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ASCD Advocacy Day Feb. 11, 2015 Iowa School Finance, Iowa Economic and Education Comparability: ASCD Advocacy Day Feb. 11, 2015 Iowa School Finance, Iowa Economic and Education Comparability: and Advocacy for Adequate and Timely School Funding

Pre-thinking • What’s one thing the legislature should do for your school, staff and Pre-thinking • What’s one thing the legislature should do for your school, staff and students as the 2015 Session begins? • ________________________________

Agenda • • State of Iowa Budget State of Iowa Economy Comparison of Education Agenda • • State of Iowa Budget State of Iowa Economy Comparison of Education Funding Advocacy Actions that will make a difference

State of Iowa General Fund 4 State of Iowa General Fund 4

 • Cash Reserve Fund = $522. 3 M • EEF = $174. 1 • Cash Reserve Fund = $522. 3 M • EEF = $174. 1 M Source: Iowa Legislative Services Agency Graybook, end of session analysis https: //www. legis. iowa. gov/do cs/publications/EOS/26076. pdf

FY 2015 Surplus: • $660. 0 million Source: Iowa Legislative Services Agency Graybook, end FY 2015 Surplus: • $660. 0 million Source: Iowa Legislative Services Agency Graybook, end of session analysis https: //www. legis. iowa. gov/docs/publications/EOS/26076. pdf

State’s Cash Position • Current Cash position: north of $1 B – CRF full State’s Cash Position • Current Cash position: north of $1 B – CRF full at $522. 3 million – EEF full at $174. 1 million – Surplus for FY 2015 $660. 0 million – 5. 6% revenue growth YTD through 1/5/15 • Forecast of state financial stress in a year or two – Due to legislative actions (property tax relief and others) – If the economy is healthy but the state budget isn’t growing, what’s the problem?

Current State of State Revenues 8 Current State of State Revenues 8

Feb. 4, 2015 Monthly Revenue Memo LSA to Legislature https: //www. legis. iowa. gov/docs/publications/MM/632469. Feb. 4, 2015 Monthly Revenue Memo LSA to Legislature https: //www. legis. iowa. gov/docs/publications/MM/632469. pdf 9

 • Big 3 are strong through 2/8/15 https: //www. legis. iowa. gov/publications/fiscal/daily. Receipts • Big 3 are strong through 2/8/15 https: //www. legis. iowa. gov/publications/fiscal/daily. Receipts 11

 • Refunds are down 4. 8% through 2/8/15 • Net Receipts are up • Refunds are down 4. 8% through 2/8/15 • Net Receipts are up 4. 4% ($173. 6 million YTD) • REC estimate set on Dec. 12: – Revised FY 2015 to 5. 6% ($361. 5 million) – Set FY 2016 growth of 4. 8% ($328. 2 million) • Overall, healthy if not spectacular revenue growth 12

Economic Comparability 13 Economic Comparability 13

Iowa Economy • Iowa ranks 9 th in the nation in reserve funds on Iowa Economy • Iowa ranks 9 th in the nation in reserve funds on hand, • has the 12 th highest growth rate in gross domestic product nationally, and • ranks 9 th in growth of per capita personal income nationwide. • Governor Branstad’s Condition of the state, in the past 4 years 168, 700 jobs have been created Iowa’s unemployment rate has been slashed by nearly 30% Over $9 billion in private capital investment has located in Iowa We passed the largest tax cut in our state’s history, which through a close collaboration between the Iowa Department of Revenue and county government, is being implemented throughout the state, and – We invested historically in our children’s future through transformational education reform. – –

Per Capita Personal Income 2013 Iowa 2012 2011 2010 2003 $45, 114 $43, 935 Per Capita Personal Income 2013 Iowa 2012 2011 2010 2003 $45, 114 $43, 935 $40, 470 $42, 040 $29, 828 National $44, 543 $43, 735 $41, 663 $39, 937 $31, 472 Iowa 22 24 25 28 33 Rank Highest ranking among the states for Iowa in years and two consecutive years higher than national average. www. bea. gov

Iowa’s growth of 3. 2% (201213) ranked 9 th in the nation and is Iowa’s growth of 3. 2% (201213) ranked 9 th in the nation and is in the highest quintile.

Median Household Income $51, 322 $52, 000 $51, 027 $50, 000 $48, 000 $46, Median Household Income $51, 322 $52, 000 $51, 027 $50, 000 $48, 000 $46, 000 $44, 473 $44, 000 $43, 042 $42, 000 $40, 000 $38, 000 2004 2005 2006 2007 Iowa 2008 2009 2010 2011 USA In 2011, Iowa ranked 24 th in the nation in Median Household Income, with two consecutive years above the national average. LSA FACTBOOK quoting U. S. Bureau of the Census

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Sum it Up • Is this Heaven? No, it’s Iowa. • We’ve recovered from Sum it Up • Is this Heaven? No, it’s Iowa. • We’ve recovered from the economic downturn better than most states. • Education funding will keep the economy moving along and build a solid workforce. • Do you think Iowa can afford to commit to funding education adequately (and timely)?

Education Funding Comparability 21 Education Funding Comparability 21

Public Education Coalition Funding Fact of the Week • Joint effort of AEAs, IASB, Public Education Coalition Funding Fact of the Week • Joint effort of AEAs, IASB, ISEA, SAI and UEN • New issue Jan 13 found here: http: //www. uen- ia. org/attachments/fact_of_week/2015/Ed%20 Fact%201. 13. 1 5. pdf • Let’s take a look at some of the data:

$1, 612 below the national average Source data: Iowa Legislative Services Agency 2013 FACTBOOK $1, 612 below the national average Source data: Iowa Legislative Services Agency 2013 FACTBOOK https: //www. legis. iowa. gov/docs/publications/FCT/2014/25037. pdf

Low Bar • Governor’s Recommendation is 1. 25% for FY 2016 and the FY Low Bar • Governor’s Recommendation is 1. 25% for FY 2016 and the FY 2017 as 2. 45% • LSA budget analysis is found here: https: //www. legis. iowa. gov/docs/publications/LAGRP/620691. pdf • House echoes FY 2016 recommendation by setting 1. 25% for state cost per pupil and 1. 25% for categorical supplements (PD, TSS, Early Intervention/ class size and Teacher Leadership Compensation) • No House Action on FY 2017 • House passes HF 139 to change the process: odd numbered session sets two years worth, even session doesn’t address school aid.

High Bar • Senate has scheduled floor debate on 4% for state cost per High Bar • Senate has scheduled floor debate on 4% for state cost per pupil, categorical supplements, for both FY 2016 and FY 2017, for Tuesday, Feb. 10. • Also includes property tax relief bills for state to continued to absorb the property tax impact of the 4% increase.

What Happens Next? • Other states average 4% increase over the last 17 years. What Happens Next? • Other states average 4% increase over the last 17 years. • Iowa averages 3. 3% over that same time. • What does 1. 25% do to Iowa’s relative position? • If you don’t know the answer, consider that the average district will experience cost increases between 3 -3. 5% annually. • Also, TLC fully implemented is $308 per pupil, compared to $1, 612 funding gap. It will help, but won’t close the gap if regular program funding is set too low.

Poverty • Iowa’s funding for at-risk students and dropout prevention resources, combined with targeted Poverty • Iowa’s funding for at-risk students and dropout prevention resources, combined with targeted grant funds for highneeds schools soon to be appropriated in July 2015, translates into a 9. 8% additional funding commitment for low-income students. • The national average investment is an additional 29% funding per pupil beyond the base for low-income students. Most states provide an additional 20 -25%. Source data: Free and Reduced Lunch Percentage Count data from Iowa Department of Education BEDS data collection. National statistics from American Institutes for Research, Study of New Funding Method for Nevada Public Schools, Sept. 25, 2012.

English-Language Learner Funding Source: Iowa Department of Education, Bureau of Information and Analysis, Basic English-Language Learner Funding Source: Iowa Department of Education, Bureau of Information and Analysis, Basic Educational Data Survey and EASIER During the 2013 interim, an ELL task force met and studied needs of students, best practice and funding considerations. In their report, they recommended “weighted funding closer to the national average by increasing from. 22 to. 39 through a phase-in formula over a three-year period. ”

Center on Budget and Policy Priorities, May 20, 2014 New study looking at all Center on Budget and Policy Priorities, May 20, 2014 New study looking at all spending. http: //www. cbpp. org/cms/? fa=view&id=4011 • • Iowa experienced -11. 7% change in spending per student, inflation –adjusted, since 2008 Only 10 states lowered spending more than Iowa Study concludes Iowa has lost $641 per student, inflation-adjusted, since 2008 Increases in per student spending this year don’t fully compensate for the prior cuts: Iowa’s change in spending per student, inflation-adjusted, FY 13 to FY 14 is $23 Iowa’s % change in spending per student, inflation-adjusted, FY 08 to FY 14, is down $641 per student

Source: NCES data adjusting for cost of living differences Source: NCES data adjusting for cost of living differences

Source: NCES data adjusting for cost of living differences Source: NCES data adjusting for cost of living differences

NAEP History • Iowa was traditionally among the top states early on (caveat – NAEP History • Iowa was traditionally among the top states early on (caveat – NAEP was voluntary, different applications of accommodations, etc. Since 2001, all states must and districts chosen must participate. ) • 1996 Iowa ranked 6 th in 4 th grade math and tied for 1 st in 8 th grade math (did not have an Iowa reading score/rank in 1996). In 1998, ranked 8 th in 4 th grade reading. • More recent picture: 33

Iowa 2013 NAEP rankings • • 4 th grade reading 4 th grade math Iowa 2013 NAEP rankings • • 4 th grade reading 4 th grade math 8 th grade reading 8 th grade math 21 14 20 25 http: //nces. ed. gov/nationsreportcard/stateco mparisons/ 34

IA up 8 USA up 7 since 2003 IA up 1 USA up 8 IA up 8 USA up 7 since 2003 IA up 1 USA up 8 since 2003 35

IA Up 1 USA up 5 since 2003 36 IA Up 1 USA up 5 since 2003 36

2003, Iowa ranked 9 th in 8 th grade math NAEP scores. 37 2003, Iowa ranked 9 th in 8 th grade math NAEP scores. 37

2013, Iowa ranked 25 th in 8 th grade math NAEP scores. 38 2013, Iowa ranked 25 th in 8 th grade math NAEP scores. 38

Iowa NAEP rankings in the top 8 in 90 s Hypothesis: Prior to early Iowa NAEP rankings in the top 8 in 90 s Hypothesis: Prior to early 2000 s, Iowa invested a greater percentage of it’s wealth in state and local government compared to the nation. Public Education is the greatest portion of both state and local government expenditure. Achievement trends mirror investment trends. 39

Expenditures and NAEP Scores • • Consider the trends together Compare relative ranks Iowa Expenditures and NAEP Scores • • Consider the trends together Compare relative ranks Iowa vs. the Nation Trend lines are very similar Looked at 4 th grade reading and 8 th grade math: 40

Per Pupil Expenditure and 8 th Grade NAEP Math Ranks 1990 1991 1992 1994 Per Pupil Expenditure and 8 th Grade NAEP Math Ranks 1990 1991 1992 1994 1996 1997 1998 1999 2000 2002 2003 2004 2005 2006 2007 2009 2010 2011 2012 2013 0 5 10 15 20 25 30 35 40 45 50 Iowa Rank 8 th Grade Math Per Pupil Expenditure Rank Linear(Iowa Rank 8 th Grade Math) NAEP data source: http: //nces. ed. gov/nationsreportcard/naepdata/report. aspx 41

Other Bills of Interest • HF 127 PD Supplement, by Dolecheck, would eliminated the Other Bills of Interest • HF 127 PD Supplement, by Dolecheck, would eliminated the professional development supplement per pupil for any district participating in teacher leadership and compensation grants. In House Education Committee. • HSB 16 and SSB 1052 Mentoring and Induction, by DE, is in Education Committees. This bill requires that, once a district participates in the teacher leadership and compensation grants, they no longer receive the mentoring allocation from teacher quality. • Assessment Task Force Recommendations, SBAC, based on principles of alignment, high expectations, formative/interim and summative assessment system. No bills yet proposed.

From President Josiah Bartlett The West Wing “The best way to increase the power From President Josiah Bartlett The West Wing “The best way to increase the power of the already powerful is to believe you are incapable of making a difference. ”

Why Lobby? “People who write letters write the law. ” Joel Blackwell, The Grass Why Lobby? “People who write letters write the law. ” Joel Blackwell, The Grass Roots Guy 45

Advocacy Actions • Send a “thanks for running” letter • Send a congrats letter Advocacy Actions • Send a “thanks for running” letter • Send a congrats letter (all House, 25 senators in odd numbered senate districts, Governor) • Call and invite to coffee - and listen – Thank them for their public service (and for anything they supported – TLC grants, 5 th year of ELL state funding, preserving PK – if you don’t know, call or email and we can look up something for you) – Ask what they are hearing about education issues – Give contact information and invite them to connect with you as a resource – Find out how they prefer to be contacted 46

Advocacy Actions • Invite them to a school function, board meeting, ribbon cutting, PD Advocacy Actions • Invite them to a school function, board meeting, ribbon cutting, PD day, academic awards senior recognition, staff recognition for retirees, etc. ) • Follow up with priority lists, issues, position papers and data soon, but doesn’t have to be the first conversation if you are just building a relationship. • Watch for announcement of committee chairs and appointments. Send a letter thanking them for serving on education or ways and means committee, etc. Offer to sit down and talk issues. 47

Next: Advocacy action steps • Attend Forums “Eggs & Issues” • Go to picnics Next: Advocacy action steps • Attend Forums “Eggs & Issues” • Go to picnics and fundraisers “Most committee votes are won or lost at fish fries, not in committee meetings. ” Bob Guyer • Come to the Capitol anytime (wing it or call an insider for help) • Donate money to a candidate or legislator • Have a letter writing party – Ask for legislative support – Thanks for legislative action 48

Never doubt that a small group of thoughtful citizens can change the world. Indeed, Never doubt that a small group of thoughtful citizens can change the world. Indeed, it is the only thing that ever has. Margaret Mead Decisions are made by those who show up. President Josiah “Jed” Bartlett NBC’s “The West Wing” 49

ISFIS Staff Contacts Contact Us Office 515 -251 -5970 www. isfis. net Larry Sigel ISFIS Staff Contacts Contact Us Office 515 -251 -5970 www. isfis. net Larry Sigel Margaret Buckton Jon Muller larry. sigel@isfis. net margaret. buckton@isfis. net jon. muller@isfis. net Cell: 515 -490 -9951 Cell: 515 -201 -3755 Cell: 515. 577 -2136 Josie Gerrietts Traci Giles josie@skillsiowa. org traci. giles@isfis. net Sean Gibson sean. gibson@isfis. net Susie Olesen susie. olesen@isfis. net Cell: 641 -745 -5284 James Passick james. passick@isfis. net