Distributed via Email: May 7, 2010

LEGISLATURE STRUGGLING WITH FY 2011 BUDGET

Today is the self-imposed adjournment deadline for the Illinois General Assembly, but after several long days of trying to approve a Fiscal Year 2011 state budget, lawmakers are still debating various budget scenarios. The plan is still to adjourn by the end of the day, but there is not yet an agreed budget solution.

Late last night (actually early Friday morning), the Senate did pass a “lump sum” budget and send it to the House of Representatives. The budget debate on the Senate floor was intense, partisan, and at times personal and acidic. Again this morning, Senate floor debate got nasty between the two parties.

But as to the budget bill passed (HB 859) last night, it is not likely the end result as the House has its’ own budget plan. Generally, the budget bills being discussed in the Capitol attempt to hold elementary and secondary education at current (FY ’10) budget levels. This is a positive turn as Governor Pat Quinn’s recommended budget would have cut K-12 education by nearly $1 billion. Governor Quinn states that those cuts will have to be made unless there is passage of a bill to increase the state income tax rate.

But in the likely scenario where an income tax increase is not approved, House Speaker Michael Madigan and Senate President John Cullerton say that the passage of a cigarette tax increase is necessary to fully fund mandated categorical grants. The tobacco tax would raise an estimated $320 million and would be earmarked for the categoricals.

Other pending budget bills contain provisions for the closing of tax “loopholes”, an income tax amnesty program, additional gaming (video gaming and slot machines at horse race tracks), additional borrowing to make state pension payments, and possibly delaying payment of pension debts until next year. There are also bills for an Emergency Budget Act to send lump sums to the governor in all areas of the state budget and require the governor to allocate the funding into specific budget line items.

The final budget will not be pretty. Few hard revenue streams will likely be included. Some mix of the aforementioned proposals will comprise the bulk of the end result.

Floor debate can be heard via the General Assembly’s internet website. To listen to the Senate, go to: http://www.ilga.gov/senate/audvid.asp .

To listen to the House, go to: http://www.ilga.gov/house/audvid.asp

BILLS FOR MANDATE RELIEF AMENDED, MOVE AHEAD

Though the bills pushed by the Alliance and others to provide some type of mandate relief to local school districts are still moving, they fall far short of the ideals pushed by school management. The fact that any mandate relief proposal is still viable, however, is a testament to the diligence and tenacious support of State Representative Roger Eddy (R-Hutsonville). Representative Eddy amassed dozens of hours working with the Illinois State Board of Education (ISBE) and other groups that had concerns with the earlier drafts of the mandate relief legislation.

As approved by the Senate Education Committee Friday morning, HB 4711(Eddy) still states that no school district is obligated to comply with any future mandate that is added to the Illinois School Code unless a separate appropriation has also been enacted that provides full funding for the mandate for the school year during which the mandate is required. However, a series of steps must be followed. The process was mirrored after Alliance “opt out” language placed in the school breakfast legislation in 2005 (Public Act 93-1086).

Under the bill, before discontinuing or modifying a new mandate, the school district shall petition its regional superintendent of schools on or before February 15 of each year to request to be exempt from implementing the mandate in the next school year. The petition shall include all legitimate costs associated with implementing and operating the mandate, the estimated reimbursement from State and federal sources, and any unique circumstances the school district can verify that exist that would cause the implementation and operation of such a mandate to be cost prohibitive. The regional superintendent then reviews the petition, convenes a public hearing, and on or before March 15 of each year, informs the school district of his or her decision. If the regional superintendent does not grant an exemption, the school district must implement the mandate or appeal the decision to the State Superintendent of Education.

The original language of the bill simply would have allowed a school board, by resolution, to opt out of any state mandate on school districts if the State did not supply appropriate funding for the school district to carry out the requirements. HB 4711 is pending on the floor of the Senate.

TASK FORCE RESULTS

Another mandate relief bill was the result of two task force meetings intended to study current mandates on school districts. Again, the final product was far less than the Alliance had hoped for. HB 80, sponsored by a very supportive Senator John Sullivan (D-Rushville) in the Senate, does three things:

• with respect to the rule that defines a general education classroom be composed of a certain percentage of students with individualized education programs (IEPs), this shall exclude students receiving only speech services outside of the general education classroom;
• allows a school board to modify the mandate regarding the use of 5% bio-diesel fuel in school buses and allows the district to continue to use 2% bio-diesel blends; and
• increases the statutory drivers’ education fee limit from $50 to $250

Again, the Alliance had hoped for far more relief in the legislation, including allowing a school board to opt out of the mandates for using “green cleaning” supplies, daily physical education, and behind-the-wheel drivers’ education – as well as more flexibility regarding the use of automated external defibrillators and a delayed implementation date for “Response to Intervention” (RTI) procedures.

HB 80, as amended, was approved by the Senate and is waiting for a vote in the House to concur with the Senate amendment. The task force is planning to continue to meet to recommend ways to provide greater flexibility for local school districts.

Along with Senator Sullivan and Representative Eddy, the Alliance would also like to thank Senators Ed Maloney (D-Chicago) and Susan Garrett (D-Lake Forest) and Representatives Sandy Pihos (R-Glen Ellyn) and Suzi Bassi (R-Palatine) for their work on this key issue.

PRIVATE SCHOOL VOUCHER BILL DEFEATED

The Alliance joined the teachers’ unions and other school management groups in defeating the bill that would have instituted a new private school voucher program in Chicago. SB 2494 (Meeks, D-Chicago) failed to achieve the requisite number of votes on the floor of the House of Representatives (it needed 60 votes) for passage. It appeared that only 48 “yes” votes were on the message board during voting, but a parliamentary procedure required that the board be erased and the roll call “dumped” so that the vote was unofficial.

The bill would have allowed parents of children in the lowest performing Chicago elementary schools to receive a state voucher to pay for education at a non-public school. An amendment was added that attempted to require that all of the funding for the voucher program be taken out of the Chicago Public Schools State aid allotment, instead of siphoning funds from other school districts across the State. After having passed the Senate on a vote of 33-20-3, the bill still fell short on the House floor.

“HOT BILL” ACTION THIS WEEK

The following bills have been approved by both legislative chambers and will be sent to the Governor:

SB 3117 (Garrett, D-Lake Forest) , an Alliance initiative, extends the time period for allowing interfund transfers by three years (from June 30, 2010 to June 30, 2013). It allows a school district to transfer funds among the education fund, the operations and maintenance fund, and the transportation fund.

SB 3635 (Noland, D-Elgin) requires that at least 60% of transitional bilingual funding must be used for instructional costs of bilingual education.

SB 3638 (Link, D-Vernon Hills) provides for the creation (through the Department of Revenue) of Taxpayer Action Boards in Cook, DuPage, Kane, Kendall, Lake, McHenry, and Will counties to promote "sunshine in assessments" and transparency reforms. It also extends the alternative general homestead exemption for a period of 3 years and, for counties other than Cook County, the county may elect to be subject to the alternative general homestead exemption if the county adopts an ordinance within 6 months after the effective date of the amendatory Act. Finally, the bill provides that taxpayers who have been granted a disabled veteran’s standard homestead exemption must reapply each year and, for Cook County, requires that taxpayers who receive the senior citizens homestead exemption to re-apply each year.

SB 3681 (Lightford, D-Maywood) adds a “trigger” as to what could cause intervention into a local school district that is certified to be in financial difficulty. Specifically, the ISBE would look at a district that is likely to fail to fully meet any regularly scheduled payroll obligations or debt service payments. The bill also makes some changes for the ISBE regarding obsolete language in the School Code.

HB 16 (Flowers. D-Chicago) abolishes the Regional Office of Education that serves suburban Cook County and transfers those duties and powers to the Education Service Center.

HB 4879 (Eddy) includes the number of pupils enrolled in early education programs in a school district’s transportation reimbursement.

HB 5838 (Burke, D-Chicago) , regarding the requirement for automated external defibrillators (AED) at outdoor physical fitness facilities, deletes the provision which requires that if there is no building available near the outdoor facility, the person responsible for supervising the activity must ensure the availability of an AED.

HB 6065 (Cross, R-Oswego) requires a parent to submit a diabetes care plan for a student with diabetes who seeks assistance with diabetes care in the school setting and provides that a delegated care aide shall perform the activities and tasks necessary to assist a student with diabetes in accordance with that plan.

OTHER BILL ACTION THIS WEEK

SB 2487 (Martinez, D-Chicago) transfers all of the powers and duties to implement the Grow Your Own Teachers Program from the ISBE to the Board of Higher Education.

SB 3460 (Harmon, D-Oak Park) , for early childhood construction grants, allows a public school district to provide local matching funds in an amount equal to 10% of the grant (rather than the amount of the grant).

HB 5234 (Bellock, R-Hinsdale) amends provisions of the Illinois Human Rights Act prohibiting sexual harassment in higher education so that they also apply to sexual harassment in elementary and secondary schools.

HB 5633 (Mitchell, R-Rock Falls) provides that for school districts that have consolidated or approved a cooperative high school within a prior fiscal year, the grant index for the School Construction Grant Program shall be calculated for each of those school districts that form the new school district or cooperative high school and the average grant index of those school districts shall be used as the grant index.

HB 5863 (Eddy) makes many changes regarding the portability of criminal background checks and certification of substitute teachers.

HB 6079 (Black, R-Danville) provides for the establishment of cooperative high schools or elementary schools.

This legislative report is written and edited by the lobbyists of the Illinois Association of School Boards to provide information to the members of the organizations that comprise the Statewide School Management Alliance.

Bill Text/Status: Illinois General Assembly

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