Distributed via Email: February 15, 2012
Note: At the 2011 Joint Annual Conference, IASB Immediate Past President Joe Alesandrini mentioned that IASB was looking at new possibilities for engaging in the federal process, including options that could change the current roles of the national and state associations. Through an agreement with the National School Boards Association (NSBA), IASB will now be providing federal legislative information to all member districts, whether they are an NSBA National Affiliate, Federal Relations Network member or not.
The Federal Legislative Report (FLR) will be sent to anyone that is signed up to receive the Alliance Legislative Report (ALR). The FLR will be used to forward information on federal issues from NSBA and other federal sources.
The information in this report will, most times, be pared down from what NSBA sends out. Those interested in additional information or would like to sign up for these free reports should contact Susan Hilton .
Federal Relations Network Conference
IASB’s executive officers, three other school board members and IASB staff recently returned from the National School Boards Association’s Federal Relations Network (FRN) Conference in Washington, D.C.
The delegation participated in sessions on federal issues, heard nationally recognized speakers and spent a day on Capitol Hill meeting with members of Illinois’ Congressional delegation. Major topics of discussion at the Conference and with legislators were the reauthorization of the Elementary and Secondary Education Act (ESEA)/No Child Left Behind (NCLB), federal funding of Title I and the Individuals with Disabilities Education Act (IDEA), and protecting local control.
Those interested in attending the FRN Conference next year should contact Susan Hilton.
School Bonds and IRS Compliance Checks
As part of the Hiring Incentives to Restore Employment (HIRE) Act that was enacted in 2010, the Qualified School Construction Bond (QSCB) program that provided $22 billion in bond authority to states and school districts through the economic stimulus was allowed to have a direct payment option to bond issuers, similar to the Build America Bonds program.
The school district or other government entity issuing the school construction bond could have chosen a tax credit bond that allows the bondholder to receive a federal tax credit instead of interest from the issuer. Or, the school district or other government entity could have chosen a direct payment option, or federal rebate, equal to the interest costs for the bond or the amount of the federal tax credit, whichever is lesser. This is an area in which the Tax Exempt Bond Group is scheduled to conduct compliance checks.
Districts that have issued tax anticipation notes and/or school construction bonds should share this information with the board and district finance officials, to make them aware of the IRS compliance checks. The timing of these compliance checks is unknown.
E-Rate
The federal E-Rate program, which reduces the cost of Internet access for high-need schools and libraries, received a two-year waiver from burdensome regulatory requirements in the Consolidated Appropriations Act for FY 2012.
The waiver protects E-Rate from the Anti-Deficiency Act, which would tie up funding commitments and even put schools at risk of having their Internet access disconnected. As a result, more than $2.25 billion in E-Rate discounts will be available to school districts without interruption for each of the next two years.
School Nutrition
The U.S. Department of Agriculture issued the final Nutrition Standards for the National School Lunch and School Breakfast Programs on Jan. 22. A few positive changes have occurred since the Standards were originally issued in April 2011:
Even with the positive changes, a significant federal funding gap remains due to the new standards. The Congressional Budget Office estimates that less than half of the total cost of implementing the standards ($1.5 billion out of $3.2 billion) will be covered by the performance-based reimbursement rate increase of 6 cents per lunch. With a few exceptions, the nutrition standards are effective July 1, 2012.
Illinois’ ESEA Flexibility Waiver
The Illinois State Board of Education has been meeting with stakeholders from across the state to gain input on Illinois’ ESEA Flexibility Waiver request. State Superintendent Chris Koch recently noted in his Weekly Superintendent’s Message that, “our waiver request will include flexibilities in spending, supports and reforms to best meet the local needs, while at the same time raising expectations for students and educators through implementation of higher learning standards and an evaluation system based on measured progress.”
The waiver request is due to the U.S. Department of Education on Feb. 21.
Correction
In the last FLR issue, it was reported that H.R. 2218, the Charter School legislation, was signed into law. It has only passed the House. IASB apologizes for this error.