Illinois School Funding Reform Commission Meeting Minutes Meeting Summary as Approved by Commission Members Wednesday, February 1, 2017 10:00 a.m.–1:00 p.m. Illinois State Board of Education, Videoconference Room (3rd Floor), 100 N. First St., Springfield, Illinois Illinois State Board of Education, Videoconference Room (14th Floor), 100 W. Randolph, Suite 14-300, Chicago, Illinois Attendees Commission Members Springfield Avery Bourne Representative, 95th District Andy Manar Senator, 48th District Jodi Scott Regional Superintendent of Schools for Henderson, Knox, Mercer, and Warren Counties Fred Crespo Representative, 44th District Sheri Jesiel Representative, 61st District Karen McConnaughay Senator, 33rd District Barbara Flynn Currie Representative, 25th District Kimberly Lightford Senator, 4th District Bob Pritchard Representative, 70th District Iris Martinez Senator, 20th District Beth Purvis (Chairperson) Secretary of Education Rita Mayfield Representative, 60th District Christine Winger Representative, 45th District Chicago William Davis Representative, 30th District James Dimas, Secretary, Department of Human Services Illinois State Board of Education Dan McConchie Senator, 26th District Illinois School Funding Reform Commission Meeting Minutes—1 0564_02/17 Call-In Participants Jason Barickman Senator, 53rd District Jennifer Bertino-Tarrant Senator, 49th District Emily McAsey Representative, 85th District Chris Nybo Senator, 24th District Sue Rezin Senator, 38th District Illinois State Board of Education (ISBE) Staff Amanda Elliott Legislative Affairs Allie Lichterman Superintendent’s Office Kate Anderson Foley Division Administrator Tony Smith State Superintendent of Education Robert Wolfe Chief Financial Officer Midwest Comprehensive Center (MWCC) Staff Jeremy Rasmussen Meeting Objective To amend the draft report where needed and achieve consensus. Opening Representative Crespo motioned to approve the meeting minutes from January 12. Mr. Dimas seconded. Dr. Purvis began the meeting by reading the original letter from the governor advising that an education funding reform commission be developed. After reading the letter, Dr. Purvis said there has been a tremendous amount of bicameral work that the commission has accomplished. She thanked everyone who has played role in helping the commission understand the various complex issues of education funding in Illinois. She said this report/framework will be used for the General Assembly to come together and craft legislation. She said this report will only be as useful as what comes next. She said the governor and ISBE team stand ready to work with the individual caucuses. Dr. Purvis then suggested a motion that this be accepted as a bicameral report. Afterward, the commission will review the places in the report they feel do not accurately reflect the areas of consensus. This way, the commission can determine what additional items may go in or come out. Illinois State Board of Education Illinois School Funding Reform Commission Meeting Minutes—2 Representative Pritchard moved to accept the motion. Representative Davis seconded. Amendments to the Draft Report Representative Currie said the language about pension disparity between Chicago and the rest of the state needs to be part of the report. Dr. Purvis said that pension disparity between Chicago and the rest of the state is addressed in the final paragraph on page 2 of the report: “It is necessary to face the challenges of adequate school funding head-on. The state currently spends about $11 billion on elementary and secondary education, including about $4 billion for current and legacy cost of teacher retirement. Without clearly identified resources for the framework, the $11 billion in spending will continue to be inadequate and inequitable. In addition, the $4 billion in current pension expenditures do not contribute to any formula goals of adequacy and equity. Any transitions to a new formula will also bring challenges.” Representative Currie said that language does not answer the problem that she is raising. She said her point is that $4 billion goes to pensions, but it doesn’t go to Chicago. Dr. Purvis then read from the top of page 5: “Both the normal costs of pensions and statewide pension liabilities affect the ability of the state to make strides toward adequate school funding. As reported by multiple expert presenters to the Commission, differences in salaries across the 852 school districts create further inequity via disparities in pension contributions.” Representative Currie said that the language too does not address the fact that Chicago gets nothing. She suggested adding language to the report that states: “CPS also is the only school district in the state that must pay its own employer contributions to its teacher pension fund. Although both of these situations were discussed on multiple occasions, the commission could not come to consensus on how parity could be achieved.” Dr. Purvis suggested adding a sentence at the top of page 5 that states: “…compounding that issue, CPS is the only district responsible for paying its own pension costs.” Mr. Dimas asked on page 3, in the second paragraph, if it would be helpful to include language that state funding alone is unlikely to be sufficient to fill the gap and that new service delivery approaches also may be needed. Representative Currie said she absolutely agrees with that. It was then discussed exactly where on page 3, in the second paragraph, this new language would be inserted. Mr. Dimas then talked about the community school concept, which would help certain schools co-locate service delivery programs. Having such services available in or near schools would Illinois State Board of Education Illinois School Funding Reform Commission Meeting Minutes—3 make those services more accessible. He said prioritizing those services is something worth investing in, especially in addressing concentrated poverty. Representative Currie said what Mr. Dimas is describing has to be part of how we (the commission) define education funding. Dr. Purvis said one of the goals of this administration is to determine how to better align the resources across different human service agencies. She said Mr. Dimas’s language puts forth the intent that the work that will be done by the General Assembly to ensure a better funding formula has to be coordinated with existing services across the other agencies that oversee education funding. Representative Crespo said that paragraph 3 on page 3 mentions the $3.8 billion over 10 years. He asked: Should the assumptions that go into the $3.8 billion be spelled out (e.g., baseline number being used, rate of inflation)? Dr. Purvis suggested cutting out all the language after this text: “Elements will be written into statute. However, it is important to the members of the commission that there be flexibility in their implementation so the districts can implement strategies that will lead to the best academic and social emotional outcomes for their students. After three years of the initial implementation, ISBE should suggest changes where warranted.” Representative Crespo said he thinks a range should still be mentioned ($3.8 billion over 10 years). Dr. Purvis said her concern is that we do not know at this moment what the range is, so it might be better to take it out rather than leave it in. Representative Jesiel said she was hesitant to take out the language at the end of paragraph that discusses the $3.8 billion range. Dr. Purvis suggested just taking out the “$3.8” and leave it at “billions.” After some discussion, it was decided that the language should state: “A minimum state contribution of $3.5 billion.” Then, in the sentence where it says “In fact, for the state to take primary responsibility for educational funding (i.e., 51%),” this will be added: “That figure ($3.5 billion) would rise by at least $2.5 billion.” It also was suggested that the language around a “ten-year timeframe” (on page 3) should be changed to “over the next decade.” Senator McConchie asked: Does arguing this (for the state to take primary responsibility for educational funding) go beyond what the courts have interpreted the constitution to mean? Representative Currie said she believes that is an important point, but you could change it by saying “For the state to take an increasingly larger share of responsibility for education funding,” which would then avoid the question of what does “primary” mean. Illinois State Board of Education Illinois School Funding Reform Commission Meeting Minutes—4 The language now reads: “In fact, for the state to take an increasingly larger share of responsibility for education funding (e.g., 51%), this figure is projected to rise by at least $2.5 billion. However, the rate at which we achieve that goal has not yet been decided. Furthermore, this figure does not account for additional capital needs of the districts.” Dr. Purvis then asked if there are any more changes. Representative Mayfield said on page 5, in the third paragraph, it says that the money can be used for direct services of professional development. Then, a couple of sentences later, it says the money can’t be used for professional development. She said clarity is needed here. Page 5, paragraph 3, was then edited to reflect greater clarity. Representative Mayfield also said the concept of a cost shift (as related to pensions) is not addressed in the report. Dr. Purvis said that’s because consensus was never reached on the concept of a cost shift. It was then recommended that the subject of cost shifts be added to the outstanding issues requiring the resolution portion of the report. Dr. Purvis suggested this language: “Although the commission has had robust conversation about the effects of pension costs on school funding, no consensus has been met.” Dr. Purvis said you can come up with a standalone education bill that does not address pensions, but addresses adequacy and equity. She said that’s why this language wasn’t included. Senator McConnaughay asked if there is consensus around the idea that we need to get the cost shift accomplished, but lack of consensus on how to get there. There did not appear to be consensus. Dr. Purvis said her recommendation would be to not have this language reflected in the framework. She said it hasn’t received the same attention as other issues. There was a question of how this conversation on pensions is different compared to what Representative Currie brought up earlier in regard to CPS and pensions. On this note, Dr. Purvis said there are things in the current school code that treat districts differently. She said CPS is one of those things. Representative Currie added that CPS being the only school district in the state that must pay its own employer contributions to its teacher pension fund is a factual statement. The issue being discussed here (pensions and cost shift) is how do we in a report, where we have not decided anything, mention that issues may need to be resolved at some point down the road? Illinois State Board of Education Illinois School Funding Reform Commission Meeting Minutes—5 Regarding mandate relief, Representative Currie said those mandates go there because somebody thought they would be helpful in reaching appropriate educational outcomes. She said the section on mandate relief comes off as advocating for the removal of mandates. Senator McConchie suggested adding language to this effect: “Over a hundred unfunded mandates have each been approved by the general assembly and signed by the governor.” After a brief conversation, it was tweaked to read as follows: “Over a hundred unfunded mandates have each been approved by general assemblies and governors.” Representative Currie asked if they could make a couple of changes in the CPS block grant discussion on page 7 under “Mandate Relief”: “…in this respect, CPS is unlike any other district.” She suggested referencing the CPS pension issue here again. Dr. Purvis suggested having the first sentence end like this: “As discussed in the commission, CPS currently receives additional funds through the special education, special education transportation, and other line items via block grants. They would receive a lesser amount if they applied for reimbursement of those funds.” Dr. Purvis also recommended another line that states: “Data indicate that CPS is spending these funds appropriately for these purposes.” Representative Jesiel pointed out that on the bottom of page 4, in regard to the local capacity targets, she was concerned that the language wasn’t strong enough to compel the general assembly to revisit the issue of property tax relief, especially for districts that are taxed high and are not at adequacy. Dr. Purvis said one idea discussed earlier was the ability for districts to have a referendum specifically to lower the tax. She then suggested making the language stronger, as follows: “…with the expectation that this issue would be addressed.” Representative Jesiel was satisfied with Dr. Purvis’s suggestion. Senator McConchie asked to look at page 5, paragraph 2, regarding no change to the Early Childhood Block Grant. He said there is no context that spells out what is meant by that. Dr. Purvis said the way the CPS block grant is set up is that there are specific slots based on geographical location in the state. Although CPS has a higher proportion of those slots than they do students around the state, it is because they have a higher proportion of low-income students. The recommendation made earlier was for the block grant to specifically meet the needs of lowincome students in certain areas of the state. To keep it the way it is, with those slots, reflects that intention. Representative Currie said she liked Dr. Purvis’s explanation, but that context is missing in the report itself. Ms. Scott said one of the issues from the early learning community is that the block grant continues to be a separate line item and does not necessarily stay the same. Illinois State Board of Education Illinois School Funding Reform Commission Meeting Minutes—6 The commission agreed that Ms. Scott’s point (that the block grant continues to be a separate line item and does not necessarily stay the same) would be a good change in the language. The language around “no change to the block grant” was changed to read: “Consensus was reached to leave the early childhood funding line item out of the integrated formula.” Representative Currie wondered whether it was necessary to talk about private school choice. She said the commission never came to consensus on that issue (located in unresolved issues). Dr. Purvis said it’s an issue important to the governor and that we (the governor’s office) have received a lot of requests that this issue (private school choice) be considered. Dr. Purvis asked, “Given all the changes that have been discussed, is there consensus that this report represents a framework to be used by members of the general assembly with support from the governor’s office for future conversations about school funding reform?” All commission members were in favor, none were opposed, and none abstained. Dr. Purvis gave a sincere thank you for all the hard work from commission members, advocacy groups, and experts. Representative Pritchard motioned to adjourn. The motion was seconded by Representative Mayfield. The meeting adjourned at 12:03 p.m. Illinois State Board of Education Illinois School Funding Reform Commission Meeting Minutes—7
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