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Join KEA in Fighting Budget Cuts

The Bad Budget Situation

The legislature’s most important task in even-numbered years is to adopt a state budget for the next two years. The bad economy has resulted in the state facing a deficit of nearly one billion dollars over the next biennium. Spending on P-12 schools takes about half the state’s budget, so protecting school funding will be difficult for lawmakers.

Consensus in Frankfort seems to be that the legislature has no stomach for enacting any new revenue measures during this session. So that leaves cutting the budget as the only avenue to create a balanced state budget. KEA supports tax reform that will result in more adequate school funding.

House leadership is working on their budget proposal. KEA expects that proposal to be finalized in the next two weeks, when hearings will begin in the House Appropriations and Revenue Committee.

On Thursday evening, KEA officials met with Representatives Tommy Thompson (chair), Dottie Sims and Kent Stevens who serve on the House budget sub-committee on P-12 education to express KEA’s strong support for school funding and to urge them not to cut any school funding.
Loss of Instructional Days
Although the House budget proposal has not been finalized, it appears certain that the proposal will include cutting two instructional days from the calendar for the next two years. KEA strongly opposes any cut in school funding and strongly opposes eliminating instructional days.

The damage such a cut does is twofold, both on students’ academic welfare and on school employees’ economic welfare.

Reducing students’ school days would hurt our students’ education just as SB 1’s implementation is starting. SB 1 (2009 session) mandated higher student learning standards and a new assessment and accountability system. If we are going to assure that all students reach proficiency, reducing the amount of time they are in school is a move in the wrong direction.

Earlier this week, KEA President Sharron Oxendine asked local KEA leaders what they think about the proposal to cut two instructional days. Their comments focused primarily on the damage to student learning. 
Salary Reduction
If school days are eliminated, then school employees’ salary will be cut. The average teacher would experience a $525 pay cut. Classified employees will experience a pay cut of between 1% and 2%.

This may seem like a relatively small pay cut. But to see the real impact of the cut, you must consider its cumulative impact. A one-year pay cut of $500, for example, would also be $500 less you will be paid for every year remaining in your career. Because your final salary would also be less than if you never received a pay cut, it will also reduce your pension for the rest of your life.

KEA has calculated the possible impact on a mid-career teacher ($13,246), a teacher nearing retirement ($8,280) and a classified employee ($7,451). Click to see the impact.

Some school districts have said they would try to fund the two instructional days from local funds, at least for one year. KEA applauds school districts who can afford to do this and superintendents’ courage who are recommending this step. However, if many poorer school districts cannot afford to do so, this will increase the inequity that already exists among school districts, exactly what KERA was designed to eliminate.
Retirement Issues
Two bright spots in both the Governor’s budget proposal and what the House will apparently propose involve retirement issues. First, for classified employees, both proposals will fund the actuarially-required contribution (ARC) as agreed during the special session in 2006. This ARC funding is crucial to keep the classified employees’ system sound.

For teachers, the state would issue bonds to pay back the funds it has borrowed from the KTRS pension fund over the last six years to pay for retirees’ health care. They may also bond the cost of retirees’ health care over the next two years. This bonding would save the state money on interest payments and also increase the security of both KTRS’ pension and medical funds.

Another potential issue for classified employee deals with their annual service credit calculation. Classified employees must work 180 days to receive a full year’s service credit with the Kentucky Retirement System. If a cut in days reduces the number of work days for classified employees, it could also mean a loss of month(s) service credit. For a chart of months credit based an actual days worked for classified employees, follow this link.
http://kyret.ky.gov/index.php/employers/employee_qualifications
Health Care
House members are also talking about saving money through economies in the insurance plan that covers all state and school employees. The House budget is not final and KEA has gotten conflicting stories about what these reductions will mean. This is obviously a crucial issue for school employees. Watch future editions of The Advocate for details.

Please contact both your state senator and representative this weekend while they are at home or through www.keepkentuckylearning.org and ask them not to cut school funding. The key to our Commonwealth’s economic future is a good education for our students today.

Calendar Bill Filed
This week Rep. Richard Henderson (D-Montgomery Co.) along with several co-sponsors from both parties filed House Bill 487. This bill would allow school districts that have missed at least twenty instructional days this school year to request a waiver of up to ten days missed beyond the first twenty days. All staff would still work a full school calendar. KEA supports this bill.

Lots of KEA members also have concerns about an early testing window when school may be held into June. KEA continues to work on this issue. Watch future editions of The Advocate for more information.
House Education Committee Passes Bills
In a long and busy meeting on Tuesday, the House Education Committee passed a number of bills, sending them on to the House floor for a vote:
• HB 126: provides up to $3,000 annually for ten years in loan forgiveness for programs including Best in Class.
• HB 154: establishes a grant program to allow some schools to extend their learning year by 300 additional hours.
• HB 190: establishes the Strong Start Kentucky program to expand pre-school programs when funds are available.
• HB 374: permits an instructor to serve on a board of regents at state universities.
• HB 412: requires a review of the state’s alternative education programs.
• HB 327: permits school districts to hire coaches who are not certified teachers.
The committee also discussed, but did not vote on, HB 22, which would allow students to be counted present when they miss class because of a sanctioned school sport competition.

For a complete list of education bills filed so far in this session, those bills’ current status, and the KEA Lobbying Team’s position on bills, visit the Keep Kentucky Learning web site. 
Principal Selection Bill Still under Discussion
As The Advocate reported last Friday, HB 322 has been recommitted to the House Education Committee. This bill, and the House Committee Substitute (HCS) version of the bill, would have given superintendents substantially more authority to select principals. KEA opposes both the original version of HB 322 and the HCS version. KEA continues in discussion with a number of legislators and representatives of superintendents to see if a compromise on this issue is possible.

Contact your representative, especially if he or she is a member of the House Education Committee. Reinforce your support for school councils’ authority to select principals.
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