“Think Twice”:The Origin & Implications of

Vermont’s Act 82

Prepared for the September 2007 Regional Meetings

Education Legislation Passed Since 1997• 1997: Equal Education Opportunity Act (Act 60);

School Bus Standards; Family Leave Act

• 1998: Gifted & Talented; Integration of Home Study Students; Probationary Teachers; Tech Ed Funding System Change; Criminal Record Checks; Education, Taxation & Financing Act

• 1999: Comprehensive High School Funding; Capital Construction Act

Education Legislation Passed Since 1997

• 2000: Hazing & Harassment; High School Choice; Criminal Record Checks II; Safe Schools; DOE Procedures Act; Act 117; Toxic Materials in Schools Act

• 2001: Tech Center Finance; Union School Board Representation; American Sign Language

• 2002: Use of Federal Funds; Tax Amendments; Medicaid; Capital Construction Funding Changes; Pledge of Allegiance; WWII Vet Diplomas

There’s Lots More

• 2003: Act 68; School Meals; Emergency Preparedness; Bidding & Transportation Contracts; NCLBA State Alignment; Technical Corrections (8 separate provisions); Passenger Safety Act; Service Dogs in Public Accommodations; Mandatory Child Abuse Reporting; Tech Ed for “Remote” Students; Adult Ed Funding

There’s Lots More

• 2004: Harassment; Bullying; Youth in Agriculture; Medicaid; School Construction Aid Eligibility; NCLBA Compliance; Act 130; Nutrition Policy in Schools Act; Liability Insurance; Regional Tech Centers; Budget Surpluses; Korean Vet Diplomas

• 2005: Agency Fees; School Buses; Capital Construction

And Finally…In the last two years

• 2006: Allergies & Chronic Illnesses; VSBPE; Informing Students & Parents of Rights; Vermont Products in Schools; High School Completion for “Dropouts”; Early Education; Capital Construction & State Bonding; Suicide Prevention; Technical Corrections (12 provisions); Home Study Programs; Funding Tech Ed Districts

And Finally…In the last two years

• 2007: Education Quality & Cost Control (H.526); Technical Corrections (5 provisions); Pre-Kindergarten; Motor Vehicle Idling; Statewide School Calendar; High School Diploma for Vietnam Vets

AND… 19 “Summer” Studies & Reports

Summer Studies & Reports• COE: Grade Level Weights• COE: Excess Spending Threshold• JFO: Cost Drivers• COE: DOE Operations &

Effectiveness*• JFO: Provision of Special Ed—Cost

Shifts*• JFO: Ed Services Funded by Medicaid• JFO: Mandates & Cost Shifts*• COE: Financial Mgt. of Districts &

S.U.’s• COE: Education Governance*• Prop. Valuation & Review: Rolling

Reappraisals• COE: Statewide Calendar• COE: ADM by Sampling*• COE: Distance Learning• COE: Teen Parent Education• JFO: School Construction Finance

• COE & Finance: School Construction• AHS & COE: Success Beyond Six• COE: Racially & Ethnically Diverse

Teachers• AHS & COE: Autism Spectrum

Disorders

Changed Federal, State & Local Relationship

• Pre Act 60

• Post Act 60

• Goals 2000 to NCLBA

• Who’s The “Senior Partner” Now?

Sources of Vermont School Revenues

Public Perceptions of Education Issues• Governor Douglas Very Popular

• Governor’s Spending Caps Supported by Majority

• Property Taxes Seen as Excessive by Two-Thirds

• Excessive School Spending Seen as Cause of High Property Taxes by 27%

Public Perceptions of Education Issues

• Three of Five Voters Rate Vermont Schools as “Above Average”

• BUT, Voters do NOT View Local Schools as Highly as Vermont Schools in General

• Only 46% See Vermont Education as Having Improved in Last Two Years; 29% Now See School Quality as on Decline

Public Perceptions of Education Issues

On The Other Hand..

• Most Voters Not Willing to Trade Local Control for Property Tax Relief

• Even More Unwilling to Trade Cuts in Enrichment Courses for Property Tax Relief

• Almost As Many Unwilling to Trade Sports for Property Tax Relief

Public Perceptions of Education Issues

• Most Believe Their Local Districts Can Make Only Modest Spending Cuts Without Hurting Quality

• Most Want Budget Decisions Made Locally

• Vermonters Still Rank Schools More Favorably Than Voters in Almost All Other States

Meanwhile…Vermont Schools Get High MarksSUCCESS I N VERM ONT SCHOOLS

A snapshot of public education in Vermont from the VSA, VPA and VSBA

High Performing Schools Education WeekÕs Quality Counts 2007 determined that Vermont schools performed 3rd best in the nation in achievement and achievement gains. The determination was made using 13 indicators, including NAEP scores, graduation rate, and recent improvement in achievement.

Educator Staffing 69.6% of Vermont public school employees are educators or instructional staff, fourth-highest in the country. Nation-wide, just 62.2% of school employees are educ ators or instructional staff.

2005 Vermo nt NAEP Results

The National Assessment of Educational Progress compares academic achievement across states, and consis tently ranks Vermont in the upper ec helon of success. In fac t, VermontÕs NAEP Proficiency ranks 4th best in the country.1 Vermont 4th graders:

were outperformed by only one other state in reading and math

outperformed 41 other states/jurisdictions in reading

outperformed 39 other states/jurisdictions in math

Vermont 8th graders: were outperformed by only one other state in reading and math

outperformed 34 other states/jurisdictions in reading

outperformed 43 other states/jurisdictions in math

Highly Qualified Teachers

92% of Vermont teachers in core academic subjects are ŅHighly Qualified,Ó a fe deral designation indicating that an educator is suitably educated, trained and competent. In addition, Vermont is one of five states where 100% of teachers receive High Quality Professional Development annually.

1 Editorial Projects in Education Research Center

Music and the Arts Three Vermont schools have won Kennedy Center Alliance for Arts Education ŅNational School of DistinctionÓ awards since 2001, and six more have earned state-level recognition. Thirteen Vermont music students have been awarded full scholarships to study at the National Symphony Orchestra Summer Institute since 2000.

SAT Success:

Scores Rise Š More Students are Assessed Vermont has made significant strides in preparing students for the SAT in recent years. Mean test scores have steadily increased while the number of students taking the ex am has risen dr amatically. Overall, Vermont ranks 7th nationwide in weighted SAT achievement.2

Year # of students Verbal Math 1998 5051 508 504 2000 5331 513 508 2002 5659 512 510 2004 5750 516 512 2005 5837 521 517

High School Completion

Vermont schools have made impressive strides in retaining and graduating their students. In the 1990s, Vermont decreased the number of students who donÕt complete high school by 66%. By the year 200 0, Vermont had the highest high sch ool completion rate in the nation at 88.2%!3 Since then, the percentage of students who drop out has continued to fall:

4.67 4.66

3.93.45

2.57 2.4

00.5

11.5

22.5

33.5

44.5

5

% of total students

FY00 FY01 FY02 FY03 FY04 FY05

HS Dropout Rate

2 American Legislative Exchange Council 3 One-Third of a Nation, Paul E. Barton, Educational Testing Service

SUCCESS I N VERM ONT SCHOOLS A snapshot of public education in Vermont from the VSA, VPA and VSBA

Vermont is the ŅSmartest StateÓ

ŅFor the second consecutive year, Vermont holds on to the top of Morgan Quitno PressÕs education rankings as the nationÕs Smartest State. Vermont has earned this distinction by demonstrating a strong commitment to students and teachers, an emphasis on excellence in the classroom and support for efficient public schools.Ó1

Opportunity for Success Quality Counts 2007 ranks the states on a ŅChance-for-Success IndexÓ that tracks the life-long benefits of residentsÕ educational experience. It includes some traditional indicators such as residentsÕ NAEP scores combined with adult educational attainment, annual income, and availability of relia ble employment. It determined that Vermont residents have the 9th best chance for success.

NECAP Leadership

Vermont has developed and implemented a common educational assessment tool with New Hampshire and Rh ode Island for grades 3-8. 2005 was the first year of testing, and the results confirm VermontÕs commitment to education. 67% of Vermont students were found to be proficient or better in reading, and 63 % were proficient or b etter in math. Vermont also ranked first i n proficiency among the three states in every subject area.

Youth Risk Behavior Declines

A biannual survey administered to Vermont high school students determined that:

Cigarette smoking is down 1999: 31% 2005: 16%

Alcohol consumption is down 1999: 46% 2005: 37%

Marijuana use is down 1997: 32% 2005: 22% Sources: 2006 Kids Count Data Book, American Legislative Exchange CouncilÕs Report Card on Americ an Education (2003), Editorial Projects in EducationÕs Quality Counts 2007, Education Vital Signs 2006, Morgan Quitno Press, New Hampshire Dept. of Education, Rhode Island Dept. of Education, US Dept. of Education, Vermont Arts Council, Vermont Dept. of Education, Vermont Dept. of Health, Vermont School Boards Insurance Trust, Vermont Superintenden ts Association

1 Morgan Quitno Press, 2006, an independent private research and publishing company

Employee Wellness

In 2007 m ore than 7000 Vermont school employees will help to reduce health insurance costs by participating in the Vermont School Boards Insurance Trust Ņ Path to WellnessÓ program.

Renewable Energy and Efficiency

Vermont schools lead t he nation in the use of renewable fuels- 30 schools use wood chips for heat and hot water. The VSAÕs School Energy Management Program works directly with schools a nd helps them convert to renewable fuels and improve efficiency. This program saves local schools more than one million dollars a year in energy costs.

More Early Readers

Vermont 2nd graders are reading at their highest level ever. The State Developmental Reading Assessment shows that:

The number of 2nd graders below the standard has been cut in half since 1999.

85% of 2nd graders are meeting or exceeding the reading standard in 2006, up from 73% in 1999

AP Achievement

Advanced Placement allows high school students to prepare for college by taking college-level courses and earning coll ege credit. AP exams are admi nistered nationally and are graded on a scale from 1 (worst) to 5 (best) . Vermont students taking AP exams scored a mean of 3.06, 6% better than the national mean. Vermont studentsÕ achievement is even more pronounced in some subjects:

AP Subject VT Mean US Mean Calculus (BC) 4.35 3.71

Comp. Sci. (AB) 4.25 3.38 Econ. (Macro) 3.86 2.74 Econ. (Micro) 4.10 2.99 World History 3.47 2.62

A publication of the VT Superintendents Association, the VT Principals Association, and the VT School Boards Association

Contact: Vermont School Boards Association

2 Prospect St., Suite 4, Montpelier, VT 05602 (802) 223-3580

And School Spending Patterns Change

Annual Education Spending PercentIncrease from Prior Year

6.60%

5.98%

5.41%

4.37%

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

FY2005 FY2006 FY2007 FY2008

This chart shows that the rate of growth in education spending has been slowing significantly in recent years, as school boards and administrators strive to contain costs. Vermont’s annual education spending percent increase for FY08 is estimated to be 4.37%. Meanwhile, the most recent data available (2005-06) shows that personal income per capita grew 4.7% in Vermont.

Education Fact Sheet

9-Year Average Annual Change in Education Spending Per Pupil

(Inflation Adjusted - Districts ranked by Education Spending Per Pupil in FY1998)

0.024 0.024

0.015

0.032

-0.007-0.01

-0.005

0

0.005

0.01

0.015

0.02

0.025

0.03

0.035

FY1998 Spending Quintile

Lowest 2nd 3rd 4th Highest

This chart, prepared by the Joint Fiscal Office, shows the average annual percentage change in per pupil spending from 1998-2006, grouped by high and low spending districts in 1998. Since 1998, equity as measured by spending per equalized pupil has improved in Vermont’s public school system. Vermont’s lowest spending districts have increased their investments in education the most, while the State’s highest spending districts are actually spending fewer inflation-adjusted dollars per pupil than in 1998.

Major Elements of Act 82

Two Vote Budget Approval Process

• Act 82 limits the amount an above-average spending district may increase its per equalized pupil spending;

• If amount of the budget proposal is greater than maximum allowed, voters must “think twice” via separate ballot warning.

The “Maximum Inflation Amount”

Two components to determine how much above-

average spenders may increase education spending

without a separate vote:

1. Prior year’s statewide average education spending per equalized pupil

2. An inflationary index

The Ballot

The school budget ballot must warn the two questions, if necessary, as follows:• “Shall the voters of the School District

approve a total budget in the amount of [$ ], which includes the Maximum Inflation Amount of education spending?”

• “If Question #1 is approved, shall the voters of the School District also approve additional education spending of [$ ]?”

Declining Enrollment

• Districts with declining enrollment will be allowed to use the prior year’s pupil count for the purposes of calculating their maximum inflation amount.

• This will aid districts with one year of decline, but districts with persistent declining enrollment can expect tighter budgetary restrictions from the MIA.

S.U. Bargaining

• Act 82 requires all school boards within a supervisory union to bargain jointly with all employee bargaining units.

• Any negotiated agreement would be subject to separate ratification votes.

• Failure to ratify the common contract will result in further, individual negotiations between the district and the bargaining unit.

Two Exceptions

Districts May Bargain Separately When:

1. The supervisory union has more than one high school.

2. The S.U. includes both districts that tuition high school students and districts that encompass grades K-12.

Grade Level Weighting

• The secondary pupil weighting (grades 7-12) will be lowered from 1.25 to 1.13 effective for the 2007-08 school year.

• Assuming budgets and enrollments remain constant, this change will increase the per pupil cost of educating a secondary student, and decrease the per pupil cost of educating an elementary student.

(Continued)

• Union high school districts should expect increased per pupil costs as a result.

• Most taxpayers’ bills will not see a significant difference due to this change, because the bill will reflect higher secondary costs and lower elementary costs.

See Handout for More Information

High Spending SpEd Districts

• The Commissioner is to identify districts spending 20% greater than average on special education and develop “remediation plans” with those districts.

• If the district does not make “satisfactory progress” within a period of years, it would be subject to a 10% special education reimbursement withholding.

A Notice to Taxpayers

• Every school tax bill mailed will include a two-page flyer with charts intended to show the relationship between school spending and education property tax rates.

• The sub-title is: “The more you spend, the more you pay.”

State-placed Students

Beginning in FY09, districts will be eligible for 100% reimbursement of costs for state placed students, including mainstream costs, if the district can document all costs.

And Finally, There’s All Those Studies

• Biannual Recommendations on Grade Level Weights

• Analysis and Recommendations Regarding High Spending Special Education Districts

• A Study of Cost Drivers in Education

• A Study of Operational Effectiveness and Efficiency of the DOE

• Education Governance Report and Recommendations

And Finally, There’s All Those Studies

• Recommendations for the Interagency Provision of Special Education Services

• Study of Educational Services Funded by Medicaid

• Mandates Study

• Examination and Recommendations Regarding the Financial Management of Districts

• Rolling Reappraisal Feasibility Study

What Can YOU Do Now?

• Work With Your Board to Determine Effects of Act 82 on Your District

• Schedule a Meeting With Your Legislators Before January

• Tell Them How Act 82 Will Effect Your School

• Ask Them If They Will Work to Remedy Act 82

• Sign Up for VSBA Legislative Liaison; Prepare to Stay Engaged

We Need To Work Together

• Contact Your Regional VSBA Board Representatives With Questions and Ideas

• Contact the VSBA Office for Information, Talking Points and Strategies

• Attend VSBA Annual Meeting to Vote on Resolutions

• Coordinate With Your Administrators, Parents and Teachers