Gov. Steve Beshear vetoes most provisions of Medicaid bill

This from the Courier-Journal:

Gov. Steve Beshear on Friday stripped the Medicaid budget bill of cuts to education as well as other provisions, leaving what amounts to his original proposal for dealing with the program’s funding shortfall.

“I'm coming forward to restore common sense to the mission of rebalancing the state's Medicaid budget,” Beshear said at a news conference where he detailed his veto of most parts of House Bill 1, sent to him by a special session of the General
Assembly Thursday night.

“… I will not make drastic cuts to classroom teaching, to our veterans programs, to public safety, to our social workers, to higher education and numerous other services when there is no need to do so,” he said...

Still to be resolved is how the session finally ends. The House adjourned for good Thursday night, with no intention to return. The Senate adjourned until a final day on April 6 — when Beshear's deadline for issuing vetoes would have expired.

And the major players continued to squabble Friday over the issue of pay for all legislators for each day until the Senate finally adjourns. A legislative session costs taxpayers about $64,000 per day.

The Senate included in its version of HB 1 a provision that no lawmaker could be paid during the 12-day waiting period for vetoes. But the governor struck that language from the bill as one of his vetoes Friday.

He said that clashed with a provision in the Kentucky Constitution that he said “states something to the effect that legislators can't change their pay during the session in which they vote to make such a change.”

Stumbo agreed with that. And he urged Williams to convene the Senate as soon as possible to adjourn and thus conclude the session.

But Williams said no lawmakers will be paid for any days after Thursday if the House returns and overrides Beshear's veto of the provision that bans legislative pay for the 12 days.

“The Senate will come back on the scheduled day (April 6) unless we are able to convince the House to come back sooner,” he said.

Stumbo said the House has no intention of returning...

Stumbo: 'We are not going to cut education'

This from H-L, photo by David Perry:

House Speaker Greg Stumbo said Thursday that the Democratic-controlled House would not support the Senate's plan to make cuts to education, but left the door open for possible cuts to other parts of state government.

"We are not going to cut education," Stumbo said. "Not when there is a viable alternative. And there is a viable alternative."

Stumbo's comments came a day after the Republican-controlled Senate passed its version of House Bill 305. That version calls for cuts across state government, including cuts to higher education and K-12 education, to plug a hole in the Medicaid budget.

Now the Democratic-controlled House and the Republican-controlled Senate must hammer out an agreement in the waning days of the legislative session. House leaders said late Thursday that they expected negotiations on the budget to begin Friday and were hoping that an agreement could be reached either Friday or Monday...

Senate Passes Charter, “Neighborhood” Schools Bill amid Passionate Debate

Measure Moves to House

When Session Resumes in February

This from KSBA:

At the end of a rare Friday afternoon debate, the Kentucky Senate narrowly voted 21-17 to pass Senate Bill 3, the charter school, “neighborhood” schools legislation championed by President David Williams (R-Burkesville).

An often passionate 80-minute debate between Democrat and Republican senators dwelled little on the issues of creating charter schools, but rather on how districts set school attendance boundaries – the “neighborhood schools” language. As in Thursday’s Senate Education Committee hearing, the focus was on the controversial Jefferson County Schools’ student assignment plan and the bill’s proponents desire to give parents greater say in having their children attend schools closest to their homes.

Both sides in Friday’s exchanges made local decision making by school boards as a primary focus of their support and opposition to both the charter schools and school attendance boundary subjects...

Support for charter schools had been building to some degree as a new advocacy group formed in Lexington. As Jim Warren reported in the Herald-Leader, interest in charter schools in Lexington has grown in recent months with the creation of Asteroids, a group of parents, educators and clergy who have been discussing charter schools since about September. To be sure, there is no groundswell of charter school support yet. And no one has indicated any intention of starting a charter school in Lexington if the General Assembly approves enabling legislation.

"I guarantee you there is lot of frustration among parents with the public school system in Lexington," said Brandi Carey, a mother of four who says a charter school could provide Lexington students with more choices in language immersion programs.

Talk about charter schools previously has been limited mainly to Louisville, where
some parents are calling for charters as alternatives for students in persistently low-achieving public schools.

Rev. Willis Polk, pastor of Lexington's Imani Baptist Church, told H-L that too many students are falling through the cracks and charters could be a valuable addition, if enabling legislation is properly crafted.

"Many of our children graduate from high school, go to college, and arrive there with great deficiencies. Something must be done. Some people are looking at [charters] and hoping and praying that some kind of alternative is made possible for our kids."

Polk's church serves members from the Booker T Washington, Leestown, Bryan Station, and other areas.

SB 3, which is being called “the voluntary charter school bill,” would allow local school boards to create public charter schools free from many existing state and local rules for operating schools to improve educational opportunities for children attending the charters.

Unsuccessful charter applicants could appeal denials or restrictions required by the local school board to the Kentucky Board of Education, which could overturn them. Charter schools would be given three to five years to demonstrate their impact before facing possible loss of their operating authority.

In committee, Senate President David Williams, the bill’s chief sponsor, argued that charter schools are just another tool for “intervention” in low-performing schools, similar to the transformation options schools now use.

Sen. Gerald Neal, D-Louisville, said that while he’s not opposed to charter schools, he is concerned about how they would be structured and their accountability as outlined in the bill.

Senate Bill 3 sailed out of the Senate Education Committee on Thursday, with all five Democrats on the committee voting against it.

But the bill is not only about charter schools. It also contains provisions that under some circumstances, would allow students to attend the school closest to their home - a measure with questionable consequences. Williams argued,

“The only thing this bill does is to give individual parents some authority to negotiate and say ‘I want my child to attend the school closest to our residence within the school attendance boundary,’ rather than have some bureaucrat decide whether that child goes to that school or somewhere else. This bill does not take local control away, it just guarantees parent control.”

So the whole thing turned into an argument over local control - only this time it was Republicans supporting the state imposition of attendance boundary solutions on local school boards.

KSBA reported,

Sen. Gerald Neal (D-Louisville) urged defeat of SB 3, saying it would indeed negatively impact local decision making, as was argued Thurday by three members of the Jefferson County Board of Education.

“These complex issues will not be resolved by actions taken by the state as opposed by those policy makers who are on the ground. An election was just held (in Jefferson County) and all of those (school board members) were re-elected. That’s a public expression of democracy in action. This body, particularly the (Republican) majority has consistently spoken that decision making should take place on the local level. This is a break from that,” Neal said.

Neal unsuccessfully sought to amend the bill’s mandates with a study of the measure’s impact.

“It’s very important that we identify the districts in the state that are likely to be affected. We don’t know that,” he said. “The potential increase in costs of facilities, student transportation and other operations. We don’t know that. Identification of potential impact on diversity and access to special programs. We don’t know that. This study would be central considering what we don’t know, but what we should know when we take a step like this,” said Neal.

The fun-filled 2011 General Assembly resumes on Feb. 1. The issue now goes to the House of Representatives where Speaker Greg Stumbo harbors doubt over its likely success.

Leaders meet on budget, but special session likely to continue Saturday

This from Bluegrass Politics:

House Speaker Greg Stumbo and Senate President David Williams met privately for about an hour Friday afternoon in an attempt to work out differences between their two chambers on a state budget bill.

Stumbo said after “the very productive” meeting that he was more optimistic that the legislature could enact a budget bill, but he said the final vote on it might not come until Saturday.

He noted that it could take 12 hours to print an amended budget bill before lawmakers voted on it.

“The odds that we won’t have to go into next week are very good. I can’t promise that we won’t have to go at least into tomorrow because it does take about 12 hours to print for enrolling and engrossing,” he said. “But we are making significant progress.”

Referring to the Senate's premature evacuation from Frankfort during the regular session Stumbo warned that,

"If the Senate should approve a budget bill later Friday and then adjourn, putting he House in an accept-it-or-reject-it position, we won’t have a budget.”

He added: “Keeneland is not running today so I have hopes they will stay around for awhile.”

Williams reacted with pomposity saying Stumbo's comments were “pejorative, outrageous and vitriolic statements.” He claimed those statements are “rolling off our back like water.” Then to prove it, Williams implied that Stumbo wasn't reading the bill the Senate sent to the House.

Just another day in Frankfort. Maybe the legislature does its job. Maybe not. Stay tuned.

Kentucky to Wave Bye Bye to $175 Million

This from H-L:

Jobless funds, bourbon tasting

on special session agenda

Charter Schools Not on Special Session Call

Gov. Steve Beshear wants the legislature to tackle a measure that would help shore up the state's bankrupt unemployment insurance trust fund when lawmakers return to Frankfort Monday for a special legislative session.

Beshear issued the "call," or the agenda, for the special session on Thursday...

House Speaker Greg Stumbo, D-Prestonsburg, and Senate President David Williams, R-Burkesville, have said they believe there is enough support in both chambers to pass Beshear's $17.1 billion two-year compromise budget that was proposed after House and Senate leaders failed to pass a budget by the end of the legislative session...

A measure that would allow charter schools in Kentucky is not on the agenda. Education leaders had pushed for the legislation so the state would be eligible for millions of federal education dollars. The Republican-controlled Senate has supported charter schools in the past but the Democratic-controlled House has resisted the move...

Not Afraid to Shoot

This from Marc Murphy in C-J:

Wimped Out

This from H-L:

Legislative session ends without a state budget

After bickering for more than three months, lawmakers ended the 2010 General Assembly on Thursday without an executive branch budget.

A "disgusted" Gov. Steve Beshear called the legislature's inaction an "abject failure" and said he will call lawmakers back to Frankfort in May to close a roughly $1.5 billion gap between existing revenue and expected expenses during the next two years.

Beshear, his tie loosened and shirt sleeves rolled up, blamed the budget debacle on lawmakers who "decided to put their egos and their personal priorities above the needs of Kentucky families — families that are struggling to pay their bills and hold on to their jobs in the worst recession of our lifetime."

After rejecting the governor's budget proposal, which would have raised more than $700 million by allowing electronic slot machines at racetracks, leading lawmakers crowed that "writing their own budget would be their 'defining moment,'" Beshear said.

"Well, it was. A moment of abject failure," he said.

This from KSBA:

Wimped Out

Hopkins County Schools Superintendent James Lee Stevens is disappointed the Senate adjourned Thursday without approving a budget.

Lack of a state budget means the district can’t prepare its own spending plan, he said.

“Basically, usually the second board meeting in May, we present our draft budget to the board,” Stevens said. “In all probability, we will not present one. I can’t present one on ghost numbers.”

He also said the district can’t prepare a budget based on current numbers, because the state keeps cutting funding.

“This has really thrown a curve,’ Stevens said.

The lack of passage will have a wider impact because of additional legislation that had been attached to the budget bill, such as whether school will be in session for 185 or 187 days next year.

Without a decision on the number of instructional days, employees who work on 187-day contracts must be notified by May 15 if they may be paid less next year.

“Since they wimped out and left town without a budget, all that does is cause pain and heartache,” Stevens said. “It just causes a tremendous amount of burden and
uncertainty to my employees.”

This from the Paducah Sun (subscription):

Sen. Bob Leeper, chairman of the Senate budget committee, said efforts to reach an agreement should resume in a couple of weeks.

“Hopefully, everyone will go home, take a deep breath and listen to their constituents about what they expect us to do,” Leeper, I-Paducah, said soon after the Senate adjourned. “The governor will work with the leadership of the House and Senate. If they can reach a compromise for a reasonable budget, he’ll call us back for a special
session.”

Chances for a budget deal Thursday faded when Senate President David Williams declared that a so-called continuation budget House Speaker Greg Stumbo proposed failed to garner Senate support.

“It is the most important job that the General Assembly has, and the General Assembly has failed to pass a budget,” Williams told reporters.

An angry Stumbo later said Kentuckians had every right to be disappointed that Gov. Steve Beshear will have to call lawmakers back into a special session. Stumbo called it a needless expense.

“We don’t want to come back,” Stumbo told reporters. “I think it’s a waste of taxpayers’ money to have to come back, and the very simple action of a continuation budget would have prevented us from coming back and would have saved that money.”

Leeper, who was involved in the behind-the-scenes negotiations, doubts the $65,000-a-day special session will start before the May 18 primary elections.

Proposed Budget Endangers $200 Million in RTTT Funding

Brothers Urges General Assembly Not To Cut 2 School Days

Stumbo & Williams see it as
an opportunity to find other eduction cuts

In "Flawed budget by the weak-willed," the Herald-Leader correctly opines that the proposed budget coming out of the House this week "is the kind of budget Kentucky can expect when lawmakers lack the backbone to do the right thing on comprehensive tax reform." It is a budget that completely refuses to address the real problem while it looks for more band aids to slap on its structural imbalances.

Rather than providing solid stewardship over the state, our legislative leaders seem to prefer short-term tactics that serve their own interests - reelection. The proposed plan completely fails to fix the tax structure. Instead, it cuts higher education; reduces school days (while some claim it doesn't matter); and heaps more long-term burden on the public to cover short-term necessities.

And there is absolutely no reason to believe the General Assembly will complete tax reform in the 2011 short session with its enhanced procedural requirements for budgetary legislation. If that pushes legislators back yet another year, legislators will once again face reelection concerns. And the cycle continues.

Yesterday, Kentucky Board of Education Chair Joe Brothers fired off a direct plea to the General Assembly since they seem to have have been deliberately ignoring similar pleas from multiple other sources, including Commissioner Terry Holliday.

March 11, 2010

Dear Members of the General Assembly:

Members of the Kentucky Board of Education are extremely concerned about the effect of House Bill 290 (the budget bill) to eliminate two days of instruction from Kentucky’s public school year. The board members strongly support the recent remarks by Commissioner of Education Terry Holliday, in which he said, “Shortening the year by two days would move us backward.”

Additionally, media attention on legislative action to remove two instructional days from the school calendar could adversely affect Kentucky’s consideration for federal funding of up to $200 million as a finalist in the Race to the Top competition. General spending reductions by the other state finalists for this grant competition are a common issue and should not attract national attention for Kentucky. However, reducing instructional time is likely to damage Kentucky’s position compared to the other state finalists, as none of the other 15 are reducing instructional time!

While the members of the board understand and support the legislature’s difficult task to balance the state budget, we strongly urge you to look for other sources of funds to help fill the deficit than eliminating the two instructional days.

Thank you for all of the fine work you have done to improve education, including Senate Bill 1 and House Bill 176. If the same collaborative process that produced these pieces of legislation is applied to this issue, we are confident that you will be able to determine an alternative solution.

We welcome further dialogue with you and other partners on this matter.

Sincerely,

Joe Brothers, Chair

Kentucky Board of Education
(Sent at the request of members of the Kentucky Board of Education)

cc: Terry Holliday

JB:MAM:mam

House leaders told H-L that they "would have been open to hearing such ideas." But Speaker Greg Stumbo, D-Prestonsburg, said that as far as he knows no one from the school board came to the House while it was considering its budget to offer any solutions. Stumbo said he would welcome any ideas to save more money.

Meanwhile, Senate President David Williams, R-Burkesville, said the state could save as much money by cutting K-12 education funding by about 1.5 percent instead of taking away two instructional days.

"There are many people who are concerned that taking away two instructional days sends a bad message," he said.

We're getting lots of bad messages out of Frankfort these days. The messages say that we can expect more of the same in the future.

Last week, Kentucky Education Commissioner Terry Holliday sent a letter to Senator Ken Winters, chair of the Senate Education Committee, and Representative Carl Rollins, chair of the House Education Committee, encouraging them work with their fellow legislators to move key pieces of education legislation forward.

The full text of the letter is copied below.

March 5, 2010


Representative Carl Rollins, Chair
House Education Committee
702 Capitol Avenue
Room 367, Capitol Annex
Frankfort, KY 40601

Senator Ken Winters, Chair
Senate Education Committee
702 Capitol Avenue
Room 215, Capitol Annex
Frankfort, KY 40601

Dear Representative Rollins and Senator Winters:

Kentucky’s long history as a leader in education reform was reinforced this week by the announcement that our state is one of the finalists in the federal Race to the Top (RTTT) competition. We must give much credit and praise to the Kentucky General Assembly and the Governor for the powerful bipartisan support shown for the innovative design of 2009’s Senate Bill 1 and the swift passage of House Bill 176 this year, both of which clearly illustrate the solidarity of our state’s leaders behind Kentucky’s RTTT application. With Senate Bill 1 as the foundation for our RTTT application, our submission stood out as a powerful, integrated plan for moving the state’s education system to the next level.

Kentucky took a huge step in its Senate Bill 1 implementation on February 10 when it became the first state to adopt the Common Core Academic Standards and all three of the state’s education agencies adopted a joint resolution to implement the standards as part of their work and processes. In order to continue the superb momentum established by the adoption of the standards and by being an RTTT finalist, the passage of the following pieces of pending legislation is vital to the success of Senate Bill 1’s implementation and to carrying out the intent of the General Assembly’s vision for education:

• HB 109 Response to Intervention – improve the quality of instruction and learning for each child and thereby college and workforce readiness
• HB 301 Graduation Bill – increase graduation rate and college and workforce readiness (Note: Eight of the 16 states that are finalists in the Race to the Top competition have compulsory school ages of 17 or 18, which may give them an advantage in the review process. We anticipate only six to eight states will be funded and do not want to be at a disadvantage because the other states have higher compulsory school attendance ages.)
• SB 67 Early Graduation - accelerate the pathway to graduation for students who have specific career and college plans
• SB 163 Adolescent Literacy - enhance the literacy of students beyond the primary basics of the reading process, i.e., “reading to learn” in addition to having learned to read.

As leaders of the House and Senate Education Committees, I urge you to work with your colleagues to swiftly move the bills mentioned above through both chambers of the General Assembly. Their passage is fundamental to the ultimate goal of Senate Bill 1, to ensure that all of Kentucky’s students are career- and college-ready.

I am available to support the legislature’s consideration of these bills through furnishing additional information, testifying before committees or meeting individually with legislators. Please contact me for assistance at 502-564-3141 or via e-mail at Terry.Holliday@education.ky.gov .

Thank you for consideration of my request.

Sincerely,


Terry Holliday, Ph.D.

Cc: Governor Steve Beshear
Senate President David Williams
House Speaker Greg Stumbo

Deliberate Deafness

As our educational leaders plead for an alternative solution

- saying NO to this decision -

it appears that our voices are being ignored.

--15th District PTA President Myrdin Thompson

House Speaker Greg Stumbo, D-Prestonsburg, told the Courier-Journal Friday that the House budget was still about $200 million short of being balanced. But it turns out the gap is actually about $405 million when all of the changes detailed by Stumbo and House budget committee Chairman Rick Rand are totaled.

Missed it by that much.

But that's OK. We haven't really counted on Stumbo's data since he and Senate President David Williams told Kentuckians that our kids could get by just fine by reducing the amount of schooling they receive. I'm glad they didn't try to balance the whole budget by reducing schools to a 150 day school year. Instead, they can rest assured that Kentucky children will be ready to meet the demands of the twentieth century.

Over at the Bluegrass Institute, Richard Innes observed that "...at the very same time the House leader says we can cut school days, the education committee under his jurisdiction says we need to add more.."

A UNESCO study of 43 countries showed that 33 of them have school years longer than 180 days and some go as many as 220 days per year. Our legislative leaders say these extra days don't matter - while an increasing number of foreign nations flash past America in the percentage of citizens ready for the 21st Century.

Stumbo presents no evidence, but continues to claim that the number of instructional hours required by six of our seven surrounding states is less than Kentucky. In fact, five of the seven surrounding states go to school more days than Kentucky. Enacting Stumbo's plan would lower Kentucky another notch. True, some neighboring state laws only require a "minimum" number of hours (an historical remnant as low as 3 hours in Mississippi) but students in those states actually attend longer days.

Teachers would pay for the Stumbo/Williams plan.

According to the Daily-Independent, by reducing the number of instructional days from 177 to 175, the state will save about $34 million and teachers – on average – will lose about $500. Another cost savings, however, may yet rile educators – state employees will likely pay more from their paychecks for pensions and for health insurance.

Stumbo and Williams' commitment to educational excellence seems soft and subject to more immediate concerns - like the next election and the dred fear of fallout from the tax reform they know we need.

Governor Steve Beshear's plan was much better than this.

According to Rep. Tim Firkins, D-Louisville, it may still be a little early to tell, but so far, he hasn't heard much from constituents about the plan to reduce the two school days and increase teachers' healthcare costs. Those days were added to the school year in 2006. Firkins told the Daily Independent that he didn't expect to start seeing “green slip” messages from constituents for another couple of days because the broad budget plan became public only late last Thursday."

But Firkins' message is being echoed by other legislators.

This from the Daily Independent:

No outcry thus far on reducing school days

Stumbo said budget document should be ready soon

Lawmakers returned to Frankfort on Monday after a weekend at home, but most said they didn’t hear much feed back on a state budget proposal that would shave two days off the school calendar.

Rep. Danny Ford, R-Mount Vernon, said he attended a legislative breakfast at home Monday morning and while the subject of the school days came up, he didn’t detect an uprising.“We had some people say we wish you didn’t have to do that, but it wasn’t bad,” Ford said.

House Education Committee Chairman Carl Rollins, D-Midway, concurred. He said he’d received some blowback from teachers and educators, “but not that much. I was kind of surprised really.”

House Speaker Greg Stumbo, D-Prestonsburg, said he’d not heard much about the days while back in Floyd County this weekend. He said some members told him
they’d been asked about the days, but again, there was no indication of widespread shock or anger...

Are our legislators not hearing anything from educators...or not listening?

Kentucky’s education commissioner warned legislators Friday that their budget proposal to eliminate two days of public school “would move us backward,” shortening the school year at a time when many other states are trying to add days, the Courier-Journal reported.

“The national average is 180 days, and the international average is around 200 days,” said Terry [Holliday], who head[s] the state education department. “Kentucky is at 177 days.

“If people want to know why some of our schools aren’t doing so well on test scores, they need to look at the amount of time that is being spent on instruction and the length of our school calendar.”

This from the Enquirer:

NKY to Frankfort: Save our schools

Educators from across Northern Kentucky flocked Saturday to the Boone County High School gymnasium to deliver a collective message.

The state lawmakers that make up the Northern Kentucky Legislative Caucus listened to concerns from the public ...the dominant topic at the public meeting was the future of education in Kentucky.

"These are difficult times and we're going to have to make some difficult decisions," said Sen. John Schickel, R-Union. "Education is very important and I think all members of the General Assembly realize that and want to do everything they can to provide a quality education for our children."

The dozens of teachers, school administrators and staff, school board members and other education advocates who attended the meeting wore red as a show of solidarity. In two-minute increments, they stressed to the legislators the importance of a good education and addressed a House proposal that would cut two classroom days in public schools to help balance the state budget....

This afternoon, Council for Better Education President Tom Shelton reminded state education leaders that it is the General Assembly that is solely responsible for the schools.

As I am sure you have heard, the House budget proposal calls for the reduction of the two days that were added to school calendars and teacher contracts four years ago. They have indicated that local districts could pay for these days from their contingency funds / fund balances. I know you realize this but even if a district can afford to pay the two days from their contingency / fund balance, they could not do this on a recurring basis and salaries are recurring costs. Fund balances / contingencies are one-time funds and a district should not obligate these funds for recurring costs. That is how districts become deficit.

Also, by the Constitution, it is the obligation of the General Assembly, not local districts, to provide an adequate public school system. Contingencies / fund balances are local funds, not state funds, and the General Assembly, has no authority to obligate these funds. Trying to say that it is optional at the local district creates equity issues across the state and flies in the face of KERA and the establishment of SEEK funding. We do not need systems of the haves and have nots.

The General Assembly continues to pass off their obligation to local school boards and communities. This is not just happening now during an economic recession but has been happening for 15 years. It is time for them to step up and modernize our state budget and system of revenues so that they do not continue to jeopardize the future of our state by inadequately funding education. I encourage you to consider my thoughts and if you agree, feel free to share with all of your constituencies.

Tom Shelton
Superintendent, Daviess County Public Schools

That drew a rather specific response from Tommy Floyd in Madison County that shows the bind local school districts are now in.

I must admit, I am troubled by the supposed legislative solutions:

Here we are in the latter half of the current session with somewhat of a false belief that school districts have not been good stewards. I wanted to state where my experience leaves me today:

1. We are planning on our 3rd draft budget at $3866.00 per child.

2. Almost every consumable has increased significantly in cost since the above rate has not changed.

3. Most of our local sources of revenue including investments are at the lowest point in recent memory. Our school board voted/approved the maximum local 4% increase in property tax.

4. Most of our layers of extra support have been reduced or eliminated from elementary, middle, and high schools with respect to personnel on our part.

5. We are still paying for a 1% raise from 09/10, and without additional funding, will continue to do so @$450,000+.

6. We are still payig for Infinite Campus.

7. Our Flex Focus funds have been significantly reduced affecting multiple layers of our district’s ability to serve the students that need it most.

8. Most of our state grant programs have all had reductions and have been adjusted accordingly while still delivering much needed services. (Remember - We had to show need in order to get them in the first place).

9. We have worked to find ways to run transportation and food service more efficiently and have reduced costs- and we should have.

10. We experienced record low attendance last fall due to H1N1. We disinfected our buildings/buses and immunized many of our students in an effort to stay open and are just now feeling some of the imminent impacts of this lowered ADA effect which will also be forthcoming in next year’s SEEK base.

11. We have accumulated a balance over the last ten years (~8%). This balance is largely due to the reliance on capital outlay funds or would not be where it is today.

12. The obligation to fund (2) days from General fund (Supposed surplus) would cost Madison County Schools an additional (~$400,000 - $450,000) in salaries alone.

I believe that we, as a district, are doing what we should be in response to what our state and nation are experiencing with the recession…..

What troubles me the most when talking about using local funds for recurring costs, is obviously the impact on students…..especially unsuccessful students.

Even as a young teacher, I knew that we must increase the number of successful students that reach graduation and obtain a diploma that means more than just a certificate of attendance. Currently fifteen percent of our Commonwealth’s kids do not even achieve that.

In a time where so many good things could happen for Kentucky’s unsuccessful students, we are definitely at a crossroads. There is no shortage of articles and suggestions on stepping out of the “box” to change how we educate our kids. The opportunity to reconsider Pre-K efforts, and to re-think our current High School model could pay huge dividends for our Commonwealth’s unsuccessful students.

That is, unless we choose the path of trading our kids future, for an easy fix.

I have thought many times as I drive away from one of our schools; our kids do not know anything about state education funding, budget deficits or contingencies. They just know that regardless of their current status, the world is waiting for them and they must be ready. The adults that work with them everyday know this too.

They are keenly aware that they are expected and continuing to do more with
less. If the conditions exist that Mr. Shelton describes below at the end of the session, we will have a lot of explaining to do someday to our students; especially our unsuccessful ones.

Tommy Floyd
Superintendent
Madison County Schools

This from the Daily News:

Bowling Green Independent Schools Superintendent Joe Tinius [is] scratching his head.

...Schools now get $3,866 for each student based on average daily attendance, not taking into account the number of instructional days, Tinius said.“So I don’t see how they can save that money without reducing the SEEK formula,” he said.

Rep. Jody Richards, D-Bowling Green, said when the state added the two additional days several years ago, it did so making it a budget line of $16 million for two days each year. The amount is now $17 million.“It wasn’t included in the SEEK calculations,” Richards said.

But Tinius said the funding did come to schools by way of an increase in SEEK funding.The only way to have any savings would be to reduce the SEEK base funding.Stumbo suggests that if districts want to pick up the tab for the additional days themselves, they could.“I just don’t see that happening,” Tinius said.

Richards said he’s against the idea of dropping the two instructional days because it goes against the trend of other states that have added instructional days.

At WFPL 15th District PTA President Myrdin Thompson objected:

When I have to balance my personal budget I do not sacrifice my children and their needs. I make sure that they are clothed, sheltered, fed, and EDUCATED, first and foremost. As adults, we often go without so that our children will not.

We have educational initiatives such as increasing the drop out age from 16 to 18 (supported by First Lady Beshear and her Drop Out Prevention Summits), and just initiated Core Standards as well as announcing SB1.

Kentucky has only 177 instructional days, compared to a national average of 186.

How can we expect our students to achieve greatness when we devalue their educational experience? How can we ask them to go on to higher educational experiences and become solid 21st century citizens when we then say that two days of instructional time won’t make a difference. Those two days could be all the difference in a child’s life. This is unacceptable.

As our educational leaders plead for an alternative solution, saying NO to this decision, it appears that our voices are being ignored.

My children are not statistics. They have hopes, dreams, goals, and aspirations. Through the Dream Out Loud Challenge they are being ecouraged to look ahead to what they will do after College graduation. Today, I want our elected leaders to understand how many will not graduate to Dream Out Loud if this action is taken. We cannot sacrifice our children in order to balance a budget.

This from H-L:

Give at the office

If the General Assembly follows through on the House proposal to cut two instructional days from the school year and school districts are unable to fund the two days locally, Kentucky teachers could face the equivalent of a small pay cut.

That doesn't seem to concern Senate President David Williams, who downplayed that prospect at a Friday news conference.

"If there were slight pay decreases — a percent or a percent and a half — it would pale in comparison to what's happening in the private sector," Williams said.

True enough.

But teachers, particularly those with post-graduate degrees, arguably don't earn as much as comparably educated people in the private sector. So, even a small pay cut might have a disproportionate effect on them.

Besides, if Williams' empathy for private sector employees is so strong that he thinks teachers also should take a hit, then he needs to step up and feel the pain as well...

If legislative leaders can't hear, they're just not listening.

Every School Day Counts: The Actual Number

This from the Herald-Leader:

Legislative leaders on Friday defended a House proposal that would cut two school days to help balance the state budget.

The loss of two instructional days, which were added in 2006, would not impact a child's education, argued House Speaker Greg Stumbo, D-Prestonsburg, and Senate President David Williams, R-Burkesville, during a joint news conference Friday morning.

"If you look at the actual number of instructional hours

that we're still allocating,

we exceed six of our seven surrounding states...

There is absolutely no evidence at all

that adding these two days

had any impact on the learning process."

---Greg Stumbo

And I'm not aware of any report to the contrary. So I suppose the Speaker is just sayin'.

What is clear, is that Stumbo's data is simply incorrect, at least, according to a 2009 report from the Education Commission of the States. Scroll to: Scheduling/School Calendar.

Updated: The actual data from ECS shows 175 days by statute for Kentucky. However, in 2006, the legislature added two more days by line item in the budget that was not picked up in the ECS report. I don't typically monkey with a source's data, but in the presence of knowledge to the contrary, it's kinda stupid not to in this case, so I have corrected the map above with an asterisk. Kentucky's 177 days includes 4 professional days - which are very important - but are not days when teachers are working with students.

Instructional days and hours refer to the amount of time students are expected to attend in a school year. Since the 1980s, the trend has been to increase the minimum number of instructional days (or hours) that students are in school: Fifteen states have increased the minimum number of instructional days while only nine states have reduced that minimum.

While state requirements vary on the number of instructional days and hours in the year, the majority of states set the school year at 180 days (30 states). Eleven states set the minimum number of instructional days between 160 and 179 days, and two states set the minimum above 180 days (Kansas and Ohio). Finally, eight states currently do not set a minimum number of instructional days. Instead, the school year in these states is measured in numbers of hours.

This from the National Center on Educational Statistics report Every School Day Counts:

Why Does Attendance Matter?

A missed school day is a lost opportunity for students to learn.

In this era of increased accountability for states, districts, and schools, the connection between student attendance and learning is being studied more than ever before. As a result, education agencies are asked with increasing frequency to report attendance data in a standard manner to allow comparisons across organizations and jurisdictions.

The primary rationale for high-quality attendance data is the relationship between student attendance and student achievement. Teacher effectiveness is the strongest school-related determinant of student success,1 but chronic student absence reduces even the best teacher’s ability to provide learning opportunities. Students who attend school regularly have been shown to achieve at higher levels than students who do not have regular attendance. This relationship between attendance and achievement may appear early in a child’s school career. A recent study looking at young children found that absenteeism in kindergarten was associated with negative first grade outcomes such as greater absenteeism in subsequent years and lower achievement in reading, math, and general knowledge.2

Poor attendance has serious implications for later outcomes as well. High school dropouts have been found to exhibit a history of negative behaviors, including high levels of absenteeism throughout their childhood, at higher rates than high school graduates.3

These differences in absentee rates were observed as early as kindergarten, and students who eventually dropped out of high school missed significantly more days of school in first grade than their peers who graduated from high school. In eighth grade, this pattern was even more apparent and, by ninth grade, attendance was shown to be a key indicator significantly correlated with high school graduation.4

The effects of lost school days build up one absence at a time on individual students. Penalties for students who miss school may unintentionally worsen the situation. The disciplinary response to absenteeism too often includes loss of course credits, detention, and suspension. Any absence, whether excused or not, denies students the opportunity to learn in accordance with the school’s instructional program, but students who miss school are sometimes further excluded from learning opportunities as a consequence of chronic absenteeism.

1 Adelman, C. (2006). The Toolbox Revisited: Paths to Degree Completion from High School through College. Washington, DC: U.S. Department of Education.
2 Romero, M., and Lee, Y. (2007). A National Portrait of Chronic Absenteeism in the Early Grades. New York, NY: The National Center for Children in Poverty.
3 Hickman, G.P., Bartholomew, M., and Mathwig, J. (2007). The Differential Development Trajectories of Rural High School Dropouts and Graduates: Executive Summary. Phoenix, AZ: The College of Teacher Education and Leadership at the Arizona State University at the West Campus.
4 Allensworth, E., and Easton, J.Q. (2005). The On-Track Indicator as a Predictor of High School Graduation. Chicago: Consortium on Chicago School Research.

Here's the rundown.

State [citation] / Minimum Instructional Time

• Alabama [Ala. Code § 16-13-231(b)(1)(c)] 180 days
• Alaska [Alaska Stat. § 14.03.030] 180 days (includes up to 10 in-service days)
• Arizona [Ariz. Rev. Stat. § 15-341.01] 180 days
• Arkansas [Ark. Code Ann. § 6-10-106; 005 19 CARR § 007(10.01)] 178 days (plus minimum 10 days (60 hrs) professional development/in-service)
• California [Cal. Educ. Code § 46200(c)] 180 days
• Colorado [Colo. Rev. Stat. § 22-32-109(1)(n)] 160 days
• Connecticut [Conn. Gen. Stat. § 10-16] 180 days
• Delaware [Del. Code Ann. tit. 14, § 1049(a)(1)] N/A
• District of Columbia [D.C. Mun. Regs. tit. 5, § 305] 180 days
• Florida [Fla. Stat. ch. 1003.02(1)(g)]; [Fla. Stat. ch. 1001.42(3)(f)] 180 days
• Georgia [Ga. Code Ann. § 20-2-168(c); Ga. Comp. R. & Regs. r. 160-5-1-.01] 180 days
• Hawaii 180 days
• Idaho [Idaho Code § 33-512(1)] N/A
• Illinois [105 Ill. Comp. Stat. 5/10-19] 176 days
• Indiana [Ind. Code § 20-30-2-3] 180 days
• Iowa [Iowa Code § 279.10] 180 days
• Kansas [Kan. Stat. Ann. § 72-1106(a),(b)] Grades K-11 ~ 186 days Grade 12 ~ 181 days
• Kentucky [Ky. Rev. Stat. Ann. § 158.070] 175 days (includes up to four days for professional development)
• Louisiana [La. Rev. Stat. Ann. § 17:154.1; La. Admin. Code tit. 28, § CXV:333] 177 days (plus two days for staff development)
• Maine [Me. Rev. Stat. Ann. tit. 20-A, § 4801] 175 days (plus no more than five days for in-service education)
• Maryland [Md. Code Ann., Educ. § 7-103] 180 days
• Massachusetts [Mass. Gen. Laws ch. 69, § 1G; Mass. Regs. Code tit. 603, § 27.03] 180 days
• Michigan [Mich. Comp. Laws §§ 380.1284, 1284b, 388.1701(3)(a)] N/A
• Minnesota [Minn. Stat. §§ 120A.40, 41]
• Mississippi [Miss. Code Ann. §§ 37-13-61, 63] 180 days
• Missouri [Mo. Rev. Stat. § 171.031] 174 days
• Montana [Mont. Code Ann. § 20-1-301; Mont. Admin. R. 10.65.101] N/A
• Nebraska [Neb. Rev. Stat. §§ 79-211, 212] N/A
• Nevada [Nev. Rev. Stat. 388.090] 180 days
• New Hampshire [N.H. Rev. Stat. Ann. § 189:1; N.H. Code Admin. R. Ann. Educ. 306.18(b) 1),(2)] 180 days
• New Jersey [N.J. Stat. Ann. § 18A:7F-9] 180 days
• New Mexico [N.M. Stat. Ann. §§ 22-8-9(A)(1), 22-2-8.1] 180 days
• New York [N.Y. Educ. Law § 3604(7)] 180 days
• North Carolina [N.C. Gen. Stat. § 115C-84.2(a)(1),(d)] 180 days
• North Dakota [N.D. Cent Code § 15.1-06-04] 173 days (plus two days for professional development and two for parent-teacher conferences)
• Ohio [Ohio Rev. Code Ann. § 3313.48] 182 days (including up to two days professional development)
• Oklahoma [Okla. Stat. tit. 70, § 1-109] 175 days (plus up to 5 days used for professional meetings)
• Oregon [Or. Admin. R. 581-022-1620] N/A
• Pennsylvania [22 Pa. Code § 11.1] 180 days
• Rhode Island [R.I. Gen. Laws § 16-2-2] 180 days
• South Carolina [S.C. Code Ann. § 59-1-425] 180 days (plus three days for mandatory professional development)
• South Dakota [S.D. Codified Laws §§ 13-26-1,9] N/A
• Tennessee [Tenn. Code Ann. § 49-6-3004] 180 days (plus five days for in-service and one day for parent-teacher conferences)
• Texas [Tex. Educ. Code Ann. §§ 25.081, 0811] 180 days
• Utah [Utah Admin. Code R277-419-3(A),4(C)] 180 days
• Vermont [Vt. Stat. Ann. tit. 16, § 1071] 175 days
• Virgin Islands [17 V.I. Code § 61] N/A
• Virginia [Va. Code Ann. §§ 22.1-79.1, 98] 180 days
• Washington [Wash. Rev. Code §§ 28A.150.220] 180 days
• West Virginia [W. Va. Code § 18-5-45(c),(e)] 180 days
• Wisconsin [Wis. Stat. § 121.02(f)] 180 days
• Wyoming [Wyo. Stat. Ann. § 21-4-301] 175 days

Evidence of the need for more learning

"There is absolutely no evidence at all
that adding these two days
had any impact on the learning process."

---Greg Stumbo

This from John Sherffius in Slate:

This from H-L:

Legislators defend cut of two school days

FRANKFORT — Legislative leaders on Friday defended a House proposal that would cut two school days to help balance the state budget. The loss of two instructional days, which were added in 2006, would not impact a child's education, argued House Speaker Greg Stumbo, D-Prestonsburg, and Senate President David Williams, R-Burkesville, during a joint news conference Friday morning.

"If you look at the actual number of instructional hours that we're still allocating, we exceed six of our seven surrounding states," Stumbo said. "There is absolutely no evidence at all that adding these two days had any impact on the learning process."

But education leaders on Friday expressed regret that lawmakers were considering cutting school days and reclaiming $35 million in excess school funding to help balance the state's two-year budget. Reducing the number of school days to 175 will save the state about $34 million each year.

"I feel strongly that reducing the number of days in the school year is going in the wrong direction," said Stu Silberman, superintendent of Fayette County Schools. "I understand the issues with the state budget, but Kentucky already has one of the shortest school years in the country." ...

Stumbo Still Threatening School funds

House Speaker Greg Stumbo continues to rattle the chains toward school contingency funds.

The raiding of contingency funds would further undermine trust in the legislature while promotiong unsound fiscal practices in the schools - all brought to you by a group that understands unsound fiscal policy.

This from the Courier-Journal:

House could ask schools to spend their reserve funds

Not every district would be affected

Cutting funding that local school districts receive from the state and forcing them to spend money in their reserve funds is still an option to help balance the state budget for the next two years, House Speaker Greg Stumbo said Tuesday.

School districts have a total of about $800million in their reserve funds, although Stumbo said not every district's fund would be tapped.

“There's a significant amount of money there that could be (used) to balance the budget,” the Prestonsburg Democrat said. “I'm not saying we are going to do it, but it could be used to supplement the (school funding formula) in this one-time occurrence.” ...

And from H-L:

...Brad Hughes, spokesman for the Kentucky School Boards Association, predicted that any attempt to tap those reserve funds would draw strong opposition from school officials.

Even as lawmakers potentially eye the "rainy day" money, districts have been urged by the state Department of Education to build up contingency funds, Hughes said.

"This would be nothing less than one element of state government telling districts 'don't spend money,' and another part of state government saying, 'and now we're going to take it,'" he said....

Stumbo says he’s open to tax reform

On the heel sof his recent stinko idea...Greg Stumbo has now found a good idea to latch onto.

This from Bluegrass Politics:

A key lawmaker told members of the state House Tuesday that spending on schools, prisons and Medicaid likely will get chopped in the upcoming two-year state budget.

Those bedrock functions of government, which account for about two thirds of state General Fund spending, have been largely off-limits during five previous rounds of budget cuts since Gov. Steve Beshear took office in 2007.

After the pronouncement by House budget committee chairman Rick Rand, which came during a three-hour informational meeting for House members, House
Speaker Greg Stumbo said he is “not afraid” to consider tax reform to keep the state from making crippling cuts in education and human services.

Stumbo, D-Prestonsburg, said he believes the public and state lawmakers might embrace an overhaul of the state’s tax system to avoid huge cuts in education and human services.

Told by a reporter that Beshear and many legislators don’t seem to have an appetite for tax increases, Stumbo responded: “I don’t have an appetite to turn my back on the needs of our state.”...

BS from GS

...but no mention of what Kentucky really needs to help avoid this annual drama. Barring a political miracle - legislative leaders who actually want to solve long-standing revenue problems - Kentucky will still not have what it needs; a new tax code.

This from Speaker Stumbo in C-J:

Stumbo explains stance on 'rainy day' funds

As Gov. Steve Beshear and the General Assembly prepare for the upcoming legislative session, it is becoming increasingly clear that the state's two-year budget will be the most challenging Kentucky has faced since the Great Depression.

Federal stimulus dollars have helped significantly, but unless Congress provides additional funds, the stimulus dollars will run out by the budget's second year. Barring an economic miracle, there will be considerable budget gaps and no painless way to fill them.

We must also consider skyrocketing health insurance and retirement costs, increases in a Medicaid program that already covers a fifth of our population and the growing needs of our schools and universities. Each of these areas must be adequately funded if we hope to move forward as a state.

It was with this in mind that I discussed the possibility of using a portion of the surplus funds that are kept by our elementary and secondary schools for unplanned expenses and “rainy days.”

I want to make it clear that I do not believe these funds can be used for any programs or expenses outside of the school's district. In fact, as attorney general, I filed litigation to protect education dollars.

The surplus funds are a mixture of local and state dollars prudently set aside by the school districts for future needs and expenses. It would be patently unfair to “rob Peter to pay Paul,” but it may be time for Peter and Paul to help themselves more during these rainiest of days.

I believe all options need to be considered as we begin writing the state's budget in the next several months. If this is an unprecedented suggestion, it is because we are in unprecedented times.

In our current budget, kindergarten through high school accounts for more than 40 percent of our state tax dollars; when you add postsecondary schools, the figure for education jumps to 58 percent. Critical health and family services and the judicial and justice systems push the total over 90 percent.

Because so much of the state's budget goes to these areas, they are the ones most affected by cuts that have topped more than $1.5billion during the last two years. Additional cuts are expected to exceed a billion dollars in the upcoming two-year budget. Federal stimulus dollars have helped us balance our current budget, but these are one-time funds and not a permanent revenue source.

I have no doubt that we will find a way to live within our means, but it will not be easy. My goal is to continue protecting, if not increasing, school funding. Reducing money for education would have negative effects lasting for generations. School surplus funds may or may not be part of that equation, but if they can be a bridge to better days, it is an idea that at least deserves to be discussed.

Legislators, BOE balk at Stumbo's Plan to Raid School Funds

This from the Jessamine Journal, Cartoon by Marc Murphy in C-J:

Ky. budget deficit to occupy General Assembly

House Speaker Greg Stumbo’s plan for state lawmakers to consider reaching into local school system’s contingency funds has met a bump in the road from Jessamine legislators and the local school board.

According to an article in The Louisville Courier-Journal, Stumbo has discussed his plan with Gov. Steve Beshear, who has not weighed in on with his thoughts.

State Rep. Bob Damron, D-Nicholasville, and state Sen. Tom Buford, R-Nicholasville, both agree the plan doesn’t stand much of a chance come January when the General Assembly begins its 2010 session.

“I think Greg may have been misquoted,” Damron said. “I don’t think that there’s any way that the legislature can do that.”

Damron said that each school system has reserve money set aside for different reasons.

“It’s imperative that districts keep an adequate fund balance for the issuance of bonds to provide support for the bond rating,” he said. “Other districts have money set aside for future building needs, like Jessamine County. Jessamine County has set aside some money in their surplus in order to start up a new school.”

Damron also said the legality of the state taking from the school districts would not be favorable...

This from the Ledger Independent:

'Rainy Day' robber

Dear Speaker Greg Stumbo,

Let me get this straight.

You are proposing -- or at the very least raising the possibility -- that the State of Kentucky confiscate the "Rainy Day" contingency funds of school districts throughout the Commonwealth in order to balance the state budget in 2010.

Is that right?

Taxpayer money that has been set aside for the education of our kids in school districts that have carefully managed their finances will be robbed to balance a state budget that is out of control.

Am I missing something?

You are suggesting that lawmakers in Frankfort, instead of making the tough decisions and living within the means provided to them by the working people of this state, simply declare that emergency funds set aside in school districts be seized and thrown into the bottomless pit you call state expenditures?

Come again?

I ask because a news story earlier this week quoted you as saying:"We do have a bunch of money that the schools have saved in their budgets, their 'Rainy Day' funds...and there's a pretty good sum of money there which will help us get through."The story went on to say that state officials are predicting a $161 million shortfall in the current fiscal year which ends on June 30, 2010. Officials said the outlook is even worse in the next two fiscal years.

From your standpoint, I assume that is the bad news. But there is good news as well. The story went on to say:"Tom Shelton, superintendent of the Daviess County school system, has studied the issue and estimated that the contingency funds of all districts total $300 million to $400 million."School districts are required to keep at least 2 percent of their annual expense budgets in a contingency fund and districts are actually encouraged to set aside more. Those districts who have followed the state mandate and have carefully controlled their expenses have the most to lose.

Mr. Speaker, these are very difficult economic times. Businesses small and large across this state and across this nation have been forced to make tough decisions. Good employees have been terminated, plants have been consolidated or closed.

Management and workers have taken salary reductions and seen benefits reduced.

We expect -- in fact we demand -- that state government face reality and reduce its size and its presence. Get a realistic projection of the funding you expect to have and then create from scratch a budget that will match that number.

It will not be easy. There will be pain both in Frankfort and in every community that has a state government office. Fewer state employees will be asked to do more work. Benefits -- including 30-year-and-out retirements, double dipping and generous medical benefits will need to be reduced.This is what you have been hired to do, so do it.

Rob the rainy day funds of local school districts so you are not forced to make these tough decisions and put off the Reckoning Day for another year?

That's a coward's approach.

This from the News Enterprise:

Superintendents oppose using contingencies for state

HARDIN COUNTY — Local superintendents have expressed concern over a state budget fix that was suggested this past week, and local legislators have mixed feelings about the idea.

Nannette Johnston, superintendent of Hardin County Schools, and Gary French, interim superintendent of Elizabethtown Independent Schools, both opposed the idea of taking money from school district contingency funds that House Speaker Greg Stumbo, D-Prestonsburg, publicly proposed last weekend.

Stumbo said legislators might consider using some of the money set aside in district contingency funds, which is money all districts are required to set aside in case of emergencies and for use on special projects, as a way to help balance the upcoming biennium budget.

Districts are required to have at least 2 percent of their total budget in the contingency fund.

French said EIS has been very conservative with spending to build a solid contingency fund, which he said the district has for large, expensive purchases it must make.

“I would hate to see those sacrifices we’ve made” not serve the district, he said.

EIS’ contingency fund contains about $2.7 million...

Stumbo's Historically Stinko Idea

Scorecards!

Get Your Scorecards!

You can't tell a Stumbo from a Williams without a Scorecard!

Continuing the too-oft dubious tradition of the Kentucky legislature this week, House Speaker Greg Stumbo, (D) Prestonsburg, sounded more like another infamous legislator we know - (R) Burkesville.

Stumbo proposed the idea of recapturing school contingency funds to balance the state budget. This glaring disincentive to efficiency and frugality stands in history along side:

• the Seminaries of Learning Act (1798) where the legislature created a fund for schools only to divert the fund for non-school purposes;
• or the time in the 1830's when they received $1,433,754 as a gift from the national government to build schools but raided the fund and passed a law requiring the governor to burn the bonds on the capitol steps;
• or later when the Constitution of 1850 finally required the establishment of a school fund and declared it inviolable - and the legislature refused to put any money in it.

Stumbo's stinko idea can stand equally with these examples of bad governance. All to avoid the tough decision - a reformed tax code.

This from the Bowling Green Daily News:

Stumbo: State may need

school contingency funds

Kentucky lawmakers may consider dipping into local school districts' contingency funds to help balance the 2010-12 state budget, according to House Speaker Greg Stumbo.

Stumbo, a Prestonsburg Democrat, told The Courier-Journal in an interview this week that he has discussed the issue with Gov. Steve Beshear, who did not indicate his position.

"We do have a bunch of money that the schools have saved in their budgets, their 'Rainy Day' funds," Stumbo said. "And there's a pretty good sum of money there which will help us get through."

Various estimates say the funds contain hundreds of millions of dollars.

School officials say they are strongly opposed to the idea because they need those funds to balance their own budgets during tight economic times.

A preliminary state revenue forecast this week predicted a $161 million shortfall for the current fiscal year, which ends next June 30. The outlook looks worse for 2010-12.

Brad Hughes, spokesman for the Kentucky School Boards Association, said any effort to tap the contingency funds would be unfair to districts that have prudently saved more. He said such a move could be illegal because contingency funds include money raised with local taxes.

"But the most obvious concern of school districts is what happens if they get hit in the middle of the year with something like a major heating and cooling problem or something like that that could cost $50,000 to $100,000," Hughes said....

This from H-L:

Irresponsibility on tax reform

A recession worse than anything this nation has experienced in 70-plus years is a dominant factor in state government's dismal budget outlook. But Kentucky's fiscal fortunes were gloomy well before the big crash of late 2008.

State lawmakers started robbing Peter to pay Paul years ago, irresponsibly passing budgets "balanced" by vacuuming up every dime from a variety of funds state agencies and even universities generate through their own activity.

Our representatives and senators turned to a "smoke and mirrors" approach to budgeting because they simply lacked the backbone to do the right thing: Pass the kind of real tax reform that could provide state government with a stable, sustainable revenue base.

So, here we are again, preparing for another two-year budget cycle with dreary revenue prospects and the federal stimulus dollars that helped fill a $1 billion hole in the current year's spending plan set to expire. And what's the first plan that comes to legislative leaders' minds?

Why, robbing Peter to pay Paul again. Only this time, Peter is a schoolchild.

In an interview with The Courier-Journal last week, House Speaker Greg Stumbo proposed the atrocious idea of raiding local school districts' contingency funds to help lawmakers avoid their responsibility again. ...

Every dollar taken away from educating the youth of this state is a dollar deducted from this state's ability to compete in the modern high-tech, information-based economy.

Both Stumbo and Gov. Steve Beshear argue that taxes shouldn't be increased during this recession. But there is no better time than a recession to pass real tax reform that moves the state away from a tax structure that relies on retail sales and toward a tax structure that captures the growing service sector of the economy.

Reform of that nature may be revenue neutral on Day One but will soon pay dividends for the state — and help balance budgets without robbing Kentucky's schoolchildren.

This from the Paducah Sun (subscription):

‘We have been frugal' McCracken Supt criticizes

talk of using school surpluses

Kentucky House Speaker Greg Stumbo’s proposal to tap local school district surplus funds to balance the education budget is drawing strong opposition from local school superintendents and generating questions for Gov. Steve Beshear.

Each school district is required to maintain a cash surplus equal to at least 2 percent of its budget. The surplus is set aside to cover emergencies and unexpected increases in costs.

Most school districts maintain contingency funds equal to about 5 percent of their
budgets. But some carry more than 20 percent.

McCracken Superintendent Tim Heller said it would be irresponsible of the legislature to take that money away.

“We have been frugal to cut expenses and build a contingency fund, and for the legislature to threaten to take it away is pretty ridiculous,” Heller said, whose district’s surplus sits at about 6 percent of its budget or $3 million.

“If that happens, I’d have no respect for the legislature.” Heller asked Beshear about Stumbo’s idea on Monday when the governor visited Paducah to announce the appointment of a task force to take a new look at education reform that started in 1990.

The governor said he’s talked with Stumbo but hasn’t made any commitments. He said he doesn’t know what he’ll recommend to balance the budget until he begins formulating the 2010-12 plan that he’ll present in January to lawmakers...

Beshear says stimulus funds won’t offset cost of new tax breaks

This from Bluegrass Politics:

FRANKFORT — State officials are still trying to determine how much the state must cut from its budget because lawmakers approved a host of tax breaks included in a bill that was signed into law on Friday by Gov. Steve Beshear...

Beshear had been planning on trimming 2.6 percent from most state agencies, excluding Medicaid, higher education, the per-pupil spending formula for K-12 education and a handful of other programs. Now, most state agencies will take much larger cuts to offset the cost of the three new incentive programs, which take effect in the next few months.

House Speaker Greg Stumbo, D-Prestonsburg, suggested on Wednesday that
Beshear could use more federal stimulus money to offset the cost of the incentive programs, but Beshear has no such plans, said spokesman Jay Blanton.

“We have no intention to dip further into the stimulus funds — the 45 percent set aside for the next fiscal year — to make up additional cuts,” Blanton said....

Slots plan would provide up to $700 million for schools

This from Bluegrass Politics:

FRANKFORT — House Democrats hope to use gambling proceeds from slots at racetracks to fund a large-scale program that would spend up to $700 million replacing dozens of the state’s oldest school buildings.

House Speaker Greg Stumbo, D-Prestonsburg, said the proposal would stimulate the stagnant economy and improve schools, but critics suggested that Democrats are simply promising construction projects to lawmakers who agree to support slots....

It would use tax revenues generated by video lottery terminals to pay off bonds that would fund the replacement of all schools that are 40 years or older, known as category five schools, and some that are 30 to 40 years old, known as category four schools.

There are approximately 16 schools older than 40 years. Another 142 are 30 to 40 years old, including two in Fayette County, according to the Kentucky Department of Education.

The two in Fayette County are Clays Mill Elementary and Mary Todd Elementary.

The total cost to replace all of the category five and four schools is more than $708 million. But Stumbo said it’s unlikely that all of the schools would be replaced...

Stumbo: Beshear’s budget plan spares education, Medicaid

Cuts most other agencies 2.6%

This from Bluegrass Politics:

FRANKFORT — Gov. Steve Beshear’s plan to deal with a projected $996 million budget shortfall will not call for cutting higher education, the main funding formula for K-12 education and Medicaid, according to House Speaker Greg Stumbo.

Most other state agencies would face a 2.6 percent reduction, he said.

Beshear outlined his plan to address the budget shortfall for fiscal year 2010, which begins July 1, in a private meeting Wednesday with legislative leaders. He has scheduled a news conference for 3 p.m. Wednesday to unveil the plan he will ask lawmakers to consider in a special legislative session to begin June 15...