IOWA ASSOCIATION OF COMMUNITY COLLEGE TRUSTEES IOWA ASSOCIATION OF COMMUNITY COLLEGE PRESIDENTS 2010 LEGISLATIVE SESSION

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1 IOWA ASSOCIATION OF COMMUNITY COLLEGE TRUSTEES IOWA ASSOCIATION OF COMMUNITY COLLEGE PRESIDENTS 2010 LEGISLATIVE SESSION Summary Report Reflects the Governor s Final Actions April 30, 2010 This summary of the 2010 Legislative session was prepared by Steve Ovel, Kirkwood Community College, on behalf of and in cooperation with the 2010 Iowa Community College lobbying team and active legislative liaisons consisting of the following individuals: Don Avenson, Tom Cope, Matt Eide, Jerry Fitzgerald, Maggie Fitzgerald McElroy, Mark Joyce, Brice Oakley, John Peterson, Dave Palmer, IACCT Legislative Consultant, and Cindy Schulte, Iowa Valley Community College District. Thank you to IACCT Executive Director MJ Dolan for her valued support and leadership throughout the legislative session. We also thank the following Community College legislative liaisons for their support with their local Community College legislative delegations and their frequent trips to the State Capitol: Ann Watts (DMACC), Julie Stoik (WITCC), Stacy Gibbs (SWCC), Jim Kersten (ICCC), Gary Mohr (EICCD), Bob Morrissey (IHCC), Clark Marshall (ILCC), Don Kohler (IWCC), Gary Kaufman (DMACC), Jan Snyder (NCC), Kathy Flynn (HCC), Sethanne DeGabriele (NIACC), Bill Meck (SCC) and Tracy Kruse (NICC). We would like to extend a special thank you to Ann Watts, DMACC, for her assistance in preparing the weekly legislative updates and bill tracking list and for maintaining the IACCT legislative website and to Gary Kaufman, DMACC, for his capable assistance in preparing bill drafts for the lobbying team throughout the legislative session. We also greatly appreciate the support we received from the Iowa State Education Association lobbying team regarding our state general aid and faculty salary funding requests and the leadership and lobbying teams from the Association of Business and Industry, the Iowa Chamber Alliance and the Iowa Business Council for their effective support in protecting the integrity of the Iowa New Jobs Training Program. Any questions regarding the information in this report should be directed to Steve Ovel at or sovel@kirkwood.edu or the IACCT office. 1

2 Summary of Appropriations Program FY 2011 Inc./Dec. over Percent Appropriation net FY 2010 change State General Aid $158,754,245* ($ 16,425,013) (9.4%) Faculty Salary Funding $ 825,012 $ 0 0.0% Voc-Tech Tuition Grant Program $ 2,413,959* ($ 98,999) (3.9%) Regional Telecomm. Councils $ 1,065,180 ($ 43,684) (3.9%) Workforce Development Fund $ 4,000,000 $ 0 0.0% Corrections Education Program $ 1,858,109 $ 194, % ACE Infrastructure Fund $ 5,500,000 $ 0 0.0% Maintenance Infrastructure Fund $ 2,000,000 $ 2,000, % Small Business Development Ctrs. $ 994,929 $ 116, % SBDC Supplemental GIVF $ 266,000 ($ 49,000) (10.0%) Workforce Training & Economic $ 9,820,000 ($ 980,000) (9.1%) Development Fund (260C.18A) ACE withholding job credits $ 6,400,000 ($ 600,000) (10.0%) Total $193,897,434 ($ 15,885,976) ( 7.6%) * Includes supplemental funding appropriated in 2010 to restore FY 2010 ATB cuts ARRA Federal Stimulus Funding $ 0 ($ 25,600,000) (100.0%) This funding reflected in the State General Aid reduction above. Community College Legislative Priorities 1. Protect our State General Aid Support We secured a restoration of $5.9 million in SGA for FY 2010 as required by the federal stimulus FY 2006 maintenance of effort requirements. We secured an increase of $10.0 million in SGA over the Governor s FY 2011 recommendation which reflected the federal stimulus FY 2006 maintenance of effort funding level. Community College SGA funding for FY 2011 is still $16,425,013 below the net FY 2010 level and $24,308,182 below the original FY 2009 level. 2. Protect our Infrastructure and Job Training Support We secured level funding for the ACE Infrastructure Fund of $5.5 million and the Workforce Development Fund of $4.0 million. The Workforce Training and Economic Development Fund was reduced to $9,820,000. We secured the restoration of $2.0 million in maintenance infrastructure funding. The ACE program job credits were cut by $600,000 or ten percent. 3. Protect the Integrity of the Iowa New Jobs Training Program We succeeded in protecting Chapter 260E from any statutory changes. A legislative interim study committee has been established to review the future operation of the program. 2

3 2010 Legislative Report Index Summary of Appropriations Page 2 Community College Legislative Priorities Page 2 Interim Study Committees Page 5 Appropriations Bills Education Appropriations Bill Page 6 State General Aid Faculty Salary Funding Regional Telecommunications Councils Student Financial Aid Programs Vocational-Technical Tuition Grant Program National Guard Educational Assistance Grant Program Student Work Study Program Private College Iowa Tuition Grant Program All Iowa Opportunity Scholarship Program State University Funding Community College Efficiencies Initiatives and Funding Reduction Report UNI Community College STEM Initiative Non-profit organizations Open Meetings & Records Interim Study Committee Economic Development Appropriations Bill Page 13 Workforce Development Fund Small Business Development Centers Workforce Development Field Offices New Iowans Centers Offender Reentry Program Workforce Training and Economic Development Fund Page 15 Grow Iowa Values Fund Iowa Power Fund Rebuild Iowa Infrastructure Fund Justice Systems Appropriations Bill Page 17 Corrections Education Infrastructure Appropriations Bill Page 18 Workforce Training and Economic Development Fund Grow Iowa Values Fund ACE Infrastructure Community College Maintenance Infrastructure Funding Chamber of Commerce Funding Supplemental Appropriations Bill Page 20 Setoff Procedures, Depart. of Administrative Services State General Aid Regent Universities 3

4 Vocational Technical Tuition Grant Program Iowa National Guard Educational Assistance Program Iowa All Opportunity Scholarship Program Reduction of the Grow Iowa Values Fund Salary and Standings Bill Page 22 Iowa Power Fund Apprenticeship Programs Health and Human Services Appropriations Bill Page 22 Food stamp employment and training program Bills of Primary Interest to Community Colleges Retirement Systems Page 23 Iowa Public Employees Retirement System. Government Reorganization Page 24 Community College Accreditation Recommendations Implementation Review. Community College Accreditation Advisory Committee Instructional Hours Study. Community College Academic Workload Exception Fiscal Year Tax Credit Reform Page 24 Industrial New Jobs Training Interim Study Committee Reduction in ACE job credits from withholding Nurses Aides Checks Page 27 Nursing Workforce and Data Page 29 Veterans Affairs Page 30 Green Cleaning Products Page 31 Iowa Innovation Council Page 32 Public Employee Collective Bargaining Changes Page 33 Bills of Secondary Interest to Community Colleges Child Care Provider Checks Page 35 Campaign Finance Requirements and Reporting Page 35 Plant Closing Notification Page 36 Minority Hiring Page 36 Technical Changes to Election Law Page 37 Veterans Day Holiday for Veterans Page 38 Drivers Education Instructor Issues Page 38 EMS Licensure and Training Programs Page 39 Bills of Interest to Community Colleges not Enacted by the Legislature Facilities Sharing Pilot Program Page 40 Withholding Tax Credits Page 41 Tables Table 1: State General Aid Distribution Page 43 Table 2: State General Aid Distribution Correction Page 44 Table 3: FY 2010 State General Aid History Page 45 Table 4: Faculty Salary Funding History Page 46 Table 5: Workforce Development Fund Distribution Page 47 Table 6: Workforce Training & Economic Development Fund Page 48 Table 7: Maintenance Infrastructure Distribution Page 49 4

5 Interim Study Committees Iowa New Jobs Training Program Interim Study Committee The legislative council is requested to establish an interim study committee to evaluate the effectiveness of Iowa's industrial new jobs training program and make recommendations on the future of the program. The study committee shall issue a report to the general assembly containing its findings and recommendations by January 15, 2011 (page 25). Non-profit Organizations Open Meetings and Open Records Interim Study Committee The legislative council is requested to establish an interim study committee to study the inclusion under the open meetings and open records laws of nonprofit organizations that are supported in whole or in part with public funds or revenues derived from public fees, that were established by, or are operated by, governing boards whose memberships were or are substantially comprised of state or local elected officials or appointees of governmental bodies. The interim study committee shall report its findings and recommendations to the general assembly not later than December 15, 2010 (page 13). Community College Accreditation Recommendations Implementation Review The department of education shall review and evaluate the implementation of the recommendations submitted on January 22, 2010, by the community college accreditation advisory committee in its final report to the general assembly. The department shall submit its findings and recommendations to the general assembly on or before December 31, 2010 (page 24) Community College Accreditation Advisory Committee Instructional Hours Study The department of education shall convene a working group, whose members shall include at a minimum the members of the community college accreditation advisory committee and the community college faculty advisory committee. The working group shall study the maximum academic credit hour per school term workload appropriate for an instructor beyond the standard workload. The working group shall submit its findings and recommendations to the state board of education and the general assembly on or before December 31, 2010 (page 24). Racial and Ethnic Minority Teacher Recruitment Study Representatives of the department of education, the area education agencies, and public and private colleges and universities will study the opportunities for the recruitment and retention of racial and ethnic minority teachers (page 35). 5

6 Education Appropriations Bill: Senate File 2376 State General Aid for Community Colleges. Appropriates $158,754,232 in state general aid (SGA) to the community colleges. This is a decrease of $16,425,013 or 9.38% compared to the net FY 2010 appropriation of $175,179,245 which includes $825,012 in FY 2010 faculty salary funding being built into our SGA base. The original state general aid appropriation to community colleges for FY 2010 was $158,678,501. That reflected a reduction in SGA base funding of $21,637,977 from our net FY 2009 appropriation of $180,316,478. The original FY 2009 appropriation was $183,064,414. The FY 2010 community college state general aid appropriation was supplemented with $25,600,000 in one-time federal ARRA stimulus funds resulting in a FY 2010 appropriation of $184,278,501. On October 8, 2009, Governor Culver instituted a 10% across the board cut in state general aid necessitated by declining state revenues. That represented a loss of $15,867,846 in community college SGA reducing our FY 2010 state general aid allocation to $168,410,655. The federal American Recovery and Reinvestment Act (ARRA) stimulus funding has maintenance of effort provisions that requires states to fund public institutions of higher education at a level no lower than their level of state support in FY 2006 in fiscal years 2009, 2010 and The 10% across the board cut reduced our level of state general aid support below that level. As a result, the legislature funded a supplemental SGA appropriation of $5,943,580 for FY 2010 approved in March 2010 (see Senate File 2366, page 20) necessitated by the federal stimulus funding maintenance of effort requirement. That supplemental appropriation restored SGA in FY 2010 to $174,354,235. SGA Table 1: The FY 2010 SGA net appropriation column in the table below reflects a FY 2010 SGA appropriation of $158,678,501, supplemented with $25,600,000 in one-time federal ARRA stimulus funds, reduced by $15,867,846 by the 10% across the board budget cut authorized by the Governor on October 8, 2009, with a supplemental appropriation of $5,943,580 approved in March 2010 necessitated by the federal stimulus funding maintenance of effort requirement, and the $825,012 in faculty salary funding being built into our FY 2010 base. See Table 1 for a detailed spreadsheet (page 40). FY 2010 SGA FY 2011 SGA Decrease over Net Appropriation Appropriation FY 2010 Net Base Northeast Iowa $ 8,740,620 $ 7,883,981 ($ 856,639) North Iowa Area $ 9,394,934 $ 8,436,896 ($ 958,038) Iowa Lakes $ 8,656,220 $ 7,768,728 ($ 887,492) Northwest $ 4,249,291 $ 3,815,063 ($ 434,228) Iowa Central $ 9,529,120 $ 8,716,704 ($ 812,416) 6

7 Iowa Valley $ 8,273,482 $ 7,429,793 ($ 843,689) Hawkeye $ 12,289,188 $ 11,063,319 ($ 1,225,869) Eastern Iowa $ 15,277,649 $ 13,761,226 ($ 1,516,423) Kirkwood $ 26,453,584 $ 24,208,455 ($ 2,245,129) Des Moines Area $ 26,470,231 $ 24,375,295 ($ 2,094,935) Western Iowa Tech $ 10,038,153 $ 9,034,857 ($ 1,003,296) Iowa Western $ 10,236,951 $ 9,285,726 ($ 951,225) Southwestern $ 4,311,116 $ 3,872,747 ($ 438,369) Indian Hills $ 13,520,379 $ 12,139,931 ($ 1,380,447) Southeastern $ 7,738,328 $ 6,961,511 ($ 776,817) Total $175,179,245 $158,754,232 ($ 16,425,013) SGA Table 2: The FY 2011 SGA appropriation in Table 1 above was distributed with a formula error in the spreadsheet used by the Department of Education. That error was not identified until after the Education Appropriations Bill was passed by the legislature. The corrected distribution is shown in the second column of Table 2 below. This correction to the FY 2011 SGA will have to be made by the 2011 Legislature in the Supplemental Appropriations Bill and the adjustments listed below in column three made in the fourth quarter monthly SGA distributions. Distributions prior to that time will be based on the appropriation levels provided for in SF 2376 as shown in Table 1 above. See Table 2 for a detailed spreadsheet (page 41). FY 2011 SGA FY 2011 SGA Difference to be Appropriation Appropriation Adjusted in 2011 Incorrect Correct Supplemental Bill Northeast Iowa $ 7,883,981 $ 7,888,455 $ 4,474 North Iowa Area $ 8,436,896 $ 8,408,384 ($ 28,512) Iowa Lakes $ 7,768,728 $ 7,736,496 ($ 32,233) Northwest $ 3,815,063 $ 3,801,124 ($ 13,939) Iowa Central $ 8,716,704 $ 8,735,448 $ 18,745 Iowa Valley $ 7,429,793 $ 7,404,285 ($ 25,507) Hawkeye $ 11,063,319 $ 11,051,482 ($ 11,837) Eastern Iowa $ 13,761,226 $ 13,756,305 ($ 4,921) Kirkwood $ 24,208,455 $ 24,263,489 $ 55,034 Des Moines Area $ 24,375,295 $ 24,481,690 $ 106,395 Western Iowa Tech $ 9,034,857 $ 9,025,883 ($ 8,974) Iowa Western $ 9,285,726 $ 9,294,922 $ 9,196 Southwestern $ 3,872,747 $ 3,860,407 ($ 12,340) Indian Hills $ 12,139,931 $ 12,096,214 ($ 43,717) Southeastern $ 6,691,511 $ 6,949,647 ($ 11,864) Total $158,754,232 $158,754,232 $ 0 See Table 3 for a detailed spreadsheet detailing the community college state general aid history for FY 2010 (page 42). 7

8 State General Aid Appropriations History: FY 1988 $ 75,399,923 FY 1989 $ 80,351,182 +$ 4,951,259 FY 1990 $ 87,275,326 +$ 6,924,144 FY 1991 $ 99,007,776 +$11,732,450 FY 1992 $103,957,683 +$ 4,949,907 FY 1993 $105,999,720 +$ 2,042,037 FY 1994 $111,520,721 +$ 5,521,001 FY 1995 $115,470,717 +$ 3,949,996 FY 1996 $120,871,270 +$ 5,400,553 FY 1997 $126,006,271 +$ 5,135,001 FY 1998 $130,582,051 +$ 4,575,780 FY 1999 $135,366,156 +$ 4,784,105 FY 2000 $141,577,403 +$ 6,211,247 FY 2001 $147,577,403 +$ 6,000,000 FY 2002 $137,585,680 ($ 9,991,723) FY 2003 $138,585,680 +$ 1,000,000 FY 2004 $139,260,763 +$ 675,083 +$ 762,675 one time supplement $135,779,244 ($ 3,481,519) 2 ½% ATB cut FY 2005 $139,779,244 +$ 4,000,000 FY 2006 $149,579,244 +$ 9,800,000 FY 2007 $159,579,244 +$10,000,000 FY 2008 $171,962,414 +$12,383,170 FY 2009 $183,062,414 +$ 9,100,000 $180,316,478 ($ 2,745,936 )1 ½% ATB cut FY 2010 $158,678,501 ($21,637,977) $184,278,501 +$25,600,000 ARRA one time supp. $168,410,655 ($15,867,846) 10% ATB cut, Oct. 8, 2009 $174,354,235 +$ 5,943,580 ARRA MOE supplemental $175,179, ,012 Fac. Sal. added to SGA base FY 2011 $158,754,232 ($16,425,013) Community College Faculty Salaries. Appropriates $825,012 for distribution to community colleges to supplement faculty salaries. This is $91,668 or 10% less than the FY 2010 appropriation and reflects the 2010 ten percent SGA across the board cut carried into FY This is the fourth year for this appropriation. Future annual appropriations are uncertain although there is a tentative commitment by legislative leadership to provide additional funding in future years in an effort to increase community college faculty salaries to the national average. These funds are to be built into our base SGA appropriation for all future years. This was done in FY 2008 and FY 2010 but was not done for the FY 2009 appropriation due to the budget cuts experienced in the FY 2010 appropriation process. See Table 4 for a spreadsheet detailing the community college faculty funding history (page 43). 8

9 Community College Faculty Salary Funding History: FY 2008 $2,000,000 FY 2009 $1,500,000 Was not built into our base as required FY 2010 $ 916,680 ($ 91,668) 10% ATB cut, Oct. 8, 2009 $ 825,012 Net allocation FY 2011 $ 825,012 Limit on future reductions in funding. The bill provides that moneys appropriated by the General Assembly to the Department of Education for community college instructor salaries are not subject to a future uniform reduction in accordance with section 8.31, an across the board budget cut. This provision is effective upon enactment of the bill. The distribution of faculty salary funding will be determined by the Department of Education at a later date. See Iowa Code section 260C.18D for background on the faculty salary distribution formula. Regional Telecommunications Councils. Appropriates $1,065,180 to the Regional Telecommunications Councils to provide technical assistance for ICN network classrooms, planning and troubleshooting for local area networks, scheduling of video sites and other related support activities. This is a decrease of $43,684 compared to the net FY 2010 appropriation for a general reduction of 3.94%. The regional distribution is based on a per region amount plus a per site amount. The final distribution for FY 2011 will be determined by the Educational Telecommunications Council. Regional Telecommunications Councils Appropriations History: FY 1998 $1,750,000 FY 1999 $1,858,192 FY 2000 $1,858,192 FY 2001 $1,692,188 FY 2002 $1,522,393 FY 2003 $1,272,285 FY 2004 $1,272,285 FY 2005 $1,240,478 FY 2006 $1,240,478 FY 2007 $1,240,478 FY 2008 $1,364,525 FY 2009 $1,364,525 FY 2010 $1,232,071 $1,108,864 Reduced by 10% ATB cut FY 2011 $1,065,180 Vocational-Technical Tuition Grant Program. Appropriates $2,413,959 for the Vocational- Technical Tuition Grant Program. This is a decrease of $98,999 compared to the net FY

10 appropriation for a general reduction of 3.94%. The current funding level provides average grants of $800 to an estimated 3,200 students. The maximum grant is $1,200. Vocational-Technical Tuition Grant Program Appropriations History: Fiscal Funding Applicants Students Average Year Assisted Award FY 1998 $1,875,000 23,499 5,217 $ 416 FY 1999 $2,244,197 21,581 5,859 $ 383 FY 2000 $2,482,400 21,747 5,890 $ 421 FY 2001 $2,482,400 19,108 6,051 $ 410 FY 2002 $2,482,400 14,307 5,899 $ 403 FY 2003 $2,375,657 19,523 2,767 $ 859 FY 2004 $2,533,115 20,888 2,642 $ 899 FY 2005 $2,533,115 21,476 2,891 $ 876 FY 2006 $2,533,115 20,525 2,961 $ 850 FY 2007 $2,533,115 2,950 $ 850 FY 2008 $2,783,115 3,397 $ 817 FY 2009 $2,783,115 3,211 $ 836 FY 2010 $2,512,958 $2,261,662 Reduced by 10% ATB cut $2,512,958 Restored through supplemental appropriation FY 2011 $2,413,959 National Guard Educational Assistance Program. Appropriates $3,186,233 to the College Student Aid Commission for the National Guard Tuition Aid Program. This is an increase of $110,450 compared to the estimated net FY 2010 appropriation. The current funding level provided average awards of $3,322 to an estimated 1,269 students in FY Maximum award is limited to the cost of attendance at Regents universities. Student Work Study Program. Funding for this program was eliminated in FY This was a decrease of $980,075 compared to the estimated net FY 2009 appropriation. This standing program was eliminated in FY 2002 with a loss of $2,750,000 in funding. Private College Iowa Tuition Grant Program. Appropriates $44,013,448 to the Iowa Tuition Grant Program in support of students attending Iowa s private colleges and universities. Appropriates $4,650,487 to the Iowa Tuition Grant Program to for students attending for profit private institutions. All Iowa Opportunity Scholarship Program. Appropriates $2,403,949 for the All Iowa Opportunity Scholarship Program. Appropriates $594,383 for the All Opportunity Foster Care Grant Program. 10

11 State University Funding. Appropriates to the Regents $542,035,206 in state general aid for all university programs. Community College Efficiencies Initiatives and Funding Reduction Report. The Board of Directors of each community college shall submit to the Department of Education on or before October, 1, 2010, a report which provides details on any initiatives implemented by the community college to create greater efficiency within the community college during the fiscal year, and details on the methods by which the community college implemented budget reductions ordered by the Governor pursuant to executive order number 19 issued October 8, 2009 [the 10% across the board cut]. The Department shall compile and summarize the reports in a report to be submitted to the State Board of Education and the General Assembly on or before December 15, University of Northern Iowa appropriation: Science, technology, engineering, and mathematics (STEM) collaborative initiative. Appropriates $1,800,000 for purposes of establishing a science, technology, engineering, and mathematics (STEM) collaborative initiative: From the moneys appropriated in this lettered paragraph up to $300,000 shall be allocated for salaries, staffing, and institutional support. The remainder of the moneys appropriated in this lettered paragraph shall be expended only to support activities directly related to recruitment of kindergarten through grade 12 mathematics and science teachers and for ongoing mathematics and science programming for students enrolled in kindergarten through grade 12. The University of Northern Iowa shall work with the community colleges to develop STEM professional development programs for community college instructors and STEM curriculum development. Iowa Association of School Boards Issues. Requires each school board that pays membership dues to the Iowa association of school boards to annually report to the local community and to the department of education: The amount the board pays in membership dues to the Iowa association of school boards, The amount of any fees paid and revenue or dividend payments received for services the board receives from the association or from any of the association's affiliated for-profit entities, and The products or services the school district received inclusive with membership in the association. The bill requires the association to annually publish a listing of the total revenue it receives from each school district resulting from the payment of membership fees and the sale of products and services to the school district by the association or its affiliated for-profit entities. The association must submit to the general assembly copies of all reports the association provides to the U.S. department of education relating to federal grants and grant amounts that the association or its affiliated for-profit entities administer or distribute to school districts. The bill also makes the IASB subject to the Iowa open meetings and public records laws. These requirements pertain only to K-12 school boards and school corporations. Similar language pertaining to community colleges was amended into the bill by the House but then 11

12 removed by the Senate and replaced with the interim study committee to study the issue. At this time we are uncertain if the following requirements pertain to our community colleges or the Iowa Association of Community College Trustees who pays our dues to the IASB. The bill contains the following language. Underlining is new statutory language: Section , Code 2009, is amended to read as follows: Membership in association of school boards. 1. Boards of directors of school corporations may pay, out of funds available to them, reasonable annual dues to the Iowa association of school boards. Each board that pays membership dues to the Iowa association of school boards shall annually report to the local community and to the department of education the amount the board pays in annual dues to the Iowa association of school boards, the amount of any fees paid and revenue or dividend payments received for services the board receives from the association or from any of the association's affiliated for-profit entities, and the products or services the school district received inclusive with membership in the association. 2. The financial condition and transactions of the Iowa association of school boards shall be audited in the same manner as school corporations as provided in section In addition, annually the Iowa association of school boards shall publish a listing of the school districts and the annual dues paid by each, the total revenue the association receives from each school district resulting from the payment of membership fees and the sale of products and services to the school district by the association or its affiliated for-profit entities, and shall publish an accounting of all moneys expended for expenses incurred by and salaries paid to legislative representatives and lobbyists of the association. In addition, the association shall submit to the general assembly copies of all reports the association provides to the United States department of education relating to federal grants and grant amounts that the association or its affiliated for-profit entities administer or distribute to school districts. The Iowa association of school boards is subject to chapters 21 and 22 relating to open meetings and public records. 3. Membership in such an Iowa association of school boards shall be limited to those duly elected members of the boards of directors of local school corporations. Section A, Code 2009, is amended to read as follows: A Membership in other organizations -- reporting requirements. 1. Duly elected members of boards of directors and designated administrators of school corporations may join, including the payment of dues, and participate in local, regional, and national organizations which directly relate to the functions of the board of directors. 2. Each board that pays membership dues to an organization in accordance with this section shall annually report to the local community and to the department of education the amount the board pays in annual dues to the organization, the amount of any fees paid and revenue or dividend payments received for services the board receives from the organization, and the products or services the school district received inclusive with membership in the organization. If the organization administers federal education grants on behalf of school districts or distributes federal education grant funds to school districts, the organization shall 12

13 submit to the general assembly copies of all reports the organization provides to the States department of education, on the date on which each such report is provided to the United States department of education, relating to federal grants and grant amounts that the organization administers for or distributes to school districts. The governing board of the organization is subject to chapters 21 and 22 relating to open meetings and public records. Non-profit organizations Open meetings and open records interim study committee. The legislative council is requested to establish an interim study committee to study the inclusion under the open meetings and open records laws of nonprofit organizations that are supported in whole or in part with public funds or revenues derived from public fees, that were established by, or are operated by, governing boards whose memberships were or are substantially comprised of state or local elected officials or appointees of governmental bodies. The interim study committee shall report its findings and recommendations to the general assembly not later than December 15, Economic Development Appropriations Bill: House File 2522 Workforce Development Fund. Appropriates $4,000,000 from the Workforce Development Fund Account to the Iowa Department of Economic Development s (DED) Workforce Development Fund program. This is level funding with FY By statute, $3,000,000 is distributed by formula to the community colleges for job training projects authorized under Chapter 260F and $1,000,000 is distributed to those community colleges with eligible apprenticeship programs also authorized under Chapter 260F and based on each community college s proportional share of eligible contact hours from the previous year. That distribution will be determined after the FY 2010 numbers are certified. The bill allows the DED to use up to $400,000 of these funds for the administration and four FTE positions in support of these programs however they will draw their administrative dollars from their 260E one percent funds instead. This transfer of funds is authorized in the bill. From the $3,000, F allocation, $300,000 will be taken and placed in the community college business consortium training fund leaving $2,700,000 for distribution based on each community college s proportional share of SGA in FY 2010 as provided for by administrative rule. These are the official numbers as determined by the Department of Education. See Table 5 for a detailed spreadsheet (page 44). FY 2011 Allocation Northeast Iowa $ 134,774 North Iowa Area $ 144,782 Iowa Lakes $ 133,416 Northwest $ 65,486 Iowa Central $ 146,842 Iowa Valley $ 127,506 Hawkeye $ 189,426 Eastern Iowa $ 235,456 Kirkwood $ 407,709 13

14 Des Moines Area $ 408,041 Western Iowa Tech $ 154,683 Iowa Western $ 157,793 Southwestern $ 66,446 Indian Hills $ 208,373 Southeastern $ 119,269 Total $2,700,000 Workforce Development Fund Appropriations History: FY 1998 $4,250,000 FY 1999 $6,850,000 FY 2000 $8,800,000 FY 2001 $8,000,000 Cap reduced from $10.0 to $8.0 million FY 2002 $4,000,000 Cap reduced from $8.0 to $4.0 million FY 2003 $4,000,000 FY 2004 $4,000,000 FY 2005 $4,000,000 FY 2006 $4,000,000 FY 2007 $4,000,000 FY 2008 $4,000,000 FY 2009 $4,000,000 FY 2010 $4,000,000 FY 2011 $4,000,000 Small Business Development Centers (ISU Economic Development Programs). Appropriates $2,575,983 to the economic development programs at Iowa State University which represents an increase of $100,000 compared to the estimated net FY The bill requires an allocation of $994,929 for the Small Business Development Centers, many of which are located at our states Community Colleges. This is an increase of $116,318 over the net FY 2010 level of funding. An increase of $100,000 is intended to increase assistance to small businesses for providing one-on-one business planning and marketing counseling. The Grow Iowa Values Fund also appropriates $350,000 in supplemental funding for the SBDC s in each of the next five years. That allocation was reduced to $266,000 for FY Small Business Development Centers Appropriations History: General Fund FY 1998 $1,222,880 FY 1999 $1,235,880 FY 2000 $1,248,329 FY 2001 $1,211,869 FY 2002 $1,147,192 FY 2003 $ 459,831 GIVF 14

15 FY 2004 $ 460,000 FY 2005 $ 550,000 FY 2006 $ 550,000 $350,000 FY 2007 $ 650,000 $350,000 FY 2008 $ 900,000 $350,000 FY 2009 $1,060,000 $350,000 FY 2010 $ 976,234 $315,000 FY 2011 $ 994,929 $266,000 Workforce Development Field Offices. Appropriates $11,343,047 from the general fund to support the state s system of rural and satellite workforce development center field offices, the New Iowans Centers and the IWD state board. This is an increase of $547,573 or 5.1% compared to the estimated net FY 2010 appropriation. Appropriates $6,500,000 from the Unemployment Compensation Reserve Fund to the Department for Field Offices. Appropriates $662,427 from the Special Employment Security Contingency Fund for the Workforce Development Field Offices. Specifies that $11,110,137 of the General Fund appropriation for Workforce Development Operations is to be used for the operation of Field Offices. The result is total funding for the Field Offices from all funding sources of $18,272,564. This is an increase of $776,348 compared to the estimated net FY Prohibits the IWD from reducing the number of Field Offices below the number in operation on January 1, There are currently 55 Field Offices, including one-stop offices and State offices. New Iowans Centers. The Department of Workforce Development (IWD) is directed to maintain New Iowans Centers that offer one-stop services to deal with the multiple issues related to immigration and employment. The centers are designed to support workers, businesses, and communities with information, referrals, job placement assistance, translation, language training, and resettlement, as well as technical and legal assistance on such issues as forms and documentation. Through the coordination of local, state, and federal service providers, and through the development of partnerships with public, private and nonprofit entities with established records of international service, these centers shall seek to provide a seamless service delivery system for new Iowans. Offender Reentry Program. Appropriates $322,261 to support an initiative begun in FY 2009 that will provide for the development and administration of an offender reentry program to provide offenders with employment skills. IWD will partner with the Department of Corrections to provide staff within the correctional facilities to improve offender s abilities to find and retain productive employment. This is level funding with FY Workforce Training and Economic Development Fund (260C.18A) See Senate File 2389 and Senate File 2385 Grow Iowa Values Fund (GIVF). A standing appropriation of $7.0 million is deposited annually from the $50.0 million GIVF established in 2005, into the Community College 15

16 Workforce Training and Economic Development Fund accounts established under Section 260C.18A. FY 2011 will be the sixth year of this standing appropriation. The GIVF appropriation is now being paid from the Rebuild Iowa Infrastructure Fund and not the General Fund. The GIVF appropriation for FY 2011 was reduced by 24% to $38,000,000 reducing the community college allocation to $5,320,000 for FY See Senate File 2389 (page 18). Iowa Power Fund (IPF). A standing appropriation of $2,500,000 is deposited annually from the $25.0 million IPF established in 2007, to the Workforce Training and Economic Development Fund accounts established under Section 260C.18A for a period of four years. FY 2011 will be the fourth and last year of that standing appropriation. The IPF appropriation was reduced to $21,600,000 for FY 2011 but Section of the Iowa Code requires that the full $2,500,000 be deposited into the Workforce Training and Economic Development Fund in FY See House File 2531 (page 22). Rebuild Iowa Infrastructure Fund (RIIF). Appropriates $2,000,000 from the Rebuild Iowa Infrastructure Fund for deposit into the Community College Workforce Training & Economic Development Fund created for each Community College in Section 260C.18A, notwithstanding Section 8.57, subsection 6, paragraph c, which eliminates the need for the funding to be used only for vertical infrastructure purposes. This is the fourth year of this annual appropriation from the RIIF and level funding compared to FY See Senate File 2389 (page 18). These three appropriations result in a total FY 2011 appropriation of $9,820,000, a reduction in funding of $980,000 from the FY 2010 appropriation and will be distributed as follows using the funding distribution formula as provided for in Section 260C.18A. See Table 6 for detailed spreadsheet (page 45). FY 2010 FY 2011 Allocation Allocation Northeast Iowa $ 496,239 $ 455,566 North Iowa Area $ 440,312 $ 413,527 Iowa Lakes $ 392,042 $ 367,491 Northwest $ 199,535 $ 184,668 Iowa Central $ 678,794 $ 641,181 Iowa Valley $ 390,257 $ 363,278 Hawkeye $ 652,007 $ 599,031 Eastern Iowa $ 848,005 $ 766,889 Kirkwood $2,074,523 $1,790,466 Des Moines Area $2,215,230 $2,005,798 Western Iowa Tech $ 541,933 $ 490,737 Iowa Western $ 644,469 $ 593,714 Southwestern $ 203,461 $ 191,481 Indian Hills $ 623,284 $ 589,049 Southeastern $ 399,909 $ 367,125 Total $10,800,000 $9,820,000 16

17 Workforce Training and Economic Development Fund Appropriations History: Grow Iowa Power Fund Rebuild Iowa Total Values Fund Infrastructure Fund FY 2004 $ 3,758,065 FY 2005 $ 3,106,160 FY 2006 $ 7,000,000 FY 2007 $ 7,000,000 FY 2008 $ 7,000,000 $ 2,500,000 $ 2,000,000 $11,500,000 FY 2009 $ 7,000,000 $ 2,500,000 $ 2,000,000 $11,500,000 -$ 1,400,000 20% flood recovery cut $10,100,000 FY 2010 $ 6,300,000 $ 2,500,000 $ 2,000,000 $10,800,000 FY 2011 $ 5,320,000 $ 2,500,000 $ 2,000,000 $ 9,820,000 Justice Systems Appropriations Bill: Senate File 2378 Corrections Education. Appropriates $1,558,109 for educational programs for inmates at state penal institutions. This is a $194,402 increase over the net FY 2010 appropriation of $1,363,707. This appropriation is distributed through five community colleges serving those institutions. It specifies that it is the intent of the General Assembly that these funds be used only for inmate education. It requires the Department of Corrections (DOC) to consult with community colleges located within the area of the prisons regarding how to maintain the high school completion, high school equivalency diploma, adult literacy, and adult basic education programs at the institutions. It requires the DOC to establish guidelines and procedures to prioritize admission to educational and vocational programs to facilitate inmate s successful release from the correctional facility. It permits the DOC to transfer funds from Iowa Prison Industries for educational programs for inmates. Requires the DOC to transfer at least $300,000 from Canteen Funds to the Corrections Education Program. Corrections Education Appropriations History: FY 1998 $2,950,600 FY 1999 $2,950,600 FY 2000 $3,294,775 FY 2001 $3,294,775 FY 2002 $3,075,014 FY 2003 $ 100,000 Program funding eliminated FY 2004 $1,000,000 Program funding partially restored FY 2005 $1,008,358 FY 2006 $1,008,358 FY 2007 $1,070,358 FY 2008 $1,570,358 17

18 FY 2009 $1,870,358 Includes Canteen Fund funding FY 2010 $1,858,109 Includes Canteen Fund funding $1,663,707 Reflects ATB cut and includes canteen funding FY 2011 $1,858,109 Includes Canteen Fund funding Infrastructure Appropriations Bill: Senate File 2389 Workforce Training and Economic Development Fund - Rebuild Iowa Infrastructure Fund (RIIF). Appropriates $2,000,000 from the RIIF for deposit into the Community College Workforce Training & Economic Development Fund accounts created for each community college in Section 260C.18A, notwithstanding Section 8.57, subsection 6, paragraph c, which eliminates the need for the funding to be used only for vertical infrastructure purposes. This is the fourth year of this annual appropriation from the RIIF and level funding compared to FY Grow Iowa Values Fund - Rebuild Iowa Infrastructure Fund. Appropriates $38,000,000 from the RIIF for deposit into the GIVF. This is a reduction of $12,000,000 or 24% from the annual standing appropriation. The bill specifies that the Community College Workforce Training & Economic Development Funds are to receive an allocation of $5,320,000 from this appropriation. This is a reduction of $980,000 or 15.6% from the FY 2010 allocation of $6,300,000. Accelerated Career Education (ACE) Infrastructure Program. Appropriates $5,500,000 from the Revenue Bonds Capitals II Funds (RBC2) Appropriations for infrastructure improvements at community colleges associated with implementing ACE Programs authorized under Chapter 260G. This is level funding compared to FY There is no distribution language in the bill but it is assumed that the funding will be distributed equally to all community colleges as it has been in prior years. Each community college will be allocated $366,667. Historically, any unencumbered or unobligated funds, remaining after April 1, 2006, will be made available for use by other community colleges. Accelerated Career Education (ACE) Program Infrastructure Appropriations History: FY 2000 $7,500,000 FY 2001 $5,300,000 FY 2002 $2,500,000 FY 2003 $2,500,000 FY 2004 $5,500,000 FY 2005 $5,500,000 FY 2006 $5,500,000 FY 2007 $5,500,000 FY 2008 $5,500,000 FY 2009 $5,500,000 FY 2010 $5,500,000 FY 2011 $5,500,000 18

19 Community College Maintenance Infrastructure Funding. Appropriates $2.0 million from the Revenue Bonds Capitals II Funds (RBC2) Appropriations for major renovation and major repair needs, including health, life, and fire safety needs, and for compliance with the federal Americans with Disabilities Act, for state buildings and facilities under the purview of the state s community colleges. There is no distribution language in the bill but it is assumed that the funding will be allocated to the community colleges based upon the SGA distribution formula established in Section 260C.18C as it was in the previous year s appropriations. Community colleges received $2.0 million each year for fiscal years FY 2007 through FY 2009 from several funds for this purpose. No funding was received in FY The FY 2011 appropriation will be distributed as follows using the SGA funding distribution formula as provided for in the previous year s appropriation language. These are the official numbers as determined by the Department of Education. See Table 7 for a detailed spreadsheet (page 46). FY 2011 Allocation Northeast Iowa $ 99,832 North Iowa Area $ 107,246 Iowa Lakes $ 98,826 Northwest $ 48,508 Iowa Central $ 108,772 Iowa Valley $ 94,449 Hawkeye $ 140,316 Eastern Iowa $ 174,412 Kirkwood $ 302,007 Des Moines Area $ 302,253 Western Iowa Tech $ 114,580 Iowa Western $ 116,883 Southwestern $ 49,219 Indian Hills $ 154,350 Southeastern $ 88,347 Total $2,000,000 Chamber of Commerce Funding. At the end of the legislative session, Kirkwood and NIACC were approached by Senate Legislative leaders asking for their help in their effort to secure infrastructure funding for new Chamber of Commerce facilities in Cedar Rapids and Mason City that were affected by the 2008 floods. Both Chambers are building new Chamber of Commerce Centers. Because of concerns from some House members about approving funding for Chamber of Commerce buildings in these two flood recovery areas, Kirkwood and NIACC agreed to the request of Senate Democrats to have the appropriations made to their two colleges and to then 19

20 pass the funding through for use soley on these two Chamber projects. The appropriations will be targeted for small business and incubator activities that will be provided for in the new facilities. The appropriations are as follows: To North Iowa Area Community College for the construction of a small business center for economic development: $ 1,500,000 To Kirkwood Community College for the construction of a small business center for economic development: $ 1,200,000 Minority and Female Owned Businesses and Bond Issuance Services. The following new section is added to the Iowa Code: Section Minority-owned and female-owned businesses--bond issuance services. 1. The state, board of regents institutions, counties, townships, school districts, community colleges, cities, and other public entities, and every person acting as contracting agent for any such entity, shall, when issuing bonds or other obligations, make a good-faith effort to utilize minority-owned and female-owned businesses for attorneys, accountants, financial advisors, banks, underwriters, insurers, and other occupations necessary to carry out the issuance of bonds or other obligations by the entity. 2. For purposes of this section: a. "Female-owned business" means a business that is fifty-one percent or more owned, operated, and actively managed by one or more women. b. "Minority-owned business" means a business that is fifty-one percent or more owned, operated, and actively managed by one or more minority persons. Supplemental Appropriations Bill: Senate File 2366 Effective upon Enactment Setoff Procedures, Department of Administrative Services. Requires the community colleges to prescribe to setoff procedures to permit a person to contest the amount of liability to a community college. Section 8A.504, subsection 2, Code 2009, is amended by adding the following new paragraph: NEW PARAGRAPH. k. If the alleged liability is owing and payable to a community college and setoff pursuant to this section is sought, both of the following shall apply: (1) In addition to satisfying other applicable setoff procedures established under this subsection, the community college shall prescribe procedures to permit a person to contest the amount of the person's liability to the community college. Such procedures shall be consistent with and ensure the protection of the person's right of due process under Iowa law. (2) The collection entity shall, except for the procedures prescribed pursuant to subparagraph (1), prescribe any other applicable procedures concerning setoff as provided in this subsection. Supplemental Appropriation for Community College State General Aid for FY FY 2010 SGA funding of $5,943,581 was restored to community colleges, allocated proportionately 20

21 to the FY 2010 funding received by each community college. This increases the FY 2010 funding for community colleges to $149,579,244 when combined with the community colleges faculty salaries appropriation. This amount equals the FY 2006 funding level for community colleges and is intended to meet maintenance of effort requirements for the federal American Recovery and Reinvestment Act (ARRA) funding as explained below: Title XIV State Fiscal Stabilization Fund (page165) Section State Applications (page 168) (d) Assurances An application under subsection (b) shall include the following assurances: (1) Maintenance of Effort (B) Higher Education The State will, in each of fiscal years 2009, 2010, and 2011, maintain State support for public institutions of higher education (not including support for capital projects or for research or development or tuition and fees paid by students) at least at the level of such support in fiscal year The effect of this language in the federal appropriations bill for the federal stimulus funding the state is receiving prohibits the state from reducing SGA below the FY 2006 level. The mid-year 10% across the board cut resulted in that outcome. The SGA appropriation in FY 2006 was $149,579,244. The FY 2010 SGA base after the 10% across the board cut is $142,810,651. This is a difference of $6,768,593 which includes faculty salary funding that was not appropriated until after FY 2006 and is not reflected in the amount restored. FY 2010 SGA Supplemental Appropriation Northeast Iowa $ 295,830 North Iowa Area $ 319,018 Iowa Lakes $ 293,705 Northwest $ 144,267 Iowa Central $ 323,678 Iowa Valley $ 280,854 Hawkeye $ 416,757 Eastern Iowa $ 518,546 Kirkwood $ 897,715 Des Moines Area $ 897,310 Western Iowa Tech $ 341,002 Iowa Western $ 347,161 Southwestern $ 146,274 Indian Hills $ 458,905 Southeastern $ 262,558 Total $ 5,943,580 21

22 Regent Universities. Restores $30.4 million in funding to the three Regents universities to reach their FY 2006 level. Vocational Technical Tuition Grant Program. Restores $251,296 in funding to the community college Vocational Technical Tuition Grant Program effective December 14, Iowa National Guard Educational Assistance Program. Restores $241,120 in funding to the National Guard Educational Assistance Program effective December 14, Iowa All Opportunity Scholarship Program. Restores $250,254 in funding to the Iowa All Opportunity Scholarship Program effective December 14, Reduction of the Grow Iowa Values Fund. Reduces the $45.0 million GIVF appropriation for FY 2010 was reduced by $17,500,000 in unexpended funds and carried over to FY Reduces the FY 2010 allocation to the DED by $17,500,000 from $28,800,000 to 11,300,000. The adjusted allocation changes the amount for the DED to be used for financial assistance programs. Allocations to the community college Workforce Training and Economic Development Fund were not impacted by this reduction. Standings Bill: House File 2531 Iowa Power Fund (IPF). Appropriates $19,600,000 for FY An additional $2,000,000 was appropriated through an amendment for a total appropriation of $21,600,000. Of this amount, $2,500,000 is invested in the community college Workforce Training and Economic Development Fund. This is the last year of this standing appropriation. Apprenticeship Training Programs. Iowa Code Section 260C.44 is amended to refer to the Office of Apprenticeship as opposed to the Bureau of Apprenticeship and Training. Health and Human Services Appropriations Bill: House File 2526 Kirkwood Community College and Des Moines Area Community College have been working with Iowa Workforce Development and the Department of Human Services for the past three years to develop a pilot program utilizing the match program in the Federal Supplemental Nutrition Assistance Program Employment and Training Program. Both community colleges will expend their own discretionary funding into the pilot programs. The language below is needed to amend the FSET plan that is submitted to the Department of Agriculture. If the pilots prove successful, the program will be expanded to all community colleges on a voluntary statewide basis. For the food stamp employment and training program: $68,059 (1) The department shall amend the food stamp employment and training state plan in order to maximize to the fullest extent permitted by federal law the use of the match provisions for the claiming of allowable federal matching funds from the United States 22