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By Otto Fajen
MNEA Legislative Director

March 29, 2007
Number 12


LEGISLATURE RETURNS FROM SPRING BREAK

The legislature returned to session on Monday, March 26. MNEA’s Capitol Action Days will take a break this week and start again on April 3.

HOUSE COMMITTEE PASSES SCHOOL RETIREMENT BILL, BUT IS IT THE END OF THE LINE?
The House Special Committee on Retirement heard Senate Bill 244 (Rob Mayer) on March 29. The bill will enact a five-year extension for two key provisions of Public School Retirement System law: the “25-and-Out” option and the enhanced 2.55 percent benefit factor for retirees with 31 years of service or more. Both provisions will expire on June 30, 2008, if not re-enacted prior to that date.

Missouri NEA strongly supports the bill. A logical system for teacher retirement must take several factors into account. Teachers and other education employees who have 25 or more years in the profession should continue to have the option of retiring with a fair return for their years of service. At the same time, educators who choose to give more years of service, from 30 to 35 years, should be rewarded with higher levels of retirement benefits.

The committee adopted House Committee Amendment 1 (Danielle Moore) that includes an additional benefit for already retired members over age 75 who have reached the 80 percent cost-of-living adjustment cap. Rep. Maynard Wallace offered an amendment to the amendment to delay the effective date for this change until the system contribution rates return to 10.5 percent for the PSRS and five percent for the Public Education Employee Retirement System, as provided in current law for other benefit increases, but his amendment was defeated. Missouri NEA urged the committee not to include HCA 1, since the amendment has an extra cost that may cause the bill not to be taken up on the House floor and, thus, kill the bill. The committee also adopted HCA 3 (Sara Lampe) that limits increases in final average salary used for calculating retirement benefits to the district average increase over the same years. The committee incorporated the two amendments into House Committee Substitute/S.B. 244. Despite this setback, Missouri NEA will continue to seek every opportunity to ensure that the “25-and-Out” and enhanced 2.55 percent benefit factor are extended.

TABOR RETURNS
The House Budget Committee will hear House Joint Resolution 20 (Carl Bearden) on April 3. HJR 20 is a constitutional spending limit similar to the Colorado provision known as “TABOR,” or the so-called “Taxpayer Bill of Rights.” The HJR would impose a permanent, constitutional spending limit on state government and would limit annual growth in state appropriations to a cost-of-living adjustment factor plus a population growth factor.

Missouri NEA strongly opposes this unneeded restriction. Legislators should be able to construct a consensus revenue estimate and appropriate according to that estimate. HJR 20’s limit would cause Missouri government to shrink year-after-year relative to the size of the overall economy. This measure will permanently diminish the state’s capacity to provide appropriate levels of public service and will ultimately make the state a less desirable place to live and reduce the state’s ability to attract desirable employers.

TAX CREDIT VOUCHER BILL ON SENATE CALENDAR
Senate Bill 698 (Luann Ridgeway) is now on the Senate perfection calendar. The Senate will likely take the bill up at some point during this session. The bill will face considerable opposition in the Senate and is not expected to reach a vote, but Sen. Charlie Shields, the Senate Majority Floor Leader, is expected to, at least, give the bill some floor time for discussion.

Like its House companion bill, House Bill 808 (Carl Bearden), S.B. 698 allows up to $40 million per year in tax credits for “contributions” to scholarship funds to be used to fund private and religious school tuition payments for low-income students in St. Louis City and Kansas City.

Missouri NEA strongly opposes S.B. 698 and any measure to transfer state funds to private, religious or home schools that are not accountable to all of the standards placed on public schools. MNEA appreciates the continuing effort by members in opposing passage of the bill.

MOHELA BILL FUTURE UNCLEAR
The Senate debated Senate Substitute 3/Senate Committee Substitute/Senate Bill 389 (Gary Nodler) at great length during the week before spring break. The bill makes several changes relating to higher education, including language relating to the sale of assets of the Missouri Higher Education Loan Authority and providing funds to higher education institutions for capital projects. No deal has been reached on the list of projects to be funded or even on whether to approve the use of MOHELA assets as a funding source. The bill does appear headed for further debate, as Senate President Pro Tem Michael Gibbons has stated that passage of the bill is a priority. The bill’s supporters seem unwilling to consider alternative funding schemes, such as bonding, to support the capital projects. Thus, further debate appears likely to include a lengthy filibuster and, ultimately, a decision by Senate leaders on whether to shut off debate by moving the “previous question,” a divisive tactic rarely used in the Senate. Missouri NEA continues to have strong concerns regarding the impact of the tuition caps on the quality of programs and the effect of the MOHELA asset sale on the ability of that entity to fulfill its core mission of providing financial assistance to Missouri students.

SENATE DEBATES HIGHER EDUCATION SCHOLARSHIPS/GAMBLING LOSS LIMIT REPEAL
The Senate debate on Senate Bill 430 (Charlie Shields) began on March 27 and continued until 4:00 a.m. the next morning, when the bill was laid over without a final vote. S.B. 430 creates the Smart Start Scholarship Program. The program is a significant expansion of the approach of the A+ schools program to support two-year scholarship grants for graduating high school seniors. The scholarships would be supported by a separate funding source generated by repealing the $500 loss limits on riverboat gambling boats and enacting an additional one percent state assessment on gambling proceeds over $30 million per boat. Scholarships could be used at approved public and private institutions and proprietary schools in Missouri.

Sen. Shields withdrew the original Senate Substitute and offered S.S. 2. Sen. Chuck Purgason offered Senate Amendment 1 to send the entire bill to a statewide vote for final approval rather than to the governor for signature. The amendment was defeated by a vote of 10-23. Several amendments were offered and debated to increase the gambling boat tax by more than the one percent increase from the original bill, but the amendments were ultimately withdrawn. Several amendments were offered to revise the cap on the allowable number of riverboat gambling boats, and the bill was laid with an amendment pending.

Missouri NEA supports the concept of the bill to expand affordable access to higher education and increase educational attainment in Missouri. The MNEA urges that scholarships also be available to students who have a General Equivalency Diploma and other non-traditional students with high school credentials. MNEA believes that a significant statewide scholarship program such as this should be funded by a general revenue appropriation supported by a general tax rather than by a tax on gambling. The use of riverboat gambling funds may also raise constitutional issues regarding the use of scholarship funds at private institutions, since the Missouri Constitution specifies that all state revenues from riverboat gambling shall be appropriated “solely for the public institutions of elementary, secondary and higher education.”

HOUSE PASSES BUDGET BILLS
On March 28, the House gave first round approval to House Bill 2 (Allen Icet), the K-12 education appropriations bill and H.B. 3 (Allen Icet), the higher education appropriations bill. The bills were Third Read and passed on March 29 on a party-line basis. H.B. 2 was passed by a vote of 97-61. H.B. 3 was passed by a vote of 96-60. The bills have a few differences from the governor’s recommendations; however, H.B. 2 includes a $5 million increase for transportation and a $2.6 million increase to the virtual school funding.

This year, the budget bills went directly to the Budget Committee, while the Appropriations Committees held hearings on various programs and developed recommendations for the Budget Committee, including increases for transportation, virtual schools and vocational rehabilitation.

The Budget Committee began with presentations from the appropriation chairs regarding the recommendations from their committees. The Budget Committee completed the mark-up process on H.B. 2 and passed three small amendments. One amendment added $100,000 to the Scholars and Fine Arts Academies, another cut $80,000 from Career Ladder to fund another blind skilled-specialist and a third allows private donations to charter schools.

Amendments were offered to H.B. 2 in floor debate to reduce the funding for virtual schools from $5.2 million to $2.6 million and move the money to the formula or to early childhood, but both amendments were defeated. Several amendments were adopted to revise the funding language for the blind skilled-specialist. Rep. Jeanette Oxford offered an amendment to give the Department of Elementary and Secondary Education staff a flat pay raise, rather than proportional, to give more of the increase to low wage employees. The amendment was defeated.

H.B. 3 was taken up on March 27. Rep. Oxford offered the same amendment to give Divison of Higher Education staff a flat pay raise, and the amendment was defeated. H.B. 3 was taken up again on March 28 and Rep. Mark Bruns offered House Amendment 2 to add $640,000 to draw down federal land grant funds for Lincoln University.

Significant changes are seldom adopted on the House floor since, for every increase, there must first be adopted a corresponding decrease elsewhere in the budget. Budget decreases are not easily adopted in a budget ravaged by years of relentless cutting. Funding for K-12 education, higher education and other services, such as health care, is already inadequate to meet the real needs of Missourians. Missouri NEA continues to advocate for comprehensive tax reform that will produce adequate revenues for public education and other vital services and allow adoption of a budget that truly meets the needs of Missouri’s citizens.

SEX EDUCATION MANDATE DEBATED IN SENATE
The Senate debated Senate Committee Substitute/Senate Bill 370, 375 and 432 (Delbert Scott) on March 28. The bill includes various provisions relating to abortion services and alternatives to abortions and includes the provisions of S.B. 432 (Gary Nodler) that establishes additional mandates on human sexuality instruction in public schools. After about six hours of inquiry, discussion and leisurely debate, the bill was laid back over without a final vote. Missouri NEA continues to oppose the additional mandates and restrictions on human sexuality instruction contained in the bill as unneeded restrictions on local control of curriculum and instruction.

HOUSE COMMITTEE HEARS BILL TO REPEAL INCOME TAX
The House Special Committee on Tax Reform heard House Bill 1034 (Ed Emery) on March 27. The bill would submit, for statewide approval in November 2008, a proposal to eliminate the state income tax and replace it entirely with an additional state sales tax. Missouri NEA believes that taxes should be fair, adequate and sustainable and strongly opposes the bill, since it fails to meet any of those values. The bill would remove the one state tax that can be levied in proportion to a taxpayer’s ability to pay: the income tax. This proposal is a state version of a national effort to repeal the federal income tax and replace it with a 23 percent federal sales tax. Such heavy use of the sales tax is massively unfair to low income persons and will give huge tax cuts to taxpayers with the highest incomes, the greatest ability to pay and generally the largest benefit from use of public investment supported by taxation.

SENATE PERFECTS INCREASE TO SCHOOL BONDING LIMIT
The Senate gave first round approval to Senate Joint Resolution 8 (Luann Ridgeway) on March 28. SJR 8 would submit, to statewide vote, a proposed constitutional amendment to increase the allowable school bond limit for school districts from 15 percent of a district’s total assessed value to 20 percent of the district’s total assessed value.

SENATE EDUCATION COMMITTEE
The Senate Education Committee heard the following Senate Bill bills on March 28:

  1. S.B. 688 (Michael Gibbons) creates a legislative task force on improving urban education. Missouri NEA supports this common sense step to explore positive steps to help urban public schools.
  2. S.B. 652 (Maida Coleman) creates a legislative task force on improving urban education. Missouri NEA supports the bill.
  3. S.B. 448 (Maida Coleman) establishes the process for recall elections for school board members. The MNEA supports this legislation to provide for a recall procedure for elected school board members who are not serving the needs of the district.
  4. S.B. 551 (Maida Coleman) repeals the statute authorizing the creation of the transitional school district in the city of St. Louis. The transitional school district board will take over control of the St. Louis City schools as of July 1, 2007, based on the State Board of Education’s March 22 determination that the district will be classified as unaccredited. The State Board of Education has appointed Richard Sullivan, a St. Louis businessman, to be the CEO of the three-person governing board. The mayor of St. Louis and the president of the St. Louis Board of Aldermen will appoint the remaining two members. The St. Louis Public School board will continue to exist but will have no governance powers over the district.
  5. S.B. 690 (Jeff Smith) creates the “Metropolitan School District Improvement Act.” The bill includes many provisions, most of which are limited to apply only to St. Louis Public Schools. The provisions include “mega-looping,” differential pay for teachers, performance pay for improving schools, additional requirements for student assessments, teacher assessments, alternative education, early childhood education, school uniforms, after-school programs and longer school day and longer school year. While the MNEA supports the positive portions of the bill, other provisions raise strong concerns, including the differential pay for teachers, the extra mandates on student assessment and teacher assessment and the mandated longer school year and school day.

S.B. 689 (Jeff Smith) was scheduled to be heard, but was not heard. S.B. 689 creates the “Missouri Public Charter School State Board.” The board shall consist of representatives of the general assembly, charter school boards and charter sponsors. The lieutenant governor shall serve ex officio as chair of the board and one member of the State Board of Education shall serve ex officio as vice chair. The board’s duties include: compiling best practices for charter schools; analysis of gaps in educational services; granting charters; adopting rules to allow charter schools serving at-risk youth or theme-based charter schools to receive transfer students from other districts; reporting to the governor and general assembly on proposed statutory and regulatory changes to improve charter schools; and, contracting with chartering entities to provide sponsorship oversight functions.

Missouri NEA has several serious concerns regarding the bill. The MNEA believes the charter board’s proposed duties would overlap and conflict with the responsibilities of the State Board of Education as the ultimate oversight authority for all charter schools. The substantial representation on the charter board from nonprofit charter school boards would not provide the full public accountability needed for such a statewide entity. The charter board also does not appear to have the technical capacity to sponsor charter schools. Lastly, the option to admit students from other districts will open the bill up to the issues of the open enrollment debate.

HOUSE HIGHER EDUCATION
The House Higher Education Committee held an executive session on March 27 and voted out the following House Bills:

  1. H.B. 532 (Nathan Cooper) requires students entering public higher education institutions to take American history and American literature courses in order to graduate. A House Committee Substitute version was voted “do pass.”
  2. H.B. 249 (Danielle Moore) establishes the Missouri Senior Cadets Program. The bill was voted “do pass."

H.B. 613 (Bryan Pratt) was scheduled for consideration, but no action was taken. The bill requires that one voting member of the governing boards of certain state institutions of higher education be a full-time student.

CAPITOL ACTION DAYS
MNEA’s Capitol Action Days will return next week, on April 3. Capitol Action Days are a great chance to meet with legislators and discuss Missouri NEA’s priority issues and how to support great public schools for every child.

Capitol Action Days will be on Tuesdays and Wednesdays continuing through the first week of May. Your MNEA calendar includes the dates that members of the MNEA Board of Directors selected for your governance district.

As your Capitol Action Day approaches, please contact Otto Fajen (otto.fajen@mnea.org) by the preceding evening to confirm your plan to attend. If your travel plans change and you are not able to attend on your designated day, please call and speak to Judy Glover at 1-800-392-0236 no later than 9:00 a.m. of the designated day to let us know of the change. Feel free to contact Otto Fajen by e-mail to arrange to attend a different Capitol Action Day.

Each Capitol Action Day will start with a briefing at 10:00 a.m. to provide you with the most up-to-date information. Participants should meet MNEA Government Relations staff at the Capitol on the second floor near the rotunda in the Senate side alcove under the grand staircase.

Legislative Update 2007
Missouri National Education Association
1810 East Elm Street
Jefferson City, MO 65101-4174
(573) 634-3202 or (800) 392-0236

Greg Jung, President
Ben Simmons, Executive Director
DeeAnn Aull, Director of Programs and Public Relations
Leila Medley, Political Director
Otto Fajen, Legislative Director
Judy Glover, Secretary

 

 

 

 

 

 

 

 

 

 

 

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