MABE's Legislative Priorities - PowerPoint presentation focusing on the initiative to make Maintenance of Effort the local funding floor (Oct. 13, 2011)
On behalf of all 24 local boards of education, MABE supports:
- Robust State and local funding for public school
- Making “maintenance of effort” the local funding floor
- Sustaining state education funding without shifting teacher retirement costs
- Building new and improved school facilities
NEW – Session Summary & Special Session Update
MABE's 2012 Session Summary (as of May 12, 2012)
The General Assembly enacted the FY 2013 Budget Bill (SB 150) without enacting either the Budget Reconciliation and Financing Act (SB 152, the BRFA) or the revenue bill including state and local tax increases (SB 523). The immediate outcome of these actions and inactions is the triggering of the "doomsday" budget cuts included in the Budget Bill contingent on the failure of either the BRFA or revenue bill.
Given the magnitude of these potential cuts, including $128.8 million in Geographic Cost of Education Index (GCEI) funding, there was every expectation that the Governor would convene a special session to rectify the State's budget and allow time – well in advance of the July 1, 2012 start date for FY 2013 - for local governments and school boards to adopt local budgets reflecting the adjusted State budget.
MABE Letter to Governor O'Malley Requesting a Special Session (May 4, 2012)
As expected, the Governor has announced a special session to begin on May 14, 2012, to last through Wednesday May 16, in order to pass the Budget Reconcilaition and Financing Act (SB 152) and the revenue bill (SB 523). Both bills were deliberated in conference commitees, with amendments developed that areavailable online. However, it remains unclear what, if any, differences there will be in the bills introduced on monday, May 14 for cosideration in the special session.
MABE Testimony Supporting the BRFA to Restore GCEI Funding (May 14, 2012)
MABE's Legislative Committee Chair, Bob Heck, and Director of Governmental Relations, John Woolums, delivered testimony in both the Senate Budget and Taxation Committee and House Appropriations Committee on Monday, May 14. to share our strong support for legislative action to restore the $128.8 million in GCEI funding,
Report on the BRFA and Revenue Legislation Pending in Special Session (May 14, 2012)
O'Malley Administration Testimony in Support of the BRFA and Revenue Legislation in Special Session (May 14, 2012)
Bills Pending in Special Session & MABE Positions:
HB 1801/SB 1301 - Budget Reconciliation and Financing Act (Support)
HB 1302/SB 1802 - State and Local Revenue and Financing Act of 2012 (No Position)
HB 1303/SB 1803 - Creation of a State Debt – Qualified Zone Academy Bonds (Support)
NEW – Maintenance of Effort Update
April 10, 2012 – Governor O'Malley signs historic Maintenance of Effort legislation into law!
- Senate Bill 848 (Bill Text, Fiscal and Policy Note)
- MSDE Guidance on 2012 MOE waiver requests in accordance with recently enacted SB 848.
The Senate Budget & Taxation Committee Approves Education Funding, MOE Reform, Pension Shift, and Tax Increases
The Senate Budget and Taxation Committee met on Thursday March 8, 2012 to receive subcommittee reports on major sections of the pending state budget, and adopt full committee positions on four major pieces of legislation, including the Budget Bill (SB 50), the Budget Reconciliation and Financing Act (The BRFA, SB 52), the Maintenance of Effort (MOE) reform bill (SB 848), and a bill to raise income taxes (SB 523). Materials
- MOE Reform – MOE Reform: Bill as amended and Bill Summary and background materials (SB 848)
- Teacher Retirement Cost Shift – Committee Summary and Cost Estimates (included in the BRFA, SB 152)
- Revenues - Bill to increase state income and other taxes, as amended (SB 523)
- Doomsday Contingent Cuts
Teacher Retirement Cost Shift
Governor's FY 2013 Budget Proposes Teacher Retirement Cost Shift
The Governor’s Budget Reconciliation and Financing Act (BRFA) includes the much-anticipated proposal to shift to the counties a significant share of the cost of the state teacher and school employee retirement system. The BRFA is cross-filed as Senate Bill 152 and House Bill 87, and is the legislation that changes the laws to accomplish the balanced budget and specific funding allocations included in the Budget Bill (Senate Bill 150 and House Bill 85). One of MABE’s top four legislative priorities in the 2012 session is to oppose shifting a greater share of teacher retirement costs from the State to local school systems. MABE strongly opposes any shift of the State’s obligation to pay teacher retirement costs to local governments or school systems. Local school systems already pay approximately $500 million in Social Security costs, 100% of retirement costs for many school employees totaling more than $60 million, and a new $16 million fee to the State Retirement Agency. These local costs add up to more than 50% of the State’s nearly $1 billion retirement system cost – and shifting another $240 million or more to county governments will dramtically and permanenetly impact available local funding for public edcuation and oura bility to sustain and expand on our current, nationally recognized, success.
- Governor's Budget Highlights & Overview
- DLS Fiscal Briefing (1/23/12) - The full report is 85 pages long, so the pertinent sections on the teacher retirement cost shift proposal are provided separately: (Teacher Retirement Shift, Taxes, Selected Appendices, and Full Report (85 pgs.)
- Initial County-by-County Cost Estimates (pre-date the Fiscal Briefing materials above)
Backgound & Legislative History
Pension Sustainability Commission
- Website with All Materials – Final Report – Local Costs of 50/50 Cost Share (FY 2012) – DLS Report (Dec. 2010)
2011 Session – 2011 Legislation & Fiscal Note (SB 628 by Senate President Miller) – MABE Testimony Opposing SB 628
2011 Interim – President Miller's Letter to Governor O'Malley Urging the Pension Cost Shift in the 2011 Special Session – MABE Letter Opposing President Miller's Proposal
Maintenance of Effort
April 10, 2012 – Governor O'Malley signs historic Maintenance of Effort legislation into law!
- Senate Bill 848 (Bill Text, Fiscal and Policy Note)
- MSDE Guidance on 2012 MOE waiver requests in accordance with recently enacted SB 848.
MABE’s top legislative priority in 2012 was to support legislation to reform the maintenance of effort law to provide:
- Accountability: Making maintenance of effort the local funding floor, with a mandated waiver process to prevent counties from unilaterally rebasing at lower funding levels;
- Flexibility: Improving and expanding the State Board of Education’s waiver process;
- Fairness: Making the penalty for a county not meeting maintenance of effort without a waiver apply to the county, rather than the school system;
- Predictability: Providing a reasonable expectation for school board budgets (for students, parents, and school employees), and to prevent re-basing of the funding floor from year to year;
- Transparency: Guaranteeing an open process by which counties must, at the very least, explain their reasons for proposing to fund below the minimum maintenance of effort amount.
Links to more on Maintenance of Effort:
- Coalition Flyer Supporting MOE Reforms (MABE, PSSAM and MSEA)
- DLS Briefing (January 20, 2012)
- MABE Contacts All Legislators and the Governor Urging Support for Maintenance of Effort Reforms (October 17, 2011)
- MABE's proposed amendments to make maintenance of effort the local funding floor
- MABE's Legislative Position Paper
- MOE v. Local Foundation Amount (DLS County Funding Table)
- What Local Funding Cliff? Or what is the difference between using Maintenance of Effort and the Local Share of the Foundation Amount as the funding floor?
- "The Call for Maintenance of Effort Reform: Accountability, Flexibility and Fairness" - MABE's presentation at the MACo Conference in Ocean City on August 18, 2011
- Ways & Means Committee Briefing (October 17, 2011)
- The State Board of Education Ruling declaring that the maintenance of effort waiver process is not mandatory (May 25, 2011)
2011 Legislative Session
- BRFA Amendment - MABE Talking Points Opposing the BRFA Amendment - Attorney General's Letter (April 4, 2011) - Attorney General's Letter (April 7, 2011) - MOE v. Local Share – DLS Funding Table (FY 2010)
Budget & Taxation Committee Briefing
- Dept. of Legislative Services Briefing - MABE Testimony: including MABE's amendments to make MOE the local funding floor - MACo Testimony
The Capital Budget & School Construction Funding in FY 2013
- DLS Fiscal Briefing Materials (1/23/12)
Teachers' & Employees' Pension Reform
2011 Legislative Session – Pension Bills: Comprehensive Summary Table - MABE Testimony
Long-Term Student Discipline & Related Educational Services
- Proposed Guidelines for the Timely Disposition of Long-Term Discipline Cases (State Board, April 26, 2011) - MABE Letter to the State Board Commenting on the Guidelines, (June 10, 2011) - State Board Letter Requesting MABE Presentation on August 30, 2011, (July 20, 2011)
State Board Meeting Panel Presentations (August 30, 2011): – MABE Testimony – PSSAM Testimony – Montgomery County School System Testimony
BOAST – Tuition Tax Credit Financed Student Vouchers & Teacher Grants
- MABE Testimony Opposing 2011 Legislation (HB 932 – Building Opportunities for All Students and Teachers (BOAST) in Maryland Tax Credit)
