The meeting of the Joint Subcommittee on Human Resources/K-12 of the Senate Committee on Finance and the Assembly Committee on Ways an Means was called to order by Chairman Raymond D. Rawson at 8:10 a.m., on Tuesday, February 16, 1999, in Room 3137 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

SENATE COMMITTEE MEMBERS PRESENT:

Senator William J. Raggio, Chairman

Senator Raymond D. Rawson, Vice Chairman

Senator Lawrence E. Jacobsen

Senator William R. O’Donnell

Senator Joseph M. Neal, Jr.

Senator Bob Coffin

Senator Bernice Mathews

Ms. Jan Evans, Chairman

Mr. Joseph E. Dini, Jr.

Mr. David E. Goldwater

Mr. Lynn C. Hettrick

Mr. David R. Parks

STAFF MEMBERS PRESENT:

Patti Hampton, Committee Secretary

OTHERS PRESENT:

Keith Rheault, Deputy Superintendent for Instructional, Research and Evaluative Services, State Department of Education, explained this budget allows the department to carry out its responsibility to enforce the regulations for teacher licensing within the state. He said it also provides the funds to support the Commission on Professional Standards in Education, which sets the regulations. He  stated that currently the funding for teacher licensing includes state appropriations and licensing fees. He pointed out that since 1995 the licensing fees for all of the licenses issued are deposited directly into this budget account. He said that in Fiscal Year (FY) 1998, 72 percent of the budget came from licensing fees. Dr. Rheault noted the budget is close to that of the past and no additional staff has been requested. He said the department is budgeted for 11.5 staff positions.

Dr. Rheault stated the workload continues to grow although a new computer system was funded in 1997, and problems have been worked out over the past biennium. He said approximately 9,850 new licenses, renewal licenses or additional endorsements were processed in 1998. The enhancement in decision unit E-125 would provide additional in-state travel funds for commissioners to attend meetings related to teacher licensure and academic standards activities, and to hold licensure task force meetings to revise current regulations.

Dr. Rheault pointed out the biggest change within the budget is the increase in teacher licensing fees. He said it is intended that this budget be self-sufficient by the year 2001. He maintained licensing fees would need to be raised to accomplish this goal. He stated the current licensing fee is $85, which includes $39 for Federal Bureau of Investigation (FBI) and state repository fingerprint checks. Dr. Rheault said there is a $65 fee for license renewal, and $40 is the fee to add an endorsement or to get an additional license.

Dr. Rheault said the proposal in E-126 is to raise the fee for the initial license to $100 and renewals, to $80. He pointed out renewals are for a period of 5 years, so this would equate to $16 a year to hold a license. He said if the teacher has a master’s degree the license is issued for 6 years. The proposal is to raise fees for additional endorsements to $45. Dr. Rheault pointed out there is also funding recommended for replacement equipment.

Dr. Rheault stated the unfunded decision units primarily dealt with requests from the Commission on Professional Standards. The commission requested consideration for three programs: a teacher mentoring program for first-year teachers, a teacher leader program for teachers with 3 to 8 years of experience, and a national board-certification incentive program.

Dr. Rheault provided the committee with data showing what it would take for the budget to be self-sufficient by FY 2001, and data showing how the growth in licensing has occurred (Exhibit C).

Senator Rawson inquired about the teachers’ licensing examination. Dr. Rheault said initial licenses require three tests that include the preprofessional skills test (PPST) and the professional knowledge test; additionally, most endorsements have a special-area test. He stated there are some exceptions. He explained specialty tests are not used in all secondary areas, such as occupational programs. Senator Rawson asked whether there are statistics showing how many teachers do not pass the exam. Dr. Rheault said performance indicators give an indication of how many do not pass on the first attempt. He pointed out the lowest number of license applicants passing the exam occurs in the PPST. He said the actual percentage passing this test on the first try in the past year was 77 percent. He stated the reason the figures are somewhat misleading is that all individuals requesting a substitute license are also required to take the PPST. A substitute license can be received with 62 college credits, he noted. He maintained the reason for the lower number of license applicants passing the PPST on the first try is that many of those seeking a substitute license do not have a bachelor’s degree.

Dr. Rheault stated that last year 92 percent passed the professional knowledge test, which measures teaching methodology skills, on the first try, and 94 percent passed the specialty area tests.

Senator Rawson asked whether there is a process for licensing exceptions. Dr. Rheault replied there are a number of exceptions, primarily at the basic skills level. He said the PPST is waived for those with a master’s degree, or those having taught for 3 of the last 5 years. A court ruled in 1995 that even though the PPST was found to be valid, there should be another option for people unable to pass the basic skills test. Dr. Rheault said the commission was required to identify course-work that could be completed in lieu of passing the test. Consequently, remedial math, English, and reading courses were identified for individuals to register for after failing to pass the test, he said.

Dr. Rheault pointed out that a score of B or better in these courses must be achieved upon completion. Senator Rawson asked how many licenses are given on an exception. Dr. Rheault replied that this past year, on that type of exception, there were fewer than 50 out of the newly hired teachers. He stated that taking the remedial classes is not a popular option because the teacher has to pay for the classes and it takes a semester to complete the course. He said most of the applicants have had either this course or a similar course.

Senator Rawson noted the 3.5 employees in the Carson City office and the 8 in the Las Vegas office. He asked how many teachers are being licensed out of each office. Dr. Rheault replied the new computer system provides the capability of gathering a variety of statistics on each licensing office. He said the workload is well split between the two offices. He stated the northern office takes care of licensing for the rural counties and for Washoe and Carson City Counties, and the southern office handles Clark, Nye and Lincoln Counties. He maintained the split of license processing is 40 percent in the north and 60 percent in the south, and it seems to work well.

Senator Rawson asked whether all the positions in Las Vegas are filled. Dr. Rheault explained there is currently an opening for a Licensing Director. Senator Rawson noted this position has been open for some time. Dr. Rheault said it was filled for a period of 7 months, but the director who was hired resigned in January due to medical reasons. Since that time there had been a request to fill the position, but due to the hiring freeze by the Governor, the first request was not approved. He said he planned to submit an appeal.

Senator Rawson inquired whether personnel from the Clark County School District (CCSD) still help in the office in Las Vegas. Dr. Rheault responded they have helped, but not as much in the past 6 months as in past years. He added that anytime assistance is needed and the school district has personnel available, assistance has been provided.

Mr. Hettrick noted the results reflected in the performance indicators are quite good. He stated 50 percent of the applicants are shown to have qualified for a teaching license through reciprocity. He asked whether those who receive reciprocity licensing ever have to test to Nevada’s standards. Dr. Rheault answered 51 percent of those applying for a Nevada teaching license were eligible for reciprocity, but that does not mean they actually received reciprocity. He explained there are some "strings attached" with the reciprocity agreements. He pointed out that if an applicant has not taught 3 of the last 5 years, the person must go through the normal process and transcripts must be analyzed. Dr. Rheault added there have been reciprocity agreements signed with 35 states. He noted this is only for the academic areas and does not include other areas such as occupational or administrative.

Dr. Rheault said if an applicant qualifies for reciprocity, coursework is not added if the individual is missing "some methodology." He pointed out the other states’ requirements for licensure have already been analyzed and are similar to or exceed Nevada’s. He said the applicant is required to take all three tests as needed, depending on the person’s experience. He added the testing is one thing that is not waived.

Ms. Evans asked about the backlog in licensing applicants. Dr. Rheault answered the backlog in Las Vegas is particularly critical. He said the licensing process for Clark County School District teachers was 3 months behind until recently. He and another individual went to Las Vegas, following the resignation of the director, to see what the problem was. Dr. Rheault stated he found most of the problem involved lower-level skill functions such as answering voice mail, sending mail requests for applications, and filing. He pointed out that due to a vacancy at the front desk, some of the analysts were performing these tasks. Dr. Rheault said the department got some assistance through Manpower to perform some of the clerical tasks. He stated that as of last week, the Las Vegas office is now processing January applications, which makes for a backlog of 5 or 6 weeks in Las Vegas. The Carson City office usually maintains a 3- to 4-week turnaround, depending on the time of year.

Ms. Evans inquired whether the backlog is strictly a staffing problem or whether it has to do with how the process is conducted. Dr. Rheault answered that in his opinion it is not a staffing problem. He said it is partially due to the implementation of the new computer system and there is also a process problem. He stated there does not seem to be a process problem in the north, where districts are able to hire teachers further ahead, and applications are submitted three to four months before the teachers start work. Dr. Rheault pointed out that due to the numbers of teachers being hired in the southern part of the state, hiring is still occurring right up to the day school starts and beyond. He testified that in July and August of 1998, approximately 900 new applications were processed in Clark County. He explained three analysts are unable to handle this many applications within a 6-week to 2-month period. He added that most likely 1,000 substitute license applications were submitted at the same time. Dr. Rheault stated he plans to meet with the CCSD personnel office to see whether there is something that can be done to spread out the workload.

Ms. Evans asked when the tests are given and what the success rate is for Nevada-educated applicants. Dr. Rheault did not have those statistics but said he could ask the Educational Testing Service (ETS) to separate applicants by institution. He said there is a small difference in the requirements of Nevada’s two universities. Until a year and a half ago the University of Nevada, Reno (UNR) required that all three tests be passed before students left the university, he pointed out. He said it was only recently that the requirement to pass the specialty area tests was dropped. He stated this requirement is added as a provision when someone applies. Dr. Rheault pointed out that before a student can enter the teacher education program at UNR, the preprofessional skills test must be passed. He added that if this test is not passed, the student is not admitted to the program. Dr. Rheault stated he does not think this requirement exists at the University of Nevada, Las Vegas (UNLV). He said the PPST might be required, but not the professional knowledge or specialty area tests.

Ms. Evans expressed the desire that there be good communication between the universities and K-12, especially with the new initiative to increase the number of graduates in education. She said the committee is interested in not only the volume of teachers produced but also the quality of an educational program requiring high standards and performance. Dr. Rheault maintained the department has had good support, and he has been working with Great Basin College (GBC) on the initiation of the college’s teacher education program to begin in the fall of 1999. He said a passing score on all three tests, as well as a high grade point average (GPA), will be required for entry into the program. He stated he has also had good support from UNR and UNLV. He said it was established this past year that before the student teachers were placed in the classroom they would apply for a substitute license so a background check could be done, and the students would be covered while student teaching.

Ms. Evans asked whether becoming fully fee-funded can be achieved. Dr. Rheault answered he believes the projections are fairly accurate. He said he used conservative estimates from 1996 to 1998 and the estimates were surpassed by $20,000. Fees taken in for the past year were $40,000 more than what had been estimated in the state authorization, he maintained. Dr. Rheault noted that this year the amount seems to be less than expected but said he thinks the figure will go up next year. He explained that two years ago the state went to a 3-year nonrenewable initial license rather than a 5-year nonrenewable license. He noted that 80 to 85 percent of the licenses issued are 3-year nonrenewable licenses and these will be due for relicense this year. Dr. Rheault maintained that if student growth remains at 4 to 6 percent, the objective of being fully fee-funded would be met. He pointed out $1,000 was left in the budget for the second year in case "for some unknown reason" funds were needed, and a request could be made to the Interim Finance Committee (IFC).

Dr. Rheault pointed out he will be presenting information on the fee increase to the Commission on Professional Standards at its March workshop. He said there may possibly be public hearings at the commission’s May meeting.

Senator Rawson said he was under the impression the Las Vegas office has worked without proper management or leadership for a long time. He pointed out the operation will flounder if staff is unable to make the distinction between what must be done and what can wait. He stated the Las Vegas office cannot always be managed from the department level. Dr. Rheault acknowledged this has been a problem. He said there are a lot of inquiries regarding exceptions to licensing. He stressed strong management is needed in Las Vegas to take care of these issues as they come up.

Senator Raggio asked for an explanation of the 3-year nonrenewable license. Dr. Rheault replied the 3-year nonrenewable license is issued if the requirements needed for licensing were not met initially, and provisions were placed on the license. He said that most of the time, if it is an out-of-state person who does not qualify for reciprocity, additional coursework is required. One of the most common provisions is one that is placed on the elementary license, he said. Dr. Rheault stated Nevada requires at least 6 credits in reading methods. He said if the applicant coming from out of state does not have all of the three competency tests, this becomes a provision, as well as passing a test on the United States and Nevada Constitutions. He added the applicant has 3 years to remove the provisions. Senator Raggio asked what evidence of completion has to be submitted. Dr. Rheault responded the applicant must show he or she has either taken a course in Nevada school law or passed the proficiency test by an acceptable score and must provide an official transcript showing the courses are completed. Otherwise the person is not eligible for license renewal.

Senator Raggio asked what exists at the state or district level to ensure competency continues once a new teacher is fully licensed. Dr. Rheault answered, "Not a lot." He said that when a teacher has a provisional nonrenewable license, the 6 renewal credits for full licensure are not added on until the teacher has a regular renewable license. He stated 6 renewal credits are required over a 5-year period. He said this will not keep teachers up to date. Dr. Rheault pointed out the commission has formed a task force to study renewal credits and what should be required when teachers renew their licenses.

Senator Raggio inquired how often the licenses are renewed. Dr. Rheault replied that for teachers with a bachelor’s degree it is every 5 years; a master’s degree, every 6 years; and a Ph.D., every 10 years. Senator Raggio asked whether there is anything additional required. Dr. Rheault answered, "Not for the licensing process." He said school districts have some requirements. Senator Raggio asked about continuing education. Dr. Rheault reiterated there are 6 renewal or continuing education credits required to renew.

Senator Raggio asked whether Dr. Rheault is familiar with the announcement made earlier in the day by the Clinton Administration on licensure of teachers. Dr. Rheault replied he has not seen anything about this. Senator Raggio said it has something to do with rewards for higher-performing teachers, who will most likely be recognized through salary increases. He stated the committee would like to receive information on this.

Mary L. Peterson, Superintendent of Public Instruction, State Department of Education, said the U.S. Secretary of Education is delivering the State of Education speech, which he does annually. Ms. Peterson pointed out that in addition to the 6 renewal credits teachers must earn to renew their license, they are evaluated on a regular basis by the local school districts. She said the evaluation is separate from the licensing process.

Senator Raggio suggested the department come forward with some recommendations on continuing education for teachers. He emphasized an integral part of education reform is to make sure teachers, although initially licensed, perform up to the new standards. Dr. Rheault assured him the department will be working closely with the task force that is reviewing the renewal requirements. He said the plan is to complete the work of the task force in 6 months. He stated he can arrange for decisions coming from the task force to be forwarded to the Legislative Committee on Education.

Senator Rawson noted the 6 credits can be earned for any study unless the school district has particular requirements. Senator Raggio asked what the composition of the task force is. Dr. Rheault answered the task force is made up of two commissioners as well as school district and university personnel. He said anyone would be welcome to provide input to the task force. Senator Raggio stressed the Legislative Committee on Education has indicated a desire to see parents and business interests represented on the task force.

Occupational Education – Budget Page K12 ED-68 (Volume 1)

Budget Account 101-2676

Dr. Rheault said this budget is primarily funded with federal funds through the Carl D. Perkins Vocational and Applied Technology Act. He stated that to receive the federal funds, some matching state funds are required. Exhibit D provides a description of the current program, he noted. He said the Perkins Act was amended in 1998 and will require a new state plan to be submitted. Dr. Rheault pointed out the department was given a year to transition from the old act to the new act. He said the department has just developed a draft transition plan.

Dr. Rheault explained some of the set-asides have been eliminated and the funds which supported the set-asides, have been added to the base grant provided as aid-to-schools. He said the only new requirements are for nontraditional education that targets occupations which do not have a mix of male and female. He added program improvement and teacher preparation are also emphasized.

Senator Rawson said he understands there is a requirement the state match must not be less than in the previous year. He said it appears in the budget that the state appropriation is decreasing. Dr. Rheault responded the $250,000 received for administration must be matched by state funds. Additionally, a maintenance-of-effort provision must be maintained by state funds from the previous fiscal year’s appropriation. Dr. Rheault said that in looking only at the occupational education budget it is obvious this requirement would not be met, but the federal government allows two options to meet the requirement. One is a state aggregate of all funds spent for occupational education, and as long as the population continues to grow and school districts maintain their spending rate on occupational education, the state will meet the requirement. Dr. Rheault maintained the state appropriation recommended in this budget will meet the minimum matching and maintenance-of-effort requirements of the Perkins Act.

Senator Rawson recalled the federal audit performed in 1987 when the state had to pay back millions of dollars to the federal government because the state was not meeting various match requirements. He emphasized the department needs to make sure it is not "playing close to the edge" with the match requirement so that the state will not have to pay back money in the future. Dr. Rheault assured the committee that audits over the past 6 years have shown the department has met the requirement. He said the match and the maintenance of effort can be documented. Senator Rawson pointed out the fiscal staff has not been able to verify that the state match has been met. He requested a worksheet for the staff with information on the match and the maintenance of effort.

Ms. Peterson pointed out the apprenticeship programs, funded through another budget account, also count toward making the match. Senator Rawson reiterated this information needs to be provided to staff.

Dr. Rheault explained the new act does allow the department to withhold 10 percent of the base amount, which is approximately $400,000, to assist local districts or community colleges that will be affected by the change in the law.

Ms. Evans said the performance indicators are informative but do not show what has been specifically done, and this is needed to evaluate the effectiveness of the programs. Dr. Rheault replied the federal government required a list of measures and standards. He noted there is a detailed report on how each district and community college met these standards and they are tied particularly to the federal requirements. He said one requirement was to have occupational students take higher-level math and science courses. Dr. Rheault stated each district tracks the students completing occupational programs. He said the standard was that at least 45 percent of those students complete a math course higher than Algebra I. He pointed out the average this past year was 65 percent. He stated the 1998 report will be available in a month.

Ms. Evans asked whether the department is satisfied with the effectiveness of the programs. Dr. Rheault answered that in his opinion the department is satisfied. He said a few other indicators are tracked. He stated the dropout rate of students taking two occupational courses is tracked. He said one indicator this past year was a dropout rate of 6 percent, and it has been as low as 5 percent, whereas the state average has been 9 or 10 percent. He stressed the dropout rate of students having completed two or more occupational courses is half that of students who have never taken an occupational course.

Dr. Rheault said the department also tracks occupational students who have failed the high school proficiency exam on the first try. He stated one of the federal measures the department said it would follow was the number of occupational students passing the exam. He said the goal was set to have 65 percent of students who failed at least once, pass the test before the time they were to have graduated. Dr. Rheault pointed out that of those who fail the first time, approximately 90 percent pass the test on another try. At Southern Nevada Vocational Technical School, 100 students failed the first test but 99 of them were later able to pass the test and graduate when they should have. Dr. Rheault stated other high schools were having a test success rate of only 30 to 40 percent. He said the department found the difference in the pass rate was that the teachers at the Vo-Tec school volunteered time to provide special one-on-one tutoring programs.

Dr. Rheault mentioned the Business and Marketing Consultant position was eliminated from the base budget. He said it had been vacant since March 1998 due to a large sum having to be paid to the person retiring from the position and because the first time the position was announced there were no acceptable candidates. He explained the hiring freeze occurred just as the position was to be re-advertised. He said the department did receive permission to fill the position; however, when the budget was received the position had been eliminated, and it did not seem worthwhile to fill the position for 3 months. He pointed out this position is funded 50 percent by the federal government and 50 percent from state appropriation. He said business and marketing is the largest area in occupational education. He added this position oversees the Future Business Leaders of America (FBLA), and is the state advisor to the Distributive Education Clubs of America (DECA). He stressed it is critical to have this position funded.

Senator Rawson emphasized it is important to fill vacant positions in a timely fashion or the funding will be eliminated. He maintained if a position is open too long it demonstrates there is not a need to fill it. He asked whether funding can be taken from elsewhere in the budget to fund this position. Dr. Rheault answered he was not prepared to respond at this time but indicated he would review the budget to see whether there is funding available, and then report back to the committee. Dr. Rheault reiterated the reason the position was not filled was that there were only two applicants due to the fact most qualified candidates are being paid as much or more in the positions they already hold. Senator Rawson said if salary is a serious problem, a case needs to be made to increase the salary so qualified individuals can be retained.

Jeanne L. Botts, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (LCB), inquired whether the total amount of money from federal Carl Perkins funds has increased since the time the budget was submitted. Dr. Rheault replied this will be an area he will examine. He said the department was required to spend $60,000 minimum on "sex equity" programs and there are 15 positions that are 100 percent federally funded in this budget. He stated a similar amount is required for nontraditional education. He said that perhaps with the increase in federal administration or technical assistance money the needed funds may be found.

NDE School To Careers – Budget Page K12 ED-93 (Volume 1)

Budget Account 101-2678

Dr. Rheault stated that for the past 4 years this account has been a combination of federal and state funding. The federal grant was limited to 5 years and will be eliminated in 2001, he noted. Since 1995, $2 million a year has been received from the state for this program. Dr. Rheault stated the money has been distributed directly to school districts and community colleges that have formed partnerships in this program. Dr. Rheault provided a program description (Exhibit E).

Dr. Rheault pointed out this program is different from any other budget account within the department because the department primarily serves as a fiscal agent. He added he represents the department of education on the state School to Careers Council. He said this council is 51 percent composed of members from business and the remaining positions are filled by individuals from school districts, community colleges, or state agencies. Dr. Rheault stressed there has been great support from business. He stated there is a much different perspective when business people run the meetings and approve the programs.

Dr. Rheault said the federal funds available through administration have been used to support three full-time equivalent (FTE) positions within the budget. In the current budget it was requested, due to the declining federal funding, that part of the salaries be picked up with state funds. Dr. Rheault pointed out the state appropriations for this purpose are not included in The Executive Budget. Senator Rawson asked whether Occupational Education will pick up this program when federal funds cease to be available. Dr. Rheault responded that if state appropriations are not provided for this program, his proposal would be to review the budget to see whether funds could be made available through reserve or additional federal funding to maintain the positions through the year 2000.

Dr. Rheault called attention to the drop in federal funding in 2001 to $950,000. He said only 10 percent, a total of $90,000, is available for "administration and technical." He maintained that at this point three staff could not be supported, so it was likely Occupational Education would have to take over the program. Senator Rawson referred to the one employee indicated for the next biennium. He asked whether the $108,000 being reserved is the reserve Dr. Rheault referred to earlier. Dr. Rheault answered yes. He said the reserve shows $108,000, but part of the problem with this budget is that the federal funds come on January 1 and the state funds start July 1. On July 1, 1999, $60,000 of the reserve will be transferred into the FY 2000 budget. This would leave $48,000 in reserve that could be applied to the two positions for which the department had requested state funding so the program may be carried out for the fourth year. Dr. Rheault said this would be his request if state funding cannot be restored.

Senator Rawson asked whether the same level of in-state and out-of-state travel funds need to be continued. Dr. Rheault replied the in-state travel for staff has been reduced, at least in the Governor’s budget. He said the in-state travel for nonemployees is high, but it is utilized by council members or school district staff who would like to attend training that cannot be funded through the districts. Senator Rawson pointed out one of the criticisms of this program is that there has not been a high academic emphasis for students. He said one of the requirements of the federal program was that there would be an emphasis on academics. He stated there might be more support for state funding of the program if there were not the sense that students are getting a "second class" education.

Dr. Rheault maintained evidence can be provided to dispel this perception. He said there are a number of academic teachers who have upgraded their English, math and science curriculum once they have seen what is being required of employees in the workplace. He said several evaluation reports can be provided that summarize the measures of academic rigor. He noted the federal reports indicate 14 benchmarks to meet, and 3 or 4 of those are tied to academic learning and teacher training in those areas.

Mendy Elliott, Vice President, Community Government Relations, Wells Fargo Bank, said many of the business members of the council are very interested in the academic achievement of students in the School to Careers program. She said council members are committed to dispelling any of the rumors regarding student achievement. She stressed this program is not only an occupational education program. Ms. Elliott pointed out that those from the business community sitting on the committee are striving to ensure this program is showing students the relevance of education and staying in school, and going on to some form of postsecondary education. She stated it will take programs such as this to improve the dropout rate and the rate at which Nevada’s students continue on to some form of higher education.

Ms. Elliott read a statement from Susan Davis, a principal in Battle Mountain, that said:

Ms. Elliott stated that of the $2 million the state appropriated in 1998, salaries accounted for 32 percent of the program budget, travel was 5 percent, and the services of individuals on contract, who were hired to bring expertise to the state, came to 7 percent. She said 45 percent of the program budget was used to purchase equipment that is being used in schools, universities and community colleges throughout the state. She pointed out that career centers are being established in every high school in Washoe County. She said adults and children in the neighborhoods are utilizing the computer systems in the centers to find out about careers and what classes are needed for the career paths. She stated the council members work in concert with the counselors and the teachers in the schools.

Ms. Elliott noted this partnership has enabled all concerned to communicate and work together to determine what works for Nevada regarding training students for the workforce. She stressed the council looks at the $2 million expenditure as an investment in the future of students, as well as the benefits to the business community. She said the program is in a beginning stage and reform is not going to occur overnight. She stated more than 4,000 employers are involved in this program.

Concluding, Dr. Rheault said the department has completed a report requested by the Interim Finance Committee (IFC) showing what effect there would be if the department did not receive the requested state appropriation. He said this report will include which programs at each school district and community college would be affected by a cut in the state appropriation. He stated this report will be forthcoming, along with budget expenditure pages showing what the monies were spent on in FY 1998.

Ms. Evans inquired what it would take, short of the $2 million, to keep the program intact and progressing. Dr. Rheault replied he has not had the opportunity to analyze all the school district reports, but his first response would be to look at funding that affects programs which would be cut and eliminate everything else. He said that based on 45 percent of the previous budget having been spent on programs, approximately $900,000 would be needed to keep the programs going. He stated he would need to have a detailed review as to what would have to be cut with the loss of the state funding. Dr. Rheault said he would submit this information to Ms. Botts.

Senator Raggio inquired whether any thought has been given to asking the business sector for additional funding for this program. Ms. Elliott pointed out the Wells Fargo Foundation will be contributing $20,000 to a program at the Community College of Southern Nevada (CCSN) in partnership with CCSD. She agreed some of the programs have momentum and there is an opportunity to go back to the businesses seeing the benefit of the program, and request funds. Senator Raggio said the program is very important to the business community and this is only a suggestion, given the tight budget. Ms. Elliott added the council is looking at each of the partnerships as they relate to the opportunity for sustainability. Senator Raggio emphasized the program has to continue the goal of high academic achievement.

Senator Rawson recalled the federal grant was to be used as seed money, and pointed out it would seem the state has failed if the partnerships are not developed and continued.

Education State Programs – Budget Page K12 ED-1 (Volume 1)

Budget Account 101-2673

Ms. Peterson explained this is the main administration budget for the State Department of Education. She reviewed the major functions of this budget as shown in Exhibit F. She said the only source of revenue other than General Fund appropriations is minor and comes from the sale of educational materials.

Ms. Peterson referred to student enrollment information from 1988-1989 to 1997-1998 shown on page 2 of Exhibit F. She pointed out enrollment grew by approximately 70 percent while staffing at the department of education grew approximately 16 percent. She said a 1.8 vacancy savings factor is included in the base budget and travel expenses for the State Board of Education remain at the same level as in FY 1998.

Ms. Peterson stated there are two maintenance items funded in The Executive Budget. M-100 is for inflation in printing and employee tort insurance premiums and postage, and M-300 reflects the changes in fringe benefits rates, she explained. Ms. Peterson said there is an enhancement to upgrade equipment. She noted no other enhancements are included in the Governor’s recommended budget.

Senator Rawson asked the purpose of this budget. Ms. Peterson explained this budget carries out all of the state-mandated functions for education with the exception of assessment. She said this is the budget that funds education consultants for English language arts, math, and science, as well as the private school consultant. She pointed out this budget provides technical assistance to the school districts along with regulatory and monitoring functions. She said monitoring is limited due to staffing constraints.

Senator Rawson noted the performance indicators show the number of licensed personnel receiving at least 2 hours of training is 800 in FY 1999, increasing to 1,600 in FY 2000. He said he does not see a funding unit for the increase. He asked whether training is closely monitored. Ms. Peterson answered the department had requested an enhancement in this budget account for professional development, but it was not approved. She said if there were funds available the department could begin to address the professional development needs in the state. She emphasized it is imperative to have professional development for teachers on the new standards. She said this enhancement would have created professional centers throughout the state. Senator Rawson inquired whether the number of teachers receiving training needs to be reprojected. Ms. Peterson answered the department will review the numbers. She said part of the reason for the increase is the implementation of the new standards. She added the department staff gives workshops for teachers on the new standards and will continue to do so, to the extent there is staff available. Ms. Peterson testified the increase reflects the anticipation of the need for workshops and training to address the new standards.

Senator Rawson stated the issues in this budget are complex. Mr. Goldwater called the failure to fund certain items in decision unit E-999 "alarming." He referred to programs that were started and are now being eliminated. He asked what the impact of not funding these programs might be, particularly the Early Childhood Development and Statewide Management of Automated Record Transfers (SMART) programs. Ms. Peterson answered the Nevada Even Start program was funded with a one-shot appropriation in 1997 and was modeled after the national Even Start program. She referred to Exhibit G, "Report Regarding Early Childhood and Adult Literacy Programs and Activities of Early Childhood Education Consultant." (Original is on file in the Research Library.) She pointed out this report was prepared pursuant to a letter of intent received from the Legislature after the 1997 Legislative Session. Ms. Peterson pointed out this report includes an evaluation of all the components of the Early Childhood Development progam.

Ms. Peterson stated the Even Start program has three essential components. One is a quality early childhood component whose purpose is that children who would not otherwise have normal childhood experiences would have them, through this program. Mr. Goldwater asked what the dollar amount of these enhancements would have been. Ms. Peterson said these figures are shown on page 4 of The Executive Budget. She said the Even Start program was funded as a one-shot appropriation of $828,000 for each year of the biennium, and a similar level of funding was requested for the next biennium. Senator Rawson asked whether there was a matching requirement or whether there was any discussion in the original legislation about what would happen in the future. She said there are some federal funds for Even Start; however, she noted, this program was expanded beyond the federal program to serve many more children and families, and there is no matching requirement.

Ms. Peterson said the second component of Even Start is a parenting component requiring parents in the family to attend parenting education classes. The third component of the program requires the parents be enrolled in some kind of educational program, she said. Mr. Goldwater inquired what will happen when the program is cut. Ms. Peterson stated that over the past two years, 10 new programs were started. She referred to the statistics found in Exhibit G. She explained the purchased equipment will go to inventory control and be redistributed. She said those employed by the programs will no longer be employed by those programs. Ms. Peterson maintained the real issue is that the children in these programs will no longer receive early childhood education.

Senator Rawson asked whether there has been any discussion of existing programs picking up the Even Start program or whether resources could be redistributed. Ms. Peterson responded this is being worked on. She said there are some federal funds; however, they are not increasing dramatically.

Senator Raggio stressed there is a need to know what enhancements would be necessary or appropriate to further the effort of education reform, particularly the component of teacher training. He said approximately $800,000 a year for professional development is only a small part of what is being talked about. He recalled that on another occasion the committee was told it would require two days for all of the teachers to come together for training and this would cost approximately $20 million. Senator Raggio stated he cannot understand why it would cost that much. He noted there is considerable funding for remediation programs, which are essential. He said no one wants to see the effort of teacher training diminished or stalled because all components are not funded.

Senator Raggio requested that Ms. Peterson provide a cost-effective means for retraining teachers to the new standards, through cooperation within the department and the school districts and within the funding available. He stated there may be a need to utilize some of the days within the school year for the purpose of teacher training, without the cost that is frequently associated with this training. He asked whether there is something that can be done so that everyone works together towards this goal. Ms. Peterson said yes. She called attention to Exhibit H, "Business Plan." This is a plan for professional development for new standards, she noted. She said professional development was the top enhancement priority of the board.

Ms. Peterson explained the business plan is divided into two parts. One part is to establish the professional development centers, and the other is to add the two training days. She said this proposal is very similar to the one the Legislative Committee on Education has recommended. She pointed out the business plan does not require a new staff person in the State Department of Education. Ms. Peterson emphasized the focus of the plan is to provide professional development to teachers. She reiterated that professional development is primary if standards-based educational reform is to be taken seriously.

Senator Rawson noted that some teachers may not need to be trained. He stated there should be some way to prioritize the list of teachers, and determine what will be most effective.

Senator Raggio asked for further explanation of the business plan. Ms. Peterson explained the bulk of the $22 million is to be used to send teachers to two days of training. She said the remainder of the request is to establish the professional development centers. She pointed out the staffing request indicated is for regional professional development center coordinators. Senator Raggio stressed the $22 million is not available to add two days to teacher contracts. He asked what can be done to accomplish the necessary professional development in the absence of that kind of funding. Ms. Peterson answered the professional days provided in teachers’ current contracts can be reexamined and refocused on educational standards. Senator Raggio asked whether, for the next two years while the state is trying to get teachers "up to standard," two days presently used for teacher institutes could be utilized for professional development without adding such high costs. Ms. Peterson responded yes. Senator Raggio asked whether the school districts and the department would be willing to take this approach. He stressed that with the tight budget everything within means should be utilized to accomplish the highest priority, and professional development is his highest priority.

Ms. Peterson said she believes the districts would cooperate. She noted all those involved have not been asked the question. Senator Rawson requested the districts be surveyed while the Legislature is in session to find out how many training days are in the current contracts. He said the committee would like to work within the current contract days and not send children home for another two days. He stated a letter of intent could be sent from the money committees (the Senate Committee on Finance and the Assembly Committee on Ways and Means).

Senator Mathews asked when the Cultural Diversity and Indian Education positions were filled following the last legislative session. Ms. Peterson replied that both of the positions were filled in February 1998. She added the funds became available October 1, 1997. She said there was some difficulty getting qualified individuals, but the department is very pleased with those who are in the positions. Ms. Peterson explained those selected for the positions had to give adequate notice to their employers prior to assuming the positions. She said there was a letter of intent asking for an evaluation of these positions by March 15, 1999.

Senator Mathews pointed out these positions have been deleted from the Governor’s budget. Ms. Peterson stated the evaluation will show that the persons in these positions have done some very good things. She said the department requested funding for both positions. She said the detailed priority list submitted by the State Board of Education shows these two positions at the top of the list. Ms. Peterson stated an outside evaluator was hired to perform the evaluation of both positions and the report will be forthcoming.

William Hanlon, Las Vegas, District 2, State Board of Education and State Board for Occupational Education, commented the states that have been most successful in educational reform, North Carolina and Texas, include among their programs a strong component of early childhood investment and a computerized feedback system comparable to the SMART program. He stated that while these two components are important, the most important is instruction, and professional development is key to excellent instruction. He stressed it would be "remiss" to think that some of the low scores in math and science are not in some way related to teacher preparation. Mr. Hanlon said it is known that fewer than 60 percent of those teaching mathematics have a degree in math.

Mr. Hanlon pointed out one of the concerns of local districts is the criticism the districts may receive from the Legislature. He said professional development across the nation has failed for several reasons, primarily because it is an event happening once or twice a year. He stressed that research is very clear on what makes professional development work. He stated that first, it must be rooted in a discipline that is being taught; second, it must contain content and pedagogy; third, it must be ongoing; and fourth, it should be offered on-site.

Mr. Hanlon said the only way to have a successful program in professional development is to have regularly scheduled early release days within the schools once or twice a month. He pointed out children would be sent home early so that teachers’ specific needs may be addressed. He said taking care of an instructional problem by reducing contact time with students would seem to be a dichotomy, but the fact is, there is a workforce shortage in math and science and those teaching these subjects are not prepared. He stressed he believes the school districts will be very reluctant to reduce contact time with students unless there is some acknowledgement from the Legislature that this is the appropriate way to provide the teacher training. He emphasized the plan to implement new standards will fail if the training only occurs twice a year. He reiterated the research is very clear on how the professional development must be offered.

Mr. Hanlon repeated that if the Legislature were to come forth and say it would like the school districts to use a half day a month to release children so staff development can take place within the individual teachers’ disciplines, there would be little cost and the program would be much more effective.

Senator Raggio agreed it would be better to release children early a few days each year to accomplish the goal of improving instruction. He also agreed the training should be an ongoing effort. He asked how many days are presently dedicated to training in Clark County. Mr. Hanlon responded regulation allows the superintendent of instruction to designate up to 2 days a year for training purposes and he believes Clark County schools use the 2 days. Senator Raggio asked whether the days can be used in half-day segments. Mr. Hanlon answered they can, but suggested a minimum of 1 training day a month needs to be scheduled in order to accomplish what needs to be accomplished. He said there is a need for local districts to provide in-service for the entire school district on a number of things, and therefore he would not want to take the ability away from the school district to plan the use of the early release days. He reiterated the local school districts would be fearful of using additional instructional days for professional development when it would be very likely the schools would be criticized by the Legislature for such action.

Senator Raggio maintained that sometimes to reach a goal one has to rise above political concerns. Mr. Hanlon said if the Legislature would endorse what the research shows to be good professional development, it would take away some concerns of the local districts and allow them to make sure teachers can teach what they should be teaching. Senator Raggio invited suggestions that might be acceptable to all involved in this issue.

Senator Rawson reiterated the need to survey the districts while the Legislature is in session. He asked Ms. Peterson to find out how many half days the districts are using and how the days are being used. He said sometimes release days become free days and not much is accomplished. He stressed this is a time for all of the effort possible to be put into the content of the early release days.

Ms. Evans inquired whether the credits needed for relicensure can be obtained in any subject. Ms. Peterson answered the credits are supposed to be related to the area of responsibility. Ms. Evans said it really comes down to what the districts’ requirements are. She asked whether there is a way to tie in the professional development to the credits required for relicensure. Ms. Peterson replied one of the elements of the business plan for professional development is the recommendation that the training classes be offered for renewal credit. She indicated this could be a stimulus for teachers.

Mr. Goldwater noted module E-233, a request for instructional materials, was not funded. He asked about the expected impact of the decision not to fund the unit and whether or not "someone else can pick this up." Ms. Peterson pointed out that what was requested in E-233 was very similar to what was requested and received during the last legislative session. She stated the purpose of the request was to develop instructional materials to go along with the new standards. She said teachers would use the materials for teaching in the classroom and samples of student work are being collected so that teachers will know what it looks like when students are achieving the new standard. Mr. Goldwater asked whether this will get done. Ms. Peterson answered no.

Valerie Dockerie, Grants Coordinator, Carson City School District, said Carson City is fortunate to have both a federal and a state grant for the Even Start program. She explained the federal program was started 4 years ago, and when the state money became available another grant was awarded to mirror the federal program. Ms. Dockerie said there are 40 adults and 65 children currently enrolled in the state program, with a waiting list of 13 families which include 13 adults and 15 children. She stated this program is "part of Dr. Lightener’s statewide evaluation," as well as the district’s own local evaluation. She introduced a parent in the program, Aurora Lugo, who has three children ages 7 and 5 years and 10 days. Ms Dockerie explained this parent is involved in weekly home visits where important skills needed to get her children ready for school are taught, and Ms. Lugo also attends a computer-based English-as-a-second-language (ESL) program. She said the teachers in the program work with the children that are in school.

Aurora Lugo, an Even Start program participant, told the committee her daughter was months behind because she was unable to go to kindergarten, but now she is learning a great deal through the Even Start program. She added the program is good for her (Ms. Lugo) also because she can go to school and use the computer to learn English. Ms. Lugo noted she has received her high school diploma since starting this program. She said this program is especially good for Hispanic people. She stated Hispanics want to speak English better than they do now. Senator Rawson complimented Ms. Lugo on her English and encouraged her to use English every chance she gets.

Mr. Goldwater stated Mrs. Chowning was in attendance earlier but had to leave and had requested that Mr. Goldwater indicate her support for the Early Childhood and Cultural Diversity programs. He said Mrs. Chowning has a bill in on this issue.

Senator Rawson said that in this budget the performance indicators show there is no position for library instruction. Ms. Peterson answered the position was vacant from January 1998 to August 1998. She said technical assistance had been provided, but perhaps not before the performance indicators had to be submitted. Senator Rawson asked why the position was open so long. Ms. Peterson replied the library consultant had a considerable amount of leave time and also was on an extended leave of absence. She did not leave state service until February or March 1998. Senator Rawson stressed that a way must be found to get around administrative issues to meet "needs." He remarked, "This scenario causes positions to be lost, and recommendations need to be made to rectify this matter." He stated if it can be demonstrated for a year that a position is not important, then it will be perceived as not important. Senator Rawson stressed this position is very important.

Ms. Peterson testified she will request an examination of salaries from the Department of Personnel because she believes the consultant-level salaries in the department are too low. Senator Rawson said if there is someone with half a year of leave, more than just salary needs to be reviewed. He suggested that when someone has to take an extended leave of absence it should not be guaranteed that the specific position left will be held for him or her. He stressed that critical functions cannot be left unattended. Ms. Peterson agreed.

Ms. Evans asked what will happen to the Commission on Educational Technology without funding. Ms. Peterson answered the commission is required by law to meet four times a year, so without funding the law will have to be changed. Ms. Evans asked how it is possible to end up with no funding for something that is mandated. Ms. Peterson answered funding for the commission was requested, but it was not included in The Executive Budget.

Don Hataway, Deputy Director, Budget Division, Department of Administration, stated he does not have an alternative source of funding in mind for this activity. He said the division is currently evaluating available resources. He pointed out the rationale for eliminating the funding was that the Commission on Educational Technology will have completed the adoption of a master plan the commission members have been working on for the state, so it was felt there would be no need for them to meet. He said there was most likely a miscommunication on the part of the division regarding funding for the Council to Establish Academic Standards for Public Schools. He said the division thought the Legislative Committee on Education was going to pick up the full cost of that program. Mr. Hataway added the Legislative Committee on Education is only picking up the consulting service portion of the budget and this commission does have ongoing activities. He said there are no recommendations at this time.

Ms. Evans noted there is continued funding for the Education Technology Consultant and a .25 time secretary. She said no hardware or software has been funded for educational technology or for the completion of the implementation of the SMART program. Mr. Hataway maintained the division has had difficulty in matching the needs to the available resources. He said The Executive Budget two years ago recommended $15.5 million for SMART and the department said it could not implement everything that needed to be done in the two-year period, so the onetime appropriation was reduced to approximately $12 million. He pointed out that now there is a $14 million request, $9 million of which is to complete the program. He said even funding the $3 million expected to be needed in the next biennium was difficult, and suddenly there is a $9 million to $14 million problem. He stressed that no more of the $4.4 billion in requests could be covered by $3.2 billion in available resources. Mr. Hataway pointed out the SMART position, as well as the technology position, will continue.

Ms. Peterson added it is important to continue both of these positions to provide technical assistance to school districts, and in the case of the technology position, to provide training to teachers even though there may not be additional funds for new equipment, hardware, and software.

Ms. Evans asked the department to provide an indication of a level of funding that would retain some of the programs for which funding has been eliminated or reduced. Ms. Peterson said she would provide some revised figures. She added the point needs to be made that the Legislature invested in sound programs in 1997 and the department does not want to see those efforts lost. She said that to protect and continue the investment, a way needs to be found to continue the programs, even at a much-reduced level. Ms. Evans stressed she does not mean to imply there will be funds available for this purpose, but it would be helpful to the committee in its deliberations to see some revised figures.

Proficiency Testing – Budget Page K12 ED-21 (Volume 1)

Budget Account 101-2697

Ms. Peterson provided a program description and caseload information for this program (Exhibit I). She pointed out this program is almost entirely state-funded. Senator Rawson noted the performance indicators do not show the average percentile ranking of fourth- and eighth-grade students increasing, yet a tremendous effort is being put into academic standards and accountability. Ms. Peterson said that with a nationally norm-referenced test, the 50^th percentile is the average and what would be expected. She pointed out students have been tested each October and from October 1997 to October 1998 there was a slight increase in the TerraNova scores. She said the statewide test averages can be provided to the committee. Ms. Peterson stated the scores shown are somewhat low, based on October 1998’s actual test results, because the performance indicators had to be submitted with the budget prior to having the actual test results.

Senator Rawson referenced the percentage of students passing the Nevada High School Proficiency Examination on the first attempt. He noted the goal was 75 percent passing the exam on the first attempt in 1998 and 1999, but the goal in 2000 is only 65 percent. He stated one cannot expect to improve when the goal is lowered. Ms. Peterson said the goal is based on 1998’s experience with the new exam. She pointed out the Legislature mandated that the exam be more difficult; also, last school year a moderate passing score was set and this year it had to be raised. She stressed that making the test more difficult and raising the passing score have had a significant impact on the passing rates in high school.

Senator Rawson asked whether procedures on test security have been developed. Ms. Peterson responded yes. She said a manual has been prepared and it has been forwarded to the Legislative Counsel Bureau as required by the Legislature’s letter of intent. Senator Rawson asked whether a teacher has put one of the exams on the Internet. Ms. Peterson answered the department is working with the Office of the Attorney General to investigate that allegation. Senator Rawson inquired whether there is adequate law to take steps against this type of action. Ms. Peterson replied that under current state statute reasons are delineated whereby school districts can take disciplinary action and there is provision for the State Board of Education to take action on the teacher’s license for immoral or unprofessional conduct. Senator Rawson emphasized there needs to be clear authority to dismiss someone who compromises the tests.

Senator Rawson said there should be a civil liability attached to this type of action. He pointed out it will cost thousands of dollars to replace an exam that is compromised. He stressed that anyone bold enough to destroy the work of any test should have to pay a penalty for doing so. Ms. Peterson said she agrees but it depends on the situation, and that is why the attorney general’s office is involved when these types of situations are investigated. Senator Rawson requested staff to see what the legal foundation is and whether the law needs to be bolstered in that regard.

Senator Coffin suggested the tests should be changed so frequently that security would not be an issue. He further suggested the questions should continuously be changed in such a way that when the information is taught "it is more spontaneous." He said students could study the tests after they have been given. He pointed out this is done with some professional certifications. Ms. Peterson stated she thinks it would be in everybody’s best interest if more test items could be released to teachers and students so they would know what is expected of them on the tests. She said sample tests have been provided and the law does allow the state superintendent to release items after they have been used on a test.

Ms. Peterson noted one of the enhancements requested in this budget account was funding to contract out the entire High School Proficiency Examination program. She said this would enable the department to have a large bank of test items to reach the point of having every form of the test be different and then the security would become a moot point. She said it is imperative to have a large enough test-item bank so each form of the test can be different. She stated that to develop a test item bank is very labor-intensive and expensive. Ms. Peterson pointed out each test item must be validated to make sure it measures what it is expected to measure.

Senator Rawson said one philosophy is to have all questions available to students and it does not matter how the content is learned, as long as it is learned. He stated this is not the direction the state is headed in. He stated this is a complicated issue, but the department must not lose control of the testing. Ms. Peterson agreed and said that as these tests become more "highstakes," experience from other states has shown that security becomes more of an issue. Senator Rawson maintained it is blatantly wrong for a teacher to put a current exam on the Internet.

Ms. Peterson testified this budget also covers the National Assessment of Educational Progress (NAEP). She said this organization is commonly called "the nation’s report card." She stated national scores have been released but there were some technical difficulties in the development of the state reports. She said these reports should be ready within two weeks. Senator Rawson cautioned the scores should not be manipulated to show results the committee would like to see. Ms. Peterson said the department has no control over the data. She explained this is a random sampling and NAEP selects the schools to be sampled, then the results are sent to the National Center for Educational Statistics in Washington, D.C. for scoring and reporting.

Senator Rawson called attention to a concern of some of the rural counties regarding test scores. He said some of the counties have juvenile offender programs whose participants’ test scores could be included in the test results. He requested that scores from the juvenile programs be separated from test results for these counties. Ms. Peterson said she has just received such a request from Lincoln County and she agreed this is a reasonable request.

Ms. Peterson said the base budget recommends continued funding support for six classified positions and related operating costs. She pointed out the Governor’s budget includes an M-100 decision unit for inflation, an M-200 decision unit for demographic/caseload increases in the state writing assessment, and an M-300 decision unit for fringe benefit adjustments. She said there is one enhancement for hardware and software.

Senator Rawson stressed there have been reports of school districts not accepting computer gifts because the districts have the funding to get exactly what they want. He added there are reports of serviceable equipment being discarded. He asserted the surest way to stop any state funding for technology is to see that there is a nonchalance about equipment. He said there are schools in the state that do not have equipment and if there are large districts with excess equipment, the equipment needs to get to schools that can use it. Ms. Peterson said she would follow up on this allegation.

Ms. Peterson added that funding was provided by the 1997 Legislature to develop criterion-referenced tests (CRTs) to support the assessment of the new academic standards developed during this past biennium. She said that as a result of the state’s revenue shortfall, the department was asked to revert approximately $1.2 million in state appropriations by June 30, 1999. She explained that $271,500 appropriated for the CRTs was earmarked for reversion. Ms. Peterson pointed out that since the department did not anticipate the money would have to be reverted when the budget was submitted in August 1998, a request for funds to begin the development process was not included. She stated additional funds to continue the process were requested, but this request was not included in the Governor’s recommended budget.

Ms. Peterson pointed out CRTs are an essential step in standards-based reform. She maintained the tests are critical to the implementation of the new standards and requested the committee to give careful consideration to restoring funds for CRT development.

Jeanne L. Botts, Senior Program Analyst, Fiscal Analysis Division, LCB, called attention to the percentages of students in Nevada passing the high school proficiency exam on the first attempt. She stated what is showing for FY 1998-1999 is incorrect. She said 60 percent passed the test and 40 percent failed one or both parts. She pointed out it appears the percentages of students passing the math test and those passing the reading test were averaged to arrive at the 73 percent. She said this cannot be done; it has to be the percentage of each student passing both tests.

Ms. Evans said it is hard to understand the lack of support for professional development and CRTs. She stated that one cannot be done without the other. She commented there are supposed to be higher standards, but teachers are not being helped, and tests that link with the higher standards are not being provided. She said there will now, for the first time, be students leaving high school without diplomas, and there will be some unhappy parents. She called attention to the elimination of the Remediation Consultant position. She pointed out this position is linked to the high school proficiency exam.

Ms. Peterson said funding for the Remediation Consultant became available October 1, 1998, and the funding for the position was part of the reversion. She insisted the high school proficiency exam is a critical need. She said that in FY 1998, $232,511 was appropriated for the exam and this year the appropriation is approximately $193,000. She pointed out the Governor’s recommendation for FY 1999-2000 is $150,000. Ms. Peterson said she has no idea how the test can be administered with this funding. Ms. Peterson said the department had requested approximately $1 million based on an estimate received from a testing company. She noted that another estimate which is considerably less has been received from a different company. She said that estimate was forwarded to Ms. Botts.

Ms. Peterson acknowledged a third scenario was prepared showing what the minimum amount would be to complete the testing by keeping it in-house and not contracting out for services. She said many more students are failing the first try, and their retaking of the tests means additional printing, scoring costs, and reporting costs. The estimate under this option is approximately $450,000, she said. Ms. Peterson said the entire testing program is a critical need. She asserted that if the state is going to continue with standards-based reform, CRTs must be developed. She maintained that the necessary printing of the high school proficiency exams cannot be done for the $150,000 recommended by the Governor.

Ms. Peterson pointed out that funding for the norm-referenced test has been combined with the TerraNova test. She said the Governor has recommended $382,000 in FY 1999 and $378,000 in FY 2000 for the TerraNova test. Senator Rawson mentioned there is an option in TerraNova where "they can develop options of how well Nevada students have met the standards." He said that option might require an extra module of questions which would add cost. Ms. Peterson concurred this would be an option. She said that option was not included when the standards council made recommendations to the State Board of Education on testing, but given the budgetary constraints it could be considered.

Mr. Hettrick noted the testing was done for $232,000 in FY 1997-1998 and for $193,000 in FY 1998-1999. He requested information on the "truly critical" programs and the absolute minimum dollars required to accomplish the testing. Ms. Peterson referred to Exhibit J showing the alternative plan to the high school proficiency testing program. She said the department developed this plan as an alternative to contracting out for testing services. She told the committee this would keep staff at a minimal level, but would keep the program operational and functioning. She said total expenditures would be $384,000 in FY 1999 and $371,000 in FY 2000.

Ms. Botts pointed out to the committee that in the budget summary the proficiency exam expenditures in 1997-1998 totaling $232,000 did include two administrations of the exam to all high school juniors in the state. She said this was unusual because there was a pilot test in October and then a test where scores would count in April. She stated there also were some expensive practices the department had adopted wherein all of the tests were sent to the department and temporary clerical help was hired to order the tests numerically and then shred them. She requested a detailed budget projection of testing costs. Ms. Peterson remarked the practice of having the tests sent to the department has been abandoned.

Mr. Goldwater requested a listing of what programs will not be done at all as opposed to what will be done by someone else. He said there is no point in funding a program at a certain level if the functions cannot be carried out with the funds provided. Ms. Peterson said the department will try to provide a list.

Commission on Postsecondary Education – Budget Page K12 ED-30 (Volume I)

Budget Account 101-2666

David Perlman, Administrator, Commission on Postsecondary Education, provided the committee with written testimony (Exhibit K). He outlined the makeup of the commission and staff. He said the mission is to provide quality postsecondary educational opportunities for Nevadans by ensuring that only reputable educational institutions operate in Nevada. In addition, the commission has been designated by the Governor to serve as the State Approving Agency for veterans’ training programs. Mr. Perlman stated the commission will provide approval and oversight of private and public institutions in which eligible veterans can utilize their educational benefits.

Mr. Perlman said the commission is proud of its ability to comply with administrative and fiscal standards. He pointed out the commission has accurately projected its budget and has consistently stayed within those projections even though it is a small agency and does not have the benefit of salary savings or other mechanisms available to larger agencies.

Mr. Perlman stated there are several increases in the budget for items that are not within his control, such as longevity pay increases and inflation. He said other increases, such as increases for rent, a replacement copier machine, and a replacement computer system, are necessary to both maintain the current level of service and prepare for the continued growth of the private postsecondary education industry.

Senator Rawson remarked he has watched the proprietary postseconday educational institutions for 15 years and there have been times of great concern and significant liability. He expressed his appreciation for Mr. Perlman’s organization and competency in this area. He inquired whether there have been complaints about the money being placed into the tuition indemnification fund. Mr. Perlman responded there have been no complaints even from the shorter-term schools, which were assessed the same as longer-term schools.

Clara Andriola, Commission on Postsecondary Education, testified she dealt with the commission for 9 years as a business owner prior to serving as a commissioner. She said the commission has contributed to ensuring that training institutions provide the service they say they will provide. She stated a lot of work is done to provide the commission with thorough information so the commission can see that the law is upheld. She urged the committee to approve the current budget and support the Commission on Postsecondary Education.

Senator Rawson asked whether there have been any applications from companies regarding a pharmacy program. Mr. Perlman answered he contacted a company setting up office in southern Nevada and explained the laws of the state. He said the company is going to apply for licensure. He noted another two-year institution has been approved by the commission for a pharmacy technology program. He said the school is currently working with the State Board of Pharmacy to get the curriculum approved.

Education Support Services – Budget Page K12 ED-35 (Volume I)

Budget Account 101-2720

Ms. Peterson reviewed the program description and requested enhancements for this budget (Exhibit L). Senator Rawson pointed out it may not be within the scope of work for a Management Analyst III to develop some of the things shown in E-129. He asked whether this position will report directly to the superintendent. Ms. Peterson answered the plan is for the person in the position to report to the chief accountant.

Senator Rawson indicated the need for an explanation of the reserve in this account. Sherry Blackwell, Principal Budget Analyst, Budget Division, Department of Administration, explained the reserve in this account is a concern and there needs to be a review of what will actually be earned in the other budgets. She said the existing reserve in FY 1999 will be used to fund pay raises, so that amount of money is not carried forward. She stated that once all of the budgets are finalized there can be a review of how the revenues will be earned and transferred into this budget. Senator Rawson declared the committee will want to know more about this before budgets are finalized. He asked for more detail on the reserve as more detail becomes available.

Drug Abuse Education – Budget Page K12 ED-48 (Volume I)

Budget Account 101-2605

Ms. Peterson gave a program description and stated the purpose of the funds requested, as shown in Exhibit M. She provided an agenda for an upcoming conference funded out of this program, "Safe Harbors, a Symposium on Safe, Disciplined, & Drug-Free Schools" (Exhibit N). She pointed out the conference presents the kind of training and technical assistance provided through this program. She said an evaluation is required by law and a letter of intent from the 1997 Legislative Session. She called attention to an evaluation report titled "Nevada School-Based Substance Abuse and Violence Prevention Programs" (Exhibit O. Original is on file in the Research Library.). Ms. Peterson said the evaluation goes through the various programs that are funded with this budget account, describes what the programs do, and evaluates their effectiveness.

Senator Rawson said it is his understanding the Drug Abuse Resistance Education (DARE) program has been shown to be ineffective. He inquired whether schools in the state are using the program. Ms. Peterson replied she believes some schools want to use the DARE program. She said the department will share the evaluation report with the schools and meet with those coordinating the program at the school district level to encourage them to focus all their funds and efforts on programs that have been proven effective. Senator Rawson asserted it should be made very clear what is and what is not an effective program.

Senator Rawson inquired whether any grants will be received over the next biennium. Ms. Peterson responded there is additional Title IV funding from the federal government for new programs. She stated the funds must be earmarked for specific purposes and some funds are targeted for middle schools. She said she has forwarded this information to Ms. Botts and she will forward any new information.

Senator Rawson asked whether there are cost estimates for the surveys that will be conducted. Ms. Peterson answered there may be some confusion about the year for which the survey funds were requested. She said the department will work with Ms. Botts to clear this up if the request was for the wrong year.

Senator Rawson asked whether it was the Governor’s recommendation to add a half-time consultant. Ms. Peterson answered yes. Senator Rawson inquired whether there is a job description for this position. Ms. Peterson said the department requested the position and there is a job description of what the duties would be.

Ms. Evans said she noted in the executive summary which programs have been effective and which have been ineffective. She asked how the effectiveness of the programs is determined. Ms. Peterson said the department established the criteria for the program in conjunction with program people in Washington, D.C. She stated the department requested and oversaw preparation of the report. Ms. Evans inquired whether the methodology for establishing effectiveness is in the report. Ms. Peterson replied she thinks it is but if it is not, the department will provide the information.

Ms. Evans said that over the interim there was a study on juvenile justice and there was a lot of criticism regarding treatment, education and prevention. She pointed out the Legislative Subcommittee to Study the System of Juvenile Justice in Nevada will be performing an evaluation, but the system will also be subject to an independent review by an outside consultant. Ms. Evans said she is interested in information on the methodology not only for assessing effectiveness of drug abuse programs, but also for assessing the degree of violence in the schools.

Education of Handicapped Persons – Budget Page K12 ED-56 (Volume I)

Budget Account 101-2670

Ms. Peterson reviewed the program description and caseload information shown in Exhibit P. She said this program is designed to provide funding to place special education students, with needs beyond those that can be met in the local school districts, in other school districts, or through out-of-state placement.

Ms. Peterson pointed out the caseload numbers have gradually declined and these students historically represent about 1/50th of 1 percent of all school-age children. She said that in the past year there have been approximately 20 out-of-state, out-of-district placements. Senator Rawson asked about the Governor’s recommendation to consolidate funding for special education units into the total basic support guaranteed through the Distributive School Account (DSA). He asked whether there will be a stronger drive by the local districts to transfer special education students to this program. Ms. Peterson answered local districts will be held to the same laws and regulations for special education that are now in existence and the applications will undergo the same kind of scrutiny as they always have. She predicted the Governor’s recommendation will not have a large impact on this program.

Ms. Peterson insisted this is a very volatile program, typically driven by expensive kinds of placements. She said even a small number of special education children can rapidly drive up costs. She called attention to the department’s request to provide for a potential five new placements for each year of the upcoming biennium because of the potential volatility of the program. She noted the Governor has not recommended this funding in The Executive Budget.

Ms. Botts clarified $250,000 of federal money in this budget has been reserved in budget account 101-2715, Individuals with Disabilities. She said that if needed, the $250,000 can be transferred to this account to cover additional placements, but it has to be matched dollar for dollar with state general funds. She pointed out that if the transfer were to become necessary, the department would have to go to IFC, not only to transfer the money to this budget account, but for a contingency fund allocation.

Ms. Blackwell explained that with the ability to move the General Fund money from year to year, the first year could be covered if there was a child needing services for a traumatic brain injury and if necessary the department could ask for a supplement or contingency fund money in the second year.

In closing, Ms. Peterson reiterated the Governor’s base budget does cover and maintain the functions of the department. However, as the state looks to standards-based reform and implementation of testing and assessment, it is imperative the department move forward with the development of CRTs, she emphasized. Ms. Peterson stressed the need for providing professional development to teachers so the teachers know what the standards are and have the strategies to teach to those standards. She said the Governor has provided some funds for remediation in budget account 101-2710; however, this account is based on Estate Tax revenues, which have not been very high. She asked the committee to keep in mind the importance of testing in promoting standards-based reform and professional development.

Larry L. Spitler, Lobbyist, Clark County School District, insisted it is imperative that some sort of arrangement be worked out this legislative session to complete the implementation of the SMART program. He said that once everything is on-line, the kinds of information necessary to make policy decisions will be available. He requested that as budgets are considered, SMART be given a high priority. He said the SMART program is extremely important not only for the school districts, but also for the state as a whole. Mr. Spitler stated some research will be done on some of the points brought up by Mr. Hanlon and Senator Raggio to see whether there might be more the school district can do to help accommodate some of the changes.

Kristine K. Jensen, Lobbyist, Nevada Concerned Citizens, commended the work of the academic standards council. She said that at the National Education Goals Conference, she listened to a report on several studies that showed the number one indicator of student success in school is the competency of the teacher. She stated that at another conference on education she heard that the issue of standards and staff development rarely attacks the core problem, the solution to which requires addressing the course content and expecting good teaching.

Ms. Jensen urged the committee to hold firm on the Governor’s recommendation of zero funding for the School to Careers initiative because she believes the state can do a far better job in locally funded and supported initiatives. She asserted the direction the national program is taking is not where the state of Nevada wants to go with the program. She said the underlying assumption in the "flawed" school-to-work legislation is that the fundamental change occurring in the nature of work today requires systemic change in the education system so children will be productive workers. She maintained these changes look to industry-based standards, not to academic standards. Ms. Jensen said no one denies that many workers lack the literacy and math skills needed to perform their job assignments. She stated a recent report of the National Manufacturers Association shows that 40 percent of all 17-year-olds do not have the necessary math skills and more than 60 percent do not have the necessary reading skills.

Ms. Jensen said school-to-work advocates claim the students are more engaged and motivated by the type of learning entailed in the school-to-work curriculum, but the question is, What are they learning and how well are they learning? She insisted that academic knowledge, not workplace skills, is the "bedrock" of an intelligent and motivated workforce. Ms. Jensen said the Hudson Institute reported that if America could increase the number of traditional high school graduates with the appropriate reading, writing, math, computing, and reasoning skills, this would go a long way toward filling available jobs. She maintained this would lay a suitable foundation for workers to upgrade skills of their own volition. She stressed that many times, "strong academics" are sacrificed in the name of work-based components of learning.

Senator Coffin stated he has a hard time discerning the difference between what Ms. Jensen wants in academic core training and what business people in the workplace want to see from employees. He maintained the goals are the same. He asked whether she is concerned about the "unification of some worldwide standard" that is troublesome to her. Ms. Jensen agreed that businesses do want literate employees who can think independently and be successful in the workforce. She stated the philosophical difference would lie in what is defined as education. She insisted it is not the purpose of education merely to satisfy the needs of business.

Mr. Goldwater said it would be nice to advance a person’s interest in the liberal arts or make the person interested in math. He added the reality is, it does a lot more for the state and the people in his district to help individuals get started in a career or trade. Ms. Jensen maintained she supports vocational education in every aspect and recognizes its importance, but has a problem with what the legislation intends in the future.

Janine Hansen, President, Nevada Eagle Forum, testified that when education is focused on academics rather than on School to Careers, all children will be able to succeed better in the workplace. Ms. Hansen maintained many children have been funneled into programs that do not challenge them academically and their potential is diminished. Senator Rawson pointed out the state is working on the issue of standards and accountability. Ms. Hansen acknowledged the worthwhile endeavor of the state in this regard.

Ms. Hansen mentioned the national studies performed on the issue of drug education. She emphasized that many of the programs are not effective and in fact have the opposite effect of what the program is supposed to do, which is to reduce children’s involvement with drugs. She maintained DARE is such a program. She said recent studies conducted on the DARE program show this program has not been successful in reducing drug use. Senator Rawson called attention to a State of Nevada study on DARE and said there will be changes made to the program.

Concluding, Ms. Hansen said she is opposed to any additional funding for School to Careers and agrees with the Governor’s cut in funding because education needs to be focused on academics.

Clark (Danny) Lee, Lobbyist, Nevada Adult Education Association, expressed concern over some changes in the budget in regard to class-size reduction, elementary counseling, adult diplomas, and special education. He pointed out the adult diploma program is "equally divided" between institutionalized and noninstitutionalized participants He said that for some reason the prison population remained categorized in the Distributive School Account, whereas the noninstitutionalized component would be placed in school districts’ general funds. He said this brings concern that prisoners may be treated better than individuals not in trouble. He stated there is not a problem with where the funds are shown, but he would like to try to dedicate the funding to the program that has been very successful. Senator Rawson responded it is not shown in the budgets under discussion, but is in the DSA. He asked staff to pay particular attention to this issue when briefing the committee.

Mr. Lee said one complaint has been the pace of the educational process for adult education. He stated that quite often these students get enough education to get them employed and then drop out until there is a need for further education. He requested the committee to keep this in mind when considering funding. Senator Rawson requested Mr. Lee to discuss this issue with Ms. Botts so there is a complete understanding of the concerns.

Senator Rawson adjourned the meeting at 11:25 a.m.

RESPECTFULLY SUBMITTED:

Patricia Hampton,

Committee Secretary

APPROVED BY:

Senator Raymond D. Rawson, Chairman

DATE:

Assemblywoman Jan Evans, Chairman

DATE: