"Draft Only - Approval Pending"

 

M I N U T E S

Joint Education Interim Committee

 

Capitol Building                                                                                                           December 16 and 17, 2002

Room 302                                                                                                                              Cheyenne, Wyoming

 

 

PRESENT:     Senator Irene Devin & Representative Bill Stafford, Cochairmen;

 

Senators Keith Goodenough, Robert Peck, Charles K. Scott and Kathryn Sessions;

 

Representatives Tom Lockhart, Del McOmie, David Miller, Ann Robinson, Doug Samuelson, Jim “Bubba” Shivler; and Marlene Simons

 

Absent Members:  Representatives McGraw

 

Other Legislators in Attendance: Senator Jim Anderson, Representative Jeff Wasserburger, and Representative-elect Liz Gentile

 

            Legislative Service Office: Mary Byrnes, Dave Nelson, & D. Jason Raymond.

 

Others Present: See attached Appendix A and J.

 

AGENDA:      Please see attached Appendix B.

 

*  *  *  *  *

 

Monday, September 23, 2002

 

Senator Irene Devin, Interim Committee Cochairman, called the Committee to order at 8:35 a.m. on December 16, 2002.

 

 

NOTE:  Please reference the transcripts for all motions and verbatim discussion of all education issues referenced herein.  The transcripts are on file with the Legislative Service Office under Appendix C attached to this report.

 

 

Approval of minutes

 

Representative Stafford moved Committee approval of the minutes of the November 20 and 21, 20002, meeting.  Representative Lockhart seconded the motion and the motion carried.

 

 

 

Special Education

 

Dr. Thomas B. Parrish, American Institute for Research and Dr. Jim Smith, MAP, reviewed the study of special education expenditures and funding, the findings found by the study, and the study recommendation calling for a cost-based funding model based upon resource guidelines developed within the study.  Dr. Parrish explained to the Committee why the study did not recommend reimbursement of actual expenditures for special education, noting an incentive to identify children for special education programs and the current variation of special education services among the districts.  Dr. Parrish suggested that a cost-based model would provide for even service levels for students throughout the state.

 

Dr. Parrish also explained the study’s recommendation for regional cooperation to increase special education services and for more State Department of Education staff to monitor and provide assistance for the districts.  He also advocated the use of a two million dollar ($2,000,000.00) contingency fund.  The fund could be used in cases where identification rates were higher than the model predicted or a few students required high-cost services not provided for by the model.  He suggested that some sort of award evaluation be done and offered some options.  Committee members questioned and discussed the concept of regionalization and the travel demands that it would make on special education staff.  Senator Sessions questioned the use of averages in the study and whether that affected the accuracy of the findings.

 

Senator Scott asked about the variation in the percentage of children enrolled in special education among the districts.  Dr. Parrish identified actual variation in the true incidence of special education needs; local interpretations of special education criteria and subjective judgment can result in more or less children being enrolled.  Dr. Parrish said that, while the study found no clear relationship, there probably is some correlation between higher poverty rates and higher special education incidences.

 

Dr. Parrish then reviewed a four-page handout he prepared demonstrating what the district would receive under different special education funding models (See Appendix D).  Reviewing the handout, Committee members discussed district efforts identifying children needing special education and federal requirements that special education programs require “maintenance of effort”.  Reviewing the handout, Dr. Parrish noted that no district would see a reduction of actual expenditure, but some districts would experience a limit on their ability to increase the size of their special education programs.

 

Dr. Parrish stated that one advantage to the cost-base model approach was the ability to use funds without actually putting a child into special education.  The Committee discussed the possibility of federal funding to cover some special education costs. 

 

After a recess, Representative McOmie asked how were the percentages of special education students per school measured.  Dr. Parrish responded that data was collected through survey and was also taken from data provided by the State Education Department.  Chairman Devin then requested public comment.  Kathy Curew, Fremont County School District #21, stated that the reason a school in Fort Washakie was identified as having 28% of students as requiring special education was that it included students actually attending Lander High School.  When these students were deducted, then the actual number was 13.8%.

 

Lew Leahy, Weston County School District #1, spoke in support of the current 100% reimbursement system.  Mike Kouris, Fremont County School District #25, questioned the unusualness of an 11% yearly increase in children in special education.  He stated that if a cost-based model were used for special education, the school districts would not have enough funds and encourage the under-identification of special education children.  Brian Monteith, Park County School District #6, also spoke in support of continuing the current 100% reimbursement system.  Dal Curry, Natrona County School District #1 says that the number of special education students is remaining steady, but the severity of the cases is increasing.  He also said that 90% of the funds used in special education go to salary and benefits for personnel, and so cuts would be made in personnel.  Romona Casewood, Laramie School District #1, spoke in support of the current 100% reimbursement system citing the lack of funds and great expenses in special education. 

 

Senator Goodenough questioned Dr. Parrish on the discrepancy on the percentages of special education students in Fort Washakie.  Dr. Parrish responded that the problem was due to faulty data gathered by the State Department of Education.  He suggested that increasing staff to monitor special education programs could help eliminate these problems.  Representative McOmie asked about the phase-in of the cost-based system, which in the study went from a 12-year to 6-year, and then to a two-year phase-in.  Dr. Jim Smith responded that the Wyoming Supreme Court decisions prohibited the use of long phase-ins to lessen the impact on districts adversely affected.

 

Betty Carmen, a parent-advocate and parent of a special education child, advocated for the current 100% reimbursement system.  She disputed that any overuse of special education funds exist.

 

Remarks by State Superintendent Catchpole

 

Superintendent Catchpole addressed the Committee for the last time as State Superintendent of Public Instruction.  She briefly reviewed the events of the eight years of her tenure, and thanked the Committee for their work.  She then presented certificates of achievement to the Committee members.  Representative McGraw also appeared on the Committee for the last time.

 

Review of special education legislation

 

Mr. Nelson reviewed 03LSO313.w4, which would implement the cost-based model for special education, as recommended by the special education study.  Mr. Nelson explained that this legislation was similar in form to the vocational education legislation forwarded by the Committee at its last meeting.  The Committee discussed the impact of the federal No Child Left Behind Act on the legislation.  Senator Scott asked about the contingency fund in the legislation, particularly what would happen if applications would exceed the two million dollars ($2,000,000.00) in the fund.  Mr. Nelson explained that the amount would be pro rated among the applications.  Senator Scott asked about the methodology of the pro rating and the fiscal impact upon the districts.  Mr. Larry Biggio from the State Department of Education explained that under some scenarios funds overpaid to a school district would have to be reclaimed if pro ration occurred.  Senator Sessions expressed concern over putting special education into the cost-based model and the possibility that would result in litigation.

 

Mr. Nelson also reviewed 03LSO314.W3, which would continue the current 100% reimbursement system along with the development of guidelines by the State Department of Education.  Chairman Senator Devin explained that the legislation was required to continue the current system as it is set to expire.  The legislation also included an appropriation for the State Department of Education.  After a question on the need for an appropriation, Mary Kay Hill of the State Department of Education explained the need for state funds, as the program currently is limited in funds and authority and relies solely on federal funding.  Representative McOmie spoke against the strengthened oversight by the State Department.

 

Representative Stafford moved 03LSO313.w4 and Representative Lockhart seconded.  Senator Scott and Representative McOmie spoke against the bill, with Senator Scott requesting to propose a series of amendments.  Senator Scott moved to amend the bill to incorporate a sunset provision effective July 1, 2005.  Representative Miller seconded, and the motion carried.  Senator Scott then moved that the figure of two million dollars be removed from the contingency fund, and the nature of the fund changed to be open-ended.  Senator Goodenough seconded.  After discussion, the motion carried.  Senator Scott moved for additional language to be included in the bill and Senator Goodenough seconded.  After discussion, the motion carried.  Senator Scott then moved for additional language governing the grant of contingency funds and Senator Goodenough seconded.  After discussion, the motion carried.

 

The Committee then discussed the bill.  Senator Goodenough spoke against the bill.  Senator Scott spoke in favor of the bill as amended.  Representatives McOmie and Samuleson spoke against the bill.  Senator Sessions spoke against the idea that too many children were being identified as needing special education.  After question was called, a roll call vote was taken (see Appendix E):  Senator Goodenough: no; Senator Peck: no; Senator Scott: yes; Senator Sessions: no; Representative Lockhart: no; Representative McOmie: no; Representative Miller: no; Representative Robinson: no; Representative Samuelson: no; Representative Shivler: no; Representative Simons: no; Chairman Representative Stafford: yes; Chairman Senator Devin: yes.  Representative McGraw was excused.  10 noes, 3 ayes and one excused.  The bill failed.

 

The Committee then moved and took up 03LSO0314, which would continue the 100% reimbursement system.  Representative McOmie moved to include a sunset provision effective July 1, 2005.  Senator Goodenough seconded.  In discussion, Representative McOmie expressed concerns about the increased monitoring provided by the bill to the State Department.  The motion carried.  Senator Scott then moved to delete page 4, lines 2-8, which encompassed all of subsection (a) of section 6 and the balance of line 10 after (b), pertaining to the implementing of state guidelines by the State Department.  Senator Scott explained that he wanted to prevent the State Department from enforcing the guidelines against school districts.  Senator Peck seconded and the motion carried.

 

After question was called, a roll call vote was taken (see Appendix F):  Senator Goodenough: yes; Senator Peck: yes; Senator Scott: yes; Senator Sessions: yes; Representative Lockhart: yes; Representative McOmie: yes; Representative Miller: yes;  Representative Robinson: yes; Representative Samuelson: yes;  Representative Shivler: yes; and Representative Simons: yes, Chairman Representative Stafford: yes; Chairman Senator Devin: yes.  13 ayes, 0 noes and one excused.  Representative McGraw was excused.  The bill passed.

 

Regional Cost Adjustment/Wyoming cost of living index

 

Mr. Buck McVeigh, Department of Administration and Information-Economic Analysis, and Professor Rob Godby, University of Wyoming, presented a summary of their findings on the Regional Cost Adjustment.  They reviewed a handout presented to the Committee (See Appendix G).  Professor Godby explained that the cost of goods in an area and its amenities affect district salaries.  Currently the method used only considers the cost of goods.  While a full statistical study of the exact nature of salary determinants has not been done, Dr. Godby recommended a parabolic adjustment using the WCLI-starting salary adjustment.  Professor Godby then discussed 03LSO0315.w2, which would implement the parabolic regional cost adjustment.  Mr. Nelson then reviewed 03LSO0316.W2 that would make refinements to the Wyoming cost of living index.  After discussion, a roll call vote was taken on passing 03LSO0316.W2, and the Committee passed it without dissent.

 

Senator Devin moved 03LSO0315.W2 and Representative Lockhart seconded.  The Committee discussed the bill, which would increase the hold harmless provision.  Senator Devin objected to an increase that was intended to be temporary, and Senator Scott requested further information about the cost numbers.  Senator Devin moved to delete section 1 of the bill, and Senator Goodenough seconded.  The amendment would proceed with a further study to develop a measurement of the regional cost differences.  Senator Scott spoke against the motion.  Senator Sessions questioned Professor Godby on his expectations of a new study.  After discussion the motion carried.  Returning to the bill a roll call vote was taken and the bill passed (See Appendix I).

 

 

The Committee was adjourned at 4:00 pm.

 

 

 

Tuesday, December 17, 2002

 

Representative Bill Stafford, Interim Committee Cochairman, called the Committee to order at 8:05am on December 17, 2002.

 

 

School Finance Issues

 

Dr. Jim Smith, MAP, addressed the Committee on reading assessment, the classified salary adjustment, and the review of the spreadsheet used in the block grant.  Dr. Smith recommended that a minimum amount of $45,000.00 be guaranteed to a district if the amount for reading assessment provided by the cost-based block grant component is below that.  Senator Scott requested that a bill drafting instruction be made to staff that implements Dr. Smith’s recommendation.  The motion passed.

 

Dr. Smith then reported that the classified salary adjustment study is still in progress.  The data for the study has been collected, but is not ready to be analyzed and implemented.  Mr. Nelson explained that since the data is not ready to make the necessary computations to calculate the classified salary adjustment, the bill draft, 03LSO345 has been modified to delay implementation of the adjustment for one year.

 

On the subject of the comprehensive review of the spreadsheet that distributes the block grant, Dr. Smith reported that a series of changes to the spreadsheet has been made to make it more user-friendly.  Dr. Smith stressed that the changes made were cosmetic and not substantive. Dr. Smith presented a handout to the Committee that would provide instruction on the changes to the spreadsheet (See Appendix K).  Upon request of Chairman Senator Devin, Dr. Smith addressed the idea of changing the way hold harmless is calculated to a single hold harmless made at the end of the block grant calculation.

 

School Finance Legislation

 

Mr. Nelson reviewed 03LSO345 for the Committee.  He explained that the legislation contained a five-year recalculation, as required by the Wyoming Supreme Court decisions.  It also delays implementation of the classified salary adjustment for one year.  Section 2 of the bill draft provided for a single hold harmless provision.  Section 3 of the draft provided for a small school study.  Section 4 of the draft provided LSO with authority to adjust the dollar per ADM measurement as needed.  Responding to a question from Senator Devin, Dr. Smith said that in the small school study extensive site visits to small schools, and the collection of school-level data need to be made.  He also said that small school advisors are needed to help with prototypes.

 

Annette Bohling and Mary Kay Hill, State Department, spoke to the Committee about federal reading assessment programs and the State Department’s effort to apply for those funds.  Senator Scott requested a detailed explanation of Section 2 of the bill.  The Committee also discussed past funding issues concerning the small schools, the hold harmless provisions, and areas of 100% reimbursement.  Staff requested additional time to respond to Senator Scott’s request explaining section 2.  Chairman Senator Devin then requested a break in considering 03LSO345.

 

Department of Audit-School Finance Section

 

Mike Geesey, Pam Robinson, and Richard Cummings from the Department of Audit reported on their auditing of education issues.  They reported on staff hiring and training done.  They explained that they attended School Finance Data Advisory Committee meetings and the Data Facilitation Forum.  A report from the Department of Audit is expected at the end of January 2003.  They reported as major preliminary issues the lack of controls in the State Department of Education between approval and payment processes and in data verification.  They also reported that some detail information is only available at the local school district level.  A handout was provided to the Committee (See Appendix L).

 

 

Review of 03LSO345

 

After staff reported that it would be unable to provide the data figures requested by Senator Scott, Representative McOmie moved the bill.  The Committee discussion section 2, and Senator Scott moved that section 2 in the bill be deleted.  Representative McOmie seconded the motion.  The motion carried.

 

Chairman Devin then suggested that 03LSO314, 03LSO315, 03LSO241, 03LSO194, 03LSO153, and 03LSO154 be included in a single omnibus bill, along with two bills pertaining to vocational education.  Senator Scott suggested that vocational education not be included.  Senator Sessions moved to combine all the bills above – except the vocational education bills – into a single omnibus bill.  A motion to amend Senator Sessions’s motion to include the vocational bills was made, seconded, and passed, but failed when reconsidered by the Committee.  The Committee then voted and passed 03LSO345 by a roll call vote (See Appendix M).

 

 

School Level Data Collection Effort

 

Mr. Larry Biggio, State Department of Education, spoke to the Committee about the efforts to gather school level data.  Mr. Biggio reported that the effort to gather data was moving along well and the State Department will be able to provide the data in the time promised.  He provided a handout to the Committee (See Appendix P).

 

Responding to a question by Chairman Senator Devin, Scott Marion, State Department of Education, spoke about the format that data gathered under WYCAS would be reported to the public.  Mike Hamilton, State Department of Education, said that the information will be available on the State Department’s website.  The Committee discussed the reporting of information by the State Department of Education.  Mike Hamilton handed out the State Department’s annual report (See Appendix R)

 

 

Wyoming School Boards Association presentation

 

John Riesland, Wyoming School Boards Association, Brian Monteith, Park County School District #6, and Vern McAdams, Laramie County School District #2, presented an alternative education financing model.  They explained to the Committee that the proposal was a simpler model than the current block-grant model, and was developed by educators and professionals.  They handed out materials explaining the model and comparing it to the present block-grant model (See Appendix N).  They explained the differences in the model calculation and pointed out that this proposed model would cost an additional $158 million dollars per year more than the current model, most of which would be spent on staff salaries.  The Committee discussed the proposal, and will consider it.  Chairman Devin noted a letter written in support of the proposal by Senator Job (See Appendix O).

 

 

 

Meeting adjourned at 1:05pm

 

 

Respectfully submitted,

 

 

 

____________________________                _________________________________

Senator Irene Devin,                                      Representative Bill Stafford,

Committee CoChair                                               Committee CoChair

 


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