Researcher: JM Page 1 4/13/23 OLR Bill Analysis sHB 5003 AN ACT CONCERNING EDUCATION FUNDING IN CONNECTICUT. SUMMARY The bill makes significant changes to five major education funding grant programs: (1) Education Cost Sharing (ECS), (2) interdistrict magnet schools, (3) regional agricultural science and technology centers (i.e., “vo-ag centers”), (4) Open Choice enrollment, and (5) state charter schools. The bill changes the statutory schedule for ECS grant increases. Under the bill, towns that the ECS grant formula currently underfunds are fully funded sooner than under current law, by FY 25 rather than by FY 28. It maintains (1) the scheduled ECS reductions for overfunded towns and (2) a minimum of at least the previous year’s ECS grant for any alliance district town. The bill eliminates, beginning with FY 25, the existing magnet school, vo-ag center, and Open Choice grant programs and replaces them with new grants under the choice program, which the bill creates. The choice program grant provides funding for local or regional boards of education (i.e., “school boards”) that operate a magnet school, a vo-ag center, or host students through Open Choice interdistrict school attendance program. The bill also creates a separate grant for any magnet school operated by an entity that is not a board of education, such as an independent institution of higher education. The bill uses student need weightings in the choice program grants and the non-board of education magnet school grants that mirror the weighting used in existing law for ECS and charter school grants: additional weight for those eligible for free or reduced priced meals or free milk (FRPM), or designated as an English language learner. So, 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 2 4/13/23 these grants give added funding for students that meet those criteria. Also beginning in FY 25, the bill generally prohibits magnet schools and vo-ag centers from charging tuition to the towns that send students to magnet schools or vo-ag programs. The bill specifies that the new grant must give at least an amount of state funds that is equal to what a magnet school operator or vo-ag center received in FY 24, both from the state and from tuition from sending districts (i.e., a “hold harmless” provision). Under existing law, the per-student state charter school grant increased in FY 23. The bill requires additional increases for FYs 24 and 25, with state charters receiving full funding in FY 25. The bill adds a cost-of-living increase, starting in FY 26, for the foundation amount used to calculate grants for non-board of education magnet schools and state charter schools based on an annual percent increase in personal income or inflation, whichever is greater. It requires the State Department of Education (SDE), annually starting by February 1, 2024, to calculate and give to the relevant operators or towns certain estimates for the various grants under the bill. The bill also: 1. creates a commission to study various educational issues including (a) funding for local school districts, charter schools, and magnet schools as provided under the bill; (b) the alliance district plan process; and (c) charter school grade expansion (§ 11); 2. explicitly places charter schools under the educational interests of the state law that includes a complaint process if a party believes the school is not meeting the educational interests of the state (§§ 12 & 13); and 3. renames and revises the alliance district program (renamed educational reform districts and legacy alliance districts) (§§ 14- 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 3 4/13/23 16). EFFECTIVE DATE: July 1, 2024, except the provisions on (1) changing to the ECS funding schedule, increasing the charter school grant, and placing charter schools under the educational interests of the state are effective July 1, 2023, and (2) SDE’s duty to calculate estimates of the choice grants and creating the commission are upon passage. § 1 — ECS GRANT SCHEDULE By law, the ECS grant has a multi-year schedule with incremental increases for towns that are underfunded and incremental decreases, or years with no change in funding, for overfunded towns. When determining ECS grant increases or decreases, the formula uses a town’s “grant adjustment,” which is the absolute value of the difference between a town’s ECS grant amount for the previous year and its fully funded grant amount. So, for underfunded towns, the grant adjustment is the amount needed to be fully funded; for overfunded towns, it is the amount the town is funded in excess of its fully funded grant. Under current law, underfunded towns receive ECS funding increases in each of FYs 24-27 and are fully funded in FY 28. Under the bill, these towns receive the existing scheduled increase for FY 24 (the previous year’s amount plus 20% of its grant adjustment). In FY 25, the bill begins fully funding these towns each year, rather than giving the previous year’s amount plus a certain percentage of its grant adjustment. Under the bill, the scheduled ECS reductions for overfunded towns are not changed and towns that are alliance districts, if overfunded, continue to be funded at the same level. (Beginning in FY 25, the bill renames alliance districts, as “legacy alliance districts” and “educational reform districts” (see §§ 14-16, and BACKGROUND).) Some towns are overfunded due primarily to the years when the state froze the level of funding for all towns even when some towns’ student enrollment dropped. A town with declining enrollment generally 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 4 4/13/23 receives less funding when the formula is updated with new enrollment figures. § 2 — CHOICE PROGRAM GRANTS Beginning with FY 25, the bill annually provides choice program grants for vo-ag centers, the Open Choice program, and two different interdistrict magnet school grants, based on who is operating the magnet school. The state’s vo-ag centers serve high school students from multiple sending towns and provide an agricultural career education in addition to the comprehensive high school education. Open Choice is an interdistrict enrollment program that allows students in urban centers to attend school in suburban districts and vice versa. One magnet school grant is for school board-operated magnets and the other is for operators that are not school boards, such as an independent institution of higher education. Grant Student Weights For choice program grants, the bill creates the choice program grant formula, which applies weights for certain students, such as whether the students are (1) from families that qualify for FRPM or (2) English language learners. The weights increase the grant amounts for those students because the grant amount is produced by multiplying the need student number by the foundation number. For example, the bill provides for a 30% weighting for student poverty (i.e., students that qualify for FRPM) for each of these grants. If 100 students from a district qualify, then, for grant purposes, those students count as 130 students. This increases the grant as the weighted number becomes the new student number that is multiplied by the foundation amount (see below). Host Magnet and Vo-Ag Grants Under the bill grants for the magnets operated by a school board (i.e., a host magnet) and vo-ag center use similar factors. Beginning with FY 25, the magnet operator or the vo-ag center get grants that are the sum of (1) the sending town adjustment factors for 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 5 4/13/23 each sending town added together and (2) the number of in-district students for the choice program multiplied by the applicable per- student grant amount (magnet or vo-ag). The sending town is the student’s town of residence that would otherwise be responsible for educating the student. Sending Town Adjustment Factor. The sending town adjustment factor is the number of the town’s resident choice program students multiplied by the greater of the sending town’s (1) weighted funding amount per pupil or (2) total revenue per pupil. The “weighted funding amount per pupil” is (1) the foundation amount multiplied by a town’s total need students for the fiscal year before the grant payment year and (2) the resulting product is divided by the number of a town’s resident students. The “total revenue per pupil” is the combined per-pupil amount of state grants and tuition received for choice students for FY 24. This means the FY 24 amounts become the hold harmless minimum for these grants. Additional Definitions Additionally, the bill defines the following terms for purposes of the new grants: 1. the “foundation” amount is $11,525, which is the same as in ECS law, although the bill includes an annual personal income or inflation adjustment for magnet school operators that are not a board of education, see below; 2. “total need students” means a (a) student poverty weighting (as under ECS law) of 30% of students eligible for FRPM plus 15% of any FRPM-eligible students above 60% of the total number of resident students and (b) 25% of the number of students identified as English language learners; 3. “resident students” means generally the number of students in a town enrolled in its public schools at the town’s expense as of October 1 of each year (as under the ECS law); and 4. “resident choice program students” means the number of part- 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 6 4/13/23 time and full-time students of a town enrolled or participating in a particular choice program. Non-Board of Education Magnet Schools For this grant, a magnet school operator is defined as an entity that is (1) not a board of education (presumably, this includes regional educational services centers (RESCs)); (2) a nonprofit private institution of higher education that has its main campus in the state; or (3) a third- party nonprofit corporation that the education commissioner approves. Under the bill, starting in FY 25, these operators are entitled to a grant that equals the product of the foundation and its total magnet school program need students, with the added requirement that the grant cannot be less than the magnet operator received for the total revenue per pupil for FY 24 (this is similar to the total revenue per pupil hold harmless provision included in the “sending town adjustment factor” mentioned above). The bill creates a formula for calculating total magnet school program needs students that (1) counts full- and part-time students at the magnet schools, (2) generally uses the ECS student weighting percentages, and (3) includes a Sheff region additional student weighting. The foundation component for this grant also has an annual cost-of-living factor that potentially increases the foundation from one year to the next. Student Weighting. The student need weighting reflects the ECS formula weighting as follows: (1) student poverty weighting is 30% of students eligible for FRPM plus an additional 15% of any FRPM-eligible students above 60% of the total number of resident students and (2) a 25% weighting for the number of students who are identified English language learners. The bill adds additional student weighting for magnet schools that are helping the state meet its obligations under the Sheff v. O’Neill desegregation court decision and related agreements or orders (see BACKGROUND) . This additional weighting is reduced over a six-year period from an initial 30% to 20% as shown in the table below. 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 7 4/13/23 Table: Additional Weighting for Students Attending Sheff Magnets FY Weighting Percentage 25 30% 26 28% 27 26% 28 24% 29 22% 30 and beyond 20% Foundation Annual Adjustments Starting in FY 26 for Magnet Schools. The bill adds a foundation cost-of-living increase for magnet school operators that are not a local or regional board of education, based on the annual percent increase in personal income or inflation, whichever is greater, starting in FY 26. For FY 26, the cost-of-living adjustment is $11,525, adjusted by the appropriate annual percent increase, and for FY 27 and each following year, it is the previous year’s amount adjusted by the appropriate annual percent increase. The bill uses the following statutory definitions for these terms: 1. “increase in personal income” is the compound annual growth rate of personal income in Connecticut over the previous five calendar years, using federal Bureau of Economic Analysis data; and 2. “increase in inflation” is the increase in the consumer price index for all urban consumers, for all items except food and energy, during the prior year, using federal Bureau of Labor Statistics data (CGS § 2-33a). Open Choice Program Under the bill, beginning in FY 25, any receiving district that accepts students in the Open Choice program will be entitled to a grant in the amount of the sum of the sending town adjustment factor for each sending town. § 3 — ECS, CHOICE PROGRAM, AND CHARTER S CHOOL GRANT ESTIMATES 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 8 4/13/23 The bill tasks SDE, starting by February 1, 2024, with annually calculating and giving the relevant operators or towns estimates for the following grants for the next fiscal year: 1. each choice program grant established under the bill (SDE must notify each local and regional board of education and magnet school program operator that is not a local or regional board of education) and 2. fully funded ECS grants (SDE must notify each town). The bill also requires SDE, annually starting by February 1, 2024, to (1) calculate the product of the foundation and the total charter need students for each state charter school fiscal authority for the next fiscal year and (2) notify each fiscal authority of the result. For each of these calculations, the bill requires SDE to calculate estimates for the next fiscal year using data collected during the current one. §§ 4 & 5 — ELIMINATING CURRENT MAGNET SC HOOL GRANT PROGRAMS AND TUITION The bill eliminates, beginning with FY 25, the existing per-student magnet school grants and replaces them with the grants created in the bill (see § 2). Under current law, a magnet school generally receives a $3,060 grant for each student from the district that hosts the school (home district) and, depending on the type of magnet school, one of the grants listed in the table below for students from sending towns. In addition to repealing the $3,060 grant for host district students, the bill repeals all the magnet school grants shown in this table for students from sending districts. Table: Magnet School Grants Repealed Under the Bill Type of Magnet Bill § Current Law Amount for Sending Students Non-Sheff host magnet 4(c)(1) $7,227 Non-Sheff RESC magnet with less than 55% enrollment from one town 4(c)(3)(A) 8,058 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 9 4/13/23 Type of Magnet Bill § Current Law Amount for Sending Students Non-Sheff RESC magnet with 55% or more of enrollment from one town 4(c)(3)(B) 7,227 RESC magnet that began operations in the 2001-2002 school year and meets certain other criteria (i.e., former Edison Magnet in Meriden) 4(c)(3)(C)(ii) Maximum 8,344 (lower for some students depending on certain factors, such as where they live) Sheff host magnet 4(c)(3)(F) 13,315 RESC magnet enrolling less than 60% of its students from Hartford (i.e., Sheff magnet) 4(c)(3)(D)(i) 10,652 RESC magnet enrolling less than 50% of its students from Hartford (i.e., Sheff magnet) 4(c)(3)(D)(ii) 8,058 (for half of the non-Hartford students enrolled over 50% of total enrollment) 10,652 (for all the other students) Magnet operated by independent institution of higher education and that meets certain criteria (Goodwin University) 4(c)(3)(E) 65% of the 10,652 grant for students enrolled in both semesters each year 32.5% of 10,652 for those enrolled in one semester a year Greater Hartford Academy of the Arts 4(c)(3)(H) 65% of 8,058 (the grant for RESC magnets with less than 55% from a single town) The bill specifies that beginning with FY 25 magnet school operators are entitled to the new grant as determined under the bill (see § 2). Tuition Ban and Exception to the Ban Starting in FY 25, the bill generally prohibits magnet schools from charging tuition to the towns that send students to the magnets for grades K to 12. This applies to all the magnet operators: (1) local or regional boards of education; (2) RESCs; (3) independent higher education institutions; and (4) any third-party, nonprofit corporation the education commissioner approves. Beginning with FY 26, the bill allows any magnet school operator that 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 10 4/13/23 is not a board of education (i.e., a RESC, independent higher education institution, or approved nonprofit) to charge tuition to a sending town’s board of education if the operator’s state grant under the bill is not calculated using the foundation number adjusted for an increase in personal income or inflation, as the bill requires. However, the tuition cannot exceed the difference between the amount the operator would be entitled to receive under the bill using the foundation adjustment calculation and the amount they will receive. (The bill does not require SDE to notify magnet school operators when the income/inflation adjustment is not made, so it is unclear how they would know they are authorized to charge tuition.) Whenever one of these operators opts to start charging tuition, it must notify SDE of the (1) per-student and total tuition charged for the fiscal year, (2) total amount charged to each sending town, and (3) school boards for the sending towns that were charged. The bill requires SDE to annually develop a report of the tuition charged and submit it annually to the Appropriations and Education committees by January 1. Magnet Students and ECS Under the bill, magnet school students are counted in the town where they reside for the student count for ECS grants, which codifies current practice. § 6 — CHARTER SCHOOL GRANT INCREASES The bill increases the per-student state charter school grant for FYs 24 and 25, with state charters receiving full funding in FY 25. By law, the grants go to the charter school’s governing authority. Charter Grant Factors By law, the state charter grant has the same student need weighting percentages with the same factors (FRPM and English learner status) that are used in existing ECS law and in the bill for choice grants. Under current law, the increase in the state grant is a percentage of a school’s charter grant adjustment, which is the absolute value of the 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 11 4/13/23 difference between the (1) foundation ($11,525) and (2) charter full weighted funding per student for the state charter schools under a governing authority’s control for the school year. The “charter full weighted funding per student” is a value calculated as (1) the product of the total charter need students and the foundation, divided by (2) the number of enrolled students under the charter school governing authority’s control for the school year. Grant Increases The current (FY 23) per-student grant for charter school governing authorities is the foundation amount plus 25.42% of its charter grant adjustment. Under the bill, the per-student grant is: 1. for FY 24, the foundation plus 36.08% of its charter grant adjustment and 2. for FY 25 and each year after, the product of the foundation and the school’s total charter need students (i.e., full funding under the formula). Foundation Annual Adjustments Starting in FY 26 for Charter Schools. The bill adds a foundation cost-of-living increase for charter school governing authorities based on an annual percent increase in personal income or inflation, whichever is greater, starting in FY 26 and for each following year (this is the same method for non-board of education magnet school annual adjustments in § 2). §§ 7-9 — ELIMINATING CURRENT VO-AG CENTER GRANTS AND TUITION Beginning with FY 25, the bill repeals the current $5,200 per-student state grant for vo-ag centers and replaces it with the vo-ag choice grant the bill creates (§ 2). The bill also repeals related supplementary grants for vo-ag centers ranging from $60 to $500 per student. Under current law, a vo-ag center can charge the sending towns tuition for the students they send to the program, but it caps tuition at 59.2% of the foundation ($11,525) used for ECS, resulting in a maximum 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 12 4/13/23 tuition of $6,823. The bill prohibits a vo-ag center from charging this tuition starting July 1, 2024. However, it maintains a current provision that allows tuition for educating special education students but only if, and in the amount, the cost exceeds the state grant received for the student under the bill. The bill repeals the requirement that a sending district provide students in their district an equivalent number of seats from one year to the next to enroll in the vo-ag program. Current law requires the districts to (1) make available at least the same number of seats as stated in any written agreement or, in the absence of one, the average number enrolled over the last three years and (2) specifically for each ninth- grade class, make available either the agreement number or the average number who enrolled in ninth grade in the last three years. The bill also (1) repeals the mandate on districts that send students to a vo-ag program to pay tuition and (2) specifies that for a town’s student count for the ECS grant, a student enrolled in a vo-ag center is counted in the town where the student resides, which codifies current practice. § 10 — ELIMINATING CURRENT OPEN CHOICE G RANT SCHEDULE Beginning in FY 25, the bill replaces the current Open Choice grant schedule with the grant created in the bill (§ 2). Open Choice is a voluntary inter-district attendance program that allows students generally from the Hartford, New Haven, and Bridgeport districts to attend suburban school districts, and vice versa, on a space-available basis. SDE provides a per-student grant for school districts that receive Open Choice students. Under current law, the grants range from $3,000 to $8,000 per student, with larger grants for districts that enroll a higher percentage of Open Choice students. For example, a district receives $3,000 per student if Open Choice students are less than 2% of its student population. The grant amount increases incrementally until, at the highest amount, a district receives $8,000 per student if Open Choice students are at least 4% of the student population. 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 13 4/13/23 The bill relatedly repeals the additional $2,000 per-student grant given to receiving school districts for each out-of-district student who resides in the Hartford region (i.e., the Sheff region) and attends school in a receiving district under the program (see BACKGROUND). § 11 — COMMISSION TO STUDY EDUCATION FUNDING A ND ACCOUNTABILITY MEASU RES The bill creates the Building Educational Responsibility with Greater Improvement Networks Commission to study various educational issues including funding for local school districts, charter schools, and magnet schools as provided under the bill (§ 2) and accountability measures for alliance districts (educational reform districts and legacy alliance districts, under the bill) and charter schools. The commission study must be presented in two separate parts. The first part examines school district, charter school, and magnet school funding entitlements and must include, at a minimum: 1. the compensation, benefits, retention, and recruitment of teachers, paraprofessionals, and social workers; 2. restrictions on the use of, and reporting requirements for, any additional funds received under the bill, both ECS funds and the new grants; and 3. optimal class sizes. The second part of the study focuses on alliance districts and charter schools. For alliance districts, the study must, at a minimum, include an analysis of how school boards develop alliance district plans and how they are reviewed and approved by the education commissioner, and recommendations for narrowing the focus of or replacing the plans. The study must also consider the following: 1. possibly eliminating the withholding of a portion of an alliance district’s ECS grant, 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 14 4/13/23 2. the feasibility of creating independent financial audits of the expenditures under the entire budget of an alliance district’s school board, 3. the feasibility of requiring alliance district school boards to hold hearings on interventions and make annual evaluations of any new programming established in the school district, 4. setting guidelines for the hiring of nonclassroom personnel, and 5. interventions that SDE may take in regard to the operations in an alliance district. For charter schools, the study must include, at a minimum: 1. the feasibility of a full grade expansion of existing charters, including grade expansion; 2. an examination of the impact of moratoriums on any new charter school approval, as well as new magnet school program approval; and 3. a consideration of the duration of a charter’s validity and the State Board of Education’s (SBE) standards used to determine whether to renew a charter. Task Force Membership Under the bill, the education commissioner and the Office of Policy and Management secretary, or their respective designees, are members. The table below shows the 16 additional members, what authority appoints them, and any required organizational affiliations. Table: Task Force to Study Education Funding Membership and Appointing Authority Appointing Authority (Appointments) Member Organization or Position House speaker (three) • Connecticut Association of Public School Superintendents representative • Connecticut Council of Administrators of Special Education representative • RESC Alliance representative 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 15 4/13/23 Appointing Authority (Appointments) Member Organization or Position Senate president pro tempore (three) • Connecticut Association of Boards of Education representative • Special Education Equity for Kids representative • Center for Children’s Advocacy representative House majority leader (three) • Connecticut School Counselor Association representative • Connecticut Education Association representative • Superintendent of an alliance district Senate majority leader (three) • American Federation of Teachers-Connecticut representative • ConnCAN representative • School and State Finance Project representative House minority leader (two) • Connecticut Association of School Administrators representative • Connecticut Association of School Business Officials representative Senate minority leader (two) • Connecticut Charter School Association representative • Executive director of an agricultural science and technology education center Organizational Matters and Report Deadline The bill requires all initial commission appointments to be made within 30 days after the bill’s effective date and any subsequent vacancy to be filled by the appointing authority. The House speaker and Senate president pro tempore must select the chairpersons from among the commission members. The bill requires the chairpersons to schedule the commissioner’s first meeting, which must be held within 60 days after the bill’s effective date. The Education Committee’s administrative staff must serve as the task force’s administrative staff. The commission must submit the first part of its study, with findings and recommendations, to the Education and Appropriations committees by February 1, 2024. It must submit the second and final part of the study to the Education Committee by January 15, 2025. 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 16 4/13/23 It terminates when it submits the last report or July 1, 2025, whichever is later. §§ 12 & 13 — CHARTER SCHOO LS AND THE EDUCATION AL INTERESTS OF THE STATE By law, charter schools are required to follow all federal and state laws governing public schools, with limited exceptions. The bill explicitly adds that state laws governing public schools includes the educational interests of the state. It also allows complaints to be brought to SBE in situations where a resident or a parent alleges the failure or inability of a charter school to implement the educational interests of the state. This complaint provision currently applies to local and regional boards of education. The existing exceptions allow (1) charter schools to seek an enrollment lottery waiver from SBE to pursue a school that has a special student body such as (a) students with a history of behavioral and social difficulties, (b) English language learners, or (c) students of a single gender and (2) the commissioner to waiver certain teacher certification requirements for charter school staff. Educational Interests of the State and Complaint Process By law, the educational interests of the state include the requirement to implement the educational state mandates and that each: 1. child must have equal opportunity to receive a suitable program of educational experiences as prescribed in law; 2. school district must finance, at a reasonable level at least equal to the minimum budget requirement required by state law, an educational program designed to provide suitable educational experiences; and 3. school district shall provide educational opportunities for its students to interact with students and teachers from other racial, ethnic, and economic backgrounds and may provide these opportunities with students from other communities. 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 17 4/13/23 Complaints must be made to SBE in writing and SBE may initiate a complaint on its own. If after an investigation, during which the school board or charter school is given the opportunity to present its case, SBE can require the school board or charter to develop and plan to address the situation or take other reasonable steps. §§ 14-16 — RENAMING THE ALLIAN CE DISTRICTS Beginning in FY 25, the bill renames the alliance districts and revises the alliance district program. The term “educational reform district” replaces “alliance district” and the bill reduces the number of districts with this designation from 36 to 20. Also, “legacy alliance district” means a school district for a town that was designated as an alliance district for the fiscal years ending June 30, 2013, to June 30, 2024, inclusive. This means the legacy alliance districts include all the educational reform districts and the 16 other districts that are no longer designated alliance districts. Under current law, an alliance district is a school district that is among the towns with the 33 lowest accountability index (AI) scores as calculated by SDE. Additionally, the law required the education commissioner to designate 36 alliance districts for the five-year period from FYs 23-27. (The additional three included were the three districts that had been in the 33 lowest, but with the last AI scores, they were no longer among the 33 lowest.) The bill requires the education commissioner to designate as educational reform districts the districts among the towns with the 20 lowest AI scores for two-year period, beginning with FY 25. It also repeals the current definition of “educational reform district,” which is an alliance district that is among the 10 lowest AI scores in the state. Under this program, the comptroller withholds from an alliance district town any increase in ECS funds that exceed the amount the town received in 2012 (the year the program began). But, for districts designated as alliance districts for the first time for FY 23, the comptroller must withhold ECS funds over the FY 22 amount. The comptroller transfers the money to the education commissioner to 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 18 4/13/23 withhold until she approves the district’s alliance district application and plan to improve academic performance. Under the bill beginning with FY 25 and for each following year, the amount withheld for the 20 educational reform districts will be the amount of ECS funds they are entitled to that exceed the amount the town received in 2012. The 16 districts that are no longer designated as alliance districts will not have funds withheld. Existing law requires the alliance districts to spend their alliance funds (1) according to the plan submitted with the application; (2) on the minority candidate certification, retention, and residency program; (3) on ECS spending requirements; and (4) for any other items allowed under SDE guidelines. The bill also allows a school district that has not been designated an educational reform district, but is among the 50 towns with the lowest AI scores, to request technical assistance or other interventions from SDE in order to provide student academic support services. Conforming Changes for ECS and PILOT Funds (§§ 15 & 16) The bill makes conforming changes by making the same name change to two laws that reference alliance districts (and otherwise keeps the provisions unchanged): 1. the ECS funding provision that requires a town designated as a legacy alliance district or an educational reform district to have a minimum base aid ratio of 10%, guaranteeing a minimum amount of aid; and 2. the payment in lieu of taxes (PILOT) provision for a town designated as a legacy alliance district or an educational reform district. BACKGROUND Related Bills sSB 1028 (File 440), favorably reported out by the Education Committee, sunsets one targeted magnet school grant. 2023HB-05003-R000575-BA.DOCX Researcher: JM Page 19 4/13/23 sSB 1, favorably reported out by the Education Committee, removes the five-year term on the alliance district designation and allows for the designation of additional alliance districts. Accountability Index Score The “accountability index score” for a school district or an individual school is the score resulting from multiple weighted measures that (1) include the mastery test scores (i.e., the performance index score) and high school graduation rates and (2) may include academic growth over time, attendance and chronic absenteeism, postsecondary education and career readiness, enrollment in and graduation from higher education institutions and postsecondary education programs, civics and arts education, and physical fitness (CGS § 10-223e(a)). Sheff v. O’Neill State Supreme Court Decision In this 1996 decision, the Connecticut Supreme Court ruled that the state had a constitutional obligation to remedy the educational inequities in the Hartford schools caused by racial and ethnic isolation (Sheff v. O’Neill, 238 Conn. 1 (1996)). The court ordered the state legislature and the governor to craft a solution and legislation was passed to create voluntary desegregation in Hartford by creating magnet schools and using other programs, such as Open Choice. Sheff Region This region includes the school districts for the towns of Avon, Bloomfield, Canton, East Granby, East Hartford, East Windsor, Ellington, Farmington, Glastonbury, Granby, Hartford, Manchester, Newington, Rocky Hill, Simsbury, South Windsor, Suffield, Vernon, West Hartford, Wethersfield, Windsor, and Windsor Locks. COMMITTEE ACTION Education Committee Joint Favorable Substitute Yea 44 Nay 0 (03/24/2023)