**Please Note: The Education Update will be on break for the summer.

Publication of the Education Update will resume in September 2010.

1)  128th Ohio General Assembly:  The Ohio House and Senate are not scheduled to meet this week.

*The Budget Planning and Management Commission, created through the

FY10-11 budget, (Am. Sub. HB1), will meet for the first time on June 29, 2010 at 1:30 PM in the Senate Finance Hearing Room. The Commission is co-chaired by Senator Shannon Jones and Representative Vern Sykes.

The Commission is charged with studying the state's finances and economy and making recommendations for a balanced FY12-13 budget. At this first meeting the Commission will hear a report on the state of Ohio's finances from the Legislative Service Commission. The Commission is also scheduled to meet July 7, 2010 in Statehouse Room 313. The Office of Budget and Management and the National Conference of State Legislatures are scheduled to make presentations then.

*Secretary of State Jennifer Brunner announced on June 21, 2010 at the annual Secretary of State's Summer Conference, the following four new goals to achieve before her term ends.

-Increase citizen participation in elections and focus, in a nonpartisan way, on under-represented communities, such as communities of color, senior citizens who no longer live in their homes, youth, and many others.

-Build on the information the Secretary of State's office has collected via its "Better Lives, Better Ohio" online statistical resource to develop a "Social Health Report Card" for Ohio.

-Leverage the Secretary of State's activities to benefit economic development in Ohio.

-Create a new initiative called "My Dream for Ohio", which will provide Ohioans with the opportunity to share their visions for the future of the state through an online Facebook page and website.

2)  National Update on Education Issues:

*The U.S. House Committee on Education and Labor, the Honorable George Miller chairman, will hold a hearing on July 1, 2010 at 10:00 AM on H.R. 5504, Improving Nutrition for America's Children Act. This proposed law will improve children's access to nutritious meals, enhance the quality of meals that children eat in school and in child care settings, and establishes nutrition standards for all foods sold in schools. For more information: http://edlabor.house.gov/

*First Lady Michelle Obama announced the expansion of the President's Council on Fitness and Sports to include nutrition on June 22, 2010.

The Council will focus on promoting active lifestyles and healthy eating, and will be co-chaired by Drew Brees and Dominique Dawes.

For more information:  http://www.fitness.gov./

3) CCS Releases Report as the Budget Commission Begins:  Just in time for the Budget Planning and Management Commission's first meeting, the Center for Community Solutions, John A. Begala, executive director, released on June 24, 2010 a "white paper" entitled "Thinking the Unthinkable: Finding Common Ground for Resolving Ohio's Fiscal Crisis. The report includes an analysis of Ohio's current fiscal status and FY12-13 budget issues, and proposes "two scenarios"

to reduce budget deficits for FY 12-13.

According to the report the CCS does not presume that the two scenarios are the only ways to resolve the anticipated state budget deficit, but the scenarios are "illustrative of the scope and policy changes required to erase the structural deficit during the next biennium", and represent a framework for reforming the structure of the state's budget to strengthen public services and investments to ensure Ohio's future prosperity.

The authors write, "The Center for Community Solutions (CSS) hopes above all else that it will contribute to moderation in tone and spirit, and pragmatism in the face of a crisis of the first order."

The authors of the CCS report identify current budget realities facing Ohio in FY12-13, including a structural deficit that ranges from $6 to $7 billion, and propose that lawmakers use a three-part "balanced" approach that reflects the short-term impact on citizens and businesses and the future impact on Ohio's economy when developing the next biennial budget.  The balanced approach includes "...new tax revenue, reduced tax expenditures, and reduced programmatic expenditures", and is based on the following principles:

"*Policy makers should balance the additional tax burden between individuals and businesses.

*Initiating regular oversight of tax exemptions, credits, deductions, and other breaks collectively known as tax expenditures will better assure the efficacy and fairness of this spending over the long term, and provide greater transparency to the budget process.

*The importance of investing in Ohio's youth can be addressed by sustaining through the next biennium SFY 2011 spending levels for early childhood development, libraries, and instructional, transportation, and student aid subsidies for primary and secondary, and higher education.  Ohio's school districts, colleges, and universities should contribute their fair share to deficit reduction through other GRF subsidies.

*Cost cutting in human service programs, especially Medicaid, will be necessary to balance the budget.

*Reframing the Local Government Fund offers a way to both cut costs and assist local governments in achieving economies through collaboration and consolidation of services.

*Investing new resources to stabilize Ohio's behavioral health programs (mental health, alcohol, and drug addiction services), and commissioning work on the future of that system in light of national health reform, should be a top priority."

The report also includes an analysis of income and taxes, tax expenditures, and programmatic reductions that lawmakers and policy makers could consider as options for balancing the FY12-13 budget.

The following is a summary of the recommendations from the Executive Summary of the report:

TAXES

-"The regressive effects of combined state and local taxes in Ohio take a larger share of middle class incomes than the wealthy."

-The combined effects of state personal income and business tax changes have contributed to the structural deficit.

-Reinstating the upper bracket personal income tax rate of 7.5 percent would affect over 2 percent of taxpayers and raise $900 million.

-The regressive effects of Ohio's state and local taxes could be mitigated by adopting a refundable state Earned Income Tax Credit.

-Increasing the rate of the CAT by .08 percent could cover the estimated GRF subsidies to schools and local governments for the loss of the tangible personal property tax repealed in 2005, and raise $400 million over the biennium.

-An increase of one-half of one percent in the sales tax would raise about $ 1.3 billion over the biennium.

-Retaining one-fifth of the former income component of the corporate franchise tax could raise $250 million per year.

TAX EXPENDITURES

-Tax expenditures, which include deductions, credits, exemptions, etc. in state taxes, cost Ohio over $7 billion a year.

-There is little research to justify all tax expenditures.

-"Long-term, the state would benefit by developing tools to evaluate and monitor these expenditures, much like the November, 2009, recommendations of the Ohio Society of CPAs regarding programmatic expenditures."

-Lawmakers should consider adopting a schedule for reviewing and "sunsetting" tax expenditures to ensure that "...their efficacy is placed on equal footing with education, public safety, civil defense, human services, parks, natural resources, and other programmatic spending."

PROGRAMMATIC REDUCTIONS

-Human services, which represent 46.3 percent of GRF outlays and 44.1 percent of total state spending, will "bear a significant share of reductions."

-Even with these proposed reductions, "The impact of including human services in state budget cuts would leave the vast majority of the safety net intact."

-Cuts of $1 billion or more per year could be made through a combination of reductions in Medicaid; state-funded human service line items; non-formula and non-federal match subsidies for primary and secondary education; non-formula, non-student aid, and non-federal match subsidies for higher education; general government GRF appropriations (except debt service); subsidies for property tax relief, including rollbacks; payments through the Local Government Fund; prison populations.

LONG TERM STRUCTURAL PROBLEMS

-Dysfunctional mix of state and local taxes -Faltering behavioral health system -Under-invested public health system -Unemployment Insurance Trust Fund debt -Replenishing the Budget Stabilization Fund

The Appendix of the report, starting on p. 37, includes line items targeted for reductions of ten, fifteen, or twenty percent in FY12-13, including line items for primary, secondary, and higher education, based on the scenarios.

The proposed reductions in primary and secondary education could save between $62 and $125 million over the biennium. Excluded from reductions under primary and secondary education are line items for property tax relief, foundation funding, pupil transportation, special education enhancements, career-technical enhancements, public preschool, and lunch match.

The proposed reductions for higher education could save between $41 and $82 million over the biennium.  Excluded for reductions under higher education are line items for the state share of instruction, Ohio College Opportunity Grant, War Orphans Scholarship, National Guard Scholarship, and adult education and workforce programs.

The report also recommends that property tax relief for homeowners be "means tested" based on income wealth and other factors. Property tax relief for homeowners includes the 10 percent rollback for all residential property owners, the 2.5 rollback for owner-occupied residences, and the Homestead exemption.  Adjusting property tax relief through means testing could save $230 million to $640 million over the biennium.

According to the report, the CCS will be posting on their website updates of data and a discussion board to "encourage and facilitate discussion of these and related topics, throughout the balance of the year".

The report and information about the report is available at http://www.communitysolutions.com/.

4)  Policy Matters Ohio Provides Resources on Ohio Taxes and Budget:

On April 14, 2010 Policy Matters Ohio, Amy Hanauer, executive director, released information about several reports published over the previous years regarding Ohio's tax policies, tax structure,  and state budget. These reports include information about the Commercial Activity Tax; tax expenditures; the consequences of eliminating the income tax; Ohio's income tax structure; the 2005 overhaul of Ohio's tax structure; and more.

For more information:

http://www.policymattersohio.org/pdf/IncomeTaxDay
PR2010_0414.pdf

5)  News from the ODE

*Phase II of Standards Development Begins:  The Ohio Department of Education is in the process of developing Phase II of the revised standards for English Language Arts, Mathematics, Science, and Social Studies. 

Educators from around the state are invited to participate in this process as part of Ohio's Comprehensive Educational System through Model Curriculum Teacher Team Meetings, which will be held in all 16

regions of Ohio from July 12 through August 19, 2010.   During the

small-group sessions of these meetings, educators will be encouraged to share instructional strategies and resources for the Model Curriculum, which will be a Web-based tool. ODE also is developing several other sections for the tool in consultation with advisory and working group committees.

The Model Curriculum, which will be posted for public review this fall, will be based on the final Common Core standards in English language arts and mathematics, as well as the revised content standards in science and social studies. These standards, which were adopted by the State Board of Education on June 7, 2010, will be effective when newly aligned assessments are implemented in several years.

For information about how to register for these meetings please visit, http://www.ode.state.oh.us/GD/Templates/Pages/ODE/
ODEDetail.aspx?page=3&

TopicRelationID=1695&ContentID=86027.

*Special Education Leadership Events: The ODE announced that registration is now open for the following three events that focus on serving students with disabilities during the annual Special Education Leadership Conference, which will be held in September 2010 at the Columbus Convention Center. All events stress the theme "Inclusion Works".

-Pre-conference sessions on September 20, 2010, sponsored by the ODE and the Ohio Association of Pupil Services Administrators, will include a panel discussion with district personnel describing their special education profiles and monitoring plans; a master session on including students with special needs; and a master session on intervention and connection.

-ODE's Fourth Annual Special Education Leadership Conference on Monday, September 20, 2010, will include a general session with ODE leadership, including Superintendent Deb Delisle, and a networking reception sponsored by the Council for Exceptional Children-Ohio.

On Tuesday, September 21, 2010, more than 50 breakout sessions will feature topics such as co-teaching in inclusive classrooms; establishing school-wide systems of support; and understanding how the Core Curriculum, revised academic content standards, and credit flexibility relate to students with disabilities.

-A Principal's Academy on September 20, 2010 will provide information for building and district administrators, and will focus on acquiring skills and tools leaders need as they inspire inclusive practices.

Wendy Murazski and Ervin Knezek of Texas will present the academy, which is cosponsored by ODE, the Ohio Association of Elementary School Administrators, and the Ohio Association of Secondary Administrators.

For more information:

http://www.ode.ohio.gov/GD/Templates/Pages/ODE/
ODEDetail.aspx?page=3&Top

icRelationID=967&ContentID=43999&Content=86720

6) Two Reports Released about KIPP:  Mathematica Policy Research, Inc. and the Think Tank Review (TTR) released on June 22, 2010 reports regarding the results of research conducted about the Knowledge is Power Program (KIPP).

The first report is entitled, "Student Characteristics and Achievement in 22 KIPP Middle Schools" by Christina Clark Tuttle, Bing-ru Teh, Ira Nichols-Barrer, Brian P. Gill, and Philip Gleason.

The second report is entitled, "New KIPP Study Underestimates Attrition Effects".  This is an initial analysis of the Mathematica report conducted by Gary Miron, Western Michigan University, at the request of the Think Tank Review .  The TTR is a collaboration of the Education and Public Interest Center (EPIC) at the University of Colorado at Boulder and the Education Policy Research Unit (EPRU) at Arizona State University.

The KIPP Foundation is currently sponsoring the National Evaluation of KIPP Middle Schools, conducted by Mathematica Policy Research.

The purpose of the evaluation is to examine the impact of KIPP on student achievement and attainment.

KIPP is a charter school network that prepares students to "enroll and succeed in college" based on the following "Five Pillars": high expectations, choice and commitment, more time on learning, power to lead for school principals, and focus on results. There are 80 KIPP schools in 19 states and the District of Columbia.

The Mathematica report, "Student Characteristics and Achievement in

22 KIPP Middle Schools", includes the findings from a "matched, longitudinal analysis designed to estimate KIPP's effect on student achievement" based on 22 KIPP middle schools established by the

2005-6 school year or earlier. This is the first in a series of studies. Future studies will expand the sample to more KIPP schools; use randomized experimental research in a subset of schools; and incorporate measures of student achievement in addition to state test scores.

According to the Mathematica study, students entering the 22 KIPP middle schools had "....prior achievement levels that were lower than average achievement in their local districts.  For the vast majority of KIPP schools studied, impacts on students' state assessment scores in mathematics and reading are positive, statistically significant, and educationally substantial."

The report also notes that "on average, KIPP middle schools have student bodies characterized by higher concentrations of poverty and racial minorities, but lower concentrations of special education and limited English proficiency (LEP) students, than the public schools from which they draw." And, the attrition rates at KIPP schools are not much different than the attrition rates from comparable public schools.

The Mathematica study is available at

http://www.mathematica-mpr.com/publications/pdfs/education/KIPP_fnlrpt.p

df

Professor Miron's initial analysis of the Mathematica report for the TTR, "New KIPP Study Underestimates Attrition Effects", generally finds the report to be rigorous and of high quality.

However, he questions the findings regarding attrition rates.

According to the TTR analysis, "The KIPP study's description of attrition only considers half the equation, when comparing KIPP schools to matched traditional public schools. The researchers looked at the attrition rates, which they found to be similar - in the sense of the number of students departing from schools. But they never considered the receiving or intake rate. Even though the researchers agree that the students who are mobile are lower performing, they do not take into account the reality that KIPP schools do not generally receive these students."

Using the Common Core database, Miron found that there is a 19 percent drop in enrollment in KIPP schools between grades 6 and 7, and a 24 percent drop in enrollment between grades 7 and 8. "In comparison, traditional public schools in these grades maintain the same enrollment from year to year."

Gary Miron writes, "While it may be true that attrition rates for KIPP schools and surrounding districts are similar, there is a big

difference: KIPP does not generally fill empty places with the weaker students who are moving from school to school. Traditional public schools must receive all students who wish to attend, so the lower-performing students leaving KIPP schools receive a place in those schools."

For more information:

http://epicpolicy.org/newsletter/2010/06/new-kipp-study-underestimates-a

ttrition-effects-0

7) Update on the Center for Creativity and Innovation: First Lady Frances Strickland, Governor Strickland's Executive Assistant for Education John Stanford, and Superintendent of Public Instruction Deb Delisle, hosted on June 24, 2010 in Columbus a reunion of stakeholders who had participated in the Governor's Institute for Creativity and Innovation in Education.

The first Governor's Institute for Creativity and Innovation in Education was held in June 19-21, 2008.  Participants explored ways to create a more individual, personalized learning system for all students in Ohio, and developed a vision, mission, values, and purpose for a new education system.

A second meeting was held in 2009 to develop the purpose, vision, and values of the Center for Creativity and Innovation at the Ohio Department of Education, established through a provision in Sub. HB 1, the FY 10-11 state budget bill.

The purpose of this meeting was to update participants of the summit on the progress that has been made to establish the ODE Center for Creativity and Innovation; examine the vision, mission, and guiding principles to see if they were still "on track"; review a proposed design for the Center; and establish a strategy that assures the continued engagement of stakeholders.

At the conclusion of the meeting a majority of the participants agreed on the following:

-Add "personalized" learning and "digital competence" to the vision

statement:  "The Center for Creativity and Innovation supports creating personalized learning environments that foster creativity, innovation, and global and digital competence."

-Build the Center for Creativity and Innovation using existing resources and organizations, such as the Ohio Resource Center (ORC), eTech Ohio, and KnowledgeWorks. These organizations represent the current generation of learning (Ohio Resource Center), the next generation of learning (e-Tech Ohio), and the future generation of learning (KnowledgeWorks).

-Participate in developing the Center, by working with the Ohio Resource Center, eTech Ohio, and the KnowledgeWorks Foundation.

The ORC will hold a meeting on July 28, 2010 and eTech Ohio will hold a meeting on August 17, 2010 for those interested in participating in the design of the Center.

Information about the Ohio Resource Center, eTech Ohio, and the KnowledgeWorks Foundation is included below:

Peggy Kasten

Ohio Resource Center

http://ohiorc.org/

Kathleen Harkin

eTech Ohio

http://www.etech.ohio.gov/

Katherine Prince

KnowledgeWorks Foundation

http://knowledgeworks.org/

8)  Update on the Education Efficiency Initiative: Andy Benson, executive director of Ohio Education Matters, a subsidiary of the KnowledgeWorks Foundation, met with education stakeholders on June 23, 2010 to discuss the purpose of the Education Efficiency Initiative and how information could be gathered from the education community to support the Initiative.

The Initiative, announced by Governor Strickland and State Superintendent Deborah Delisle on May 27, 2010, will include a comprehensive, transparent, and bipartisan review of the state's K-12 education system, to identify efficiencies, new learning technologies, and new kinds of collaborations that will help schools and school districts become more cost-effective during these difficult economic times.

KnowledgeWorks will work with the Ohio Department of Education, legislators, education stakeholders, community and business leaders, and foundations to gather a variety of opinions and recommendations; examine research and best practices; examine feedback; and submit a report to Governor Strickland and the General Assembly by December 2010. KnowledgeWorks will also advocate for these recommendations through the next biennial budget process.  A web site will be developed to disseminate and receive public input, and a series of meetings will be scheduled to gather public input.

At this meeting stakeholders met the researchers who will be working on this initiative, received an overview of the purpose of the initiative, and discussed the following questions that will be considered by the researchers:

-How can we sustain school reform and student achievement without increasing costs during this economic crisis?

-What is the role of technology in re-imagining learning environments?

-How can we identify and build on best practices and collaborations to maximize efficiencies?

-What regulations need to be eliminated to improve efficiencies?

-What community resources, nonprofit, private investments, and philanthropies, are available to support student achievement and education reform?

-Which school districts are already implementing best practices, and at the same time, increasing efficiency.

-How can current collaborations among school districts to save costs be maximized and expanded?

-What tools need to be created to assist districts to maximize their resources and student achievement?

Stakeholders commented on purpose of the Initiative, and made the following suggestions:

-Identify examples of best practices and collaborations that lead to cost savings and are already being implemented in our schools, and build on those practices and collaborations -Recognize the impact that reports and recommendations can have on a school community, and develop thoughtful ways to communicate recommendations to maximize support within a local school district and also address a variety of cultural perspectives -Define student achievement at a high level to ensure that the needs of high performing students are addressed, and base student achievement on student access to a comprehensive high quality education program that includes a variety of learning opportunities -Recognize that student achievement means more than test scores -Recognize that Ohio has several education systems that impact cost, including traditional schools, charter schools, and voucher programs, and examine the cost of providing "choice"

-Note the differences between efficiency and effectiveness -Make sure that comparisons are accurate -Address the current inequities and missed opportunities within the system -Examine consolidation honestly -Examine the importance  and impact of high quality teacher preparation programs and professional development -Include recommendations from teachers in the field -Recognize the impact of local control on school district decision making, and the effect of local bargaining agreements -Define terms such as personalized learning, student achievement, etc.

For more information about this initiative:

http://www.kwfdn.org/press_room/press_releases/press
_release.asp?prID=19

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