Wednesday, January 27, 2016

NCLB is Finally Left Behind

On December 10th, 2015, President Obama signed the 'Every Student Succeeds Act' (ESSA) into law, leaving 'No Child Left Behind' (NCLB) in the rear view mirror. It is way too early too tell if this law will be the panacea it is heralded to be, but there is some positive news with this re-authorized legislation. For starters, we can celebrate that the locus of control has shifted away from the federal government and back to state and local authorities where it belongs. 

There must be no doubt the premise behind NCLB was honorable. Designed in part to address a growing achievement gap in minority, poverty, and other subgroup populations of students; the legislation required that school districts disegregate these student achievement data and devise plans to close the gap. Prior to NCLB, differences in achievement among subgroups may not have been widely known or scrutinized because we didn't look at data that way. Consider a school where 90% of all students are meeting growth expectations year after year. At first blush, this seems like an impressive statistic. But what if we look at the 10% that didn't meet expectations and realize those 10% are in a minority subgroup or students of poverty? NCLB forced schools to shine a light on these groups and take action on what they saw. Where NCLB fell short was in the implementation of an accountability system that included a heavy reliance on standardized testing and unrealistic, unattainable goals for student achievement. Remember, NCLB set 2014 as the year in which all students in America would be proficient in math and reading. Schools who did not reach this benchmark would be faced with stiff sanctions that could include such things as loss in federal funding, termination of teaching staff, and firing of the building principal. 

The new law still requires districts publicly report achievement data for various subgroups, but provides states and local school districts with the flexibility to develop goals and plans that make the most sense as opposed to a one size fits all system. As a practical matter, arbitrary and unrealistic goals for student learning outcomes are now a thing of the past. However, we will still continue to disegregate, report, and develop comprehensive plans designed to address the achievement gap. In Iowa, we have recently released the Iowa Report Card, (IRC) which you may recall reading about in my blog a few weeks ago. I would anticipate the Iowa Report Card will continue to be a component of our educational landscape for some time to come. The fact is, if you recall our prior conversation, this was implemented as part of the educational reform law passed by the Iowa General Assembly in 2013 known as House File 215. Since the new ESSA requires states to develop their own accountability systems, the IRC may satisfy this requirement. 

Irregardless of how the IRC is changed, modified, or otherwise evolves in the coming years it will be important for all stakeholders to understand contextually what this and other so called report cards tell us. In its current iteration, 80% of the IRC ranking is derived from how our students perform on the Iowa Assessments. That is one test, given on one day. While we were thrilled with our results and enjoyed the accolades, that ranking does not tell the entire story of a school's success. I recall a colleague sharing recently the pride they had in their elementary school at earning a Blue Ribbon designation from the federal Department of Education. They were invited to Washington, D.C. for the ceremony and savored the attention. A mere two years later that same school, with the same staff found themselves on the federal SINA list!

So about that testing? I can't remember a time as a student that I didn't take the Iowa Tests of Basic Skills. Likewise, I can't remember a time in my career as an educator when I didn't proctor or administer the Iowa Assessments (which by the way are the same thing as the Iowa Tests of Basic Skills--but you already knew that didn't you?). The new ESSA doesn't change the testing scheme all that much. However, the test that we use to measure progress is a story that is yet to be told! After the state legislature fumbled the ball on this point, the state board of education accepted a recommendation to move away from the Iowa Assessments to the Smarter Balance. We are in the rule making process right now and it will remain to be seen if our legislature intervenes to either stop, postpone, or otherwise derail these efforts. I am not opposed to changing the assessment so long as everyone clearly understands that there will be an implementation dip (this test is much more rigorous than the Iowa Assessments) and that an appropriation will be necessary for the administration of the test (it will cost Hudson somewhere in the vicinity of $20,000 to administer). 

Finally then, for those out there that think this new law means the end of the Common Core or any statewide set of highly rigorous standards I say--not so fast. Remember, the rise of the Common Core had nothing to do with the 2002 NCLB law. The Common Core was a state led initiative. Where we got sideways with the Common Core was when states were allowed to pursue a waiver from some sanctions in NCLB. Part of that waiver process required states to adopt the Common Core. The new legislation prohibits the federal government from requiring states to adopt any uniform set of standards, common or otherwise.

For the time being, we are letting the clock run out on NCLB. Next school year will be a transition away from this law and the new ESSA will go into effect during the 2017-2018 school year. Let's hope this law does what it intends to, truly helps every student succeed!


Wednesday, January 20, 2016

The Impact of Not SAVE(ing)

The one cent sales tax for school infrastructure has been around since the late 1990s, and was implemented to help schools address serious deficiencies in buildings. Prior to this sales tax, the primary option available to schools for infrastructure and building was a general obligation bond issue. A general obligation bond issue is a question for voters and passage requires what is known as a super majority (60%) to pass. In many cases a bond issue vote results in an increase to property taxes, so passing bond issues is no easy task.  The one cent sales tax permits school districts to issue revenue bonds against future sales tax collections to address school infrastructure. At it's inception, it was a county-by county referendum that required only a simply majority of voters (50+1). School districts then had to take the extra step of passing what is known as a Revenue Purpose Statement (RPS). Our most recent RPS was passed with 96% voter approval in September of 2011. You can check out our Revenue Purpose statement right here. The point of the RPS is to outline for constituents exactly how the revenue will be invested. 

Because it was a county by county issue an unseen inequity arose. Counties with large population centers likely have more (and larger) retail establishments, thus generating more in sales tax revenue for the citizens and school districts located in that particular county. Naturally, school districts in these counties were the beneficiaries of greater bonding capacity. The legislature addressed this inequity in both 2003 and in 2008. In 2003, a mechanism was designed to even out the revenue between counties, and in 2008 it was changed from a countywide sales tax to a statewide sales tax. This was met with resistance because it was believed that once it became a statewide sales tax, the legislature might at some point re-purpose this revenue away from school district infrastructure, which is contrary to the original question asked of the voters.

This is where we find ourselves today. In 2010, Iowans voted to amend article VII of the state constitution to establish a natural resources trust fund. This fund is designed in part to improve water quality in our state. However, the fund currently doesn't have any money in it. While the amendment stated that 3/8 of one cent be allocated to the fund, it only becomes effective the next time sales tax is increased. The issue became even more prevalent this past spring when the Des Moines water works filed suit in federal court, suing three northern Iowa counties for water pollution. 

Well, there is no appetite for an increase in sales tax, so the governor has suggested diverting a portion of the revenue growth that comes from the school infrastructure sales tax to water quality programs. Currently this sales tax is scheduled to sunset in 2029, and for the last several years we have been advocating for either an extension of the sales tax or a repeal of the sunset. What the governor has proposed is extending the sales tax until 2049 (that is the good news) and capturing a portion of the revenue growth going forward (that is the bad news). Of that growth, the first $10 Million of growth would be allocated to school infrastructure, and the remaining balance of the growth would go to water quality. Additionally and unfortunately, the proposal also begins to capture this revenue immediately, which is before the original sunset expires.

Impact of Governor Branstad's SAVE Proposal
(Graphic courtesy of Iowa Association of School Boards)
As you can see from the chart, the impact of depressed revenue growth is immediate. For the current fiscal year, the per pupil allocation is around $953, which equates to approximately $621,356. If we assume a very conservative 2.83% increase in revenue, by 2029 the per pupil allocation would grow to $1,332. If enrollment remained stable, our SAVE revenue would grow to $868,484. However, under the governor's proposal, by 2029 the per pupil allocation would be $1,191. Again, assuming enrollment remains relatively stable, that would suggest the 2029 revenue stream at about $776,532. That is a difference of $91,952, but that is for that year only! This doesn't consider the compounding effect of this proposal, which tells quite a different story.

Using the same figures from above (2.83% growth and stable enrollment) from this point forward until the expiration of the sales tax, total revenue generated by SAVE will be $9,607,872. But, under the governor's plan that would be reduced by 5% or $480,393.60. That $480,393.60 would go a long way toward the renovation costs of our elementary school.

A special thank you to Shawn Snyder, IASB Financial Support Director for his assistance with these calculations.