The 1996 Legislative Briefing

Summary

In 1996 regular sessions, SREB state legislatures continued to show interest in providing elementary and secondary school boards more flexibility for making decisions affecting their students, but paired new freedoms with increased accountability. Most budget increases have been designated for specific purposes (such as salary increases, enrollment growth or technology purchases) rather than for providing general operating increases for schools and colleges.

Last year's belt-tightening in education budgets eased a bit. K-12 and higher education budget increases were higher than 1996's in about two-thirds of the SREB states. Double-digit increases will be seen by Mississippi community colleges and by colleges and universities in Oklahoma. The larger K-12 increases are in Florida (8.2 percent) and Oklahoma (8.1 percent).

The brighter budget picture includes lower college tuition increases, except in Florida and Georgia. In Florida, tuition did not rise in 1996, but 1997 students will pay 7 percent more. Last year, Georgia raised tuition for four-year college students by 5 percent while reducing fees for two-year students by the same percentage. In 1996-97, tuition will increase at both two- and four-year colleges by 6 percent.

Three more states have passed charter school bills designed to encourage innovation in schools, bringing the number of SREB states allowing charters to seven. In the four states with charter laws already on the books, proposals have been approved in three. Applications are in progress in the fourth.

K-12 Education Budgets

General fund increases for elementary and secondary schools ranged from about 1 percent to more than 8 percent. Schools in Florida and Oklahoma will see increases topping 8 percent, the largest in the region. Increases of more than 7 percent were approved in Alabama, North Carolina and Tennessee. In Arkansas, Georgia, Louisiana, Maryland and South Carolina, schools will operate with 5 to 7 percent more. Budgets will grow less than 4.5 percent in Kentucky, Mississippi, Texas and West Virginia. Virginia schools will received an 11 percent increase for the 1996-98 biennium.

Higher education budgets

Higher education general fund budget increases ranged from about 1 percent to more than 13 percent. The greatest budget growth was approved for community colleges in Mississippi (13.3 percent) and for colleges and universities in Oklahoma (12.6 percent). Oklahoma's increase is the largest ever. Florida and Louisiana will see boosts in funding exceeding 9 percent. Georgia, North Carolina and West Virginia colleges and universities will enjoy moderate increases of 6.1 to 7.6 percent, but higher education budgets will grow less than 4 percent in Alabama, Arkansas, Kentucky, Maryland, South Carolina, Tennessee, Texas and at four- year institutions in Mississippi. In Virginia, the biennial increase is 11.7 percent.

Teacher salary trends

Where information is available, increases in teacher salaries range from 1.75 percent in Virginia to 6 percent in Georgia though most increases are between 3 to 4 percent. North Carolina teachers will see raises averaging 5.5 percent. After gaining increases averaging 3.4 percent last year, teachers in Mississippi will not receive raises in 1996-97. West Virginia teachers will receive $500 plus $25 for each year of experience. This will average just under 3 percent.

New salary goals set by governors in several SREB states have had an impact on raises approved for 1996- 97. In Georgia, the governor wants average teacher salaries to reach the national average by 1998-99. Substantial pay raises over the past two years moved the state from 86 percent of the national average in 1994 to what is currently estimated to be nearly 91 percent of the national figure. Georgia's position is expected to continue improving with estimated pay raises of 6 percent for 1997. The governor of North Carolina has also set the national average as the goal for salaries and he wants the goal met by 2001. Louisiana's governor has set the goal of reaching the regional average salary by 1998-99 for that state's teachers.

More information on teacher salaries is included in SREB Teacher Salaries: Update for 1995-96 and Estimated Increases for 1997.

College faculty salaries

Salary increases for faculty ranged from 1.25 percent in Maryland to an estimated 10 to 12 percent in Louisiana. This big increase is designed to meet the governor's goal of moving faculty salaries to the regional average. Raises averaging 5 to 6 percent are expected in Georgia, North Carolina, Oklahoma and Virginia. Faculty in Arkansas, Florida, South Carolina, Tennessee and West Virginia and those in two-year colleges in Alabama received salary increases of 3 to 4.5 percent. In Kentucky, raises for faculty at two- year colleges will average 9 percent; increases at four- year colleges range from 2.6 to 5 percent. No pay raises are earmarked for faculty at four-year colleges in Mississippi, though two-year college faculty will see increases of 2 percent (following a 7.7 percent increase in 1995-96) as part of the effort to raise salaries to the mid-point between the average teacher salary and the average four-year college faculty salary.

College tuition

In most SREB states, estimates of tuition increases for in-state undergraduates are either lower than or the same as those approved one year ago. Increases range from an average of 1.4 percent in Arkansas to 7 percent in Florida. Tuition will not go up in Mississippi, Oklahoma and Virginia or at two-year colleges in North Carolina. Tuition for students at University of North Carolina campuses will rise $28 to $38. In Alabama, where governing boards at each college approve increases, students will pay from 2 to 17 percent more.

Actions to help parents meet the future cost of college were taken in Maryland, Mississippi, North Carolina and Tennessee. In North Carolina, legislation created the Parental Savings Trust Fund to allow parents to save funds for the future postsecondary education expenses of their children. Pre-paid tuition plans were addressed in Maryland, Mississippi and Tennessee. Maryland has established a task force on the Maryland Prepaid Tuition Savings Program to develop an implementation plan for the advanced payment of undergraduate tuition. Following studies authorized in 1995, pre-paid programs were approved in Mississippi and Tennessee. Initially, Tennessee enacted a guaranteed tuition program in 1987 that was replaced by a savings bond program in 1989. Legislatures in most other SREB states authorized the creation of either tuition savings or pre-paid tuition programs between 1987 and 1989. More recent pre-paid tuition plans were passed in 1995 in Texas and Virginia; both had already authorized savings programs in 1989.

Higher education efficiency, effectiveness and accountability

Bills addressing efficiency, effectiveness and accountability in higher education were passed in Kentucky, South Carolina, Virginia and West Virginia. In Kentucky, a new task force will review a number of areas including the Council on Higher Education's strategic plan, issues relating to common course numbering and the transferability of credits, the funding formula, performance funding and governance. In addition, a governor's commission will review the efficient and effective delivery of academic programs, improved administrative efficiency and the use of new technologies. The State Council of Higher Education for Virginia can now require colleges and universities to discontinue ineffective or duplicative programs. The Council is also directed to develop educational programs for institutional governing boards, which new board members may be required to attend.

Legislation in West Virginia fine-tunes the provisions of SB 547 passed last year that called for each institutional governing board to set goals and develop a strategic plan to refocus its mission and restructure its resources. It also tied increased funding to progress toward meeting the goals and benchmarks in the plan. The 1996 bill gives the Secretary of Education and the Arts final approval of the initial strategic plans and authority for awarding funding increases based on progress.

Accountability legislation that grew out of a commission created by the South Carolina legislature changes the structure of the Commission on Higher Education and gives it responsibility for a coordinated, efficient, and responsive higher education system. In addition, the law outlines factors critical for success of the higher education system including mission, classroom and faculty quality, administrative efficiency, entrance requirements, achievement of graduates and research funding. By fall 2000, the commission is to develop and implement a performance- based funding formula using acceptable performance standards with specified indicators. South Carolina is the first state in the nation to call for institutional funding to be based entirely on performance.

Performance funding in higher education has been a topic of discussion over the past few years. Tennessee was the first SREB state to tie some university funding to performance. Arkansas and Kentucky have also developed performance funding plans.

State aid to independent colleges

Financial aid for independent college students came up in several states. In Georgia, the HOPE scholarship program has been providing $1,500 grants to students attending independent colleges in addition to $1,000 Tuition Equalization Grants (TEG) from general funds, however, students have not been subject to academic eligibility requirements. High school seniors who graduated in 1996 and attend independent colleges must now meet the eligibility requirements to receive $3,000 grants in addition to the $1,000 general fund TEG. The HOPE scholarship program also pays public college tuition and required fees and provides a book allowance for high school graduates who meet and maintain academic eligibility requirements.

Independent college students in Florida, North Carolina and Virginia will see their non-need-based grants increase in 1997. Florida students will be eligible for grants of $1,800 (up from $1,200) and in Virginia, grants will increase from $1,500 to $1,750 in 1997 and to $2,000 in 1998. North Carolina grants will increase $50 to total $1,300. In addition, the funds institutions receive for need-based aid will increase $50 per full-time student to $600; actual grant awards to students are set by each college. In Maryland, independent colleges receive state aid based on an enrollment-driven formula. In 1997, funds for private colleges will reach $31 million, an increase of 9.4 percent.

South Carolina has begun earmarking part of the proceeds from a low-level nuclear waste site for student financial aid. In 1996-97, 85 percent of these funds are designated for need-based aid and of that, private college students will receive 17 percent, or $2.85 million. In addition, $885,000 is available to students at independent colleges for financial assistance not based on need. South Carolina has had an ongoing grant program that provides nearly $18 million in general funds to needy students at private colleges.

Education for young children

Actions relating to early childhood issues were the focus in several states. Georgia continues to expand its voluntary pre-kindergarten program which is available to all four-year-olds. Early childhood services, including the pre-kindergarten and child-care licensing programs, will be coordinated by the new Office of School Readiness. Virginia also continues its expansion of pre-kindergarten services. During 1996-97, the program will accommodate 60 percent (previously 30 percent) of eligible children who are not served by programs such as Head Start. Legislation authorized the department of education in Tennessee to establish pilot programs for community-based early childhood education and pre-kindergarten. The South Carolina legislature allocated funds to expand the existing half-day kindergarten to full-day in districts wishing to expand their program. Attendance will remain voluntary and parents can choose to have their children attend full- day, half-day or not at all.

More information on school readiness can be found in SREB's Readiness for School: The Early Childhood Challenge, Getting Schools Ready for Children: The Other Side of the Readiness Goal, and Getting Elementary Schools Ready for Children: Reading First.

Efforts to reduce class-sizes in the lower grades are underway in Florida, Georgia, North Carolina and Virginia. As a part of its educational opportunity initiative, the legislature in Virginia allocated about $52 million in each year of the 1996-98 biennium (up from $40 million) to reduce class sizes in grades K through 3. North Carolina has already phased in class-size reductions in kindergarten and first grades. In 1996-97, the ratio of students to teachers in second grade classes will decrease from 26 students per teacher to 23. In Georgia, the legislature supported the governor's plan to redirect existing funds to higher priorities. As part of this shift, funds for K-3 teacher aides were eliminated and formula funding was increased to allow for the reduction of class sizes from the current 20 students to 15 in kindergarten and from 23 students to 17 in grades 1 through 3. Local districts, however, have flexibility to determine how to use these funds. For example, they may be used for class-size reductions, to hire aides or for other program-related activities. In Florida, an appropriation of $100 million is available for class- size reductions in lower grades with priority given to kindergarten and first grades.

Standards and accountability in K-12 education

Standards and increased performance expectations were topics of legislation in a number of states. Georgia raised its academic requirements for students seeking a HOPE scholarship. Instead of an overall B average, students will have to graduate with B averages in their core subjects. In addition, students attending independent colleges will also have to meet eligibility requirements in order to receive the lottery-funded portion of their award. In Virginia, funds allocated will provide teacher training and curriculum development for new state standards in English, math, science and history/social studies. West Virginia legislation created the Jobs Through Education program designed to better prepare elementary and secondary students for jobs and further study. The program calls for rigorous basic skills development and computer education, raised academic expectations, and opportunities for students to explore career options. Information on standards for students is available in SREB's High School Graduation Standards: What We Expect and What We Get and Setting Education Standards High Enough.

School accountability remains a hot topic in state capitols. As a part of its accountability program, Maryland authorized performance recognition awards for schools showing substantial improvement toward meeting goals. In Louisiana, funds were allocated for the development of a school-based accountability plan for consideration during the 1997 session. Kentucky continued funding for its school rewards program that is tied to the provisions of 1990 education reform legislation. Schools are eligible to receive rewards by exceeding expectations for progress toward long-term goals. Georgia, South Carolina, and Tennessee are continuing existing programs that provide rewards for improved performance. In 1997, Texas will implement a reward program for principals that was approved in 1995.

Legislation passed in North Carolina will implement the state board of education's ABC plan to establish an accountability model for public schools that will improve student performance and increase local flexibility and control. The state board will develop procedures setting annual goals for each school and measuring improvements, establishing a program to reward certified personnel in schools exceeding expected improvements, providing assistance teams to schools not meeting expectations, and allowing the state board to intervene in the operation of low- performing schools and districts. A number of statutory changes will also support local flexibility.

More information on report cards and school accountability programs is included in SREB's Linking Education Report Cards and Local School Improvement.

Districts failing to meet fiscal and academic expectations in Mississippi can now be taken over if they are identified as being in a state of emergency by the accreditation commission and state board of education. The state board can appoint a conservator who would have authority over financial, personnel and management decisions. Alabama also has a fiscal bankruptcy law on the books. New legislation allows the state superintendent to waive penalties for over spending if a district makes a substantial effort to remove the deficit and develops a plan to correct the problem. In Florida, the state board of education now has authority to intervene in the operation of school districts where one or more schools fail to make adequate progress in student achievement over a three- year period. The state board will also be allowed to withhold state funds from districts that fail to comply with state-ordered actions to improve low-performing schools.

Information on state performance on progress toward SREB educational goals is available in 1996 Educational Benchmarks.

Charter school update

Florida, North Carolina and South Carolina join four other SREB states (Arkansas, Georgia, Louisiana and Texas) in authorizing the creation of charter schools. In Florida and South Carolina, local school boards will act on charter applications made by existing schools or by individuals, groups of persons or non-profit organizations. In North Carolina, as in Florida and South Carolina, any person, group of persons or non- profit organization can apply for a charter, but they will be awarded by local boards of education, the state board of education or by University of North Carolina institutions. Both Florida and North Carolina have limited the number of charters that can be awarded-charters in Florida will not exceed 478; in North Carolina, the maximum will be 100. A small number of charter schools are underway in Georgia, Louisiana, and Texas. Charter applications are pending in Arkansas.

National certification for teachers

Teachers obtaining certification through the National Board for Professional Teaching Standards will receive assistance or bonuses, or both, in several states. In Alabama, the state will pay national certification fees for teachers. Georgia teachers achieving certification will receive a one-time 5 percent bonus on the state- paid portion of their salaries and will be reimbursed for the fees. Teachers acquiring certification in Mississippi will receive $3,000 salary supplements plus $2,000 to cover the cost of the certification process. Funds were earmarked in North Carolina to pay assessment fees for teachers as well as bonuses for those achieving national certification. Virginia's allocation of $150,000 will provide $1,000 (to be matched with $1,000 in local funds) for 75 teachers in each year of the biennium. The funds will pay the cost of applying for national board certification. In Kentucky, nationally certified teachers will be eligible for the highest rank in the state's three- tiered licensing system, which carries a $2,000 bonus.

Other K-12 education issues

States continue to focus on school technology issues. Georgia provides technology specialists for elementary and secondary schools and directs lottery funds toward equipment and upgrading schools for the use of technology. Legislation this year allows lottery funds to be used for teacher training as well. A new five- year effort in Maryland will provide schools with access to on-line computer resources. Virginia is continuing its six-year plan to expand student access to technology. West Virginia funded the eighth year of a 10-year plan to put computers in all elementary classrooms. In addition a new multi-year effort will increase the computer skills of students in 7th through 12th grades to better prepare them for entering the workforce. In South Carolina, schools will be linked to the Internet.

Disruptive students and safety in schools were subjects of legislation in Georgia, Florida, Maryland, Tennessee, Virginia and West Virginia. Legislation in Maryland called for the creation of a state code of conduct, while local school boards in Tennessee are to develop codes of conduct for all students. Tennessee's local boards are also encouraged to adopt zero-tolerance policies relating to violence, drugs or dangerous weapons. Alternative education programs will be created or expanded in Maryland, Tennessee, Virginia and West Virginia. In Georgia, $1.1 million was appropriated for the construction of alternative education facilities. To reduce classroom disruptions, teachers in Florida and Maryland now have the right to refuse to readmit disruptive students to their classes.

State by state summaries of final legislative actions for the SREB region are available upon request. All publications listed in this Legislative Briefing can be obtained by contacting the Southern Regional Education Board.

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