Distributed via Email: August 18, 2014
FISCAL YEAR 2015 FUNDING UPDATE
The budget created back in December, stemming from the deal that ended the shutdown in October, set the overall spending parameters for Fiscal Year 2015 (FY15) and FY16, making additional work on the budget redundant. The president, however, released a budget proposal in early March as reported in 113-06 Federal Legislative Report, which is about $4 billion over the amount negotiated in the bipartisan budget agreement.
The House passed a budget in early April that is about $1 billion below the amount negotiated in the agreement. The Senate began work on a budget in June that is right at the funding level of the agreement. They passed their budget out of the Appropriations Subcommittee, but it did not have a hearing in the full Appropriations Committee before Congress adjourned for a month of district work in August. Because of this delay, it is unlikely that Congress will complete its appropriations work on time. This will result in a continuing resolution to fund programs at current levels for the beginning of the new fiscal year, which begins Oct. 1.
CHARTER SCHOOL BILL
The House passed a bill dealing with charter schools in May, the Success and Opportunity through Quality Charter Schools Act (HR 10). Sponsored by Education and the Workforce Committee Chairman John Kline (R-MN) and Senior Democratic Member George Miller (D-CA), the bipartisan legislation would support state efforts to start, expand and replicate successful charter schools. The bill would also provide support for charter school facilities. It consolidates the two main federal programs for charter schools (one for charter developers to open new schools, and money to help charters find/fix up facilities). On the positive side, the bill strengthens requirements related to how charter schools recruit and educate special populations (students in poverty/with disabilities).
There are significant concerns, however, that the bill falls short of ensuring equitable treatment of all schools receiving federal funds. It gives preferential treatment to charters, both in terms of flexibilities and accountabilities, as well as access to federal resources for construction/facilities. Specifically, HR 10 does not impose the same accountability requirements that traditional public schools must follow for reporting student achievement data, as well as information regarding parental involvement, highly qualified teachers, and other criteria outlined by the Elementary and Secondary Education Act. It also does not address the issue of charter school board meetings being open to the public, because charter schools are publicly funded schools. One other concern is when charter schools enroll students and receive the respective per pupil allocations, then drop certain students for various “reasons.” Then when these students return to their former schools, the per pupil expenditure is not remitted from the charter school, which creates additional stress on already tight budgets.
Also in May on the Senate side, Senators Mary L. Landrieu (D-LA), Mark Kirk (R-IL), Lamar Alexander (R-TN), and Michael Bennet (D-CO) introduced the Expanding Opportunity Through Quality Charter Schools Act (S. 2304), which proposes "smart updates to the federal Charter Schools Program (CSP) that provides startup, replication and expansion funding for high-quality public charter schools." The senators state that the bill "aims to improve educational opportunities for all students by expanding the number of high-quality charter schools, helping charter schools access suitable facilities, and supporting innovation and research in the charter sector." Under their proposal the senators say potentially as many as 500 new charter schools could open with federal support every year.
VOUCHER BILL
In June, the CHOICE ACT (Creating Hope and Opportunities for Individuals and Communities through Education Act), was introduced by Rep. Todd Rokita (R-IN) and Cathy McMorris Rodgers (R-WA). It is a voucher bill that would use federal resources to fund private school vouchers for students with disabilities and students residing on military bases. In addition, the legislation would expand vouchers through the existing District of Columbia Opportunity Scholarship program. No bill number has been assigned nor has the legislation been posted for a hearing. A companion bill was also introduced in the Senate (S. 1909). As with the House bill, no hearing has been posted yet.
E-RATE UPDATE
The Federal Communications Commission (FCC) made several positive changes to the E-Rate program in mid-July. The first main change is that it increases efforts to close the Wi-Fi gap by increasing funding available to support broadband connectivity in schools and libraries. The second main change is that it maximizes E-Rate spending by increasing transparency in how E-Rate dollars are spent and on prices charged for E-Rate services. The third main change is that it makes the E-Rate administration and application process faster, simpler and more efficient.
Further conversation in the form of another rule is expected on this program regarding funding needs in the near future.
SCHOOL MEAL PROVISION IN APROP BILL
Many districts are struggling with all the additional regulations attached to the National School Lunch Program the last several years. In response to those concerns, the House Appropriations Committee, in late May, approved a United States Department of Agriculture (USDA) appropriations bill with language that includes a statutory directive to the USDA to establish a waiver process for local school districts if they have operated in the red for at least six months. The House bill also included an appropriation of $25 million for school meal equipment grants, which will help schools prepare and serve healthier meals and improve food safety.
The Senate Appropriations Committee also approved a FY15 funding bill for the USDA that would: 1) delay a ratcheting up of sodium restrictions pending further verification by scientific research; 2) require the Secretary to evaluate products available for school food providers to comply with heightened whole-grain requirements and to suggest alternatives when product availability is found to be lacking; and to 3) require the Secretary to report back within 90 days after the bill's passage with a plan to provide training and technical assistance to schools to reduce plate waste, comply with nutrition requirements, and maintain participation in the National School Lunch Program.
While it is a win to have the language recognizing the issues with the program in both chambers, it is unlikely an agreed appropriations bill will make it to the President considering the issues mentioned above regarding the whole FY 15 budget.
PCB UPDATE
The 113-06 Federal Legislative Report encouraged districts to respond to a survey regarding possible regulations from the Environmental Protection Agency (EPA) on Polychlorinated Biphenyls (PCBs). The survey was a collaboration of the National School Boards Association (NSBA), American Association of School Administrators and Association of School Business Officials International to issue recommendations to the EPA on their proposal to require school districts to remove PCBs, a potentially harmful chemical in old light fixtures.
The survey resulted in 1,200 responses from school board members, superintendents, school business officials, and maintenance/facilities personnel from 49 states. The findings indicate that the majority of school districts (66 percent) are actively removing PCBs in their buildings. In addition, over half (55.2 percent) of the respondents said that all schools built before 1980 (when PCBs were banned) had already installed lighting upgrades and an additional 31 percent said some of their buildings had undergone lighting upgrades to remove PCBs.
Most school districts reported that they have either removed the chemical or are planning to do so in the next five years. The three organizations recommended that new EPA rules are not necessary at this point. They also urged the EPA to recognize local leadership in this area and to avoid creating unnecessary costs, administrative burdens and unintended consequences with additional rules.
The EPA has stated that they may propose the rule before the end of the year.
USDA SCHOOL NUTRITION
The U.S. Department of Agriculture (USDA) proposed a rule this past spring regarding proposed regulations for local school wellness policies and marketing of food in schools. The proposed rule would establish extensive new requirements for developing, implementing, reporting and assessing local school wellness polices - all without additional federal funds. The regulation also threatens school revenue from non-federal funds by prohibiting marketing of food sold outside the federal school meal programs that do not meet school meal standards. The proposed rule would also require all food available in school - including items provided by children, families or teachers for celebrations and other observances - to meet federal nutrition standards.
NSBA commented to the USDA that all rules regarding the National School Lunch Program should be cost-neutral to school districts by providing sufficient federal support, and/or modifying regulatory requirements so that that local districts and state education agencies can comply within available federal reimbursement without redirecting resources from the instructional mission of the school district or increasing costs to students and families.
The USDA has made no indication as to when they will finalize their proposal.
COMMUNITY ELIGIBILITY FOR SCHOOL MEALS
Agriculture Secretary Vilsack and Education Secretary Duncan issued a joint statement extending the application deadline to Aug. 31, for the Community Eligibility Provision (CEP) of the Healthy, Hunger-Free Kids Act of 2010 (a.k.a. the National School Lunch Program). The CEP is how eligible schools can offer free breakfast and lunch for all of their students, and cover any costs that exceed the reimbursements from USDA. Rather than collecting individual applications for free/reduced price meals, CEP allows schools in communities with higher concentrations of poverty to offer free meals to ALL students, not just those who are eligible. To be eligible, a school district must have at least 40 percent of its enrolled students identified as eligible for free/reduced lunch. The program is voluntary.
According to the Secretaries, the program is designed to ease the burden of administering a high volume of applications for free and reduced price meals, the CEP is a tool to both increase child nutrition and reduce paperwork at the district, school, and household levels, which saves staff time and resources for cash-strapped school districts. The 2014-15 school year is the first time the option will be available to all eligible schools. Districts must notify the Illinois State Board of Education by the deadline of their intent to participate.
This Federal Legislative Report is used to forward information on federal issues from NSBA and other federal sources. Those interested in additional information or signing up for these free reports should contact Susan Hilton.