Updated February 22, 2002

The Schedule

The General Assembly is proceeding diligently toward a scheduled March 9 adjournment. Much of the attention in the final two weeks will be focused on completion of the state budget. The House and Senate money committees released their respective versions of the budget on Sunday, and they take vastly different tracks in terms of education funding. Meanwhile, the House and Senate Education Committees will complete their work next week.

The House Education Committee meets Mondays at 8:30 a.m. in House Room C and Wednesdays at 8 a.m. in the Appropriations Room. The Senate Education and Health Committee meets Thursdays at 9:00 a.m. in Senate Room B. Sub-committees will meet periodically throughout the session. Please click for a schedule of weekly meetings.

The Issues

The House Appropriations and Senate Finance Committees reported their versions of the FY02 and 2002-2004 state budget on Sunday. Each budget then was approved Thursday in its chamber of origin. The budgets soon will be in the hands of eight senior lawmakers who will be charged with crafting a compromise spending plan by session’s end.

Concerning education-funding related issues, the Senate budget adopted Governor Warner’s amendment that restores half of the funding for the School Construction Grants Fund ($27.5 million each year). The House eliminates the program in the next biennium (as had been recommended by Governor Gilmore) and also proposes to capture $19 million in school maintenance funding (which has been provided since 1992) for use in other parts of the education budget.

The House proposes a teacher pay raise of 2.75% effective December, 2003. The Senate budget provides no salary increases, but does propose bonuses and additional paid vacation time for state workers (not teachers).

Neither the House nor Senate proposal restores any funding for the retired teacher health care credit. The introduced budget proposed to shift $36 million of the costs of this program, established in 1998 with the state paying 100% of the costs, to localities.

Concerning the Literary Fund, both chambers accept Governor Warner’s amendment to divert $53 million from the Literary Fund to help pay for teacher retirement in FY02. The House and Senate accept Gov. Gilmore’s amendment to eliminate the lottery hold harmless program in the next biennium (nearly $30 million), and to decrease VRS contribution rates in FY 02. The House proposes a group life premium holiday for state employees and teachers; savings for the costs of the teacher portion are over $15 million.

The House proposes to address two of the recommendations proposed in the Joint Legislative Audit and Review Commission (JLARC) report on education funding. Specifically, it proposes $73.4 million to end the current practice of deducting locally generated revenues from Standards of Quality (SOQ) cost calculations (this increases the state SOQ costs). In addition, the House proposes $90 million to pay a portion of administrative costs that were excluded from SOQ costs calculations in the early 1990’s. The House also includes language requiring the Department of Education to collect data to determine if localities are paying their required local shares of SOQ costs.

The Senate plan eliminates funding for several small local programs. The House, in searching for funds to funnel to the TIER I JLARC recommendations and for other budget priorities, eliminates or reduces a number of categorical and incentive programs. Programs targeted for elimination include the additional teachers program ($58 million), dropout prevention ($11 million), SOL teacher training ($35 million; note that the Senate proposes to shift to localities $15 million of the costs of this program, which has been 100% state funded), and SOL teaching materials ($6.4 million). Several other small programs were eliminated, and funding in the House plan was reduced for Project Discover and the at-risk four year olds program.

House and Senate budget conferees will be named the middle of next week, then face a March 5 deadline to propose a compromise budget.

Concerning education legislation, the Senate Education and Health Committee has approved a bill (HB 939) that bans all smoking in public schools. It also approved HB 1141, which eliminates the state-regulated salary caps for elected school board members, instead allowing such boards to sets salaries consistent with the amounts allowed for the relevant local governing body. Similar legislation has been vetoed twice in recent years.

The House Education Committee has endorsed Senate provisions that amend the state’s four year old charter school law. Specifically, SB 625 requires all school boards to review charter school applications; presently, local school boards are allowed to not consider applications after hold a public hearing and adopting a resolution stating such intent. The bill also stipulates that institutions of higher learning also may submit charter school applications.

Please click for access to all bills assigned to the House Education and Senate Education and Health Committees.

An update on CEPI-requested legislation to establish a legislative study committee to review, study and reform educational leadership: The House version, HJR 20, patroned by Delegate Phil Hamilton, is pending in the Senate Rules Committee, while SJR 58, patroned by Senator Emmett Hanger, has been recommended for reporting by a House Rules subcommittee. Again, the number of legislators serving on this new Commission has been reduced from 14 to 8. The 13 non-legislative members (to include various education stakeholders) remain in these bills.

E-mail Response

Questions or More Information? Please contact CEPI if you have any questions or need additional information about the 2002 General Assembly. A final summary of legislative action from the 2002 General Assembly is posted on this Web site.

Back to 2002 General Assembly

Click here to see archived 2001 General Assembly Updates.

Back to Top