M I N U T E S

Select School Finance Committee

Casper College                                                                                                           August 23, 2005

217 Stausner Student Center                                                                                    Casper, Wyoming

PRESENT:      Senator Hank Coe, Cochairman;

                        Representative Jeff Wasserburger, Cochairman;

Senators Kit Jennings, Rae Lynn Job and; John Hines;

Representatives Ross Diercks and Debbie Hammons.

                        Other Legislators in Attendance: Senators Tex Boggs and Charles Townsend; Representative Del McOmie.

                        State's Counsel for School Finance Litigation: Michael O'Donnell and Tania Hytrek;

                        Legislative Service Office: Dave Nelson, Brenda Long, Joe Rodriguez and Matt Sackett.

                        Others:  See attached Appendix A.

ABSENT:        Senator Phil Nicholas; Representatives Owen Petersen and Lorraine Quarberg.

*  *  *  *  *

Representative Jeff Wasserburger, Committee Cochair, convened the Select School Finance Committee at 10:05 a.m.  Roll call of member attendance followed, with one member absent and two excused. There was no specified agenda as the meeting was considered a working session.

The meeting commenced with a brief discussion by Select Committee Staff Dave Nelson on the results of the small school professional judgment panel (PJP) that Dr. Picus and Dr. Odden conducted on August 1, 2005, in Cheyenne.  A list of panel attendees was provided to members of the Select Committee and is included as Appendix B.  Findings and comments resulting from the small school PJP discussion are incorporated into the August 16, 2005, recalibration working draft report, a copy of which was previously distributed to Select Committee members and is attached as Appendix C.

Dave Nelson briefly discussed changes in the consultant's contract and scope of work necessary to accommodate schedule modifications agreed to by the Select Committee at its last meeting, which changes have been approved by the Management Council. A revised tentative schedule for recalibration activities was handed out, which is included as Appendix D.

Dave Nelson distributed and explained a chart depicting block grant components and adjustments, which is included as Appendix E.  This chart responded to several Select Committee questions regarding how salaries were incorporated into the model and funding levels provided for various parts of the existing model.

Colleen Anderson, Wyoming Department of Education, informed the Select Committee that school district data collection for the recalibration of the new model was proceeding on target.  She reported that the Wyoming Department of Education anticipates SY 04-05 data to be available to recalibration consultants by September 15^th.  On behalf of the department, she expressed appreciation for the additional funding provided to the department for recalibration data collection efforts and stated that the additional funding was vital for continued timeliness of the data collection process.  The department is utilizing new validation software to verify data reporting accuracy, which should result in clean and usable data for the recalibration project.  Notice and appreciation of school district efforts in reporting timely data was also expressed by Ms. Anderson.

Cochair Wasserburger introduced Dr. Jim McBride to Select Committee members, the newly appointed Wyoming Superintendent of Public Instruction.  Dr. McBride expressed enthusiasm for working with the Select Committee and the Legislature and for the direction of the Department of Education under his administration.

Dr. Lawrence O. Picus and Dr. Allan Odden.

Dr. Picus commenced recalibration discussions by introducing Michael Goetz, a member of the consulting team whom will be performing much of the modeling work for the recalibration of the funding model.  Dr. Picus also stated the consultant team looks forward to working with State Superintendent McBride and to continuing work with departmental data personnel.  Dr. Picus expressed gratitude to the department and to school districts for their efforts in collecting and reporting district data.  Dr. Picus briefly summarized discussions of the small school PJP and thanked participants for insights into small school operations.

Dr. Picus distributed and directed attention to a summary of remaining recalibration recommendations and outstanding issues, a copy of which is included as Appendix F.  The first item for discussion focused on model prototypes.  Although initial recalibration proposals suggested an increased number of prototypes, additional analysis and review suggests this number may be somewhat reduced.  Dr. Picus discussed issues associated with small elementary school prototypes of 48 students or less, and proposed teaching and administrative personnel resources.  Also, Dr. Picus addressed small middle and high school prototypes of 105 students or less.  As both school prototypes are resourced at the same level of teaching positions, consultants recommend the prototypes be combined into a secondary-level prototype. Exception would be provided for Alternative Learning Environment (ALE) schools.

Representative Hammons moved the small middle and high school prototypes be combined into a secondary school prototype.  Senator Job seconded the motion.  Following discussion on ramifications of consolidation, Select Committee members expressed support for an additional teaching/pupil support position at the middle school level. The motion by Representative Hammons carried.

Dr. Odden discussed small school teacher resourcing incorporating use of multi-age classroom strategies and small school PJP discussion addressing this resourcing strategy.  A portion of small school PJP participants support and utilize multi-aging as a strategy for program delivery, while another portion of the PJP participants opposed this strategy.  Further, a portion of the PJP participants proposed resourcing 48 student schools the same as 96 student schools.  The consultants propose resourcing small schools at levels supported by multi-aging strategies.  With regard to high schools, this strategy supports resourcing at seven, 5 core teachers and 2 specialists, together with use of distance learning capability.  Small school PJP discussion alternatively suggested the seven resourced model be increased to nine to allow flexibility in the class schedule and in class offerings beyond the core, such as vocational education programs.

Select Committee discussion included concerns with possible limitations imposed upon small schools by a seven teacher resourced model.  Cochair Wasserburger inquired as to the number of small schools impacted by this proposal, to which Dr. Odden replied the data indicated 24 schools impacting up to 160 students.  Dr. Picus added the model will generate other resources such as tutors and pupil support in addition to the personnel generated by prototypical FTE teachers.  He stressed the importance of viewing the entire resources generated by the model when discussing individual model components.  Following discussion, Representative Dierks moved to resource the 48 student elementary prototype at 6 FTE teachers, up from 4.  Senator Job seconded the motion and the motion carried.

Discussion on the secondary prototype for 105 student schools involved comparisons of proposed resource levels with current resources and relationships to district practice.  Dr. Picus reiterated comparisons between the existing model and the proposed recalibrated model are difficult on a component-by-component basis without giving consideration to the total level of funding generated through the entire model.  Further, Dr. Picus indicated the proposed recalibrated model is to be school-based, as opposed to the current model which is district-based.  He restated the recommendation that sufficient resources would be provided for delivery of the required statewide educational program by the proposed resourcing of the 105 student secondary school, which is seven FTE teaching positions supported by multi-aging strategies and distance learning.

Cochair Wasserburger moved to resource the 105 student secondary school at nine FTE teaching positions.  Senator Hines seconded the motion and the motion carried.

The next prototype item focused on prototypical provision for specialist teachers, which was suggested in the report to be at 20% of core teachers.  Dr. Odden reiterated previous discussion at the last Select Committee meeting ranged from a 20% specialist staffing level, to 33% and 40% depending upon district class scheduling.  By increasing minimum small school prototypes to six at the elementary level, and to nine at the secondary level, the small school PJP participant recommendation of a two specialist minimum is addressed.

Senator Job moved the Select Committee resource prototypes for specialist teachers at 33% of core teachers.  The motion was seconded by Representative Dierks and the motion failed.

Cochair Coe moved to adopt a 20% resource level for specialist teachers.  The motion was seconded by Representative Hammons and the motion carried.

Dr. Odden continued by addressing gifted and talented resources and stating the evidence supports accelerated separate classes and grade skipping as appropriate strategies for gifted and talented program delivery.  This was supported by additional independent research and discussions with several gifted and talented coordinators at other states.  One approach previously discussed by the Select Committee at the last meeting was to resource the central office component at a level between $75 to $100 per ADM to enable a district-wide position for this purpose.  Dr. Odden indicated recent web-based program delivery capability offers an additional and effective strategy for a reasonable cost for students of all ages.

Following Select Committee discussion and the fact the model provides a block grant enabling districts to select a strategy best-suited to its needs, Senator Jennings moved to accept the report recommendation to increase gifted and talented funding from $10 to $25 per ADM.  Representative Hammons seconded the motion and the motion carried.

Executive Session.

At 12:00 noon, CoChair Wasserburger recessed the Select Committee.  Immediately thereafter, the Select Committee resolved itself into executive session to discuss school finance litigation matters with Michael O'Donnell, State's Counsel.

At 1:38 p.m., CoChair Coe reconvened the Select Committee.

Dr. Picus and Dr. Odden-continued.

Dr. Odden resumed discussion by referencing student activities and informing Select Committee members that previously provided student activities data had several gaps, and required further review.  However, the previously identified resource level of $250 per ADM, which represents the statewide average expenditure level, would be sufficient until more accurate and complete data is collected.

Cochair Wasserburger moved to accept the $250 per ADM for student activities resourcing level.  The motion was seconded by Senator Hines and the motion carried. 

Dr. Picus next discussed the issue of student assessment.  As the state is moving to a different statewide assessment tool and is also developing an online database, both enabling school district access to multiple assessment tools, Dr. Odden stated $25 per ADM would provide sufficient district resources for student assessment.  Senator Job commented districts and the state have expended considerable effort and funds on establishing the body of evidence component of the student assessment system, which should be provided sufficient consideration in resourcing districts.  This effort is critical in complying with State Board of Education graduation requirements.  Dr. Annette Bohling, Department of Education, provided additional explanation and information on assessment.  It was pointed out the statewide assessment system would provide district capability to use assessment items and information beyond statewide assessment needs, thereby enabling the incorporation of this resource into local assessment programs.  However, as the department is in the process of developing the data base and requires additional time to evaluate resource requirements for proper implementation of local assessment programs, Dr. Bohling indicated the department would report to the Select Committee on further developments at a later date.

Senator Jennings made a motion to resource districts at $25 per ADM for student assessment programs, with the knowledge the department will provide more information at a later date.  The motion was seconded by Senator Job and the motion carried.

Addressing alternative schools (ALE), Dr. Odden reported teacher staffing resource levels at one FTE teacher per every seven students, subject to a defined distinction between ALE program and a small high school program.  Representative Hammons accordingly made a motion for Select Committee approval of separation of elementary and secondary prototypes from the ALE prototype.  The motion was seconded by CoChair Wasserburger and the motion carried.

Continuing, Representative Hammons questioned reporting requirements to be imposed upon ALE schools and expectations for ALE students.  Dr. Odden responded ALE schools must be defined and outcomes be coordinated at the state level, which would also address the concerns of abuse of this funding component.  Representative Hammons moved to adopt the proposed ALE resource level of 1 FTE teacher per 7 students, contingent upon development of adequate regulation defining ALE school eligibility.  The motion was seconded by Representative Dierks.  State Superintendent McBride stated the department would provide the Select Committee appropriate criteria for school determination and program outcome coordination.  The motion by Representative Hammons carried.

Dr. Picus addressed maintenance and operations and presented differences in component resourcing under recalibration.  Groundskeepers, custodial and maintenance supplies would be resourced at the central administration level as well as the school level, with additional resourcing applied at the secondary level for longer school days.  CoChair Wasserburger inquired as to the formulation for utility resourcing, to which Dr. Picus responded that utilities would be based upon a combination of square footage, age of the building and a regional cost factor.  Dr. Picus indicated utility cost data was being gathered from School Facilities Commission staff.  Cochair Wasserburger made a motion to adopt report recommendations for resourcing maintenance and operations.  The motion was seconded by Representative Dierks and the motion carried.

Dr. Odden discussed the various indices available for adjusting the model for inflationary impacts, currently accomplished through the external cost adjustment (ECA).  Whatever index is chosen, Dr. Odden suggested the same instrument be used each year for consistency.  Cochair Coe added that the WCLI was created for purposes such as this. Cochair Wasserburger moved the Select Committee recommend usage of the WCLI as the index for adjusting for inflation.  The motion was seconded by Cochair Coe and the motion carried.

Addressing the regional cost adjustment or an adjustment for cost differences between different areas within the state, Dr. Picus discussed the hedonic index which considers many variables impacting regional cost differences in addition to salary.  However, the hedonic index would target salaries within the model.  Senator Jennings moved to approve continuation of the hedonic wage approach for adjusting to regional cost differences, for consideration at the next meeting.  The motion was seconded by Representative Dierks and the motion carried.

Dr. Odden discussed salaries for different categories of personnel school staffing along with an experience adjustment for all staff categories.  Part of this conversation included a discussion of health insurance, with a recommendation that health insurance costs be resourced at a level commensurate with levels provided by the state for state employees, approximately $7,235 during fiscal year 2004-2005.  A further recommendation was to provide for district participation in the state health insurance program.  Cochair Coe expressed support for resourcing health insurance costs at the state level.  Cochair Wasserburger moved to adopt the recommended level of resourcing health insurance costs, and to also allow districts to opt into the state health program if determined feasible by a study being conducted by the Department of Information and Administration, to be reported in November.  The motion was seconded by Senator Jennings and the motion carried.

In regard to teacher salaries, Dr. Picus advised an analysis is not yet complete from which to determine resourcing for salaries.  However, it was recommended that resourcing for teacher experience and education be at the level of teacher numbers generated by the recalibrated model.  Senator Job inquired as to the difference between the current number of actual teachers and the number generated by the recalibrated model prototypes.  Dr. Picus responded it would not be known until salary information was completed and the actual model was built.  Cochair Wasserburger moved to adopt the proposal for resourcing teacher experience and education based upon the number of teachers generated by the model, which was seconded by Senator Jennings.  The motion carried.  Dr. Picus added the request for comparative information made by Senator Job would be provided when possible.

Senator Jennings requested that a stripped down version of the recalibration report document be prepared which contained only information relevant to the model, without the underlying supporting research.  Dr. Picus and Dr. Odden acknowledged this request.

Future Meetings.

Cochair Coe announced the next Select Committee meeting is scheduled for Monday, October 31, and Tuesday, November 1, in Casper with a location yet to be determined.  The meeting would also include Joint Education Committee attendance.

Adjournment.

There being no further business, Cochair Wasserburger adjourned the Select Committee at 4:05 p.m.

Respectfully submitted,

__________________________________    _________________________________

Senator Hank Coe,                                           Representative Jeff Wasserburger,

Select Committee Cochair                                Select Committee Cochair