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Prepared by Michael R. Stone, Executive Director
Reviewed by Jim Edwards, Legislative Liaison

THE FINAL TWO DAYS of the 2007 “short” Kentucky General Assembly session will take place Monday-Tuesday, March 26-27. Few substantive measures have passed this session. What seemed in mid-February like a session heading toward some significant legislation stalled over the issue of state employee and teacher retirement systems. The last two days are set aside for consideration of governor vetoes, but Gov. Ernie Fletcher has not vetoed any of the few items on his desk. The legislature can use the days for other work, and Gov. Fletcher has suggested he may call a special session to address the future of the retirement systems if nothing is done in the last two days of the session.

A frequent subject of hearings, and always mentioned in budget discussions, is the future funding liability for state employee and teacher retirement payments. Simply, there are more pending obligations than currently can be supported by existing or anticipated revenues without changing the amounts of contributions or distributions. In the last few days of the session, the Senate passed a plan, which Senate leaders said was based on research and actuarial reports prepared through the Legislative Research Commission, to issue $800 million in bonds to support the current system and eventual payouts for current staff, and amend future contribution and payout schedules, which only would impact future employees and teachers.

The Senate leaders indicated they would not act on any more legislation until the House passed their plan or at least met to develop a compromise. House leaders say they need more time to study the impact of the Senate’s proposal. The result is the legislative process essentially stopped. Some broadly and bipartisan supported items have not passed, and they may not. Legislation affecting Career and Technical Education (CTE) is awaiting passage, and it may not pass, either, given the legislative stalemate.

Ø Projects, many to support Kentucky Community and Technical College System and state public university building expansions, which were vetoed by Gov. Fletcher in the 2006-2008 biennial budget, are awaiting Senate approval after being overwhelmingly approved in the House.

Ø SJR125, which would direct the Education Cabinet secretary and Department of Education commissioner to appoint a work group to develop a multiphase plan to utilize CTE programs and facilities to understand the relevance of literacy, mathematics, technology and science knowledge and skills so students may improve academic performance and skill mastery needed for continuing education and career preparation, is awaiting final passage in the House after passing the Senate 35-0.

Ø HB326 would lead to increased pay for staff at area technology centers. It is sitting in the Senate Appropriations and Revenue Committee after passing the House 98-0.

Ø HB461, which would make changes to the teachers’ retirement system, was recommitted to the Senate Appropriations and Revenue Committee before it could be brought for final vote. It passed the House 99-0.

More details on each of these bills may be found at the Legislative Research Commission website, www.lrc.ky.gov.

MEANWHILE, THE RELEVANCE for CTE programs continues to grow in Kentucky and elsewhere (see Federal Issues below). The state P-16 Council met on March 21, and one discussion item was the recently released study: Are They Really Ready to Work? Employers’ Perspectives on the Basic Knowledge and Applied Skills of New Entrants to the U.S. Workforce. The study clearly argued high school and college graduates are ill-prepared for current workforce openings. Further, the study reinforced the value of CTE-related programs. Among items included in the study:

Ø Issues of timeliness, dress, career growth, courtesy, teamwork, commitment, responsibility, and integrity should be addressed.

Ø Critical thinking, problem solving, communication and making appropriate choices concerning health and wellness should be stressed by teachers and others.

Ø Business and education need to better understand each other’s environment, and programs should be established more broadly for internships, summer jobs, work-study, job shadowing, mentoring and on-the-job training.

Ø Instruction should be more meaningful to the student, and leadership skills should be stressed.

Ø More jobs are being filled by post-secondary educated workers than high school graduates.

The study recommends assessing current curricula in response to the identified deficiencies and future needs, and researching promising models that incorporate hands-on and practical experience for students.

THE KEY ISSUE for CTE at the Federal level is to secure adequate funding in the Fiscal Year 2008 budget process now underway. In early March, KACTE members participated in the ACTE National Policy Seminar in Washington and visited with members of Congress or their staff in support of CTE programs. Following is part of Executive Director Stone’s trip report:

“THE URGENCY of the ACTE National Policy Seminar (NPS) and the traditional congressional office visits accompanying the meeting was not as intense in 2007. Instead, with Democratic majorities in both houses of Congress, the 2006 passage of long-awaited Perkins Act reauthorization, and Career and Technical Education (CTE) program federal appropriations maintaining the previous year level, the feeling was more hopeful and forward looking. This sense was bolstered by NPS speakers and recent research and publications citing CTE’s increased visibility and effectiveness in the educational community. This included encouraging words from Assistant Secretary of Education for Adult and Vocational Education Troy Justesen at the NPS opening session.”

(ADDED NOTE: Justesen said: “I believe that what you do is absolutely critical; I believe what you do is the secret that needs to get out a little more.” He stressed the need for data to support CTE success, such as the brochure developed by the Division of Career and Technical Education and Office of Career and Technical Education showing the improved accountability testing and skill standard attainment by Kentucky CTE concentrators. On a panel at NPS, CTE was cited as an integral partner in addressing the skill gap and maintaining global competitiveness. Panelists indicated CTE gives students a reason to stay in the classroom and obtain skills necessary for the workplace. David Byer, Apple Computers, called for education to be made relevant through applied learning. Former West Virginia Gov. Bob Wise lauded the concept of individual graduation plans.)

“THE CONTRAST to the positive message is contained in two legislative proposals. First is the Fiscal Year 2008 administration budget proposal, which would cut CTE-Perkins Act funding by 50 percent. Second, the initial No Child Left Behind (NCLB) reauthorization proposal from the federal Department of Education would permit CTE-Perkins Act appropriations to be used for virtually any educational program at the state and local level. KACTE’s messages to its federal legislators were threefold:

“ACTE PREPARED board-adopted recommendations on NCLB reauthorization, improvements to postsecondary education (for reauthorization of the Higher Education Act), and reauthorization of the Workforce Investment Act, which were given to federal legislative staff. These positions, which stress the importance, achievement, rigor and relevance of CTE, and the continuing need to integrate academics into CTE programs and enhance student guidance, are available for review and downloading from the public policy section of the ACTE website: http://www.acteonline.org/policy/index.cfm.

Ø Sarah Raikes, Washington County High School (ACTE Region 2 Policy Committee representative)

Ø Michael McMillen, Bluegrass Community and Technical College (ACTE Nominating Committee)

Ø Jay Jackman, Lexington (NAAE executive director, who was joined by the NAAE Associate Executive Director Alissa F. Smith and other NAAE staff)

Prepared by Michael R. Stone, Executive Director
Reviewed by Jim Edwards, Legislative Liaison

The Kentucky General Assembly is progressing through its odd-year session, which is limited to 30 working days. As this is written, there are nine days left in the session, and two of those (March 26-27) are reserved for veto override (although sometimes they are used for regular legislative business). Little legislation has passed, and observers do not expect many items to make it through the session to the governor’s desk. Among the reasons given for an expected lack of legislative action:

Ø The pending May gubernatorial primary. Neither party wants to give the other a campaign issue.

Ø The 2006-2008 biennial budget was passed last session. Legislative leaders do not want to open up the budget for amendment, and many of the proposed bills would cause budget adjustment.

Ø The sheer volume of proposed legislation introduced. Almost as many bills have been introduced in this 30-day session as typically are introduced in the even-year, 60-day session.

As usual, education and education-related legislation comprise much of the legislative focus. Legislative proposals affecting Career and Technical Education (CTE) are prominent. Some of the legislation demonstrates that at least some members of the Kentucky General Assembly, if not the whole body, understand the value of an effective, quality CTE system for workforce preparation, economic development and dropout prevention.

SJR125, introduced by Sens. Jack Westwood, Dan Kelly and Ken Winters, is an example of legislative focus on the potential of CTE programs. It could spur increased application of CTE programs by directing the Education Cabinet Secretary and the Commissioner of Education to appoint a work group to develop a multiphase plan to utilize CTE programs and facilities to understand the relevance of literacy, mathematics, technology and science knowledge and skills so students may improve academic performance and skill mastery needed for continuing education and career preparation. The plan would be delivered to the Joint Interim Committee on Education by Dec. 1, 2007. This bill was introduced Feb. 15 and assigned to the Senate Education Committee. It was scheduled for hearing before the Senate Education Committee on March 1.

SJR125 particularly cites CTE’s importance in dropout prevention noting in “whereas” clauses: “the number of dropout may be diminished if students comprehend the relevance of school subjects in general and specifically the relevance of literacy, mathematics, technology, and science to their futures; many students say they are bored and unchallenged in traditional school settings that utilize abstract and theoretical instruction methodologies; and many students find school unconnected to daily life and lacking relevance to their futures.” Another clause suggests “students can overcome their academic deficiencies when engaged in meaningful activities through intentional interventions and hands-on opportunities.”

SJR125 directs the plan to include summer career camps with applied learning opportunities for middle school students; intensive academic interventions delivered through ninth grade academies or other designs; increased career counseling, mentoring and support systems; increased opportunities for students across the state to participate in high-quality CTE studies relevant to today’s workplaces; recommendations for upgrading the quality and statewide access to rigorous, technologically current CTE programs; and an implementation timeline and cost projections.

HB326, introduced by Reps. Harry Moberly, Frank Rasche and Jody Richards among 18 total sponsors comprising the House Democratic leadership, would amend the budget by giving Office of Career and Technical Education (OCTE) certified and equivalent employees with the option to select a salary adjustment based on Part IV, State Salary/Compensation and Employment Policy, or a salary adjustment of 2 percent for fiscal year 2006-2007 and a $3,000 salary increase for 2007-2008. This addresses a question of salary equalization between OCTE Area Technology Center teachers and administrators with local school district personnel. The bill passed the House 98-0 on Feb. 16 and now is before the Senate Appropriations and Revenue Committee.

HR152, introduced by Rep. Robin Webb, urges OCTE to pay all certified or equivalent employees an annual increment required by 151B.035. It was introduced Feb. 16 and sent to the House floor without a committee assignment.

SB46, introduced by Sen. Jerry Rhoads, would permit high school students to use part of their earned KEES scholarship to pay for dual enrollment costs of postsecondary institutions. It was scheduled for its final reading and possible passage by the Senate on Feb. 27.

Two bills, HB461, introduced by Reps. Frank Rasche and Ted Edmonds, and HB220, introduced by Rep. Rick Nelson, address state and teacher retirement issues. HB461 would make changes in retirement program participation. HB220 would expand the definition of “penalization” under 151B.010.

Two well-publicized bills have passed the Senate by large majorities and now are awaiting action by the House Appropriations and Revenue Committee. SB1, introduced by Sens. Winters, Gerald Neal and Dick Roeding, would encourage enhanced Advanced Placement courses in calculus, physics and chemistry, including increased rewards for both teachers and students. It passed the Senate 28-7. SB2, introduced by Sens. Kelly, Neal and Roeding, would increase teacher pay for calculus, physics and chemistry in demographically poor districts. It passed the Senate 26-7.

CTE was at the forefront in the State Capitol on Student Organization Leadership Day on Tuesday, Feb. 13, 2007. In spite of weather challenges, almost 600 student organization members and advisers participated. Highlighting the day was testimony before the House Education Committee by 2007 ACTE national Teacher-of-the-Year Leslie Watkins, Reidland High School. She emphasized the rigor, relevance and relationships now at the forefront of CTE programs. Governor Ernie Fletcher signed a proclamation before officers of the seven secondary Career and Technical Education Student Organizations declaring February Career and Technical and Entrepreneurship Education Month.

Student Organization officers met separately with Senate President David Williams; Sen. Alice Forgy Kerr, Economic Development Committee chair; Sen. Charlie Borders, Appropriations and Revenue Committee chair; Rep. Frank Rasche, Education Committee chair; Rep. Ruth Ann Palumbo, Economic Development Committee chair; and Rep. Fred Nesler, Appropriations and Revenue Committee vice-chair. SR43, introduced by Sen. Bob Leeper, honored Watkins for being named 2007 national teacher-of-the-year. SR100, introduced by Rep. Vernie McGaha, and HR129, introduced by Rep. Rob Wilkey, recognized CTE Month and Student Organization Leadership Day. Earlier, Sen. McGaha and Rep. Derrick Graham spoke to students at the Sixth Annual SOLD civics program.

All Kentucky legislators were provided with KACTE’s recently adopted 2007 Legislative Agenda, “Leading the Transformation.” The document may be found at: http://www.kacteonline.org/summer_program.htm.

The Perkins State Plan Advisory Committee is continuing meetings to develop the transition plan for Kentucky under the new Perkins Act. The plan must be submitted to the federal Department of Education in April.

Implementation of the new Perkins Act will be the subject of several programs at the 2007 Annual Statewide Career and Technical Education Summer Program to be held at the Galt House Hotel, Louisville, July 22-25. Kim Green, executive director, National Association of State Directors of Career and Technical Education Consortium, will be a featured presenter. Kentucky agency officials will address implementation among program areas.

The newly formed Kentucky STEM (science, technology, engineering and mathematics) Task Force held its first meeting last December. The goal is to strengthen educational programs in these areas and increase the number of postsecondary graduates in STEM-related fields. Rodney Kelly, director, KDE Division of Career and Technical Education, and Dr. Keith Bird, chancellor, Kentucky Community and Technical College System, are among the 100 members on the statewide STEM Task Force, which is organized under the Council on Postsecondary Education. Also participating are Education Cabinet Secretary Laura Owens and Barbara Veazey from West Kentucky Community and Technical College.

KACTE officials are preparing to attend the ACTE National Policy Seminar in Washington March 5-7. Visits will be made to all Kentucky congressional offices, primarily carrying these messages:

Ø Thank you for past support of CTE through almost unanimous passage of Perkins Act reauthorization in the last Congress and by passing level appropriations in the Fiscal Year 2007 continuing resolution, which was signed into law by President Bush on Feb. 15.

Ø Maintain Perkins Act funding in Fiscal Year 2008. The administration’s budget proposal asked for a 50 percent cut in Perkins funding. Kentucky would lose more than $9 million under the proposal.

Ø Offer suggestions for recognizing CTE’s importance in the reauthorization of the No Child Left Behind legislation. The Department of Education proposal for NCLB reauthorization would permit Perkins funds to be co-mingled with all state and local federally appropriated education funds to support any program.

Prepared by Michael R. Stone, Executive Director
Reviewed by Jim Edwards, Legislative Liaison

With 2007 approaching, this Issues Update will recap federal legislative and policy developments, report a national panel’s projection of the future of Career and Technical Education, and present some long-term Kentucky considerations.. This Issues Update is divided into four sections:

The top federal issue for Career and Technical Education (CTE) in 2006 was reauthorization of the Carl D. Perkins Career and Technical Education Improvement Act of 2006. It passed the House of Representative 399-1, and the Senate approved the bill by unanimous consent. It was signed into law by President Bush.

The new Perkins Act demands local educators be more knowledgeable of the legislation and regulations to fulfill new requirements, according to a handout on state and local coordination produced by ACTE (Association for Career and Technical Education): “With the introduction of new local accountability requirements and ‘programs of study,’ coordination between states and local Perkins funding recipients will be more important than ever under the new Perkins law. In addition to the traditional State role of allocating funding and approving local plans, States and local recipients must now work together to develop a local accountability system that works for the diverse stakeholders involved, and to develop and implement programs of study.”

Another source in information on the impact of the new Perkins legislation is the National Center on Career and Technical Education, www.nccte.org. A NCCTE webcast recommended for viewing is Career Pathways: The New Career and Technical Education. It can be found at http://www.nccte.org/webcasts/description.aspx?cl=1&wc=217.

IN KENTUCKY, a State Plan Advisory Committee is meeting to develop Kentucky’s transition plan to the new Perkins Act requirements. The Committee has met twice, and two more meetings are scheduled for January and February. A fifth meeting may be held in March, if necessary, before the transition plan is submitted to the U.S. Department of Education in April. Among others, KACTE Guidance Service Area Vice President Johnetta Grant, Eastside Technical Center, Fayette County, is participating on the Advisory Committee.

FUNDING for Perkins Act programs – basic state grants, national programs and Tech Prep – likely will remain at $1.3 billion in 2007, the same appropriation as the current year. Congress has not passed an appropriations bill for 2007, but both the House and Senate bills contain the exact same appropriation levels, which are identical to 2006. Incoming Appropriations Committee Chairs Sen. Robert Bird (D-WV) and Rep. David Obey (D-WI) indicated the week of Dec. 11 their intention is to pass a year-long continuing resolution when the 110^th Congress convenes in January. They then will begin the Fiscal Year 2008 budget and appropriation process.

Two presentations at the ACTE Convention were relevant to discussions on the future of Career and Technical Education. Assistant Secretary of Education for Adult and Vocational Education Troy Justesen, who said he was a product of CTE and from a family of coal miners, praised CTE programs and said the “the challenge to us is to transfer what we know to the rest of education.” He reported more than 97 percent of all high school students take at least one CTE course, and 25 percent take two or more CTE courses.

“CTE students are among the best students and typically do better than students who don’t take CTE courses,” he said. The OVAE will be working to improve the relationship between high schools and community colleges to ensure a partnership leading to smooth transitions for students. Another initiative will build a strong partnership with business and industry.

A PANEL DISCUSSION moderated by John Bailey, Gates Foundation, featured Gene Bottoms, senior vice president, Southern Regional Education Board; John Ferrandino, president, National Academy Foundation; and Richard Blais, vice president, Project Lead the Way. Bailey noted the Gates Foundation’s priority to improve quality education and reduce dropouts by emphasizing the new three-Rs – rigor, relevance and relationships. In response to questions, the panelists believe CTE programs are integral in the transformation of the American high school, but more work is needed.

Ferrandino replied CTE is on the cutting edge of change in many places, but in many places it still is hampered by “1950s definitions of vocational education but using the CTE name.” Bottoms added CTE is changing the most where there is linkage between high-quality CTE and rigorous academic studies. He stressed that the best results have been seen when CTE professionals make themselves a part of the discussions on high school reform. He cited programs in Virginia, Kentucky and New York as examples, noting in particular Kentucky’s skill-standards exams.

Blais said programs like Project Lead The Way integrate academics and experiential learning in a fully developed curriculum. He said such applications will lead to development of skills that will sustain America competitively. Moreover, they answer the questions: “Why do I need to know this? Where will I ever use it?” He pointed out the answer to those questions is the very essence of rigor and relevance.

Ferrandino said American secondary education is in crisis. It is boring kids to death. He argued for a complete change in pedagogy, not just curriculum. It requires a change in focus from teaching the subject to teaching the student. It involves the academic and CTE teacher both working with students at the same time. Blais added the future of education is not what it used to be. He argued the term should be high school transformation, not high school reform. He said CTE is better positioned to drive the transformation. Academics are in silos. He asked where else but CTE are there programs to engage students all at the same time?

Bottoms concluded if academic teachers provide contextual learning, there is a “big bump” in achievement.

Kentucky still will have two members serving on the U.S. House of Representatives Appropriations Committee, although with diminished power. Following its victories in the 2006 congressional elections, Democrats will lead the committees as the majority party. Rep. Harold Rogers (R-Fifth District) will remain on the committee but no longer hold a subcommittee chair. Rep. Anne Northup (R-Third District) lost to Democratic Representative-Elect John Yarmuth; however, Rep. Ben Chandler (D-Sixth District) was named to the Appropriations Committee. Yarmuth was appointed to the Education and the Workforce Committee, which is the authorizing committee for the Perkins Act and other educational programs. In the U.S. Senate, Mitch McConnell was elected Republican Minority Leader, and he retains his seat on the Appropriation Committee.

SPEAKING at the ACTE Convention in Atlanta Nov. 29-Dec. 1, ACTE Executive Director Jan Bray urged CTE professionals to continue advocacy efforts to meet ACTE’s core purpose, “to provide leadership in developing an educated, prepared, adaptable and competitive workforce.” She noted the current debate on reforming – or transforming – America’s high schools, reauthorization of the No Child Left Behind Act (NCLB), and CTE’s role in engaging students. ACTE has developed detailed recommendations on high school reform and an issue brief on CTE’s role in strengthening economic competitiveness. It is developing recommendations on postsecondary education reform and reauthorizing NCLB.

Ø Integrate Academic and Technical Education to Better Engage and Prepare Students for the Workplace and the “Real World.”

Ø Provide Students Clear Paths to Postsecondary and Workforce Goals through Continuous Career Guidance Support.

Ø Seriously Address the Dropout Issue through Better Use of Data, and Provide Opportunities for Students to Re-Enter the Education System.

Ø Ensure that Highly Effective Teachers and Leaders Are Available in All Schools and Across the Curriculum.

Ø Eliminate Disincentives and Provide Incentives Related to Adequate Yearly Progress and Accountability.

KACTE, under the guidance of Legislative Liaison Jim Edwards, Office of Career and Technical Education, is developing an advocacy agenda for the 2007 Kentucky General Assembly Session. Included in the process of developing the advocacy agenda were a brainstorming session among the KACTE Board at its Nov. 10 meeting and consultation with CTE system administrators. This is not a budget session for the General Assembly, so most issues will focus on programmatic initiatives. KACTE’s advocacy efforts will focus on educating and informing legislators, administrative officials and the general public on the importance of Career and Technical Education both within the educational system and for improvement in the state’s economy. The advocacy agenda will be published and distributed by the Jan. 2, 2007, convening of the General Assembly.

It is clear effective CTE programs are critical for economic prosperity Sarah Horton pointed out at the ACTE Region 2 Leadership Conference in Mobile, AL, in October. Horton, career readiness certification coordinator, Alabama Department of Postsecondary Education, Office of Workforce Development, noted a study from Louisiana State University listing the top reasons for business relocation: workforce productivity, workforce availability, and workforce cost. CTE programs are the primary shapers of the nation’s workforce. In 1950, about 20 percent of all jobs were filled by individuals with a baccalaureate degree or higher, about 20 percent were filled by skilled workers, and about 60 percent were filled by unskilled workers. In 2000, the number of jobs filled by individuals with a baccalaureate degree or higher remained about 20 percent. However, the number of jobs filled by skilled workers jumped to 65 percent, while the number filled by unskilled workers dropped to 15 percent. She concluded, “Money goes where the smart people are.”

The importance of education for Kentucky’s future was a common thread woven through presentations at the 13^th Annual Conference of the Kentucky Long-Term Policy Research Center. Measures and Milestones 2006, Trends Affecting Kentucky’s Future was held in Lexington on Nov. 14. In a panel presentation on the state’s economic future, Kris Kimel, founder and president, Kentucky Science and Technology Corporation, said economic growth is tied to and hinges on educational attainment. On the same panel, Kenneth R. Troske, Ph.D., director, Center for Business and Economic Research, and William B. Sturgill Professor of Economics at the University of Kentucky, added Kentucky has been stagnant because of a lack of knowledge workers and innovation. It must train new workers and attract innovative businesses.

Attracting innovative businesses requires a quality educational system, he suggested. “People don’t move families without schools to send their kids (K-12). It will take a fundamentally different way of thinking to move Kentucky forward,” he said. “Unless we change the way people feel about education in Kentucky, we’ll remain 44^th. . . Don’t focus on the ‘hot thing,’ but on putting the process and infrastructure in place.”

AN EDUCATION PANEL featured Jim Applegate, Ph.D., vice-president for academic affairs, Kentucky Council on Postsecondary Education, and Robert F. Sexton, Ph.D., executive director, the Prichard Committee for Academic Excellence.

Applegate stressed the need to double the number of baccalaureate degree holders in the Commonwealth by 2020. He added associate degrees are important, too, and Kentucky is doing well in that area. However, a higher percentage of baccalaureate degree holders correlates with a higher per capita income. To reach the top 20 percent in attainment will require the 402,000 degree holders to climb to 791,000 in 2020. The benefits of such attainment will be enormous, he reported:

He said Kentucky’s statutory and policy framework allows for improvement, and higher education must be at the forefront of innovation. Kentucky currently ranks 47^th among the states in percentage of the population with baccalaureate degrees and 43^rd in per capita income. He cited six challenges to be addressed to move the state toward the goal.

1. Create a seamless P-16 system (currently almost half of high school graduates require collegiate remediation),

4. Raise the bar on quality (next year CPE will start assessing the quality of postsecondary education),

SEXTON complimented the 2006 General Assembly session for its new interest and commitment to K-12 education. He said the question now is how to keep the momentum going? Central will be maintaining a focus on foundational elements: funding, improving leadership, improving accountability, and increasing the involvement of the business community and parents. He said the Pritchard Committee will be advocating five issues.

Ø Teacher Quality – Every student needs a highly qualified teacher. He said part of the solution is reforming the pay system. He advocated a differentiated system rewarding better pay for performance.

Ø High School Graduation – Get Kentucky’s high school graduation rate into the top one-third of the nation. It now is 69 percent. The 20^th best in the nation is 75 percent. He called for more rigor in coursework, end of course assessments, and KEES scholarships based on rigorous assessment.

Ø Improve Math, Science and Technology – He noted surveys indicate a large number of parents don’t see this as important.

Ø Achievement Gap – He said the gap between disadvantaged students and the rest of the student population is “intolerably high,” yet the evidence from the last testing cycle is the gap can be closed.

THE NEXT Issues Update will present the KACTE advocacy agenda and summarize the Kentucky Department of Education legislative agenda.

Prepared by Mike Stone, KACTE Executive Director
Reviewed by John Marks, KACTE Legislative Liaison

The Kentucky Senate unanimously passed on April 10 a 2006-2008 biennial budget authorizing almost $18 billion over the two-year period to operate Kentucky state government. The House of Representatives passed the budget bill (HB 380) April 11 on a 98-2 vote. Both Senate President David Williams and Speaker of the House Jody Richards said they believe Gov. Ernie Fletcher will sign the budget into law. Neither anticipates significant line-item vetoes from the governor. With its meeting on April 12, the General Assembly completed its constitutionally mandated 60 session days.

Both Williams and Richards, as well as many legislators and observers, are calling this budget the most significant investment in education since the 1990 Kentucky Education Reform Act. Critics warn that the approximately $2.3 billion in debt resulting from the budget is excessive. The “rainy day fund” has been lowered to $35 million in 2006-2007 and $20 million in 2007-2008. They feel the state’s bond rating will be lowered and the debt burden will be overwhelming to future generations. The supporters cite the education projects as investments, which will pay future dividends.

Regardless, the budget provides additional educational funding in a number of areas. Beginning in 2007-2008, there will be 177 mandated instructional days, with $32.6 million added to cover the cost. ACT and WorkKeys testing were added to the 2007-2008 year at $1.4 billion. CATS testing will continue, with funding at more than $8 million each year.

Teacher salaries will increase by at least 2 percent in 2006-2007 and $3,000 in 2007-2008, in addition to normal rank and step increases. School classified personnel will receive a 2 percent increase in 2006-2007 and a 5 percent increase in 2007-2008, but not to exceed $2,500. Health care premiums are funded around $500 million, or more than 10 percent of the Department of Education’s $4.2 billion budget in 2006-2007 and $4.5 billion budget in 2007-2008. Contributions to the Kentucky Teachers’ Retirement System are more than $166 million in 2006-2007 and more than $193 million in 2007-2008.

Locally Operated Vocational Centers will receive a funding increase to equal the percentage increase for State Operated Vocational Schools (Area Technology Centers), totaling $10,945,400 in 2006-2007 and $11,175,400 in 2007-2008. Vocational transportation will receive almost $2.5 million each year. Funding is included for operations and debt service of local career and technical education programs at Bath, Jessamine, Johnson, Letcher County Central, and Rockcastle Counties.

Kentucky TECH programs operated at Area Technology Centers through the Education Cabinet’s Department for Workforce Investment, Office of Career and Technical Education, will operate on more than $65 million each year. New ATCs will open in Pulaski, Warren and Butler Counties. State operated technical programs will be funded at Hancock and Kenton County schools. A new carpentry program will begin at Mayfield-Graves ATC. Kentucky TECH will receive funds to provide instruction at juvenile justice facilities.

The Kentucky Community and Technical College System’s overall budget will increase to $631 million in 2006-2007 and $672 million in 2007-2008. It will receive $5.8 million in each year to provide educational programs at Department of Correction facilities. KCTCS funding includes bond authorization and other monies in 2006-2007 for the following capital improvements (unless otherwise noted, all are for new facilities):

Ø Gateway Community and Technical College (CTC) Advanced Manufacturing Technology Center, $28 million.

Ø Elizabethtown CTC, Central Regional Postsecondary Ed Center, Phase 2, $20 million.

Prepared by Michael R. Stone, KACTE Executive Director
Reviewed by John Marks, KACTE Legislative Liaison

On the big ticket items – teacher and classified personnel raises and health insurance – the Senate version of the 2006-2008 biennial budget for the Commonwealth adopts the House positions, which are reported in the March 15 Issues Update that follows this report. The Senate did remove more special programs and capital projects than it inserted into the budget (HB 380) in an effort to lower debt service and shift funding to projects favored by the Senate leadership.

Some Career and Technical Education programs – particularly additional funding for Locally Operated Career and Technical Education Centers (still labeled vocational schools in state budget language) – were cut from the House-passed levels. Procedurally, the House did not accept the Senate version of the budget, so the measure now goes to a Conference Committee consisting of the General Assembly leadership and members of the Appropriations and Revenue Committees from both chambers. The General Assembly is scheduled to meet on March 24 and 27, then recess while Gov. Ernie Fletcher considers vetoes; returning April 10 and 11 to conclude the 60-day session. In some years, budget negotiations continue through the veto period. Regardless, little time is left to resolve differences and achieve compromise.

KACTE members who wish to voice their opinion about the budget plan – whether supportive, in opposition, or selective about certain provision – need to contact their legislators immediately. Constituents may call 800-372-7181 to leave a message for their legislators urging particular action.

Overall, the Senate budget plan increased spending in Fiscal Year 2006-2007 by $8.9 million to $9.3 billion, and by $40 million in 2007-2008 to $9.56 billion. It slightly reduced the Executive Branch budget, which includes funding for the Kentucky Department of Education, the Education Cabinet Office of Career and Technical Education, and post-secondary education including the Kentucky Community and Technical College System. The Senate increased the $38 million balance the House proposed for the “rainy day” fund to $80 million. A complete analysis of the state budget proposals may be found at www.lrc.ky.gov/budget/06RS/E_analysis.htm#E_senate.

In accepting the House proposals for salary increases and health insurance provisions for state employees, public school teachers, and public school classified personnel, the Senate inserted language directing the Secretary of the Personnel Cabinet to determine whether estimated savings in some areas will be sufficient to support the expenditures. Recommendations, if any, are to be presented to the Governor and Legislative Research Commission, and adjustments may be accomplished by Executive Order.

IN THE DEPARTMENT OF EDUCATION, the Senate provides $4.2 billion in 2006-2007 and $4.5 billion in 2007-2008, both slight reductions from the House-passed levels. The House had increased the budget proposed by the Fletcher administration (see below for details). It added $16.5 million for a P-16 Educational IT Integration Initiative, but deleted $50 million for an Educational Technology Pool. The Senate added $8.6 million to SEEK funds to support two additional instructional days in 2007-2008.

Specifically to Career and Technical Education, the Senate removed the percentage increases the House added to the funding of Locally Operated Vocational Schools, leaving the support at $10,785,400 in each of the two years of the biennium. It deleted $1.5 million for a Rockcastle County Vocational and Technical Center, and it shifted a total of $135,400 for a Mayfield/Graves County carpentry grant program from the Department of Education budget to the Education Cabinet budget for Career and Technical Education.

EDUCATION CABINET funding for the Kentucky TECH system of Area Technology Centers was not adjusted significantly by the Senate.

POST-SECONDARY CAPITAL projects were added and deleted by the Senate. The overall postsecondary expenditures increased, with most funds going toward the University of Kentucky. KCTCS overall funding increased by a few thousand dollars to $625 million in 2006-2007 and $659 million in 2007-2008.

Capital projects deleted by the Senate from the House version shown below were the Hazard Family Life Skills Center, Kentucky Coal Academy, Bluegrass Winchester Campus, construction of the Ashland Tech Drive Campus, the Madisonville Energy and Advanced Technology Center, design of a new facility at Big Sandy, planning and design of the Maysville Rowan County Campus, and the Owensboro Technology Center. The Senate added $27 million for the Gateway Advanced Manufacturing Technology Center, $200,000 to existing construction funding of the Laurel Allied Health/Technical Education Building, $400,000 to the existing funding for replacement of the Maysville Administration Building, $600,000 to the existing funding of the Elizabethtown Regional Post-Secondary Education Center (Phase 2), $1.5 million for a Bluegrass Advanced Manufacturing Center, and $2.5 million to expand the Franklin Technology Center.

On March 16, the U.S. Senate voted 73-27 for an amendment to the Fiscal Year 2007 budget resolution (S.Con.Res. 83) sponsored by Senators Arlen Spector (R-PA) and Tom Harkin (D-IA) to increase the overall spending cap for education, employment and training, and social programs by $7 billion. The amendment’s effect is to restore the funding level for programs under these categories, which includes Perkins Act funding of Career and Technical Education, to Fiscal Year 2005 levels. The Senate’s 44 Democrats, 28 Republicans and one Independent voted for the amendment.

The budget resolution sets the targets for the congressional appropriations process. The Senate action creates the possibility for additional appropriations. The budget resolution must be agreed to by the House, but the final document does not require presidential approval as it only sets guidelines for appropriators. The House is scheduled to address its version of the budget resolution in April.

The importance of potential funding increases for Career and Technical Education can be seen in the March 22 edition of the Herman Trend Alert, an e-mail update from strategic business futurists and Certified Management Consultants Roger Herman and Joyce Gioia. Using U.S. Bureau of Labor Statistics data, they conclude the U.S. will face a skilled labor shortage of 10 million by 2010. They also note this is a global situation. Already, they wrote, employers are finding it increasingly difficult to hire and retain their needed workforce. Further, this lack of educated, trained employees capable of performing work will affect everyone.

Career and Technical Education programs are designed to produce skilled workers. The trend noted by Herman and Gioia argues for more investment in quality Career and Technical Education programs.

State Issues
          House Budget Proposal
          Minimum High School Graduation Requirements
          Area Technology Center Goals

Federal Issues
          KACTE Visits Congress
          Perkins Appropriations
          Perkins Reauthorization

Prepared by Michael R. Stone, KACTE Executive Director
Reviewed by John Marks, KACTE Legislative Liaison

The Kentucky House of Representatives passed 97-0 a 2006-2008 biennial budget bill (HB. 380) authorizing $17.7 billion to fund Kentucky state government including public education. Several items directly affect Career and Technical Education (CTE). The House plan now is under consideration by the Senate Appropriations and Revenue Committee. As in most years, there likely will be some changes made by the Senate requiring a conference between the House and Senate to finalize a compromise bill. Due to changes made by the House to the plan submitted by Gov. Ernie Fletcher based on state agency requests and budget management decisions, the governor indicated a veto or line-item vetoes may be possible.

The governor’s main objections to the House version are increasing the debt from $1.2 billion to $2 billion and lowering the state’s “rainy day fund” from $118 million to $38 million. The governor believes the state bond rating could be lowered and economic development harmed. He also cited displeasure with some of the specific budget proposals, although he did not object to increased spending on education and education-related projects. Senator Charlie Borders, Appropriations and Revenue Committee Chair, also expressed concern over the same issues, but added he felt if borrowed money was spent in the right areas in can be an investment.

Only two weeks of actual General Assembly meeting dates remain in the legislative session, and two of those are set aside to address veto action. Detail on the House budget can be found at www.lrc.ky.gov/budget/06RS/E_analysis.htm#E_house.

House Bill 380 provides slightly more than $4.2 billion in 2006-2007 and $4.53 billion in 2007-2008 for the Kentucky Department of Education. The current funding level is just over $4 billion. Public school teachers will receive a 2 percent increase in 2006-2007 and a 3 percent increase in 2007-2008, and in addition $72 million will be spent in three consecutive years to raise teacher salaries to the regional average of $46,000 by 2009-2010. Funding is provided for health insurance and teachers’ retirement contributions. In 2007-2008, classified school personnel will receive a 5 percent raise.

The funding for locally operated vocational centers, which included operating funds for the new Jessamine County and Johnson County centers, was increased by the House to $10,845,400 in 2006-2007 and to $11,075,400 in 2007-2008 “to match increases in operating funds provided to state operated vocational schools.” Additional funds were provided for the Rockcastle County Vocational and Technical Center, a carpentry grants program at Mayfield/Graves County Area Technology Center, and the Bath County Vocational and Technical School. Budget language specified area vocational education centers are fully eligible to participate in the Kentucky Educational Technology System, with funds distributed based on average daily attendance equated to other local school districts.

SEEK funds for Secondary Vocational Education to pay for on-going operational costs, were set at $351,200 in 2006-2007 and $858,400 in 2007-2008. Additional SEEK funding was set aside to support new Area Technology Centers in Warren, Pulaski and Butler Counties. Vocational transportation was earmarked for $2.4 million each year.

Funds for Area Technology Centers and included in the budget for the Office of Career and Technical Education in the Education Cabinet’s Department for Workforce Investment. The ATC funding is proposed at $23 million in 2006-2007 and $23.56 million in 2007-2008. Three new ATCs are funded for Warren, Pulaski and Butler Counties. The Cabinet will receive $1,663,300 and $1,249,100 in the respective fiscal years for instruction programs at juvenile justice facilities. Funds were set aside to support instruction at Hancock and Kenton County schools. Budget language permits transfer of state operated centers to local control, and carries forward funds to purchase welding, carpentry and automotive equipment for Warren, Pulaski and Butler County ATCs.

The House budget bill increases spending for post-secondary education by $50 million during the biennium compared to the administration proposal. 2006-2007 total would be $4.54 billion, rising to $4.8 billion in 2007-2008. Of that amount, Kentucky Community and Technical College System funding would increase from the current $598 million to $626 million in 2006-2007 and $659 million in 2007-2008. KCTCS capital improvements and programs included in the House budget bill include: Bluegrass Lancaster Campus, Hazard Family Life Skills Center, Kentucky Coal Academy, design for Gateway Advanced Manufacturing Technical Center, construction of Western Kentucky Emerging Technology Center, construction of Laurel Allied Health/Technical Education Building, construction of phase two Licking Valley Center, renovation of Madisonville Gray Building, renovation of Hazard Kentucky School of Craft, construction of Henderson Child Development Center, renovation of Western Kentucky Anderson Building, renovation of Harlan Simulated Mine, green space development at Big Sandy Mayo Campus, renovate Southeast Administration Building in Whitesburg, renovate Elizabethtown Administration Building, establish pedestrian-vehicular connector at Somerset, improvements at Bluegrass Winchester Campus, construct Jefferson Science/Allied Health Building, construct Ashland Technical Drive Campus, construct phase two Elizabethtown Central Region Post-Secondary Education Center, Madisonville Energy and Advanced Technology Center, design Jefferson Carroll County Campus, design new facility at Big Sandy, design plant for Maysville Rowan County Campus, Owensboro Advanced Technology Center.

Effective with the graduating class of 2012, Kentucky’s minimum high school graduation requirements will be four credits of language arts, one mathematics course each year of high school based on the student’s Individual Graduation Plan, three credits of social studies, three credits of science, one-half credit each of health and physical education, one credit of history and appreciation of visual and performing arts, seven electives from standards-based learning experiences in academic and career interest areas. Of the seven electives, four must be aligned with the Individual Graduation Plan. Schools must provide an opportunity for students to be proficient in a world language by 2012. Students must demonstrate proficiency in technology and 21^st century literacy. The total credits required for graduation remains at 22.

Rodney Kelly, Director, Kentucky Department of Education Division of Career and Technical Education, reviewed the requirements before the Statewide P-16 Council. He stressed school districts will implement advising and guidance processes for the development of Individual Graduation Plans (IGPs). Sixth graders will be required to begin the process in 2007. Performance-based credit may be awarded for standards-based coursework that demonstrates satisfactory learning. This may be obtained through portfolios, senior year or capstone projects; on-line or other technology mediated courses; dual-credit courses; or internship, cooperative learning or other supervised experiences. An integrated, applied, interdisciplinary or technical/occupational course may be substituted for a required course if it provides rigorous content and addresses the same applicable components of the Program of Studies. Instruction requirements may be a CTE teacher and a core-content teacher team, a CTE teacher meeting “highly qualified teacher” criteria, or a CTE teacher facilitating a course using a virtual “highly qualified teacher.”

Ø Scoring 90 or more points on the “HOUSSE Index” calculator through the Educational Professional Standards Board,

Ø Taking additional core content course while completing Masters and Rank I requirements to prepare for Praxis II.

Speaking before the Area Technology Center principals, David Billingsley, newly appointed Executive Director of the Office of Career and Technical Education outlined his belief in the state system of ATCs. He stressed two goals.

In focusing on state and local CTE issues such as funding, accountability and teacher pay, the importance of the federal Carl D. Perkins Vocational and Technical Education Act often is overlooked. It is true that the federal funds supporting CTE in Kentucky amounts to 7 percent or less of total CTE expenditures. However, those funds are critical in stimulating innovation, providing professional development, and supporting new equipment purchases. Further, the existence of the Perkins Act forces state and local school officials to include and address CTE.

Ø Without Perkins, how many schools would have abandoned CTE in favor of placing more resources in the high-visibility, high-accountability areas of math, science and language arts?

Ø Without Perkins, which specifically authorizes Career and Technical Education Student Organizations, would CTE students have the opportunity to develop their skills in that type of nurturing environment?

Ø Without Perkins, what programs would provide students who need experiential learning to achieve academic success and post-secondary and job opportunities?

As the U.S. Congress continues its appropriations processes and efforts to reauthorize the Perkins Act, 10 KACTE members met with two members of Congress and with staff of all eight members of Kentucky’s congressional delegation in Washington, DC, March 7-8, to emphasize the importance of CTE programs and the need to fund and reauthorize the Perkins Act. Although much advocacy work remains, early indications are Congress will continue Perkins Act basic state grant funding. There is support for Perkins Act reauthorization, but the debate on other issues continues to move action on the bill to a lower priority. Attending the Association for Career and Technical Education National Policy Seminar and participating in the congressional visits were:

Ø Sarah Raikes, Washington County High School, KACTE Immediate Past-President and ACTE Region 2 Representative

Ø Jewell Deene Ellis, Kentucky Department of Education, Division of Career and Technical Education

Ø Pat Vencill, Kentucky Department of Education, Division of Career and Technical Education, ACTE Special Needs Division Vice-President

Ø Leslie Watkins, Reidland High School, Paducah, National Association of Teachers of Family and Consumer Sciences President

Ø Lynn Baldwin, Conner High School, Hebron, Kentucky Association of Vocational Education Special Needs Personnel President-Elect

Ø Faria P’Pool, Trigg County High School, Kentucky Association of Teachers of Family and Consumer Sciences President