The 1998 Legislative Briefing

Summary

Regular sessions have concluded across the region, and states are well into the 1998-99 fiscal year. Growth in state general-fund budgets ranges from about 2 percent to nearly 10 percent, with the larger increases in Florida, Maryland, North Carolina and Oklahoma. South Carolina is reporting a decline; however, budget totals do not include funds sent to local governments to cover the state plan for property-tax relief that was adopted in 1995.

This was a big year again for legislative actions in the areas of school accountability and early-grades education. Ten of 16 SREB states now have charter school laws on the books. This is up from four states in 1995. Several states are continuing multiyear efforts to meet teacher salary goals and to incorporate technology into the classroom. School safety and violence prevention continue to be of concern across the region.

Higher education will be the focus of new studies in at least four states. With the addition of three state programs authorized in 1998, students in six SREB states can attend college on scholarships based solely on merit. In addition, actions in the three states with existing programs expanded merit-scholarship offerings.

K-12 education budgets

Budget increases for elementary and secondary schools range from 1.7 percent to nearly 12 percent. Increases below 5 percent were adopted in Alabama, Arkansas, Delaware, Kentucky, North Carolina and West Virginia; larger increases were approved in Florida (11.6 percent) and Georgia (8.1 percent). Schools in Louisiana, Maryland, Mississippi, Oklahoma, South Carolina, Tennessee and Virginia will see their budgets grow between 5 percent and 7 percent. The biennial increase in Texas stands at 7.5 percent.

Higher education budgets

General-fund budget increases for higher education range from 1.8 percent to more than 13 percent. The greatest increases in the region were approved in Kentucky (13.2 percent), Virginia (12.6 percent), Florida for four-year colleges (12.4 percent) and Mississippi (8.7 percent). Higher education budgets will grow less than 5 percent in Louisiana, South Carolina, Tennessee and West Virginia. Increases between 5 percent and 8 percent will be seen in Alabama, Arkansas, Delaware, Georgia, Maryland, North Carolina and Oklahoma and in Florida for two-year colleges. Texas reports a biennial increase of 9.8 percent.

Teacher salary trends

Where information is available, pay raises for teachers range from 2 percent to 8.5 percent. Alabama leads the region with its 8.5 percent pay raise. Allocations in Georgia and North Carolina continue to support goals in those states to reach the national average salary for teachers. In Georgia, lawmakers provided 6 percent on the state minimum-salary schedule. The average percentage of actual raises likely will be somewhat lower because of the number of teachers who are paid above the state minimum. In North Carolina, changes to the state minimum-salary schedule will result in teacher raises ranging from 4.4 percent to 11 percent. Additional funds for reform efforts, such as for mentor teachers, will increase the raises further.

Louisiana is continuing its effort to reach the Southeastern average salary for teachers. Raises averaging about $1,000 will provide increases of $850 to $1,500, with the larger ones going to teachers in low-wealth districts. Raises of 2 percent to 3 percent were approved in Delaware, Kentucky, Mississippi, South Carolina, Tennessee and Virginia. Teachers in West Virginia will receive $756. Estimates are not available at this time for pay raises in Arkansas, Florida, Maryland, Oklahoma and Texas.

Additional information on teacher salaries in SREB states is available in the SREB’s “Focus on Teacher Salaries.”

Faculty pay raises

Estimated pay raises for faculty vary by state but also by institution within states. Average raises by state range from 2.5 percent in South Carolina to 6 percent in Georgia. Raises for faculty in Florida and Mississippi are expected to average 3 percent, and West Virginia faculty will receive 4.8 percent raises. Arkansas reports a statewide average pay increase of 4.9 percent, but raises at individual institutions range from an average of 2 percent to 8 percent. Oklahoma’s statewide increase averages 4 percent, and institutional increases average 1.1 percent to 6.6 percent. In Virginia, the state average is 5.3 percent and institutional averages fall between 3.6 percent and 12.5 percent.

Maryland, North Carolina and Tennessee are giving raises plus one-time bonuses. In Maryland, pay will increase by an average of 1.25 percent and all faculty will receive a bonus of $1,275. Faculty in North Carolina will see average raises of 3 percent, plus a 1 percent bonus. Tennessee faculty will receive 2 percent raises, plus bonuses of $150 to $1,250, depending on longevity.

Average raises in Delaware range by institution from 3 percent to 4 percent. At Kentucky institutions, pay hikes vary from 3 percent to 5.4 percent. Estimates are not currently available for four-year college faculty in Alabama (those at two-year colleges will receive 8.5 percent) or for faculty in Louisiana or Texas.

Tuition increases

Tuition increases for in-state undergraduates vary widely across the region but are lower in about half of the SREB states than one year ago. Increases in states where a uniform hike was adopted range from 3 percent in Georgia to 10 percent in four-year colleges in Mississippi. Mississippi’s increase is the first in six years. Students in Florida and at four-year colleges in Texas will pay 7 percent and 5.9 percent more, respectively. Information on tuition at two-year colleges in Texas is not available. South Carolina’s colleges are limited to the 3 percent Higher Education Price Index.

Kentucky and North Carolina increases vary by the level of the institution. In Kentucky, community colleges will raise tuition by 3.2 percent, while at master’s colleges and doctoral institutions students will see increases of 6.7 percent and 11.7 percent, respectively. Tuition at two-year colleges in North Carolina will not increase, but four-year colleges are authorized to raise fees by 2 percent.

In Tennessee, students at two-year colleges will pay 4 percent more, while those attending the University of Memphis and institutions in the University of Tennessee System will pay 6 percent more. Increases at all other public colleges will be 5 percent.

Delaware’s three higher-education institutions also will raise tuition: Delaware State by 12.2 percent; Delaware Technical and Community College by 4.5 percent; and the University of Delaware by 3.2 percent. In Arkansas, institutional increases range from 2.3 percent to 19 percent, but 16 colleges report no change.

Average statewide increases are reported in Alabama (at four-year colleges), Maryland and West Virginia and at community colleges in Mississippi. Four-year colleges in Alabama have approved increases averaging 5.1 percent. Changes at individual institutions range from a decrease of 2 percent to a hike of 18.1 percent. Information on increases at Alabama’s two-year colleges is not yet available. In Maryland, increases vary by institution but average 2.3 percent at community colleges and 4 percent at four-year colleges.

West Virginia’s tuition increases average 3.25 percent. An additional 3 percent increase at West Virginia University will support technology improvements, and an additional 4 percent at Marshall University will support library and capital improvements. Two-year colleges in Mississippi report increases ranging from 4 percent to 11.1 percent. The increase averages only 1.25 percent because tuition at 12 of the 15 institutions will remain unchanged.

No increases were approved in Louisiana, Oklahoma and Virginia, though colleges in Virginia can assess up to 1 percent of tuition and required fees for a new technology fee.

Estimates of Salary and Tuition Increases for 1998-99

Education for young children

Initiatives to assist students in the early grades with reading skills continue throughout the region. Florida is expanding its early-grades reading initiative by increasing funding to $10 million (from $2.5 million). In Georgia, the new Reading First program is under way with $9.3 million. (Georgia is also providing after-school programs to help middle school students who need assistance with reading.) Local districts in Mississippi now will be required to develop reading sufficiency plans to ensure that students acquire grade-level reading skills. West Virginia created West Virginia READS to ensure that all students read at grade level by the end of fourth grade.

Virginia is continuing for one more year its 1-year-old reading initiative for first-graders. The program will be eliminated for all but the smallest school districts next year because all elementary schools will be allowed to hire additional teachers in order to reduce class sizes. The budget includes funds for more than 2,000 new teachers (including 600 teachers specifically for kindergarten through third grade), in addition to new teaching positions to keep pace with enrollment increases.

Delaware, Florida, Maryland and South Carolina also addressed class-size reductions in lower grades. In Delaware legislation calls for a reduction in the student-teacher ratio over three years in kindergarten through third grade from the current 19 students per teacher to 15 students per teacher. The $6.5 million included in the budget will lower the student-teacher ratio to an average of 17.4 students per teacher in 1998-99.

Florida is continuing its multiyear class-size reduction effort with legislation calling for a student-teacher ratio of 20 students for each teacher in kindergarten through third grade and 15 students per teacher in low-performing schools. This lower ratio must be achieved in one school in each district to study its effectiveness. Maryland is funding a study on issues related to reduced class sizes; the study is scheduled to be complete in December 1999. Included in the funding for the South Carolina Education Accountability Act of 1998 is $19.6 million to reduce class sizes in kindergarten through third grade. Priority for these funds will go to schools in low-performing districts.

To better prepare children for success in school, Oklahoma and Virginia created preschool programs. Oklahoma’s program will serve 4-year-olds, and in Virginia 4-year-olds and 5-year-olds not yet eligible for kindergarten will be able to attend half-day programs.

More information is available on early-grades reading programs in the following SREB reports: Legislation Focuses on Reading; North Carolina Strives for Balanced Reading Instruction; and The Texas Reading Initiative: Mobilizing Resources for Literacy.

More actions on charter schools

Ten SREB states now have charter school laws on the books. Georgia, Florida, Louisiana, Maryland and Virginia acted to study, create or expand charter schools.

Legislation amending Georgia law will allow private individuals, private organizations and state or local public agencies to seek charters from local school boards. Previously, only existing public schools could seek charter status. Also, the state Board of Education is now able to grant charters, provided the local district in which the school is to be located has given approval.

Both Florida and Louisiana are providing special financial assistance to charter schools in addition to regular per-student operating funds. In Florida, the Legislature put aside $5 million for facilities for existing charter schools that are not being provided space by their local school boards. The law also increases the number of charters that can be authorized and expands initial charters and renewals to five years (previously, up to three years). In addition, charter schools in the workplace are authorized in order to increase business partnerships with education, reduce overcrowding in schools and offset the high cost of educational facilities. Under this program, businesses providing a school facility for the children of their employees may gain charter status and any part of the facility used for a public charter school will be exempt from ad valorem taxes.

In Louisiana, the Legislature appropriated $4 million to assist charter schools. Of this amount, $1.3 million is available for start-up loans to new charter schools. The remaining $2.7 million will be used to provide the state average per-student operating funds to state-approved charters.

A Maryland task force will study the feasibility of establishing charter schools and will recommend legislation for consideration during the 1999 legislative
session.

Virginia became the 10th SREB state to authorize the creation of charter schools. Local school boards can award charters to new schools or to existing schools, with priority given to those serving at-risk students. The number of charters that a school board can grant cannot exceed 10 percent of the district’s total number of schools, or two charters, whichever is greater. The budget includes $2.5 million in each year of the biennium for the effort.

K-12 standards, performance and accountability

School accountability remains one of the hottest topics addressed by state legislatures. Delaware and South Carolina passed comprehensive accountability legislation. The Delaware law is designed to reduce the promotion of students who do not meet required performance levels on state assessments, to reward achievement and to hold students, schools and districts accountable for educational achievement.

In South Carolina, the Education Accountability Act of 1998 uses three strategies to improve teaching and learning: high academic standards and assessment of those standards; accountability; and assistance to schools and districts. Students who do not perform at expected levels and fail to improve will not be promoted to the next grade. The state’s assessments will be used to rate schools both by their performance and by their improvement. Rewards will go to schools with high performance or with exceptional rates of improvement, and assistance will be provided to troubled schools.

Maryland is initiating the School Accountability Funding for Excellence Program that provides state funding to education programs serving at-risk students. Districts will develop comprehensive plans outlining ways to increase the performance of these students. This new effort is in addition to the ongoing Maryland School Performance Program.

In West Virginia, the newly created state Board of Education Office of Education Performance Audits will determine school and district staff-development needs; conduct on-site school and district reviews; and identify exemplary schools, school systems and practices that improve educational performance. The state board will recommend to the Legislature by January 1999 an accountability program to ensure a thorough, efficient system of schools.

Several states revised their programs. In Virginia, districts now are required to report to the state Department of Education the number of students who fail standardized tests and how many of these students are in remedial programs. Students who do not pass the state exams will attend summer school or some other remedial program. The department also is to provide assistance to low-performing schools, and local boards will develop corrective action plans for schools where fewer than 70 percent of the students pass state tests.

The new Virginia Educational Excellence Incentive Reward Program will award incentive grants to public schools that meet performance criteria established by the state Board of Education. The program also will provide nonmonetary awards to recognize exemplary performance by teachers, administrators and students. Florida budgeted $5.4 million for a new reward program that will recognize high-performing and improving schools.

Kentucky legislators changed the state assessment and accountability program adopted in the 1990 Kentucky Education Reform Act. The new Education Assessment and Accountability Review Subcommittee (part of the Legislative Research Commission) will review regulations on assessment and accountability programs. A new testing program will be developed to provide individual student results. A new formula will determine which schools qualify for rewards and for targeted assistance. The law eliminates the most severe sanctions in the 1990 reform and focuses on providing additional assistance to schools that are not
making adequate progress in student achievement.

Louisiana is continuing to develop and implement its 1997 initiative that calls for a statewide system of accountability with incentives for high performance and corrective actions. The 1998-99 budget provides $7.5 million for the effort (up from $3.7 million) and $2 million in new funds to help students who do not
do well enough on new state tests to be promoted to the next grade.

Legislation in Mississippi strengthens the Department of Education’s authority to work with low-performing districts. The department is charged with developing a corrective action plan with the school after a complete analysis of student test data, student grades, attendance reports, dropout data and other relevant information.

More on accountability programs can be found in the SREB’s Getting Results: A Fresh Look at School Accountability. Other SREB reports on accountability, including Accountability in the 1990s: Holding Schools Responsible for Student Achievement, are also available.

States focus on safe schools

Kentucky, Oklahoma, South Carolina and Tennessee approved new school-safety legislation during 1998 sessions. In Kentucky, $5 million is available in 1999 and $10 million in 2000 to create a center at a public university that will study school safety and support pilot projects designed to reduce school violence. The law requires the Department of Education to work with the center and other agencies to develop statewide guidelines for student discipline and to recommend ways to reduce the dropout rate, improve the learning environment and increase student achievement. Schools and districts must prepare safety plans that include a code of student conduct and placement options for violent students.

Oklahoma legislation prohibits anyone who has been convicted of a felony or sex offense from direct or indirect employment with a school or district. Legislation in South Carolina created the position of school resource officer and expanded the number of offenses against school personnel that must be reported to school officials.

The Tennessee School Safety Act of 1998 set aside $10 million for grants to school districts to implement safety initiatives. To be eligible, a district must submit a plan that addresses at least one of several areas: innovative violence-prevention programs; conflict resolution; behavior management; improved school security; peer mediation; or training for school employees.

More information on school safety is available in “Focus on SREB State Legislative Actions Related to School Safety” and “Focus on School Safety and Violence Prevention.”

Actions affecting teachers

Most SREB states continue to encourage teachers to seek national certification through the National Board for Professional Teaching Standards. Several states — including Alabama, Florida, Mississippi and Tennessee — have expanded or are initiating support (assistance, bonuses or both) for teachers seeking national certification. Alabama teachers will receive $1,500 annual bonuses for meeting national certification requirements, and Tennessee teachers will be reimbursed for the participation fees.

In Florida, teachers will be eligible to receive 90 percent of the fees associated with seeking certification and $150 toward developing the required portfolio. Nationally certified teachers will receive annual bonuses of 10 percent of the state’s average salary for teachers. Another 10 percent is available for nationally certified teachers who mentor other teachers.

Mississippi teachers who earn national certification will receive a salary supplement of $6,000 plus funds to pay the cost of seeking certification. Legislation also addressed teacher shortages in some areas of the state. The Mississippi Critical Teacher Shortage Act of 1998 creates new financial-assistance programs for prospective teachers and administrators and a teacher recruitment center. To entice teachers into shortage areas, it authorizes the payment of up to $1,000 for moving expenses and forgivable loans of up to $6,000 (requiring three years of service) for teachers who buy a home.

North Carolina legislation allows local boards of education to employ for up to one year teachers who are certified in other states and individuals with at least one year of experience teaching at the college level. These provisionally certified teachers must pass the state’s certification exams within one year. Legislators revised a 1997 law that called for competency testing for all certified staff in low-performing schools. Testing now will be required for staff only as recommended by the principal or assistance team (sent to the school to help improve student performance) if it is determined that a lack of knowledge has contributed to the person’s poor performance.

Technology in the schools

Several SREB states are continuing efforts to incorporate the use of technology in elementary and secondary schools. West Virginia has funded the final step in a 10-year effort to put computers in every elementary classroom and the third year of an initiative to increase the computer skills of secondary students. Maryland is in the third year of a five-year plan to provide schools with online computer resources.

Virginia’s six-year plan to expand student access to technology continues. During 1998-99, an independent consulting group will study the technology that school districts have to see if any adjustments are needed in order to comply with the six-year plan. The commonwealth has spent more than $225 million for technology initiatives since 1988, and another $50 million is available for 1999-2000.

Louisiana is using $24 million in one-time funds for classroom technology and another $2 million for technology-based alternative schools for disruptive students. These funds will provide start-up grants for alternative programs that require local matching funds. The Rainy Day Fund in Oklahoma will provide $8.2 million to install interactive video in classrooms and the same amount for computer hardware, software and other technology.

Financial assistance for college students

SREB states continue to develop merit scholarship programs for students attending colleges in their home states. Kentucky, Maryland and South Carolina created merit-based programs. In Kentucky, the Commonwealth Merit Scholarship Program will provide college students with graduated awards based on their high school grades and ACT scores. When fully implemented, awards will range from $125 to $2,500 per year. Maryland’s program will provide awards of $3,000 per year ($1,000 for community college students) to high school graduates seeking degrees in high-demand science and technology fields.

South Carolina’s LIFE Scholarships will provide up to $2,000 per year for students attending four-year colleges and up to $1,000 for students at two-year colleges who graduate from high school with a “B” average and a score of at least 1000 on the SAT. The SAT-score requirement will increase to 1100 by 2002-03. A tuition tax credit also will be available for all college students except those receiving LIFE Scholarships or merit-based Palmetto Fellowships.

Administrative rules pertaining to the 5-year-old Georgia HOPE Scholarship were placed in law, and home-schooled students were added to the eligibility list
for receiving financial assistance. A constitutional amendment passed in November specifies the programs for which lottery funds can be spent, one of which is the HOPE program. Funding for programs in Florida (Bright Futures) and in Louisiana (TOPS — Tuition Opportunity Program for Students) was expanded
in 1998-99.

Most SREB states also have prepaid tuition programs, tuition savings plans or both. In 1998, Oklahoma joined other SREB states by creating a college savings plan. Tennessee’s Baccalaureate Education System Trust, a prepaid tuition plan created in 1996, was re-authorized through 2004.

More information about prepaid tuition and tuition savings programs is available from the SREB in Planning for Future College Costs in the SREB States. State-Funded Merit Scholarship Programs, a new SREB report, is also available.

Higher education finance and governance

Four states in the region have called for new higher-education studies. Virginia created a joint House-Senate subcommittee to review funding policies and make recommendations prior to the 1999 session. Concurrent resolutions in West Virginia call for the study of the governance of all public institutions in the state and of the role, responsibility, governance structure, efficiency, effectiveness and funding models for community and technical colleges. A new 21-member task force in Maryland is studying the governance, coordination and funding of the University System of Maryland.

In North Carolina the Legislature called for community college program reviews to include a review of tuition, options for allocating funds based on performance and accountability. In addition, the University of North Carolina Board of Governors will study whether university facilities are equitable and adequate.

Kentucky and South Carolina are continuing efforts in incentive and performance funding. One year ago, reform legislation in Kentucky restructured the governance of higher education and created six investment and incentive trust funds to advance the goals of postsecondary education. A total of $15 million was provided in 1998 to initiate funding in three of the funds. The Legislature expanded that funding to $40 million in 1999 and $87 million in 2000.

South Carolina continues to prepare to fund colleges and universities solely on the basis of performance by fall 2000, as required in 1996 legislation. The budget for 1999 required the Commission on Higher Education to show how another $250 million of existing funds would be allocated based on performance. In addition, the funding formula includes $19.6 million for performance funding, up from $4.6 million.

Additional information on higher education finance will be available in a new SREB report scheduled for release early in 1999.

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. Many of the reports are also available through the SREB’s Web site at www.sreb.org.

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