California Releases Cheaper Gasoline…But at What Cost?
In California gasoline prices are reaching $4.65 a gallon and as a result Gov. Brown and state agencies decided to take action. California decided to allow the sale of winter gasoline a month earlier then usually. Winter Gasoline is less environmentally friendly because if used during warmer temperatures will evaporate into the atmosphere quicker than alternatives. This is even true for gas that remains in subterranean storage tanks. It was noted that if a major heat wave hits California the switch to winter gasoline may have a large effect on the air quality.
While gas prices always fluctuate, California is seeing a rise in price above the national average because of problems with their state refineries. The national average was noted to be $3.814 with California prices reaching $4.65.
This bring an interesting question to state and local government reform. With the large impacts that gas prices have on the everyday economy and everyday lives of residents, when should a state intervene in the market in an attempt to lower gas prices? And how much weight should be given to the environmental effects that may result?
The article showcasing this California action is available here http://www.latimes.com/business/la-fi-gas-prices-governor-20121008,0,7934574.story
In recent news it has been stated that New York Gov. Cuomo and Comptroller Thomas DiNapoli are looking to propose legislation that would create a state super control board. The board that would take over the finances of struggling local governments on the verge of bankruptcy, including cities, towns, villages, and counties.
Of course public labor unions oppose such legislation because it would allow the state to violate union contracts, which represent one of the largest local government expenditures.
Such control boards are not uncommon in New York and have been set in place at the local level. The governments of Troy, Buffalo, Yonkers, and Nassau County have been under finance control boards because they were on the verge of an economic crisis. It was reported that currently 300 local governments ran deficits and more than 100 local governments do not have enough to pay the bills.
The proposed legislation was described as not ”…completely replac[ing] the locally elected official. But it would provide them with the political ’cover’ many privately say they need to stand up to the powerful unions, which have consistently resisted spending cuts.”
Conflicting reports show that Comptroller DiNapoli has not been in discussions with Gov. Cuomo and he believes it is premature for the installation of such a board. In a press conference DiNapoli emphasized that the idea needs to be examined in more detail.
To add to a previous post discussing how teacher evaluations in New York are going to affect school aid, the Natoinal Governors Association (NGA) has found a growing interest in new models of teacher compensation based on evaluation. As such the NGA hosted a policy academy focused on the issue designed to provide assistance, advice, experts, and networking opportunities with other states.
NGA selected six states, Florida, Indiana, Kansas, Louisiana, Rhode Island, and Tennessee, to participate in the policy academy. Collectively the states came up with several recommendations for state action including:
1) ensuring assessment and data systems are capable of measuring student learning growth, providing estimates of value added, and linking student assessment scores to individual teachers, 2) identifying tools and measures for gauging teacher effectiveness that go beyond student test scores (such as classroom observation, aggregate, schoolwide student learning gains, teacher portfolios, student artifacts, teacher value-added scores, and student growth measures), 3) providing high-level leadership and engaging key stakeholders to develop frameworks, guidelines, and details of new compensation structures, and 4) using reform efforts at the state level in ways that complement one another and maximize other opportunities.
Traditionally, teacher compensation was based on the levels of education being tougher and additional years of experience, and pay-for-performance initiatives are bonus based. However, recently research has shown that although experience matters in student achievement, the impact of experience declines after the first few years of teaching. Also, with a bonus based pay-for-performance compensation model, when budgets are constrained the bonuses are vulnerable to cuts.
Florida
Florida started the policy academy with a comprehensive assessment system including measures to determine how much of an impact a teacher has relative to student learning (“value-added” measures). Also, a Florida state statute already requires every teacher and administrator to be evaluated at least once a year, with a focus on performance of the educator’s students. Due to the enactment of the statute Florida has attempted numerous pay-for-performance initiatives, including; A-Plus Education Plan, E-Comp, STAR Program, and MAP Program. All of these programs have ultimately failed.
The policy academy helped Florida to determine why previous programs had failed, and to open a dialogue between lawmakers and educators in hopes of being able to satisfy everyone’s needs. Ultimately the legislature passed Senate Bill 6, which was then vetoed by then Governor Charlie Crist. Bill 6 would have, “eliminated tenure for newly hired teachers, eliminated pay scales based on experience and advanced degrees, and required school districts to establish performance pay for teachers and school leaders.” Despite the veto, many of the components of Bill 6 were included in the state’s Race to the Top grant application to the U.S. Department of Education. Those districts that receive part of the grant agreed to incorporate measures of student learning growth into teacher and principal evaluations.
In 2011, Governor Rick Scott signed Senate Bill 736, which was similar in its accomplishments to Bill 6. Bill 736 ended tenure and replaced the traditional salary schedule with performance pay based on performance evaluations.
Indiana
Indiana is new to the comprehensive student assessment system, so the policy academy was being used to help the state get started. Indiana leaders wanted to develop a new teacher compensation plan, and to transition the use of a student growth model in the school accountability system. However, Indiana law prohibited principals from using student scores on the state assessments in teacher evaluations.
The policy academy helped Indiana learn more about the Teacher Advancement Program (TAP), and to discuss TAP with Tennessee and Louisiana, two states that have already implemented the program. The state also applied for a Teacher Incentive Fund grant, to support the implementation of the TAP model. State leaders also began to pursue legislative changes and ended up the Senate Bill 1, requiring new, annual teacher evaluations, and Senate Bill 575, which limits collective bargaining and specifies that districts cannot collectively bargain the procedures or criteria for evaluating teachers.
Kansas
Kansas formed the Teaching in Kansas Commission in 2007, which was designed to focus on a teacher shortage. The commission recommended 59 different things that were grouped into three stages of implementation. The first phase involved teacher training, recruitment, and retention, and was implemented quickly. At the time of the policy academy the state had not yet implemented the second phase, which involved more significant changes related to compensation.
With the state first starting out on its new teacher compensation journey, much of the effect of the policy academy was to open up dialogue among educators, and to conducts surveys determining how individual districts handle performance-based compensation. The state also prepared its federal Race to the Top grant application. Kansas now wants to implement a pay-for-performance pilot, but due to economic condition cannot fund such an undertaking.
Louisiana
The state of Louisiana has developed a Blue Ribbon Commission for Education Excellence. This commission is used to study a problem, produce recommendations, and take policy action. In 2009-2010 the commission announced its area of focus as teacher compensation. The state already has in place a value-added assessment model, and was in the efforts of expanding these measures. Louisiana also has successfully piloted the TAP program in some schools.
Louisiana created the Louisiana Comprehensive Teacher Compensation Framework. The framework includes principles from the TAP model and is meant to guide districts in developing new compensation models. After recommendations by the commission legislative changes were made. Act 54, also known as the Value-Added Bill, changed the way schoolteachers are evaluated. The state department applied for grants to implement these legislative changes. Louisiana received a federal TIF grant.
Rhode Island
Rhode Island had previously made efforts to develop a state-wide performance management system for teachers that would include new models of compensation. The goals of the new model include; 1) evaluation based on statewide professional standards for teachers and school leaders, 2) career advancement opportunities for teacher leaders other than moving into school administration, 3) ongoing, job-embedded professional development tied to evaluation, 4) meaningful awarding of tenure and advanced certification, and 5) performance-based compensation.
With help from the policy academy, Rhode Island accomplished many of its goals. The state began to build support from stakeholders and school leaders. The Rhode Island Federation of Teachers received a grant to support the development for a comprehensive teacher evaluation and support system.
Tennessee
Tennessee has a history of creating new models of teacher compensation. The Tennessee General Assembly adopted legislation that required all school districts to submit differentiated pay plans. However, due to budget constraints the schools could not initiate their pay plans. The state was also recognized for its Tennessee Value-Added Assessment System. This system produced estimates of teacher contribution to growth in student learning.
Tennessee received a Race to the Top grant and a statewide TIF grant. The state also initiated the Tennessee First to the Top Act of 2010. This act commits the state to implementing a new annual evaluation system for teachers. At least 50 percent of a teacher’s evaluation must be based on a student achievement.
From the experiences of each of the six states the NGA came up with recommendations for state action. Other states considering new models of teacher compensation should; “Ensure that assessment and data systems are capable of measuring student growth, providing estimates of value added, and linking student assessment scores to individual teachers.” As well as, “identify additional tools and measures for gauging teacher effectiveness that go beyond student test scores; develop teacher evaluations based on multiple measures; and use evaluation results to identify professional development and other supports for improving effectiveness.” State must also “leverage reform efforts at the state level to that they complement one another and maximize other opportunities.”
The NGA article can be found here and report found here.
This post was prepared by Chelsea Keenan Albany Law School ’14
Florida’s Unemployment Reform Requires Testing
In an effort to create more jobs in today’s tough economy, Florida’s Governor Rick Scott has drafted a Job Creation plan, that some are calling the stingiest in the nation with regards to the state’s unemployment insurance plan. The plan’s key initiatives include; requiring unemployment recipients who fail basic job skills testing to enter a training program in order to continue receiving benefits, focus on state transportation projects that focus on creating the most number of jobs, reduce business taxes, eliminate over 1,000 state rules and regulations that stifle business growth, remove problem board members of Workforce Boards and clean up irresponsible spending.
In response to this plan legal groups are asking the federal government to investigate the state’s treatment of jobless workers. A formal complaint was filed with the U.S. Labor Department that claims the changes have not given those eligible the full extent of their benefits. Approximately 43,000 state residents were denied benefits because they did not finish a test as part of the application process.
The Governor still defends this reform, spokeswoman Jackie Shutz says, “Requiring jobless Floridians to take a skill assessment test is the right thing to do, not just for them, but also to ensure Florida’s tax dollars are spent on making sure our workforce is the most qualified in the nation.”
The report can be found here.
An article concerning the plan can be found here.
This post was prepared by Chelsea Keenan Albany Law School ’14
Illinois’ Controversial Proposed Pension Reform
With many cheering, and many picketing, Illinois’ proposed pension reform is very controversial. Governor Quinn has avoided reforming the pension system until recently when he announced a bold plan that is designed to secure retirement for public workers and to fix the state’s pension issue at the same time.
The major highlights of this proposal include:
- 3% increase in employee contributions
- Reduce cost of living adjustment
- Delay the cost of living adjustment to earlier of age 7 or 5 years after retirement
- Increase retirement age to 67
- Establish 30-year closed actuarially required contribution funding schedule
This proposal is expected to save taxpayers $65 to $85 billion. However, there are concerns from those whose pensions are being adjusted. Many teachers in the state have taken to picketing government offices. School districts and teachers are concerned that under this reform the employer will be responsible for paying the costs of pensions. Elementary school superintendent Kevin Skinkis stated, “I am very concerned that the governor will shift [teacher retirement system] employer pension cost to school districts. This would cause. . . financial distress and it would force us to have to make some serious reductions to a budget that is already carrying a deficit.”
With only six days left in the spring legislative session, the entire state of Illinois is watching and waiting on the fate of public workers’ pensions.
This post was prepared by Chelsea Keenan Albany Law School ’14
In efforts to help reduce the heavy tax burden on New York residents, Governor Andrew Cuomo announced an initiative designed to incentivize performance and reduce costs to local taxpayers. A $40 million competitive grant fund is now set up as a part of Governor Cuomo’s structural reforms to relieve local governments from unfunded state mandates. This grant was initiated in the 2011-12 fiscal year, and is being renewed in the budget for the 2012-13 year.
The grant is now available to counties, cities, towns and villages, either individually or jointly. Based on an application, a reward will be given to local governments that have excelled in reducing property taxes and streamlining government. The projects that are eligible must have started on or after January 1, 2010.
Applicants may receive as much as $25 per resident, with a maximum of $5 million. The actual amount of the award will be based on the population, and the percentage of fiscal impact on the applicant’s total government expenditures.
The local government performance and efficiency incentive is highly beneficial to taxpayers, and the municipalities alike. As Stephen Acquiario, Executive Director of the NYS Association of Counties said, “[t]hese. . . grants will recognize local governments which have stood up for their taxpayers and found smart, more efficient ways to keep costs under control.”
This post was prepared by Chelsea Keenan Albany Law School ’14
