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          5             BEFORE THE WYOMING STATE LEGISLATURE

 

          6                  JOINT EDUCATION COMMITTEE

 

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          9             JOINT EDUCATION COMMITTEE PROCEEDINGS

                                     Volume I

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                                 8:30 a.m., Monday   

         11                      December 16, 2002

                                 Cheyenne, Wyoming   

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          1                    P R O C E E D I N G S

 

          2                       (Meeting proceedings commenced

 

          3                       8:30 a.m., December 16, 2002.)

 

          4                   COCHAIR DEVIN:  Committee, I would like to

 

          5   call the meeting to order.  Our recorder is here and our

 

          6   plan for the day is to go through the new agenda pieces

 

          7   this morning and break for lunch and then come back and

 

          8   take up the continuation of the agenda this afternoon

 

          9   until 4:00 p.m., at which time we will break to attend

 

         10   Superintendent Catchpole's event, which is in the Hathaway

 

         11   Building.

 

         12             And then we will begin the agenda tomorrow

 

         13   morning to finish up the other pieces.  And I guess we'll

 

         14   just see how far we get, not knowing the amount of

 

         15   discussion.

 

         16             Welcome, Marlene.  I do have the pleasure of

 

         17   telling you that some of our new committee members, those

 

         18   appointments have been made for the upcoming session and

 

         19   we do have some in attendance.

 

         20             Senator Jim Anderson will be moving to

 

         21   Education.  With his background, we're very pleased.

 

         22             Representative Gentile will be moving to the

 

         23   House piece, and Chairman Wasserberger will be doing the

 

         24   House piece.

 

         25             Is there anyone else in the process of trying to

 

 

 

 


 

 

 

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          1   get our agenda together that I've missed?

 

          2             Superintendent Blankenship, you are in the

 

          3   corner there.  Okay, thank you.  Welcome.

 

          4             Committee, I don't think there are any other

 

          5   points that we need to discuss.  Today and tomorrow will

 

          6   most likely be our last days for preparing our legislation

 

          7   for the upcoming session that will go forward to the new

 

          8   committee.

 

          9             And with that, I need to ask for the approval of

 

         10   the minutes that have been circulated.  Could I have a

 

         11   motion?

 

         12                   COCHAIR STAFFORD:  So moved.

 

         13                   REPRESENTATIVE LOCKHART:  Second.

 

         14                   COCHAIR DEVIN:  It has been moved and

 

         15   seconded that the minutes from November 22nd be approved.

 

         16             All in favor, aye.

 

         17             With that we have Dr. Tom Parrish and Dr. Jim

 

         18   Smith who are going to bring us the additional information

 

         19   on special education.  And I know it is extremely

 

         20   difficult to do what you've done in four hours with us,

 

         21   probably, on a thumbnail sketch, but we do have some

 

         22   committee members who haven't had an opportunity to be

 

         23   here because of other circumstances, and then we've got

 

         24   new committee members that you just heard introduced, so I

 

         25   think it would be helpful if you could at least give us

 

 

 

 


 

 

 

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          1   the skeletal framework and the significant supporting

 

          2   documentation to the cost work that you will be looking at

 

          3   today, if that would work for you.

 

          4             If you want to come forward.

 

          5             Is there anyone here from the Department, if we

 

          6   do have questions?

 

          7                   DR. PARRISH:  Madam Chairman and Committee

 

          8   Members, good morning.

 

          9             I will try to recapitulate a year's work in

 

         10   about five minutes, and then I'm sure there will be

 

         11   questions and I'll be happy to answer them as best I can.

 

         12             This study did begin about a year ago.  I'm Tom

 

         13   Parrish, by the way, and I'm from the American Institutes

 

         14   for Research.  And we took on a study with three purposes.

 

         15             The first purpose was to develop an independent

 

         16   measure of expenditures on special education in Wyoming. 

 

         17   And Wyoming has a pretty good handle on how much you spend

 

         18   on special ed because of your 100 percent reimbursement

 

         19   system; however, certain things are counted in certain

 

         20   ways that are a little different than what other states do

 

         21   and many other states do not have a good handle on what

 

         22   they spend on special education.

 

         23             It just so happened that the Wyoming study of

 

         24   expenditures was occurring at the same time that similar

 

         25   studies were occurring over ten other states and also a

 

 

 

 


 

 

 

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          1   national study.  This was the first national study

 

          2   estimating expenditures on special education since about

 

          3   1985-'86.  So these data really have not been available

 

          4   for quite a long time to be able to take a snapshot of

 

          5   Wyoming and compare it to the nation and to ten other

 

          6   states, using the exact same approach and methodology.  So

 

          7   that was one objective of the study.

 

          8             A second objective of the study, then, was to

 

          9   attempt to determine adequate appropriations or funding or

 

         10   resources for the Commission of special education within

 

         11   the context of Wyoming.  It is important to keep in mind

 

         12   that these are subjective determinations.  There is no way

 

         13   to objectively determine exactly what delivery systems are

 

         14   required for the population.

 

         15             We did use a professional judgment model.  We

 

         16   had a committee that worked very hard with us to assist

 

         17   us.  But ultimately the determination of the standards of

 

         18   adequacy were derived by the study team.  We used a large

 

         19   portion of the input of the committee.  We also looked to

 

         20   all of the other information that we could find wherever

 

         21   we could find it about what was adequate, appropriate,

 

         22   recommended under the guise of special education

 

         23   provision.

 

         24             So we looked at what Wyoming was actually doing,

 

         25   we looked at what other states were doing, we looked at

 

 

 

 


 

 

 

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          1   data from our national study, we looked at professional

 

          2   recommendations from groups such as national speech

 

          3   therapists groups and so on.

 

          4             There's not as much out there as one would like

 

          5   in the area of special education, but I think Wyoming is

 

          6   on the cutting edge in the sense that they're starting to

 

          7   ask the question not only what are we spending but what

 

          8   should we be spending.  I think other states will be

 

          9   following that lead because I think that is ultimately the

 

         10   direction in which we have to go.

 

         11             A third component of the study was to make

 

         12   recommendations about how the resource standards developed

 

         13   through the definition of the adequacy, which was the

 

         14   second component of study.  And we were to cost those out,

 

         15   get a dollar estimate of cost of that adequacy and what

 

         16   recommendations could we make about how that would be

 

         17   funded or how that would develop into a funding model for

 

         18   the state.  So those were the three components of the

 

         19   study.

 

         20             I really wasn't prepared to totally summarize

 

         21   the findings, but I will give you kind of a thumbnail

 

         22   sketch of what I remember to be the salient points and we

 

         23   can move to where we are in terms of specific

 

         24   recommendations today.

 

         25             The most salient points, as I remember them --

 

 

 

 


 

 

 

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          1   and I'm sure I'm going to miss a few, but one was there

 

          2   were concerns expressed under the 100 percent

 

          3   reimbursement that we might see a huge incentive, to, A,

 

          4   place students in special education in Wyoming; and B, to

 

          5   sort of pad the services that they receive.  100 percent

 

          6   reimbursement could be seen as a blank check and there

 

          7   were certainly concerns about the potential for abuse

 

          8   under that type of system.

 

          9             So we did look and were asked to look at

 

         10   expenditure patterns and identification patterns

 

         11   historically in the state and as compared to other

 

         12   neighboring states and the nation.

 

         13             Having done this, we concluded that there was

 

         14   little evidence to suggest, A, runaway identification,

 

         15   runaway spending, or extensive abuse under the system.

 

         16             Wyoming's identification rate has risen somewhat

 

         17   faster than the nation over the last five or six years,

 

         18   but at the end of that period the overall identification

 

         19   rate of students, in other words, the percentage of total

 

         20   students in special ed is pretty close to the national

 

         21   average.

 

         22             Spending, as best again we could estimate it --

 

         23   we only had data we had 100 percent confidence in in the

 

         24   year that we actually collected it, but using the best

 

         25   data available to try to assess what occurred over time,

 

 

 

 


 

 

 

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          1   it did not appear that we see runaway increases in

 

          2   spending.

 

          3             However, it did appear that we see spending, as

 

          4   best as we could indicate, that was faster than it

 

          5   occurred at the national average.  And at the end of the

 

          6   day we did find that in Wyoming the identification rate is

 

          7   somewhat higher than the neighboring states but relatively

 

          8   commensurate with the nation, and spending was higher on

 

          9   average than the neighboring states as well as the nation.

 

         10             I think we saw that spending was something like

 

         11   about, for special ed students, 15 percent higher than the

 

         12   national average, while spending on general ed students

 

         13   was something like 5 percent higher than the national

 

         14   average.  So there is some sense that spending is somewhat

 

         15   higher, but again, no clear evidence, at least, of runaway

 

         16   spending or inflation.

 

         17                   COCHAIR DEVIN:  Dr. Parrish, at that point

 

         18   in our notes in the presentation you had -- and I know

 

         19   I've sort of sprung this on you -- but you had presented

 

         20   last time that our spending is 17 percent higher.  Is that

 

         21   still --

 

         22                   DR. PARRISH:  That hasn't --

 

         23                   COCHAIR DEVIN:  That our identification

 

         24   rate was 5 percent higher were the two figures I had down.

 

         25                   DR. PARRISH:  Than the national average? 

 

 

 

 


 

 

 

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          1   So I would still stand by that.  I don't have that with

 

          2   me.  But again, the national rate was pretty close, so

 

          3   you're probably talking about 12.1 as opposed to 12 which

 

          4   would be 5 percent higher, but still pretty close to the

 

          5   national average.

 

          6             But the spending at 17 percent higher would

 

          7   be -- and that was relatively new news.  We didn't really

 

          8   know that until we were able to do our independent

 

          9   assessment of spending in Wyoming and be able to relate

 

         10   that to the national average which became -- those data

 

         11   weren't available until the very end of the study because

 

         12   we were analyzing that information right up to the last

 

         13   point.

 

         14             Other things that we found, because one of the

 

         15   issues as a study team was to consider the viability and

 

         16   desirability from our perspective of continuing the 100

 

         17   percent funding formula in Wyoming, our recommendation was

 

         18   that the State not continue the 100 percent funding

 

         19   formula.

 

         20             And there were a couple of reasons for that. 

 

         21   One reason was just the viability of perpetuating that

 

         22   into the future.  But I think that probably the most

 

         23   pressing concern from the perspective of the study team

 

         24   was the rather large variation in identification rates and

 

         25   in spending and services provided in districts throughout

 

 

 

 


 

 

 

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          1   the state of Wyoming.  So that when we think about

 

          2   adequate provision of services, we believe that those

 

          3   adequate services should be provided and be made available

 

          4   to all students according to their needs, and irrespective

 

          5   of their zip code.

 

          6             And so when we saw districts that ranged in

 

          7   variation from something like 28 to 29 percent

 

          8   identification rates to more like 6 or 7 percent

 

          9   identification rates, average spending per student that

 

         10   was twice in some districts to what it was in others, some

 

         11   districts where virtually all students receive, at least

 

         12   the data indicated, speech therapy and other districts in

 

         13   which virtually no one, for example, received speech

 

         14   therapy, we saw wide swings in the levels of service being

 

         15   provided that we felt were not within the context of what

 

         16   we would consider adequate and appropriate guarantees for

 

         17   all students, as I said, irrespective of their zip code.

 

         18             So those concerns led us to recommend that a

 

         19   cost-based funding model, resource model and funding model

 

         20   be implemented that we felt over time would provide much

 

         21   more even levels of services for students throughout the

 

         22   state.

 

         23             At the same time, we recommended strengthening

 

         24   the regional provision of services.  We did not recommend

 

         25   that we go from district-based to totally regional-based

 

 

 

 


 

 

 

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          1   at all.  It is not something that has to be dramatic and

 

          2   occur in year one, but over time we felt that it was

 

          3   important that we see much more district collaboration,

 

          4   the regional provision of services, regional management of

 

          5   scarce resources, regional treatment of low-incidence

 

          6   students such as, for example, deaf or blind or very

 

          7   severe students that may find themself in very small

 

          8   districts, that increased regionalization would be

 

          9   important.

 

         10             We also felt that to -- whether or not the State

 

         11   decides to adopt the resource guidelines underlying our

 

         12   funding provisions or not, we still felt that those

 

         13   resource guidelines would be important standards of

 

         14   service to help communication between the state department

 

         15   and its monitoring and looking at districts in terms of

 

         16   what they're actually doing, to be able to talk about what

 

         17   is appropriate and what is adequate for students.

 

         18             However, the staff of the state department

 

         19   seemed so meager in its ability to really go out and look

 

         20   at what districts were doing that we recommended a

 

         21   bolstering of state staff to be able to monitor and work

 

         22   with districts in a way to implement regional services,

 

         23   monitor what was going on, and provide technical support

 

         24   for things like low-incidence disabilities.

 

         25             Another provision that we felt was very

 

 

 

 


 

 

 

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          1   important and that needed to go part and parcel with the

 

          2   recommendations toward a cost-based funding system is the

 

          3   importance of a contingency fund.  In other words, our

 

          4   recommendation was moving to a much more, we felt,

 

          5   evenhanded, equitable and adequate, as defined, provision

 

          6   of services for all districts across the state.

 

          7             However, because the funding is based primarily

 

          8   on the total enrollment of districts, very small districts

 

          9   could incur costs that could be substantially beyond what

 

         10   the cost-based model would predict.  So the cost-based

 

         11   model works best the larger the district and the greater

 

         12   the scale.  And we all know, there's some very small

 

         13   districts in Wyoming, but even for large districts,

 

         14   circumstances that can happen that we would consider

 

         15   somewhat unusual and would drive cost, for example, in a

 

         16   single year well beyond what the cost-based model would

 

         17   provide.

 

         18             So we felt that a contingency fund was an

 

         19   essential complement to this cost-based model, so we

 

         20   recommended a contingency fund of about $2 million to

 

         21   which districts could apply in circumstances of unusual

 

         22   cost.  And we felt that unusual cost could occur from at

 

         23   least three circumstances.

 

         24             One might be identification rates that are much

 

         25   higher than what the model predicts.  Now, keep in mind,

 

 

 

 


 

 

 

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          1   districts need to be able to make the case and to justify

 

          2   that if they're identifying something like 20 percent of

 

          3   their kids as special ed, they need to be able to

 

          4   demonstrate that this is something that is truly their

 

          5   incidence rate.

 

          6             A second reason might be some -- a few

 

          7   particularly high-cost students, and again, those cases

 

          8   would have to be demonstrated.

 

          9             A third case that we thought of -- and there

 

         10   certainly could be others -- is that we know that there

 

         11   are a number of districts in the state that have attempted

 

         12   to hire therapists who are in very short supply, not only

 

         13   in Wyoming but across the nation and they sometimes have

 

         14   to pay on an annualized basis perhaps 100, $120,000 a year

 

         15   for these therapists.  And that ought to be a situation

 

         16   where they can apply to the contingency fund for relief.

 

         17             The State through the bolstered efforts will

 

         18   work with the districts over time to allow them to find

 

         19   more efficient ways to provide these services, but until

 

         20   that's resolved that should be another reason why

 

         21   districts could apply to the contingency fund.  Awards of

 

         22   that fund could be based on state department evaluation,

 

         23   could be based on evaluation of peers, in other words,

 

         24   directors from other districts.  States have done it in a

 

         25   variety of ways, but most states have a contingency fund

 

 

 

 


 

 

 

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          1   of the type we've recommended.

 

          2             If you stay with 100 percent reimbursement, it

 

          3   wouldn't be necessary because, arguably, districts could

 

          4   claim whatever they're spending.

 

          5             I think I'll stop for a moment and that kind of

 

          6   brings us up to the present and where we are now.  I went

 

          7   over a lot in a hurry and may have skipped a few things. 

 

          8   I don't know if you want to pause to see if there are --

 

          9                   COCHAIR DEVIN:  Committee, are there

 

         10   questions of that review?

 

         11                   REPRESENTATIVE MCOMIE:  Madam Chairman.

 

         12                   COCHAIR DEVIN:  Representative McOmie.

 

         13                   REPRESENTATIVE MCOMIE:  In Wyoming we have

 

         14   the developmentally disabled preschools and they're

 

         15   mandated to take in a lot of these children.  They all

 

         16   have EIPs -- IEPs -- I always get that wrong -- and they

 

         17   have quite an impact on the schools.  Did you measure in

 

         18   your study any of that that's occurring?  They're growing

 

         19   in leaps and bounds.  These children are coming into this

 

         20   system and we're constantly underfunding because they're

 

         21   done through the Department of Health and not through the

 

         22   Department of Education.

 

         23                   DR. PARRISH:  Madam Chairman,

 

         24   Representative McOmie, this is a provision under federal

 

         25   law, increased identification of preschool and infants and

 

 

 

 


 

 

 

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          1   toddlers as well, in fact, and you're quite correct, not

 

          2   only in Wyoming but nationally this is by far the fastest

 

          3   growing population simply because, arguably, it has been

 

          4   substantially underserved in the past and there's been new

 

          5   federal legislation to bolster the identification of those

 

          6   students.

 

          7             So we think that's a national phenomenon.  We

 

          8   did not look at it that it would affect one district

 

          9   uniquely in relation to another.  But when we did compare

 

         10   what's going on in Wyoming to the nation and other states,

 

         11   the same phenomenon is occurring nationally.

 

         12                   SENATOR SESSIONS:  Madam Chairman.

 

         13                   COCHAIR DEVIN:  Senator Sessions and then

 

         14   Representative Lockhart.

 

         15                   SENATOR SESSIONS:  Madam Chairman, I have

 

         16   a question on a regionalization concept, and maybe the

 

         17   Casper people could answer this.  You referenced the blind

 

         18   and deaf students.  I do believe we regionalized here a

 

         19   long time ago and we had the schools in Casper, the deaf

 

         20   and blind school in Casper, which from my understanding

 

         21   was an abysmal failure because with our distances in our

 

         22   state, students were having to come and stay and the

 

         23   effect on those students away from their families and the

 

         24   distances traveled was detrimental.

 

         25             So I don't know, you know.  I agree, you know --

 

 

 

 


 

 

 

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          1   so you've got a thing here in this state, I don't know how

 

          2   you would -- unless you traveled -- unless your

 

          3   specialists travel, and yet, you know, we -- in looking at

 

          4   all the -- of the state, I look at -- and I've looked

 

          5   carefully and different areas in the state where your

 

          6   specialists can travel, and it is still a real problem. 

 

          7   The windshield time, as we call it in the legislature, is

 

          8   just phenomenal for specialists.

 

          9             And I don't know what the answer is.  I think

 

         10   school districts have struggled with this, communities

 

         11   have struggled with it for a long time.

 

         12                   COCHAIR DEVIN:  We did have a bit of

 

         13   discussion last session of this and just one thing I do

 

         14   want to make clear, that was a misconception by some of

 

         15   the individuals there is that it is not the intent that

 

         16   students would have to travel and be somewhere but it is

 

         17   the intent that on a regional basis we develop some of the

 

         18   personnel and the support that is not there now to

 

         19   actually get the adequacy of services to some of these

 

         20   areas and to get it there cooperatively to reduce that

 

         21   burden.

 

         22             But I think there was that misperception that we

 

         23   would be moving students and that is not the case or the

 

         24   recommendation, but you may want to elaborate on that.

 

         25                   DR. PARRISH:  Madam Chairman and Senator

 

 

 

 


 

 

 

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          1   Sessions, I'm glad you raised that point.  We would really

 

          2   like the strong -- sometimes regionalization is

 

          3   misconstrued or associated with practices of the past that

 

          4   we would not want to be associated with.  I'm not going to

 

          5   say that it never makes sense to bring kids together for

 

          6   services of that type.  For example, especially for the

 

          7   deaf community it is sometimes argued that you need a

 

          8   certain critical mass of other children with whom they can

 

          9   communicate.  So we're not going to take a position on

 

         10   that.  I think the State needs to determine that.

 

         11             But generally the notion of least restrictive

 

         12   environment we feel should apply.  Our recommendation is

 

         13   not to move to vast regionalization where children would

 

         14   be moved large distances and kept from families in other

 

         15   communities.  That's not what we would like to see.  We

 

         16   would like to see a district with a hundred kids who has a

 

         17   very involved child not be out there on their own trying

 

         18   to figure out how to meet the complex needs of that child.

 

         19             At the very least, consultative services should

 

         20   be available on a regional and state basis.  So that

 

         21   district is not there on its own.  That works within the

 

         22   spirit of least restrictive environment for the best

 

         23   interests of that child is what we had in mind.

 

         24                   COCHAIR DEVIN:  You had a follow-up.

 

         25                   SENATOR SESSIONS:  This is on a different

 

 

 

 


 

 

 

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          1   concept, and I have harped on this myself.  And I wondered

 

          2   when they did the averaging they've done here, if you

 

          3   considered this.  When we were discussing with Mr. Smith a

 

          4   long time ago on averages -- I took the number of children

 

          5   in our districts.  We have two segments in our state.  We

 

          6   have very few medium-sized schools.  We have large areas

 

          7   of attendance and we have small areas of attendance.  And

 

          8   I'm wondering, did you break those costs out?  Did you

 

          9   divide those districts and did you break the costs out for

 

         10   your large districts and the costs out for your small

 

         11   districts?

 

         12             Just running down this list, you know, I see

 

         13   where you -- where the averaging does not -- I mean, you

 

         14   know, when we lump everything in Wyoming together, the

 

         15   averaging does not give a true picture of actually what

 

         16   the costs are in the various segments of our schools.

 

         17                   DR. PARRISH:  Madam Chairman and Senator

 

         18   Sessions, we did take scale into consideration.  I think

 

         19   this is the first meeting in which our printout actually

 

         20   hasn't been organized by size.  Of course, even that

 

         21   wouldn't tell you whether or not we accounted for size in

 

         22   the model, but we did.  We did in two ways.  We looked --

 

         23   we did not attempt to make an evaluation about whether

 

         24   small schools and small districts were necessarily small,

 

         25   so I know in the past Dr. Smith and the MAP model may have

 

 

 

 


 

 

 

                                                                      19

 

          1   looked at or may not, I don't know, the extent --

 

          2   sometimes it is an issue, are you small because you're

 

          3   remote and you need to be small or are you small because

 

          4   you've chosen to be small.

 

          5             And sometimes the implication is whether the

 

          6   State wants to fund the diseconomies of small scale are

 

          7   dependent whether you're small by choice.  We assumed that

 

          8   everybody was small because of remoteness.

 

          9             Now, the itinerant or windshield time services

 

         10   were specifically differentiated for what we identified as

 

         11   remote locations, and we went through kind of a long set

 

         12   of procedures to try to identify who was remote and who

 

         13   wasn't and how we would define that.  So more resources

 

         14   were poured into remote schools, whether in big or small

 

         15   districts, but small districts would be more likely to

 

         16   have them, I think.

 

         17             The second thing we did was differentiated

 

         18   pretty considerably so that would affect services and we

 

         19   also differentiated fairly considerably in terms of the

 

         20   administrative component based on scale.

 

         21             So we were able to pump considerably more

 

         22   administrative resources sort of per capita in the very

 

         23   small schools than in the large ones for that exact

 

         24   reason.

 

         25                   SENATOR SESSIONS:  Madam Chairman, just a

 

 

 

 


 

 

 

                                                                      20

 

          1   comment -- and I understand -- I can see that from here. 

 

          2   But when you say average, when they say the average cost

 

          3   is this in the state, the average cost is this, then you

 

          4   get a different picture.  And that's the sound bytes that

 

          5   the public and the majority of the legislature pick up on. 

 

          6   And my contention in this whole battle of school funding

 

          7   has been we've got to recognize that we have real

 

          8   variabilities in these schools.  We are not like our

 

          9   surrounding states with huge attendance centers, you know.

 

         10             And I just -- I don't know how many times I've

 

         11   said this.  Anyway, I won't say any more.  I'm saying when

 

         12   you lump everything together in averages, that is not the

 

         13   correct picture of what our states are.

 

         14             When I take Laramie 1, we educate students for

 

         15   far less than Utah, North Dakota, Colorado, whatever per

 

         16   student in my district alone.  And I look at the special

 

         17   ed costs, here again are less.  So I guess I have a real

 

         18   problem with this throwing out statewide averages, in this

 

         19   state particularly.  And I won't say any more.

 

         20                   COCHAIR DEVIN:  I think Representative

 

         21   Lockhart was next.

 

         22                   REPRESENTATIVE LOCKHART:  Dr. Parrish, I

 

         23   think at the very onset you spoke of looking at the costs

 

         24   to see whether they were out of line and you did say that

 

         25   there was a fairly significant increase in the last few

 

 

 

 


 

 

 

                                                                      21

 

          1   years.

 

          2             I am under the impression that we've done some

 

          3   pretty good improvements on teacher salaries, at least

 

          4   moneies directed toward salaries for the teaching

 

          5   community, and that's really been greater in the last

 

          6   couple years.  Was that encompassed in that look at that? 

 

          7   Were you familiar with some of the things we've done in

 

          8   the last few years to increase wages?

 

          9             Because most of the special ed -- a lot of

 

         10   special ed cost is manpower and we had that significant

 

         11   effort the last few years.

 

         12                   DR. PARRISH:  Madam Chairman and

 

         13   Representative Lockhart, we didn't specifically look at

 

         14   change in salary over time.  We did look at changes in

 

         15   total expenditure over time and then the year in which we

 

         16   did our analysis, which would have been the last school

 

         17   year, I believe, could be one reason why Wyoming then

 

         18   suddenly looked to get higher in relation to the national

 

         19   average in special ed spending when in the past we've sort

 

         20   of had the impression it wasn't higher.  It could be sort

 

         21   of because of that recent increases in salaries.  It would

 

         22   have been reflected because in the salary analysis we used

 

         23   it was a fairly recent snapshot, but we did not analyze

 

         24   over time changes in salary.

 

         25                   COCHAIR DEVIN:  A couple of things in the

 

 

 

 


 

 

 

                                                                      22

 

          1   review.  You recommended a six-year phase-in; is that

 

          2   correct?

 

          3                   DR. PARRISH:  Well, we did.  We've been --

 

          4   Madam Chairman, we've been a little inconsistent on our

 

          5   recommendation and I'll just mention that.  I think at one

 

          6   time we had 12 years.  We moved to six years.  We've now

 

          7   in our latest -- what we're presenting you today, this

 

          8   suggests two years.  And we will talk -- I can explain why

 

          9   I think we've changed that.

 

         10                   COCHAIR DEVIN:  You can do that later so I

 

         11   won't take you off of track of your presentation again.

 

         12             Representative Simons.

 

         13                   REPRESENTATIVE SIMONS:  I have to agree

 

         14   with Kathryn.  Wyoming is a unique place, we've got Crook

 

         15   County and Weston County and Niobrara County.  Those

 

         16   children have nowhere else to go without being bused 80,

 

         17   90 miles.  It is small schools that are there.

 

         18             It is very costly for the special education.  We

 

         19   have a bus that goes from Crook County over to Gillette

 

         20   and takes the older students out of high school now over

 

         21   there for rehab training and for things like that.  They

 

         22   go every day and that's a big cost to our small district

 

         23   to have to go clear to Campbell County to get that done,

 

         24   but we do it because that's in the best interests of our

 

         25   special ed students.

 

 

 

 


 

 

 

                                                                      23

 

          1             The MAP model and all of this stuff is -- the

 

          2   way we've been doing it is what keeps putting us in a

 

          3   problem with funding small schools.  I have to agree with

 

          4   Kathryn.

 

          5                   COCHAIR DEVIN:  Senator Scott.

 

          6                   SENATOR SCOTT:  Madam Chairman, question

 

          7   with regard to variation.  As I remember looking at the

 

          8   numbers last time, the -- when you look at the size of the

 

          9   district, the variations in special ed spending were much

 

         10   greater among the smaller districts than they were in the

 

         11   larger districts, suggesting to me that some of what we

 

         12   were seeing was simply random variation depending on the

 

         13   severity of the kids which you would expect with the small

 

         14   size of some of our districts.

 

         15             Could I get you to comment on that?

 

         16                   DR. PARRISH:  Madam Chairman, Senator

 

         17   Scott, discuss -- because it is all in the same vein

 

         18   here -- first of all, in terms of recognizing smallness

 

         19   and scale and referring back, Senator Scott, to the

 

         20   numbers that you looked at, we tried to understand the

 

         21   considerable degree of expenditure we saw, so not what's

 

         22   in our cost model where we did attempt to account for

 

         23   small schools, because we do believe that small situations

 

         24   do have diseconomies, do have higher cost, in the cost

 

         25   model we attempt to account for that, let's look and see

 

 

 

 


 

 

 

                                                                      24

 

          1   what is actually occurring under expenditures, which is

 

          2   the question that I think Senator Scott is raising.

 

          3             And what we found is the variation we saw on

 

          4   actual expenditure really didn't represent what we think

 

          5   we believe which is that smaller schools cost more. 

 

          6   Smaller schools aren't necessarily spending or getting

 

          7   more under sort of the freedom to spend what you will, 100

 

          8   percent reimbursement system.  We saw some relation

 

          9   between size and cost, but not -- true expenditure, that

 

         10   is, but not much.  I would argue that the cost model

 

         11   actually does better for small situations than sort of the

 

         12   old expenditure system.

 

         13             To what degree is that likely to be a variation

 

         14   in sort of random variation in incidence of students?  I

 

         15   think certainly that's a component.  My own professional

 

         16   judgment would be having looked at this over a number of

 

         17   years, these issues, is that there is a combination of

 

         18   factors.  When we see one district that's at 28 percent,

 

         19   another at 12, one spending twice as much as another,

 

         20   you're right, it is more likely to occur in very small

 

         21   situations.

 

         22             And my own interpretation of it, again having

 

         23   looked at it, would be it is a combination, a variation in

 

         24   true incidence.  In other words, if we would really look

 

         25   through independent assessment at kids of both districts,

 

 

 

 


 

 

 

                                                                      25

 

          1   we probably could see that some districts are more

 

          2   impacted than others and it is also an artifact of the

 

          3   variation in local interpretation of law and subjective

 

          4   judgment.

 

          5             Exactly where that continuum leans in one way or

 

          6   another, you almost have to look district by district, I

 

          7   think, to make a determination.  But I do question when I

 

          8   see two districts of very like circumstances -- and I can

 

          9   understand in a few-year period how that one district

 

         10   might have a certain set of families with children with

 

         11   certain severe disabilities that would create higher

 

         12   expenditures over a certain period of time that's fairly

 

         13   well defined.

 

         14             When I see that over a large period of time of

 

         15   28 percent identification as opposed to 14, for example,

 

         16   then I have to wonder about the extent to which it is

 

         17   subjective as opposed to objective.  But it is a dilemma

 

         18   and it is difficult to zero in on the exact relationship.

 

         19                   REPRESENTATIVE MILLER:  Thank you, Madam

 

         20   Chairman.

 

         21             Dr. Parrish, have you looked at the poverty rate

 

         22   in each of the school districts versus the special

 

         23   education identification and the dollars spent, poverty

 

         24   rate and also the drug and alcohol abuse rates per

 

         25   district, looking at those numbers specifically and trying

 

 

 

 


 

 

 

                                                                      26

 

          1   to correlate why you have a higher identification in some

 

          2   districts, both of those categories?

 

          3                   DR. PARRISH:  Madam Chairman and

 

          4   Representative Miller, in terms of poverty we did.  Drug

 

          5   and alcohol rates, per se, we did not.  So we did not look

 

          6   at the second one.

 

          7             In terms of poverty, again, when we saw the

 

          8   considerable variation that we did, we tried to look to

 

          9   see to what extent might that be explained by poverty, to

 

         10   what extent might it be explained by size and several

 

         11   other factors.  We did not see a clear relationship of

 

         12   variation in poverty.  Again, these are averages and

 

         13   averages -- there are problems with averages.

 

         14             Now, do I believe that the true incidence, as

 

         15   Senator Scott was referring to, is likely to correlate to

 

         16   high poverty?  I do.  And that's one of the concerns,

 

         17   though, I think we had under the old sort of system that I

 

         18   felt was considerably open to local interpretation, is

 

         19   that we didn't see a relationship in variation in spending

 

         20   or identification that correlated very well with poverty

 

         21   which is what we would have expected.

 

         22                   COCHAIR DEVIN:  Any other questions?

 

         23             Senator Scott.

 

         24                   SENATOR SCOTT:  Madam Chairman, is this

 

         25   the appropriate time to ask about the interplay with

 

 

 

 


 

 

 

                                                                      27

 

          1   federal funds?

 

          2                   COCHAIR DEVIN:  Well, I would ask as you

 

          3   go forward, I would like to know if we were to go down --

 

          4   I'm a little concerned.  We may have already -- because of

 

          5   what I'm hearing on supplanting and these types of issues,

 

          6   we may have already dug our hole fairly deep by doing the

 

          7   100 percent reimbursement temporary program and that now

 

          8   we may be in a spot that it will be very difficult to go

 

          9   to another system or to back off the 100 percent.

 

         10             But I would like to know -- I know we're

 

         11   expecting substantial increases in federal funds, and how

 

         12   that interplays -- what will happen with those and how

 

         13   that interplays with whatever system we would choose to go

 

         14   forward with at the State.

 

         15             And Senator Scott, do you have anything

 

         16   additional?

 

         17                   SENATOR SCOTT:  That's basically the set

 

         18   of questions I want to explore.

 

         19                   COCHAIR DEVIN:  As you're doing your other

 

         20   presentation, I need to understand those pieces.

 

         21                   DR. PARRISH:  Madam Chairman and Senator

 

         22   Scott, why don't I just respond to that and then I will go

 

         23   into this which I think will talk about it a little bit

 

         24   more?

 

         25             Having looked at this, my own opinion is that I

 

 

 

 


 

 

 

                                                                      28

 

          1   don't see a considerable maintenance of effort problem in

 

          2   the state, again, my own opinion.  And you would think

 

          3   this should be sort of crystal clear because it is a big

 

          4   issue at the federal level that's constantly discussed.

 

          5             We have made some inquiries, tried to get as

 

          6   clear of answers as we could.  All I can say is that the

 

          7   clear answers seem to be somewhat elusive.  However, we

 

          8   looked carefully into the rules and regulations and made

 

          9   our own determinations based on what we think we see in

 

         10   the rules and regulations.  I think the rules and

 

         11   regulations, in my opinion, are fairly clear.

 

         12             And again, my opinion would be that the

 

         13   depiction that Becca depicted created a little more

 

         14   complex picture than I think is really the case right now.

 

         15   I believe that the requirement is simply that states must

 

         16   maintain the same level of funding that they did in the

 

         17   prior year, and the districts cannot spend less in state

 

         18   and local funds than they did in the prior year. And

 

         19   really, it is about as simple as that, I believe.

 

         20             Now, there are circumstances under which they

 

         21   could spend less, by the way, but I don't know if we

 

         22   really want to get into those.  There are a few

 

         23   circumstances under which maintenance of effort is not

 

         24   even required or could be relaxed, let's say.  The

 

         25   maintenance of effort requirement I think is pretty simple

 

 

 

 


 

 

 

                                                                      29

 

          1   and straightforward.

 

          2             And while you have through the 100 percent

 

          3   reimbursement and the variations we've created means we're

 

          4   going to have what we had called in the past hold harmless

 

          5   because I know hold harmless has some other meanings under

 

          6   the MAP model, I think we're going to move to a different

 

          7   term.  I think we will call it a maintenance of effort

 

          8   floor that every state would have to maintain and the

 

          9   districts would have to maintain.  In my opinion, as long

 

         10   as we maintain the maintenance of effort floor in the

 

         11   funding model, I think we're all right in terms of

 

         12   maintenance of effort.

 

         13             Maybe I should go through this handout.  I think

 

         14   that will also demonstrate some of that.

 

         15             The one that has a 1 with a circle around it in

 

         16   the upper right-hand corner, this really summarizes what

 

         17   you're going to see in the subsequent pages here.  I know

 

         18   we've kind of moved back and forth from trying to look

 

         19   into the future to kind of going back to the base year in

 

         20   which we had data.

 

         21             And Mary Byrnes and Jim Smith and I met on

 

         22   Friday in California.  We really tried to think how we

 

         23   might present this in a way that was dealing with sort of

 

         24   known numbers to the greatest extent possible because as

 

         25   we look into the future we're really looking into numbers

 

 

 

 


 

 

 

                                                                      30

 

          1   we're not sure about.  We thought there would be some

 

          2   advantage to going back to years for which we have all of

 

          3   the data and we could kind of show how three alternatives

 

          4   would have made out for the year 2001-2002.

 

          5             This page -- the subsequent pages will provide a

 

          6   little more detail of where these numbers came from, but

 

          7   this is a summary page showing what every district would

 

          8   receive in state funds had each of these three systems

 

          9   been in place in that year.

 

         10             The first column is simply the system that was

 

         11   in place that year, so what was forthcoming, what did

 

         12   districts receive in state funds with the system that was

 

         13   in place in 2001-2002 which, of course, was 100 percent

 

         14   reimbursement.  That's column A.  And there are no

 

         15   subsequent sheets to provide more support for that because

 

         16   I think that's fairly straightforward as to what actually

 

         17   occurred.

 

         18             B shows what would have been the State's share

 

         19   of the cost of adequate special education services using

 

         20   the AIR model for the year 2001-2002 with the maintenance

 

         21   of effort floor in place.  And that is shown in column B. 

 

         22   And I will show you the subsequent sheet that sort of

 

         23   shows where those numbers came from.

 

         24             But again, to do an overview, then, column C is

 

         25   a third alternative that we think is before this committee

 

 

 

 


 

 

 

                                                                      31

 

          1   for consideration, and that would be a transitional model

 

          2   that would allow for a two-year phase-in of the AIR cost

 

          3   model in which the first year would be a one-half funding

 

          4   from the cost model and one-half from reimbursement and

 

          5   then this would say if the 2001-2002 year had been the

 

          6   phase-in year or the one-half/one-half year, what would it

 

          7   have looked at.

 

          8             Turning to page 2, we will see a little where

 

          9   the numbers for the cost models were derived.  For

 

         10   example, Albany 1, we see 3.9 million, and we look in

 

         11   column C-3 and we see the 3.9 million and that's just

 

         12   relating it back to the summary.

 

         13             How do we get that 3.9 million?  The AIR

 

         14   simulation cost or what we simulate the costs would have

 

         15   been in Albany under the cost model, looking at the full

 

         16   cost of an adequate special education in 2001-2002 for

 

         17   Albany 1 we estimate at $4.1 million.  Federal funds

 

         18   provided about half a million of it, or 400,000 for that

 

         19   year, which what we're considering a base year would have

 

         20   left the State responsibility of about $3.7 million.

 

         21             But because, if we look in column D, what the

 

         22   districts had spent in state funds in the prior year was

 

         23   $3.9 million, through this maintenance of effort floor,

 

         24   would kick in additional 266,000, so that the funding for

 

         25   Albany 1, for example, would be $3.9 million, would have

 

 

 

 


 

 

 

                                                                      32

 

          1   been $3.9 million had the cost model been in place in

 

          2   2001-2002.

 

          3             In short, what you really see here is what is

 

          4   developed by the cost model in its entirety, but every

 

          5   district is held to what we're going to call the

 

          6   maintenance of effort floor.  So if more was spent in the

 

          7   prior year, then the State has a responsibility through

 

          8   the maintenance of effort as you see in column C-2 to make

 

          9   sure that that effort is maintained or that districts can

 

         10   maintain that effort.  And so that's how we see the

 

         11   funding in C-3.

 

         12             So C-3 is basically what the model would have

 

         13   predicted or what was spent in the prior year at a

 

         14   minimum.

 

         15                   REPRESENTATIVE MCOMIE:  Madam Chairman.

 

         16                   COCHAIR DEVIN:  Yes, Representative

 

         17   McOmie.

 

         18                   REPRESENTATIVE MCOMIE:  Thank you, Madam

 

         19   Chairman.  I've got -- maybe I'm getting ahead of you, but

 

         20   what if you took at the column in C-2, this would be, say,

 

         21   after the hold harmless period, this would be how much

 

         22   less the districts would be receiving but would become

 

         23   eligible for maybe federal funds?  Is that what we're

 

         24   trying to do here?

 

         25                   DR. PARRISH:  No, what we're trying to do

 

 

 

 


 

 

 

                                                                      33

 

          1   here is say as we move from a reimbursement system to a

 

          2   cost model system, what we're going to find, of course, is

 

          3   that under the old reimbursement system some districts

 

          4   were spending more and some less than we would have

 

          5   predicted or what we believe the true costs are.

 

          6             When districts were spending more, as in the

 

          7   case of Albany 1, the State has a responsibility, though,

 

          8   to assist them in maintaining this maintenance of effort

 

          9   floor.

 

         10             So the $266,000 in that case would be an

 

         11   additional state funding that would go to Albany 1.  It is

 

         12   not that they would be eligible or have to apply for it,

 

         13   it would be just a part of their allocation, but it comes

 

         14   through not what the model projects but through this

 

         15   maintenance of effort floor.  That's what it is designed

 

         16   to show.

 

         17                   REPRESENTATIVE MCOMIE:  Excuse me, Madam

 

         18   Chairman.  What that means is because Albany 1 is spending

 

         19   more, forever and ever they receive more?

 

         20                   DR. PARRISH:  Madam Chairman and

 

         21   Representative McOmie, we would expect that this would

 

         22   taper out over time.  This would be more of an

 

         23   implementation issue.  We would expect that through the

 

         24   model these things would probably even out over time and

 

         25   that there wouldn't be a continuing -- the State will

 

 

 

 


 

 

 

                                                                      34

 

          1   always have a maintenance of effort requirement, as would

 

          2   districts, but we would expect the amount in column C-2 to

 

          3   taper out over time.

 

          4                   REPRESENTATIVE WASSERBERGER:  Madam

 

          5   Chairman, I don't know if I'm allowed to ask questions.

 

          6                   COCHAIR DEVIN:  I am going to allow that

 

          7   latitude because I think all of our incoming members need

 

          8   an understanding.  And that's what we're struggling for

 

          9   here.

 

         10                   COCHAIR STAFFORD:  Just one

 

         11                   COCHAIR DEVIN:  All right, just one.

 

         12                   REPRESENATIVE WASSERBERGER:  Madam

 

         13   Chairman, I have a question and the question is if our

 

         14   students in Wyoming are in special programs, they are

 

         15   qualified for special programs according to federal

 

         16   requirements.

 

         17             Once they qualify for federal requirements don't

 

         18   we have to from now until forever provide that program for

 

         19   them and isn't the system we have now cost based?  The

 

         20   only testimony I've heard is that smaller districts are

 

         21   not providing federal special programs to the students and

 

         22   so in the future will see that as an additional cost.

 

         23             Could you discuss the federal requirements and

 

         24   special programs and how we take a student who has been

 

         25   qualified through testing and assessments for federal

 

 

 

 


 

 

 

                                                                      35

 

          1   special programs and say, "No, you can't have that

 

          2   anymore?"  Because I think we would have a lawsuit if we

 

          3   did do that.

 

          4                   DR. PARRISH:  Madam Chairman and -- and

 

          5   I'm sorry, I don't know --

 

          6                   COCHAIR DEVIN:  Wasserberger.

 

          7                   DR. PARRISH:  Senator.

 

          8                   COCHAIR DEVIN:  Representative.

 

          9                   DR. PARRISH:  Sorry.  You don't have a

 

         10   nametag.

 

         11             It is an important question, a good question. 

 

         12   Special education is more important than any other program

 

         13   for the reason that you do point out.  There is a

 

         14   contractual relationship between families and school

 

         15   districts and the State once an IEP is specified.  I think

 

         16   that is why even if federal law did not require a

 

         17   maintenance of effort, I think we would have recommended

 

         18   as a study team a hold harmless because we think -- we

 

         19   know that these legal, binding contracts are in existence. 

 

         20   They do need to be maintained.

 

         21             And, quite frankly, that's how we got to the

 

         22   original 12-year phase-in.  I think we realized after we

 

         23   thought about it because we're holding -- because we're

 

         24   holding everybody harmless or phase-in level, the 12 years

 

         25   was only hurting the winners and the so-called losers were

 

 

 

 


 

 

 

                                                                      36

 

          1   being held harmless anyway.  So we moved away from the 12

 

          2   years.

 

          3             But that level of effort of maintaining the

 

          4   districts where they were in the prior year would never

 

          5   drop off because of the exact reason that you mentioned.

 

          6             I would like to comment, though, on one other

 

          7   element which I think is important, and there's

 

          8   considerable debate about this, I think, among the

 

          9   education community and I think it is worth just putting

 

         10   it on the table, but it is a very complex issue and I

 

         11   think that issue is the extent to which we believe and

 

         12   subscribe to the notion that we have clear criteria for

 

         13   identifying students, therefore, students are objectively

 

         14   determined.

 

         15             Again, even if you believed students were

 

         16   objectively determined, which I think is a point of some

 

         17   contention in the literature -- but even if you believe

 

         18   that, then the services that are prescribed, though, for

 

         19   students is a matter of professional judgment.  And I

 

         20   think we would all agree that there's considerable

 

         21   latitude under that professional judgment.

 

         22             The literature would also suggest even though

 

         23   there are federal rules and regulations as well as state

 

         24   rules and regulations in regard to qualifications for

 

         25   special ed, the reality is that every study that's looked

 

 

 

 


 

 

 

                                                                      37

 

          1   at this shows a vast degree of latitude in regard to who

 

          2   is identified for special ed and who is not.

 

          3             But the point still remains that once a student

 

          4   is identified and a legal contract is formed, the State is

 

          5   obligated as well as the district to make good on that

 

          6   contract.  And that's the reason for the maintenance of

 

          7   effort.

 

          8                   REPRESENTATIVE WASSERBERGER:  Madam

 

          9   Chairman, if I could ask one more question -- I was

 

         10   thinking about the special program costs in the small

 

         11   districts and I think the reason we have less cost there

 

         12   is -- and the disparity between small districts is

 

         13   twofold.  Number one, chances are in one district you

 

         14   could have a student that requires much higher cost in

 

         15   qualifying special programs because of the uniqueness of

 

         16   the ruralness of Wyoming and that could last until that

 

         17   student reaches the age of 21 years.

 

         18             But secondly, I think also the reason why the

 

         19   costs are disparate in small school districts is because

 

         20   of small class size.  And I think that the special

 

         21   programs -- and the superintendent's people have written

 

         22   IEPs in such a way that the teacher using an aide can

 

         23   handle that student within the classroom because of the

 

         24   small number of students within the classroom.  I think

 

         25   that's probably the reason why we might be seeing that.

 

 

 

 


 

 

 

                                                                      38

 

          1             Did you look at that in any regards?

 

          2                   DR. PARRISH:  We did.  The first factor

 

          3   would be small class size.  I think that would contribute

 

          4   to the diseconomies of small scale which we do attempt to

 

          5   reflect in the cost model.

 

          6             But I think that would be true across all small

 

          7   districts and really wouldn't explain the considerable

 

          8   variation that we saw across small districts in

 

          9   expenditure or identification rates.

 

         10             But another factor that I actually just

 

         11   remembered in addition to poverty that we did look at

 

         12   because we tried to explain or understand the considerable

 

         13   variation we saw throughout the state to say to what

 

         14   extent do we believe that variation is based on some kind

 

         15   of a rational argument we could understand, so one was

 

         16   poverty and the other one was, indeed, the percentage of

 

         17   students in what we're going to call more severe,

 

         18   low-incidence, high-cost disabilities.

 

         19             And, again, we did not find a relationship, so

 

         20   while I would agree that if a district had a much higher

 

         21   percentage of students who were high-cost, low-incidence

 

         22   disabilities, we would expect spending to be higher and we

 

         23   believe under the cost model they would get more money now

 

         24   than they did under the 100 percent reimbursement we did

 

         25   not see statewide looking at relationship between the rate

 

 

 

 


 

 

 

                                                                      39

 

          1   at which students were identified low incidence, high cost

 

          2   and the amount of money districts were claiming.  And that

 

          3   was one of the disconcerting elements to us.

 

          4                   COCHAIR DEVIN:  We've really got two

 

          5   elements to the study.  One is the cost question, but the

 

          6   other is the great disparity in identification and

 

          7   services that's being delivered, which I think is quite --

 

          8   was pretty well established in the presentations we heard

 

          9   before, that there is tremendous disparity.

 

         10             Now, the rest of these issues, I think, we're

 

         11   getting good questions on, but -- did I see another

 

         12   question down here before we go on?  Senator Sessions.

 

         13                   SENATOR SESSIONS:  Madam Chairman, just a

 

         14   couple questions.  One is in those areas that you did not

 

         15   see -- that you can't correlate it to poverty and other

 

         16   things, is it just an attempt to -- is it just

 

         17   nonidentification of special students that are there that

 

         18   have not been identified that brings that, and then on

 

         19   some of the other high-cost areas, is it

 

         20   overidentification?  I mean, you know, do you feel that

 

         21   there's overidentification in some areas and

 

         22   underidentification in other areas?

 

         23                   DR. PARRISH:  Madam Chairman, Senator

 

         24   Sessions, that would be a determination of professional

 

         25   judgment, and my own professional judgment would be yes,

 

 

 

 


 

 

 

                                                                      40

 

          1   that we did see evidence of that.  But as mentioned in the

 

          2   report, you know, we're never really going to know.

 

          3             If we see, again, a district that year in and

 

          4   year out identifies 28 percent of its students as special

 

          5   ed, I guess to me my own judgment would be that that's a

 

          6   problem.  But no one is really going to know for sure

 

          7   until someone goes in and looks at those kids in that

 

          8   local circumstance.  Is it possible that 28 percent of

 

          9   those kids are truly eligible?

 

         10             And that's why we strongly recommended a

 

         11   bolstering, monitoring, technical support system on the

 

         12   part of the Department, because again, it is not designed

 

         13   to be just punitive.  I think the notion is if 28 percent

 

         14   really have special ed, good, we need to acknowledge that

 

         15   and make sure the resources are getting in there that need

 

         16   to be in there.

 

         17             If they're not really 28 percent but if they're

 

         18   really -- at least in my experience it is not because

 

         19   people are out there trying to do the wrong thing or a bad

 

         20   thing, but they have a model in their mind that every

 

         21   child who has a problem needs to be served through special

 

         22   education and our own analysis over the years suggests

 

         23   that's not the best model for all children.

 

         24             And one advantage, for example, of the approach

 

         25   that we're recommending is it would allow some latitude

 

 

 

 


 

 

 

                                                                      41

 

          1   for districts to serve children who may have, let's say,

 

          2   learning difficulties outside of special education.  Right

 

          3   now under the 100 percent reimbursement system if I have a

 

          4   child with a learning difficulty and I want to be rebursed

 

          5   for serving that child, I need to identify them as special

 

          6   ed and I can get 100 percent reimbursement.

 

          7             Under the cost model, while districts are

 

          8   required to maintain effort of what they've spent the

 

          9   prior year, new monies could be used in a more flexible

 

         10   way to serve children in a preventative mode.

 

         11             Either in that circumstance there are really 28

 

         12   percent kids, although I tend to be skeptical about that,

 

         13   but if there are, I suggest that technical support is

 

         14   needed to look at that.  And I think the Department would

 

         15   help and this cost-based funding would help.

 

         16                   COCHAIR DEVIN:  The point made earlier by

 

         17   one of the committee members was that the situation we're

 

         18   in now, one you allude to, one of our greatest areas of

 

         19   needed intervention is in the area of reading and learning

 

         20   disabilities and so forth.  But now we have to be in a

 

         21   situation where that student comes to the forefront by

 

         22   being mostly two standard deviations behind grade level. 

 

         23   And we spend about $2000 testing them to get them $80

 

         24   worth of reading help.

 

         25             And that's -- that total inflexibility of our

 

 

 

 


 

 

 

                                                                      42

 

          1   current system says you don't get a dime until you get a

 

          2   label on this child and submit the bill.  And so then

 

          3   there's no early piece, there's no piece that the district

 

          4   can be creative about addressing.  That discussion did

 

          5   occur earlier.

 

          6                   DR. PARRISH:  Madam Chair, can I comment

 

          7   on that?

 

          8                   COCHAIR DEVIN:  Yes.

 

          9                   DR. PARRISH:  I think it is an important

 

         10   point and a point I would like to emphasize from these

 

         11   findings because I think there is naturally a lot of

 

         12   emphasis on districts that appear that they will not be

 

         13   able to -- no one really losing in an absolute sense. 

 

         14   Everybody will get at least the amount they got last year,

 

         15   but some districts will not be able to grow as they have

 

         16   in the past.  There's emphasis on that.

 

         17             We have to place also emphasis on districts that

 

         18   are suddenly getting a lot of additional resources through

 

         19   this model.  And the situation you point out may be what's

 

         20   happening here.  Districts that were spending less than

 

         21   the model would have directed in the past, you can see one

 

         22   of two circumstances.  One is they could have just been

 

         23   underserving special ed kids, perhaps they weren't doing

 

         24   their job in special ed, that could well be.  Also, it

 

         25   could be that some of these districts were making

 

 

 

 


 

 

 

                                                                      43

 

          1   concerted efforts to serve children outside of special ed

 

          2   to the extent appropriate and that they could.

 

          3             Looking for alternatives, for example, reading

 

          4   interventions funded out of the general fund whereas other

 

          5   districts might say everybody who has a reading problem

 

          6   needs to be in special ed so I can get 100 percent

 

          7   reimbursement, other districts said I'm going to make

 

          8   every attempt to serve that child outside of special ed

 

          9   which, in my opinion, is what least restrictive

 

         10   environment requires.  And a strict interpretation of

 

         11   federal law looking at what is required for children, they

 

         12   got punished for doing the right thing and the cost model

 

         13   would provide them with the supplemental resources to the

 

         14   extent they've been underfunded in the past.  That's

 

         15   another side.  We don't want to lose sight of these

 

         16   districts as well.

 

         17                   COCHAIR DEVIN:  Senator Sessions.

 

         18                   SENATOR SESSIONS:  Madam Chairman, I find

 

         19   it -- I don't know how you go about convincing a parent if

 

         20   their child is not special education to sign that form

 

         21   that identifies them as special ed.  From my perspective

 

         22   and what I've watched, it is very difficult most of the

 

         23   time to get a parent to recognize and to sign that form. 

 

         24   And so I think it is more -- I don't know.  I think you're

 

         25   right in the sense that we need to look at the districts

 

 

 

 


 

 

 

                                                                      44

 

          1   that have the high costs and see if they are actually high

 

          2   cost.

 

          3             But I worry about the children coming in and

 

          4   when you see a problem, maybe we won't go after it as

 

          5   aggressively as maybe we should in the beginning if we're

 

          6   not allowing anybody to grow.

 

          7             And so I guess there's two sides to that.  I do

 

          8   worry about the aggressiveness because I believe we have

 

          9   to, especially in the younger grades.  That's where you do

 

         10   it.

 

         11                   COCHAIR DEVIN:  Senator Peck.

 

         12                   SENATOR PECK:  Dr. Parrish, how did you

 

         13   deal in your analysis with the large minority populations

 

         14   where, for example, in our county we have a high number of

 

         15   Indian children and many of them are taught differently. 

 

         16   Are they readily identified in need of special education

 

         17   or is there cognizance given to differences in cultural

 

         18   backgrounds?

 

         19                   DR. PARRISH:  Madam Chairman and Senator

 

         20   Peck, we did not build in a percent minority factor, if

 

         21   you will, into the cost model.  One could.  Again, we

 

         22   looked at the correlation -- we did not look at the

 

         23   correlation between percent minority and spending under

 

         24   the current system, but we did look at the correlation

 

         25   between percent poverty and the current system.  As you

 

 

 

 


 

 

 

                                                                      45

 

          1   know, there's some correlation between poverty and

 

          2   minority although it is not perfect.  And you can get into

 

          3   a long discussion whether it is really the minority status

 

          4   or poverty.

 

          5             But to the extent that minority students, high

 

          6   percent minority students were in smaller districts, we do

 

          7   believe that the cost model really does bolster funds to

 

          8   smaller districts, many of which have high percent

 

          9   minority students.

 

         10             Now, it bolsters it in those districts that were

 

         11   arguably underserving these students in the past.  It

 

         12   doesn't necessarily bolster it in those districts that

 

         13   were spending well above the state average in the past. 

 

         14   But could a poverty factor be built in?  It could.  We did

 

         15   not include one in the model in this case.

 

         16                   COCHAIR DEVIN:  Representative Simons, did

 

         17   you have a question?

 

         18                   REPRESENTATIVE SIMONS:  No, Madam

 

         19   Chairman.  I was just going to make the comment that in

 

         20   the northeast corner of the state, because the funding for

 

         21   education is so low in South Dakota, we have had families

 

         22   move into Wyoming because of the special education and

 

         23   they commute back and forth to South Dakota to work but

 

         24   live in Wyoming because of the fact that we are more --

 

         25   pay more attention to the special education.  This has

 

 

 

 


 

 

 

                                                                      46

 

          1   come through Appropriations doing some radical funding

 

          2   back under Dick Wallace to try to supplement some of this

 

          3   stuff.  But they have actually moved into Wyoming because

 

          4   we offer more than South Dakota does.

 

          5                   COCHAIR DEVIN:  We heard that on a number

 

          6   of our border areas, that not only are we seeing the

 

          7   students move, we're seeing the special education teachers

 

          8   move because they like the latitude of our system that

 

          9   provides what they feel is needed.

 

         10                   DR. SMITH:  Madam Chairman, I want to

 

         11   follow up on Senator Peck's notion about relationship to

 

         12   minority.  That is a very sort of sensitive area.  In

 

         13   fact, in other states, I know California, for example,

 

         14   overidentification of minority groups in special education

 

         15   has been the subject of lawsuits and in California, for

 

         16   example, I don't remember precisely, but African-American

 

         17   students are prohibited by law from being identified as

 

         18   mentally retarded.  So there are other -- because they

 

         19   were disproportionately identified.

 

         20             So poverty is a -- probably is a much more

 

         21   objective measure of need than minority status.

 

         22                   COCHAIR DEVIN:  Which I suppose you could

 

         23   take that and make an argument then for the flexibility of

 

         24   a cost-based system to allow those students to be

 

         25   addressed at an appropriate level, not have to be

 

 

 

 


 

 

 

                                                                      47

 

          1   special ed for their problems.

 

          2             Senator Anderson, you had a question or comment.

 

          3                   SENATOR ANDERSON:  Thank you, Madam

 

          4   Chairman.  A question that I have goes back somewhat to

 

          5   what Representative McOmie mentioned earlier in regard to

 

          6   the developmental disabilities and disabled,

 

          7   identification not only in Wyoming but across the United

 

          8   States, Wyoming is just now starting to take a more

 

          9   careful look at preschool, either identification pieces

 

         10   and recently early childhood development through increased

 

         11   preschool standards and whatnot.

 

         12             The question I have in regard to preschools and

 

         13   early childhood development:  Many of the programs in

 

         14   place are in place through the Department of Health and

 

         15   others are found primarily in the more densely populated

 

         16   areas of our state.  We have several experimental kind of

 

         17   pilot projects going on.  One in particular that I'll

 

         18   mention in Casper, Paradise Valley School, seems to reveal

 

         19   a fairly dramatic drop, particularly in those

 

         20   environmentally affected children as they come into

 

         21   school, a significant drop in the special education

 

         22   population as a result of efforts being put forward in

 

         23   those preschool programs.

 

         24             So I guess the question I have for you is in

 

         25   your study did you look at with regard to what current

 

 

 

 


 

 

 

                                                                      48

 

          1   cost differences might be between those more populated

 

          2   areas that have preschool programs and those less

 

          3   populated areas, smaller, more rural schools that are in

 

          4   many instances not able to provide preschool and other

 

          5   developmental programs?  And did you anticipate any

 

          6   significant cost differentials between so-called large

 

          7   schools and more rural schools in the future as a result

 

          8   of the impact, hopefully the positive impact of those

 

          9   preschool programs?

 

         10                   COCHAIR DEVIN:  And I guess when you

 

         11   answer that, if you might also incorporate -- you made a

 

         12   comment a little earlier that new monies coming in under

 

         13   the new federal system would, if we had a cost-based model

 

         14   with the latitude to develop new services, so if that

 

         15   integrates into that answer would you answer that because

 

         16   we're still trying to get a feel for how the infused --

 

         17   the expected new federal monies are going to impact our

 

         18   state and our programs.

 

         19                   DR. PARRISH:  Madam Chairman, Senator

 

         20   Anderson, just touching on the last point first because it

 

         21   is fresh in my mind, but I think it is all related, I

 

         22   would like to emphasize, I think the flexibility through

 

         23   the cost-based approach also applies to some state money,

 

         24   so I think the State could allow districts to -- in other

 

         25   words, under the old 100 percent reimbursement you had to

 

 

 

 


 

 

 

                                                                      49

 

          1   make an expenditure within special ed to be able to claim

 

          2   the money.

 

          3             Under the new system, because it is based on a

 

          4   more objective model separate from what you actually do,

 

          5   you could allow -- beyond the maintenance of effort floor

 

          6   allow state monies also to be flexible in regard to what

 

          7   districts can do with that money.  And many states do not

 

          8   require that all state money for special ed be spent on

 

          9   special ed.

 

         10             A recommendation -- I think we mentioned it in

 

         11   the report -- there be allowed some flexibility.  We did

 

         12   not recommend that that flexibility be applied to all

 

         13   programs, but we would recommend that it be applied to at

 

         14   least prevention-type activities or prereferrals, so other

 

         15   remediation type of activities.  So some flexibility could

 

         16   be gained for state dollars as well as federal dollars

 

         17   under the proposed system.

 

         18             Now, to talk about the preschool, it was not

 

         19   part of the study, specifically excluded from our scope of

 

         20   work.  We did not look at preschool programs per se, but I

 

         21   think the points you raise are extremely important.  We

 

         22   believe the regionalization we recommend could contribute

 

         23   to early intervention programs being implemented much more

 

         24   statewide rather than just in the urban centers.

 

         25             So while we did not look at early intervention

 

 

 

 


 

 

 

                                                                      50

 

          1   as part of this study, we've certainly looked at it in

 

          2   other studies and one we just completed for the State of

 

          3   Kentucky, for example, our number one recommendation, the

 

          4   very foremost recommendation, was a much bolstered effort

 

          5   in early intervention.  We really feel if we want to be

 

          6   cost effective in the use of special ed monies, it is

 

          7   really not to spend a ton of money after the problem has

 

          8   really gotten out of hand, but to intervene as early as

 

          9   possible to try to do preventative kinds of things.

 

         10             So I know while that doesn't directly answer

 

         11   your question, we did not fully anticipate the impact of

 

         12   varying levels of implementation throughout the state on

 

         13   cost, we did recommend and do recommend through the

 

         14   regionalization that this be something, again, that's

 

         15   provided to children statewide irrespective of their zip

 

         16   code.

 

         17                   COCHAIR DEVIN:  Do you need to move on to

 

         18   page 3?

 

         19                   DR. PARRISH:  Page 3 simply takes page

 

         20   2 -- kind of again, while we tried to keep everything to a

 

         21   base year of 2001-2002, we thought it was important under

 

         22   the model to show what might happen in a subsequent year.

 

         23             Now, again, numbers have changed since then. 

 

         24   The exact impact, if you were to adopt the model on the

 

         25   first year of implementation in terms of state cost and

 

 

 

 


 

 

 

                                                                      51

 

          1   everything else would remain to be seen because it is

 

          2   dependent on some numbers we don't have right now.

 

          3             I think there are a couple things shown here

 

          4   that are pretty fundamental in relation to our discussion,

 

          5   so I thought it was useful.

 

          6             The question I keep hearing is about losers and

 

          7   that how much money certain districts are going to lose. 

 

          8   And I think it is open to interpretation as to whether

 

          9   there are losers or not.  So I think this page fairly well

 

         10   sort of depicts it, but basically what you have here is

 

         11   the money that districts would have received, as you see

 

         12   in column C, what would be the State responsibility if the

 

         13   AIR model were in place, then we look at for 2002-2003 and

 

         14   what would be the State responsibility if the model were

 

         15   in place.

 

         16             And basically, what you see is that some

 

         17   districts gain no additional dollars.  So they lose in the

 

         18   sense they may not continue to grow at the rate they had

 

         19   been growing in the past.  So under 100 percent

 

         20   reimbursement as we say, we saw a lot of variation, a lot

 

         21   of districts spending more than we would project costs to

 

         22   be and they would lose in the sense that the latitude to

 

         23   continue to do that wouldn't be there.

 

         24             But in the sense of actual getting less dollars

 

         25   than they got the year before, as you see in column G, no

 

 

 

 


 

 

 

                                                                      52

 

          1   one gets less.  And in fact, you know, about a third to

 

          2   half of the districts are going to get more because the

 

          3   estimate is that they were spending less under the old

 

          4   system than what the cost model would project.

 

          5             Also keep in mind that these gains do not

 

          6   reflect any increase in federal funds which these

 

          7   districts would receive, nor does it reflect any change in

 

          8   cost of living which the state may choose to implement in

 

          9   the future as you go from one year to the next.  But I

 

         10   think in those two years there was no cost of living

 

         11   increase, as I understand it.

 

         12             But I think that's really what's shown, I think,

 

         13   on page 3.  There are some assumptions that need to be

 

         14   incorporated, but basically it shows how the maintenance

 

         15   of effort floor is put into place, what the state

 

         16   responsibility would be, and it sort of shows, I think,

 

         17   the notion of yes, there are some losers in the sense they

 

         18   don't gain to the extent they had in the past, but no

 

         19   losers to the sense that people get fewer dollars than

 

         20   they did the prior year.  And if you factor in federal

 

         21   funds, in fact, every district would get more dollars than

 

         22   in the prior year and some districts underfunded,

 

         23   arguably, in the past would get considerably more.

 

         24             Maybe I will move to 4 fairly quickly.  There

 

         25   may be questions, but I think 4 is fairly straightforward. 

 

 

 

 


 

 

 

                                                                      53

 

          1   4 takes the total from model A and B and says what if we

 

          2   did in implementation year one-half of A and one-half of

 

          3   B, how would that come out for each district.

 

          4             Again, the notion would be that would only be

 

          5   for one phase-in year, a hundred percent to one-half

 

          6   one-half year and then to a full implementation of the

 

          7   model is the idea.

 

          8                   COCHAIR DEVIN:  Is there any more

 

          9   discussion on the magnitude of the federal funds expected? 

 

         10   At the time of the implementation of the act they had said

 

         11   that federal funds would pay about 40 percent of the costs

 

         12   and, in fact, they've paid 7 and 8 percent, I think the

 

         13   high was maybe 12 percent.  I'm not sure where we are now,

 

         14   but I know that the target of 40 percent is being talked

 

         15   about.

 

         16             That's a very large amount of dollars.  I don't

 

         17   know that we may reach 40 percent, but even if we approach

 

         18   significant increases, do you have any idea of the

 

         19   magnitude and what the type of system you have in place --

 

         20   if those large increases of federal funds do come, what

 

         21   the impact of that is?

 

         22                   DR. PARRISH:  Madam Chairman, of course it

 

         23   is always a matter of speculation as to what the federal

 

         24   government will do.  My own guess would be that while the

 

         25   40 percent so-called guarantee -- and even that's

 

 

 

 


 

 

 

                                                                      54

 

          1   debatable whether it was ever a guarantee, but the 40

 

          2   percent, while it appeared imminent in the last couple

 

          3   years and I got a couple calls suggesting it was imminent,

 

          4   almost a done deal, actually it never came to fruition, my

 

          5   call is it is no more imminent than it was then.

 

          6             My prediction would be it is not imminent we're

 

          7   going to move to 40 percent.  Adjudging future behavior by

 

          8   past behavior, we do seem to see a ground swell of

 

          9   support, though, for an increased role in supporting

 

         10   special ed and it seems to be bipartisan.

 

         11             So we have seen considerable increases in

 

         12   federal funds over the last few years.  So I think it is

 

         13   reasonable to expect that we would continue to see

 

         14   nontrivial increases to federal government, again depends

 

         15   on what you measure the 40 percent against.  But let's say

 

         16   we're at about 12 percent in terms of federal support

 

         17   right now.  But the federal funds have probably about

 

         18   doubled over the last two to three years.

 

         19             So I think we would expect to see a continuing

 

         20   influx.  However, with the question as it is, the

 

         21   possibility of a war, I think there are a lot of wild

 

         22   cards that are making that a little hard to predict.

 

         23             I think the impact, let's say, if we do project

 

         24   that the federal government will continue to increase as

 

         25   it has in the past, I guess one interpretation in my

 

 

 

 


 

 

 

                                                                      55

 

          1   opinion would be that we questioned as a study team the

 

          2   ability of the state to sustain a 100 percent

 

          3   reimbursement in perpetuity.  And it does provide, in our

 

          4   opinion, a good opportunity now with the fairly

 

          5   substantial influx of new federal funds as a time in which

 

          6   a transition could be made that could be a very soft

 

          7   transition, a relatively easy transition for districts.

 

          8             We think that there could be some added

 

          9   flexibility, new federal funds.  20 percent of new federal

 

         10   funds through special ed can be used for purposes other

 

         11   than special ed.  They can be used to offset some local

 

         12   efforts.  So there is some flexibility, also, that comes

 

         13   through new federal dollars.

 

         14             Just one other point, if the federal government

 

         15   would ever move to a huge influx, I think there has been

 

         16   considerable discussion on the table that that 20 percent

 

         17   would probably have to broaden, that probably we could not

 

         18   expect the maintenance of effort just to stand as it is at

 

         19   the same time we poured huge amounts of new federal money

 

         20   into this program.

 

         21             Again, my own view is that's probably not very

 

         22   likely anyway, but that's the suggestion.

 

         23                   COCHAIR DEVIN:  Senator Scott, you said

 

         24   you had a question.

 

         25                   SENATOR SCOTT:  I would comment from what

 

 

 

 


 

 

 

                                                                      56

 

          1   we heard back at the NCSL fall forum, I would agree with

 

          2   Dr. Parrish's analysis of what is likely to happen.  The

 

          3   demands on feds from the war on terrorism and the

 

          4   exploding health care costs amongst other things are going

 

          5   to restrain a desire that I think is again right at the

 

          6   front seat to increase the funding here.  So I don't think

 

          7   you're going to look at 40 percent, at least right away,

 

          8   although some increases are necessary.

 

          9             I was wondering -- I know we talked about it at

 

         10   the last meeting.  Can you give us a quick summary of how

 

         11   the AIR cost model works?

 

         12                   COCHAIR DEVIN:  You're speaking of page 4?

 

         13                   SENATOR SCOTT:  Or page -- you see it on

 

         14   page 2.  It is all through here, the State responsibility

 

         15   under the AIR cost model.  How does that model work?

 

         16                   DR. PARRISH:  Madam Chairman, Senator

 

         17   Scott, I suspect I may need to go a little bit back to the

 

         18   beginning because, as you mentioned, there are probably

 

         19   people who haven't.  I won't belabor it, but people can

 

         20   ask additional questions.

 

         21             But to make sure that we're all kind of on the

 

         22   same page with the background, basically the AIR model

 

         23   started with an attempt to define or specify adequate

 

         24   special education services.  I talked a little bit about

 

         25   it at the onset, but again to recapitulate that a little

 

 

 

 


 

 

 

                                                                      57

 

          1   bit, we attempted to identify all of the areas of cost

 

          2   that we believe pertain to K-12 special education and

 

          3   those are the so-called ingredients of the program that

 

          4   were then costed out to attempt to develop an overall

 

          5   estimate based on these sort of resource standards of what

 

          6   we think the cost would be in each district had they

 

          7   implemented special ed under this uniform set of

 

          8   cost-based assumptions and cost-based uniform resource

 

          9   standards.

 

         10             So I can answer more questions about that, if

 

         11   desired.  But that's kind of where the numbers came from.

 

         12             So then it turns us to, let's just say, page 2,

 

         13   and we see, then, in column A, that what is the amount for

 

         14   2001-2002 that would be produced for each district.  If

 

         15   you look at column A, it is really saying that had these

 

         16   uniform cost-based, resource-based standards been applied

 

         17   in every district in that year, what would we estimate

 

         18   their cost to be for serving special education students. 

 

         19   And that's what you see in column A.

 

         20             And it is important that we say, well, what

 

         21   year, because the salaries that we use, the average salary

 

         22   used to move from resource standards, in other words, so

 

         23   many teachers per student and so on to dollars is, of

 

         24   course, dependent upon the salary amount that you use,

 

         25   average salaries.  And we used them for 2001-'02 which is

 

 

 

 


 

 

 

                                                                      58

 

          1   how the amounts are derived.

 

          2             What we see in column A is our independent, sort

 

          3   of cost-based assessment of the cost of providing adequate

 

          4   special ed services in every district throughout the state

 

          5   in the year 2001-2002.

 

          6             How do we get to C-1 which is the State

 

          7   responsibility -- Senator Scott, am I moving along the

 

          8   lines would you like to move here?

 

          9                   SENATOR SCOTT:  No.  Madam Chairman, see

 

         10   if I can explain.  If I got that answer to that question

 

         11   on the floor, I would say, okay, fine, how does it work,

 

         12   how do you get there, where does the model come from?  You

 

         13   assert that it is cost-based.  What evidence do you have

 

         14   that it is cost-based?

 

         15                   DR. PARRISH:  So we're really, Madam

 

         16   Chairman, Senator Scott, going back to the more

 

         17   fundamental elements of column A?  That's helpful to know

 

         18   kind of where -- because the model has sort of the

 

         19   underpinning, conceptual elements and then how you would

 

         20   implement it.

 

         21             Going back to the underpinning or conceptual

 

         22   elements, I think conceptually it is very much in

 

         23   keeping -- and, Dr. Smith, I believe, would agree, it is

 

         24   very much in keeping with the notion underlying the

 

         25   overall MAP model which sort of underlies all of the rest

 

 

 

 


 

 

 

                                                                      59

 

          1   of your finance formula in the state, and that is that

 

          2   rather than sort of throwing money at a problem, we want

 

          3   to say, well, first of all, what resources do we think are

 

          4   appropriate to provide adequate services.

 

          5             And the only real way that we have been able to

 

          6   come up as an education research -- well, there have been

 

          7   other ways.  I shouldn't say that.  At least in terms of

 

          8   going to the ingredients and trying to specify things like

 

          9   student-to-teacher ratios and therapist-to-student ratios

 

         10   and so on that we've come to rely upon is professional

 

         11   judgment.  I mean, there's no book that will be definitive

 

         12   about this, although there are places to look other than

 

         13   just professional judgment of educators in Wyoming, and

 

         14   that is what practices do we see throughout the country.

 

         15             Even though those reflect a more positive

 

         16   standard rather than a normative standard of what we

 

         17   should be doing, some implication of what we should be

 

         18   doing I think can be derived from what do we see people

 

         19   are doing in various constituencies.  That's a context for

 

         20   starting in the definition of what reasonable entails.

 

         21             Looking at other states, then, we also could

 

         22   turn to some professional organizations, not many, who

 

         23   were willing to get off the dime and say here's what we

 

         24   think a reasonable caseload is for a speech therapist, but

 

         25   most professional organizations did not want to take a

 

 

 

 


 

 

 

                                                                      60

 

          1   stand on that.  To the extent we could find that, research

 

          2   about effective practice, I think we really did a very

 

          3   broad search to help us to try to define appropriate

 

          4   standards of service for students under varying

 

          5   conditions.  So we specified those standards and then we

 

          6   simply costed them out to come up with what you see in

 

          7   column A.

 

          8             That's kind of a quick explanation.  I'm sure

 

          9   there may be other questions.

 

         10                   COCHAIR DEVIN:  Senator Scott.

 

         11                   SENATOR SCOTT:  So basically what you did

 

         12   was where there were some caseload standards, you used

 

         13   them, but by and large there weren't, so what you did was

 

         14   you used the caseload standards you thought were

 

         15   reasonable and costed those out; is that right?

 

         16                   DR. PARRISH:  Madam Chairman, Senator

 

         17   Scott, I would only amend it by you.  In other words, I

 

         18   don't believe it was my judgment or just the study team,

 

         19   although ultimately the study team had to do some sort of

 

         20   what I call more tweaking around the edges or

 

         21   determination or balancing from what we heard from our

 

         22   committee, as well as I will admit we based it to a large

 

         23   extent on what we saw as current practice in Wyoming.

 

         24             And there wasn't that much disparity between

 

         25   what the committee thought was appropriate and what we saw

 

 

 

 


 

 

 

                                                                      61

 

          1   as current practice.  But current practice does go back to

 

          2   that sort of notion of average.  While we saw an average

 

          3   caseload and we had a committee to say does that seem

 

          4   appropriate, sometimes we felt we needed to lower it, we

 

          5   felt we did need to lower it certainly for remote

 

          6   situations or other situations that would warrant a

 

          7   lowering, but it was ensconced, I think, largely in

 

          8   Wyoming professional opinion as well as in Wyoming current

 

          9   practices on average.

 

         10             We feel that's appropriate because we believe

 

         11   that what is appropriate within the context of the state

 

         12   of Wyoming may not necessarily be appropriate within the

 

         13   context of the state of New York or California, that there

 

         14   are -- while we're all governed by federal law, you have

 

         15   circumstances unique to each state that need to meet

 

         16   professional judgment within the context of the state.

 

         17                   COCHAIR DEVIN:  It is my understanding and

 

         18   from previous discussions that the committee that advised

 

         19   you of professionals from the state of Wyoming had a fair

 

         20   amount of discussion on this subject and a fair amount of

 

         21   input.

 

         22                   DR. PARRISH:  Madam Chairman and Senator

 

         23   Scott, we met, I'm just guessing, but I think at least a

 

         24   half a dozen times full-day meetings, so there was a lot

 

         25   of input, and my sense of it is, and I'm sure there are

 

 

 

 


 

 

 

                                                                      62

 

          1   committee members here who may want to speak, but my sense

 

          2   of it was that we had fairly solid agreement about the

 

          3   standards.

 

          4             I think where we disagreed, the study team

 

          5   recommendation differs with the desire of the committee

 

          6   was less around the standards, per se, than how they were

 

          7   to be implemented.  I think the committee desired that

 

          8   those standards be used only as guidelines for monitoring

 

          9   and not a basis for funding whereas the study team

 

         10   ultimately believed they should be a basis for funding.

 

         11             On the standards themselves, while I won't say

 

         12   there was complete unanimity, I think we realized a fairly

 

         13   decent consensus.

 

         14                   COCHAIR DEVIN:  Senator Scott.

 

         15                   SENATOR SCOTT:  Then you applied them to

 

         16   the district's ADM or the district's ADM, did you modify

 

         17   that by any other factors?

 

         18                   DR. PARRISH:  We did not.  We applied to

 

         19   the district's ADM and it was only modified to the extent,

 

         20   again, that we saw remote schools.  There was a remote

 

         21   school factor.  And we also modified it to the extent that

 

         22   we did put schools into size categories and we modified it

 

         23   for the administrative component which we felt was not an

 

         24   artifact of ADM but we tried to reflect diseconomies of

 

         25   small scale.

 

 

 

 


 

 

 

                                                                      63

 

          1                   SENATOR SCOTT:  Madam Chairman, you did

 

          2   not modify then by any factors you thought would lead to

 

          3   more special ed kids?

 

          4                   DR. PARRISH:  Madam Chairman and Senator

 

          5   Scott, I believe that is correct.  That was our intent. 

 

          6   And I can't think of any incentive.  One always thinks

 

          7   about those.  I suppose we could have missed some, but I

 

          8   believe not.

 

          9                   COCHAIR DEVIN:  Senator Sessions.

 

         10                   SENATOR SESSIONS:  Madam Chairman, I just

 

         11   have a model -- I have a question about the actual

 

         12   practices of the model.  These numbers we see here, are

 

         13   they going to -- are you going to -- are the rules and

 

         14   regs going to be done differently so that districts that

 

         15   get the recommended additional money then can -- do they

 

         16   still have to apply and justify a special ed student and

 

         17   all of this kind of stuff?  Do they automatically get that

 

         18   money?  Does it still remain under the same structure that

 

         19   we have now?

 

         20             Are they allowed to go up to that and then -- I

 

         21   mean, you know, these recommendations, you see some and

 

         22   then those that remain zero, no matter what happens they

 

         23   remain zero?  I mean, no matter what happens within their

 

         24   districts, no matter what the identification process is

 

         25   that shows increased funding, then we take it away from

 

 

 

 


 

 

 

                                                                      64

 

          1   the actual funding out of the regular classroom in order

 

          2   to help special ed students?  Tell me how that works.

 

          3                   COCHAIR DEVIN:  Well, I think a piece of

 

          4   that that's important to remember is in the model that we

 

          5   cost-based this, it would go forward as a piece of the

 

          6   block grant and the district would get that.  Then they

 

          7   would also be eligible for the contingency fund if they

 

          8   had high numbers of justifiably identified students, they

 

          9   could justify that theirs was higher and it was justified. 

 

         10   That was one criteria I had written down from the earlier

 

         11   discussion, a particularly high-cost student or a

 

         12   particularly high-cost personnel issue were at least three

 

         13   issues you could go to the contingency fund for, and then

 

         14   new monies which have been infused into the system after

 

         15   this year that's demonstrated and would be continued, any

 

         16   new monies could then address some of those issues.

 

         17             Now, I think those -- I don't think we can

 

         18   consider one piece of this without the other without

 

         19   looking at the contingency piece too and the new monies

 

         20   piece.

 

         21             I'm sure you have --

 

         22                   DR. PARRISH:  Madam Chairman and Senator

 

         23   Sessions, I think you answered it adequately and fully as

 

         24   far as I can see.  There may be -- I don't know if you --

 

         25   I think the bottom line is, yes, districts would get the

 

 

 

 


 

 

 

                                                                      65

 

          1   additional funds.  They wouldn't need to apply for it.  I

 

          2   think the notion is that their costs -- these are costs

 

          3   that have been there all along, that they have not either

 

          4   claimed -- perhaps they've served these children outside

 

          5   of special ed.

 

          6             Perhaps these children are underserved.  I think

 

          7   that possibility is real and we thought it was important

 

          8   we have increased regionalization to provide assistance to

 

          9   them.  I think we really need to look at -- in fact, we

 

         10   heard a number of districts say we don't provide speech

 

         11   therapy because we can't hire a speech therapist.  That is

 

         12   out of compliance with federal law.  If a child is

 

         13   eligible for speech therapy, we've got to find a way to

 

         14   get that child speech therapy.  We need to give you the

 

         15   money and the technical assistance to make sure it

 

         16   happens.

 

         17             For districts that get zero additional new

 

         18   money, keep in mind they probably would get some

 

         19   additional new funds through federal because that's not

 

         20   shown here.  Be that as it may, let's say for a moment

 

         21   they get zero additional new money.  If they can justify

 

         22   they have additional new costs, they can apply for an

 

         23   offset against the contingency funds and that's the exact

 

         24   reason for that fund.

 

         25                   COCHAIR DEVIN:  Representative Robinson.

 

 

 

 


 

 

 

                                                                      66

 

          1                   REPRESENTATIVE ROBINSON:  Madam Chairman,

 

          2   Dr. Parrish, in part of your discussion this morning,

 

          3   well, a lot of discussion has been hinged around a need to

 

          4   change from the 100 percent reimbursement when I believe

 

          5   you said there hasn't been any evidence that it has been

 

          6   abused to any great extent.

 

          7             The other part of the discussion has been around

 

          8   how identification takes place and whether or not the

 

          9   districts are identifying -- overidentifying or

 

         10   underidentifying the students in need of special

 

         11   education.

 

         12             I feel that our first responsibility is to

 

         13   providing the best possible education for all children in

 

         14   Wyoming, and in doing that, it would seem that the first

 

         15   step would have to be in looking at how the children are

 

         16   being identified and solving that problem or getting the

 

         17   answer, at least, to that question, whether or not they're

 

         18   being identified properly, before we decide that we're not

 

         19   funding it properly.

 

         20             What is your feeling on that?  Wouldn't it make

 

         21   more sense to look at how districts are identifying

 

         22   children and making sure that they're being identified

 

         23   properly before we make this big decision on how we fund

 

         24   it or that the system that we're using right now is not

 

         25   the proper system?

 

 

 

 


 

 

 

                                                                      67

 

          1                   DR. PARRISH:  Madam Chairman,

 

          2   Representative Robinson, I think you raise a good point

 

          3   and certainly it is an alternative this committee could

 

          4   consider.  Our final recommendation, though, was that we

 

          5   believed it would be more effective to do the two

 

          6   simultaneously, and part of the reason being that we think

 

          7   that this is going to be an ongoing process and it is a

 

          8   difficult process.

 

          9             It is a process in which all states as well as

 

         10   the federal government are struggling with right now. 

 

         11   Special ed identification rates across the country are

 

         12   going up.  They have gone up every year since the passage

 

         13   of IDEA, and it is really a national issue to try to

 

         14   understand what is occurring, what's driving that, what is

 

         15   going on and it is a struggle that will continue for a

 

         16   long time.

 

         17             And I think tying funding to that in a way that

 

         18   casts light on it will be helpful, not harmful, especially

 

         19   given the cost-based model and the way we have recommended

 

         20   its implementation we believe will begin to provide

 

         21   adequate funding for all districts.  We believe it will

 

         22   provide relief to districts we believe have been

 

         23   underfunded in the past rapidly.

 

         24             And we also believe that the bolstered state

 

         25   department recommendation we made is essential for what

 

 

 

 


 

 

 

                                                                      68

 

          1   you suggested to occur, that we really need to look more

 

          2   carefully at what districts are doing to provide them with

 

          3   guidance.

 

          4             But I think the last point I would like to make

 

          5   is as we move to a cost-based system, what it really

 

          6   allows us to do under the identification issue is to

 

          7   provide more flexibility because as long as we say that

 

          8   you really cannot get supplemental help for children and

 

          9   that decision about whether you place them in special

 

         10   education or not -- and again we're talking children on

 

         11   the boundary, okay.  They do not qualify for supplemental

 

         12   help until you place them in special ed and claim 100

 

         13   percent of whatever you choose to spend or whatever the

 

         14   committee decides is appropriate, that we remove a certain

 

         15   amount of flexibility to serve students in other ways as

 

         16   well.

 

         17             We think both nationally and within the state

 

         18   that's part of the long-term solution, looking for

 

         19   alternatives to special ed for children who have

 

         20   deficiencies in areas like reading which we know is a

 

         21   national problem as well as a problem in Wyoming.

 

         22                   COCHAIR DEVIN:  I think that's a

 

         23   distinguishing difference between the bills you will be

 

         24   considering.  One requires identification of the student

 

         25   as a special education student and the other bill would

 

 

 

 


 

 

 

                                                                      69

 

          1   not require that identification, the district would just

 

          2   receive the monies.

 

          3             And now we have also -- and Mary, I'm not sure

 

          4   whether these would be at your fingertips.  We've used

 

          5   terms.  It is not runaway inflation or runaway abuse, and

 

          6   yet I think we also have to have in mind, we've had, as I

 

          7   recall, double-digit inflation in this area for at least

 

          8   the last three years.

 

          9                   MS. BYRNES:  Madam Chairman, I do have

 

         10   last year.  The rate of growth on this issue has been

 

         11   about 11 percent going from school year '01 to school year

 

         12   '02 expenditures, and these are reimbursed the next year

 

         13   from the State.  The 11 percent was the last rate we've

 

         14   had experience with.  On your pages you can look, you can

 

         15   see on page 2, column D, those figures were spent in

 

         16   school year '01, $88 million, and you can compare that to

 

         17   page 1, column A, these were the most recent expenditures

 

         18   for school year '02 at 97.7 million.

 

         19                   COCHAIR DEVIN:  So our struggle has been

 

         20   to get a grip on whether this is realistic or not, but it

 

         21   is certainly significant.  And everybody's definition of

 

         22   runaway, I guess, varies, but it might be a poor word to

 

         23   use.  I kind of wanted the committee to get a numbers

 

         24   concept of what's happening, and I think there have been a

 

         25   series of years where this has looked very similar, so

 

 

 

 


 

 

 

                                                                      70

 

          1   we're seeing a trending that has been pretty consistent

 

          2   upward in a fairly steep manner.  Our attempts have been

 

          3   to try to get a handle.

 

          4                       (Discussion held.)

 

          5                   COCHAIR DEVIN:  Go ahead.

 

          6                   REPRESENTATIVE WASSERBERGER:  Madam

 

          7   Chairman, just one question.  For Dr. Parrish, I think

 

          8   that hasn't the federal requirements in IDEA expanded over

 

          9   the years and that's the reason for the increase in

 

         10   expansion of special program students.  As the federal

 

         11   government expands what is allowable for a special program

 

         12   student, then districts have responded because if they

 

         13   don't, they are legally liable for not allowing that

 

         14   student to receive special programs?

 

         15                   DR. PARRISH:  Madam Chairman and -- I'm

 

         16   sorry -- Representative Wasserberger.

 

         17                   COCHAIR DEVIN:  Wasserberger.

 

         18                   DR. PARRISH:  But I will write it down

 

         19   this time.  I apologize.

 

         20             You're correct, the requirements have increased

 

         21   over the years and in some instances, many instances,

 

         22   states have chosen to add requirements on top of what the

 

         23   federal government requires.

 

         24             So, you know, would we expect some growth in

 

         25   relation to the expanded requirements?  I think we would. 

 

 

 

 


 

 

 

                                                                      71

 

          1   We are looking at comparative growth, however.  We see

 

          2   growth growing at a faster rate in Wyoming.

 

          3             Just referring back also to the point made by

 

          4   Senator Devin, I think it is important to make the

 

          5   distinction between abuse, runaway and sort of increases

 

          6   that are worrisome, I guess, from a policy perspective.

 

          7   And I think that increases that are worrisome from a

 

          8   policy perspective is one of the reasons that led us to

 

          9   the recommendation of moving to a cost-based system.

 

         10             And I would also like to mention that a number

 

         11   of districts told us when we talked about the possible

 

         12   dilemma between sort of the blank check and the fact that

 

         13   there hasn't been runaway spending anyway, and many people

 

         14   told us that's because we knew a review of this system is

 

         15   imminent, we're expecting it to come, we know this could

 

         16   end anytime now, so I do worry about an endorsement that

 

         17   would suggest it is going to continue into perpetuity and

 

         18   what that might mean in terms of the potential.

 

         19             We know the potential is there 100 percent. 

 

         20   There's a reason why no state in the union has anything

 

         21   close to 100 percent reimbursement, so that's another area

 

         22   in which we had concern.

 

         23                   COCHAIR DEVIN:  I think most states range

 

         24   from 50 percent to 80 percent, in that neighborhood.

 

         25                   DR. PARRISH:  Madam Chairman, it is

 

 

 

 


 

 

 

                                                                      72

 

          1   actually 50 percent, I believe, is the next highest.  So

 

          2   it is 50 percent to about 10 percent.

 

          3             Now, having said that, let me be clear about

 

          4   that.  That's of those states who have percent

 

          5   reimbursement systems.  There are states that have other

 

          6   kinds of systems that do fund 80 percent of what appears

 

          7   to be total spending.  But it is not a reimbursement

 

          8   system so districts don't have the latitude to spend

 

          9   whatever they like and get reimbursed.  But states do pay

 

         10   a larger share than 50 percent.

 

         11                   COCHAIR DEVIN:  We need to take a break

 

         12   really shortly here.  Did you have a quick question?

 

         13                   SENATOR SESSIONS:  I would like -- the

 

         14   suggestion on the commingling of the funds, when we take

 

         15   the state special ed funds and fuse them into the block

 

         16   grant when our block grant -- we're still struggling to

 

         17   make it accurate and to meet the court mandate at this

 

         18   time, I'm very uncomfortable with that.

 

         19             My personal view is I think we ought to keep

 

         20   special education on the outside of it, whether we go to

 

         21   the cost-based model or the hundred percent, so that

 

         22   actually you can track, you've got a much better knowledge

 

         23   of it and keep it out of that block grant.  Until we solve

 

         24   the problems within the block grant model according to the

 

         25   Supreme Court I'm very uncomfortable with fusing that

 

 

 

 


 

 

 

                                                                      73

 

          1   money together.

 

          2                   COCHAIR DEVIN:  That question may have a

 

          3   rather lengthy answer.  Can we take it up after the break?

 

          4                   REPRESENTATIVE WASSERBERGER:  Madam

 

          5   Chairman, didn't our old classroom unit reimburse at 80

 

          6   percent?

 

          7                   COCHAIR DEVIN:  85 percent.

 

          8             Let's take a 15-minute break.

 

          9                  (Recess taken 10:20 a.m. until 10:40 a.m.)

 

         10                   COCHAIR DEVIN:  Let's go ahead.

 

         11             Dr. Parrish, the answer to the question.

 

         12                   DR. PARRISH:  Madam Chairman, Senator

 

         13   Sessions, if I can remember -- if I don't get the question

 

         14   exactly right, correct me, but I remember the issue was

 

         15   around commingling.  Keep in mind, of course, the

 

         16   maintenance of effort requirement.  And so whether the

 

         17   check for special ed comes in a separate check or whether

 

         18   it comes rolled into -- a separate check or it is just one

 

         19   single check for the block grant, the maintenance of

 

         20   effort requirement as required by the federal government

 

         21   still requires an accounting for and being able to move as

 

         22   much money was spent on special ed out of state and local

 

         23   funds in the current year as in the subsequent years.

 

         24             So there's a requirement already in place that

 

         25   says you cannot spend less than you did in the prior year,

 

 

 

 


 

 

 

                                                                      74

 

          1   except under a few circumstances.  To me it is less of an

 

          2   issue whether it is one check or two but the issue of

 

          3   whether all supplemental monies beyond that should be

 

          4   required to be spent on special ed is a determination, I

 

          5   think, of course the State will have to make.

 

          6             Our recommendation would be that some

 

          7   flexibility be allowed in terms of the supplemental funds

 

          8   beyond the maintenance of effort, but that the flexibility

 

          9   would only be around spending it on special ed or

 

         10   related -- what we would call related areas such as

 

         11   prereferral intervention or specific remedial services

 

         12   designed to look at alternatives for children other than

 

         13   just placing them in special ed.  But that certainly is a

 

         14   determination the State would have to make and the states

 

         15   vary considerably in regard to the practice on those

 

         16   requirements.

 

         17                   SENATOR SESSIONS:  Madam Chairman, I have

 

         18   a question and maybe the lawyers in the room can answer

 

         19   this.

 

         20             If we put the special ed funding into the block

 

         21   grant, then, to me it would immediately come under the

 

         22   scrutiny of the court.  It would be part of that whole

 

         23   thing on whether our block grant is whatever we're trying

 

         24   to work out the problems with it.

 

         25             Then you get the legal question of if you go to

 

 

 

 


 

 

 

                                                                      75

 

          1   a cost-based model and you've got -- and there's some

 

          2   problem with a cost-based model and you have someone

 

          3   asking a question if you're only going to pay me so much

 

          4   for a special ed student and that costs my district more

 

          5   than that to provide those services, then that is not

 

          6   cost-based.  As a consequence, the other part that's

 

          7   supposed to be cost-based in that model, you will be

 

          8   taking money out of the regular education student's

 

          9   funding for special ed.

 

         10             And in addition to putting the funds together, I

 

         11   guess if I -- and I don't mind voting for money for

 

         12   education, as probably everybody knows, but if I'm going

 

         13   to be committed to a special ed student and that funding,

 

         14   I want to know it goes to the special ed student.

 

         15             And I'm not in the habit of bashing school

 

         16   districts, but I worked in various ones long enough to

 

         17   know that I want special ed funding to go to special ed

 

         18   students, period.  And we have enough other funding,

 

         19   hopefully, to do the other parameters that we need to do

 

         20   in education.  But I guess I see enough fragile people in

 

         21   our schools and enough fragile people coming into our

 

         22   schools as kindergarten and first grade that I want the

 

         23   money there for them for their education.

 

         24                   COCHAIR DEVIN:  I guess the only comment

 

         25   you might have to that is we're not able to use any of

 

 

 

 


 

 

 

                                                                      76

 

          1   these monies or the new monies under this piece to help

 

          2   some of those fragile individuals unless they have a

 

          3   special education identifier, and that's part of the

 

          4   dilemma here that we're trying to decide in these bills.

 

          5             Senator Anderson.

 

          6                   SENATOR ANDERSON:  Thank you, Madam

 

          7   Chairman, for auditing these questions over here in left

 

          8   field.

 

          9             There was a practice that was coming in when I

 

         10   retired from classroom teaching -- I retired as a teacher

 

         11   about six years ago -- a practice referred to as

 

         12   inclusion.  The practice of inclusion meant basically that

 

         13   special education children were left in the regular

 

         14   classroom in terms of the least restrictive environment

 

         15   and the special education teacher collaborated closely

 

         16   with the regular classroom teacher and actually at times

 

         17   came into the classroom.

 

         18             The question I have has two parts.  First of

 

         19   all, did you look at the practice of inclusion, is that

 

         20   practice continuing, is it increasing, how does that

 

         21   affect costs?

 

         22             The second part of the question is in regard to

 

         23   do we want a, quote, bright line between special education

 

         24   and regular education?  Given the collaboration between

 

         25   special education and regular education teachers, does

 

 

 

 


 

 

 

                                                                      77

 

          1   that, in fact, become problematic in regard to the mixing

 

          2   and mingling with regard to the bright line between

 

          3   special education funding and other funding?

 

          4                   DR. PARRISH:  Madam Chairman, Senator

 

          5   Anderson, those are good questions.  In response to the

 

          6   last one, yes, inclusion does -- is very difficult in

 

          7   terms of drawing that sort of distinctive line.  Of

 

          8   course, least restrictive environment, as you know, is not

 

          9   a new concept.  It was written into the original law.  New

 

         10   emphasis has been placed on it in the last probably

 

         11   decade, and we do see more inclusion of students and that

 

         12   does make it more difficult, that notion of tracking

 

         13   dollars to students.

 

         14             It was much easier, although arguably not better

 

         15   for students when we placed them off in the trailer and

 

         16   knew how much the trailer cost and everything was

 

         17   separate.  It was much easier to keep track of funds.  It

 

         18   is much more difficult now.

 

         19             In terms of the inclusion in regard to the

 

         20   study, one of the reasons why we did the resource

 

         21   standards the way we did in a fairly generic way was

 

         22   exactly because of the increased prevalence of

 

         23   inclusionary practices, if you will.

 

         24             When we did a study of special ed in Illinois

 

         25   and Alaska some 20 years ago, that was a similar study to

 

 

 

 


 

 

 

                                                                      78

 

          1   this one in the sense that it was looking at resource

 

          2   standards and what should be out there.  At that time we

 

          3   were able to say what should a self-contained classroom

 

          4   for special ed kids look like, what should a resource room

 

          5   look like, what should related services look like.  We

 

          6   could define it in very specific types of services.  We

 

          7   did not do that 20 years later, for one reason, the extent

 

          8   to which we see inclusion.  So we looked at more overall

 

          9   ratios rather than trying to say where a child is being

 

         10   served because we see so much variability.

 

         11             Were we able to track the costs of inclusion

 

         12   over time in a comparative sense?  We were not.  Again,

 

         13   this wasn't a longitudinal study, is one reason, but as a

 

         14   part of the national study at the very least we were

 

         15   looking at the cost of serving students in mainstreaming

 

         16   situations as opposed to more segregated situations. 

 

         17   Those data haven't fully been released yet or fully

 

         18   analyzed, but they will be forthcoming in the next year.

 

         19                   COCHAIR DEVIN:  Any other questions?

 

         20                   REPRESENTATIVE MCOMIE:  Madam Chairman.

 

         21                   COCHAIR DEVIN:  Representative McOmie.

 

         22                   REPRESENTATIVE MCOMIE:  Madam Chairman, I

 

         23   would like to ask, I think Dr. Parrish mentioned about 28

 

         24   percent, stated 28 percent, some of these percentages and

 

         25   where they came from, how they were arrived at, where you

 

 

 

 


 

 

 

                                                                      79

 

          1   went to get your measurements.  Did you get them from the

 

          2   Department of Ed, from the school districts?  Where did

 

          3   all of this come from?

 

          4                   COCHAIR DEVIN:  Were you speaking of the

 

          5   numbers, percents identified in each district?

 

          6                   REPRESENTATIVE MCOMIE:  Yes.

 

          7                   DR. PARRISH:  Madam Chairman and

 

          8   Representative McOmie, we collected the data independently

 

          9   through survey analysis from districts, but we have some

 

         10   data directly provided to us by districts, but I think

 

         11   probably the data that -- well, I know the data we

 

         12   presented to the committee was data from the department,

 

         13   so primarily they come from the department and from the

 

         14   state's SEEDS database that lists every special education

 

         15   student and the services they receive.

 

         16                   REPRESENTATIVE MCOMIE:  You didn't go to

 

         17   each school?  Whatever the department had gathered is what

 

         18   you used?

 

         19                   DR. PARRISH:  To be clear, we did survey

 

         20   each school, so we had survey information.  We primarily

 

         21   tried to collect data not available from the department,

 

         22   however, just to reduce the burden but we did survey every

 

         23   school in the state and each district.

 

         24                   COCHAIR DEVIN:  We did implore them not to

 

         25   ask the districts to submit additional data they had

 

 

 

 


 

 

 

                                                                      80

 

          1   already submitted one time.  And so the SEEDS database, as

 

          2   I understood, Becca Walk, is something that districts

 

          3   report in to you.  Can you elaborate on that?

 

          4                   MS. PULLEY:  Yes, Senator Devin.  I'm

 

          5   Cheryl Pulley.  I manage the SEEDS database at the

 

          6   Department of Education.

 

          7             The SEEDS database, the districts submit a form

 

          8   with all of their information on the individual students

 

          9   that are identified.  Those are put into the department

 

         10   database and cleaned up and we've put together tables on

 

         11   percentages in each district.

 

         12             Now, there are some errors in how some of those

 

         13   percentages -- I know the two districts that have K-8

 

         14   schools, those percentages were not as accurate because

 

         15   they included those high school students that they still

 

         16   keep on their SEEDS roles but are not in their district

 

         17   receiving services.  They go out to other districts to

 

         18   receive services.  So those two districts that have K-8

 

         19   schools may be off a little bit on that spreadsheet that

 

         20   we have.

 

         21             The districts verified their count with us

 

         22   through a fax signature back to us.

 

         23                   REPRESENTATIVE MCOMIE:  Madam Chairman,

 

         24   the reason I asked the question is because during the

 

         25   break there was one of the schools here, some of the

 

 

 

 


 

 

 

                                                                      81

 

          1   representatives are here that are shown as 28 were only

 

          2   like 11 or something like that.  If I could ask them to

 

          3   relay what has happened here so I could find out -- is

 

          4   that all right, Madam Chairman?

 

          5                   COCHAIR DEVIN:  We will go to the public

 

          6   in just a minute, if the committee doesn't have more

 

          7   questions at this point.

 

          8             Senator Scott.

 

          9                   SENATOR SCOTT:  One quick question on

 

         10   page 2.

 

         11             Is column A included -- including the federal

 

         12   funds that are shown in column B, or are they -- are the

 

         13   federal funds in addition to the ones in column A?

 

         14                   DR. PARRISH:  Madam Chairman and Senator

 

         15   Scott, the funds shown in column A are simply a result --

 

         16   they're not designed to represent varying revenue sources. 

 

         17   They're designed to say once we specify an adequate

 

         18   special education, as we talked about before, and cost

 

         19   that out, what does the model produce overall as our

 

         20   estimate of cost?  That's what you see in column A.

 

         21             Then a determination -- I should say, though,

 

         22   when we did that we didn't attempt to separate out those

 

         23   functions for which some districts may have in the past

 

         24   claimed federal funds.  We tried to think of it in a

 

         25   comprehensive manner.  So, in other words, what all should

 

 

 

 


 

 

 

                                                                      82

 

          1   be included under the concept of a definition of an

 

          2   adequate special education, irrespective of where those

 

          3   funds may have come from in the past.  That's what column

 

          4   A is.

 

          5             Column B is -- in the base year subtracts out

 

          6   the federal funds actually received as a starting point

 

          7   with the idea that A is supposed to be the entirety and

 

          8   the state obligation would be the difference between that

 

          9   entirety and what the federal government provided in that

 

         10   year.

 

         11                   COCHAIR DEVIN:  And I think the

 

         12   information at break that was kind of interesting, that

 

         13   our federal funds have increased -- and perhaps Mary

 

         14   Kay -- have increased 6 million and we're slated to get

 

         15   another 2 million increase.  Is that this year or the

 

         16   upcoming year? 

 

         17                   MS. HILL:  Madam Chairman, the 2 million

 

         18   would be for the next fiscal year and then the additional

 

         19   6 are currently being paid out to districts right now.

 

         20                   COCHAIR DEVIN:  So that's the magnitude of

 

         21   recent increases, just for the committee's information.

 

         22                   SENATOR SESSIONS:  Madam Chairman, just a

 

         23   thing on inclusion for people who are not familiar with it

 

         24   maybe, and I just have to say this in relationship to

 

         25   cost, inclusion is a wonderful practice for special ed

 

 

 

 


 

 

 

                                                                      83

 

          1   students.  It is an absolutely wonderful opportunity for

 

          2   them to be either full day, part day, whatever, within a

 

          3   regular classroom for the interaction with kids.

 

          4             But it is not a cost savings.  It is not a

 

          5   cost-saving procedure because unless you provide the

 

          6   support and all of the stuff that goes with the

 

          7   inclusion -- you have to do that to protect the rest of

 

          8   your kids' education in the classroom and to make it

 

          9   really work.

 

         10             So, you know, it does not save you any money,

 

         11   but it is a wonderful way to provide for special ed

 

         12   students.

 

         13                   COCHAIR DEVIN:  I would like to move to

 

         14   the public.  I would like to make the request that we not

 

         15   reiterate the testimony of the last two education

 

         16   meetings, if we could.  But you have had new material

 

         17   presented to you today, a new piece, and I would like you

 

         18   to be able to comment on that, and I think that's that

 

         19   piece.  If we can expedite this along, Dr. Parrish does

 

         20   need to leave, I think, at 11:45 and we have another

 

         21   individual to speak with the committee at 11:45.

 

         22             So I would like to hear the comments and hear

 

         23   anything you would have to add to thoughts you had from

 

         24   last time and remarks you had.  And perhaps we'll start

 

         25   with Representative McOmie's request that on our data

 

 

 

 


 

 

 

                                                                      84

 

          1   sources if the discrepancy here is as was described

 

          2   possibly before, if there's something else on the 28

 

          3   percent identification, if you would identify yourselves,

 

          4   we would appreciate that.

 

          5                   MS. CURCIO:  Kathy Curcio, special ed

 

          6   director, Fremont County 21.  And we've often been

 

          7   mentioned today as the district with 28.9 percent of our

 

          8   children identified as special education, and a lot of

 

          9   worry has gone into the fact that perhaps we're

 

         10   overidentifying.

 

         11             Actually, we're a K-8 school with 300 students,

 

         12   but we track our children in Lander.  The Lander students

 

         13   in high school are added into our special ed numbers and

 

         14   then divided by the 300 students.  So the numbers are very

 

         15   high, but they don't reflect what is actually going on at

 

         16   Fort Washakie.

 

         17             We actually have a 13.8 percent identification

 

         18   rate at Fort Washakie which is well within the standards,

 

         19   and it just looks different on the SEEDS report because

 

         20   the high school students -- because we don't have our own

 

         21   high school.  The high school students in Lander are added

 

         22   into our count and that is how it works.

 

         23                   COCHAIR DEVIN:  And just as a question of

 

         24   finance, does that money for those special education

 

         25   students that are high school -- does it flow through your

 

 

 

 


 

 

 

                                                                      85

 

          1   district or does it go directly to the Lander district?

 

          2                   MS. TAFT:  Roxie Taft, business manager at

 

          3   Fremont County School District 21 in Fort Washakie.  The

 

          4   special ed money is money we get to spend for our

 

          5   students.  I have a teacher and aide in Lander in the

 

          6   school system I pay for.  I report those as contracts on

 

          7   the special ed report and I'm reimbursed for that money. 

 

          8   All the other costs for the high school students are borne

 

          9   by Lander.

 

         10                   COCHAIR DEVIN:  Reimbursed by the State?

 

         11                   MS. TAFT:  Yes.

 

         12                   COCHAIR DEVIN:  So the K-8 situation was

 

         13   mentioned earlier as being one where the form might make

 

         14   that look slightly different than in actuality all of

 

         15   those numbers of students are in special ed but they're in

 

         16   there in a different manner than other school districts.

 

         17             Other comments, then.

 

         18                   MR. LEAHY:  My name is Lou Leahy,

 

         19   Newcastle, Wyoming, and I'm up in the northeast with

 

         20   Marlene.

 

         21             A couple things I would like to say, first of

 

         22   all, the 100 percent reimbursement, we've got so used to

 

         23   saying it, we put a period there.  That's not true.  It is

 

         24   100 percent reimbursement of allowable costs.  In other

 

         25   words, I have to write down per the nickel everything I

 

 

 

 


 

 

 

                                                                      86

 

          1   spend in special ed.  If I buy a piece of equipment, buy

 

          2   an aid, a teacher salary, whatever, it goes on the

 

          3   bookkeeping system as a special ed expense.

 

          4             First, I check to make sure it is an allowable

 

          5   cost and then I put it on the books and that report, then,

 

          6   goes to the State.  The State reviews that.  If it is not

 

          7   an allowable cost, they red-line it off the sheet and say,

 

          8   "Sorry, Lou, we can't reimburse you for that.  It has to

 

          9   be an allowable cost."

 

         10             So, consequently, what could be more cost based

 

         11   than to look at every single nickel that was spent on the

 

         12   program and then submit it to the State and they've

 

         13   already put the brakes on the system by saying you can

 

         14   only be reimbursed for what we say are allowable costs? 

 

         15   So that's the one issue.

 

         16             On another issue, on identification, that's a

 

         17   mechanical process.  You could almost do that with a

 

         18   machine and computer because the federal law is what we

 

         19   implement.  Anybody can make a referral, anybody.  And

 

         20   once they make a referral, it is prescribed exactly what

 

         21   you have to do as far as testing and evaluation.  And once

 

         22   they either make it in or out of the program, then you

 

         23   serve them.  It is like an automatic process.

 

         24             The one area I would agree with Dr. Parrish here

 

         25   and that is we could use some work in bringing some

 

 

 

 


 

 

 

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          1   guidelines to staffing issues and helping us provide

 

          2   better services in our more rural areas.

 

          3             I would like to add another comment.  Marlene is

 

          4   exactly correct.  I live in a border area, ten miles south

 

          5   of her place, and we do get South Dakota people coming

 

          6   over to Wyoming like she said.  I worked in South Dakota

 

          7   and I have property in South Dakota.

 

          8             And I would like you to know two things very

 

          9   much different:  The number one reason for school district

 

         10   failure in South Dakota -- I'm talking about school

 

         11   districts that have gone out of business and

 

         12   consolidated -- was special education.  Small school

 

         13   districts got special education children in that district,

 

         14   they could not afford to pay for the services.  In South

 

         15   Dakota, as has been pointed out, they pathetically

 

         16   underfund the system and so the school district fails. 

 

         17   They have no choice but to consolidate with a bigger

 

         18   district until they get a funding base big enough to

 

         19   support it.

 

         20             Now, how can that be?  The option there in South

 

         21   Dakota, I see it on my property bill for the property I

 

         22   have there, there's a 2-mill local levy that school

 

         23   districts levy for purposes of special ed.  You can see

 

         24   the cost of special ed right up front and personal.

 

         25             So we don't have any local taxation authority

 

 

 

 


 

 

 

                                                                      88

 

          1   anymore in Wyoming.  There is no way to raise money.  And

 

          2   so I don't know what you would do if you had a high-cost

 

          3   system and you had a formula-driven system and you were

 

          4   out of money.  That's why Dr. Parrish suggests this

 

          5   emergency fund, because otherwise you're out of business.

 

          6             I would finally like to conclude by saying that

 

          7   I am typically sort of an antibureaucracy kind of guy and

 

          8   maybe some of you read some of my outlandish statements on

 

          9   that.  But anyway, the whole concept of this cost-based

 

         10   system is the idea that we set up intricate formulas and

 

         11   somehow we make them work.  We've been at that -- I think

 

         12   we started that, what, 1986 or so and Dr. Smith is still

 

         13   here.

 

         14                   DR. SMITH:  Pleased to be here, as a

 

         15   matter of fact.

 

         16                   MR. LEAHY:  I want to conclude by saying

 

         17   the United States entered and went on to a glorious

 

         18   victory in World War II in only three and a half years. 

 

         19   Thank you very much.

 

         20                   COCHAIR DEVIN:  I would like to ask you,

 

         21   then, a question.  I will say the State of Texas was in

 

         22   this 26 years and when we started I thought oh, my gosh, I

 

         23   hope it won't take us that long.  Now I'm saying I hope we

 

         24   settle in that time.  This is not unusual for new systems.

 

         25             I would like to ask you your feelings on the

 

 

 

 


 

 

 

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          1   preventative issues that have been raised in terms of the

 

          2   kids on the fringe, fragile children, as was referred to,

 

          3   and the ability to serve some of these particularly

 

          4   younger children who are on the fringe of special ed

 

          5   without having to make that identification.

 

          6             What are your thoughts on that piece?

 

          7                   MR. LEAHY:  We do that.  We have a lot of

 

          8   preventative programs or try to put those in place.  As a

 

          9   matter of fact, years ago the legislature worked with the

 

         10   Department to implement the BIT system, building

 

         11   intervention team system, where it mandates that building

 

         12   principals look at other alternatives to special education

 

         13   placement prior to serving the child.  And those have been

 

         14   successful.

 

         15             But, you know, with all of the litigation you

 

         16   get into and all of the fine points of special ed, if it

 

         17   was up to me, what I would do is put the flexibility into

 

         18   the at-risk programs under the main school funding model. 

 

         19   In other words, there should be part of that MAP model, as

 

         20   we call it, that addresses the needs of the at-risk

 

         21   children.

 

         22             Because once -- that would be an excellent

 

         23   place to provide flexibility and preventative programs,

 

         24   et cetera.  Once you get into special ed, you come under

 

         25   the whole privy of due process, of potential litigation,

 

 

 

 


 

 

 

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          1   of federal regulation, and so it probably is better from a

 

          2   practitioner's point of view to keep those things separate

 

          3   because the rules are so different.

 

          4             But I truly would like to see some more funding

 

          5   in the area of at risk, children who are not in special

 

          6   ed.  We could do some preventative programs and I think

 

          7   that would help a lot.  I agree with you, I think that

 

          8   would help a lot in keeping the cost of special education

 

          9   down.

 

         10                   COCHAIR DEVIN:  Other comments? 

 

         11                   SENATOR SCOTT:  Madam Chairman.

 

         12                   COCHAIR DEVIN:  Senator Scott.

 

         13                   SENATOR SCOTT:  On the previous speaker, I

 

         14   wasn't clear what his position was with the school

 

         15   district.  Could he make that clear?

 

         16                   MR. LEAHY:  I'm director of special

 

         17   education and federal grants coordinator.

 

         18                   MR. KOURIS:  I'm here again.  Maybe I'll

 

         19   get help from above like last time.  I'm Mike Kouris,

 

         20   special ed director in Riverton.

 

         21             I don't want to say again all of the things I

 

         22   said last time and I will try to keep from it.  Please

 

         23   correct me if I do.

 

         24             I need to clear up a couple of things first that

 

         25   I've heard today.  When we talked about the special

 

 

 

 


 

 

 

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          1   education in the state of Wyoming is spending 17 percent

 

          2   more than the nation, Senator Massie several months ago on

 

          3   the stakeholders committee said regular ed is spending 10

 

          4   to 12 percent more, so why is that unusual that we're

 

          5   spending more in special education.

 

          6             It is really not that unusual.  We do have

 

          7   programs for children and we develop them to meet their

 

          8   needs.

 

          9             And so now I need to get personal to my

 

         10   district.  I have double the amount of children that are

 

         11   identified as emotionally disturbed.  Dr. Parrish, I give

 

         12   all of the respect to him for this study but he missed the

 

         13   mark on how to fund programs in my district for those

 

         14   children.  If we go under a census-based -- which his is

 

         15   census-based, not a cost-based approach -- I won't have

 

         16   the money to fund those programs.

 

         17             Although there's this contingency fund for high

 

         18   cost, these are recurring costs yearly.  I've got double

 

         19   the amount of children with emotional difficulties.  And

 

         20   like I said before, I'm not willy-nilly identifying those

 

         21   children.  We've got the largest alcohol and drug abuse in

 

         22   our county.  Maybe it is because we have an honor farm in

 

         23   our community.  Maybe it is because God willed it.  It is

 

         24   the luck of the draw that we have those children there and

 

         25   we program for them K-12 and it costs a lot of money.

 

 

 

 


 

 

 

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          1             In that funding model they wouldn't get funding

 

          2   and I would have to immediately apply to that contingency

 

          3   fund for 800,000.  I'm going to be short that much.

 

          4             To continue on, I have the Child Development

 

          5   Center doing early intervention.  They're sending 23 new

 

          6   students to me next year, 23.  I have to have funding for

 

          7   those children.  If I'm frozen at 11, I won't have the

 

          8   funding.  I will lose probably 7 with my senior class,

 

          9   special ed children.  So those are just some points.

 

         10             Dr. Parrish's probably -- and he was real up

 

         11   front about this -- suggested some of the negative things

 

         12   about it.  One of the negative things is if we're not

 

         13   funded for programs locally, we will have to look at

 

         14   residential centers for children that might otherwise we

 

         15   could take care of in our district.

 

         16             Another thing it would cause, it would cause us

 

         17   to try not -- to underidentify.  If we're not funded for

 

         18   students that legitimately qualify for special ed, it

 

         19   would encourage districts to underidentify.  And

 

         20   Dr. Parrish pointed that out in a study he did several

 

         21   years back.

 

         22             Also in this kind of system it is going to

 

         23   increase litigation.  If I have to -- if I'm not going to

 

         24   be funded for the children that I serve, of course their

 

         25   parents are going to bring litigation.  And to me that's

 

 

 

 


 

 

 

                                                                      93

 

          1   not an equitable system.  It is far from it.

 

          2             I think that's all I have.  Thank you very much.

 

          3                   COCHAIR DEVIN:  Other comments.

 

          4                   MR. MONTEITH:  Madam Chairman, Brian

 

          5   Monteith, superintendent of schools in Cody, Wyoming.  I

 

          6   did serve on the committee.  I wasn't at all six meetings,

 

          7   but I felt I was a part of that and understood the

 

          8   process.  I'm standing to urge you to support the 100

 

          9   percent cost reimbursement with an oversight method for

 

         10   controlling the costs which may seem to be inappropriate.

 

         11             Five years ago the Cody public schools had a 9.3

 

         12   percent rate of special education students within the

 

         13   entire student body.  I think as of last year we were 10.3

 

         14   percent, so we've had a net gain of five-tenths of a

 

         15   percent over the period of that year and that includes

 

         16   going into the 100 percent reimbursement model.

 

         17             I think you've probably heard the testimony as

 

         18   it relates to the types of models, the reasons for those

 

         19   models, but I'm a little like Riverton, I need to put a

 

         20   face on this for you so you understand some of the issues

 

         21   we're dealing with in our district, and I think that will

 

         22   help you understand what all districts are facing.

 

         23             I think you will notice on page 3 that we would

 

         24   be eligible to receive approximately 252,000 more dollars

 

         25   based on the model being advocated this morning.  I can

 

 

 

 


 

 

 

                                                                      94

 

          1   assure you as of this morning we spent 238,000 of that

 

          2   already.  The needs in our district continue to increase. 

 

          3   Let me give you data about why that is for Cody.

 

          4             Since September 1, '01, 91 students have been

 

          5   exited from Cody's special education program.  In the same

 

          6   period of time we have entered 94 students into our

 

          7   special education program.  That's only a net increase of

 

          8   three students, but the nature of the needs of these

 

          9   students has changed dramatically and continues to change

 

         10   dramatically and become more needful in terms of the kinds

 

         11   of obligation that our district has to meet.

 

         12             Of the 94 students who have entered, 26 receive

 

         13   special education equal to or in excess of 10 hours a

 

         14   week.  11 of these students require one-on-one coverage

 

         15   because of the natures of their disabilities and that

 

         16   means an individual person hired to work with that child

 

         17   and that child alone.  And I don't think anybody in our

 

         18   district simply points to a child and says let's make this

 

         19   one to one.

 

         20             We analyze the nature of the IEP and the kind of

 

         21   disability they come to us with and essentially make a

 

         22   determination they can't be successful in the special

 

         23   education program in our district without that assistance.

 

         24             Five of the new students have severe mental

 

         25   disabilities.  That is, three of these have multiple

 

 

 

 


 

 

 

                                                                      95

 

          1   disabilities including orthopedic disabilities, seizure

 

          2   and hearing disability.  All five require full-time

 

          3   attention.

 

          4             Because of the nature of the 94 students who

 

          5   have come into our district in the past 18 months, we've

 

          6   had to institute a developmental classroom for students

 

          7   with multiple disabilities.  This classroom is staffed

 

          8   with a special education teacher, a para-educator and a

 

          9   full-time special education nurse.  The nurse is hired to

 

         10   take care of the safety of the student with a permanent

 

         11   tracheotomy and feeding tube and two students with ongoing

 

         12   seizures which happen unannounced.

 

         13             Two of the new students are served in their

 

         14   neighborhood schools and require additional one to one

 

         15   from para-educators throughout the entire school day.  One

 

         16   is completely deaf and requires teachers of deaf service. 

 

         17   We do that in our district because we're fortunate enough

 

         18   to find a teacher for the deaf.  If we didn't, that

 

         19   student would be in a school in Billings, Montana at a

 

         20   cost of at least 100,000 more than we're currently

 

         21   spending in Cody to provide services for that child.

 

         22             Five of the new students require one-to-one

 

         23   support for serious emotional and behavioral problems

 

         24   identified within an IEP for those students.

 

         25             Two of the high school -- two of the students

 

 

 

 


 

 

 

                                                                      96

 

          1   are in the high school.  One is severely aggressive and

 

          2   has inadequate social behavior which does not even allow

 

          3   them to intermingle with their peers without getting into

 

          4   physical dilemmas, I guess, I would say fights.

 

          5             One of them is schizophrenic and requires a one

 

          6   to one, and by the way, came out of a residential

 

          7   placement being paid for by the State, so just by virtue

 

          8   of the fact we can put a one-on-one teacher with that

 

          9   student, we're saving the State about 110,000.

 

         10             We have only had to place one student out of

 

         11   district in the past three years and this is the one

 

         12   that's gotten beyond our control in terms of the

 

         13   behaviors.  The behaviors became so severe we had to do an

 

         14   institutional or residential placement program.

 

         15             Fourteen of these students require extensive

 

         16   academic support which means they all require more than

 

         17   ten hours of services to meet their special education

 

         18   needs in the inclusion model classroom of the district. 

 

         19   That takes 238,000 of the 253,000 left available to us.

 

         20             We already know next year we have five children

 

         21   coming to us with severe needs that will completely

 

         22   exhaust that amount of money and put us beyond the

 

         23   maintenance floor level, and then we're going to be left

 

         24   with a decision of what we do to try to meet the needs of

 

         25   these children according to law.

 

 

 

 


 

 

 

                                                                      97

 

          1             And I can assure you that what will likely

 

          2   happen in our district is what happened before 100 percent

 

          3   cost-based reimbursement and that is they were put in the

 

          4   classroom, regular classroom, with less special education

 

          5   help than was available for the district to provide and

 

          6   putting an extreme amount of pressure on the regular

 

          7   education teachers for the inclusionary model.

 

          8             We had classrooms with as high as five LD kids

 

          9   in them, and each LD child has a different kind of a need. 

 

         10   It is not as though you can put them in the classroom and

 

         11   they're all alike.  And the regular education teacher had

 

         12   to cope with those folks and that is not, as Senator

 

         13   Sessions has said, not good for the rest of the regular

 

         14   education kids in those classrooms at the same time.

 

         15             I am going to advocate once again you seriously

 

         16   consider the 100 percent model with rules oversight and,

 

         17   in fact, I would encourage you to consider looking at the

 

         18   rules and if they need tightening, that should be done. 

 

         19   That is one area where there's a certain looseness in the

 

         20   interpretations.  You can restrict some of your costs by

 

         21   tightening those rules up.  And I guess that's kind of

 

         22   where I need to go.

 

         23                   COCHAIR DEVIN:  One question:  The

 

         24   increases that you're seeing, and the increases in the

 

         25   severity and magnitude, are they coming from within your

 

 

 

 


 

 

 

                                                                      98

 

          1   own community or are they moving in?

 

          2                   MR. MONTEITH:  Madam Chairman, I think

 

          3   you've heard some evidence this morning that there are

 

          4   people moving to districts where they can get the

 

          5   services, and, in fact, they may move from South Dakota to

 

          6   Wyoming to get services and they may move from smaller to

 

          7   larger school districts in Wyoming to get more

 

          8   comprehensive services.

 

          9             I will tell you based on my observations that

 

         10   the kinds of children we have been getting historically

 

         11   have increasingly high levels of need that were not

 

         12   typical five and ten years ago.  I think that's part of

 

         13   the example I was trying to demonstrate here.  Of the 94

 

         14   kids we got to replace the 91, they're coming with more

 

         15   severe needs to have to deal with.

 

         16                   COCHAIR DEVIN:  Thank you.

 

         17                   REPRESENTATIVE MCOMIE:  Madam Chairman, I

 

         18   would like to add to what I think part of this problem is. 

 

         19   I've attended a number of DD group meetings and listened

 

         20   to the testimony of parents that are totally amazed to see

 

         21   what happens to the children going out in these systems

 

         22   and the improvements in quality of life.

 

         23             And the people that did not -- kept the children

 

         24   home and tried to care for them themselves are now

 

         25   starting to request IEPs and get these kids out there so

 

 

 

 


 

 

 

                                                                      99

 

          1   that they can take advantage of the marvelous things that

 

          2   happen to those children once they get into these

 

          3   programs.  It is totally amazing to hear that kind of

 

          4   testimony.  And I think that's where this growth is all of

 

          5   a sudden starting to come from.  I have two different

 

          6   friends that took advantage of these kinds of programs and

 

          7   it has made all of the difference in the world to these

 

          8   children.

 

          9                   COCHAIR DEVIN:  Senator Scott.

 

         10                   SENATOR SCOTT:  Chairman, question.  I

 

         11   hear what you're saying about the increase in severity and

 

         12   I think we can speculate on the causes, but they're

 

         13   probably multiple.  My question deals with the kids that

 

         14   aren't so severe.

 

         15             There are a number of things, I think, that do

 

         16   seem to be effective in preventing those from actually

 

         17   needing the level of services of special education: 

 

         18   Preschools, some of the special reading interventions.

 

         19             With the 100 percent reimbursement system, what

 

         20   kind of incentives can we put in that to encourage the

 

         21   districts to use the preventative programs?

 

         22                   MR. MONTEITH:  Madam Chairman, Senator

 

         23   Scott, I don't know I have all of the answers to that, but

 

         24   let me frame something for you I think is true for us in

 

         25   Cody.  And I would follow on some of the things that

 

 

 

 


 

 

 

                                                                     100

 

          1   you've said.  When you are a district that believes very

 

          2   strongly in the least restrictive avenue, you try all of

 

          3   the alternate strategies you can think of, through the BIT

 

          4   program, any other program you can have to provide a solid

 

          5   educational opportunity for children before you're

 

          6   absolutely forced to put them in the special education

 

          7   program.

 

          8             And I think some of you heard me say this before

 

          9   and I'll say it again:  You don't fix children by putting

 

         10   them in the special education program.  That is not what

 

         11   special education is for.  You do the best job you can for

 

         12   your children in the regular education setting as much as

 

         13   you can.

 

         14             So whenever it is possible, we provide

 

         15   alternative pathways to be successful for children within

 

         16   the framework of our regular curriculum, including special

 

         17   programs like reading intervention.  Even at that, we're

 

         18   still seeing the percentages of children with needs

 

         19   increasing in our district.

 

         20                   COCHAIR DEVIN:  Any other public comment?

 

         21                   MR. CURRY:  Dal Curry, executive director

 

         22   of student services in Casper.  I've been pulled in by

 

         23   your system.

 

         24             Just to follow up on that, we just completed our

 

         25   December 1 SEEDS child count so I have some numbers in

 

 

 

 


 

 

 

                                                                     101

 

          1   mind.  We gained like seven kids this year with a slight

 

          2   increase in overall enrollment, so we're pretty flat. 

 

          3   What we've seen in the last few years is a marked increase

 

          4   in the identification of learning disability students

 

          5   which is a high-incidence disability and marked increase

 

          6   in the areas of autism and health impaired.  Health

 

          7   impaired usually are severe kids.

 

          8             To echo what he said, the numbers are holding

 

          9   steady but the composition of the population is changing. 

 

         10   And I don't think you can -- we welcome monitoring, as do

 

         11   all districts, I think, but I don't think you can argue

 

         12   with the identification of the severe DD, severe autistic

 

         13   kids.  If you can, great.

 

         14             Also, just a point, over 90 percent of our

 

         15   state-reimbursed special ed funds are in salaries and

 

         16   benefits.  If we hit a ceiling to where we're no longer

 

         17   going to be able to increase that, the only cuts we can

 

         18   make are in personnel to hold that line.

 

         19             Thirdly, economy of scale is a wonderful thing

 

         20   and we do benefit from that as being one of the larger

 

         21   districts.  However, realize that our economy of scale is

 

         22   spread over 36 school buildings, so although you might not

 

         23   realize it, we have a lot of windshield time, too.

 

         24             Also, by being a larger district, we do have

 

         25   more comprehensive services I would sure hate to lose. 

 

 

 

 


 

 

 

                                                                     102

 

          1   And we also attract -- since the last meeting you all had

 

          2   in November -- actually, the week before that, we've added

 

          3   seven high-risk kids that have moved to the district,

 

          4   three of them autistic, two of them severe health

 

          5   disabilities.  So we do attract students.

 

          6             With regard to a comment earlier, we have lifted

 

          7   our efforts to increase inclusion.  It is a wonderful

 

          8   thing for some kids.  It is considerably more expensive

 

          9   because you're spreading special ed staff then not only

 

         10   over more kids but over more sites.

 

         11                   MS. GAZEWOOD:  Thank you, Madam Chair,

 

         12   members of the committee.  I welcome the opportunity to

 

         13   address you once more.

 

         14                   COCHAIR DEVIN:  We need your name.

 

         15                   MS. GAZEWOOD:  I'm Ramona Gazewood,

 

         16   director of Special Services with Laramie County School

 

         17   District 1.  I have three pages here but a lot of people

 

         18   have already addressed some of the areas that I was going

 

         19   to address.

 

         20             As you can see, the factors that we need to

 

         21   consider and the complexity of the laws governing services

 

         22   for the provision of services for children with

 

         23   disabilities is very complex.  A thorough and accurate

 

         24   analysis of how to provide those services is very

 

         25   challenging and difficult.

 

 

 

 


 

 

 

                                                                     103

 

          1             I think that Dr. Parrish has put together a lot

 

          2   of data, but I do believe that the accuracy and the

 

          3   validity of some of the data that we've been pointing out

 

          4   is still questionable.  One of the points I want to make

 

          5   sure that the committee realizes is that when we compare

 

          6   ourselves to other states, we are not comparing same data

 

          7   because in other states, the funding mechanisms that exist

 

          8   in those states are different than Wyoming.

 

          9             For example, I recently visited California, and

 

         10   they were talking about the placement in this one

 

         11   district, the placement of a student residentially.  And

 

         12   the director was saying to me, "Boy, you know how

 

         13   expensive those residential placements are."  And I said,

 

         14   "Yeah, they are very expensive."  This student in

 

         15   California was being placed in a residential facility in

 

         16   Texas.

 

         17             I said, "Just about how much is this going to

 

         18   cost your district to place that student in Texas?"  She

 

         19   said, "Well, it is going to cost us 35,000."  I kind of

 

         20   had an intake of breath because a comparable placement for

 

         21   us in Wyoming would have been anywhere from 100 to

 

         22   $150,000.  That's because in California other agencies

 

         23   contribute to the funding of the educational placements of

 

         24   students.  It is not totally on the educational system.

 

         25             Also, in many states Medicaid reimbursement is

 

 

 

 


 

 

 

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          1   actively participating.  There's occupational therapy,

 

          2   physical therapy, speech and language, psychological

 

          3   services, counseling are picked up under Medicaid

 

          4   reimbursement scenarios.  We in Wyoming do not have that

 

          5   opportunity because our Medicaid plan is different.  The

 

          6   school districts bear the total burden of these costs.

 

          7             So when you look at costs across states and you

 

          8   try to compare those costs, you're looking at a lot of

 

          9   different data.

 

         10                   COCHAIR DEVIN:  I would like to just

 

         11   comment at that point, though, three years ago when I

 

         12   brought this Medicaid use back from the national meeting

 

         13   and talked with Special Education about the Medicaid

 

         14   piece, the response I got was it is too much paperwork

 

         15   since we get 100 percent reimbursement anyway.

 

         16             And that's been pretty discouraging to me that

 

         17   we don't take advantage of our Medicaid match because

 

         18   the -- on these expenses, which is substantial, and we use

 

         19   all state dollars because it is reimbursed at 100 percent

 

         20   anyway to those that had to fill out the paperwork.  That

 

         21   response didn't come from you, but I will tell you I've

 

         22   tried to float and push this for three years and that's

 

         23   the response I have received.

 

         24                   MS. GAZEWOOD:  I'm not a Medicaid expert,

 

         25   but I think it is also based on the state plan.

 

 

 

 


 

 

 

                                                                     105

 

          1                   COCHAIR DEVIN:  Very easily fixed if the

 

          2   community wanted to go forward with it.  That can be

 

          3   amended anytime.  I guess I'm rather discouraged about

 

          4   that feeling that it is too much trouble to fill out the

 

          5   paperwork to get almost a 50 percent reimbursement for

 

          6   medical expenses.

 

          7                   MS. GAZEWOOD:  I think that's an area that

 

          8   we can look at.  But my point is that right now many

 

          9   states, their data is different than our own because the

 

         10   state -- the districts are bearing the total cost.

 

         11             I also have a concern about the utilization of

 

         12   our Part B money in these scenarios, as many of the costs

 

         13   we've been talking about do not include the kinds of

 

         14   things we use for our Part B monies and some of those

 

         15   things have not been, as Mr. Leahy outlined, allowable

 

         16   costs, such as summer programs, such as parent resource

 

         17   center coordinator, technology needs, in-service training

 

         18   not only for special ed staff but for regular ed staff,

 

         19   our paraprofessionals, parents, administrative costs and

 

         20   other supplemental programs that have not been allowable

 

         21   in the past.

 

         22             I would strongly encourage the committee to

 

         23   consider maintaining the 100 percent funding, but to look

 

         24   at some other issues that could give us some guidelines in

 

         25   regards to service provisions to take the guidelines that

 

 

 

 


 

 

 

                                                                     106

 

          1   we have started on and have the task force finish the task

 

          2   with the state department, to review and if need be revise

 

          3   our eligibility criteria so we can address those issues,

 

          4   to increase the state department's ability to monitor and

 

          5   assist the districts.

 

          6             As many of the individuals have -- that have

 

          7   given testimony have provided, we need these services more

 

          8   than ever.  Our services, our severity are growing with

 

          9   these children.  Cheyenne, too, is at the confluence of

 

         10   two major interstates.  We get a lot of students from

 

         11   other states.  We also in Cheyenne serve a military base

 

         12   and we are noted as one of the districts, one of the

 

         13   states, that have excellent services for children with

 

         14   disabilities.  And those parents whose children have been

 

         15   identified that are in the military many times are

 

         16   relocated here to Cheyenne because of those service

 

         17   provisions.

 

         18             So those are some of the points I wanted to

 

         19   make.  Thank you for your time.

 

         20                   COCHAIR DEVIN:  Thank you.

 

         21             Any other comments?

 

         22                   SENATOR SCOTT:  With regard to the

 

         23   Medicaid issue, you would have to ask if we're going to

 

         24   get into that two questions:  One, with regard to the

 

         25   actual paperwork and how much that actually costs as

 

 

 

 


 

 

 

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          1   opposed to a federal match; the second is if you have to

 

          2   modify the state plan to get that reimbursement, as I

 

          3   think you would, frequently they won't allow modifications

 

          4   that would be just restricted to the educationally

 

          5   relevant services that we provide in special ed but would

 

          6   go well beyond that.  And you would have to say what is it

 

          7   going to cost the State for that expansion.

 

          8             And you would have to do the analysis to figure

 

          9   out would we really be better off using the Medicaid funds

 

         10   in this area or not.  And I'm not sure I -- I wouldn't

 

         11   care to predict off the top of my head which way that

 

         12   analysis would come out.

 

         13                   COCHAIR DEVIN:  Senator Scott, the

 

         14   presentations that I heard from the consultants states --

 

         15   that it spent multiple thousands of dollars to get this --

 

         16   was that their savings was substantial in the area.  It

 

         17   was at an education meeting, but they reported at least a

 

         18   25 percent and greater reduction in their special

 

         19   education costs due to that piece.

 

         20             But I've just not -- there's not even been the

 

         21   enthusiasm to look at it here because of the alternatives.

 

         22                   SENATOR SCOTT:  The only point I'm making

 

         23   is that there are significant costs to getting there and

 

         24   you have to remember some of those other states --

 

         25   virtually we're about the lowest in terms of Medicaid

 

 

 

 


 

 

 

                                                                     108

 

          1   spending because we have restricted the scope of our state

 

          2   plan.  And I would think you would have to be very careful

 

          3   to be sure that you weren't incurring some very large

 

          4   costs that other states have already chosen to incur and

 

          5   we have not.

 

          6                   COCHAIR DEVIN:  Dr. Parrish, the SEEP

 

          7   data, I had understood that that was -- that national

 

          8   test -- that national piece was to try to compare -- to

 

          9   use comparative data.  And so when we look at the cost of

 

         10   a piece, we are looking at apples to apples in that piece.

 

         11             Can you tell me to what extent that effort has

 

         12   been made to give us that kind of data in that SEEP

 

         13   project nationally?

 

         14                   DR. PARRISH:  Madam Chairman, I can.  Does

 

         15   the reference refer to the Medicaid discussion or more of

 

         16   the discussion raised by Miss Gazewood?

 

         17                   COCHAIR DEVIN:  Yes, more of the

 

         18   discussion raised by Miss Gazewood.

 

         19                   DR. PARRISH:  I think we're looking more

 

         20   apples to apples, but the argument can still be made that

 

         21   the degree to which services are provided by other

 

         22   agencies outside of the school -- in other words, if

 

         23   another agency comes in and provides, let's say, physical

 

         24   therapy within the school context, that should have been

 

         25   captured in the cost whether it is education providing it

 

 

 

 


 

 

 

                                                                     109

 

          1   or some other agency.

 

          2             However, I think if there were services provided

 

          3   outside of the school context, that might not have been

 

          4   captured.  There may be some mix.  I think the best

 

          5   attempt to combine apples to apples that could be made was

 

          6   made.  I think the comparative data are about as valid as

 

          7   you're going to find.

 

          8             However, could involvement of other agencies

 

          9   have some impact?  I think it could.

 

         10                   COCHAIR DEVIN:  I appreciate that.

 

         11             Do you have any other comments before we go to a

 

         12   description of the bills?

 

         13                   DR. PARRISH:  Madam Chairman, we would

 

         14   like to make just a few comments.

 

         15             First of all, I think the notion of

 

         16   distinguishing between expenditure-based systems and a

 

         17   cost-based system is important.  I kind of heard

 

         18   throughout what could be more cost based than just

 

         19   reimbursing me for whatever I spend and I think we need to

 

         20   get the distinction between expenditure and cost.  We

 

         21   often use the words interchangeably in the vernacular, but

 

         22   economists are very adamant about distinguishing between

 

         23   the two things.

 

         24             One would be an example -- maybe it is

 

         25   oversimplistic -- if I have two children who are twins and

 

 

 

 


 

 

 

                                                                     110

 

          1   I sit there and say I'm going to give you an allowance for

 

          2   your lunch and it is a fixed amount, that might be some

 

          3   cost-based assessment of what I think they need or is a

 

          4   reasonable amount for them to spend on lunch.

 

          5             Conversely, if I give them 100 percent

 

          6   reimbursement of whatever they spend and one spends twice

 

          7   as much as the other, do I say it costs twice as much to

 

          8   feed Johnny as Billy?  That's the distinction.  A cost

 

          9   tries to look at some kind of standardized result.  Billy

 

         10   says I play football and I have to eat steak every day and

 

         11   Johnny doesn't, that might be a cost adjustment.  The

 

         12   notion of just allowing 100 percent reimbursement on

 

         13   expenditure equates to cost is just not true conceptually.

 

         14             Another point of clarification I would like to

 

         15   make is it is true Wyoming does spend higher on average

 

         16   for general education students overall than other states,

 

         17   but at least the data we looked at from the National

 

         18   Center for Education Statistics looked like a special ed

 

         19   differential of 17 percent as opposed to a general ed

 

         20   differential of about 5 percent.  There was a fairly

 

         21   substantial differential, at least in the data we looked

 

         22   at from the National Center.

 

         23             I think those are the primary points of

 

         24   clarification.

 

         25                   SENATOR GOODENOUGH:  Madam Chairman.

 

 

 

 


 

 

 

                                                                     111

 

          1                   COCHAIR DEVIN:  Yes.

 

          2                   SENATOR GOODENOUGH:  I think it is rather

 

          3   odd we've had the Fremont County district used as an

 

          4   example of rampant overidentification, 28 percent, so on

 

          5   and so forth, and go on down the road, it was 6 or 7, and

 

          6   now we hear it is actually 13 percent because it is a K-8

 

          7   district.

 

          8             And I want to know why that didn't come to your

 

          9   attention before this morning because that's been used

 

         10   over the last three meetings or four meetings of an

 

         11   example of overidentification, and finally at our last

 

         12   meeting we hear that no, that's not exactly what the case

 

         13   is.  I would like to know, it seems like if you called the

 

         14   special ed director at that district she could have told

 

         15   you what we heard today and we wouldn't have heard this at

 

         16   all of these meetings.

 

         17                   DR. PARRISH:  Madam Chairman, Senator

 

         18   Goodenough, I think that's a good point.  I'm glad you

 

         19   raised it because I think it is an important point.

 

         20             First of all, we were asked to rely on data

 

         21   provided to us by -- if the State already had data they

 

         22   had a high level of confidence in, we were specifically

 

         23   directed not to try to ask again things the districts had

 

         24   already reported.  There was a lot of pressure on us in

 

         25   that regard.  That would be one thing I think we need to

 

 

 

 


 

 

 

                                                                     112

 

          1   keep in mind.

 

          2             The other thing, when we sort out the

 

          3   differences for a few schools K-8 we will find the degree

 

          4   of variation we've talked about is still going to hold. 

 

          5   We will find a few for whom the data probably could have

 

          6   been reflected more accurately by the Department in

 

          7   conveying it to us, but I'm convinced the degree of

 

          8   variation we see is still to the degree of magnitude we've

 

          9   been talking about.

 

         10             And we did visit many districts and, in fact, if

 

         11   you remember, the last presentation I made to this

 

         12   committee I told you of two districts we visited, one of

 

         13   whom -- very similar populations, five miles down the road

 

         14   from one another, one district identified at about twice

 

         15   the rate of the other one.  And when we looked it up and

 

         16   figured out what the districts were, we said it can't be. 

 

         17   On this chart the director told me 12 percent but on the

 

         18   chart the State provided it said 24 percent.  And we were

 

         19   trying to figure it out.  I think that might be explained

 

         20   by the same dilemma.

 

         21             The fourth point I would like to make and I will

 

         22   just -- I think at the very least it does suggest the

 

         23   importance of increasing state monitoring and vigilance

 

         24   about what is going on.  I guess I'm a little bit

 

         25   concerned if indeed we get assurances from the State these

 

 

 

 


 

 

 

                                                                     113

 

          1   are the identification rates, they've been certified, so

 

          2   on and so forth, and I wonder if nobody else ever looked

 

          3   to say why is that district at 28 percent, is that a

 

          4   reasonable place to be.  And nobody said it is because of

 

          5   an artifact of accounting that really is kind of silly in

 

          6   terms of the real indicator we're trying to get at.

 

          7             I would suggest at the very least that the kind

 

          8   of monitoring we talked about for the state, if it were to

 

          9   be taken seriously, which it only appears to increase

 

         10   staff, this kind of clarification to review the data and

 

         11   be more careful about the implications of them would fall

 

         12   out and that would be an important artifact of that, if

 

         13   nothing else.

 

         14                   REPRESENTATIVE MCOMIE:  Madam Chairman, I

 

         15   have one more question.  Early on you said you talked

 

         16   about why we started with 12 years, went to 6 years and

 

         17   now we're down to this.  I have a scenario I'm going to

 

         18   pose and see if this is what this is about, because my

 

         19   scenario is I've got seven or eight students that it is

 

         20   $300,000 to place out of district.  I have to place them

 

         21   out of district.  And two of those students, one of them

 

         22   leaves the district, the other one turns 21.  They're

 

         23   200,000 of the 300,000.

 

         24             If the runout went 12 years I would still be

 

         25   receiving the credit for those, but is that coming down to

 

 

 

 


 

 

 

                                                                     114

 

          1   the two years or one year you're talking about now, that

 

          2   would take care of that problem so we wouldn't have this

 

          3   overfunding?

 

          4             Did I make that clear what I'm trying to say?

 

          5                   DR. PARRISH:  Madam Chairman,

 

          6   Representative McOmie, I'm not sure you have it exactly

 

          7   right but I think it is a good point.  And maybe I don't

 

          8   have your question right, but I'll try.  I think the 12 to

 

          9   6 to 2 is confusing.  It was kind of a conceptual lapse on

 

         10   our point as we moved clearly to think beyond the

 

         11   recommendations as to how we would actually implement, we

 

         12   were sort of thinking about how do we sort of let the

 

         13   so-called losers land as softly as possible?  We would

 

         14   stretch it over 12 years.

 

         15             We stopped and thought about well, wait a

 

         16   minute.  We're holding the sort of losers harmless anyway. 

 

         17   The only people affected by that 12-year phase-in are the

 

         18   winners and why should we phase them in over a long period

 

         19   of time?  It is the whole idea made less sense.

 

         20             Dr. Smith pointed out in a Supreme Court case in

 

         21   Wyoming that the winners would be delayed, and the idea

 

         22   that this should be sort of phased in was ruled out.  We

 

         23   thought then we should give the money to the winners or

 

         24   the people arguably underfunded all of these years right

 

         25   away.  And the two-year phase-in I think was offered as

 

 

 

 


 

 

 

                                                                     115

 

          1   one possible way of just maybe phasing it in over two

 

          2   years.

 

          3             Our recommendation is actually model B with the

 

          4   notion that the winners would be actually fully funded in

 

          5   year one.

 

          6                   COCHAIR DEVIN:  All right.  Was there

 

          7   further comment?

 

          8                   MS. CARMEN:  Betty Carmen.  I am a parent

 

          9   of a child with a disability, 15 years old, and he has

 

         10   autism.  He was diagnosed at a very young age, two and a

 

         11   half, and because of the early interventions that we had

 

         12   talked about he made progress.  He had no language.  The

 

         13   only thing this kid could do was sit in the middle of a

 

         14   floor and spin things, but he continually made progress.

 

         15             When he got to the school district, because of

 

         16   the wonderful school district that we have, because of the

 

         17   wonderful school system that we have in the state of

 

         18   Wyoming, my son continued to make progress.

 

         19             He has language now.  They told me at a given

 

         20   point he would never have language, never read, never

 

         21   write, never do anything.  My school district worked hard. 

 

         22   I worked hard.  Every other agency that could possibly be

 

         23   a part of this worked hard to get my son to where he's at.

 

         24             My son reads now.  He works on the computer. 

 

         25   He's very good at it.  His language is still a little

 

 

 

 


 

 

 

                                                                     116

 

          1   shaky.  He can communicate, barely, but he can

 

          2   communicate, which is a wonderful thing.  He's making

 

          3   wonderful progress.

 

          4             Had we not had the services for him at a very

 

          5   young age and the early intervention process, he would not

 

          6   have made that much progress.  He's done wonderful things

 

          7   because of what we have done in our school system.

 

          8             I know my son is going to have autism for the

 

          9   rest of his life.  Every three years we have a

 

         10   re-evaluation process that we go through.  Okay, we don't

 

         11   need to reevaluate him for autism again.  We know what

 

         12   he's going to have, but we need to reevaluate him for

 

         13   educational processes.

 

         14             There comes a point where you're just stumped,

 

         15   you have no idea what to do.  What do we end up doing

 

         16   then?  We need to go to the professionals, the ones in the

 

         17   big cities.  It costs money.  Were those costs even

 

         18   brought into the fact of this model?  I don't know.

 

         19             I also work as a parent advocate for the parent

 

         20   information center.  I've got IEPs throughout this state,

 

         21   all of different districts, different areas.  I have yet

 

         22   to find a district that I think is abusive.  I'm working

 

         23   for the parents here.  I'm not working for the districts. 

 

         24   I think the districts are doing a great job.  They're

 

         25   working very, very, very hard with those kids and I don't

 

 

 

 


 

 

 

                                                                     117

 

          1   think they're abusive at all.  In fact, they're almost

 

          2   trying to do whatever they can for the parent within

 

          3   reason.  So I don't think they're being elaborate about

 

          4   this.

 

          5             Having a son with autism, I teach the autism

 

          6   workshops throughout the state of Wyoming so I keep kind

 

          7   of updated on that.  The incidences of autism has

 

          8   increased so horrendously in the last ten years it is

 

          9   unbelievable.  When my son was diagnosed it was 1 child in

 

         10   15,000 that was diagnosed with autism.  In some

 

         11   communities today such as New Jersey 1 in 100 children are

 

         12   diagnosed with autism.  Within a 14-year period that's

 

         13   huge.  That's absolutely huge.

 

         14             So if we're talking about identifying children,

 

         15   of course we're identifying them, but we're getting a lot

 

         16   more of them as well.  It is not just the autism, it is

 

         17   all other disabilities, the learning disabilities and

 

         18   attention deficit.  And I know that sometimes people think

 

         19   we're overidentifying attention deficit.  There's a close

 

         20   correlation between autism and attention deficit, some of

 

         21   those symptoms.

 

         22             You know, when we're talking about this 100

 

         23   percent reimbursement, I don't believe there's school

 

         24   districts that are doing anything but what they need to do

 

         25   for our kids because of this whole new process of No Child

 

 

 

 


 

 

 

                                                                     118

 

          1   Left Behind, the reauthorization of IDEA in the spring. 

 

          2   What is that going to look like?  It is going to be even

 

          3   bigger.  We're going to be taking money -- if we don't

 

          4   provide services for our kids, under IDEA those monies are

 

          5   gone.  It comes out of the general fund.  My other two

 

          6   kids that don't have special needs, they're going to be

 

          7   lacking in services, in teachers, in programs and possibly

 

          8   books.

 

          9             I have a problem with that.  I think that we all

 

         10   have a problem with that.  I think that's why we're here. 

 

         11   So I would really, really encourage the 100 percent

 

         12   reimbursement because it has not been abused.  It has been

 

         13   used very nobly with great intelligence.  And I think the

 

         14   people here are for that.  I offer this committee to ask

 

         15   me any question you would like as a parent.  Thank you.

 

         16                   COCHAIR DEVIN:  Representative Simons.

 

         17                   REPRESENTATIVE SIMONS:  Madam Chairman,

 

         18   when I first went on Appropriations we didn't have all of

 

         19   special education in our schools, we didn't have all of

 

         20   the facilities available to us now.  We spent millions of

 

         21   dollars sending children out of state, millions, and it

 

         22   came out of our general fund, our general fund from

 

         23   Appropriations.

 

         24             I've been looking for the figures and maybe I

 

         25   will have them by this afternoon, but it was horrendous

 

 

 

 


 

 

 

                                                                     119

 

          1   the amount of money for out-of-state placements that we

 

          2   were doing which we're not doing as much of now unless it

 

          3   is a court out-of-state placement.

 

          4                   COCHAIR DEVIN:  I think due to the hour

 

          5   and our time, we're going to need to come back to these

 

          6   bills after lunch.  Thank you, Dr. Parrish.  I know you do

 

          7   need to leave.  Hopefully, everyone has asked their

 

          8   questions they need to of Dr. Parrish before we again work

 

          9   on it.  I hoped it might move faster but we knew in

 

         10   tackling this we've got a very complex issue that was not

 

         11   easily resolved the first two go-arounds and obviously it

 

         12   is not easily resolved now.  We're still struggling with

 

         13   it.

 

         14             Thank you for your work and the information.  I

 

         15   think it is probably more light than we've had shed on it

 

         16   in terms of knowing what we're doing in a long time.  I

 

         17   know you need to catch your plane.

 

         18                   SENATOR GOODENOUGH:  Madam Chairman, am I

 

         19   correct in thinking that if we fail to take any action on

 

         20   these matters that the 100 percent system will stay

 

         21   intact?

 

         22                   COCHAIR DEVIN:  With the current minimal

 

         23   monitoring that is there.  And as has been agreed by all

 

         24   parties, including the task force that was out there

 

         25   works, the monitoring is extremely minimal and probably

 

 

 

 


 

 

 

                                                                     120

 

          1   not serving our purposes well, so that's one of the pieces

 

          2   you do need to keep in mind by no action.

 

          3             Superintendent Catchpole.

 

          4                   MS. CATCHPOLE:  Madam Chairman, I wanted

 

          5   to take this opportunity to express my deep appreciation

 

          6   for the work that the House and Senate Education Committee

 

          7   have done separately and then as the joint committee.  We

 

          8   have had emotional issues like the one today to deal with

 

          9   in the last eight years.  I'm in the process of archiving

 

         10   lots of things and how things have changed in eight years

 

         11   from cell phones -- we were looking at everybody has a

 

         12   cell phone.  Eight years ago you wouldn't find people in

 

         13   meetings with cell phones.  It has been interesting as

 

         14   we're archiving things.

 

         15             But one of the things that has always been

 

         16   present is that this Education Committee has always had

 

         17   the best interests of children in mind, and for that I'm

 

         18   deeply appreciative.

 

         19             We've had wars, we've had battles.  We've won

 

         20   some, we have lost some, but always trying to do what's

 

         21   the best and the right thing for children in Wyoming has

 

         22   been the center focus along with recognizing all of the

 

         23   needs of the state of Wyoming and all of our customers.

 

         24             Sometimes people think that the only customers

 

         25   the Department of Ed has are educators, and we have

 

 

 

 


 

 

 

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          1   learned, certainly, that this is about all of Wyoming and

 

          2   all of our needs and still placing education as the

 

          3   highest priority.

 

          4             As I was looking through the books, I think that

 

          5   Katherine and Mac were on the very first education team

 

          6   that we started with.  And some have come and some have

 

          7   gone, and I thank you for your endurance to stay through

 

          8   the process.

 

          9             Wonderful things have really happened, and as

 

         10   I'm out with other national superintendents, I would want

 

         11   everyone to know that the last meetings I was at a week

 

         12   ago, people were leaving the meetings to go home because

 

         13   they're having 3 to 5 percent budget cuts this year with

 

         14   budgets being reduced while they're at the meeting.  So

 

         15   national travel is way down, services are being cut to

 

         16   departments, services are being cut to schools.  And so it

 

         17   is something when you say your prayers at night, Wyoming

 

         18   is in a very, very good position and we should be grateful

 

         19   and thankful for that.

 

         20             So I would like to take an opportunity to

 

         21   introduce to you -- as you know, No Child Left Behind will

 

         22   change the way we do business in lots of ways.  We have

 

         23   been working so that through the transition we have as

 

         24   much done as is possible.  Our final AYP report will be in

 

         25   and approved January 31st, so we're bringing the new

 

 

 

 


 

 

 

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          1   superintendent up to date on all of the things that we've

 

          2   been working for since last January 8th when that bill

 

          3   passed.

 

          4             But with us today for the entire day's

 

          5   festivities and hard work is Pat Clobber (phonetic) who is

 

          6   Secretary Page's regional representative -- director I was

 

          7   going to say -- and Pat is here from Denver.  Her office

 

          8   is in Denver.  She has the job that many of you may recall

 

          9   that Lynn Simons from Wyoming had under the Clinton

 

         10   administration and Pat now has that job and has indeed

 

         11   more responsibilities and is very supportive.

 

         12             So if any of you need any information, we will

 

         13   have Pat's number, e-mail address for you and she can get

 

         14   you whatever you might need.

 

         15             Also coming this afternoon will be Dr. Tim

 

         16   Waters from McREL, and I would want you to know that

 

         17   they're a congressionally funded laboratory doing

 

         18   wonderful things in Wyoming helping us to work through No

 

         19   Child Left Behind, helping us work in AYP.  Many school

 

         20   districts have them on contract doing things besides what

 

         21   they can do for us.  Those are two names for those of you

 

         22   who will stay here to indeed remember.

 

         23             And what I would like to do at this time is

 

         24   really the entire department would like to thank you for

 

         25   your service and we would like to present you with

 

 

 

 


 

 

 

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          1   certificates today.  I know that your pay is not great and

 

          2   you don't sometimes get many thanks, but we thank you for

 

          3   the relationship we've had in the last eight years.

 

          4             Irene -- the chairmanship of both Irene and Bill

 

          5   in this last round has been extraordinary and so there's a

 

          6   little something to take home, and then we have a

 

          7   certificate that says:  The Wyoming Department of

 

          8   Education recognizes Irene Devin for your dedication and

 

          9   determination to provide rich opportunities for all

 

         10   Wyoming children.  We present you with this certificate of

 

         11   appreciation.  Be it known that good stewardship, high

 

         12   expectations and standards results in opportunities for

 

         13   students.

 

         14             Robert Peck, Charlie Scott, Kathryn Sessions,

 

         15   Bill Stafford, Tom Lockhart, Del...

 

         16             With that, those of you that are staying on, I

 

         17   would wish you the best of luck.  And those of you who are

 

         18   finding other things to do, I hope transition goes well. 

 

         19   I will tell you that in the department we're doing

 

         20   everything humanly possible to help Trent Blankenship take

 

         21   over -- Trent is back here -- working through transitions

 

         22   of the many responsibilities that the superintendent has

 

         23   and we want that to be smooth and be good for kids.

 

         24             So on behalf of Wyoming children, thank you for

 

         25   what you've done to help us.

 

 

 

 


 

 

 

                                                                     124

 

          1                   COCHAIR DEVIN:  Judy.

 

          2                   SENATOR SESSIONS:  I would like to say

 

          3   something to Superintendent Catchpole.  Do you remember

 

          4   when I invited you out to dinner when you were first

 

          5   elected?

 

          6                   MS. CATCHPOLE:  I just told that story

 

          7   this morning in the office.

 

          8                   SENATOR SESSIONS:  I said as far as I'm

 

          9   concerned education is not partisan and we will try to

 

         10   work together.  I will say that I've seen some tremendous

 

         11   changes and we have not always agreed, but I will tell you

 

         12   I think you have had children -- I think you have had

 

         13   children at the forefront of your thoughts.  And I've seen

 

         14   the wonderful people hired by you and I've worked with

 

         15   them and I just want to say I think possibly -- I just

 

         16   commend and thank you because we brought you to our point

 

         17   of view at times and you brought us to your point of view

 

         18   at times, maybe kicking and screaming, but that's what it

 

         19   is about.  Thank you for eight years.

 

         20                   MS. CATCHPOLE:  Thank you.

 

         21                   COCHAIR DEVIN:  Well, Superintendent

 

         22   Catchpole, we have as a committee really appreciated the

 

         23   accessibility of your office and I would say to a person

 

         24   your staff has been so accommodating when we have needed

 

         25   information and when we have needed support.

 

 

 

 


 

 

 

                                                                     125

 

          1             And I know that many of the projects that this

 

          2   committee has asked for, the legislature as a whole has

 

          3   asked for have been able to progress not because you were

 

          4   funded for the kind of support you needed, necessarily,

 

          5   but people would come forward and give two and three

 

          6   months of time to support the collection of data that we

 

          7   needed.

 

          8             And we came from a base where almost no data was

 

          9   collected at the state level for any of the things we have

 

         10   to do to a point where now we are electronically

 

         11   coordinating that data, but we have been launched into a

 

         12   system that demands significant amounts of data to support

 

         13   the actions and the legal process and to support our

 

         14   actions in just basic fairness.  We've needed that piece,

 

         15   and your staff and yourself have done a marvelous job.  I

 

         16   think your progress in linking every school in Wyoming

 

         17   with technology will serve generations into the future.

 

         18             And the recognition of that leadership

 

         19   development in our superintendents and principals and

 

         20   staff development in our teachers probably makes the most

 

         21   significant difference in education and there could not be

 

         22   a department that has worked harder than that.  So thank

 

         23   you.

 

         24                   MS. CATCHPOLE:  Let me just say that I

 

         25   would just be skipping out the door saying this is over,

 

 

 

 


 

 

 

                                                                     126

 

          1   but transition I can tell you really has been very

 

          2   emotional, because it is the people who work in the

 

          3   Department of Ed who will show up at midnight or 5:00 in

 

          4   the morning when somebody needs something.  They're

 

          5   recognized nationally.  Any one of that team can walk out

 

          6   the door and make more money nationally.  They're calling

 

          7   us all the time saying how did you do this in Wyoming,

 

          8   that in Wyoming, can we talk to so-and-so.

 

          9             So we've built a national reputation with the

 

         10   quality of people who have come to work in the Department

 

         11   of Ed and it will be very difficult to say good-bye to

 

         12   them.

 

         13                   COCHAIR DEVIN:  I think --

 

         14                   REPRESENTATIVE MCGRAW:  Madam Chairman,

 

         15   I'm leaving also.  My residency has changed technically

 

         16   legally and I can't participate as much as I would like

 

         17   to.  I also wanted to say good-bye to everyone and it has

 

         18   been a privilege and honor working with this group.  For

 

         19   the most part it has been fun.  That's what I'm going to

 

         20   take with me.

 

         21             To those of you who are going to continue on in

 

         22   the legislature and with the Department, I wish you my

 

         23   very best and Godspeed to all of you.

 

         24                   COCHAIR DEVIN:  Thank you.

 

         25             We will take one hour for lunch.  We will

 

 

 

 


 

 

 

                                                                     127

 

          1   reconvene at 1:00 and take up our agenda as it is and

 

          2   hopefully make good progress.

 

          3                       (Meeting proceedings recessed

 

          4                       12:00 p.m. and reconvened

 

          5                       1:10 p.m., December 16, 2002.)

 

          6                   COCHAIR DEVIN:  I'm going to ask as our

 

          7   first order of business, Dave, will you please hand out

 

          8   the two bills that we have had drafted, and then I'm going

 

          9   to have you walk through them.  And they have diligently

 

         10   worked on these through the weekend, so I think we'll take

 

         11   some --

 

         12                   MR. NELSON:  The first draft you're

 

         13   getting is 314.  This incorporates the cost-based special

 

         14   education model into it.  We do have another one, and when

 

         15   I'm through going through this one, we will go through the

 

         16   one that's based on 100 percent reimbursement as well as

 

         17   brings forward a standard, the guidelines to monitor

 

         18   provisional district special education.

 

         19             I think the best way is to go through page by

 

         20   page and explain how these react to the model presented

 

         21   this morning by Dr. Parrish at the previous meetings.

 

         22             Again, 313.W4 --

 

         23                   COCHAIR DEVIN:  People are having trouble

 

         24   hearing.  Could you come up here, please.

 

         25                   MR. NELSON:  You have to look at me now,

 

 

 

 


 

 

 

                                                                     128

 

          1   gosh, hold on.

 

          2             We will start with page 2.  And this is, as you

 

          3   recall -- part of the recommendations forwarded in the

 

          4   cost-based approach was to provide for supplemental

 

          5   assistance.  The key to this assistance would be that it

 

          6   would be available to school districts during the year in

 

          7   which the need exists, so during any one school year they

 

          8   would under this approach be able to apply to the state

 

          9   department, express their needs.

 

         10             The state department would then review it and

 

         11   then if it was approved by the state department, would get

 

         12   their supplemental assistance in the year in which it was

 

         13   requested.  So that's an important feature of this.  It

 

         14   would be made available during the year of the request,

 

         15   which goes with the recommendations contained in the model

 

         16   that was presented to you.

 

         17             Quickly, there is an amount within the school

 

         18   foundation program account that will be set aside for

 

         19   this.  In this bill it is set for $2 million for the first

 

         20   school year.  That was as recommended by Dr. Parrish in

 

         21   the AIR report.  It would be outside the cost-based model. 

 

         22   It would not be considered or included as part of the

 

         23   cost-based amount that's determined under the model, so it

 

         24   would be something set aside that would have to be applied

 

         25   for every year for which that need is experienced by a

 

 

 

 


 

 

 

                                                                     129

 

          1   school district.  So it is only there upon application and

 

          2   upon a proven need.

 

          3             And one other requirement that exists is at the

 

          4   bottom of page 2, paragraph (i), lines 19 through 23, this

 

          5   again carries forward another recommendation within the

 

          6   report that they must expend at least 1 percent of the

 

          7   total amount computed that year under the special

 

          8   education adjustment.  So there is kind of a trigger.

 

          9             In addition to the other consideration, at the

 

         10   top of page 3 is the extraordinary circumstances that

 

         11   would be faced by the district.

 

         12                   SENATOR SCOTT:  Madam Chairman, do you

 

         13   want to entertain questions as we go or at the end?

 

         14                   COCHAIR DEVIN:  If they're clarification,

 

         15   let's do them now.  If they tend to get philosophical and

 

         16   so forth, we will do it after we hear the whole concept.

 

         17                   SENATOR SCOTT:  Madam Chairman.

 

         18                   COCHAIR DEVIN:  Yes, please, go ahead.

 

         19                   SENATOR SCOTT:  Lines 19 through 23, let

 

         20   me see if I understand this one, because if I read it

 

         21   literally it may not be doing what you think.  "...incurs

 

         22   costs for special education programs which exceed 1

 

         23   percent of the total amount."

 

         24             To make the math easier, suppose we had a

 

         25   district that was going to get $100,000 under the special

 

 

 

 


 

 

 

                                                                     130

 

          1   education adjustment to the block grant part.  And if I

 

          2   read this literally, your trigger then is $1,000, they

 

          3   have to have spent at least 1,000 of that 100,000 to

 

          4   achieve this result.  Is that what you intended?

 

          5                   MR. NELSON:  No, Madam Chairman.  Thank

 

          6   you, Senator Scott.  That is not worded properly.  I think

 

          7   it would be 1 percent above.

 

          8                   SENATOR SCOTT:  So they would have to

 

          9   incur at least 101?

 

         10                   MR. NELSON:  Exactly.

 

         11                   SENATOR SCOTT:  Madam Chairman, we should

 

         12   make a note that if we proceed with this bill we need to

 

         13   amend that.

 

         14                   MR. NELSON:  Continuing, Madam Chairman,

 

         15   subsection (b), lines 6 through 21, this, again, is the

 

         16   application procedure, pretty much as directed in the

 

         17   report that you received, again requiring -- the burden is

 

         18   on the district to notify the state department for this

 

         19   assistance.

 

         20             Subsection (c) is requirements for the state

 

         21   department to set up a process to review district

 

         22   applications, that they must notify them with the reasons

 

         23   for their action on an application and making it clear

 

         24   that these amounts are from the special amounts set aside

 

         25   by the legislature and that they are to be considered

 

 

 

 


 

 

 

                                                                     131

 

          1   outside the block grant model.

 

          2             Subsection (d) is a reporting requirement that

 

          3   the districts would report to the state department on

 

          4   expenditures.

 

          5             And subsection (e) is just rule and regulation

 

          6   authority for the state department to implement the

 

          7   program.

 

          8             Page 5 and top of page 6 enumerate duties --

 

          9                   COCHAIR DEVIN:  Senator Scott.

 

         10                   SENATOR SCOTT:  Madam Chairman, you know,

 

         11   we haven't seen this before today and we're going pretty

 

         12   fast.  Let me ask, where are the criteria for the state

 

         13   department to decide which grants get awarded?  You've got

 

         14   two triggers, I understand, when you apply.  Where does it

 

         15   say which ones get awarded?  What criteria do we use?

 

         16                   MR. NELSON:  The confusion is whether you

 

         17   need (a), (i), (ii)?  I think the way that's worded,

 

         18   they're both to apply to it.

 

         19                   SENATOR SCOTT:  No, Madam Chairman.  As I

 

         20   understand it, these are the criteria where you're

 

         21   eligible to apply, you are 1 percent over the amount.

 

         22                   MR. NELSON:  Right.

 

         23                   SENATOR SCOTT:  And you "experience

 

         24   extraordinary experiences impairing your ability,"

 

         25   whatever that means.  If you meet those criteria, you're

 

 

 

 


 

 

 

                                                                     132

 

          1   eligible to apply.  You also automatically get the grant

 

          2   or does the state department apply other criteria and

 

          3   judgment to decide which grants get awarded?

 

          4                   MR. NELSON:  Madam Chairman, I have not

 

          5   specified that.  That is to come with their process and

 

          6   procedures that they're to set up by rule and regulation.

 

          7                   SENATOR SCOTT:  So, Madam Chairman, what

 

          8   we've got here is the -- you're eligible to apply but

 

          9   we're leaving to the judgment of the state department

 

         10   without any particular criteria as to which of those are

 

         11   to be awarded?

 

         12                   MR. NELSON:  Again, I took it from the

 

         13   report.  What I provided is an outline of a program, and

 

         14   yes, those are not specifically stated by statute.  The

 

         15   committee is encouraged to add and put the criteria that

 

         16   they want in there.

 

         17                   COCHAIR DEVIN:  So the process is here,

 

         18   the amount is here --

 

         19                   MR. NELSON:  Very similar to the

 

         20   vocational education program.  This is pretty similar to

 

         21   what we put together for that program.

 

         22                   COCHAIR DEVIN:  But not specifics.

 

         23                   MR. NELSON:  Yes.

 

         24                   COCHAIR DEVIN:  Some of those criteria

 

         25   discussed this morning on contingency which was high

 

 

 

 


 

 

 

                                                                     133

 

          1   number of justified -- of students that can be justified,

 

          2   that you had an extraordinarily higher-than-average

 

          3   number, that you had an exceptionally high-cost student or

 

          4   an exceptionally high-cost person in a situation were the

 

          5   ones that would indicate -- anytime you establish a

 

          6   process like that, there's a significant amount that will

 

          7   go into rule.  And the committee needs to think about what

 

          8   they would like to go into statute versus that rule, but a

 

          9   lot of that process needs spelled out.

 

         10                   MR. NELSON:  Continuing, Madam Chairman,

 

         11   bottom of page 5 and the top of page 6, again, these are

 

         12   duties that we're imposing upon the state department to

 

         13   implement various programs and activities and duties to

 

         14   carry out the requirements of the cost-based adjustment.

 

         15             1 is to establish guidelines and criteria for

 

         16   the accounting and the computing of the FTE equivalency

 

         17   basis for personnel, staff, so forth that are used in

 

         18   tying ADM to the guidelines.  And again, this is similar

 

         19   to what you did in the vocational education proposal, only

 

         20   this is dealing with the special education.

 

         21             Paragraph 24 at the bottom of page 5 and the top

 

         22   of page 6 requires the -- little bit more vigorous duties

 

         23   for the state department in identifying, reviewing and

 

         24   assessing district practices in terms of the provision of

 

         25   special education programs which, again, was a

 

 

 

 


 

 

 

                                                                     134

 

          1   recommendation of the report.

 

          2             Paragraph 25 requires them to measure and track

 

          3   student performance that are enrolled in special education

 

          4   programs, and 26 requires them to establish the necessary

 

          5   procedural and monitoring requirements for the

 

          6   supplemental education program, assistance program which

 

          7   you may want to embellish.

 

          8             21-3-314 is a conforming amendment with the

 

          9   charter school law and it simply excludes treatment for

 

         10   special education treated as a 100 percent reimbursement. 

 

         11   We put it into the cost-based model so we put it in there

 

         12   to consider the 100 percent reimbursement as a way to

 

         13   consider reimbursement to charter schools.

 

         14             21-3-127 is the statutory provision for the

 

         15   cost-based adjustment, and it continues over to page 14, I

 

         16   believe.  So this is really the guts of the computation. 

 

         17   First of all, we just deleted the definition that's no

 

         18   longer relevant.  It was in terms of looking at the 100

 

         19   percent reimbursement.

 

         20             The top of page 8 is where we begin with the

 

         21   definitions of the formula components that are included in

 

         22   the model.  And as I say, they're taken pretty much from

 

         23   the AIR report.  The top of page 8 is the definition of

 

         24   FTE, what, in essence, that means.

 

         25             Paragraph (iv) is what we mean when we speak of

 

 

 

 


 

 

 

                                                                     135

 

          1   special education personnel in the computation for

 

          2   applying that measure to the guidelines.  And the same for

 

          3   special education administrative staff and special

 

          4   education teacher and special education related service

 

          5   provider.  These are all referenced within the components

 

          6   of the formula.

 

          7             Subsection (b) is where the adjustment --

 

          8                   SENATOR SESSIONS:  Madam Chairman.

 

          9                   REPRESENTATIVE LOCKHART:  Madam Chairman.

 

         10                   COCHAIR DEVIN:  Representative Lockhart.

 

         11                   REPRESENTATIVE LOCKHART:  Question and

 

         12   clarification on that, Madam Chairman.  We were visiting

 

         13   at lunch about the special help that's needed for some

 

         14   students in this program.  And as I read this it says

 

         15   certified or licensed, and I was thinking about, Jeff, the

 

         16   person that came from, I guess, outside the school system

 

         17   on a one on one.  Would they be certified or licensed?

 

         18             That answers my question.  I was thinking school

 

         19   certified and licensed and apparently that answers my

 

         20   question.

 

         21                   SENATOR SESSIONS:  Madam Chairman.

 

         22                   COCHAIR DEVIN:  Yes, Senator Sessions.

 

         23                   SENATOR SESSIONS:  I have a question along

 

         24   those same lines because in the No Child Left Behind

 

         25   there's a real gray area about certified instructional

 

 

 

 


 

 

 

                                                                     136

 

          1   assistance if you use federal money.

 

          2             Now, if -- and maybe Jeff can answer this, if we

 

          3   commingle -- we commingle special education monies with

 

          4   federal and state monies, so that means, then, that every

 

          5   special ed assistant in our districts will have to be

 

          6   certified.  That's the question that -- and the same way

 

          7   with title schools.

 

          8                   COCHAIR DEVIN:  Can anyone help us on

 

          9   those sets of rules?

 

         10                   MS. MOFIELD:  I'm Sara Mofield, a special

 

         11   ed consultant.  Right now special education para-educators

 

         12   do not have to have certification.  However, with the

 

         13   reauthorization of IDEA, which we're looking at this

 

         14   summer, that is a very likely possibility.

 

         15                   REPRESENTATIVE WASSERBERGER:  Madam

 

         16   Chairman, if I may add, that most special programs

 

         17   departments in school districts are rushing to get

 

         18   para-educators in this field and they are doing all kind

 

         19   of in-services through the state and through school

 

         20   districts to get that done.

 

         21             So yeah, it was a new area in special programs

 

         22   that came through with the No Child Left Behind act.

 

         23                   COCHAIR DEVIN:  And apparently the new

 

         24   IDEA recertification.  Now, then, the Professional

 

         25   Teaching Standards Board would issue that certification,

 

 

 

 


 

 

 

                                                                     137

 

          1   will they, or will it be issued by someone else?

 

          2                   MS. MOFIELD:  Madam Chairman, that

 

          3   determination has not been made yet.

 

          4                   COCHAIR DEVIN:  These are the

 

          5   paraprofessionals.

 

          6                   SENATOR SESSIONS:  Madam Chairman, just a

 

          7   question.  Is there a phase-in of the paraprofessionals of

 

          8   the assistants or is it just wham, the beginning of next

 

          9   school year they will all have to be certified?

 

         10                   REPRESENTATIVE WASSERBERGER:  Madam

 

         11   Chairman, I think I can answer that.  Yeah, there is a

 

         12   phase-in and actually a grandfather clause for those aides

 

         13   in special programs right now, they will be grandfathered

 

         14   in.  But most of them in my building are taking the

 

         15   para-educator courses to be certified.  So there is a

 

         16   phase-in by the federal government.

 

         17                   COCHAIR DEVIN:  And I had not heard the

 

         18   phase-in piece addressed.  I heard the grandfathering

 

         19   piece addressed.

 

         20                   SENATOR SESSIONS:  Madam Chairman, I think

 

         21   there's a question about the grandfathering, though.  You

 

         22   can use a grandfathering thing in with your instructional

 

         23   assistants if you're not a chapter school -- a title

 

         24   school.  I mean, there is a problem because if you're

 

         25   using federal money, there's a requirement that they be

 

 

 

 


 

 

 

                                                                     138

 

          1   certified.

 

          2             And I got a phone call from an instructional

 

          3   assistant and she said that if you're -- you have to be

 

          4   certified if you use federal money within your school,

 

          5   your title schools and the commingling of special ed

 

          6   funds.  There's no grandfathering.  You either are

 

          7   certified or you have no job.

 

          8                   COCHAIR DEVIN:  I'm not sure that's a

 

          9   resolved issue because that is in the IDEA that is to be

 

         10   yet authorized this spring.

 

         11             So probably she needs to be communicating on the

 

         12   federal level at this point in time.

 

         13                   MR. NELSON:  Continuing, Madam Chairman,

 

         14   page 9 at the bottom and continuing over onto 10 through

 

         15   the top of page 12 is the actual computation where you

 

         16   take the district's average daily membership and apply it

 

         17   to the standards and the guidelines that were contained

 

         18   within the report to arrive at staffing levels.  And

 

         19   that's really the core of the recommendation.

 

         20             So instead of the -- the stricken language on

 

         21   page 9, lines 16 through 20, gets rid of the 100 percent

 

         22   reimbursement language and instead of that you compute for

 

         23   each district.

 

         24             Paragraph (a) there on the top of page 10 deals

 

         25   with the special education personnel that guidelines have

 

 

 

 


 

 

 

                                                                     139

 

          1   been set for in that model.  You would take the average

 

          2   daily membership of that district for the prior school

 

          3   year and apply it to those guidelines to arrive at a

 

          4   staffing level.

 

          5             From that you would subtract any average daily

 

          6   membership that meets the qualifications for a remote

 

          7   school.  As you recall, there was special treatment for

 

          8   remote schools in providing special education services,

 

          9   and they were applied to a different set of guidelines.

 

         10             And the qualifications for remoteness were the

 

         11   mileage of 15 miles or more from the location of the

 

         12   district office as well as at least 50 or less within your

 

         13   special education program.  So those would be the triggers

 

         14   that would identify remoteness.

 

         15             And that average daily membership for those

 

         16   schools would be applied to a different set of guidelines. 

 

         17   And those both deal with special education teachers as

 

         18   well as special education related sorts of providers.  So

 

         19   there would be two sets of guidelines applied to those

 

         20   circumstances.

 

         21             Following that computation, there's an amount

 

         22   that's added for the district administrative staffing. 

 

         23   Again, that's based upon average daily membership and it

 

         24   is applied to those sets of guidelines impacting that.  

 

         25             And the last set of guidelines that are involved

 

 

 

 


 

 

 

                                                                     140

 

          1   include the nonpersonnel component as well as the

 

          2   additional special education services component, again,

 

          3   all having special guidelines applied to them to deal with

 

          4   things like transportation and so forth.

 

          5             But you would do that for each district and

 

          6   following application of ADM you would arrive at an amount

 

          7   and then that amount would be tallied and would be divided

 

          8   by the three-year rolling ADM and would be an adjustment

 

          9   to the cost-based model, and it would fit into the

 

         10   existing set of adjustments that are identified in

 

         11   statute.

 

         12             That, in essence, is the adjustment.  The other

 

         13   important part of the adjustment appears at page 16,

 

         14   subparagraph (f) or subsection (f) -- oops, not 16 --

 

         15   13 -- no, 14.  And that simply is a statement that we do

 

         16   not intend to reduce the maintenance of effort under the

 

         17   federal law.  And that is important because it does

 

         18   provide you a base from which you work in the

 

         19   computations.

 

         20             And so those are the prime elements.  Subsection

 

         21   (e), that as repealed deals with the old 100 percent

 

         22   reimbursement.  It was kind of an incentive to reduce

 

         23   expenditures.  It would no longer apply.

 

         24             Getting into the other parts of the bill,

 

         25   section 4, this is the two-year phase-in, as we call it. 

 

 

 

 


 

 

 

                                                                     141

 

          1   In essence, what you do, in the first year of application

 

          2   of this law you would base 50 percent funding on the 100

 

          3   percent reimbursement basis and the other 50 percent under

 

          4   the cost-based method, and that -- those two added

 

          5   together would comprise the first year funding under this

 

          6   approach.

 

          7             The second year, then it would go to the full

 

          8   100 percent of the cost-based method that we just

 

          9   reviewed.

 

         10             Section 5, this brings in the regionalization

 

         11   concept, and what we require is that the state department

 

         12   would review that, would come back with a plan to this

 

         13   committee on or before November 1 and present a plan on

 

         14   how this may be implemented statewide.

 

         15             Subsection (b), this requires the state

 

         16   department and the Department of Audit, school finance

 

         17   section, to review the data that's used in establishing

 

         18   the statewide guidelines in the model and to make sure and

 

         19   validate the accuracy.  Same kind of procedure we did for

 

         20   the voc ed on the information that we used in its

 

         21   cost-based approach.  And that essentially is section 5.

 

         22             Section 6 is the money part.  Subsection (a)

 

         23   earmarks $2 million within the school foundation program

 

         24   for the supplemental assistance, and subsection (b)

 

         25   provides 908,000 to the state department for the beefed-up

 

 

 

 


 

 

 

                                                                     142

 

          1   monitoring programs, the supplemental program, the review

 

          2   of the standards, and the other requirements that's

 

          3   imposed on them under this as well as five additional

 

          4   people.  And so that's included.

 

          5             And then section 7 is just the effective dates.

 

          6             I apologize, Madam Chairman, we did not finish

 

          7   this until yesterday so that's why you're getting it

 

          8   today.

 

          9                   COCHAIR DEVIN:  Senator Scott, you had a

 

         10   question.

 

         11                   SENATOR SCOTT:  Yeah, question on the

 

         12   appropriation.  As I understand, these applications will

 

         13   come in over the year, course of the year, as

 

         14   circumstances and needs arise.  What happens when the

 

         15   amount of the legitimate applications exceeds the $2

 

         16   million appropriation?

 

         17                   MR. NELSON:  Under this proposal what we

 

         18   do is prorate it the best we can, trying to keep true to

 

         19   the exact amount, but again, 2 million is based on their

 

         20   recommendation.  It could very well be exceeded, but as I

 

         21   said, under this draft -- and that language is page 3 --

 

         22   maybe it is page 4 --

 

         23                   REPRESENTATIVE MCOMIE:  Page 4.

 

         24                   MR. NELSON:  -- page 4, you're right,

 

         25   lines 11 through 19, which would kick in should that

 

 

 

 


 

 

 

                                                                     143

 

          1   circumstance happen.

 

          2                   SENATOR SCOTT:  Madam Chairman.

 

          3                   COCHAIR DEVIN:  Yes.

 

          4                   SENATOR SCOTT:  Let me see if I understand

 

          5   this.  As I say, my understanding the way this would work

 

          6   is that you would get applications in over the course of a

 

          7   year.  This isn't the sort of thing where there's an

 

          8   application up front and everybody has the same deadline

 

          9   and the reason for that is you weren't sure what was going

 

         10   to happen to you at the beginning of the year.  Additional

 

         11   kids move into the district and additional kids get

 

         12   identified for special education.  Your costs then go up.

 

         13             So you said, look, we've got an identified

 

         14   problem.  We've got a grant for a hundred thousand to

 

         15   supplement, and we then -- the total number of grants then

 

         16   exceeds the amount available, all of a sudden you get a

 

         17   quarter of the way into the year or halfway through the

 

         18   year, and you find out it wasn't for 100,000 but for

 

         19   90,000 and you were building for that level.

 

         20             It seems to me we're building in a land mine

 

         21   that is going to get us in trouble.  I don't have an

 

         22   answer but I can see where trouble is likely to come

 

         23   because of the nature of this piece.

 

         24                   COCHAIR DEVIN:  Well, and Senator Scott,

 

         25   with the infusion of the new federal money at this point

 

 

 

 


 

 

 

                                                                     144

 

          1   in time, we may have a bridge where we select some

 

          2   history, knowing we've got about a $2 million fund there

 

          3   coming into districts.

 

          4             Part of this I guess is going to be -- part of

 

          5   it would have to be some collection of some historical

 

          6   what do we need in this fund.  Maybe you would use the 2

 

          7   million in the first year and have to come back for

 

          8   supplemental -- is this annual?

 

          9                   MR. NELSON:  It is annual.

 

         10                   COCHAIR DEVIN:  So you may have to come

 

         11   back for supplemental and increase the amount.  I'm not

 

         12   sure other than the professional judgment applied how we

 

         13   would make an appropriation that had a sliding scale.

 

         14                   SENATOR SCOTT:  Madam Chairman, obviously

 

         15   the way you do it is the same way as we do the foundation

 

         16   as a whole, and you don't put a specific appropriation in

 

         17   and assume the foundation program would pay, which is

 

         18   basically our current system, is it not?

 

         19                   MR. NELSON:  Yes.

 

         20                   REPRESENTATIVE MCOMIE:  Madam Chairman,

 

         21   the way I read that on lines 11 through 19, page 4, is

 

         22   that if it exceeds the amount, the $2 million, you would

 

         23   have to go back and prorate that and say to the school

 

         24   districts, "Well, you know, you got a hundred thousand of

 

         25   proration.  Why are you only entitled to 85,000?"  So

 

 

 

 


 

 

 

                                                                     145

 

          1   we're not truly cost funding that grant.  Is that the way

 

          2   this reads?

 

          3                   MR. NELSON:  Madam Chairman, the

 

          4   supplemental program is outside of the cost-based model. 

 

          5   It is to take care of supplemental funding.  And what that

 

          6   is is if for some reason you do exceed that due to

 

          7   circumstances beyond your control or for whatever reason,

 

          8   that as Senator Scott points out, that state department

 

          9   will have leverage in determining that, then you get this

 

         10   additional aid.

 

         11             But yes, that is a concern that should you need

 

         12   100,000, we only have 90,000 or whatever.  There is that

 

         13   concern.

 

         14             But again, the 2 million was brought forward

 

         15   from the study.  They felt that that would be sufficient

 

         16   in their judgment, for what -- if that helps you at all.

 

         17                   REPRESENTATIVE MCOMIE:  Madam Chairman,

 

         18   what I'm concerned about -- and I understand, but the way

 

         19   this reads is that "shall establish a uniform percentage

 

         20   by which the amount requested by each district is so

 

         21   reduced so the amounts distributed under this section for

 

         22   that year are nearly as possible equal to the amounts

 

         23   requested by the district."

 

         24             I thought they were supposed to get this money

 

         25   up front.  When they requested it I thought -- they submit

 

 

 

 


 

 

 

                                                                     146

 

          1   the voucher and say this is how much it is costing me, we

 

          2   replace that.

 

          3                   MR. NELSON:  That's correct, Madam

 

          4   Chairman.

 

          5                   REPRESENTATIVE MCOMIE:  But the way this

 

          6   reads to me, you could go back in -- if we ran out of the

 

          7   $2 million, you could go back in and say we're not going

 

          8   to have the money, we've had more requests coming in, so

 

          9   you're not going to even get this this time.

 

         10                   COCHAIR DEVIN:  Mr. Biggio, would you shed

 

         11   some light on this?  I know that our payments are made,

 

         12   what, on a -- 11 payments a year?

 

         13                   MR. BIGGIO:  Madam Chairman, Larry Biggio

 

         14   from the Department of Education.  We currently make

 

         15   foundation payments three times a year:  August, October

 

         16   and February.  But under this provision if you intend us

 

         17   to do something on -- to meet cash flow needs, and I

 

         18   assume maybe that was part of your concern, we would have

 

         19   a hard time doing any kind of proration if we were trying

 

         20   to meet cash flow needs.  You're almost to the point of

 

         21   saying let's roll all of the requests up at one point

 

         22   after the fact and then distribute the money.

 

         23             So I would have a hard time dealing with this

 

         24   until I saw all of the requests on the table and then make

 

         25   a decision about proration.

 

 

 

 


 

 

 

                                                                     147

 

          1                   COCHAIR DEVIN:  Mr. Biggio, let me ask you

 

          2   a question.  If you have a student and the IEP indicates

 

          3   certain services, they're not all going to be delivered at

 

          4   once.

 

          5                   MR. BIGGIO:  Correct.

 

          6                   COCHAIR DEVIN:  You would have that

 

          7   payment over the year.  So would you envision you would

 

          8   make it in three payments or maybe in two payments because

 

          9   of the timing of the payments?

 

         10                   MR. BIGGIO:  I'm back to that issue, Madam

 

         11   Chairman, as we talked about earlier on proration.  I'm

 

         12   not clear how I would prorate the payment.

 

         13                   COCHAIR DEVIN:  If you set the proration

 

         14   apart at this point in time, how would you make the

 

         15   payments?

 

         16                   MR. BIGGIO:  On a monthly or quarterly

 

         17   basis.  My assumption, we wouldn't get to the point of

 

         18   being overexpended until maybe the second half of the

 

         19   year.  And we're incurring those costs and I would not

 

         20   want to make a payment until the district had a short-term

 

         21   obligation for that payment, like in the next month or

 

         22   within that next quarter.

 

         23             So I would see probably doing something

 

         24   quarterly or monthly and primarily at the last part of

 

         25   that year of funding, the second half of that year of

 

 

 

 


 

 

 

                                                                     148

 

          1   funding.  If we had to go back to the pro-rata sort of

 

          2   thing, those adjustments would have to come out of the

 

          3   foundation payments.

 

          4                   MR. BIGGIO:  Madam Chairman, my question

 

          5   is you wouldn't want to make a decision on pro rata until

 

          6   after I'd seen all the requests, after the close of the

 

          7   year.  Sometime after June 30th, I take the requests for

 

          8   payment, roll them up and match them to the 2 million and

 

          9   decide if I had to cut, you know, everybody by 15 percent

 

         10   or everybody by 10 percent.

 

         11                   COCHAIR DEVIN:  Does that sort of give you

 

         12   a picture of the implementation pieces?

 

         13                   REPRESENTATIVE MCOMIE:  Yes.

 

         14                   COCHAIR DEVIN:  Senator Scott.

 

         15                   SENATOR SCOTT:  Madam Chairman, if you

 

         16   follow that procedure and say you're funding on a monthly

 

         17   basis, which I think is something you might have to do,

 

         18   you then come to the end of the year and you've spent not

 

         19   2 million but 2.5 million -- and I'm afraid in this area

 

         20   that sort of thing can happen to you -- and you come back

 

         21   and say, oops, school districts, we put out 25 percent too

 

         22   much, are you then going to try to recapture that from all

 

         23   of the districts?

 

         24                   MR. BIGGIO:  Madam Chairman, Senator

 

         25   Scott, the way I understand the intent of this

 

 

 

 


 

 

 

                                                                     149

 

          1   legislation -- and correct me if I'm wrong -- if you

 

          2   establish a limit, maximum amount we can pay under this

 

          3   contingency fund, so in order to stay within that limit I

 

          4   would somehow have to get that money back from the

 

          5   districts that I've already paid it to and they've already

 

          6   incurred the expense, it would somehow have to come out of

 

          7   either next year's foundation payment or some sort of

 

          8   billing to those folks, in that fashion.

 

          9                   SENATOR SCOTT:  That's going to be a

 

         10   difficulty, I think, in the cost-based system.  If he

 

         11   tries to do it -- and I think you can tell how much

 

         12   difficulty --

 

         13                   COCHAIR DEVIN:  We've never seen any come

 

         14   back even when it was inappropriately paid out, have we?

 

         15                   SENATOR SCOTT:  We couldn't even get an

 

         16   offset on the stuff.

 

         17                   REPRESENTATIVE LOCKHART:  Madam Chairman,

 

         18   it strikes me this is not unlike what we do with all other

 

         19   departments within government where we have a budgeted

 

         20   amount and for whatever reason we run into trouble.  I

 

         21   think this would enforce some discipline on the Department

 

         22   of Education on those that were chosen for these -- this

 

         23   $2 million, to not exceed it if they possibly could.

 

         24             And I think that would be the intent of having

 

         25   the figure in here in that $2 million, that's what we hope

 

 

 

 


 

 

 

                                                                     150

 

          1   you work towards, we hope that's the right number.  If it

 

          2   is, we change the number as opposed to having a top end. 

 

          3   That sounds like what we do with the other departments,

 

          4   including the Department of Education in other areas like

 

          5   staffing and so forth.

 

          6                   SENATOR SCOTT:  Madam Chairman, it does,

 

          7   but this one is a bit of different beast.  Having written

 

          8   a number of provisions that affect the health area, here

 

          9   you've got money expenditures where there is an

 

         10   enforceable federal entitlement to the services.  That is

 

         11   a significant complication.

 

         12             You also have typically in the other areas --

 

         13   I'm thinking of the things we do in the health department,

 

         14   they -- in Medicaid what they do is simply carry the

 

         15   bill -- don't pay the bill and carry it over to the next

 

         16   year and come back to us for more money, which I suspect

 

         17   would happen here.  That's the closest parallel.

 

         18             You can't do moratoriums on enrollment.  You

 

         19   can't cut down the eligibility to make the funds stretch. 

 

         20   That's the other things we do in the health area.  I

 

         21   really suspect that what you're seeing is the 2 million

 

         22   appropriation is a fiction and they will simply have to

 

         23   expend the money and come back to us and say, "We've got

 

         24   to have more money because we spent next year's

 

         25   appropriation already."  And that is what happens to us in

 

 

 

 


 

 

 

                                                                     151

 

          1   the Medicaid area.

 

          2                   COCHAIR DEVIN:  Senator Sessions.

 

          3                   SENATOR SESSIONS:  Madam Chairman, just a

 

          4   short -- I have to bring this up before we go on, and I

 

          5   would like some opinion given, which I had asked for

 

          6   earlier but no one spoke to it.

 

          7             I gave -- and it is in reference to what is

 

          8   going on -- we're trying to do as far as the lawsuit goes. 

 

          9   I gave you a copy of the tentative plan for the

 

         10   facilitation of the lawsuit earlier in the summer and now

 

         11   what we've done with it is we've taken it to the governor

 

         12   to let him see it to see what he would be willing to do,

 

         13   if he would take charge or if he wants it put through the

 

         14   legislature.

 

         15             I have seen us on the brink of maybe being able

 

         16   to sit down at the same table and discuss issues and maybe

 

         17   come to some terms on what is happening with the lawsuit

 

         18   and the funding formula.

 

         19             What I'm seeing with this, and I'm most

 

         20   uncomfortable with this, is that we're putting something

 

         21   else within that formula.  And I think when we put it into

 

         22   the formula, it comes under the scrutiny of the court

 

         23   also, and you have another reason, then, for going back to

 

         24   court.  And I don't know about you, I've been at this a

 

         25   long time and I'm tired of it.  And I will tell you why,

 

 

 

 


 

 

 

                                                                     152

 

          1   because school districts are unable to do any long-term

 

          2   planning for students.  They cannot plan on anything long

 

          3   term.

 

          4             And we have got to end it.  And we have got to

 

          5   fund it within the resources we have as a state also.

 

          6             But, that said, with our 15 -- we have this --

 

          7   when we're going back to miles again and putting it

 

          8   arbitrarily in the statute are we not bumping up against

 

          9   what was said in our Supreme Court decision about how

 

         10   arbitrary that is and that's why we went to an adjusted

 

         11   formula, so to speak, for small schools?

 

         12             If I'm off base, Dave, tell me.  But this is

 

         13   such a concern to me because we're infusing something else

 

         14   in a mix that we have a chance, maybe, of solving.  And

 

         15   then keeping this on the outside of it, however we plan to

 

         16   do it, would be my hope, at least for now to see how this

 

         17   comes out before our hold harmless for small districts

 

         18   comes out in another year.

 

         19                   COCHAIR DEVIN:  Dave, would you answer the

 

         20   part on the philosophical -- the 15-mile piece?

 

         21             Before we get too far into philosophical, it

 

         22   would be good for the committee to review the other bill.

 

         23                   REPRESENTATIVE SIMONS:  Madam Chairman,

 

         24   before he answers may I ask a question on that same

 

         25   subject?  That section (b) gives me heartburn.  Here we

 

 

 

 


 

 

 

                                                                     153

 

          1   have small schools, small districts and now we have remote

 

          2   schools.  Where do remote schools come from?  All of my

 

          3   schools are under one district but they're not 15 miles

 

          4   apart and they all have got a lot of kids in them and now

 

          5   they're going to be remote schools?

 

          6             We're -- again, small schools take it in the

 

          7   shorts and I'm really very disturbed with this particular

 

          8   little section, as you might well knew I would be, and so

 

          9   I want an explanation of where remote came from.  I know I

 

         10   have been negligent because of illness in my family of

 

         11   attending these meetings and I apologize to the committee

 

         12   for that, but I need to be brought up to speed why we have

 

         13   three different definitions for small districts, small

 

         14   schools.

 

         15                   MR. NELSON:  I will try, Madam Chairman,

 

         16   Dr. Parrish -- I don't want to put words in his mouth or

 

         17   speak incorrectly, but this came from his report and it is

 

         18   based on a provision of services.  Not only do you have it

 

         19   here but also in voc ed.  There's another remote

 

         20   feature --

 

         21                   REPRESENTATIVE SIMONS:  Figures.

 

         22                   MR. NELSON:  There's a number of

 

         23   remoteness going around.  But essentially, I believe what

 

         24   this is trying to measure is what they felt in their

 

         25   research and their review of the data that the provision

 

 

 

 


 

 

 

                                                                     154

 

          1   of services in these locations require additional

 

          2   consideration.  And that's just based upon only special ed

 

          3   and not looking beyond, as we do, a big picture, much as

 

          4   the voc ed people do.

 

          5             But again, it is based upon their review of

 

          6   setting standards that they felt there must be an

 

          7   additional consideration for these circumstances and

 

          8   that's how they described them.

 

          9                   REPRESENTATIVE SIMONS:  Madam Chairman,

 

         10   the 15 percent or the 15 mile and the 50 percent came

 

         11   directly from Mr. Parrish?  Those were the figures he gave

 

         12   you?

 

         13                   MR. NELSON:  Yes, Madam Chairman, the 15

 

         14   mile as well as the 50 or less students enrolled in a

 

         15   program were his recommendations as to a threshold to

 

         16   activate this adjustment -- this special guideline.

 

         17                   COCHAIR DEVIN:  So this is additional

 

         18   money that would be given?

 

         19                   MR. NELSON:  It is an additional amount. 

 

         20   What you do, instead of applying to the overall statewide

 

         21   guideline, which is what your guidelines for special

 

         22   education personnel are on the district basis, you apply

 

         23   your student numbers to that.  This says in remote areas

 

         24   there are special guidelines put together to provide the

 

         25   required special education effort.

 

 

 

 


 

 

 

                                                                     155

 

          1             And so he doesn't call them the special

 

          2   education personnel.  He divides it up into special

 

          3   education teachers as well as contractors, providers,

 

          4   people you contract services out to.  So there are two

 

          5   special sets of circumstances.  But again, it is another

 

          6   remoteness feature built into this.

 

          7                   REPRESENTATIVE SIMONS:  Madam Chairman,

 

          8   may I ask one more question?

 

          9                   MR. NELSON:  I hope I can answer it.

 

         10                   REPRESENTATIVE SIMONS:  What's the

 

         11   provision?

 

         12                   MR. NELSON:  15 or less and 50 or less.

 

         13                   REPRESENTATIVE SIMONS:  This is

 

         14   ridiculous.  In my district Moorcroft is 35 miles from

 

         15   Sundance, Hulett is 40, and now they've then become

 

         16   remote --

 

         17                   COCHAIR DEVIN:  Well, I think he --

 

         18                   REPRESENTATIVE SIMONS:  -- but they're

 

         19   within the district?  That's ridiculous.

 

         20                   COCHAIR DEVIN:  His purpose, as I

 

         21   understood, he believes there were additional costs to

 

         22   districts like Marlene's to provide the special education,

 

         23   more administrative costs and more personnel costs, so it

 

         24   would get additional money to that type of a district

 

         25   because it can't do it as efficiently as an urban

 

 

 

 


 

 

 

                                                                     156

 

          1   district.

 

          2             Senator Scott.

 

          3                   SENATOR SCOTT:  Madam Chairman, another

 

          4   question of how this would work.  This formula generates

 

          5   an amount they're needing for special education.  The

 

          6   district implements a series of programs working with the

 

          7   preschools and whatnot, significantly reduces the demand. 

 

          8   And I think that's something there's a real probability

 

          9   for.

 

         10             There's nothing in here that ties that special

 

         11   ed money to actually being used on special ed as opposed

 

         12   to the preventative things, is there, other than you got

 

         13   to keep square with the feds if you want the federal

 

         14   money? 

 

         15             So that would be a real major advantage of this

 

         16   system.  The districts would have the flexibility to spend

 

         17   the money on the preventative aspects if they thought it

 

         18   could work.

 

         19                   COCHAIR DEVIN:  Would you walk us through

 

         20   the other option, the other bill?

 

         21                   MR. NELSON:  Yes, Madam Chairman.  We will

 

         22   get a copy passed out.  This one is 314.W3, and Mary is

 

         23   getting a copy to you as we speak.

 

         24             What Mary is handing out, this is the 100

 

         25   percent reimbursement approach with statewide standards

 

 

 

 


 

 

 

                                                                     157

 

          1   which are the guidelines that are used in the cost-based

 

          2   approach, but they're considered statewide standards that

 

          3   would be there for monitoring and assessment purposes by

 

          4   the state department.  And that really in essence is the

 

          5   purpose of this bill as opposed to the other bill.

 

          6             Briefly going through the bill, on page 2 are

 

          7   the additional duties that we would assign to the state

 

          8   department.  And under this approach, they would be

 

          9   charged with the duty to establish these statewide

 

         10   guidelines and would be using that to assess the programs

 

         11   and services provided in schools to address the concern,

 

         12   as we heard this summer, in the AIR reporting about the

 

         13   level that was being provided statewide in that there were

 

         14   some districts they did not feel were providing programs

 

         15   to the extent they should.

 

         16             So that's trying to deal with that part of it.

 

         17   Again, they're to monitor practices done by the districts,

 

         18   to assess the variations, that sort of thing; again,

 

         19   building on what I just told you as well as to measure and

 

         20   track student performance.  So those are the kind of areas

 

         21   that we add to their duties.

 

         22             And then we speak about in subsection (f) on

 

         23   page 3 about their assessment and how they will report

 

         24   that to the committee and to keep the legislature in the

 

         25   loop as to the job students are doing in special education

 

 

 

 


 

 

 

                                                                     158

 

          1   programs.

 

          2             What we do is we keep that language that exists

 

          3   in current law on the 100 percent reimbursement.  What we

 

          4   do here at the top of page 3, which is a thing you should

 

          5   be aware of, is that we repeal -- every year we generally

 

          6   go in and reauthorize the 100 percent reimbursement.  If

 

          7   you recall, for those of you that were back in the

 

          8   Education Committee when we were looking at the first

 

          9   cost-based models, the legislature always -- always

 

         10   anticipated reviewing the 100 percent reimbursement at

 

         11   some point in time, so every year we just keep

 

         12   reauthorizing the 100 percent reimbursement approach.

 

         13             We repeal that completely and it would go on

 

         14   forever unless we did something else.  It would not

 

         15   require us to come back in and reauthorize it every year.

 

         16                   COCHAIR DEVIN:  I think, then, Mr. Nelson,

 

         17   that changes my answer to Senator Goodenough this morning

 

         18   when he asked if the system would go on if we didn't take

 

         19   action as it currently is and I said yes, without the

 

         20   guideline monitors that are suggested.  And you remind me,

 

         21   we actually have to reauthorize.  So my error.

 

         22                   MR. NELSON:  The provisions on page 4, is

 

         23   there any question about that sort of change?

 

         24                   SENATOR SCOTT:  Madam Chairman.

 

         25                   COCHAIR DEVIN:  Senator Scott.

 

 

 

 


 

 

 

                                                                     159

 

          1                   SENATOR SCOTT:  Page 4, lines 1 through 8,

 

          2   I read that as the State Department of Education was going

 

          3   to set rules and regulations that were going to prescribe

 

          4   special education staffing all over the state.  Is that a

 

          5   correct reading of that?

 

          6                   MR. NELSON:  That is it exactly.  Putting

 

          7   together in rule and regulation some kind of yardstick to

 

          8   measure provision of special education services based on

 

          9   staffing which are the guidelines that are in the AIR

 

         10   report.

 

         11                   SENATOR SCOTT:  Madam Chairman, I don't

 

         12   read that as assessment.  I mean, it says adopt rules and

 

         13   regulations implementing staffing guidelines.  This sounds

 

         14   to me like you're telling Crook County School District

 

         15   thou shalt employ one but not two speech therapists.  Is

 

         16   that a correct reading of that language?

 

         17                   MR. NELSON:  Madam Chairman, it is

 

         18   probably the fault of my drafting.  I don't think it was

 

         19   intended to prescribe.  What it is trying to do is put out

 

         20   a standard level of staffing for which we can compare for

 

         21   measuring the districts' programmatic -- program services

 

         22   and anyway, their addressing of the special education

 

         23   needs.

 

         24             This was the option 2 or 3, I believe, that was

 

         25   discussed at the Casper meeting.  And that's what it

 

 

 

 


 

 

 

                                                                     160

 

          1   recommended.

 

          2                   SENATOR SCOTT:  Madam Chairman.

 

          3                   COCHAIR DEVIN:  So we would look at more

 

          4   the level of staffing by which you would assess their

 

          5   program.  They may be able to do the job.  If that

 

          6   staffing suggests two speech therapists, they may be

 

          7   getting the job done with one or one and a half, but they

 

          8   would need to substantiate that.

 

          9                   MR. NELSON:  Exactly.

 

         10                   SENATOR SCOTT:  Madam Chairman, I don't

 

         11   think it says what he's describing and it may need some

 

         12   work.

 

         13                   COCHAIR DEVIN:  Go ahead.  I will mark

 

         14   this area.

 

         15                   MR. NELSON:  That is subsection (a) we

 

         16   just got through discussing, and again, that was the

 

         17   intent with some crafting.

 

         18             The other provision that goes along with that is

 

         19   that process that they would establish that would review

 

         20   the guidelines every five years to keep them current.

 

         21             Subsection (c) is the regionalization study to

 

         22   provide some kind of regionalization approach to

 

         23   delivering special education programs.  Again, that's

 

         24   similar to what is contained in the other bill with the

 

         25   November 1 reporting date back to the special education

 

 

 

 


 

 

 

                                                                     161

 

          1   committee.

 

          2             And section 4 is the money.  This is a little

 

          3   bit less primarily due to the absence of the supplemental

 

          4   grant program.  It would contain the other elements the

 

          5   department would need to do absent that, so that's why

 

          6   there's a little bit less under this.

 

          7                   COCHAIR DEVIN:  So that's the one less

 

          8   personnel and the less money as the grant program comes

 

          9   in?

 

         10                   MR. NELSON:  Right, right.

 

         11                   COCHAIR DEVIN:  Any questions on that

 

         12   bill, Committee?

 

         13                   SENATOR PECK:  Madam Chair, by way of

 

         14   perspective, talking about five new people in the one

 

         15   bill and four and a half in the other, are these dealing

 

         16   with the whole scope of special education or just with the

 

         17   $2 million supplemental?  And by comparison, how many

 

         18   people does the state department have now specifically

 

         19   dedicated to dealing with special education?

 

         20                   MR. NELSON:  Madam Chairman, I know Mary

 

         21   Kay and Larry Biggio put this information together, but I

 

         22   believe it is the whole scope.

 

         23                   SENATOR PECK:  Whole scope?

 

         24                   MS. HILL:  Madam Chairman, right now our

 

         25   special education unit is funded exclusively through

 

 

 

 


 

 

 

                                                                     162

 

          1   federal funds and the people who are in that unit within

 

          2   the department are specifically tasked with the

 

          3   requirements of the special education act, IDEA, as well

 

          4   as other tasks.  They're a limited group and what is

 

          5   particularly important is that their authority is also

 

          6   very limited to those issues revolving around federal

 

          7   issues.

 

          8             When we looked at these tasks as recommended by

 

          9   Dr. Parrish, there is an extensive auditing function that

 

         10   requires knowledge of special education as well as how the

 

         11   staffing guidelines work and how the services would be

 

         12   provided.

 

         13             So the staffing requirements don't really change

 

         14   whether the committee goes with the 100 percent or --

 

         15   reimbursement or the block grant model, but it would

 

         16   require a significant change in the way the department has

 

         17   approached special education to the districts.  And right

 

         18   now I think Becca Walk, as you know, has left the

 

         19   department for New Hampshire, so we have, what, three

 

         20   special education staff people right now.

 

         21                   COCHAIR DEVIN:  Yes.

 

         22                   REPRESENTATIVE LOCKHART:  Madam Chairman,

 

         23   this is a question on page 4, subsection (e).  It says the

 

         24   State Department of Education shall not later than June

 

         25   30th, 2002, based on information from November 2002. 

 

 

 

 


 

 

 

                                                                     163

 

          1   Isn't that first one '03?

 

          2                   MR. NELSON:  I think the concern was to

 

          3   get those out as soon as they could to be applicable, so

 

          4   that's why the June 30th before the next year would be

 

          5   July 1.  November 2002 is the date of the next AIR report.

 

          6                   REPRESENTATIVE LOCKHART:  Shouldn't that

 

          7   be June 30, 2003?

 

          8                   MR. NELSON:  You're right.  Sorry about

 

          9   that.

 

         10                   REPRESENTATIVE LOCKHART:  It was the cart

 

         11   before the horse.

 

         12                   MR. NELSON:  That would be kind of hard to

 

         13   do.

 

         14                   REPRESENTATIVE SIMONS:  Isn't that

 

         15   existing language?

 

         16                   MR. NELSON:  No.

 

         17                   REPRESENTATIVE SIMONS:  That's all new

 

         18   language?

 

         19                   MR. NELSON:  Yes.

 

         20                   REPRESENTATIVE MCOMIE:  Madam Chairman.

 

         21                   COCHAIR DEVIN:  Representative McOmie.

 

         22                   REPRESENTATIVE MCOMIE:  Thank you, Madam

 

         23   Chairman.  Madam Chairman, I'm confused as to -- so what

 

         24   we're saying is that we're going to add a million dollars

 

         25   to the budget for new people at the Department of

 

 

 

 


 

 

 

                                                                     164

 

          1   Education to draw guidelines for staffing that are pretty

 

          2   well established by the IEPs, and I'm wondering why we

 

          3   want to do that.

 

          4                   COCHAIR DEVIN:  I think -- and I guess

 

          5   I'll reference you back to the testimony we had in Casper. 

 

          6   The majority of the advisory group -- and I will say in

 

          7   fairness to the advisory group, which one of them reminded

 

          8   us that they ended their meetings before the national

 

          9   comparisons to the SEEP studies came out, but then they

 

         10   have individually expressed their preferences and I think

 

         11   more of them that they would agree that they had

 

         12   identified that we have a very loose system that needs

 

         13   considerably more monitoring if we're going to stay at 100

 

         14   percent.

 

         15             And the testimony there, if I recollect it, and

 

         16   from reviewing the minutes was that they would -- that

 

         17   group and the special education community would prefer the

 

         18   greater oversight in -- and not object to that, and that

 

         19   is -- I mean, right now we basically have extremely

 

         20   limited oversight on 100 percent payment.  We basically

 

         21   look at is the money spent almost legally -- it is almost

 

         22   that narrow -- or the federal fund piece, but we don't

 

         23   really address the over or underidentification, the

 

         24   staffing or any of those pieces.

 

         25                   REPRESENTATIVE MCOMIE:  Well, Madam

 

 

 

 


 

 

 

                                                                     165

 

          1   Chairman, I believe I could support some additional

 

          2   position or something like that to -- somebody would go

 

          3   around to make sure there isn't abuse.  As a matter of

 

          4   fact, I think we had some testimony earlier today about

 

          5   that.

 

          6             But establishing these guidelines and how many

 

          7   people you have and given the fact we've talked about how

 

          8   difficult that is in small districts, remote districts,

 

          9   whatever you want to call it, and the cost with that, I

 

         10   was hoping there would be -- we would be looking at a

 

         11   different way to do this.  I didn't realize that part

 

         12   would be in this second bill.

 

         13                   COCHAIR DEVIN:  If I'm not mistaken, that

 

         14   was the recommendation of the advisory group for these

 

         15   staffing pieces, as you met that you have some sort of --

 

         16   that you developed this in a part of your work.

 

         17                   MR. KOURIS:  Would you like me to answer

 

         18   that?

 

         19                   COCHAIR DEVIN:  Since Dr. Parrish is not

 

         20   here, since we could pick on you and you're at a

 

         21   disadvantage, but it was my understanding the advisory

 

         22   group professionals worked quite a time on that.

 

         23                   MR. KOURIS:  Many of the group here, we

 

         24   welcome oversight, if you would feel more comfortable, if

 

         25   the legislature would feel more comfortable having more

 

 

 

 


 

 

 

                                                                     166

 

          1   audits, come on down and I think the state department with

 

          2   regional services will need more staff positions.  So I

 

          3   think that was our stand on that.

 

          4                   COCHAIR DEVIN:  And Mary Kay and Larry,

 

          5   you were asked to develop this consistent with performing

 

          6   what tasks.

 

          7                   MS. HILL:  Madam Chairman, that is

 

          8   correct.  We did sit down and develop that budget.

 

          9             I would want to make one thing clear for

 

         10   Representative McOmie and that is there's no intention for

 

         11   us to prescribe the IEPs.  That's a fairly sacred process. 

 

         12   What the report implies, that staffing guidelines are

 

         13   established and those are by and large established so the

 

         14   department would take those from the report and through

 

         15   the rule and reg process implement those, either as

 

         16   guidelines according to 314 or actual staffing ratios

 

         17   according to 313.  But the IEP process would not be part

 

         18   of our direct intervention.

 

         19             Then I would want to refer the committee to the

 

         20   regionalization part that we keep hearing over and over

 

         21   again would be very helpful for those districts,

 

         22   particularly in remote locations, to develop expertise and

 

         23   make assistance available in those areas.

 

         24             And the other part of this, which is to monitor

 

         25   student progress, which is also new to us, so that is

 

 

 

 


 

 

 

                                                                     167

 

          1   something of a new world.

 

          2                   COCHAIR DEVIN:  Before you sit down, as I

 

          3   understand it, the measurement of that student progress in

 

          4   this subgroup is one of the requirements we will have to

 

          5   meet, is that correct, adequate yearly progress?

 

          6                   MS. HILL:  Madam Chairman, AIR report

 

          7   requires adequate yearly progress as does No Child Left

 

          8   Behind which was not necessarily incorporated in this but

 

          9   it is certainly hanging out there.

 

         10                   COCHAIR DEVIN:  Does that answer your

 

         11   question?  Do you have another question?

 

         12                   REPRESENTATIVE MCOMIE:  Madam Chairman, it

 

         13   does, but if this is a requirement as of No Child Left

 

         14   Behind, would there be federal money available for funding

 

         15   these positions, then?

 

         16                   MS. HILL:  Madam Chairman, there are no

 

         17   funds available for the special education portion of No

 

         18   Child Left Behind.  There are some anticipated additional

 

         19   funds which would come through the reauthorization of

 

         20   IDEA, just as we saw some new funds coming through last

 

         21   fall.

 

         22             There are under No Child Left Behind some

 

         23   assessment design funds which help us with that student

 

         24   progress and that must necessarily include all students,

 

         25   special education as well.

 

 

 

 


 

 

 

                                                                     168

 

          1                   SENATOR SESSIONS:  Madam Chairman.

 

          2                   COCHAIR DEVIN:  Senator Sessions.

 

          3                   SENATOR SESSIONS:  Madam Chairman, along

 

          4   those lines, though, this is not placing permanent

 

          5   positions in the Department of Ed, is it?  I mean, this

 

          6   stands alone unless those positions are folded into the

 

          7   regular budget, is that not so?

 

          8                   MR. NELSON:  I think they would become

 

          9   permanent sometime but they would be within their budget.

 

         10                   SENATOR SESSIONS:  As of now they aren't.

 

         11                   MR. NELSON:  Exactly.  There's increases

 

         12   in there.

 

         13                   SENATOR SESSIONS:  Madam Chairman, they

 

         14   could be matched with the funds when it comes down instead

 

         15   of rolled over for state funding.

 

         16                   COCHAIR DEVIN:  Your point is from

 

         17   experience they will come under review again.

 

         18             There was one comment, Committee, and I would

 

         19   like to come back to this.

 

         20                   MR. LEAHY:  One quick thought, as part of

 

         21   that stakeholders group, Madam Chairman.

 

         22                   COCHAIR DEVIN:  That's the word I couldn't

 

         23   come up with.

 

         24                   MR. LEAHY:  Pardon me?

 

         25                   COCHAIR DEVIN:  That's the word I couldn't

 

 

 

 


 

 

 

                                                                     169

 

          1   come up with.

 

          2                   MR. LEAHY:  One of the concerns that the

 

          3   department had and a number of people had was the

 

          4   underservice of children in many remote areas.  In some

 

          5   areas other people might -- I am not saying one area is

 

          6   more attractive than other.  Some folks might think that

 

          7   being a speech therapist in Cheyenne might be better than

 

          8   being a therapist in Meeteetse.  We might find caseloads

 

          9   where a speech therapist might have 20, 30, 40, 50 kids,

 

         10   simply because the district cannot find additional help

 

         11   for the kind of money they have to offer.

 

         12             So part of this idea of oversight was to get out

 

         13   to some of these districts who are underserving kids and

 

         14   work with them to find a way to bring the services to

 

         15   those children.  And that was the other part of it, in

 

         16   addition to what Mike spoke to about, yeah, we're open to

 

         17   any oversight that you would need to have.

 

         18                   COCHAIR DEVIN:  Committee, you've had the

 

         19   explanation of the two bills in front of you.  We've had

 

         20   discussion, last time, this time.  What is your pleasure

 

         21   on how you would like to proceed?

 

         22                   COCHAIR STAFFORD:  Madam Chairman.

 

         23                   COCHAIR DEVIN:  Mr. Cochair.

 

         24                   COCHAIR STAFFORD:  Madam Chairman, to get

 

         25   the ball rolling and see where everybody stands I would

 

 

 

 


 

 

 

                                                                     170

 

          1   move that we accept House Bill 313, school finance special

 

          2   education as a committee bill.

 

          3                   REPRESENTATIVE LOCKHART:  Second.

 

          4                   COCHAIR DEVIN:  There's a motion and

 

          5   second on 313.

 

          6             Is there discussion?

 

          7             Senator Scott.

 

          8                   SENATOR SCOTT:  Madam Chairman, I don't

 

          9   think this bill in its current form is quite ready for

 

         10   prime time.  But let me make some suggestions as to how it

 

         11   could be modified so that we could make it into something

 

         12   we could pass.

 

         13             First thing I'm going to suggest, Madam

 

         14   Chairman, and I think there's considerable uncertainty as

 

         15   to the formula, which is not surprising.  We're trying

 

         16   something a bit new and different here.  I think a

 

         17   two-year sunset so that we come back and take a look once

 

         18   we've had some experience with it would be a good idea.

 

         19             Second, I think we need to make the funding

 

         20   open-ended because we're dealing with paying for what

 

         21   effectively is a entitlement.  And the more I think about

 

         22   it, the Medicaid model is the one that is going to fall

 

         23   and they will have to deal with that and then come back,

 

         24   so we might as well recognize that up front.

 

         25             The third suggestion I'm going to make is in the

 

 

 

 


 

 

 

                                                                     171

 

          1   business of deciding which applications to fund.  I think

 

          2   we need to set a percentage, and they've got -- should be

 

          3   at 101 percent instead of 1 percent there and then maybe

 

          4   it should be a little higher.  But I think once you go

 

          5   over that percentage, then the granting of the application

 

          6   ought to be pretty much automatic unless the state

 

          7   department finds you can achieve the result without

 

          8   impinging on the education of the other students, either

 

          9   through utilizing funds from elsewhere, specifically

 

         10   probably federal, or by managing the program a little

 

         11   differently and a little more efficiently.  I think we

 

         12   will have to have a look at that.

 

         13             If we do those things, we will then have the

 

         14   advantages that the formula gives us of giving districts

 

         15   the flexibility to use special ed money for preventative

 

         16   purposes.  We will have pretty much automatic ability to

 

         17   deal with the cases where either due to increased numbers

 

         18   or increased severity a district's expenses increase

 

         19   significantly, although by using a percentage we will give

 

         20   them some incentive to be economical about that, and I

 

         21   think that will give us the best of both possible worlds.

 

         22             And I don't know how the committee feels about

 

         23   that set of suggestions.  I'm prepared to make a series of

 

         24   motions on that subject and unfortunately won't be able to

 

         25   give you detail on the language because we haven't seen it

 

 

 

 


 

 

 

                                                                     172

 

          1   for long enough.  But that's my suggestions in terms of

 

          2   turning this bill into one we could in good conscience

 

          3   pass.

 

          4                   REPRESENTATIVE MCOMIE:  Madam Chairman.

 

          5                   COCHAIR DEVIN:  Yes, Representative

 

          6   McOmie.

 

          7                   REPRESENTATIVE MCOMIE:  Madam Chairman, I

 

          8   would like to speak against the bill.  One of the reasons

 

          9   I would like to speak against the bill is, as Senator

 

         10   Scott just brought up, and that's using special ed funds

 

         11   for other things.  It was suggested maybe we should be

 

         12   looking at using some at-risk funds to monitor some of

 

         13   these other things and rather than take away money from

 

         14   special education in a block grant that I don't think we

 

         15   can do.  I think we have a federal mandate that these

 

         16   children are to be served the way the IEP says.

 

         17             I also am very concerned with a contingent fund

 

         18   and how that will affect -- and Senator Scott again has

 

         19   already highlighted, how is that going to work.  We

 

         20   already limited the districts on how much money they can

 

         21   keep in reserve and now we're saying okay, well, you've

 

         22   got some money out there you can and will lose, make up

 

         23   the differences in case we have this and maybe we'll come

 

         24   back at the next session and give you that money back.  In

 

         25   essence, we're 100 percent funding.

 

 

 

 


 

 

 

                                                                     173

 

          1             Why do we want to pass a bill that's going to

 

          2   put us through all of these hoops when we already have

 

          3   something there but we're talking about some oversight,

 

          4   and that's what makes sense to me.

 

          5             So, Madam Chairman, I would rise, I guess, in

 

          6   opposition.

 

          7                   COCHAIR DEVIN:  Senator Goodenough.

 

          8                   SENATOR GOODENOUGH:  Madam Chairman, would

 

          9   you prefer to do all the amendments first before we talk

 

         10   about the philosophy of the bill or should we --

 

         11                   COCHAIR DEVIN:  Senator Scott, I will

 

         12   leave that to you because I think we do -- you do make

 

         13   some excellent points on improvements.  Would you prefer

 

         14   to go ahead and do those so that people can discuss?

 

         15                   SENATOR SCOTT:  Madam Chairman, I will

 

         16   move that we instruct the staff to put a sunset provision

 

         17   in here that would sunset this special education portion

 

         18   of the formula, sunset it effective July 1 of '05, which

 

         19   would then mean that we would -- the legislature would

 

         20   look at it again in the '05 session with a full year's

 

         21   experience under our belts.  So I will move that.

 

         22                   COCHAIR DEVIN:  Is there a second for

 

         23   that?

 

         24                   REPRESENTATIVE MILLER:  Second.

 

         25                   COCHAIR DEVIN:  There's a motion and a

 

 

 

 


 

 

 

                                                                     174

 

          1   second on that amendment for a sunset July '05.

 

          2             All of those in favor, aye.

 

          3             Those opposed.

 

          4             That amendment carries.

 

          5             Your next was the open-ended contingency?

 

          6                   SENATOR SCOTT:  Yes, Madam Chairman.  I

 

          7   will move we instruct the staff to make the funding not a

 

          8   specific appropriation but just the foundation program.

 

          9                   COCHAIR DEVIN:  Is there a second to that?

 

         10                   SENATOR GOODENOUGH:  Second.

 

         11                   COCHAIR DEVIN:  There's a motion and a

 

         12   second on that amendment.

 

         13             Discussion?

 

         14                   REPRESENTATIVE LOCKHART:  Madam Chairman,

 

         15   speaking in opposition to this amendment, I think we

 

         16   heard the arguments in two different meetings now that

 

         17   this $2 million is the best judgment of what would cover

 

         18   the exceptions we're going to run into, even though we

 

         19   will run into some of them.  And I think one of the

 

         20   expectations of the legislators is to try to manage the

 

         21   funds that come to the State and goes to schools.

 

         22             And I think you know the complexity of this one,

 

         23   but these were judgments by the experts that we hired that

 

         24   2 million would cover it, so I would like to see that stay

 

         25   in there.

 

 

 

 


 

 

 

                                                                     175

 

          1                   COCHAIR DEVIN:  Further discussion?

 

          2                   SENATOR SCOTT:  Unfortunately, Madam

 

          3   Chairman, I think we need to worry about the circumstances

 

          4   where the experts may be wrong and we're dealing here --

 

          5   the feds created an entitlement.  Like it or not, they've

 

          6   done it.  I think under the Fourteenth Amendment they have

 

          7   the right to do it, unfortunately, and you pretty much

 

          8   have to spend -- the school districts have to spend what

 

          9   you need to do to meet the requirements of the IEP, and

 

         10   they can be compelled to do that.

 

         11             As I understand, your so-called cost-based

 

         12   system, as the Supreme Court has given it to us, if they

 

         13   have to do that by taking money away from regular

 

         14   education, we're asking for legal trouble on that score. 

 

         15   And I think if you put the interplay of those two

 

         16   together, you put the State Department of Education in an

 

         17   impossible circumstance if you force them to live within a

 

         18   special appropriation here.

 

         19             I think the model you will follow is in the

 

         20   health area what we've seen with the Medicaid funding

 

         21   where there is an open-ended entitlement, what they do is

 

         22   simply don't take providers at the end of the year when it

 

         23   is running over, comes back, take it out of next year's

 

         24   appropriation, come back to us for supplemental

 

         25   appropriation.  And I can't count the number of those I've

 

 

 

 


 

 

 

                                                                     176

 

          1   seen over the course of a few years.

 

          2             The other thing they do is cut down

 

          3   reimbursement to providers.  I don't think that's an

 

          4   option here.  I think you might as well be up front and

 

          5   make it open-ended because I think that's where you're

 

          6   going, like it or not.

 

          7                   COCHAIR DEVIN:  Senator Goodenough.

 

          8                   SENATOR GOODENOUGH:  Madam Chairman,

 

          9   agreeing with Senator Scott, it seems like the payment is

 

         10   going to have to be made at some point or another anyways,

 

         11   so why not have it open-ended rather than having a set

 

         12   amount and force the districts to dip into their reserves

 

         13   or prorate it somehow or whatever?  That's just another

 

         14   series of hoops to jump through when the results in the

 

         15   end are the same anyway.  But seems to me since it is an

 

         16   entitlement that we ought to just go ahead and make that

 

         17   amount of money available.

 

         18                   COCHAIR DEVIN:  Anything further?

 

         19                   REPRESENTATIVE MCOMIE:  Madam Chairman, I

 

         20   would like to support Senator Scott's motion because it is

 

         21   an attempt to make what I consider to be a bad bill

 

         22   better.

 

         23                   COCHAIR DEVIN:  Any further discussion?

 

         24             All of those in favor of the amendment to make

 

         25   the contingency fund open-ended, aye.

 

 

 

 


 

 

 

                                                                     177

 

          1             Those opposed, no.

 

          2             That amendment does carry.

 

          3                   SENATOR SCOTT:  Madam Chairman, my

 

          4   drafting expert has given me advice on page 2, line 5.

 

          5             Thank you very much, Pam.

 

          6             On page 2, line 20, if you strike "of" and

 

          7   insert the word "above," you fix the technical problem

 

          8   there.

 

          9                   REPRESENTATIVE LOCKHART:  Second.

 

         10                   COCHAIR DEVIN:  All of those in favor,

 

         11   aye.

 

         12             I should have asked for discussion.  Was there

 

         13   any?

 

         14             Opposed?

 

         15             That change is made on line 20.

 

         16                   SENATOR SCOTT:  Madam Chairman, the next

 

         17   amendment we need is more difficult.  I think we need to

 

         18   instruct the Department to, if the application meets the

 

         19   criteria -- Madam Chairman, before we do that, on page 3,

 

         20   line 4, after the word "disabilities," I would move that

 

         21   we insert the language "without damaging the district's

 

         22   ability to provide an adequate education for nonspecial

 

         23   education students."

 

         24                   REPRESENTATIVE WASSERBERGER:  What line?

 

         25                   COCHAIR DEVIN:  Line 4, page 3.

 

 

 

 


 

 

 

                                                                     178

 

          1                   SENATOR SCOTT:  Page 3, line 4,

 

          2   essentially adding that to the end of the sentence there.

 

          3             And, Madam Chairman, that may be a statement of

 

          4   the obvious under our court decision, but I think we'd

 

          5   better make it because the real standard, then, is if

 

          6   you're going to have to spend more on special ed, if the

 

          7   money isn't available from the feds and you can't get it

 

          8   from some economies  in the program, you are going to wind

 

          9   up impinging on the regular education students, so I think

 

         10   we need to have that statement in here.

 

         11                   REPRESENTATIVE SIMONS:  Madam Chairman,

 

         12   can he say it again?

 

         13                   SENATOR SCOTT:  Certainly, Madam Chairman. 

 

         14   After "disabilities," page 3, line 4, add the words,

 

         15   "without damaging the district's ability to provide an

 

         16   adequate education for nonspecial ed students" --

 

         17   "nonspecial education students."

 

         18                   REPRESENTATIVE SIMONS:  Thank you.

 

         19                   COCHAIR DEVIN:  Is there a second to that?

 

         20                   SENATOR GOODENOUGH:  Second.

 

         21                   COCHAIR DEVIN:  There's a motion and a

 

         22   second to add actually to that sentence the words "without

 

         23   damaging the district's ability to provide an adequate

 

         24   education for nonspecial education students."

 

         25             Discussion?

 

 

 

 


 

 

 

                                                                     179

 

          1                   SENATOR SESSIONS:  Madam Chairman,

 

          2   although I agree with Senator Scott's concept in that

 

          3   because we all know that's what's going to happen, but I

 

          4   will say this, you're bucking up against federal law here. 

 

          5   Your federal law says you will at all costs provide for

 

          6   those special ed students no matter where you get the

 

          7   money, and we have no law that backs our ordinary, regular

 

          8   education students.

 

          9             I'm just saying that what you're doing is you're

 

         10   circumventing -- you don't have any choice.  If a special

 

         11   ed student, Madam Chairman, comes into your district and

 

         12   requires a certain level of services, you have no option,

 

         13   you will take it.  You will somewhere get the money.

 

         14                   SENATOR SCOTT:  Madam Chairman.

 

         15                   COCHAIR DEVIN:  Senator Scott.

 

         16                   SENATOR SCOTT:  And what we're proposing

 

         17   here is intirely consistent with federal law because what

 

         18   we're saying is these are the circumstances in which you

 

         19   can come to the contingency fund for additional funding. 

 

         20   We're recognizing you're going to have to pay for the

 

         21   special ed and the criteria is if you can't do it without

 

         22   damaging your ability to provide for the regular ed, you

 

         23   get to come to the contingency fund because the regular ed

 

         24   student is protected by our constitution and our Supreme

 

         25   Court decision.

 

 

 

 


 

 

 

                                                                     180

 

          1                   SENATOR SESSIONS:  Madam Chairman, just as

 

          2   a thought on that, this is still -- the grant is still a

 

          3   decision to be made by the State Department of Education

 

          4   on whether they receive money.

 

          5                   SENATOR SCOTT:  Question.

 

          6                   COCHAIR DEVIN:  You understand the

 

          7   amendment?

 

          8             All of those in favor, aye.

 

          9             Those opposed, no.

 

         10             That amendment carries.

 

         11                   SENATOR SCOTT:  Madam Chairman, one final

 

         12   amendment.  I move we instruct the staff to insert a

 

         13   provision that the State Department of Education shall

 

         14   fund grants that meet the criteria set forth in the (ii)

 

         15   and (i) we've just talked about, provided they find that

 

         16   the district can't meet the need for special education

 

         17   funds through other funds available, or through reasonable

 

         18   management economies in the program.

 

         19                   COCHAIR DEVIN:  Is there a second to that?

 

         20                   SENATOR GOODENOUGH:  Second.

 

         21                   COCHAIR DEVIN:  There's a motion and a

 

         22   second that the Department shall fund the criteria set

 

         23   forth -- that we will ask staff to construct the language,

 

         24   so there may be some slight variation, but that they shall

 

         25   fund to the criteria set forth in (ii) -- romanette (i)

 

 

 

 


 

 

 

                                                                     181

 

          1   and (ii) if there are not other funds.

 

          2                   SENATOR SCOTT:  Yeah, if there are not

 

          3   other funds or reasonable management economies to the

 

          4   program.

 

          5                   COCHAIR DEVIN:  It has been moved and

 

          6   seconded.

 

          7             Is there discussion on it?

 

          8                   REPRESENTATIVE MCOMIE:  Question.

 

          9                   COCHAIR DEVIN:  All of those in favor,

 

         10   aye.

 

         11             Opposed.

 

         12             Any other amendments?

 

         13             Then we will entertain discussion on the bill. 

 

         14   Senator Goodenough.

 

         15                   SENATOR GOODENOUGH:  Madam Chairwoman, I

 

         16   think it is important to keep in mind, there's been no

 

         17   evidence of any abuse under the 100 percent reimbursement

 

         18   system.  And prior to this meeting we were kind of given

 

         19   information that some districts had extremely high

 

         20   percentages of handicapped students, but then we find out

 

         21   it really wasn't that way and a couple of phone calls

 

         22   would have cleared that all up to begin with.  And I don't

 

         23   know why the high-powered consultant couldn't call up and

 

         24   say why are your numbers so high and then we wouldn't have

 

         25   been laboring under that erroneous conception.

 

 

 

 


 

 

 

                                                                     182

 

          1             To me this is a group of kids that has special

 

          2   protection under the law and we have a legal obligation to

 

          3   provide those services to them.  And under the education

 

          4   reform efforts some parts of our system have deteriorated,

 

          5   it seems to me, the voc ed part, from what I've heard,

 

          6   part, I think has deteriorated and the special ed part has

 

          7   improved because of the 100 percent reimbursement system.

 

          8             And we have, from what I've heard, seems to be a

 

          9   good system, is probably getting better and it should be.

 

         10   If we need more oversight we can do that in the other

 

         11   bill.

 

         12             I think what we're also going to do -- ADM is

 

         13   decreasing and if districts are forced to make decisions

 

         14   with this block grant approach, that they're going to do

 

         15   things like start to underidentify special ed students and

 

         16   put them in the classroom so that the rest of the students

 

         17   are impacted by this identification game.  If you have

 

         18   three or four or five special ed students in a regular

 

         19   classroom, then that detracts from the education of the

 

         20   rest of the students.

 

         21             And then under the federal No Child Left Behind

 

         22   system we have all of these standards we have to meet, and

 

         23   if we don't meet them then we're going to be punished, the

 

         24   classroom teacher is impaired in their ability to teach to

 

         25   the regular student by the presence of special ed students

 

 

 

 


 

 

 

                                                                     183

 

          1   that should be in a different class, to me it all leads to

 

          2   a bad result.

 

          3             I also think that if we do have an exceptional

 

          4   special ed system, that gives districts the ability to

 

          5   hire -- gives them a better competitive edge to hire

 

          6   special ed teachers and classroom personnel because most

 

          7   people that work in special ed probably do it because they

 

          8   love the work and they want to help the kids.  If you have

 

          9   a good system, I think that improves your ability to

 

         10   compete.

 

         11             And we hear about we can't get this, we can't

 

         12   get that, but if we had an excellent system compared to

 

         13   other states, that would give us an ability to compete

 

         14   when they need personnel.

 

         15             And perhaps there is a Medicaid or Medicare

 

         16   connection that would help with some of the costs. 

 

         17   Senator Scott mentioned a little bit about that.  Maybe

 

         18   that's something that should be looked into.  But I think

 

         19   we would be much better off to vote this bill down and go

 

         20   with 100 percent with additional oversight.

 

         21                   COCHAIR DEVIN:  Senator Scott.

 

         22                   SENATOR SCOTT:  Madam Chairman, I think it

 

         23   is a fair question to say what does this bill do that

 

         24   improves our current circumstance?

 

         25             The bill as amended does provide funding for the

 

 

 

 


 

 

 

                                                                     184

 

          1   circumstance where districts have more special education

 

          2   needs than the formula provides, and I think that is, the

 

          3   way we amended it, adequately taken care of now.

 

          4             The bill also, however, provides an incentive,

 

          5   financial incentive, for the districts to get into the

 

          6   programs that reduce the need for special education, both

 

          7   because you have this 101 percent provision and because

 

          8   you've got the ability if you can stay within the formula

 

          9   to take block grant monies and use them elsewhere.

 

         10             Whereas, I agree with you, we haven't seen abuse

 

         11   in the special education area, we are seeing an escalation

 

         12   in costs.  And I think, Madam Chairman, that the

 

         13   incentives are very important in terms of being able to

 

         14   deal effectively with that escalation of costs and to

 

         15   provide a system that will work better for the kids

 

         16   involved.

 

         17             So I think with the original bill I think I

 

         18   would have agreed with much of what you said.  I think the

 

         19   way we've modified it it will work just fine in practice.

 

         20             Further discussion?

 

         21             Representative McOmie.

 

         22                   REPRESENTATIVE MCOMIE:  First of all, I

 

         23   apologize for using the term "bad bill."  I usually don't

 

         24   do things like that.  I'm sorry.

 

         25             I was going to raise some of the issues that

 

 

 

 


 

 

 

                                                                     185

 

          1   Senator Goodenough raised and he did a good job so I will

 

          2   let that go.

 

          3             I still have a problem, and I'll ask the

 

          4   committee to consider this, we're saying here that we

 

          5   think the school districts can do better with less with

 

          6   special education and we can actually take some of this

 

          7   money away and they might be able to use it to determine

 

          8   if some of these children really need special education or

 

          9   if they can be helped another way.

 

         10             I don't think that was the purpose of special

 

         11   education.  Unless I've misunderstood what has been being

 

         12   said here, what we've been talking about is special

 

         13   education, that's children with special needs, and they're

 

         14   identified and there are contracts written and there are

 

         15   costs that go with those contracts.

 

         16             And grant you, if we had a one-size-fits-all

 

         17   school system we could probably do something like what is

 

         18   in this bill the way Senator Scott amended it and not have

 

         19   to worry about these other things.

 

         20             But I worry about special needs.  They're

 

         21   something different.  And Senator Anderson talked about an

 

         22   attempt to bring the children into maybe a smaller class,

 

         23   maybe something like that, some of these children can help

 

         24   with the teacher that's trying to do other things.  That's

 

         25   one of the things that schools have tried to do.  But I'm

 

 

 

 


 

 

 

                                                                     186

 

          1   concerned then about the other children.

 

          2             And I like what Senator Scott added to (ii) to

 

          3   try and deal with that, but I still feel and I think we're

 

          4   trying to put something into a bill here that I don't know

 

          5   as we're real sure what it is we're trying to do, at least

 

          6   I'm not comfortable with it.  And I would urge a no vote

 

          7   on the bill.

 

          8                   COCHAIR DEVIN:  Further discussion?

 

          9             Senator Goodenough -- Senator Peck -- Senator

 

         10   Goodenough, go ahead and then Senator Peck.

 

         11                   SENATOR GOODENOUGH:  Madam Chairman, one

 

         12   issue we haven't heard about is whether the level of legal

 

         13   activity declined when the 100 percent provision was

 

         14   instated because if each IEP is an individual contract and

 

         15   each parent is monitoring the district to make sure the

 

         16   services are at an appropriate level, then it seems that

 

         17   each contract is a potential lawsuit waiting to happen,

 

         18   and I wonder if when the 100 percent reimbursement system

 

         19   started whether the amount of legal activity decreased and

 

         20   whether or not if we do away with it if it will increase

 

         21   again because each parent, I'm sure, is watching very

 

         22   closely to make sure their student gets the appropriate

 

         23   level of services or what they perceive it to be.

 

         24             And so -- and I guess it will be the district's

 

         25   general fund that takes the legal hit if they have to

 

 

 

 


 

 

 

                                                                     187

 

          1   defend against a lawsuit on these individuals.

 

          2                   COCHAIR DEVIN:  Senator Peck.

 

          3                   SENATOR PECK:  Madam Chairman, in the

 

          4   grant scope of things one of the concerns that people have

 

          5   is the increasing complexity of the funding of our whole

 

          6   educational system.  And I think we ought to ask ourselves

 

          7   a question whether the adoption of this bill as amended is

 

          8   going to simplify and clarify the responsibility or is it

 

          9   going to further complicate it?

 

         10             And we've heard a number of people say that the

 

         11   100 percent reimbursement is only for allowable expenses. 

 

         12   And I wonder if by adding five more people to the

 

         13   Department of Education who are going to be looking with

 

         14   intense scrutiny on what is an allowable expense if we

 

         15   won't possibly engender more controversy and questions

 

         16   about they say this is allowed and this isn't.

 

         17             I would appreciate the comment on whether this

 

         18   is going to further complicate our grossly complicated

 

         19   system or not.

 

         20                   COCHAIR DEVIN:  Representative Samuelson.

 

         21                   REPRESENTATIVE SAMUELSON:  Madam Chairman,

 

         22   I remember in the last couple years we've been talking

 

         23   about the special education needs and last year when we

 

         24   took it on as interim work.  I guess what we have now

 

         25   isn't anything like what I thought we were going to get.

 

 

 

 


 

 

 

                                                                     188

 

          1             First, I thought we would come up with what the

 

          2   cost of special education is, and I'm absolutely not

 

          3   convinced we know that from our last meeting and I didn't

 

          4   hear that now.  I wish our consultant would have stayed

 

          5   with us after lunch.  He did that last time.  I don't

 

          6   think this bill is anywhere near ready.

 

          7             As Senator Peck said, we're just muddying the

 

          8   waters with something that is not anywhere near ready.  I

 

          9   think this needs a lot more work, like another summer of

 

         10   study.  I think our consultants have to be given more

 

         11   direction.  We have to know what the cost of special

 

         12   education is and I know we don't know that now.  We had

 

         13   had some questions that I was hoping we would get answered

 

         14   from the last meeting and we didn't get those numbers, so

 

         15   I think we just need to pass this on and let the next

 

         16   legislature work on it later.  I'm not going to support it

 

         17   at this time.

 

         18                   COCHAIR DEVIN:  Senator Sessions, you had

 

         19   a comment.

 

         20                   SENATOR SESSIONS:  Madam Chairman, just a

 

         21   thought.  And maybe we've gotten up here to where we're

 

         22   having a philosophical debate about dollars and I would

 

         23   like to bring it back to what actually happens and this

 

         24   involves children.  And when I look at the numbers here on

 

         25   the spreadsheets and I'm thinking about children entering

 

 

 

 


 

 

 

                                                                     189

 

          1   school and things, do you know how carefully you look at a

 

          2   child before you qualify him for special ed, how very

 

          3   carefully you consider things and what care goes into that

 

          4   with the building meetings that you sit in and with the

 

          5   parents that you have to get to sign off on things?

 

          6             Identifying a special ed child is very, very

 

          7   different than when you go in and you perceive some little

 

          8   people who have problems, that you think if I can go to

 

          9   those children I can stop them from becoming maybe special

 

         10   ed students.  There's a very distinct difference in

 

         11   children that you think may need a little help as far as

 

         12   Senator Scott thinks that this may work and a special ed

 

         13   student.

 

         14             Special ed students are a very distinct part of

 

         15   our population and I think we should be very proud of

 

         16   serving them and very proud of what we do with them.  And

 

         17   instead of trying to find ways that when they're coming --

 

         18   find ways to cut several million dollars from a budget so

 

         19   that maybe we don't have to serve those ones we identify.

 

         20             I will tell you, I am really tired of the

 

         21   catchword "overidentification" of special ed students. 

 

         22   Never -- I have watched that process for 31 years and I

 

         23   will tell you the care that goes into that identification

 

         24   of special ed child.  And you may find one once in a while

 

         25   that you think as you work with that child and they come

 

 

 

 


 

 

 

                                                                     190

 

          1   out of special ed, yes, they come out of it.  You can

 

          2   bring them out and you put them in a regular classroom,

 

          3   but -- but the care that goes into that, I think that's an

 

          4   overworked political whatever to say overidentification of

 

          5   special ed children.

 

          6             And I'm really tired of it because -- I can't

 

          7   speak for other states, but I will tell you what, from

 

          8   what I've seen, we don't have that.  We don't have that. 

 

          9   And I agree with the oversight and I agree that we need to

 

         10   talk about standards and guidelines and saying if someone

 

         11   is doing too much or too little.  And I agree with that

 

         12   part of it because I think that can only strengthen the

 

         13   process.

 

         14             But I tell you what, I cannot in all conscience

 

         15   support something that will limit the ability to identify

 

         16   new children coming into a system or to keep children in

 

         17   that system that need to stay in and not leave early.

 

         18                   COCHAIR DEVIN:  Are there any other

 

         19   burning new comments before we --

 

         20                   REPRESENTATIVE SHIVLER:  Question.

 

         21                   COCHAIR DEVIN:  Mr. Nelson, would you call

 

         22   the roll?

 

         23                   MR. NELSON:  Senator Goodenough.

 

         24                   SENATOR GOODENOUGH:  No.

 

         25                   MR. NELSON:  Senator Peck.

 

 

 

 


 

 

 

                                                                     191

 

          1                   SENATOR PECK:  No.

 

          2                   Mr. NELSON:  Senator Scott.

 

          3                   SENATOR SCOTT:  Aye.

 

          4                   MR. NELSON:  Senator Sessions.

 

          5                   SENATOR SESSIONS:  No.

 

          6                   MR. NELSON:  Representative Lockhart.

 

          7                   REPRESENTATIVE LOCKHART:  No.

 

          8                   MR. NELSON:  Representative McOmie.

 

          9                   REPRESENTATIVE MCOMIE:  No.

 

         10                   MR. NELSON:  Representative Miller.

 

         11                   REPRESENTATIVE MILLER:  No.

 

         12                   MR. NELSON:  Representative Robinson.

 

         13                   REPRESENTATIVE ROBINSON:  No.

 

         14                   MR. NELSON:  Representative Samuelson.

 

         15                   REPRESENTATIVE SAMUELSON:  No.

 

         16                   MR. NELSON:  Representative Shivler.

 

         17                   REPRESENTATIVE SHIVLER:  No.

 

         18                   MR. NELSON:  Representative Simons.

 

         19                   REPRESENTATIVE SIMONS:  No.

 

         20                   MR. NELSON:  Chairman Devin.

 

         21                   COCHAIR DEVIN:  Aye.

 

         22                   MR. NELSON:  Representative Stafford.

 

         23                   COCHAIR STAFFORD:  Aye.

 

         24                   COCHAIR DEVIN:  Are there other comments

 

         25   on these bills?

 

 

 

 


 

 

 

                                                                     192

 

          1                   REPRESENTATIVE MCOMIE:  Madam Chairman, is

 

          2   this the time to try the second one?

 

          3                   COCHAIR DEVIN:  It would be.

 

          4                   REPRESENTATIVE MCOMIE:  Madam Chairman, I

 

          5   would move adoption of LSO 15.W3.

 

          6                   COCHAIR DEVIN:  Is there a second?

 

          7                   REPRESENTATIVE LOCKHART:  Second.

 

          8                   COCHAIR DEVIN:  There is a motion and a

 

          9   second that we move -- Representative McOmie.

 

         10                   REPRESENTATIVE MCOMIE:  Can I offer an

 

         11   amendment?

 

         12                   COCHAIR DEVIN:  You may.

 

         13                   REPRESENTATIVE MCOMIE:  Madam Chairman, I

 

         14   would like to offer Senator Scott's amendment that this

 

         15   have a sunset.  I would like a two-year or three-year --

 

         16   two-year sunset.  So that would make it, what, '05?

 

         17                   MR. NELSON:  July 1, '05.

 

         18                   COCHAIR DEVIN:  Would you care to explain

 

         19   your reason for sunsetting?

 

         20                   REPRESENTATIVE MCOMIE:  Madam Chairman,

 

         21   this bill -- unless somebody else is smart enough to amend

 

         22   some of these other things out of there, this bill has a

 

         23   lot of oversight in it by the Department of Education, and

 

         24   I would like to see just what that oversight brings us. 

 

         25   And if it can be done with less oversight, I'm not real

 

 

 

 


 

 

 

                                                                     193

 

          1   sure we need to do it a lot different than what we're

 

          2   doing now.

 

          3             Agree that we need somebody that can go out and

 

          4   maybe work with the districts and go around and check the

 

          5   program and say, "Yes, you're doing it right.  Maybe you

 

          6   could do it a little different but this is how you're

 

          7   doing it," but I'm not too sure that we need three

 

          8   people -- four people and one temporary to do that.  So

 

          9   that's why I would like to have the ability to review that

 

         10   unless somebody else is sitting here that can figure out

 

         11   how to word that differently.  I'm not good at that.

 

         12                   COCHAIR DEVIN:  This bill, in fact, does

 

         13   not -- it does just contain the four because it does not

 

         14   contain the contingency fund, to clear that matter up.

 

         15             Is there a second to that amendment?

 

         16                   SENATOR GOODENOUGH:  Second.

 

         17                   COCHAIR DEVIN:  There is a motion and a

 

         18   second to sunset this provision.

 

         19             Any further discussion?

 

         20                   SENATOR GOODENOUGH:  Madam Chairman,

 

         21   another possibility would probably be to delete section 3

 

         22   which would be the rules and regulations implementing the

 

         23   staffing guidelines.  It would delete the 888,000, it

 

         24   would delete all of that new language and then you would

 

         25   be left with the new language on page 2 which gives

 

 

 

 


 

 

 

                                                                     194

 

          1   additional duties to the state superintendent and then

 

          2   also on page 3.

 

          3             And there wouldn't be any new money but we could

 

          4   always add -- if we took another look at it and all we

 

          5   wanted was a little bit of additional oversight, then we

 

          6   could add that in as the regular legislative process began

 

          7   because to me 888,000 bucks is a lot of money just based

 

          8   on what we've heard that there's already a process by

 

          9   which appropriate expenses have to go through the state

 

         10   department, so on and so forth.  And if there is the need

 

         11   for additional oversight, I can't believe it is going to

 

         12   cost 888,000.

 

         13             Plus it would also take out the part about the

 

         14   rules and regulations emanating from the state department,

 

         15   which I think I agree with Senator Scott that that's

 

         16   unnecessary.

 

         17                   COCHAIR DEVIN:  The motion before us would

 

         18   get the guidelines in place.  It would provide the

 

         19   monitoring.  It provides a two-year sunset.  I think that

 

         20   we need to deal with that first because the piece you're

 

         21   recommending or supporting actually essentially just

 

         22   leaves us in the current system for a large part and so I

 

         23   would like to address the amendment on the table.

 

         24                   COCHAIR STAFFORD:  Question.

 

         25                   COCHAIR DEVIN:  All of those in favor of

 

 

 

 


 

 

 

                                                                     195

 

          1   placing a sunset, aye.

 

          2             Those opposed, no.

 

          3             Could I see a show of hands?  All of those in

 

          4   favor.

 

          5             That amendment does carry.

 

          6             Are there any additional amendments?

 

          7                   SENATOR SCOTT:  Madam Chairman, a slightly

 

          8   milder version than the one talked about a minute ago.  I

 

          9   would move we delete on page 4, lines 2 through 8, and on

 

         10   line 10 delete everything after "the" so that then (b)

 

         11   would read, "The state department shall establish a

 

         12   process to review the adequacy staffing guidelines."  This

 

         13   would take out the piece that would suggest that they

 

         14   could dictate to the individual school districts their

 

         15   staffing pattern and you would still have the guidelines

 

         16   that they're going to establish on the provision that's on

 

         17   the previous page.

 

         18                   COCHAIR DEVIN:  Okay.  Senator Scott, on

 

         19   the top of page 4 you would delete what portions?

 

         20                   SENATOR SCOTT:  Lines 2 through 8.

 

         21                   COCHAIR DEVIN:  All of section (a)?

 

         22                   SENATOR SCOTT:  Yes.  Of course then you

 

         23   would have to renumber.  Then on line 10, delete that

 

         24   first clause.

 

         25                   REPRESENTATIVE MCOMIE:  Delete what?

 

 

 

 


 

 

 

                                                                     196

 

          1                   SENATOR SCOTT:  The whole language there,

 

          2   in addition to subsection (a) as a section.  That's no

 

          3   longer needed.

 

          4                   COCHAIR DEVIN:  So your perception of that

 

          5   would be that it would delete the concept of using the

 

          6   staffing patterns as a portion of the guidelines, but it

 

          7   would still allow the development of guidelines?

 

          8                   SENATOR SCOTT:  Yeah.  The development of

 

          9   guidelines is called for if you look on page 2, lines 5

 

         10   through 8, where there's established guidelines for

 

         11   adequate special education staffing levels to be used in

 

         12   assessing special education programs and services.

 

         13             That was, as Mr. Nelson described, I think, what

 

         14   the intent was.  What I'm trying to do is remove the piece

 

         15   that could enable them to dictate that districts will

 

         16   follow those guidelines.

 

         17                   COCHAIR DEVIN:  Is there a second to this

 

         18   motion?

 

         19                   SENATOR PECK:  Second.

 

         20                   COCHAIR DEVIN:  There's a motion and

 

         21   second.  Is there further discussion?  This is a bit of a

 

         22   change.  I am not begging for discussion that's

 

         23   unnecessary because we are far behind on our agenda, but

 

         24   if there are pertinent comments that some of you feel

 

         25   impact it, we need to know that.

 

 

 

 


 

 

 

                                                                     197

 

          1                   REPRESENTATIVE SHIVLER:  Madam Chairman, I

 

          2   would like you to restate that amendment.  I'm not clear

 

          3   what it is.

 

          4                   SENATOR SCOTT:  Madam Chairman, page 4,

 

          5   lines 2 through 8, delete.  Page 4, line 10, delete

 

          6   everything after (b).

 

          7                   COCHAIR DEVIN:  On just line 10?

 

          8                   SENATOR SCOTT:  On just line 10.

 

          9                   COCHAIR DEVIN:  With technical changes.

 

         10             There is motion and a second, I believe.

 

         11             Any further discussion?

 

         12                   COCHAIR STAFFORD:  Question.

 

         13                   COCHAIR DEVIN:  All of those in favor of

 

         14   that amendment, aye.

 

         15             Those opposed, no.

 

         16             That amendment is adopted.

 

         17             Is there further discussion on this bill?

 

         18             Senator Scott.

 

         19                   SENATOR SCOTT:  Madam Chairman, page 4,

 

         20   lines 18 and following, subsection (c), the study on the

 

         21   regionalized approaches, Madam Chairman, I hope that as

 

         22   they do these regionalized approaches, what I'm afraid is

 

         23   the only option that might get considered is one where the

 

         24   regional structure was all State Department of Education

 

         25   and State Department of Education employees.

 

 

 

 


 

 

 

                                                                     198

 

          1             What I think the sensible way to do is some kind

 

          2   of building on the BOCES, Boards of Cooperative Education

 

          3   Services, or some kind of a joint powers board among the

 

          4   several districts so you have a system where districts

 

          5   could band together and would control their special

 

          6   education.  And it would seem to me that would make a good

 

          7   deal of sense in these districts.  And they're doing a

 

          8   fair amount of it already and that's probably what we need

 

          9   to expand on.

 

         10             Do we need to amend this to make sure those

 

         11   options are considered or is the state department going

 

         12   to --

 

         13                   COCHAIR DEVIN:  Senator Scott.

 

         14                   SENATOR SCOTT:  That is the only option I

 

         15   have heard discussed among and that was at the time Becca

 

         16   was here and Mrs. Hill and so forth was the approach

 

         17   you're talking about.  And I believe that's the approach

 

         18   contained within -- did I also read that in the report --

 

         19   they're beginning to run together now.  But I believe

 

         20   that's the approach described in the report.

 

         21             Are we ready for a vote on this bill?

 

         22                   REPRESENTATIVE SIMONS:  Question on the

 

         23   bill.

 

         24                   REPRESENTATIVE MCOMIE:  Madam Chairman, I

 

         25   would like to hear the state department's comment on the

 

 

 

 


 

 

 

                                                                     199

 

          1   number of people required now to -- otherwise on section

 

          2   4, if they believe that money is adequate, we could go

 

          3   ahead with the bill now but I would like them to work up

 

          4   and bring to us before we go, bring it to the committee

 

          5   before it is introduced so maybe we can review the money

 

          6   amounts.  Would that be appropriate, Madam Chairman?

 

          7                   COCHAIR DEVIN:  It would be.  It is

 

          8   certainly -- I think any committee -- each committee will

 

          9   have to look at this and I certainly think that's

 

         10   something to look at.  And I think the department does

 

         11   need to substantiate that.  I'm not sure if you have

 

         12   comments you would like to make at this point how you

 

         13   develop that.

 

         14                   MR. BIGGIO:  Madam Chairman, I'm Larry

 

         15   Biggio from the Department.  It was a fairly quick

 

         16   turnaround on this one.  We got our heads together and

 

         17   looked at the scope, especially the items on page 2 of the

 

         18   bill, and said this is a fairly significant departure for

 

         19   us from what we've done in the past.  And you're asking us

 

         20   to do a lot of things here, so we kind of asked at the

 

         21   staff levels and putting systems together to do, for

 

         22   example, tracking of services for a long term for

 

         23   students, tracking of students over a long term; given the

 

         24   scope of what we've covered in the past year under special

 

         25   studies, what would it cost to do special studies.  It was

 

 

 

 


 

 

 

                                                                     200

 

          1   a fairly quick process, I will grant you that.

 

          2                   COCHAIR DEVIN:  Would it be safe to say

 

          3   that the committee that hears it -- the two committees

 

          4   that hear it could expect more substantiation?

 

          5                   MR. BIGGIO:  Madam Chairman, we will

 

          6   certainly bring that back to you or to the new committee.

 

          7                   REPRESENTATIVE MCOMIE:  Thank you, Madam

 

          8   Chairman.

 

          9                   COCHAIR DEVIN:  Could we have a vote?

 

         10                   MR. NELSON:  Senator Goodenough.

 

         11                   SENATOR GOODENOUGH:  Aye.

 

         12                   MR. NELSON:  Senator Peck.

 

         13                   SENATOR PECK:  Aye.

 

         14                   MR. NELSON:  Senator Scott.

 

         15                   SENATOR SCOTT:  Aye.

 

         16                   MR. NELSON:  Senator Sessions.

 

         17                   SENATOR SESSIONS:  Aye.

 

         18                   MR. NELSON:  Representative Lockhart.

 

         19                   REPRESENTATIVE LOCKHART:  Aye.

 

         20                   MR. NELSON:  Representative McOmie.

 

         21                   REPRESENTATIVE MCOMIE:  Aye.

 

         22                   MR. NELSON:  Representative Miller.

 

         23                   REPRESENTATIVE MILLER:  Aye.

 

         24                   MR. NELSON:  Representative Robinson.

 

         25                   REPRESENTATIVE ROBINSON:  Aye.

 

 

 

 


 

 

 

                                                                     201

 

          1                   MR. NELSON:  Representative Samuelson.

 

          2                   REPRESENTATIVE SAMUELSON:  Aye.

 

          3                   MR. NELSON:  Representative Shivler.

 

          4                   REPRESENTATIVE SHIVLER:  Aye.

 

          5                   MR. NELSON:  Representative Simons.

 

          6                   REPRESENTATIVE SIMONS:  Aye.

 

          7                   MR. NELSON:  Cochair Devin.

 

          8                   COCHAIR DEVIN:  Aye.

 

          9                   MR. NELSON:  Cochair Stafford.

 

         10                   COCHAIR STAFFORD:  Aye.

 

         11                   COCHAIR DEVIN:  My cochair is most anxious

 

         12   to earn his pay today and our court reporter is most

 

         13   anxious to get her two-hour break, but we have -- we are

 

         14   behind on our agenda and we are going to still try to

 

         15   break at 4:00.  So I'm going to ask you to really confine

 

         16   this break to ten minutes so that we can get something

 

         17   accomplished.

 

         18                  (Recess taken 3:05 p.m. until 3:15 p.m.)

 

         19                   COCHAIR STAFFORD:  We are going to start

 

         20   this session discussing cost of living index refinements

 

         21   that we had done for us by Dr. Godby.  We're going to

 

         22   start with 316, Wyoming Cost of Living Index refinements.

 

         23             Dr. Godby.

 

         24                   DR. GODBY:  All right, Mr. Chair.  There's

 

         25   a handout that you will have received that should be

 

 

 

 


 

 

 

                                                                     202

 

          1   titled Regional Cost Adjustment, Summary of Findings,

 

          2   December 2002.  It includes four or five pages.

 

          3             First page is the presentation I'll quickly make

 

          4   to you.  Some of the tables behind it I've included just

 

          5   for interest and demonstration.  These are the starting

 

          6   salary schedules on page 2 of all of the districts and the

 

          7   county as gathered by the LSO and WEA.

 

          8             Table 2 is the base funding under the old

 

          9   regional cost adjustment for comparison.

 

         10             Table 3 is what the parabolic index would do.

 

         11             Figure 1 is a new picture to show you what the

 

         12   reestimated parabolic index looks like and finally on

 

         13   Table 4 is the changes by district from Table 2 to

 

         14   Table 3.  Those are all just included for your interest,

 

         15   but I know you have a standing appointment at 4:00 so we

 

         16   will be quick.

 

         17                   COCHAIR STAFFORD:  We wanted to start with

 

         18   316, the Wyoming Cost of Living Index.

 

         19                   DR. GODBY:  I guess I'll hand it over to

 

         20   Buck, though.

 

         21                   COCHAIR STAFFORD:  Thanks for the

 

         22   information on the other one.

 

         23                   DR. GODBY:  We will get to it again.

 

         24                   MR. MCVEIGH:  Mr. Chairman, we've come

 

         25   up -- as proposed in Bill 316, there were four components

 

 

 

 


 

 

 

                                                                     203

 

          1   of that bill.  The first one was to add Afton as a survey

 

          2   site.  We don't see that being a major problem

 

          3   programmatically for our division.  I think the original

 

          4   estimate -- and I don't have the previous cost estimates,

 

          5   but we are able to -- we think to bring this cost down --

 

          6   I don't think it is going to be anything major.

 

          7             What we will need to do basically would involve

 

          8   hiring a competent and reliable enumerator in that area

 

          9   and making the changes within our division.

 

         10             That's no problem.  We estimate that price or

 

         11   cost at around $1,000.  The next procedure was the

 

         12   development of a consumer expenditure survey which, as we

 

         13   discussed in previous meetings, would be used to more

 

         14   adequately weight the components and categories within the

 

         15   cost of living to be more related to or to be specifically

 

         16   related to Wyoming instead of using the U.S. CPI's

 

         17   weighting scheme.

 

         18             That particular cost, because we will be

 

         19   utilizing the University Survey Research Center which --

 

         20   Dr. Godby had contacted them for some estimates -- we have

 

         21   revised this upwards to a cost estimate of $73,200.  And

 

         22   that is basically for the cost of the design of the survey

 

         23   and to run a pilot survey.

 

         24             And for those not understanding what we're

 

         25   talking about with a survey, it would be a diary approach

 

 

 

 


 

 

 

                                                                     204

 

          1   and it would be fairly extensive, because of its

 

          2   extensiveness would probably require some type of

 

          3   compensation for the respondents.

 

          4             And rolled into this cost is also an estimate

 

          5   of, I think, $50 per respondent compensation for their

 

          6   participation.  So that's where we are with that.

 

          7             Third component is the additional sampling of

 

          8   the automobile pricing.  That's adding the automobiles to

 

          9   the actual survey as opposed to holding them uniform as we

 

         10   have.  We had originally had probably a higher -- well,

 

         11   no, this is the original cost, 5600.  We contacted the

 

         12   county treasurer's office here in Laramie County to see if

 

         13   they kept any type of a database that would be readily

 

         14   available for us to track a specific automobile and the

 

         15   answer was no to that, so we went to option number two and

 

         16   that was we think we can do it by what we call a survey

 

         17   pricing letter from our office, similar to the way we

 

         18   price hospitals, doctors' offices and some of the others.

 

         19             By doing that, I mean, it is just the cost of

 

         20   mailing and basically securing the cooperation of the

 

         21   automobile dealers around the state.  There we should be

 

         22   able to go through the Wyoming Automobile Dealers

 

         23   Association and hopefully maybe secure some of the

 

         24   endorsements from you folks for cooperation.  But we will

 

         25   go there later.

 

 

 

 


 

 

 

                                                                     205

 

          1             The fourth component is to institute housing

 

          2   rental price sampling.  This gets a little bit more

 

          3   complicated for us, but we evaluated whether we wanted to

 

          4   utilize our existing enumerator staff in the different

 

          5   localities and we really didn't think we wanted to go

 

          6   there with that because of the complexity of the problem

 

          7   and the differing qualities of the enumeration around the

 

          8   state.

 

          9             So this price or cost here of 8400 actually

 

         10   represents inclusion of a summer intern from the

 

         11   University of Wyoming, student intern, and we could do

 

         12   that under the guidance of Dr. Godby as well, and

 

         13   hopefully this person could run the -- that survey

 

         14   properly themselves.

 

         15             With that, the total cost estimate for the 316

 

         16   refinements is $88,200.

 

         17                   COCHAIR STAFFORD:  Senator Devin.

 

         18                   COCHAIR DEVIN:  Yes.  Mr. Cochair, we have

 

         19   several committee members here that are going to be new to

 

         20   education and then we have some education members that

 

         21   were not here when we had the discussion on the fact that

 

         22   the -- that these kinds of improvements and refinements

 

         23   need to happen to the Wyoming Cost of Living Index,

 

         24   period, to improve its quality, but they really need to

 

         25   happen for us to use it.

 

 

 

 


 

 

 

                                                                     206

 

          1             Could you give us the three-minute to

 

          2   five-minute version of why these things would be worth our

 

          3   investment, why they would make that Wyoming Cost of

 

          4   Living Index meaningful?  Because we usually as a

 

          5   legislature deal with the raw piece but we don't -- aren't

 

          6   all that familiar with the components.

 

          7                   MR. MCVEIGH:  You care to take it?

 

          8                   DR. GODBY:  I can take it.

 

          9             I'll try to keep it to three minutes.  Basically

 

         10   the Wyoming Cost of Living Index, the first problem and

 

         11   the reason that you need to -- that we are suggesting, I

 

         12   suppose, that you use an expenditure survey is the way it

 

         13   works in Wyoming is a set of enumerators in each county go

 

         14   out and price a certain set of goods, and then they

 

         15   factor -- they take the total cost of those and using a

 

         16   federal estimate of what the typical urban consumer in the

 

         17   United States spends on different areas of expenditure,

 

         18   they calculate the total cost of the priced items to a

 

         19   typical consumer.

 

         20             The problem with using that approach isn't the

 

         21   pricing except in a couple areas.  The problem is that

 

         22   we're using federal weights taken in urban centers, the

 

         23   smallest one being, at least in this part of the country,

 

         24   50,000 people and up.  Most of the centers where they do

 

         25   the federal survey are places in excess of a million

 

 

 

 


 

 

 

                                                                     207

 

          1   people.

 

          2             So the survey, the weights that you use on the

 

          3   different areas of expenditure, for example, housing,

 

          4   transportation, personal care, reflect costs in urban

 

          5   areas and are unlikely to reflect Wyoming expenditure

 

          6   patterns.

 

          7             In particular, the housing costs in that survey

 

          8   are probably much higher than what we expect, but it is

 

          9   probably higher than in Wyoming.  So a typical consumer in

 

         10   Wyoming probably spends less of their household budget on

 

         11   housing than the average urban consumer in the United

 

         12   States.

 

         13             For school finance, that's important because, as

 

         14   you all know, the cost of housing in the regional cost

 

         15   adjustment has been the real problem, and with the last

 

         16   court ruling it needs to be included in the WCLI that's

 

         17   used for finance, for school finance, and so it is really

 

         18   important that, A, we weight housing properly, and we

 

         19   weight the other areas properly, and that's going to

 

         20   require a survey like this.

 

         21             Additionally, a survey like that would provide a

 

         22   lot of information for regional development in terms of

 

         23   expenditure patterns of citizens of Wyoming.

 

         24             With respect to the actual pricing of goods in

 

         25   the index, there's two problems.  One is the housing and

 

 

 

 


 

 

 

                                                                     208

 

          1   the other is automobiles.  Those are the large areas. 

 

          2   Automobiles, the way they're currently priced, they take

 

          3   the prices in Cheyenne so it is as if everybody in Wyoming

 

          4   shops in Cheyenne for their car.

 

          5             For housing we're not certain that the houses

 

          6   compared in, say, Jackson are similar to the houses

 

          7   compared in, say, Lusk, and so it is not clear that we're

 

          8   comparing apples to apples here, which is what you need to

 

          9   do in an index like this.

 

         10             So to clean up the index, to make it more

 

         11   accurate, we're suggesting that this survey be implemented

 

         12   which would be done every five years to update the state's

 

         13   information base on what the expenditure patterns are in

 

         14   Wyoming and then use those for this homegrown number.

 

         15                   COCHAIR STAFFORD:  Thank you.

 

         16             Further questions?

 

         17             Senator Scott.

 

         18                   SENATOR SCOTT:  In the bill, page 2, lines

 

         19   2 through 4, you're talking about having a survey site in

 

         20   the community of Afton.  Will the result of that be a

 

         21   separate cost of living for Afton as opposed to Kemmerer,

 

         22   or will you do one for Lincoln County that's an average of

 

         23   the two?

 

         24                   MR. MCVEIGH:  Mr. Chairman, Senator Scott,

 

         25   what we plan to do is it would have a stand-alone index

 

 

 

 


 

 

 

                                                                     209

 

          1   figure as well, and then we would be talking about in

 

          2   terms of the region perhaps looking at Lincoln County as a

 

          3   north and a south region.

 

          4                   DR. GODBY:  For school finance only.  For

 

          5   school finance you would use Afton using the Afton number,

 

          6   Kemmerer using the Kemmerer number, but for the WCLI for

 

          7   other purposes, you would -- there's a formula for

 

          8   counties that have two survey sites and there's more than

 

          9   just Lincoln.

 

         10                   COCHAIR STAFFORD:  Further questions,

 

         11   Committee?

 

         12             What's your pleasure?

 

         13                   SENATOR SCOTT:  Mr. Chairman.

 

         14                   COCHAIR STAFFORD:  Senator Scott.

 

         15                   SENATOR SCOTT:  Move we introduce the bill

 

         16   as a committee bill.

 

         17                   REPRESENTATIVE LOCKHART:  Second.

 

         18                   COCHAIR DEVIN:  Moved and seconded to

 

         19   introduce 316 as a committee bill.

 

         20             Further discussion?

 

         21             Buck, if I get this right, then, the four things

 

         22   we're going to do is hire my son at the university for

 

         23   8400 this summer, buy him a 5600 car and give everybody in

 

         24   the state tickets to the football game, is that how it

 

         25   works?

 

 

 

 


 

 

 

                                                                     210

 

          1             Mr. Nelson, would you call the roll?

 

          2                   MR. NELSON:  Senator Goodenough.

 

          3                   SENATOR GOODENOUGH:  Aye.

 

          4                   MR. NELSON:  Senator Peck.

 

          5                   SENATOR PECK:  Aye.

 

          6                   MR. NELSON:  Senator Scott.

 

          7                   SENATOR SCOTT:  Aye.

 

          8                   MR. NELSON:  Senator Sessions.

 

          9                   SENATOR SESSIONS:  Aye.

 

         10                   MR. NELSON:  Representative Lockhart.

 

         11                   REPRESENTATIVE LOCKHART:  Aye.

 

         12                   MR. NELSON:  Representative McOmie.

 

         13                   REPRESENTATIVE MCOMIE:  Aye.

 

         14                   MR. NELSON:  Representative Miller.

 

         15                   REPRESENTATIVE MILLER:  Aye.

 

         16                   MR. NELSON:  Representative Robinson.

 

         17                   REPRESENTATIVE ROBINSON:  Aye.

 

         18                   MR. NELSON:  Representative Samuelson.

 

         19                   REPRESENTATIVE SAMUELSON:  Aye.

 

         20                   MR. NELSON:  Representative Simons.

 

         21                   REPRESENTATIVE SIMONS:  Aye.

 

         22                   MR. NELSON:  Cochair Devin.

 

         23                   COCHAIR DEVIN:  Aye.

 

         24                   MR. NELSON:  Cochair Stafford.

 

         25                   COCHAIR STAFFORD:  Aye.

 

 

 

 


 

 

 

                                                                     211

 

          1             Bill has been adopted as a committee bill.

 

          2             Do we have 317?  We will go back to that one.

 

          3             I think we've already got one, so take it away.

 

          4                   DR. GODBY:  I already introduced the

 

          5   handout for you.  In this bill you're looking at using the

 

          6   parabolic cost of living adjustment as it is called here

 

          7   and described on line 22 of the bill on page 2.  That cost

 

          8   of living index is based on both salaries -- school year

 

          9   salaries for 2003-2004 and the WCLI index computed for the

 

         10   last six periods going up to the period prior to that

 

         11   school year.

 

         12             So currently our best estimate of what that

 

         13   parabolic index looks like includes only four periods of

 

         14   WCLI estimates because the last two aren't in yet.

 

         15             In your handout there's a number of pages.  I

 

         16   won't go through all of them, but since we last met I

 

         17   showed you in the report that it was possible to estimate

 

         18   an index in this way.  And there was included with that an

 

         19   example that would show how it is done.  We didn't have

 

         20   current salary data.  The new salary data came in in the

 

         21   interim, so the index was recomputed.

 

         22             What has happened -- and you can see there if

 

         23   you look at Table 2, I won't bother to look through it,

 

         24   but on Table 2, page 2 of the handout you will see that

 

         25   the base salaries in every -- almost every district for

 

 

 

 


 

 

 

                                                                     212

 

          1   the last three years have increased significantly, and

 

          2   there were some significant increases in salaries over the

 

          3   last -- for this coming here in the base salaries.

 

          4             What that's done effectively to the estimated

 

          5   parabolic relationship between cost of living and starting

 

          6   salaries is it has in effect made it more U-shaped.  If

 

          7   you're not at the bottom of the parabola, you will

 

          8   actually get more money than you previously did when we

 

          9   looked at it last time, just as a demonstration.

 

         10             Under this, the features of the recomputation

 

         11   are described on the front.  On the first page of the

 

         12   handout, what this parabolic implementation would do would

 

         13   be to increase total funding across the state by about 3

 

         14   percent if you were to just use the parabolic index.

 

         15             What it also does, though, is that it reduces

 

         16   the hold harmless paid to smaller districts until the end

 

         17   of this year.  Under the old adjustment method by about 75

 

         18   percent, and these are all described, the actual numbers

 

         19   that this is coming out of are in table 3 and the changes

 

         20   in table 4.

 

         21             The last time we met you also introduced a

 

         22   motion that you could hold Teton harmless if we were to

 

         23   use this because the parabolic index doesn't fund Teton at

 

         24   a level 41 percent higher than the personnel base in the

 

         25   model which is what the cost of living suggests.  The new

 

 

 

 


 

 

 

                                                                     213

 

          1   index funds them to 27.6 percent above.

 

          2             If you were to include Teton in here, that would

 

          3   be another 1.6 million if you were to hold them harmless. 

 

          4   The way this bill is written, how it would work is you

 

          5   would take either of the two methods, so you could use the

 

          6   parabolic index or the old cost of living index.  This is

 

          7   a one-year interim adjustment which basically means that

 

          8   anybody who lost on the parabolic index, and there are a

 

          9   few, would be held harmless to their old funding level.

 

         10             If you look at that hold harmless, there's very

 

         11   few in the handout that Mary gave you which is more

 

         12   compact than mine, the regional cost of living scenario,

 

         13   if you look at the final column, that shows what that

 

         14   would amount to, this hold harmless method.  Teton is the

 

         15   1.6 million figure about three-quarters of the way down

 

         16   the last column on the right.  You can see the other

 

         17   amounts are fairly small.  The next highest amount

 

         18   relative to the budgets, of course -- the next highest

 

         19   amount is 124,000 loss in Campbell County and then some

 

         20   other numbers in a couple districts in Sublette and in, I

 

         21   believe -- gosh, I got to follow these around -- Laramie

 

         22   and Johnson.

 

         23             So the total increase in funding in this

 

         24   scenario is $21 million.  However, the hold harmless from

 

         25   the old hold harmless mechanism which was paid to small

 

 

 

 


 

 

 

                                                                     214

 

          1   districts is reduced from 10 million to 2.5 million.  So

 

          2   under the parabolic index the -- what this is meant to --

 

          3   what it does is it actually beefs up funding to the

 

          4   smaller districts and the figure, just referring to the

 

          5   figure in the handout, this shows an estimated U-shaped

 

          6   line, that's the parabolic index, and a solid line cutting

 

          7   it upwards at about 45 degrees, that's the old regional

 

          8   adjustment.

 

          9             If you were to the left of that solid -- that

 

         10   straight line that cuts the U-shaped one at about 45

 

         11   degrees, you were being funded at less than your current

 

         12   base salary expense or at least your personnel cost.  You

 

         13   can see the U-shaped curve actually starts increasing

 

         14   again, so communities with low WCLI values like Niobrara,

 

         15   Westin, Crook, all of the ones to the left on that

 

         16   picture, the difference between the U-shaped curve and

 

         17   that straight line going through is the increase that

 

         18   those smaller districts predominantly see by going to the

 

         19   parabolic index.

 

         20             Similarly, if you're on the right of either of

 

         21   those curves, it means you're funded above and beyond your

 

         22   current expenses.  So, for example, Albany, Sheridan,

 

         23   Laramie Counties would all gain something.  That's an

 

         24   average, by the way.  These are average county salaries by

 

         25   district.  So if there's more than one district in the

 

 

 

 


 

 

 

                                                                     215

 

          1   county, I took the average of the two salaries.

 

          2             So that's what the new parabolic index looks

 

          3   like.  And this would be very similar to the one used --

 

          4   well, this would be the one used in the coming year and

 

          5   this would be the one-year adjustment until we move to the

 

          6   new adjustment, the full adjustment method that will be

 

          7   developed in the coming year.

 

          8                   COCHAIR STAFFORD:  Committee, questions?

 

          9             Senator Devin.

 

         10                   COCHAIR DEVIN:  Mr. Cochair, could we have

 

         11   Dave walk through the bill as to what parts are where?

 

         12                   COCHAIR STAFFORD:  Certainly.

 

         13                   REPRESENTATIVE MCOMIE:  Mr. Chair.

 

         14                   COCHAIR STAFFORD:  Representative McOmie.

 

         15                   REPRESENTATIVE MCOMIE:  I have one

 

         16   question of Dr. Godby -- I never get it right.  I have one

 

         17   question before we move on.

 

         18             Basically what's happened here if I'm looking --

 

         19   which one was it?  Chart number 3, Table 3, in looking

 

         20   over on the handout on column -- the middle column --

 

         21   column B, we've increased -- we don't have as much hold

 

         22   harmless.  We've increased by about 19 million or 18

 

         23   million what we're going to pay out.

 

         24                   DR. GODBY:  Right.

 

         25                   REPRESENTATIVE MCOMIE:  We were doing

 

 

 

 


 

 

 

                                                                     216

 

          1   what, a $22 million hold harmless?

 

          2                   DR. GODBY:  Under the current protection,

 

          3   if you look on Table 2, that was the old hold harmless. 

 

          4   The number at the bottom was 10.3 million so you've

 

          5   reduced the hold harmless by 8 million, but you've

 

          6   increased total costs by about 17.

 

          7                   COCHAIR STAFFORD:  Mr. Nelson, just walk

 

          8   us through it, please.

 

          9                   MR. NELSON:  I might explain, the only

 

         10   difference between W1 and W2 was the amounts in the

 

         11   appropriation and we just fine-tuned those from the one

 

         12   that you all received in your packet a couple weeks ago. 

 

         13   Those were a bookmark until Buck and Dr. Godby had time to

 

         14   put estimates together.

 

         15             Going through the bill, page 2 is really the

 

         16   essence of the adjustment, and again, it is for one year

 

         17   only.

 

         18             Line 8, we specify it is for school year '03-'04

 

         19   only.  We make clear in the language lines 12 through 16

 

         20   of that page that you compute it under both scenarios,

 

         21   paragraph (i) being the WCLI as we do currently and then

 

         22   (ii), we call it the parabolic cost of living adjustment

 

         23   based on two things, the WCLI and the teacher data for

 

         24   '02-'03.

 

         25             You take both of those adjustments and you go

 

 

 

 


 

 

 

                                                                     217

 

          1   with the higher of the two.

 

          2             We also keep the language that the WCLI will be

 

          3   as we've always computed it, the average of the six

 

          4   consecutive semiannual indexed reports that we get prior

 

          5   to January 1 of the applicable school year.  That's a

 

          6   continuation of old language.

 

          7             Section 2 continues the study of the parabolic

 

          8   cost of living adjustment -- regional cost adjustment that

 

          9   Dr. Godby is presenting you with, and this directs him to

 

         10   continue that study and to provide a report to the

 

         11   committee on or before November 1.

 

         12             Then the committee is to take that information

 

         13   and present recommendations to the 2004 legislature that

 

         14   will implement some kind of revised regional cost

 

         15   adjustment for the '04-'05 school year.  The amount

 

         16   appropriated is $24,000.  This was up slightly by $4,000

 

         17   from the W1 version that you received in your packet.

 

         18                   COCHAIR STAFFORD:  Senator Devin.

 

         19                   COCHAIR DEVIN:  Mr. Cochair, we discussed

 

         20   this at some length in the Casper meeting and now, Mary,

 

         21   and I guess Dr. Godby, confirm some of the figures I think

 

         22   I understand.  But our current hold harmless, if we went

 

         23   forward, is about 10 million a year.

 

         24                   DR. GODBY:  Right.

 

         25                   MS. BYRNES:  That's correct.

 

 

 

 


 

 

 

                                                                     218

 

          1                   COCHAIR DEVIN:  This bill, if we went

 

          2   forward, I understand it is going to cost us about 22

 

          3   million.

 

          4                   MS. BYRNES:  Madam Chairman -- excuse

 

          5   me -- Mr. Chairman, if you look at column H -- the

 

          6   landscape on this form, column H will show you the best

 

          7   cost we can estimate of 21.1 million.  And that includes

 

          8   column K that you see over there on the far right.

 

          9             So it holds harmless or holds harmless to the

 

         10   current WCLI index value for those districts that

 

         11   Dr. Godby described earlier.

 

         12             You still have a remaining hold harmless of $2.5

 

         13   million.  That's also contained in the base figure, but

 

         14   you're not additionally spending on that.  That's

 

         15   continued funding you have.  So the cost right now that we

 

         16   understand of this interim index would be 21.1 million.

 

         17                   COCHAIR DEVIN:  Mr. Cochair, then as a

 

         18   follow-up to that we have basically a number of things

 

         19   going on.  We've got a system where another year of hold

 

         20   harmless to small districts primarily would cost us about

 

         21   10 million while we had time to do, as I see it, two

 

         22   things:  One would be your study to get back at some of

 

         23   their pieces of real cost on the regional cost piece, and

 

         24   then Dr. Smith's recommendation that we go in and develop

 

         25   prototypes specifically for small schools to try to

 

 

 

 


 

 

 

                                                                     219

 

          1   actually determine their costs.

 

          2             And for $10 million we do another year, take

 

          3   another year to do those two studies and bring them in

 

          4   because, as you pointed out and some of my committee

 

          5   members, they interact with each other, the two of them,

 

          6   and to treat them singly as though they don't interact

 

          7   isn't appropriate.

 

          8             Now, I guess I feel like in this bill that piece

 

          9   needs to go forward, but some other pieces are giving me

 

         10   real heartburn because when you say that we help small

 

         11   districts, well, we do, but it is costing us $21.1 million

 

         12   and we are helping a considerable number other than small

 

         13   districts, too.

 

         14             And the problem is, we can only put this out

 

         15   there for one year because it is a system that can be

 

         16   gamed by just changing your starting teacher salary.

 

         17             So we know we can't leave it out there.  I guess

 

         18   it is the experience that I've had before in that

 

         19   politically it is impossible to put anything out there and

 

         20   ever say it is temporary or for one year.  You never take

 

         21   it -- it never comes back, ever, to where it was.  And we

 

         22   haven't fixed the problem.  So we may put way too much out

 

         23   to one district and then want it back but not have a way

 

         24   to get it easily -- political way to get it back and we

 

         25   have to put yet more out to another system when the

 

 

 

 


 

 

 

                                                                     220

 

          1   studies are done.

 

          2             So I guess, Mr. Cochair, I am definitely -- as

 

          3   I've thought about this, I'm in favor of moving these two

 

          4   studies forward because I think we've got to get to the

 

          5   basic cost on these two areas, but I have a lot of

 

          6   misgivings about putting $21.1 million into the system for

 

          7   one year that doesn't fix the problem that we're going to

 

          8   have to somehow try to take back in varying proportions.

 

          9                   COCHAIR STAFFORD:  Further comments,

 

         10   Committee.

 

         11                   SENATOR SCOTT:  Mr. Chairman.

 

         12                   COCHAIR STAFFORD:  Senator Scott.

 

         13                   SENATOR SCOTT:  Mr. Chairman, trying to

 

         14   understand the cost numbers here, let me see if I've got

 

         15   them right.  If you look on this regional cost of living

 

         16   scenario in column H, it shows 21,161,000.  Now, looking

 

         17   at the bottom of column B, there's a hold harmless amount

 

         18   of 10.3 million.

 

         19             Am I right in thinking that looking at the net

 

         20   new cost of this bill, you subtract that 10 million from

 

         21   the 21 which gives you 10.8 million and then you've got to

 

         22   add back the 2.5 million of remaining hold harmless, so

 

         23   you get a net cost of the sum of those?  Is that right?

 

         24                   MS. BYRNES:  Mr. Chairman.

 

         25                   COCHAIR STAFFORD:  Mary.

 

 

 

 


 

 

 

                                                                     221

 

          1                   MS. BYRNES:  I'm not certain I follow the

 

          2   math on that, but to explain the 21 million, instead of 10

 

          3   million being hold harmless, 8 million becomes a regional

 

          4   cost of living adjustment.  So you're still paying that

 

          5   amount of money and the remaining amount is 2.5 million. 

 

          6   It is still considered hold harmless payments in column E

 

          7   which shows the distribution back.

 

          8                   SENATOR SCOTT:  Mr. Chairman.

 

          9                   COCHAIR DEVIN:  Continue.

 

         10                   SENATOR SCOTT:  So the math comes out the

 

         11   same.  The 8 some million of the 10 million hold harmless

 

         12   is included in this 21 million, so the net new cost is 21

 

         13   million less 8 whatever million it costs?

 

         14                   DR. GODBY:  No.

 

         15                   COCHAIR STAFFORD:  Dr. Godby.

 

         16                   DR. GODBY:  No, Senator Scott, if you look

 

         17   at the total in the bottom of column B, 17.7 million hold

 

         18   harmless, the column H, that's 21 million -- sorry, bottom

 

         19   of column E -- 738.9 million, the bottom of column H is

 

         20   that difference.  Those are total payments, including hold

 

         21   harmless to the system.

 

         22             It is true that hold harmless is being reduced

 

         23   by 8 million.  The reason for that is that hold harmless

 

         24   no longer applies to many, if not most of the small

 

         25   districts because the regional cost adjustment under the

 

 

 

 


 

 

 

                                                                     222

 

          1   parabolic index increases their personnel funding.

 

          2             So through the formula, that's where -- so

 

          3   that -- it is true you're saving 8 million on the hold

 

          4   harmless, that's the safety net, the reason being you

 

          5   don't need the safety net anymore.  And that's what I

 

          6   think -- Senator Devin, that's what concerns you.

 

          7                   COCHAIR STAFFORD:  Senator Devin.

 

          8                   COCHAIR DEVIN:  Mr. Chairman, I would like

 

          9   to move the bill and if it is successful in a second, I

 

         10   would like to then offer some amendments.

 

         11                   COCHAIR STRAFFORD:  It has been moved.

 

         12             Is there a second?

 

         13                   REPRESENTATIVE MCOMIE:  Second.

 

         14                   COCHAIR STAFFORD:  Moved and seconded

 

         15   committee-sponsored Bill 317.

 

         16             Senator Devin.

 

         17                   COCHAIR DEVIN:  I would like to amend out

 

         18   the part that would add in the one-year adjustment and

 

         19   basically move the bill forward probably as section 2.

 

         20                   COCHAIR STAFFORD:  Is there a second to

 

         21   that?

 

         22                   SENATOR GOODENOUGH:  Second.

 

         23                   COCHAIR STAFFORD:  Moved and seconded to

 

         24   pretty much delete section 1 and go with section 2.

 

         25             Senator Devin, would you explain?

 

 

 

 


 

 

 

                                                                     223

 

          1                   COCHAIR DEVIN:  Well, Mr. Chairman, I

 

          2   think that we need to get to a place here -- we have come

 

          3   a long way in this study of this committee learning about

 

          4   regional cost of living and parabolic charts and starting

 

          5   salaries and all of these kinds of things, and amenities

 

          6   that are there and disincentives and so forth.

 

          7             But what we've identified mostly, I think, is

 

          8   the pieces left that we don't know.  And we need to have

 

          9   Dr. Godby proceed to study that piece, what does it really

 

         10   cost in terms of incentive to get adequate personnel into

 

         11   some of these small districts.  They have a special

 

         12   problem.  What are these pieces when we get the proper

 

         13   cost of living indexes adjusted?

 

         14             And then we need to meld that with the small

 

         15   schools study which actually looks at the real costs of

 

         16   small schools in prototypes that fit them rather than the

 

         17   350 scaled backwards.  But the two are going to interact

 

         18   with each other.  And if we proceed forward with infusing

 

         19   this much more new money into the system and say well, as

 

         20   I said earlier, it is for one year and it can't be for

 

         21   more than one year -- because you can fix the system to do

 

         22   anything you want when you know the rules of the game --

 

         23   and that becomes unfair to everyone who either makes the

 

         24   adjustment or doesn't make the adjustment.

 

         25             And, as I said, I think it just becomes

 

 

 

 


 

 

 

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          1   politically impossible to put that much out there and then

 

          2   come back in a year and say, "Oops, you got 3 million too

 

          3   much and you didn't get a million enough."  That just

 

          4   doesn't work.  And I'm willing to say the data needs to be

 

          5   done right to get it cost-based to be fair.

 

          6                   COCHAIR STAFFORD:  Further discussion on

 

          7   the proposed amendment?

 

          8                   REPRESENTATIVE MCOMIE:  Mr. Chair.

 

          9                   COCHAIR STAFFORD:  Representative McOmie.

 

         10                   REPRESENTATIVE MCOMIE:  Mr. Chairman, I

 

         11   can't remember, did we fund -- don't we have to adjust the

 

         12   cost of living every year?

 

         13                   COCHAIR DEVIN:  Mr. Cochair, that's the

 

         14   external cost adjustment and this would actually provide

 

         15   like a 3 percent external cost adjustment, almost

 

         16   equivalent, and there is an external cost adjustment which

 

         17   when I sat in the Appropriations Committee that is

 

         18   recommended for the coming year, so that will be discussed

 

         19   because it is in the budget.

 

         20                   REPRESENTATIVE MCOMIE:  Mr. Chairman,

 

         21   follow-up, I would like to ask Madam Chairman, the salary

 

         22   adjustment and adjusting the whole plan, those are one and

 

         23   the same or are they different?  Because if we have to

 

         24   adjust salaries every year, this parabolic adjustment,

 

         25   while it seems like it is a lot of money, we would have to

 

 

 

 


 

 

 

                                                                     225

 

          1   do the salary adjustment anyway, wouldn't we?  Don't we

 

          2   have to do a cost of living adjustment every year

 

          3   according to the court decision?

 

          4                   COCHAIR STAFFORD:  Senator Devin.

 

          5                   COCHAIR DEVIN:  Mr. Cochair, we do an

 

          6   external cost adjustment every year which we hope will be

 

          7   used significantly in salaries since they're 80 percent of

 

          8   the cost statistics.  But that is an external cost

 

          9   adjustment.

 

         10             The way the salary piece comes into this, as I

 

         11   understand it, is that where you sit on this curve depends

 

         12   on where you put your starting teacher salary.

 

         13             And so as a district I can simply alter where I

 

         14   sit on this curve by adjusting my starting teacher salary

 

         15   at the board level locally.  And that's why Dr. Godby

 

         16   cautioned us before you dare not use it for more than one

 

         17   year and you need to go back and use a previous year,

 

         18   because anytime you don't, you completely control where

 

         19   you sit on here.

 

         20                   REPRESENTATIVE MCOMIE:  One more follow-up

 

         21   question, then.  The Court said that we would make

 

         22   adjustments based upon the CPI or the W -- whatever this

 

         23   is -- I never get it right -- and yet appropriations are

 

         24   saying well, we're just going to do a 1.7 without any

 

         25   figures or without any studies.  Is that right?  Is that

 

 

 

 


 

 

 

                                                                     226

 

          1   what I'm hearing?

 

          2                   MS. BYRNES:  Mr. Chairman, if I can tell

 

          3   you, what the Joint Appropriations did in the external

 

          4   cost adjustment is they based it upon the national CPI and

 

          5   it was a 1.7 percent and that is what they're floating on

 

          6   in their budget.

 

          7             That doesn't necessarily need to be studied each

 

          8   year because those data are available between the CPI

 

          9   index or the WCLI index.  As using this for inflation

 

         10   rate, I believe that might be a separate subject.

 

         11                   COCHAIR STAFFORD:  Further discussion on

 

         12   the amendment?

 

         13                   SENATOR SCOTT:  Mr. Chairman.

 

         14                   COCHAIR STAFFORD:  Senator Scott.

 

         15                   SENATOR SCOTT:  Speaking against the

 

         16   amendment, I hear the argument for but it also seems to me

 

         17   we're dealing with a deeply flawed system.  We know it is

 

         18   deeply flawed.  We did a study this time.  This is the

 

         19   best we've come up with.  Clearly it needs further study,

 

         20   but I think it makes a good deal of sense to have an

 

         21   interim fix to get us through the next year, otherwise

 

         22   you're continuing an unjust system for most of the

 

         23   districts.

 

         24                   COCHAIR STAFFORD:  Senator Sessions.

 

         25                   SENATOR SESSIONS:  Mr. Chairman, I have a

 

 

 

 


 

 

 

                                                                     227

 

          1   question.  What difference -- do you have any idea at

 

          2   all what difference the additional studies will show?  Do

 

          3   you think it will reduce the current funding

 

          4   recommendation or the current funding that's in this bill

 

          5   or increase it, or do you have any idea what the

 

          6   additional studies may show or is it just kind of just

 

          7   supporting information for what you already know?

 

          8                   COCHAIR STAFFORD:  Dr. Godby.

 

          9                   DR. GODBY:  You're asking for prediction

 

         10   of what the next research might show?  Well, if you look

 

         11   at the figure, you will see that that straight line going

 

         12   through the data, the solid line, the diagonal that goes

 

         13   through, you will see that it lies under a number of

 

         14   district -- a number of counties, all of the ones to the

 

         15   left of that line.  You can see just the sheer number of

 

         16   them.  Those reflect current starting salary costs.

 

         17             So my guess would be, having not done the study

 

         18   yet, that we're likely to find -- there's two things

 

         19   affecting those costs.  One is the fact that you're in a

 

         20   small school district probably and the other is the fact

 

         21   it costs more to hire teachers in those districts than the

 

         22   current model funds for.

 

         23             With so many districts on that side of the line

 

         24   and so few districts on the right side, I would guess that

 

         25   it is going to increase.  My guess would be that you're

 

 

 

 


 

 

 

                                                                     228

 

          1   not going to see any decrease in funds, you're going to

 

          2   see an increase over the base case.  Whether it amounts to

 

          3   21 million or not is not clear, but, you know, if this

 

          4   parabola that goes through the data explains about 43

 

          5   percent of the relationship just between those two

 

          6   numbers, it is probably not likely going to be much

 

          7   different.  And then when you include a small school

 

          8   adjustment on top of that, I would imagine that you're

 

          9   probably going to see another increase as well.

 

         10             So if I were betting and I only had to bet

 

         11   high/low, I would bet high, but I wouldn't guarantee it.

 

         12                   COCHAIR STAFFORD:  Further discussion on

 

         13   the proposed amendment?

 

         14                   SENATOR SESSIONS:  Mr. Chair.

 

         15                   COCHAIR STAFFORD:  Senator Sessions.

 

         16                   SENATOR SESSIONS:  Just a thought before

 

         17   we vote.  In trying to solve the small school problem and

 

         18   trying to adjust this before we vote on it, this one year

 

         19   thing, actually isn't it a way for a phase-in of the

 

         20   funding that's going to be needed maybe to address this

 

         21   indexing instead of being hit with that all at one time?

 

         22             I guess my contention is, you know, decide what

 

         23   we need and then phase it in.  I don't know.  That's a

 

         24   decision people have to make.  But that's just a thought

 

         25   that maybe it would be considered a phase-in process

 

 

 

 


 

 

 

                                                                     229

 

          1   instead of putting it off and then being confronted with

 

          2   the whole package in a year.

 

          3                   COCHAIR STAFFORD:  Further discussion?

 

          4             Senator Devin.

 

          5                   COCHAIR DEVIN:  I could agree with that if

 

          6   we knew that this money was going where it needed to in

 

          7   the end.  But if you notice, $10 million hold harmless

 

          8   takes care of the small districts and schools that lost. 

 

          9   Now we're talking $21.1 million, but we don't have any

 

         10   idea whether that money is going in the end to who really

 

         11   can substantiate those are their costs by the time we're

 

         12   done with all of the pieces of the study and then

 

         13   integrate them together.

 

         14             And, you know, then we will be calling -- so if

 

         15   we put money out there to those that in the end are not a

 

         16   small district or their costs do not justify that they

 

         17   should be there, we're going looking to pull 2 or 3

 

         18   million back out of their budget.  And that doesn't -- you

 

         19   have watched it.  That doesn't happen.  And it is painful

 

         20   and then they're called losers, even if it has been out

 

         21   there for one year.

 

         22             And so it is kind of like a roll of the dice

 

         23   whether the people who justifiably need this money are

 

         24   going to get it or whether they're not.

 

         25             And that's my -- and because these two have to

 

 

 

 


 

 

 

                                                                     230

 

          1   interplay with us, our current model has -- Dr. Smith, is

 

          2   it 350 is the prototypical model and then it moves

 

          3   backwards into small schools, because the small

 

          4   school/small district is the other piece of the study that

 

          5   we probably have to do to get --

 

          6                   DR. SMITH:  Madam Chairman, it is for

 

          7   elementary schools 264 with half K and then it is 300 for

 

          8   middle school and 600 for high school.

 

          9                   COCHAIR DEVIN:  And so then the contention

 

         10   is, you know, that what they're looking at, I believe, and

 

         11   it is kind of like mixing a future subject, but is they

 

         12   need to study that piece to get it more accurate to the

 

         13   small district and the small school in the size they

 

         14   really are and develop some additional prototypes and then

 

         15   fit the cost of living piece to it and they will interact

 

         16   with each other.

 

         17             So when we took a system when we started out

 

         18   that was all together and now we keep adjusting one piece

 

         19   and one piece without taking the time to put them

 

         20   together, we're going to have difficulty getting where we

 

         21   need to be.

 

         22                   COCHAIR STAFFORD:  Committee, we need to

 

         23   make a decision on this or we'll adjourn and take it up in

 

         24   the morning.  What do you want to do?

 

         25             Senator Anderson.

 

 

 

 


 

 

 

                                                                     231

 

          1                   SENATOR ANDERSON:  May I ask a question? 

 

          2   Thank you.

 

          3             In light of the fact I've not been involved with

 

          4   a lot of this discussion, some on the appropriations side,

 

          5   from the beginning of time when I first came down here six

 

          6   years ago, there was always a plight on the part of the

 

          7   small schools in regard to equity of funding in comparison

 

          8   to the larger schools.

 

          9             I always used the pie analogy; in other words,

 

         10   all of those monies being spent on all schools would be

 

         11   the pie.  A portion or a piece of that pie would be

 

         12   devoted to these, quote, complaining, grieving, I guess

 

         13   would be a better word, grieving small schools and so

 

         14   always as we debated, the larger schools were always

 

         15   willing to expand the size of the pie in order to satisfy

 

         16   those smaller, grieving schools.

 

         17             So as I listen to this debate, the question I

 

         18   have, whether it be 21 million or all the other million,

 

         19   whatever goes into this, will this increase the size of

 

         20   the pie or does it go to the piece of the pie?  If that

 

         21   question can't be answered at this time, is there a study

 

         22   out there that can tell me over time that the size of that

 

         23   piece over the six years I've been here that the grieving

 

         24   schools have received?  Is there something we can do to

 

         25   equitably increase the size of the piece and still not

 

 

 

 


 

 

 

                                                                     232

 

          1   inordinately increase the size of the pie?

 

          2                   COCHAIR STAFFORD:  The pie will increase

 

          3   by 21 million but the small grieving schools may not get a

 

          4   part of that.

 

          5                   DR. GODBY:  Actually, Mr. Chair, the last

 

          6   column on the scenario page shows how it would be

 

          7   disbursed and the majority of the money would go to the

 

          8   smaller schools.  It is both increasing the size of the

 

          9   pie and the majority of that money is increasing the size

 

         10   of the slice that's going to the grieving schools.

 

         11                   SENATOR SESSIONS:  Mr. Chairman.

 

         12                   COCHAIR STAFFORD:  I think it is about

 

         13   time to adjourn.

 

         14                   SENATOR SESSIONS:  To verify that, look to

 

         15   the index values on that thing.  Your big schools have the

 

         16   lowest index values.  Your smaller schools have your

 

         17   higher ones.  That money is going to small schools.

 

         18                   COCHAIR STAFFORD:  No, grieving schools.

 

         19                   SENATOR SESSIONS:  Your big schools aren't

 

         20   getting it.

 

         21                   COCHAIR STAFFORD:  Question called for on

 

         22   the amendment.  The amendment is to delete the payment at

 

         23   this point and go with basically section 2 of the bill

 

         24   315.W2 which is a continuation of the study.

 

         25             Understand that?

 

 

 

 


 

 

 

                                                                     233

 

          1             All in favor signify by saying aye.

 

          2             Opposed, no.

 

          3             Show of hands, all in favor.

 

          4             Motion carries.

 

          5             Back on the bill, further discussion on the

 

          6   bill?

 

          7                   REPRESENTATIVE LOCKHART:  Question.

 

          8                   COCHAIR STAFFORD:  Question being called

 

          9   for, do pass committee bill on 315.W2.

 

         10             Mr. Nelson, call the roll.

 

         11                   MR. NELSON:  Senator Goodenough.

 

         12                   SENATOR GOODENOUGH:  Aye.

 

         13                   MR. NELSON:  Senator Peck.

 

         14                   SENATOR PECK:  Aye.

 

         15                   MR. NELSON:  Senator Scott.

 

         16                   SENATOR SCOTT:  Aye.

 

         17                   MR. NELSON:  Senator Sessions.

 

         18                   SENATOR SESSIONS:  Aye.

 

         19                   MR. NELSON:  Representative Lockhart.

 

         20                   REPRESENTATIVE LOCKHART:  Aye.

 

         21                   MR. NELSON:  Representative McOmie.

 

         22                   REPRESENTATIVE MCOMIE:  Aye.

 

         23                   MR. NELSON:  Representative Miller.

 

         24                   REPRESENTATIVE MILLER:  Aye.

 

         25                   MR. NELSON:  Representative Robinson.

 

 

 

 


 

 

 

                                                                     234

 

          1                   REPRESENTATIVE ROBINSON:  Aye.

 

          2                   MR. NELSON:  Representative Samuelson.

 

          3                   REPRESENTATIVE SAMUELSON:  No.

 

          4                   MR. NELSON:  Representative Shivler.

 

          5                   REPRESENTATIVE SHIVLER:  Aye.

 

          6                   MR. NELSON:  Representative Simons.

 

          7                   REPRESENTATIVE SIMONS:  No.

 

          8                   MR. NELSON:  Cochair Devin.

 

          9                   COCHAIR DEVIN:  Aye.

 

         10                   MR. NELSON:  Cochair Stafford.

 

         11                   COCHAIR STAFFORD:  Aye.

 

         12             It is passed.

 

         13             We will be ready to adjourn for the evening.  We

 

         14   will begin at 8:00 in the morning.  Your agenda says 8:30,

 

         15   but we will begin at 8:00.

 

         16                       (Meeting proceedings recessed

 

         17                       4:05 p.m., December 16, 2002.)

 

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