Executive Board

Executive Board

 

MAESP Legislative Update

November, 2007

2007 Special Session Info & Updates

The week of briefings and hearings has passed and, as many predicted, the Governors budget proposal has received the general endorsement of the Senate. MAESP urges everyone to continue to contact your legislators, recognizing that there appears little chance for significant changes to the Budget Reconciliation Act (SB 1) as introduced.  The House will take up the bill immediately following the Senate’s approval, so now is the time to be contacting all members, House and Senate. Go to the Maryland Association of Boards of Education (MABE)’s website [www.mabe.org ] for updates on recent Senate and House actions and pending actions.

The simplest message, now that the “freeze” appears a near certainty, is to remind your Delegates and Senators that given inflation, flat funding is a cut - and to urge opposition to any additional cuts (see the House section below).

What do we know today about the prospects for FY 2009 and 2010 funding as included in the Budget Reconciliation Act? The tables below reflect the current status. Note that the 1% hold harmless grants would benefit 6 school systems. Also note that the funding tables include GCEI amounts, but that the GCEI is not mandated in the bill itself.

Updated funding table for SB 1 - Budget Reconciliation Act

1% supplemental grant section of the funding table

General Assembly Roster with weblinks

Senate Action - Contact your Senators to urge continued support for public education funding and opposition to any proposed cuts or shifts to FY 2009 funding.  The Senate Budget and Taxation Committee has endorsed the Governor’s budget proposal, including the “freeze” in 2009 and 2010, with a return to an inflation factor in 2011. The full Senate is poised to approve the Committee’s bill and will then forward it to the House.  Despite all appearances that the fate of school funding for the coming fiscal year is a “done deal” we need to continue to speak out on behalf of public education. General Assembly Roster with weblinks


Bill Highlights (SB1 as amended by the Senate Budget & Taxation Committee - 11/06/2007)

- No mandated GCEI funding included - Governor pledges to include $38 million in his FY 2009 budget and fully fund it within 3 years. Note that because GCEI is not included in the bill, the fiscal note does not reflect the increases in state aid anticipated for the qualifying 13 counties.

- 1 percent "inflation factor" is only a hold harmless - It is a guarantee that all school systems will receive at least a 1% increase in state aid in each of the next 2 years. This is not a 1% inflation increase for all, because the bill adds state payments for teacher retirement costs to the total amount that determines whether the 1% threshold has been reached. What does this mean? Most counties receive at least a 1% increase in state aid once teacher retirement is added, so very few qualify for an additional 1%. Only the following jurisdictions would receive a 1% " inflation factor" in 2009 or 2010: Baltimore City, and Carroll, Dorchester, Garrett, Harford and Kent counties.

- CPI or IPD, whichever is less and not to exceed 5%, is the inflation factor that will replace the IPD in 2011 and beyond - This is the best news included in the bill; a firm commitment to return to a true inflation factor. Of course the "whichever is less" language is a disappointment.



House Action – Contact your Delegates to urge them to oppose any proposed cuts to education funding! The House is focused on a series of proposed budget cuts that directly impact public education. These are serious proposals, no longer couched as “doomsday” scenarios but cuts recommended by staff (and staff works for the leadership). General Assembly Roster with weblinks


On November 6, 2007, the House Appropriations Committee and Ways and Means Committee, through their education subcommittees, were briefed by the Department of Legislative Services (DLS) on the cuts recommended by DLS.

The cuts to education include:

Cut $29.5 million - Share the increase in retirement costs of teachers, librarians, and community college employees with local governments;

Cut $19.6 million - Reduce the GCEI by applying the formula to the State share of the foundation program only;

Cut $5.8 million - Defer inflationary adjustments to student transportation grants;

Cut $3.3 million - Defer additional enhancements to the public libraries formula;

Cut $2.8 million - Defer funding for the school facilities assessment survey; and

Flat fund the Infants and Toddlers Program at the FY 2008 $5.8 million level - full funding would add $8.2 million.

These are not good time for education in Annapolis. After making commitments to fund Maryland schools at a level that would provide “ADEQUATE EDUCATIONAL OPPORTUNITIES” for Maryland students (Thornton) and then not really doing that although making significant funding improvements, there appears to be a move by the Legislature and the Governor to have education play a major role in eliminating the nearly $2 Billion deficit. Call your House of Delegates representative and Senators and tell them cutting resources and transferring funding responsibility to local counties is not a wise choice for Maryland schools.


MAESP LEGISLATIVE UPDATE

October 2007

MAESP Members,

The contents of the following Legislative Update has been produced by the leadership and lobbying staff of MSTA. I thought it was excellent and am sharing it with you. MAESP shares the goal with MSTA that Education not be hurt by the Governor’s and subsequently the Legislature’s actions to deal with the state’s $Billion + deficit.

We want to report on breaking developments with the Governor’s office on behalf of public education.

On Saturday, September 29th, we met with Governor O’Malley to convey our dissatisfaction with his proposed two-year freeze and then permanent 2.5 percent cap on the Thornton formula.

Shortly thereafter, Diana Saquella, MSTA staff, began a series of meetings with members of the Governor’s staff. Our priority for the current stage of the budget deliberations was to remove the permanent cap on Thornton and to protect school systems from a funding freeze: “no caps, no freeze”.

Yesterday we met with the Governor. He informed us that he was going to notify “bill drafting” that he wanted the following changes to his proposal made prior to its release to the General Assembly on Friday:

  1. A guarantee of at least a one percent annual increase for all school systems in 2008-09 and 2009-10.
  2. The Consumer Price Index (CPI) replacing the Implicit Price Deflater (IPD) as the inflationary index beginning in 2010-11.
  3. The removal of the 2.5 percent growth cap in Thornton funding.

GCEI phase-in remains part of his proposal.

Here is some background on each of the three changes:

The guaranteed increase for 2008-09 and 2009-10

Eleven school systems don’t receive GCEI funds. They would have been hit particularly hard. As a result of enrollment declines, two systems—Garrett and Kent—would have received less in 2008-09 than they are already receiving this year. A one percent guarantee provides something for everyone.

The Governor knows that we are not happy about this 1 percent “growth” and will look for opportunities to work with the General Assembly to improve it.

The CPI replacing the IPD

The CPI is a measure of the change of cost of a “basket” of goods. It includes food, utilities, housing, transportation, recreation, education, etc. The IPD is a measure of Gross Domestic Product, everything spent within our borders on goods and services. They tend to move together, but from time to time diverge.

When the Thornton formula was developed, CPI had been greater than IPD. In the 1990’s, the CPI increased by 31.8 percent while the IPD increased by 29.3 percent. Anyone selecting the IPD as a growth index would have expected increases below CPI.

The opposite has been true in the 2000’s. Most recently, in 2006 CPI was 3.2 percent and IPD was 5.4 percent.

We don’t have a crystal ball. When we look back in 2010 or 2020, we’re not sure which will prove to be greater. We’ve consulted with top staff at the Economic Policy Institute, and they don’t know either. The critical factor is not which index we use for Thornton, but that we pick one and stick with it.

Removal of the Cap

This is a huge move on the Governor’s part. As long as a cap was recommended, we were considering a shift in Thornton policy which would have institutionalized erosion of the value, or buying power, of the funding from the State to the Locals.

Now that the cap is gone, for the moment the long-term value of Thornton is protected. The Governor had told us in our first meeting that he was focused on the sustainability and the commitment of Thornton; this move proves he meant it. He deserves credit for listening to us and working to improve the package.

MSTA is mobilizing our members to lobby for support of the Governor’s revenue package. We would ask each of the MCES members to organize your own constituents in support. MAESP will attempt to do the same.

Our message:

No Freeze, no Caps on Thornton. A vote for the Governor’s revenue package is a vote for public schools.

Through the Special Session, we are not getting into the details of the revenue package. We’re not taking positions on slots, whether the sales tax should be 6 or 6.25 percent, whether the income tax is progressive enough or exactly what the top rate should be. That’s stuff that will be worked out in the General Assembly, and being diverted by lawmakers into those debates will weaken our voice; will kill our message and along with it our effectiveness.

No Freeze, no Caps on Thornton. A vote for the Governor’s revenue package is a vote for public schools.

We are intending to testify on Tuesday at the 1:00 hearing on Thornton funding and encourage each of you to do the same. We will work on bringing local leaders in for the hearing. We encourage you to reach out and mobilize your members and partners to ramp up the activity.

We’ll keep you posted of any further developments.


2006 LEGISLATIVE SESSION SUMMARY

Jim Dryden, Executive Director

This initial summary just addresses the Pension Enhancement Legislation which we feel is the issue of greatest interest.  Although at times the outcome did not look promising, in the end most legislators did not want to face re-election having failed to act on this issue so important to so many constituents.   An extensive Legislative Summary follows this extract. 

Teachers' Pensions      

Pension Benefits Increase

MAESP placed a high priority on supporting legislation to increase the level of benefits provided to Maryland's retired school system employees. A key feature of this year's legislative deliberations on pensions, in general, was the consensus that not only teachers and other school system employees, but also all state employees, deserved a much better pension system. Therefore, the legislation included increased pension benefits and employee contributions for all members of the Teachers' Pension System and the Employee's Pension System. MAESP participated in a coalition, "The Coalition for Pension Fairness", that included MASSP, MSTA, MABE, AFSCME, SEIU, PSSAM, ESMEC, the retired teachers association, and others.

A significant facet of the legislative debate surrounding teachers' pensions focused on whether to provide retroactivity with regard to the application of the increased state multiplier. The cost of "full" retroactivity to the first year of employment would have been nearly $500 million. For much of session, the House and Senate appeared to have opposing perspectives on the question of retroactivity and other components of the bill. Fortunately, the General Assembly ultimately agreed to compromise, and passed identical bills on the last day of session (HB 1737/SB 1019). The legislation accomplishes the goal of significantly improves the future standing of Maryland's pension system relative to other states; and should serve as a meaningful recruitment and retention tool for many years. The legislation holds the state's increased obligation to under $150 million, phases in increased employee contributions, and provides the added benefit of retroactivity extending back to 1998. The bill takes effect July 1, 2006.

The key provisions of the bill include:

    .  An increased 1.8% benefit multiplier retroactive to July 1, 1998. (replaces current 1.4% multiplier)

    .  An increased 5% employee contribution phased in over 3 years. (increases the current 2% to 3%, 4%, and 5%)

    .  The option for Participating Governmental Units (PGUs), [School Systems] to participate in the enhanced benefit through June 30, 2007.

    .  A requirement that the Joint Committee on Pensions perform a peer study of other large public state pension systems every five years.

Contribution Rate

The contribution rate of a member who is subject to the alternate contributory pension selection under Part III is:

    .  3% of the member's earnable compensation received from July 1, 2006 to June 30,  2007, both inclusive;

  • 4% of the member's earnable compensation received from July 1, 2007 to June 30,  

    2008, both inclusive; and

  • 5% of the member's earnable compensation received on or after July 1, 2008.

Cost

As a result of Senate Bill 1019/House Bill 1737, the Department of legislative Services projects that total State pension liabilities over the next 25 years will increase by $1.8 billion. With the State responsible for paying the full employer share of that liability for all teachers and State employees, State pension contributions increase by $120.4 million in fiscal 2008 and are expected to grow by 4 percent annually thereafter. Of that amount, $104.6 million (87 percent) is expected to be from general funds, with the remainder estimated to be equally divided between special and federal funds. TPS enhancements account for 68 percent of the total cost of the bills, while EPS enhancements are responsible for the remaining 32 percent. The combined pension liabilities for local governments that opt for the enhanced benefit could increase by $376 million, assuming that all eligible local governments choose to participate. There is no additional cost to the State for local governments that participate in the enhanced benefit for their employees.

Effective Date

The enhanced benefits included in this legislation apply to active members of the Employees' and Teachers' Pension System and to members of the Employees' and Teachers' Retirement Systems who are in the bifurcated plan who are active members as of June 30, 2006. Therefore, employees already in the process of retiring may choose to defer their retirement date until July 1, 2006 or later to take advantage of the enhancements.


This is very detailed report on the 2006 Maryland Legislative Session.   It is a 25½ page report.  Probably more information than most principals need or desire.  I provide it for those with sufficient time and interest.

The 2006 session saw the introduction of 1,749 House bills and 1,107 Senate bills for a total of 2,856. By midnight on sine die, April 10, the General Assembly had passed 823 bills and five joint resolutions. MAESP tracked approximately 250 bills relating to K-12 public education. The following summary reviews MAESP's top legislative priorities for the 2006 legislative session, outlines the key provisions of selected bills, and the outcomes of all pertinent bills.

MAESP's 2006 Legislative Priorities

MAESP's top priorities for the 2006 legislative session included:

Teachers' Pensions      

Pension Benefits Increase

MABE placed a high priority on supporting legislation to increase the level of benefits provided to Maryland's retired school system employees. A key feature of this year's legislative deliberations on pensions, in general, was the consensus that not only teachers and other school system employees, but also all state employees, deserved a much better pension system. Therefore, the legislation included increased pension benefits and employee contributions for all members of the Teachers' Pension System and the Employee's Pension System. MABE participated in a coalition, "The Coalition for Pension Fairness", that included MSTA, AFSCME, SEIU, PSSAM, ESMEC, the retired teachers association, the associations of elementary and secondary school principals, and others.

A significant facet of the legislative debate surrounding teachers' pensions focused on whether to provide retroactivity with regard to the application of the increased state multiplier. The cost of "full" retroactivity to the first year of employment would have been nearly $500 million. For much of session, the House and Senate appeared to have opposing perspectives on the question of retroactivity and other components of the bill. Fortunately, the General Assembly ultimately agreed to compromise, and passed identical bills on the last day of session (HB 1737/SB 1019). The legislation accomplishes the goal of significantly improves the future standing of Maryland's pension system relative to other states; and should serve as a meaningful recruitment and retention tool for many years. The legislation holds the state's increased obligation to under $150 million, phases in increased employee contributions, and provides the added benefit of retroactivity extending back to 1998. The bill takes effect July 1, 2006.

The key provisions of the bill include:

.  An increased 1.8% benefit multiplier retroactive to July 1, 1998. (replaces current  1.4% multiplier)

.  An increased 5% employee contribution phased in over 3 years. (increases the  current 2% to 3%, 4%, and 5%)

.  The option for Participating Governmental Units (PGUs) to participate in the enhanced  benefit through June 30, 2007.

.   A requirement that the Joint Committee on Pensions perform a peer study of other  large public state pension systems every five years.

Contribution Rate

The contribution rate of a member who is subject to the alternate contributory pension selection under Part III is:

.  3% of the member's earnable compensation received from July 1, 2006 to June 30,  2007, both inclusive;

  • 4% of the member's earnable compensation received from July 1, 2007 to June 30,  

2008, both inclusive; and

  • 5% of the member's earnable compensation received on or after July 1, 2008.

Cost

As a result of Senate Bill 1019/House Bill 1737, the Department of legislative Services projects that total State pension liabilities over the next 25 years will increase by $1.8 billion. With the State responsible for paying the full employer share of that liability for all teachers and State employees, State pension contributions increase by $120.4 million in fiscal 2008 and are expected to grow by 4 percent annually thereafter. Of that amount, $104.6 million (87 percent) is expected to be from general funds, with the remainder estimated to be equally divided between special and federal funds. TPS enhancements account for 68 percent of the total cost of the bills, while EPS enhancements are responsible for the remaining 32 percent. The combined pension liabilities for local governments that opt for the enhanced benefit could increase by $376 million, assuming that all eligible local governments choose to participate. There is no additional cost to the State for local governments that participate in the enhanced benefit for their employees.

Effective Date

The enhanced benefits included in this legislation apply to active members of the Employees' and Teachers' Pension System and to members of the Employees' and Teachers' Retirement Systems who are in the bifurcated plan who are active members as of June 30, 2006. Therefore, employees already in the process of retiring may choose to defer their retirement date until July 1, 2006 or later to take advantage of the enhancements.

Support for teachers' pension enhancement

MABE supported legislation to increase the level of benefits provided to Maryland's retired school system employees under the state's teacher pension system in a manner that strikes a balance between increased employee and State contributions. Maryland's teachers' pension system is one of the very worst in the nation, negatively impacting the recruitment and retention of high qualified teachers.

Outcome: Legislation passed to increase benefits from 38% to 54% based on 30 years of service, funded through increased State funding and increased employee contributions. (HB 1737/SB 1019) (see bill summary on pages 5-6)

Support for adequate state funding for school construction in FY 2007 and beyond

MAESP sought a $400 million state funding level for school construction and renovation projects for FY 2007 to provide the state's share of the more than $4 billion needed to address the school facility needs identified in the School Facilities Task Force report. MABE advocated achieving the $400 million target through general obligation bonds and PAYGO funds in order to optimize both the state's debt capacity and the significant FY 2007 budget surplus.

Outcome: The total allocation for school construction and renovation projects in FY 2007 is  $322 million. (SB 370) (see bill summary on pages 4-5)  

Support for full funding for the Bridge to Excellence Act

MABE greatly appreciates the committed support of the Governor and vast majority of legislators for the continued, funding of the Act in FY 2007 through FY 2008. MABE opposes efforts to reduce or delay the state's funding obligation under the Act, recognizing that major portions of the Act have been under-funded or eliminated since its passage in 2002. In this light, MABE strongly supported "full" funding for the Act, including the Geographic Cost of Education Index (GCEI). MABE has consistently advocated for the GCEI as an integral component of the "Thornton" Commission's recommendations and Bridge to Excellence Act and would significantly increase State aid to certain counties based on a cost index.

Outcome: Mandated funding increases are provided as required by the 2002 Bridge to Excellence Act (SB 110). However, GCEI legislation to mandate future funding for the GCEI failed to pass. (SB 4) (see bill summary on page 3)

Support for continued autonomy for the State and local boards of education to set education policy

MAESP always places a very high priority on preserving the current statutory framework which assigns the responsibility to adopt education policy to the state and local boards of education; boards which have consistently adopted policies that promote high standards for academic and fiscal accountability. During the 2006 session, MAESP opposed many legislative initiatives that would have had the effect of reducing local board authority or which create un-funded mandates.

Outcome: Mixed - bills were defeated that would have mandated increased physical education (SB 611), student health screenings (SB 329), student drug testing (SB 756), and payment of retiree health care benefits (SB 427/SB 428); bills passed mandating defibrillators in high schools (HB 1200), school system payment of audiologist and speech therapist licensing fees (SB 600), and further state encroachment into areas such as the calculation of graduation rates (SB 59/HB 71) and conditions that trigger local adoption of the State's student behavior modification program (HB 1495).

Charter School Act clarifications

 In addition to these four top priorities, MAESP invested significant time and energy into the development of legislation to amend the Public Charter School Act of 2003. MAESP's primary goal in supporting this legislation was the adoption of a statutory definition of the amount of the commensurate charter school funding base a local school system must allocate to a charter school.

Outcome: The Senate rejected the bill by a one vote margin. This legislation was strongly opposed by the charter school community and state education officials. (SB 293) (See bill summary on page 15)






Operating Budget Highlights  

"Thornton" Bridge to Excellence Act Funding

The General Assembly passed a $29.4 billion operating budget bill (SB 110), that provides a record increase in State primary and secondary education aid for a third consecutive year. FY 2007 education aid will increase by $466 million over FY 2006 to nearly $4.5 billion, an increase of 11.6 percent. This increase follows increases of approximately $380 million in fiscal 2006 and $323 million in fiscal 2005. In total, education aid has increased by $1.6 billion from fiscal 2002 to 2007, reflecting an average annual growth rate of 9.2 percent from the year before the Bridge to Excellence legislation passed to the upcoming fiscal year. Bridge to Excellence funding, including foundation aid and special needs categories, will increase by $401 million in fiscal 2007, while other education aid programs, including libraries, will realize increases of $65 million.

An increase of approximately $500 million is projected for fiscal 2008, the final year of the Bridge to Excellence Act's phase-in. After fiscal 2008, with no other changes to the funding formula, annual increases in State education aid will be driven by inflation and changes in enrolment. It is important to remember that the Bridge to Excellence Act signifies more than mandated per pupil funding increases. These increases are founded on a "standards-based" funding system - and Maryland's educational standards are radically different than in 2002. The Bridge to Excellence Act anticipated these changes and calls for an updated adequacy study to be completed by 2008.

Although the largest dollar increase is in the foundation program, there are larger percentage increases in funding for the special needs programs - the compensatory education, special education, and limited English proficiency formulas - and the guaranteed tax base formula. The special needs programs provide additional State support based on enrolments of students with greater needs, and the guaranteed tax base program provides State aid to 10 school systems located in jurisdictions with low wealth. The increases for these programs illustrate the Bridge to Excellence objective of enhancing aid for lower wealth jurisdictions and school systems with larger populations of at-risk students.

          Source: Department of Legislative Services 90-Day Report

What's Next?

The Bridge to Excellence Act mandates that MSDE conduct a study (through an outside contractor) to "evaluate the effect of increased state aid for education on student and school performance in each local school system." MSDE must submit an initial report on the results of the evaluation to the Governor and General Assembly on or before December 31, 2006. The final report is due by December 31, 2008.

The MSDE report must include the following:

  • a detailed description of how local school systems are using state education aid; a comparison of school systems that show significant
  • improvements in student and school performance to school systems that do not show significant improvements in student and school performance;
  • a comparison of school systems that show significant improvements in student and school performance to school systems that do not show significant improvements in student and school
  • an assessment of the extent to which county boards are successful in implementing the comprehensive master plans required by § 5-401 of this subtitle;
  • an analysis of the amount of funding that local governments provide for education each year;
  • a list of programs or factors that consistently produce positive results for students, schools, and school systems; and
  • any other information that the State Superintendent determines to be relevant to the evaluation of student and school


School Construction  

School Construction & Renovation Funding

The capital budget of 2006, Senate Bill 370 (Ch. 46) contains $322.7 million for public school construction in fiscal 2007, including $43.4 million added to the Governor's proposal by the General Assembly. This is the highest level of funding for public school construction since the program began in 1971. For the second consecutive year, the level of public school construction funding has met the goal set in the Public School Facilities Act of 2004. The Act's funding goal of $3.85 billion over eight years ($2.0 billion paid by the State and $1.85 billion paid by local governments under the State-local shared cost formula) reflects the amount needed to address deficiencies in facilities identified in 2003 by the Task Force to Study Public School Facilities. To meet the funding goal, the State must spend $250 million each year through fiscal 2013. In 2005, school boards and county governments, through MABE, Maryland Association of Boards of Education, and the Maryland Association of Counties (MACo), advocated for a significant increase above the $250 million amount to reflect the dramatically increased construction costs resulting from rising steel prices and the unanticipated effects of Hurricane Katrina.  Therefore MABE and MACo sought $400 million.

The state-wide demands for new construction and renovation projects continues to climb, as county governments sought a total of $644.4 million in State funding for "ready to go" A or B list projects. The General Assembly funded on average 71 percent of those projects. To be eligible for funding, projects must be designated as A (funded) or B (ready to go) on the Public School Construction Program's ABC List. On January 18, 2006, the Board of Public Works approved $210 million for projects recommended by the Interagency Committee on School Construction (IAC). IAC revised upward its earlier recommendation of $129 million when the Governor increased the initial proposal for school construction funding. The General Assembly exercised its authority to distribute the remaining funding and, unlike the operating budget, the General Assembly may increase the capital budget above the amount submitted by the Governor. The General Assembly allocated a total of $96 million for eligible projects in 12 jurisdictions, which supplemented the Board of Public Works' list of approved projects. Under the capital budget language, IAC will allocate 100 percent of the additional funds for specific eligible projects in the counties in local priority order.

Process Improvements

The FY 2007 capital budget includes a provision that gives counties options, if allocated funds cannot be used for an eligible project, to (1) use the funds for another eligible project; (2) revert the funds to the contingency fund for a county project in the future; or (3) use the funds for a project eligible under the Aging Schools Program (subject to the same local match required for school construction projects).

Aging Schools Program

The General Assembly increased Funding for the Aging Schools Program by $3.7 million in PAYGO funds. Projects receiving grants from the new funds are subject to the local participation requirements that apply to other school construction projects. Other funds for the Aging Schools Program include $9.9 million in IAC's operating budget and $1.6 million that was transferred from the capital budget to PAYGO. The Aging Schools Program was also addressed in other legislation. Beginning in fiscal 2008, Senate Bill 432/House Bill 705 (both passed) require the $10.4 million in statutory State grants for the program to be adjusted each year for inflation as determined by the Consumer Price Index (CPI). By fiscal 2011, compounding inflation should add an estimated $1.2 million to the grants.




Source: Department of Legislative Services 90-Day Report




Baltimore City Schools Restructuring Put on Hold

MAESP did not play an active role in this legislation.

On March 29, 2006, the State Board of Education voted to require significant changes to the governance structures of seven middle schools in Baltimore City, including conversion to charter schools under the control of a third party, and to have a third party manage four high schools in the city under the direction of MSDE. According to the timetable established by the State Board, the new governance structures were to be implemented for the 2007-2008 school year. MABE responded quickly through a letter to the State Board of Education outlining concerns that focused on the Association's concerns on behalf of all local boards of education regarding the process the State board employed to make, and communicate, its decision. MABE's primary goal is to pursue assurances of better communication between the State Board and all local school systems regarding future school improvement decisions, recognizing the federal No Child Left Behind Act's school improvement sanctions may potentially impact many more school systems in the near future. 

The General Assembly took immediate legislative action to prevent the State board from taking over schools in Baltimore City (HB 1215). House Bill 1215 (Chapter 59) places a one-year moratorium on State-imposed school restructuring in Baltimore City. Specifically, the State Board of Education and the State Superintendent of Schools are prohibited from imposing a major restructuring of the governance structure of a public school in Baltimore City or removing a public school from the direct control of the Baltimore City Board of School Commissioners. The prohibition applies retroactively to any action in furtherance of restructuring that was taken by the State board and the State superintendent on or after March 28, 2006. The prohibition terminates May 30, 2007.

Governor Ehrlich vetoed the bill, and his veto was promptly overridden by both the House and Senate. In response to the bill's passage, the U.S. Department of Education informed Maryland that the  enactment of House Bill 1215 could jeopardize $171 million in federal Title I funds due to non-compliance with NCLB. The majority of this funding, an estimated $163 million, passes through the State budget and is allocated to local school systems. The Attorney General of Maryland has advised that the bill only restricts the State's ability to impose certain restructuring options on the Baltimore City Public School System and does not preclude the school system from implementing any restructuring on its own initiative. The Attorney General has concluded, therefore, that the bill will have no impact on federal funds.

School Health & Safety 

Defibrillators in Schools

MAESP's and MABE's opposition notwithstanding, legislation passed which will require each local board of education to develop and implement an automated external defibrillator (AED) program for each of its high schools. (HB 1200/SB 249). The bill takes effect July 1, 2006.

Specifically, the legislation requires the following:

  • Each county board shall develop and implement an automated external defibrillator program that meets the requirements of § 13-517 of this article for each high school in the county; and
  • Each county program must ensure that:
    • "An automated external defibrillator is provided on-site"; and
    • "An individual trained in the operation and use of an automated external defibrillator is present at all school-sponsored athletic events."

What is an "automated external defibrillator (AED)"?

Defibrillator - (Webster's Dictionary)

An electronic device that applies an electric shock to restore the rhythm of a fibrillating heart.

Defibrillator - (Maryland Statute - §13-517(a) of the Education Article)

(3)  "Automated external defibrillator (AED)" means a medical heart monitor and defibrillator    device that:

                  (i) Is cleared for market by the federal Food and Drug Administration;

                  (ii)  Recognizes the presence or absence of ventricular fibrillation or rapid ventricular  tachycardia;

                  (iii)  Determines, without intervention by an operator, whether defibrillation should be  performed;

                  (iv)  On determining that defibrillation should be performed, automatically charges; and

                  (v)      1. Requires operator intervention to deliver the electrical impulse; or

                            2. Automatically continues with delivery of electrical impulse.

The new law requires the Maryland State Department of Education (MSDE) to adopt regulations that: (1) establish guidelines for periodic inspections and maintenance of AEDs; and (2) assist local boards in implementing AED programs. MSDE must adopt the regulations in consultation with the Department of Health and Mental Hygiene (DHMH), the Maryland State School Health Council (MSSHC), and the Maryland Institute for Emergency Medical Services Systems (MIEMSS).

AED Cost Concerns?

Clearly this AED legislation poses an un-funded mandate that intrudes on the prerogative of local boards and superintendents to allocate scarce resources - a fiscal reality even in the area of school health and safety. Many school systems have already implemented AED programs in all high schools, including: Anne Arundel, Baltimore, Caroline, Dorchester, Garrett, Talbot, Wicomico, and Worcester counties. Inquiries regarding cost and other implementation issues may be directed to the appropriate staff in these school systems. In addition, MABE anticipates providing information and resources to school systems to facilitate compliance with this significant new requirement.

AED Liability Concerns?

§13-517(m) of the Education Article answers some questions:

      "(1)  In addition to any other immunities available under statutory or common law, an authorized facility is not civilly liable for any act or omission in the provision of automated external defibrillation if the authorized facility:

(i) Has satisfied the requirements for making automated external defibrillation available under this section; and

            (ii)   Possesses a valid certificate at the time of the act or omission.

(2)  In addition to any other immunities available under statutory or common law, the sponsoring physician of an authorized facility is not civilly liable for any act or omission in the provision of automated external defibrillation.

 (3)  In addition to any other immunities available under statutory or common law, an individual is not civilly liable for any act or omission if:

         (i)  The individual is acting in good faith while rendering automated external defibrillation to a person who is a victim or reasonably believed by the individual to be a victim of a sudden cardiac arrest;

(ii) The assistance or aid is provided in a reasonably prudent manner;

               (iii) The automated external defibrillation is provided without fee or other compensation; and

              (iv)   1. The act or omission occurs while the individual is providing automated external defibrillation in accordance with the requirements of this section at an authorized facility;

                     2. The individual has successfully completed an AED training course and is authorized to provide automated external defibrillation; or

                        3. The individual is using an automated external defibrillator obtained by a prescription issued by a physician.

(4) The immunities in this subsection are not available if the conduct of the authorized facility amounts to gross negligence, willful or wanton misconduct, or intentionally tortious conduct.

(5) This subsection does not affect, and may not be construed as affecting, any immunities from civil or criminal liability or defenses established by any other provision of the Code or by common law to which an authorized facility or an individual may be entitled."

  (Note: Also see Maryland's Good Samaritan Statute - §5-603 of the Courts and Judicial Proceedings    Article.)

What is MIEMMS?

MIEMSS is the state agency that implements the State's AED program and authorizes facilities meeting the necessary requirements to participate in the program. In 1999, a new law went into effect in Maryland, that permits a business, organization, association, etc. ("authorized facility"), that meets certain requirements, to set up a program whereby someone suffering a cardiac arrest on the authorized facility's premises can receive treatment with an automated external defibrillator (AED) on-site by appropriately trained non-medical personnel before the arrival of emergency medical services personnel. An authorized facility may be a single organization located at one place or a business that operates at several locations (sites).  For more information, go to the MIEMMS AED program website: http://miemss.umaryland.edu /AED.htm


School Safety Task Force 

This bill establishes the Task Force on School Safety to evaluate a variety of methods and strategies that could be implemented to improve school safety and make recommendations regarding the use of the strategies. MABE must designate two representatives for the task force. A final report is due by December 1, 2007. The Maryland State Department of Education (MSDE) must provide staff for the task force. The bill takes effect July 1, 2006 and terminates December 31, 2007. (SB 146, not yet signed by the Governor.) MAESP has not been asked to provide representation.

Open Meetings 

Don't say "executive function", say "administrative function"

Two competing bills were introduced to revise the State's Open Meeting Act and a compromise was struck that appears to have arrived at a reasonable adjustment to the Act intended to clarify the longstanding confusion regarding the distinction between meetings in "executive session" and meetings to address "executive functions." The bill takes effect October 1, 2006 if enacted. (HB 698/SB 406, not yet signed by the Governor)

The compromise legislation (HB 698/SB 406) is relatively narrow in scope, repealing the term "executive function" and replacing it with the term "administrative function." In addition, the bill imposes a minimal reporting requirement. If a public body recesses an open session to carry out an administrative function in a meeting that is not open to the public, the minutes for the next meeting must include:

(1) a statement of the date, time, place, and persons present at the administrative function meeting; and

(2) a phrase or sentence identifying the subject matter discussed at that meeting.

Procurement 

New small bid threshold raised from $15,000 to $25,000

Legislation sought by local boards and superintendents and MSDE for several legislative sessions finally passed. The new law increases the maximum amount that local school systems may procure without advertising to $25,000, the current threshold for "small procurements" in State law. If the statutory definition of a small procurement changes, the amount that local school systems may procure without advertising would be altered concurrently. The bill takes effect July 1, 2006. (HB 569, signed by the Governor, Chapter 95)

Under current law, if the cost of any school building, improvement, supply, or equipment is more than $15,000, a local board of education must advertise for bids in a medium accessible to the general public at least two weeks before the bids are to be filed. State procurement law defines a "small procurement" as a procurement for which $25,000 or less is spent. Small procurements of $10,000 to $25,000 must use written and published solicitations, although oral solicitations may be used as an addition to written and published solicitations. The most favorable bid price or most advantageous offer must be accepted. The Board of Public Works must review the small procurement amount at least every three years and recommend any changes in the amount to the General Assembly.

Graduation Rate Calculation 

Legislation passed that requires the Maryland State Department of Education (MSDE) and local boards of education to collect and maintain data to calculate a graduation rate for each graduating class (HB 71/SB 59). Graduation rates must be calculated using a methodology that tracks cohorts of students as they enter ninth grade and measures the percentage who graduate with a regular high school diploma within four years. The bill takes effect July 1, 2006 (*not yet signed by the Governor).

By September 1, 2011 and each year thereafter, local school systems and MSDE must report graduation rates as calculated using the new methodology.  Rates must be reported in the aggregate and disaggregated by five race/ethnicity groups and three at-risk categories. The graduation rate formula, including permissible adjustments consistent with the federal No Child Left Behind Act (NCLB), must be used as the additional high school indicator to determine whether a high school has made adequate yearly progress (AYP) under NCLB. Students who graduate on time with GEDs or other certificates not aligned with State standards are not included in the formula calculation.

Prior to 2011, unless MSDE implements the graduation rate formula earlier than is required by the bill, local boards and MSDE must report a less precise "interim graduation rate" by September 1 of each year.  In 2006, 2007, 2008, 2009, and 2010, the interim graduation rate must be used as the additional high school indicator to determine whether a high school makes AYP under NCLB.  MSDE must report annually on the implementation of the graduation rate methodology, statistical analyses and data verification processes developed for the methodology, and discrepancies discovered in the analysis of graduation rate data.  A report on the interim graduation rate calculation is due from MSDE by August 1, 2006.

MSDE must implement training for personnel responsible for collecting, maintaining, analyzing, and reporting gradation data and must provide technical support to the local boards of education with respect to these efforts. MSDE also must establish a standard process for verifying graduation rate data and must serve as the central repository for the data.  Finally, a public awareness campaign about the need for accurate graduation data must be implemented by MSDE.  Local boards of education and MSDE may develop additional indicators regarding alternative high school completions. MSDE must ensure that that the indicators are comparable for all schools and school systems. 

Special Education

An MSDE departmental bill (SB 107) passed. The bill was intended to update Maryland statute in accordance the 2004 reauthorization of the Individuals with Disabilities Education Act (IDEA).

The bill:

.  Clarifies that surgically implanted medical devices are not included in the services that must be provided to children with disabilities;

.  Adds unaccompanied homeless children to the children for whom parent surrogates must be appointed to represent them in the educational decision making process;

.  Requires local superintendents of schools to ensure that qualified parent surrogates are appointed for children with disabilities when they are needed;

.  Requires local superintendents of schools to notify the State Superintendent of Schools in writing of the termination of previously appointed parent surrogates and to submit the names and qualifications of new parent surrogates;

.  Establishes a process for resolution sessions that can be used to settle disputes about the identification, evaluation, or educational placements of children with disabilities; and

.  Makes other non-substantive clarifying changes to laws relating to children with disabilities.

Perhaps most importantly, the bill changes from 180 to 120 the number of calendar days following the issuance of the hearing decision, that a party to the hearing has to file an appeal from a final decision of the Office of Administrative Hearings to the federal District Court for Maryland or to the circuit court for the county in which the child resides.  The bill takes effect July 1, 2006.

Unresolved Issues

Charter Schools

MAESP advocated unsuccessfully for legislation to revise and clarify the Public Charter School Act of 2003 (SB 293). The thrust of the legislation was two-fold; to define "commensurate funding" for charter schools, as required in the Act, and to clearly prohibit the application of any waiver to the provisions of the Act itself. Unfortunately, the legislation failed to pass the full Senate due to strong opposition from all Republican Senators and several Democrats representing districts in which charter school are located. By a 1 vote margin, 23 to 24, the Senate rejected the charter school bill developed by Senator Paul Pinsky, amended to reflect the concerns of local boards and superintendents, and endorsed by both the Senate Education and Budget and Taxation Committees.

The key components of the bill would have:

. Defined "commensurate funding" as 85% of the local per pupil expenditures from  the unrestricted current expense fund, minus expenditures for special education,  student transportation,  contingencies, and reserve funds;

.  Clarified that a charter school may not seek a waiver from the laws governing public  charter schools; and

. Set a timeline and deadline requiring that charter school applications must be  submitted by August 1, and that a local board of education must review each  application and render a decision by December 1.

Failure to enact this legislation maintains the rather murky status quo. The State Board indicated in January of this year that it intended to "wait and see" how the legislature addressed the funding issue. At the same time, the Court of Special Appeals will eventually hear MSDE's appeal from the Prince George's circuit court decision that found the State Board's funding formula to be unreasonable. The conclusion of the Prince George's County circuit court in it's 2005 decision points to the responsibility of local boards of education to craft charter agreements that provide funding that is "commensurate with the amount disbursed to other public schools." The court concluded:

"Commensurate funding is a matter of statutory interpretation; however, neither the definition of "commensurate" nor the methodology for determining a funding formula are set forth in the Public Charter School Act. Rather, the Act makes the local/County Board, who is in the appropriate position to ascertain eligibility requirements for various local and federal funds and grants, the "primary public chartering authority" for the consideration of the charter school application and for determining the disbursement of funding."

Geographic Cost of Education Index

Legislation failed once again in 2006 to mandate future funding for the Geographic Cost of Education Index (GCEI). The GCEI is an original, yet never funded, component of the "Thornton" Commission's recommendations and essential to achieving the Bridge to Excellence Act's mandate for adequate funding for all of Maryland's students by FY 2008. The "Thornton" Commission on Education Finance, Equity, and Excellence recommended in its final report that "education funding should be adjusted to reflect regional differences in the cost of education that are due to factors outside the control of the local jurisdictions." Therefore, the Bridge to Excellence Act included the GCEI funding component to provide additional State education aid to certain "high cost" jurisdictions.

If funded, the index as adopted in statute in 2004 would provide nearly $140 million per year in additional foundation ADI to 13 school systems. Unfortunately, despite the adoption of the GCEI distribution formula in statute in 2004, funding has remained discretionary, and no funding for the GCEI has been included in the FY 2005, FY 2006, or FY 2007 State budgets. The Governor's decision to reject the MSDE/State Board budget request for more than $73 million for the GCEI in FY 2007 presented a major challenge for the General Assembly in addressing this issue this session. The legislative response was to mandate future funding beginning in either FY 2008 or 2009 (SB 4, SB 196, HB 242). SB 576 went so far as to propose funding the GCEI with dedicated revenue from a significant increase in State tax rates for alcoholic beverages.

MAESP continues to believe that legislation is needed to ensure that Maryland students benefit from full GCEI funding and that this funding will be essential to achieving adequate per pupil funding levels as defined by the Bridge to Excellence Act. 

County Wealth Formula

Legislation was introduced early in session, then withdrawn by the sponsor (HB 1055), and then introduced again much later in session by a different sponsor (HB 1742), which would have altered the definition of "net taxable income" in the calculation of State aid for education to include returns filed through November 1 after the calendar year for which net taxable income is to be determined; applying the Act to the calculation of payments of State aid for education for fiscal years beginning after June 30, 2007.

Sex Offenders & Schools

The Senate and House failed to agree on legislation (SB 1/HB 4) that would have increased a wide variety of penalties against sex offenders. Unfortunately, this legislation included provisions supported by MAESP which would have added new protections against registered sex offenders entering school property and would have required notice to school systems of changes in address for registered sex offenders. These issues are sure to be revisited in the 2007 session.

Bill Signings, Vetoes, etc.

The Governor may sign, veto, or allow passed bills to become law without his signature. A complete summary of all bills signed or vetoed is available on the General Assembly's website at http://www.mlis.state.md.us /2005rs/signings/signed.htm #0510 . The following list of bills passed indicates those bills already signed and/or enacted without the governor's signature, and includes the assigned "Chapter Law" numbers.

Synopses & outcomes for all education bills in the 2006 legislative session

Passed Bills

HB 36/SB 741 - Education - Task Force to Study Raising the Compulsory Public School Attendance Age to 18 Establishing the Task Force to Study Raising the Compulsory Public School Attendance Age to 18; providing for the membership and staffing of the Task Force; specifying the purposes and goals of the Task Force; requiring the Task Force to report to the Governor and the General Assembly by December 1, 2007.

HB 71/SB 59 - Public Schools - Graduation Rate Formula - Collecting, Maintaining, Analyzing, and Reporting  Requiring county boards of education to collect, maintain, and analyze graduation rates by dividing the number of students who graduate on time by the number of students in a four-year cohort; requiring county boards to report these rates in the aggregate and disaggregated by specified subgroups; requiring county boards to report graduation rates to the public and to the State Department of Education; requiring the Department to compile graduation rates and calculate a graduation rate for the State; etc. (MABE Opposed)

HB 129/SB 373 - Education - Adult External High School Program Providing continued funding for the Adult External High School Program; repealing specified evaluation and reporting requirements; and removing the termination date for the Program. (SB 373 became law without Governor's signature per Maryland Constitution - Chapter 47) (MABE Supported)

HB 168 - Children's Trust Fund   Establishes a "Children's Trust Fund" to be used for the Child Abuse and Neglect Centers of Excellence Initiative.  The bill takes effect July 1, 2006 if enacted. (Signed by the Governor, Chapter 80)

HB 133/SB 367 - Education - Maryland Infants and Toddlers Program - Grants - Funding Requiring the Governor to include at least a specified appropriation in the annual budget for the Maryland Infants and Toddlers Program; etc. (MABE Supported)

HB 206 - Education - Juvenile Services Alternative Education Program Repealing the Juvenile Services Alternative Education Program and the Juvenile Services Alternative Education Program Advisory Board.

HB 210/SB 243 - General Assembly - Office of Legislative Audits - Authorized Representatives and Authorized Work This bill authorizes the Legislative Auditor, with the concurrence of the Executive Director of the Department of Legislative Services (DLS), to contract with consultants to assist OLA in performing its authorized duties. The bill establishes a process for the Joint Audit Committee (JAC) to review a local school system's response to audit recommendations.  Specifically, OLA must review the local school system's response and advise JAC when that response is not satisfactory. DLS's Executive Director or JAC may direct OLA to undertake a review to determine actions taken by the system to implement audit recommendations. JAC may make recommendations, based on a system audit, to the Governor, the State Superintendent, the local school governing board, or local school officials.  The bill provides that OLA's access to records and confidentiality requirements apply to all authorized work and authorized representatives. The bill takes effect October 1, 2006.

HB 301/SB 294 - Children, Youth, and Family Services - Local Management Boards, State Coordinating Council, and Local Coordinating Councils - Services for Children With Special Needs  Establishing a local management board and local coordinating council in each county; establishing the State Coordinating Council for children; establishing the duties and composition of the local management board, State Coordinating Council, and local coordinating council; requiring a public agency to disclose specified information and records to another public agency or the Office for Children; requiring the Maryland Association of Local Management Board Directors to submit a report to committees of the General Assembly; etc.


HB 353 - Teachers and School Administrators - Sexual Contact with Students - Prohibition The measure would prohibit a person in a position of authority from engaging in a sexual act, sexual contact, or vaginal intercourse with a minor who, at the time of the sexual act or sexual contact, is a student enrolled at a school, where the person in a position of authority is employed.  The measure defines a person in a position of authority to mean a person who: (1) is a least 21 years old; (2) is employed as a full-time permanent employee by a public or private preschool, elementary school, or secondary school; and (3) because of the person's position or occupation, exercises supervision over a minor who attends the school; and includes a principal, vice principal, teacher, or school counselor at a public or private preschool, elementary school, or secondary school.  The bill takes effect October 1, 2006 if enacted. (MABE Supported)

HB 378/SB 291 - Crimes - Restitution - Victims and Payments Expanding the list of entities to which restitution can be ordered to be paid for the commission of offenses