Summary of SF 445 & Categorical Funding Roll-In
In 2008, the Legislature rolled teacher compensation, Phase II, professional development, and early intervention/class size funding into the school aid formula. This provided a sustainable source of funds. SF 445, Teacher Compensation Integration Bill, requires school districts to combine all salary funds and bargain one salary system. A summary of SF 445 is below. Since the categorical funding roll-in affects SF 445, an explanation of last year’s legislation is also included.
SF 445
SF 445 requires school districts and area education agencies to combine regular wages with the teacher salary supplement (explained below) to create one salary system starting July 1, 2010. If a salary schedule is used, one salary schedule is required to be used for regular wages and the teacher salary supplement. The salary schedule must incorporate the salary minimums of $28,000 for beginning teachers and $30,000 for career teachers. The new salary system/salary schedule will be bargained according to Chapter 20. If the teacher salary supplement cost per pupil is ever reduced, the reduction is also required to be bargained. School districts and AEAs will no longer be required to account for teacher compensation and Phase II separately. They must certify to the Department of Education that the funds were used for salaries. Eliminates Phase I and Phase II because Phase I will be appropriated annually and Phase II has been rolled into the school finance formula as teacher salary supplement. Most of SF 445 is technical language or current language rewritten. The actual new language includes:
2. a. For the school budget year beginning July 1, 2010, and each succeeding school year, school districts and area education agencies shall combine payments made to teachers under sections 257.10 and 257.37A with regular wages and create one salary system. If a school district or area education agency uses a salary schedule, one salary schedule shall be used for regular wages and for distribution of payments under sections 257.10 and 257.37A, incorporating the salary minimums required in section 284.7. b. If the licensed employees of a school district or area education agency are organized under chapter 20 for collective bargaining purposes, the creation of the new salary system shall be subject to the scope of negotiations specified in section 20.9. A reduction in the teacher salary supplement per pupil amount shall also be subject to the scope of negotiations specified in section 20.9. c. If the licensed employees of a school district or area education agency are not organized for collective bargaining purposes, the board of directors shall create the new salary system. The board of directors shall determine adjustments in salaries resulting from a reduction in the teacher salary supplement per pupil amount. 3. A school district or area education agency shall not be required to maintain a separate account within its budget based on source of funds for payments received and expenditures made pursuant to this section. The school district or area education agency shall annually certify to the department of education that funding received pursuant to sections 257.10 and 257.37A was expended on salaries for qualified teachers.
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Summary of SF 445 & Categorical Funding Roll-In
Categorical Funding Roll-In
Teacher compensation allocation, Educational Excellence Phase II, professional development, and the Early Intervention Block Grant are integrated into the school foundation aid formula starting in 2009-10. A new teacher salary supplement cost per pupil, professional development supplement cost per pupil, and early intervention cost per pupil will be added to the school aid calculation. The teacher salary supplement consists of teacher compensation allocation and Phase II funding. The 2009-10 per pupil amount is calculated by taking the 200809 funding and dividing it by the October 2008 enrollment. This results in school districts receiving the same amount of funding for both years. The new categorical supplement cost per pupil will only generate additional state aid. No property taxes will be generated. Beginning in the 2009 Legislative Session, the General Assembly has to approve categorical allowable growth in a bill that is separate from regular allowable growth. The 2009 Legislative Session has set allowable growth for 2010-11 at 2.0%. The average cost per pupil will be multiplied by 2.0%. That amount will be applied to each district’s categorical costs per pupil. Starting in 2010-11, school districts are guaranteed 100% of the previous year’s funding level.
Current Situation of State Salary Funding
2008-09 Phase I and Phase II was reduced by the 1.5% across-the-board reduction. Teacher compensation allocation was also reduced by the 1.5% but the Legislature and the Governor have committed to totally restoring the teacher compensation allocation. 2009-10 Phase II and teacher compensation allocation will be rolled into the teacher salary supplement in the school aid formula as described above. The 2009-10 funding level will be the same as the original 2008-09 funding level before any cuts. The teacher salary supplement (teacher compensation and Phase II) will be included with the regular school aid payments. Phase I will be appropriated separately by the Legislature. The teacher compensation distribution will be determined by bargaining. Teacher compensation payments must be divided evenly over the pay periods and begin no later than October. The beginning minimum of $28,000 and career minimum of $30,000 is expected to remain unchanged. 2010-11 Regular wages must be combined with the teacher salary supplement (teacher compensation and Phase II) and create one salary system/salary schedule (See above). The funding will increase by allowable growth rate of 2.0%. The amount for each school district will be known after October 2009 enrollment is determined. Page 2 of 2