The Joint Finance Committee finished all their work yesterday by completing the Grant In Aid process. Last week they completed budget markup and the published budget bill (HB 190) was distributed on the floor of the House on Tuesday of this week.
None of it becomes reality until both chambers pass the budget and the grant in aid bills. Additionally, some economic decisions regarding construction projects, job creation initiatives, and tax breaks will be taken up by the Bond Committee on Monday, June 20th.
The Bond Committee will be more tight fisted with projects than they might have been after this week's economic forecast. The Delaware Economic and Financial Advisory Council (DEFAC) which estimates state revenues reported an additional $18 million for the fiscal year, but this is after a month of rumors that it might be as big as $40 million. Moreover, their projections show revenue will drop around $38 million in fiscal year 2012.
On a bright note, one of the additions that the Joint Finance Committee was able to do before finishing markup, was make a small investment toward improving paraprofessional pay. In addition to step increase, paraprofessionals will receive an additional $875 on scale. This is a much better deal for paraprofessionals that the original 2% increase.
Finally, in the closing days of the session a charter school regulation bill will be put forward by the Markell Administration to deal with recent problems that have arisen with a few of those schools. DSEA will be involved in trying to influence the legislation.
Friday, June 17, 2011
Monday, June 6, 2011
Joint Finance Committee Labors On
The Joint Finance Committee met again today continuing to work on budget markup. The two big items of discussion today were expenditures under the Tobacco Fund and Medicaid expenditures. The Tobacco Fund refers to money that the tobacco industry has to give states as part of a federal settlement from about a decade ago. In Delaware we have been true to using this money for health care programs. In recent years with declining General Fund revenues, we have been relying more heavily on the Tobacco Fund and drawing down the reserve. Some members of JFC expressed concern about this trend and the dependency of various health programs on the fund.
However, the discussion of Medicaid was much more involved. The Governor's budget proposed $5 million in reductions for Medicaid. A lot of attention focused on use of the emergency room for non-emergency care by the Medicaid population.
From the perspective of an observer, it seemed like there needed to be more information provided to the JFC. (Perhaps it was provided and simply not available to the public) There is no, one, homogeneous Medicaid population. A person who uses Medicaid could be a child, a paraplegic adult, a single mom, an able bodied adult who goes to work everyday in a low-wage job without health benefits, or a senior citizen who is too poor to pay for the gap in coverage from Medicare. So to say that the Medicaid population is over-using the emergency room tells one, next to nothing about what is really going on and why.
To use an example from our sample group above; the working poor often have inflexible employers who do not have "sick days" for their employees. Thus, going to a doctor's office from 9:00AM to 5:00PM is not an option; leaving the emergency room for care. (Although Acute Care clinics are beginning to fill that niche in many areas).
In any case, except for a very few disturbed individuals, people who use Medicaid are just like you and me. They are not going to sit around in an emergency room all night long just to make the state spend more money. There must be something driving the behavior for a specific demographic.
It is this kind of need for more information and thoughtful decision making that prompted the JFC to take the following two actions. First, they restored all $5 million in proposed cuts to Medicaid. Second, they have ordered a task force to study cost savings and innovation in health care and Medicaid.
A major item of interest for educators remains unresolved in the 2012 Budget, the paraprofessional pay plan. This blog has written previously about the promise made by the General Assembly four years ago to raise paraprofessional pay in three phases. The modest goal is to get the starting salary to the federal poverty level for a family of four (currently $22,350 per year). The General Assembly funded Phase I in 2008, but has not funded another phase since the bad budget years.
Given Delaware's unexpected revenues over the last few months, the Delaware State Education Association would like the State to take the opportunity to move paraprofessionals closer to a living wage.
The JFC continues to toil over the budget. They will meet again Wednesday morning.
However, the discussion of Medicaid was much more involved. The Governor's budget proposed $5 million in reductions for Medicaid. A lot of attention focused on use of the emergency room for non-emergency care by the Medicaid population.
From the perspective of an observer, it seemed like there needed to be more information provided to the JFC. (Perhaps it was provided and simply not available to the public) There is no, one, homogeneous Medicaid population. A person who uses Medicaid could be a child, a paraplegic adult, a single mom, an able bodied adult who goes to work everyday in a low-wage job without health benefits, or a senior citizen who is too poor to pay for the gap in coverage from Medicare. So to say that the Medicaid population is over-using the emergency room tells one, next to nothing about what is really going on and why.
To use an example from our sample group above; the working poor often have inflexible employers who do not have "sick days" for their employees. Thus, going to a doctor's office from 9:00AM to 5:00PM is not an option; leaving the emergency room for care. (Although Acute Care clinics are beginning to fill that niche in many areas).
In any case, except for a very few disturbed individuals, people who use Medicaid are just like you and me. They are not going to sit around in an emergency room all night long just to make the state spend more money. There must be something driving the behavior for a specific demographic.
It is this kind of need for more information and thoughtful decision making that prompted the JFC to take the following two actions. First, they restored all $5 million in proposed cuts to Medicaid. Second, they have ordered a task force to study cost savings and innovation in health care and Medicaid.
A major item of interest for educators remains unresolved in the 2012 Budget, the paraprofessional pay plan. This blog has written previously about the promise made by the General Assembly four years ago to raise paraprofessional pay in three phases. The modest goal is to get the starting salary to the federal poverty level for a family of four (currently $22,350 per year). The General Assembly funded Phase I in 2008, but has not funded another phase since the bad budget years.
Given Delaware's unexpected revenues over the last few months, the Delaware State Education Association would like the State to take the opportunity to move paraprofessionals closer to a living wage.
The JFC continues to toil over the budget. They will meet again Wednesday morning.
Thursday, June 2, 2011
JFC Still Working Hard
Ohhhh, I hope blogging is like riding a bicycle, you never forget how, no longer how long it's been.
Life has been busy in education politics. The Joint Finance Committee did two weeks of Budget Mark Up work, did not get finished, did some more this week, and hopefully will finish in a marathon session on Monday.
Educators have held their own, getting a few improvements such as a 2% raise beginning in January, 2012 (as opposed to July, 2012 the actual start of the 2012 fiscal year), and the infamous extra pay period.
Unfortunately, the moratorium on National Board Certification stipends, or Skills and Knowledge cluster stipends will continue yet another year. Without compensating educators for the hard work and time involved, these self-improvement endeavours will become a thing of the past.
There is still one funding issue to be decided that is important to educators, paraprofessional Phase II funding. Four years ago, the General Assembly studied educator pay and found paraprofessional pay particularly egregious. The General Assembly set a modest goal of moving the starting salary of a paraprofessional up to the federal poverty level for a family of four. This was to be done in three phases. In 2008 Phase I was implemented. We have done nothing since then because of the fiscal crisis.
Now, we have some unexpected revenue, so DSEA is pushing hard for Phase II of the paraprofessional pay plan. Remember, this is a modest goal to begin with because federal poverty level for a family of four is only $22,350 a year. Phase II will not yet get them there, but it will help.
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The next item of interest falls under the DSEA commitment to "Protect and Nurture Children". This DSEA legislative plank reads as follows:
Every educator knows the heartbreak and frustration of children who are too hungry, sick, or traumatized to learn well. The opportunity to learn cannot be divorced from socio-economic realities, and those realities are becoming more challenging. In 2010, more than 26% of all US children live in poverty. DSEA will be supportive of legislation, policy, and initiatives which promote the welfare of children and the economic stability of their families.
With this in mind we should be proud of our Attorney General Beau Biden. Mr. Biden is standing up to the insurance industry, by making Blue Cross Blue Shield put money into a health foundation if they merge with a for-profit insurance company. This will mean millions of dollars for indigent care in the state, and that means healthier kids and families in Delaware.
Life has been busy in education politics. The Joint Finance Committee did two weeks of Budget Mark Up work, did not get finished, did some more this week, and hopefully will finish in a marathon session on Monday.
Educators have held their own, getting a few improvements such as a 2% raise beginning in January, 2012 (as opposed to July, 2012 the actual start of the 2012 fiscal year), and the infamous extra pay period.
Unfortunately, the moratorium on National Board Certification stipends, or Skills and Knowledge cluster stipends will continue yet another year. Without compensating educators for the hard work and time involved, these self-improvement endeavours will become a thing of the past.
There is still one funding issue to be decided that is important to educators, paraprofessional Phase II funding. Four years ago, the General Assembly studied educator pay and found paraprofessional pay particularly egregious. The General Assembly set a modest goal of moving the starting salary of a paraprofessional up to the federal poverty level for a family of four. This was to be done in three phases. In 2008 Phase I was implemented. We have done nothing since then because of the fiscal crisis.
Now, we have some unexpected revenue, so DSEA is pushing hard for Phase II of the paraprofessional pay plan. Remember, this is a modest goal to begin with because federal poverty level for a family of four is only $22,350 a year. Phase II will not yet get them there, but it will help.
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The next item of interest falls under the DSEA commitment to "Protect and Nurture Children". This DSEA legislative plank reads as follows:
Every educator knows the heartbreak and frustration of children who are too hungry, sick, or traumatized to learn well. The opportunity to learn cannot be divorced from socio-economic realities, and those realities are becoming more challenging. In 2010, more than 26% of all US children live in poverty. DSEA will be supportive of legislation, policy, and initiatives which promote the welfare of children and the economic stability of their families.
With this in mind we should be proud of our Attorney General Beau Biden. Mr. Biden is standing up to the insurance industry, by making Blue Cross Blue Shield put money into a health foundation if they merge with a for-profit insurance company. This will mean millions of dollars for indigent care in the state, and that means healthier kids and families in Delaware.
Monday, May 16, 2011
Fast Start for JFC
The Joint Finance Committee came out of the gate fast today. The first issue in budget mark-up was salary policy. The Chair, Representative Dennis P Williams, and the Vice-Chair, Senator Harris McDowell, brought forward a proposal: A 2% raise for all state employees and educators beginning January 1, 2012. A 1% pension increase for retired state employees and educators. Step increase for all educators (including support staff such as school secretaries).
After much discussion, this proposal passed unanimously with all 11 JFC members voting for it.
The fact that educator Step Increase was by no means a "given" this year, suggests that we have education and advocacy to do around this issue. Step "increases" are simply movement on a very delayed pay plan. By the time you have been around 15 years, you might be making what someone in the private sector started their career with. Educators should thank Representative Dennis P Williams and Senator Harris McDowell for making Step a part of their pay policy proposal.
The famous or infamous (depending on your perspective) 27th pay also passed by a vote of 10 "yes" and 1 "not voting".
DSEA will continue to advocate for restoration of the National Board Certification stipend, the Skills and Knowledge stipend, and for funding of Paraprofessional Phase II pay plan as the process moves along.
____________________________________________________________________________________
A special note on SJR4:
The Senate Resolution to study the consolidation of school districts was given a committee hearing last week, but not before Senator Mike Katz reached out to DSEA. The Senator wanted to make it clear that his intention was to bring educators to the table for discussion through the representation of their union. To that end, Senator Katz amended his bill to specifically include representatives from DSEA.
After much discussion, this proposal passed unanimously with all 11 JFC members voting for it.
The fact that educator Step Increase was by no means a "given" this year, suggests that we have education and advocacy to do around this issue. Step "increases" are simply movement on a very delayed pay plan. By the time you have been around 15 years, you might be making what someone in the private sector started their career with. Educators should thank Representative Dennis P Williams and Senator Harris McDowell for making Step a part of their pay policy proposal.
The famous or infamous (depending on your perspective) 27th pay also passed by a vote of 10 "yes" and 1 "not voting".
DSEA will continue to advocate for restoration of the National Board Certification stipend, the Skills and Knowledge stipend, and for funding of Paraprofessional Phase II pay plan as the process moves along.
____________________________________________________________________________________
A special note on SJR4:
The Senate Resolution to study the consolidation of school districts was given a committee hearing last week, but not before Senator Mike Katz reached out to DSEA. The Senator wanted to make it clear that his intention was to bring educators to the table for discussion through the representation of their union. To that end, Senator Katz amended his bill to specifically include representatives from DSEA.
Monday, May 9, 2011
Good Economics
It's amazing, but true, Delaware has a little money due to better than expected revenue. The State is better off by more than $320 million. I say, "amazing" because too many Delawareans are still unemployed and under-employed. The purpose of this post is not to go into why revenue numbers have improved while the lives of many of our citizens have not. The purpose of this post is propose reinvesting a small piece of that money back into Delaware.
Public employees, including educators are still not made whole from cuts made the previous three budgets. I'll speak to educator issues and let other union activists speak for their people.
First, educators need their step increase. This is the less than 1% incremental increase for each year of the first fifteen years of service. All educators need this step increase. The proposed budget only recommends the step for teachers and para-professionals, leaving out all other school employees. We are one community, with one mission to educate children, and we should not do anything to sow division.
Second, educators who wish to increase their skill level by attaining a National Board Certification, or by educating themselves in skills and knowledge clusters should be rewarded for their efforts. The State has in place a moratorium on the stipend connected to those two worthwhile endeavors.
Finally, the Legislature made a commitment a few years ago to bring para-professionals up to the federal poverty level for a family of four. Para-professionals do the real hands-on work with some of our most physically and developmentally challenged kids. Yet these important people in our schools make shamefully low wages. A step one para-professional earns $17,500 per year.
The plan was for para-professionals to be paid increasing amounts up to the poverty level in three phases. So far, the State has only managed Phase I before the tough budget times caused us to go no farther. Implementing Phase II would be another step to keeping our original promise. By delaying this pay plan, we have actually lost ground as the federal poverty level has risen, but the pay of our para-professionals has remained the same.
Phase II of the para-professional pay plan would cost the state about $3.3 million. It would put an additional $2,500 a year into the hands of desperately struggling workers. This is real economic stimulus to the Delaware economy.
If I give a tax break to a corporation or to a wealthy individual, do I create jobs? No, probably not. For example, a corporation is not going to take their tax break money and hire someone unless there is a demand for a product that they can sell and return investment. If such a situation (the potential to make money by hiring additional labor)exists, they will hire with or without the tax break. There is no empirical data that shows tax breaks to the wealthy or corporations create jobs.
On the other hand studies have shown that money in the hands of the working poor ends up being quickly used at the local level for necessities, thus stimulating the economy. If you give our para-professionals a few extra dollars that money is spent at the grocery store, paid to the landlord, or used to purchase clothing at the local K-Mart.
We have a little bit of money to work with for the first time in three years. Let's use it to do some good for common working people. This in turn will do good for local businesses. Before you know it we will have a recovery quickly springing up from the grassroots, not slowly trickling down as waste water from the top.
Public employees, including educators are still not made whole from cuts made the previous three budgets. I'll speak to educator issues and let other union activists speak for their people.
First, educators need their step increase. This is the less than 1% incremental increase for each year of the first fifteen years of service. All educators need this step increase. The proposed budget only recommends the step for teachers and para-professionals, leaving out all other school employees. We are one community, with one mission to educate children, and we should not do anything to sow division.
Second, educators who wish to increase their skill level by attaining a National Board Certification, or by educating themselves in skills and knowledge clusters should be rewarded for their efforts. The State has in place a moratorium on the stipend connected to those two worthwhile endeavors.
Finally, the Legislature made a commitment a few years ago to bring para-professionals up to the federal poverty level for a family of four. Para-professionals do the real hands-on work with some of our most physically and developmentally challenged kids. Yet these important people in our schools make shamefully low wages. A step one para-professional earns $17,500 per year.
The plan was for para-professionals to be paid increasing amounts up to the poverty level in three phases. So far, the State has only managed Phase I before the tough budget times caused us to go no farther. Implementing Phase II would be another step to keeping our original promise. By delaying this pay plan, we have actually lost ground as the federal poverty level has risen, but the pay of our para-professionals has remained the same.
Phase II of the para-professional pay plan would cost the state about $3.3 million. It would put an additional $2,500 a year into the hands of desperately struggling workers. This is real economic stimulus to the Delaware economy.
If I give a tax break to a corporation or to a wealthy individual, do I create jobs? No, probably not. For example, a corporation is not going to take their tax break money and hire someone unless there is a demand for a product that they can sell and return investment. If such a situation (the potential to make money by hiring additional labor)exists, they will hire with or without the tax break. There is no empirical data that shows tax breaks to the wealthy or corporations create jobs.
On the other hand studies have shown that money in the hands of the working poor ends up being quickly used at the local level for necessities, thus stimulating the economy. If you give our para-professionals a few extra dollars that money is spent at the grocery store, paid to the landlord, or used to purchase clothing at the local K-Mart.
We have a little bit of money to work with for the first time in three years. Let's use it to do some good for common working people. This in turn will do good for local businesses. Before you know it we will have a recovery quickly springing up from the grassroots, not slowly trickling down as waste water from the top.
Tuesday, April 19, 2011
Issues Blooming Like Spring Flowers
Yes, readers I dropped off the face of the earth again, but now I'm back. Here are a few of the things that kept me off the blogsphere:
First, discussions on educator and public employee benefits ended successfully with legislation, House Bill 81, incorporating the agreed upon changes. House Bill 81 passed the House with only 3 "no" votes out of 41 and passed the Senate with 20 "yes" votes and one absent. It will soon be signed into law by Governor Markell.
Senate Bill 34, the bill to give public employee unions representation on the State Employment Benefits Committee came out of committee in the Senate and will probably be on the floor of the Senate in early May.
SB 5 was filed which proposes the consolidation of the vocational technical school districts in Delaware. Currently all three counties have their own vo-tech district. The New Castle County vo-tech system has four schools, Kent and Sussex Counties both have one each, for a total of six schools. Proponents of the bill say that we should be able to administer six schools with less than three superintendents and three school boards. Opponents of the bill point out issues such as the individual missions and identities of the districts and the fact that the fiscal note shows a savings of only $65,000 after consolidation.
DSEA has expressed concerns regarding salary discrepancies between the three districts which would need to be "leveled up" to the highest salaries. Also, the bargaining rights of educators will have to be protected because the original certified bargaining units will no longer exist in a consolidation scenario. Finally, we raised the issue of evaluating the educational impact of consolidation particularly in the context of education reform.
Senate Joint Resolution 4 was filed by Senator Katz. This resolution forms a task force to look at consolidation of all 19 school districts, and then specifically excludes educators from being a part of the task force! This was filed the last day of session before the Spring Break. We will obviously be voicing opposition to this legislation when the lawmakers return.
It's school board election time! School board elections are Tuesday, May 10th. So, that means mailings, and phone banking, and all sorts of activity to get the best people elected to govern our schools.
These are a few of the things keeping me from blogging much.
First, discussions on educator and public employee benefits ended successfully with legislation, House Bill 81, incorporating the agreed upon changes. House Bill 81 passed the House with only 3 "no" votes out of 41 and passed the Senate with 20 "yes" votes and one absent. It will soon be signed into law by Governor Markell.
Senate Bill 34, the bill to give public employee unions representation on the State Employment Benefits Committee came out of committee in the Senate and will probably be on the floor of the Senate in early May.
SB 5 was filed which proposes the consolidation of the vocational technical school districts in Delaware. Currently all three counties have their own vo-tech district. The New Castle County vo-tech system has four schools, Kent and Sussex Counties both have one each, for a total of six schools. Proponents of the bill say that we should be able to administer six schools with less than three superintendents and three school boards. Opponents of the bill point out issues such as the individual missions and identities of the districts and the fact that the fiscal note shows a savings of only $65,000 after consolidation.
DSEA has expressed concerns regarding salary discrepancies between the three districts which would need to be "leveled up" to the highest salaries. Also, the bargaining rights of educators will have to be protected because the original certified bargaining units will no longer exist in a consolidation scenario. Finally, we raised the issue of evaluating the educational impact of consolidation particularly in the context of education reform.
Senate Joint Resolution 4 was filed by Senator Katz. This resolution forms a task force to look at consolidation of all 19 school districts, and then specifically excludes educators from being a part of the task force! This was filed the last day of session before the Spring Break. We will obviously be voicing opposition to this legislation when the lawmakers return.
It's school board election time! School board elections are Tuesday, May 10th. So, that means mailings, and phone banking, and all sorts of activity to get the best people elected to govern our schools.
These are a few of the things keeping me from blogging much.
Wednesday, April 6, 2011
Only in Delaware
Governor Jack Markell spoke today at the Delaware Chamber of Commerce luncheon. The event reminded me (as a transplant to Delaware)that the "Delaware way", truly is unique.
First, in other states it would not be likely that I as a Labor activist would attend a Chamber event. However, in Delaware, I and other Labor people were present at the event. Why? Because in Delaware, the Chamber is not obsessed with the destruction of Labor.
Second, the keynote speaker, Governor Markell, a pro-business, smaller government Democrat, gave a speech that was pro-union and pro-public employee. Governor Markell said that some other Governors speak of their public employees in a way that "makes me sick". He went on to explain that as businessmen they would not speak ill of their employees because they know that therein lay the value of their businesses. In the same way, Governors should not speak ill of their employees who teach kids, or do any number of other difficult jobs. The Governor went on to give praise to the state employee unions who just finished a challenging process of finding cost savings in their benefit plans. He singled out Jeff Taschner of DSEA for good work on the project. Additionally, Markell returned to one of his common themes, the need for good, forward-looking schools to make Delaware economically competitive.
In conclusion, and with my "only in Delaware" mindset firmly in place...Only in Delaware could an old Labor radical like me, go to a Chamber event, listen to a fiscally Conservative Democratic Governor, and go away truly believing that we have turned a corner with this same Governor and that we will be able to walk down the road with him to better times.
First, in other states it would not be likely that I as a Labor activist would attend a Chamber event. However, in Delaware, I and other Labor people were present at the event. Why? Because in Delaware, the Chamber is not obsessed with the destruction of Labor.
Second, the keynote speaker, Governor Markell, a pro-business, smaller government Democrat, gave a speech that was pro-union and pro-public employee. Governor Markell said that some other Governors speak of their public employees in a way that "makes me sick". He went on to explain that as businessmen they would not speak ill of their employees because they know that therein lay the value of their businesses. In the same way, Governors should not speak ill of their employees who teach kids, or do any number of other difficult jobs. The Governor went on to give praise to the state employee unions who just finished a challenging process of finding cost savings in their benefit plans. He singled out Jeff Taschner of DSEA for good work on the project. Additionally, Markell returned to one of his common themes, the need for good, forward-looking schools to make Delaware economically competitive.
In conclusion, and with my "only in Delaware" mindset firmly in place...Only in Delaware could an old Labor radical like me, go to a Chamber event, listen to a fiscally Conservative Democratic Governor, and go away truly believing that we have turned a corner with this same Governor and that we will be able to walk down the road with him to better times.
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