Federal Legislative Report 114-8

Distributed via Email: February 19, 2016

EVERY STUDENT SUCCEEDS ACT (ESSA) UPDATE

Education stakeholders in Washington, D.C., have been very busy since the passage of ESSA working on the implementation. The House Education & Workforce Committee held a hearing on Feb. 10, which focused on ESSA implementation and strengthening local governance. The Senate will hold a similar hearing on Feb. 23.

The U.S. Department of Education (USDOE) has also been busy collecting advice and providing regulatory guidance. They held two hearings in January, one on the East Coast and West Coast, which provided stakeholders the opportunity to provide “advice and recommendations concerning topics for which regulations may be helpful to assist states, school districts, and schools to implement the new law.” They have also sent out two “Dear Colleague” letters. The letter dated Dec. 18 provides guidance regarding activities districts are involved in that have imminent deadlines and are affected by ESSA. The letter dated January 28, provides details about the flexibilities available in the 2016-2017 school year, specifically how the use of Fiscal Year 2016 (FY16) formula grant funds will follow the same procedures and allocation formulas for the current school year, with some exceptions related to school and local educational agency interventions and supports, interventions for English learners, and No Child Left Behind provisions that are not in the ESSA.

On Feb. 2, acting Secretary John King issued guidance to chief state school officers regarding how existing funds under No Child Left Behind (NCLB) may be used to eliminate redundancy and ensure efficacy and quality of assessments until the 2017-2018 school year when provisions of ESSA go into effect. The guidance provides examples of federal funds that states and districts can use, such as   Title IA, Title IIA, Title III and Sec 6111 (grants for state assessments) to conduct assessments audits, support the appropriate use of assessment results, provide professional development to support assessment literacy, and increase the quality, transparency, and timeliness of assessments.  

Then on Feb. 4, the USDOE posted a notice in the Federal Register of their intention to establish a “Negotiated Rulemaking Committee” to prepare proposed regulations for two issues in ESSA, assessments and supplement/not supplant. The Committee will be made up of education stakeholders appointed by the USDOE and will include an impartial facilitator. Committee members will edit draft regulations created by the USDOE. Meetings are scheduled in March and April, and then their recommendations will be posted in the Federal Register and follow that process.

PROPOSED REGULATIONS FROM THE U.S. DEPARTMENT OF LABOR (USDOL)

Last week, several education associations, nonprofit organizations, and business coalition groups joined together to issue a letter to members of Congress seeking assistance in halting proposed rules issued by USDOL that will have a significant impact on all employers—including school districts. Of significant concern, under the proposed regulations, USDOL would more than double the current salary required to qualify for “white collar” exemptions to overtime requirements, and establish annual increases in the cap.

Under the Fair Labor Standards Act, an individual must satisfy three criteria to qualify as a white collar employee exempt from federal overtime pay requirements. One of the criteria is that the employee’s salary must be more than $455/week ($23,660 annually—the minimum salary requirement or salary threshold). Among other changes, the USDOL has proposed increasing the salary threshold from $23,660 to $50,440, effective at the end of the year. Overall, the proposal will result in a 113% increase in the salary threshold. To learn more about the proposed regulations visit http://protectingopportunity.org/ and view the letter.

SCHOOL NUTRITION REAUTHORIZATION

Many districts have struggled to meet the standards and other requirements put in place when the Healthy, Hunger-Free Kids Act was enacted in 2010. The law expanded federal regulation far beyond federal school meal programs to school district operations throughout the campus and school day. The Act expired on Sept. 30, 2015, however, the program and its regulations continue as long as Congress continues to appropriate money for it, which it has.  

In mid-January, the Senate Committee on Agriculture, Nutrition & Forestry took the first step toward reauthorization by issuing a bipartisan bill called the Improving Child Nutrition, Integrity and Access (ICNIA) Act of 2016. The ICNIA is a promising first step toward incorporating the local school district governance perspective in implementation of school meal programs. The bill would create a School Nutrition Advisory Committee at the Department of Agriculture that includes membership from an association representing local school boards. Proactive inclusion of the school board perspective could prevent federal overreach into school district operations and safeguard their instructional mission. In addition, the ICNIA would provide relief for whole grain and sodium reduction targets, a paid meal equity exemption to reduce unnecessary price increases for unsubsidized meals, a mechanism to address unintended consequences of the competitive foods standards, and restoration of the five year administrative review cycle. The bill will now move to the floor to be considered by the full Senate.

PRESIDENT’S FISCAL YEAR 2017 (FY17) BUDGET REQUEST

The President released his FY17 budget request to Congress on Feb. 9. Some of the highlights, according to the President, include investments to improve academic achievement, empower students with the computer science skills needed for a 21 st century economy, and expand access to high-quality preschool. Specifically, the President’s FY17 budget proposes the following:

FISCAL YEAR 2016 (FY16) BUDGET

In mid-December, Congress avoided a shutdown by passing an omnibus appropriations bill to fund the FY16 budget. Congress had failed to complete its appropriations work before the federal fiscal year expired on Sept. 30, and had adopted a short term continuing resolution that expired on Dec. 11. Then legislators adopted a five day continuing resolution before adopting the final omnibus spending bill. The FY16 budget totals $1.1 trillion and includes slight increases to education, with discretionary education funding increasing by just over $1.1 billion. The $1.1 billion includes a $500 million increase in Title I grants for disadvantaged students and a $415 million increase in the Individuals with Disabilities Education Act (IDEA).

The omnibus spending bill also included a two-year delay in the collection of the Excise (“Cadillac”) Tax under the Affordable Care Act, an extension of Qualified Zone Academy Bonds (QZABs) for school modernization efforts, and an extension of the E-Rate exemption from the Anti-Deficiency Act through 2017.

JOINT GUIDANCE ISSUED ON QUALITY HEALTH CARE AND EDUCATION FOR CHILDREN

In late-January, the USDOE and the U.S. Department of Health and Human Services (HHS) issued joint guidance to state education and health officials aimed at offering steps to ensure quality health care and education for every child. The letter provides resources and offers suggestions as to how officials can work together to build comprehensive programs to increase the effectiveness of health and education programs.

HHS and USDOE have created the “Healthy Students, Promising Futures” toolkit, which includes information of particular interest to school officials including ways in which schools may utilize federal health programs to assist students and their families in obtaining health insurance, securing reimbursements for certain services provided by school districts to children enrolled in Medicaid, and utilizing services provided by certain hospitals. The joint letter and the “Healthy Students, Promising Futures” toolkit can be accessed here.