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State Leaders Intend to Restore Funding to QEIA Districts and Schools The recently adopted State Budget contained an unpleasant surprise for the 135 school districts participating in the Quality Education Investment Act program (QEIA). The budget deleted additional $450 million non-Proposition 98 appropriations contained in the 2009 Budget Act approved in February 2009, including $402 million appropriated for the QEIA program. This action was taken to avoid reduction of $450 million in Proposition 98 funding and, alternatively, any negative impact on the health and social services side of the state budget. The Association of California School Administrators (ACSA) and Total School Solutions (TSS) representatives met with various legislative and Governor’s office staff this week to assess how Sacramento policy makers intend to make these QEIA districts whole in 2009-10. QEIA was instituted as a result of a CTA-led lawsuit against the Governor in 2006. As part of a legal settlement, eligible districts and schools (in deciles 1, 2, and 3) would receive additional funding over a seven-year period. This funding would be used to improve academic achievement at schools with the most disadvantaged students. Participating schools have to adhere to specific class size minimums, additional staffing, and curriculum requirements. More than 130 school districts receive QEIA funding, covering some 466 school sites statewide. Since 2006-07, QEIA had been funded through non- Proposition 98 funding. But under a scenario included in the new budget act, QEIA will now be included in Proposition 98. QEIA districts will have their revenue limits adjusted downward by an amount equivalent to their QEIA allocations. The program’s requirements still remain in place. QEIA schools and districts are still required to meet strict program guidelines, but with a potentially huge (and unanticipated) hole in their general purpose funding. Legislative and Governor’s office staff stated this week that their intent is to make all QEIA districts “whole again” in 2009-10. The plan is to backfill this reduction in unrestricted general fund by utilizing Title I School Improvement Grant funding, as well as 2009 Title I carryover and set-aside funds. In addition, the budget bill extended the QEIA program for one more year until 2014-15. But despite these assurances, several concerns remain unaddressed. First, not all QEIA districts will qualify for Title I School Improvement Grants. It appears that 23 high schools and 10 elementary schools are in QEIA but not eligible for Title I. In addition, any increases in these grant funds could have been more appropriately used for program enhancements instead of unexpected backfilling for a loss of state funding. Budget staff have informed us that policy guidelines will be soon issued by the California Department of Education (CDE) and additional legislation will be adopted to address these concerns and ensure all QEIA districts and schools receive full funding they would have otherwise received through QEIA in 2009-10. We have been informed that staff from CDE, the Legislature, and Governor’s office will meet next week to discuss this matter. If all necessary guidelines and statutes are put in place, QEIA districts would receive their first federal allocations by October. An even larger issue that will have to be answered is whether this maneuver is legal. It is quite possible the federal government will see this as a supplanting issue. Then what will the state do? ACSA and TSS are working closely with other stakeholders to learn more. We will provide that information when it becomes available. In the meantime, we continue to monitor and advocate for a complete restoration of this vital funding for our most needy students. Editor's Note: Tahir Ahad is President of educational consulting firm Total School Solutions (TSS), and Brett McFadden is Management Services Executive at Association of California School Administrators (ACSA). |
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