.

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Federal education secretary Rod Paige has sent a harshly worded letter to state superintendents of education, warning them not to lower academic standards to try to skirt the No Child Left Behind Act (NCLB). In a letter dated October 22, Paige said those who take such action are "the enemies of equal justice and equal opportunity."

Illinois apparently was not one of the states Secretary Paige was referring to in his warning. But several states - including Colorado, Connecticut, and Louisiana - have lowered their standards for purposes of NCLB, according to an October 30 report in Education Week.

Paige's message praised states that have shown the "courage" to identify under-performing schools by NCLB definitions, schools the press has since labeled as "failing." But Paige noted that the NCLB act does not use the term "failing," because schools may be succeeding in some ways, even if their students are not meeting state standards in sufficient numbers to avoid NCLB sanctions.

Paige's letter hints that federal bureaucrats will be keeping tabs on states that lower their standards so more students can be tagged as academically "proficient." Proficiency in math and reading is the requirement for all students under NCLB, and the law levels sanctions on schools wherein significant percentages of students are not proficient under state standards.

States decide what their standards will be, however, and every state has a different set of standards. State education officials argue that the NCLB act punishes states with high standards - such as Illinois and Michigan - constraining them to provide school transfers and expensive tutoring with federal funds that would otherwise go to classrooms.

"There are states, like Michigan, that don't see that they can comply with it," said Brenda Welburn, executive director of the National Association of State Boards of Education.

"It was something that we almost anticipated, because there are such differences in state standards," she said. "We've got one federal law, but we've got 50 state standards."

But Secretary Paige has stated that the annual National Assessment of Educational Progress, or NAEP, will show which states' standards are low. Federal NCLB supporters say the low NAEP scores likely could urge states to raise their standards.

The law attaches no penalties to states for low NAEP scores, however.

Source: The Associated Press, "Education secretary urges standards," October 24, 2002.

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