KASS Legislative Update – January 22, 2021

As expected, Governor Beshear vetoed some recently passed bills, notably HB1, HB5 and SB1, which sought to limit the emergency executive powers of the Governor. These bills will go back to the General Assembly where they could override the vetoes or consider revisions to them.  The Kentucky General Assembly will resume its 2021 Legislative Session on February 2nd according to the published calendar. We continue to monitor the bills that have been filed.  Review the report at the following link for more information:

KASS Legislative Report January 22, 2021

Please refer to the KASS Legislative and Advocacy Priorities when you’re talking to legislators and others.  When we are unified with our talking points, we are more effective in our advocacy!  Keep up the great work advocating for our students, the professionals who serve them and public education in general!

During this “quiet time” is an excellent opportunity to speak with your legislators.  Below are some suggested priorities with talking points to include in your advocacy work!


BUDGET ADVOCACY TALKING POINTS – Contact Legislators to Urge a Strong Education Budget

Though the legislature will not be in session, we expect work will continue on the budget plan (HB192) in the budget conference committee.  We anticipate both A&R Committee Chairs along with members of leadership in both chambers will serve on the pre-conference budget committee.  In light of the federal relief funding that will help with the costs associated with the pandemic and supporting efforts to address the education recovery needs of students, legislators will want to know what state budgetary needs our schools have for FY22.  It is important to help our legislators and others understand that the federal funds are one-time/short-term funds that will support our pandemic response along with the recovery needs as we come out of the pandemic including the education recovery needs. The federal funds should supplement – not supplant – the state funding, which provide the ongoing, foundational programming for our schools.  The base funding through SEEK also has a significant impact on future funding as well.  The responsibility of the state is to provide adequate and equitable funding for public education as called for in our state constitution.

Our main priorities are as follows – Quick Talking Points:

  • Provide an inflationary increase to the SEEK Base.
  • Continue to appropriate the full actuarially determined contributions to TRS.
  • Funding of the Statutory Requirement for the Medical Insurance Trust Fund for Retiree Health Insurance.
  • Continue to equalize local nickel taxes levied by school boards for facility improvements.

More Detailed Talking Points:

Provide an inflationary increase to the SEEK Base: We need at least a modest increase in the SEEK base to offset inflationary trends impacting FY22 including an anticipated growth in real property assessments. We continue to hear from folks in the construction and real estate markets that business has been good. As you know, when property assessments increase and the SEEK base stays flat, the net effect is a loss of revenue for the local district. While we support pay increases for school district staff, it must come from a reliable, recurring revenue stream and be “across the board” for all staff.  The best reliable and recurring revenue stream is SEEK.  Funding SEEK is a priority.

Continue to appropriate the full actuarially determined contributions to TRS: The pension fund of TRS has benefitted as a result of the General Assembly’s recent commitment to fully fund the ARC and pay down the unfunded liability.  This is a long-term commitment that needs to be sustained.  The system has benefited positively from the investment by the Legislature and strong performance growth of the fund.  In fact, it has grown from $1.8 billion in 1985 to $20.7 billion in 2020, despite negative cash flows (Contributions minus benefits paid out).

Funding of the Statutory Requirement for the Medical Insurance Trust Fund for Retiree Health Insurance: Full funding of the statutory required contribution to the Medical Insurance Trust Fund for Retiree Health Insurance as approved by the legislature in 2010 is a critically important investment as well.  This fund is quickly approaching full funding, projected as soon as 6 years from now. Though it is ahead of schedule, the fact is the fund is NOT 100% yet. We support maintaining this investment to keep this fund on track to full funding as was envisioned when we all joined together in 2010 to address this important issue.  It is important to remember that this partnership between the state, TRS members, and school districts saved the state over $5 billion.  Let’s stay on track with this investment.

Continue to equalize local nickel taxes levied by school boards for facility improvements: The partnership between local communities and the state is exemplified in the facility funding investment that support new school projects in Kentucky. We support the full funding of the equalization which is so important to these projects which improve the schools and provide a boost to the local and state economies.

It is very important you and your local stakeholders communicate the importance of the state budget in funding public education.  The Council for Better Education SEEK Overview Reports tell a compelling story of how local communities are paying an increasing proportion of the education costs.  In fact, on average statewide, local communities are providing about 52% of the total SEEK funding which is a 12% increase since 2008.  Public education is a state responsibility by constitution and the foundational funding should be provided to ensure adequate and equitable funding for education across our Commonwealth.

ACTION ALERT: Urge Legislators to Vote NO on HB149 and SB25

HB 149, sponsored by Rep. Chad McCoy, R-Bardstown, proposes the formation of Education Opportunity Accounts with the intent of providing tax credits to wealthy donors to give families the ability to use public dollars for private school tuition and for education-related expenses for all families.  While KASS does not oppose the right of families to choose the educational setting and program for their children, we do strongly oppose any privatization of public funds for education.  This bill proposal is an effort to privatize public funds for education under the guise of school choice.  Its sister companion in the Senate is SB25, sponsored by Sen. Ralph Alvarado, R-Winchester. 

We need to contact our legislative delegates ASAP urging them to oppose these bills.  

QUICK TALKING POINTS

  1. The bill does not target low-income families. Households making $96,940 per year for a family of four would be eligible – that number becomes $121,175 in income in the second year! In most KY communities, this is not disadvantaged. As a result, this proposal will leave our most vulnerable and disadvantaged students even further behind.
  1. The bill would mean lost General Fund Revenue, with a potential loss of $205 million in the next five years. This would be the only tax credit in Kentucky to balloon automatically over time. In fact, in just over 10 years, Kentucky stands to lose more than $1 billion in lost revenue with no economic return on investment. Use this graphic to show this impact to Kentucky revenues.
  2. This bill shift funds that could have been used to support public schools statewide to private schools which are concentrated in the population centers. Rural communities will lose in this funding shift, placing more pressure for local communities to raise taxes.
    1. This graphic to show the impact of funding shifts to local communities.
    2. Map of KY counties with certified private schools.
    3. Map of KY counties without certified private schools.
  3. The bill does not create accountability for participating schools. Parents do not really have “choice” if they don’t have any data to compare between schools. Private schools do not participate in the state accountability system, do not have to comply with Open Meetings and Open Records, do not have to show data on disproportionality in disciplinary actions, expulsions, and do not have to serve English Language Learners. They can also cherry pick from among the applicant pool to accept only the highest-performing students and turn away students that may be more difficult to serve. Because of the lack of accountability, the funds will be more susceptible to misuse, fraud, and malfeasance.
  1. The bill allows outright discrimination, creates privacy concerns, and could expose families to predatory vendors. Section 11(4) allows education service providers to discriminate against students and families based on their religion or sexual orientation at a minimum. The bill also prohibits unaccompanied youth from participating in the program. Predatory marketing could suck up program dollars without providing any measurable benefit to students and families. And, the bill does not require education service providers (ESPs) and account granting organizations (AGOs) to be FERPA compliant.
  1. We oppose any tax credits that don’t have a clear economic return on investment. This proposal has no economic return for the state. It doesn’t create new jobs. It doesn’t create a new revenue stream for Kentucky. Why should this “pet project” receive a tax credit while other interests do not? I had one person say, “I want a tax credit for donations to our local Boys and Girls Club, or Big Brothers/Big Sisters.” Another said, “This is like cutting the State Police to give someone a credit for putting in a home security system.” Individuals, including the wealthy, already get a tax deduction for donations to private schools and public schools. There is no need to favor this proposal over other worthy causes for a tax credit.  In fact, the Kentucky General Assembly’s taskforce that studied tax expenditures recommended no new tax expenditures including tax credits.

Here are the detailed talking points and information in opposition to HB149 and its sister bill in the senate.  Additionally, you can use the KASS Legislative and Advocacy Priorities to support your conversations with legislators.

 

Here are links to some important information regarding the Legislative Session:

LRC Website

Regular Session Calendar

Standing Committee Meeting Schedule

Weekly Legislative Calendar

Bills Home Page

2021 Pre-filed Bills

Legislators

Legislative Message Line – 800-372-7181

 

Again, it is very important we communicate with our legislators between now and February 2nd when they resume the 2021 Legislative Session.  As always, feel free to contact me or Greg Coker for any questions or assistance.

Thanks for you leadership and advocacy!  Lead Onward!

Jim

Dr. Jim Flynn
Executive Director
Kentucky Association of School Superintendents
87 C. Michael Davenport Blvd.
Frankfort, KY 40601
270-776-0444
www.kysupts.org
Follow me on Twitter @jimflynnkysupts