Back-to-School: PA Budget and Education

K-12 Education Budget

The following are some of the highlights from the 2012-13 state budget:

    •    K-12 funding is flat funded in the budget.  In addition, $49 million was added to the Basic Education Subsidy appropriation to provide supplemental aid to financially distressed school districts—$39 million in direct funding to 16 school districts and $10 million for a Financial Recovery Transitional Loan Program to provide loans to school districts in financial recovery status that have approved a financial recovery plan.
    •    An additional $2.5 million is appropriated to the Duquesne School District. This includes $500 per pupil for the next two years, for transitional services related to students in the 7th, 8th and 9th grades reassigned to neighboring school districts.
    •    The Accountability Block Grant appropriation of $100 million is restored after the Governor eliminated funding in his proposed budget in February. The majority of school districts use this funding for class reduction, full-day kindergarten and pre-k programs.
    •    Early Childhood Education programs are funded in both PDE and DPW. The budget restores $4.1 million in PDE for the Pre-K Counts program. Pre-K Counts provides funding for early childhood learning, focusing on at-risk students.
    •    The budget restores $1.9 million for the Head Start Supplemental Assistance, which expands pre-K services to eligible children.
    •    Funding for Early Intervention, which provides services and support for children with developmental delays, is increased $8 million over the prior fiscal year.
    •    The budget provides level funding for the Public Library Subsidy appropriation.
    •    PlanCon is level funded at $296 million. For FY 2012-13 the budget includes a limitation on PDE’s acceptance or approval of new school building construction/ reconstruction project applications received after October 1, 2012, and requires PDE to conduct a review of its school building project approval process and submit recommendations by May 1, 2013. Existing projects already in the PlanCon process will not be impacted.

Higher Education

The following are some of the highlights from the budget for higher education as well as some changes that will take place for this upcoming fiscal year:

Pennsylvania Higher Education Assistance Agency - PHEAA

    •    For the 2012-13 fiscal year, the total amount of funding that will be available for student grants is $419.88 million, which includes $344.88 million in state funding and $75 million that the PHEAA Board of Directors will direct from its business earnings to supplement the State Grant Program. The enacted funding amount will allow the number of grants awarded to remain unchanged and the maximum grant amount to remain at $4,348.
    •    Funding is restored for the Institutional Assistance Grants (IAG) line, which provides assistance to higher education institutions that do not receive other state funds. It will be level funded at $24.39 million. The Governor had recommended a 30 percent reduction.

Pennsylvania State System of Higher Education – PASSHE Modernization

    •    Authorize the PASSHE universities and employees to enter into economic development transaction agreements.
    •    Allow PASSHE institutions to enter into agreements with private affiliated foundations which may solicit and manage donations from the private sector for the direct benefit of the PASSHE institution.
    •    Allow for the establishment of doctoral programs at all PASSHE universities.
    •    Allow PASSHE to enter into agreements with any entity/consortia for the cooperative use of supplies and services. 

Additional New Education Related Laws

Teacher Evaluation System

    •    The omnibus School Code legislation includes a complete revamp of the Commonwealth’s teacher and administrator evaluation system. The new system will affect K-12 classroom teachers, principals and nonteaching professional employees, but fails to include teachers and administrators at public charter school and public cyber charter schools.
    •    Beginning with fiscal year 2013-2014, requires classroom teachers to be evaluated giving consideration to classroom observation and practice models related to student achievement and student performance. Beginning with fiscal year 2014-2015, requires principal evaluations which give consideration to planning and preparation, school environment, delivery of service, professional development and student performance.

Student performance is to comprise 50% of the overall rating and be based on multiple measures of achievement as follows:

    •    15% based on building level data
    •    15% based on teacher specific data
    •    20% based on elective data locally developed and selected by the school district from a list approved by the department.

Financially Distressed School Districts – HB 1307

    •    The legislation develops an early warning system for financially distressed school districts and creates moderately and severe financial recovery classifications. Districts (currently 4 and never more than 9) will be assigned a chief recovery officer and will implement a financial recovery plan. They will be eligible for an interest free loan program.
    •    Revised the per pupil tuition amount for junior high and high school students from Duquesne City School District to attend high school in a neighboring district. Provided for two years of transition funding for Duquesne students in grades 7 through 9 to the neighboring districts as well.
    •    Provided additional funding to financially struggling districts through supplemental language included in the basic education subsidy formula.

Senator Wayne D. Fontana
42nd Senatorial District
www.senatorfontana.com