Source: Susanne Siebel, Dan Seymour, Orlie Prince, Leonard Jones, Alexandra S. Parker, Moody’s, Sector Profile, February 1, 2019
State aid intercept programs require a state to divert funding, originally intended for operations, to bondholders for debt service when a local government or higher education institution is unable to make the payment. With that bondholder protection, programs help entities access the capital markets. While all programs share the same goal, they vary widely in structure, timing and state commitment….
Source: Tom Keily, Education Commission of the States, EdNote blog, January 29, 2019
States have historically prohibited the use or possession of marijuana on school grounds, but with the arrival of medical marijuana, policymakers have begun to explore the intersection between school drug policies and medical marijuana laws. ….
How States Use Recreational Marijuana Revenue to Fund K-12 Education
Source: Jill Mullen, Education Commission of the States, EdNote blog, January 30, 2019
Revenue from recreational marijuana sales can be a large influx of cash for a state and, in many cases, vitally needed cash. Currently, 10 states and the District of Columbia allow the use of recreational marijuana. Colorado and Washington were the first states to legalize the green plant in 2012; other states have slowly followed. Each state deals with regulation and taxation differently, but a common use for marijuana tax revenue is spending on K-12 education….
Source: Jon Shelton, LAWCHA: The Labor and Working-Class History Association Newsletter, 2018
…. These strikes were among the most important victories in the US in recent history, a clear victory for communities decimated by years of Republican-led austerity. Further, the cross-district teacher strikes this past spring seemed especially shocking because of the right’s decades-long characterization of teacher unions as inimical to the interests of the nation’s children, there has actually been labor peace among teachers and school districts going back 30 years now. The strike wave surprised many observers, particularly since they took place in conservative, “right-to-work” states where public employee strikes are illegal. Yet this new era of teacher unionism builds on a long history of teacher militancy. ….
Source: Rita Sverdlik, Lisa Martin, Lisa Goldstein, Diane F. Viacava, Susan I Fitzgerald, Kendra M. Smith, Moody’s, Sector Comment, January 23, 2019
New guidance from the Financial Accounting Standards Board (FASB) related to operating leases took effect January 1. Under the new standard, issuers will include the net present value (NPV) of operating leases on the balance sheet. This change does not affect issuers’ credit quality because our assessments already consider operating leases in a manner similar to the new FASB standard. However, in a few limited circumstances, the accounting change will affect issuers’ compliance with financial covenants in bond and bank agreements and temporarily elevate credit risk.
Source: Jim Malatras, Nicholas Simons, Michelle Cummings, Rockefeller Institute of Government, January 23, 2019
This is the first in a series on property taxes in New York State by the Rockefeller Institute of Government. Collaborating with other organizations, the Rockefeller Institute will take an in-depth look into various issues surrounding property taxes including their impact on local governments, case studies of how the tax cap is working in school districts, the future of education financing and its reliance on local property taxes, and property tax assessments.
To Cap or Not to Cap, That Is the Question
As Albany Debates a Permanent Property Tax Cap, How Is the Cap Affecting School Budgets?
Newly minted Democratic Majority Leader and Temporary President of the State Senate, Andrea Stewart Cousins, said the Senate would take up a bill to make the local property tax cap permanent this week. New York State has some of the nation’s highest property taxes, be it in total dollars paid (in the downstate suburbs, like Nassau and Westchester Counties) or by home value (in many upstate counties, like Orleans and Wayne). In response, the state enacted in 2011 a local property tax cap law that restricted annual property tax increases to 2 percent or the rate of inflation, whichever is less. While the tax cap has limited local property taxes, it also has an effect on the distribution of school revenue (with more money coming from progressive state income taxes) and higher passage rates for school budgets.
The property tax cap was not made permanent. It was part of a larger horse-trading deal that included strengthening and extending rent regulations on housing, primarily in New York City. As part of the original deal, the local property tax cap was scheduled to sunset after four years unless reauthorized by the state legislature and signed by the governor. The tax cap was extended once in 2015 and is once again up for renewal in 2020…..
Source: Alia Wong, The Atlantic, January 22, 2019
From West Virginia to Los Angeles, educators are ushering in a new era of labor activism.
Political payback for the statewide teacher walkout?
Source: Andrea Eger, Tulsa World, January 22, 2019
Slew of newly filed bills aim to punish, limit future protests.
After LA’s Strike, “Nothing Will Be the Same”
AN INTERVIEW WITH ARLENE INOUYE
Source: Eric Blanc, Jacobin, January 23, 2019
The Los Angeles teachers’ strike was big, it was united, and now it’s victorious. We interview UTLA chief negotiator Arlene Inouye about how the strike turned the tables on the billionaire privatizers.
Los Angeles Teachers Strike for Higher Wages and Smaller Classes
Source: Christopher Palmeri, Bloomberg Businessweek, January 18, 2019
The district has lost enrollment to declining birthrates, rising housing costs, and charter schools.
Source: Julie Rowland Woods, Education Commission of the States, EdNote blog, January 17, 2019
The elections resulted in big changes in state leadership, including a sizable cohort of 20 new governors. Because many governors appoint top education policy leaders in their states, they play a key role in setting their state’s education policy agenda. So, what are they planning for education in 2019 and beyond?
To figure that out, we track governors’ State of the State addresses. These speeches sketch out governors’ policy priorities, highlight past accomplishments and reflect on the condition of their state and our country. Each year, we summarize and identify trends in education policy proposals featured in these addresses. And we add these summaries to our interactive map within 48 hours of the address — click on a state to see a summary of the education policy issues highlighted by that state’s governor every year since 2005! (You can also view governors’ education proposals by year and issue — an easy way to spot trends across states.) …
Source: John G. Kilgour, Compensation & Benefits Review, OnlineFirst, Published January 7, 2019
From the abstract:
In recent years, student loan repayment programs have emerged as the hot new employee benefit. However, their growth has been restricted by their lack of favored tax status. On August 17, 2018, the Internal Revenue Service issued a private letter ruling approving a proposal to create such a program within a 401(k) plan. In a deft piece of reasoning, the private letter ruling provides relief from the so-called “contingent benefit prohibition.” This article examines student loan borrowing, the private letter ruling and its likely consequences and limitations.
Source: Leon (Rocky) Joyner, Nari Rhee, UC Berkeley Center for Labor Research and Education (Labor Center) and the National Institute on Retirement Security, January 2019
From the abstract:
A new report finds that teacher pension plans play a critical role in retaining educators while also providing greater retirement security than 401(k)-style retirement accounts. Eight out of ten educators serving in the six states studied can expect to collect pension benefits that are greater in value than what they could receive under an idealized 401(k)-type plan. The study also finds that the typical teacher in these states that offer pensions will serve 25 years in the same state, while two out of three educators will teach for at least 20 years.
These findings are featured in new research, Teacher Pensions vs. 401(k)s in Six States: Colorado, Connecticut, Georgia, Kentucky, Missouri and Texas, from the UC Berkeley Center for Labor Research and Education (Labor Center) and the National Institute on Retirement Security. The report is author by Dr. Nari Rhee, director of the Retirement Security Program at the UC Berkeley Labor Center, and Leon (Rocky) Joyner, vice president and actuary with Segal Consulting.
Source: Cailin Crowe, Chronicle of Higher Education, December 19, 2018
…. The University of Tennessee at Knoxville and Columbia College, in South Carolina, saw similar stories. In each case the professor was praised for selflessly offering to watch a student’s baby in lieu of professional child care. While the professor’s generosity was commendable, the posts also highlighted the unmet demand for child care on campuses.
The posts go viral because they illustrate a systemic problem, said Barbara Gault, vice president and executive director of the Institute for Women’s Policy Research. People understand that colleges and universities don’t always recognize the caregiving responsibilities of students who are also parents. “It’s a statement about something bigger,” she said.
More than 25 percent of college students are parents of dependent children, according to the institute. However, the idea that colleges and universities should provide child care is still a fairly new concept, Gault said. ….
…. One obvious solution is on-campus day-care centers. For example, at Monroe Community College, in New York, student parents of young children at the campus’s day-care center have on-time graduation rates three times as high as student parents who did not use the center.
But on many campuses, including the institutions where some of those feel-good viral stories have taken place, the reality for students who have kids in need of child care is much different. ….