The 1995 Legislative Briefing

Summary

Actions to downsize government and increase efficiency dominated the legislative agendas of SREB states in 1995, and schools and colleges in many states found themselves accepting more freedom and flexibility in return for more accountability.

It was also a belt-tightening year across the region. In most states, education budgets grew less than they did one year ago. Increases to elementary and secondary education budgets for 1995-96 are lower in nearly every SREB state, while higher education budget increases are lower in two-thirds of the states. Pay raises for school teachers and college faculty are also generally lower.

Despite the slowdown in the growth of public college and university budgets across the region, tuition increases for in-state students were generally modest. A few states saw increases as high as 7 percent, but more states held tuition steady.

Three SREB states passed charter school bills designed to encourage more educational innovation. Most other states considered such bills or agreed to study the concept further.

Higher education budgets

Higher education budget increases in the SREB states ranged from about 1 percent to 9 percent. Increases of less than 4 percent were approved in Kentucky, Louisiana, Maryland, Oklahoma, South Carolina, and Virginia. Four-year colleges in North Carolina and Tennessee institutions will operate at about last year's funding level. Colleges in Georgia will see the greatest boost at 9 percent. Budgets in Arkansas, Florida, Mississippi, Texas, and West Virginia are up 6 to 8 percent. Funding in Alabama will decline 7.6 percent.

K-12 education budgets

Increases for elementary and secondary schools range from 1 percent to just over 8 percent. Budgets in Alabama, Louisiana, Mississippi, Oklahoma, Tennessee, and West Virginia will grow less than 3 percent in 1995-96. Funding in North Carolina is down slightly, before the effect of a 2 percent pay package for teachers is considered. Florida schools received the largest increase in the region at 8.1 percent, much of it earmarked to fund Florida's estimated large increase in enrollment. Increases in Arkansas, Georgia, and Maryland are 5 to 6 percent. For 1996 and 1997 in Texas, schools will have 11.6 percent more than in the prior biennium. Budgets in Kentucky, South Carolina, and Virginia will grow nearly 4 percent.

Teacher salary trends

Where estimates are available, pay increases for teachers range from 2 percent in North Carolina to 6 percent on the state minimum salary schedule in Georgia. Georgia's increase is the first part of a three-year plan to raise salaries to the national average. South Carolina's 4.2 percent increase is estimated to bring average salaries to its Southeastern average goal. Louisiana teachers will also receive 4.2 percent more-but the increase is a one-time bonus with a $1,000 ceiling. Teachers in some Tennessee school districts will receive increases as part of a court order aimed at addressing inequitable funding.

Legislatures in Alabama, Arkansas, Mississippi, and Texas also addressed state minimum salary schedules. Alabama's new finance system requires districts to adopt a minimum salary schedule that pays at least 95 percent of the amount allocated by the state for teacher salaries. A state salary schedule is being phased in under the new finance program in Arkansas. Mississippi's legislature expanded its minimum schedule by one year to recognize 18 years of experience. Teachers in Texas will now receive "step" increases for as many as 21 years of service (up from 17 years), and future increases in the schedule will be linked to increases per student in state appropriations. (More information is available in SREB's report: Teacher Salary Trends During a Decade of Reform.)

Estimates of Salary and Tuition Increases for 1995-96

NA Not Available - determined locally
* In Louisiana, teachers and faculty will receive one-time salary supplements of 4.2 percent. to a maximum of $1,000. School districts and institutional boards could approve further increases.
+ In Tennessee, no general pay raises were adopted, but the salaries of some teachers will increase due to an equity funding plan.
~ No general salary increases were approved in Texas, but some teachers will receive increases due to changes in the state minimum salary schedule.
# Tuition increases in Texas do not include community colleges.

College faculty salaries

Faculty pay raises range from 2 percent in North Carolina to 6 percent in Georgia. Louisiana faculty will receive the same one-time bonus as teachers (4.2 percent to a maximum of $1,000). The West Virginia legislature funded the third part of a three-year plan to raise faculty salaries by $5,000, with an average $2,000 approved for 1995-96. Faculty in Mississippi community colleges will receive pay raises averaging 7.7 percent as the second part of a three-year effort to increase their salaries to the midpoint between the average salaries of elementary/secondary teachers and university faculty.

To emphasize the importance of teaching, the North Carolina budget directs the University of North Carolina Board of Governors to develop a plan to monitor faculty workload and reward faculty who teach more than a "standard academic load." Colleges and universities are also expected to give primary consideration to teaching when making faculty personnel decisions.

College tuition trends

Average tuition increases for in-state students at four-year colleges in the region range from 3 percent in Tennessee and West Virginia to more than 7 percent in Maryland and Texas. At two-year colleges, students will pay from 2.1 percent more in Kentucky to an average 6.4 percent in Maryland. Students at two-year colleges in Georgia will pay 5 percent less. Tuition will not increase in Florida, Louisiana, and Mississippi, or at two-year colleges in North Carolina.

The resistance to subsidizing college costs for out-of-state students continues to grow across the SREB region. In Georgia, the Board of Regents has adopted a four-year plan to increase tuition for out-of-state students to cover 100 percent of the cost. South Carolina institutions are prohibited from increasing in-state tuition until students from other states are paying the full cost of their education. Tuition for non-resident students in Texas is based on what Texans pay to attend college in the five most populous states in the nation. Some states are looking at pre-paid tuition plans. Both Tennessee and Maryland will study the issue. Virginia has established a trust fund to prepare for the implementation of a tuition prepayment program authorized in 1994.

Higher education governance

Flexibility and governance in higher education were the topics of bills in several SREB states. Beginning in 1997, some colleges in Maryland will be allowed to create positions (subject to a cap) as long as the costs are financed through existing funds. In West Virginia's Senate Bill 547, regulations regarding travel, purchasing, and surplus property will be streamlined. Community colleges were removed from the control of four-year schools, allowing them more flexibility to respond to local needs. A new vice chancellor for community colleges will provide statewide coordination.

Governance issues were discussed in Alabama and are expected to be addressed during the 1996 session. South Carolina restructured its Commission on Higher Education to provide more institutional representation. Membership on the Commission is reduced from 18 to 14. The governor will appoint one member from each of the six congressional districts, three members at large, three from college governing boards, one representing independent college presidents, and one person at large to serve as chairman. In Tennessee, the Select Oversight Committee on Education will study the state's governing structure. The Texas Senate is currently reviewing the governance structure for universities.

Higher education accountability

Legislators in the SREB states continue to show a strong interest in higher education's effectiveness and in methods to increase college and university accountability. In West Virginia, Senate Bill 547 requires colleges and universities to set goals and develop strategic plans, and institutions may offer retirement incentives to support changes. Future funding and tuition increases will be tied to progress. Arkansas institutions may also offer early retirement incentives if the savings will contribute to more efficient operations, and the legislature has established incentives for colleges to merge administrative functions for more efficient management. Beginning this year, some funds will be allocated to Arkansas institutions based on performance.

Tennessee has earmarked funds for performance for a number of years, and in Kentucky, the Council on Higher Education has revised its formula to factor in performance. The Kentucky formula will be used in the 1996-98 biennium.

Other higher education actions

New higher education laws also address the ease with which students can transfer credits and complete their degrees. Oklahoma's legislature expressed its intent that credits earned at a state college be fully accepted at any other higher education institution in the state and directed the Board of Regents to assure that students move smoothly from one level of education to another. The Board of Regents in Louisiana has been charged with devising a plan to ease student transfers between institutions and to develop a common core curriculum and a common course numbering system.

Legislation in Florida, North Carolina, South Carolina, and Tennessee also addresses stronger coordination between two- and four-year colleges. (More information about coordination can be found in the SREB report Helping Students Who Transfer From Two-Year to Four-Year Colleges.) In addition, Florida has adopted new remedial education requirements for students not prepared for college-level work. Students who fail to satisfy requirements of remedial courses twice will have to pay the full cost of further courses. Florida is also limiting baccalaureate degrees to 120 hours. (Many degrees now take more than 120 hours to complete.)

Deregulation in K-12 education

Legislative interest in shifting more authority and accountability to local elementary and secondary educators continued to grow. Legislatures in both Alabama and North Carolina reduced the number of earmarked dollars in the K-12 education budget, giving local districts more flexibility to make spending decisions. In addition, Alabama teachers now have some say in the development of school budgets and in spending for instructional support. North Carolina is allowing schools greater flexibility in setting their performance goals. Reform legislation in Texas reduces state education regulations by an estimated 40 percent. Oklahoma school districts will now be allowed to develop and implement improvement plans and become exempt from statutory regulations.

Textbook purchasing laws are being relaxed in Arkansas, Georgia, and Texas. In Arkansas, districts can either select their own textbooks and instructional materials or choose from the recommended state list. The State Board of Education in Georgia will add to the approved state list any book or instructional aid requested by at least five local superintendents or by at least 20 teachers in 20 different districts who teach related subjects.

In Texas, where textbook decisions influence the whole nation, the State Board of Education will expand its textbook and materials listing (previously, only eight textbooks for each subject could be approved). For the basic curriculum (English, science, mathematics, language arts, and social studies), state funds can be used only for materials approved by the State Board. But the state will pay 70 percent of the cost of materials not on the approved list for the enrichment curriculum (including, for example, health, physical education, fine arts, and economics).

New charter school laws

Legislation authorizing the creation of charter schools was passed in Arkansas, Louisiana, and Texas, and Georgia revamped its two-year old law in an effort to spark more interest among its public schools.

In Arkansas, local schools can petition the State Board of Education for charter school status provided the local board of education is in agreement, two-thirds of the school's certified employees agree, and two-thirds of the parents present at a meeting to decide whether to initiate a petition agree. Louisiana's law allows up to eight school districts to participate in a five-year pilot program. Groups eligible to apply for charters include three or more teachers, 10 or more citizens, a public service organization, a business or corporation, and a Louisiana college or university, all of which must include three or more persons holding current Louisiana teaching certificates.

The Texas legislature authorized the creation of "home rule" school districts and two types of charter schools-campus charters and open-enrollment charters. A home rule district, adopted by local voters, allows the district to operate with a reduced set of state mandates. Campus charters can be approved when a majority of parents and classroom teachers at a school petition the local school board. Up to 20 open-enrollment charters can be granted by the State Board of Education to public or independent colleges, non-profit organizations, or governmental entities.

Georgia amended its 1993 law to extend school charters from three years to up to five years and to allow a majority vote (rather than two-thirds) of faculty, staff, and parents to create a charter school. (No charters were approved under the initial law.) Oklahoma and Virginia will conduct studies of charter schools. Legislation was considered but not passed in Florida, North Carolina, and South Carolina.

K-12 administrative costs

The trend toward deregulation has legislatures looking at administrative spending for elementary and secondary schools. To curb administrative spending and send more money to the classroom, Georgia's legislature changed the school finance formula to reduce allocations for district administration. Most of the $15.6 million saved will be used for school-based technology specialists. An effort in Florida to limit the cost of local administration did not withstand a court challenge. North Carolina combined separate allocations for local district administration into one funding category, which was then reduced by 5 percent. The legislature also reduced funding to the Department of Public Instruction according to a plan developed by the State Board of Education in response to earlier legislation. The plan will shrink the Department's staff and budget by 40 percent, and it includes a provision to transfer funds for technical assistance to local districts to allow more flexibility. Virginia cut the size of state government by providing a severance package to 5,500 state employees who volunteered to give up their jobs.

Public school accountability

Student performance and school accountability received significant legislative attention this year, including actions to strengthen school reporting requirements. (SREB's latest study of school accountability reporting, Linking Education Report Cards and Local School Improvement, describes state actions to sharpen the focus on school performance.)

The Alabama legislature passed a bill that calls for district and school report cards, sets a core curriculum and high school graduation requirements, and establishes assistance programs for schools and students performing below grade level. Georgia high school graduates who show they are competent in core subjects will receive "warranties." (A 1990 West Virginia law provides for similar certificates of proficiency.) A new law in Florida requires schools to offer a college placement exam to high school sophomores so that deficiencies can be identified before high school graduation. Students who have not passed the test by the time they enter college must take remedial courses.

Performance incentives will be offered in Texas, North Carolina, and Florida. In Texas, principals of successful schools will receive rewards of $5,000 to $10,000 beginning in 1997. North Carolina is creating a new school-based incentive pilot program for schools exceeding State Board of Education goals. Rewards are provided in Florida for vocational programs that place students in high-need occupations. Florida will also develop a new system of professional development for teachers to improve student achievement.

Public school funding

Several states addressed major public school finance and facility funding issues during their 1995 sessions. In response to court decisions, school finance laws were passed in Alabama and Arkansas.

South Carolina passed a property tax relief plan that is estimated to exempt most homes from the school-operations portion of property taxes. Virginia will study its reliance on property tax. The Alabama legislature has approved a bond issue that will provide about $177 million to upgrade public school facilities. Texas created a new equalized school facility funding program, and in South Carolina, fees from a low-level nuclear waste site will be earmarked for school building needs. A North Carolina legislative committee is currently studying facility issues.

Help for at-risk students

Several states fashioned new programs aimed at addressing the special needs of at-risk students. Georgia and Virginia are expanding their pre-kindergarten programs for at-risk four-year-olds, and Georgia's program will now serve all four-year-olds. Arkansas is expanding its summer school program for students performing below grade level. Legislation in Alabama establishes assistance programs for students performing below grade level and for schools and districts where a majority of students are below grade level. North Carolina combined a number of programs that serve at-risk students into one funding category, giving more flexibility to local districts. Texas education reform requires districts to create alternative schools, and Maryland is creating its second alternative education center for violent students.

K-12 personnel policies

Significant policy changes will affect teachers and administrators in Alabama, Arkansas, Georgia, and North Carolina. In Georgia, newly hired administrators will no longer receive continuing contracts. Arkansas will run criminal background checks on first-time applicants for teacher or administrator licenses, and North Carolina districts will adopt policies providing for background checks on potential employees.

North Carolina is continuing its support of teachers seeking certification through the National Board for Professional Teaching Standards and has allocated funds for teacher release time, examination fees, and annual bonuses for successful teachers. Alabama education majors will now be required to pass a nationally- normed teacher education test to graduate. Out-of-state graduates who plan to teach in Alabama will have to pass the same test to become certified.

For further information please contact Gale Gaines, gale.gaines@sreb.org.