Funding for Secondary Career Technical Education CTE David

Funding for Secondary Career & Technical Education (CTE) David Horseman Associate Commissioner Kentucky Department of Education Office of Career & Technical Education & Student Transition

State CTE Funding for Secondary Students ATCs SEEK $4, 136, 796. 00 (20% to districts that own building) LAVECs $0 KDE Central Office $0 $17, 352, 104. 00 (Personnel & Operating) General Fund $20, 211, 300. 00 (Personnel) $11, 843, 500. 00 (Grants) $3, 300, 000. 00 (Operating) Agency Funds TOTALS KCTCS $1, 393, 000. 00 (for serving secondary students where no ATC/CTC exists) $3, 298, 000. 00 (Central Office Personnel) $22, 881, 900. 00 TOTAL SEEK $39, 219, 700. 00 TOTAL GENERAL FUND $106, 500. 00 (Central Office / ATC Support) $53, 669 (Operating) $53, 669 TOTAL AGENCY FUNDS $45, 053, 869. 00 $11, 843, 500. 00 $3, 404, 500. 00 $1, 393, 000. 00 $61, 694, 869. 00 2

Distribution of State CTE Funds KDE 6% Schools 94% 3

State Funding: Area Technology Centers (ATCs) This funding supports the 53 state-operated technical centers governed by the KY Department of Education 4

ATCs SEEK $4, 136, 796. 00 (20% to districts that own building) LAVECs $0 KDE Central Office $0 $17, 352, 104. 00 (Personnel & Operating) General Fund $20, 211, 300. 00 (Personnel) $11, 843, 500. 00 (Grants) $3, 300, 000. 00 (Operating) Agency Funds TOTALS KCTCS $1, 393, 000. 00 (for serving secondary students where no ATC/CTC exists) $3, 298, 000. 00 (Central Office Personnel) $22, 881, 900. 00 TOTAL SEEK $39, 219, 700. 00 TOTAL GENERAL FUND $106, 500. 00 (Central Office / ATC Support) $53, 669 (Operating) $53, 669 TOTAL AGENCY FUNDS $45, 053, 869. 00 $11, 843, 500. 00 $3, 404, 500. 00 $1, 393, 000. 00 $61, 694, 869. 00 5

ATC Statewide Overview ü Total Budget (minus 20% SEEK) - $40, 917, 060 ü Current FTE Average Value - $5, 067. 95 ü Current Total Weighted FTEs - 8073. 69 ü Current Total Unweighted FTEs – 6139. 04 6

Comparison of ATCs with Multiple vs. Single District Feeders ATC 1 (Multi Feeder District Center) ATC 2 (Single Feeder District Center) *42 ATCs* *11 ATCs* Total Budget - $800, 396 Total Budget - $780, 117 Current Total Weighted FTEs – 193. 88 Current Total Weighted FTEs – 213. 97 Current Total Unweighted FTEs – 143. 25 Current Total Unweighted FTEs – 171. 62 Current Pathways – 11 Current Pathways – 14 Staff Count – 9 Teachers, 1 Principal, 1 Custodian, 1 Administrative Secretary Staff Count – 11 Teachers, 1 Principal, 1 Custodian, 1 Administrative Secretary Unduplicated Student Count - 452 Unduplicated Student Count - 634 7

Statutes Regarding ATC Expenditures KRS 156. 802 - Office of Career and Technical Education -- Kentucky Board of Education. } There is no specific statute or regulation that specifies how ATCs receive money. Only provision (below) is very broad. ● 156. 802(3) The Department of Education shall have the responsibility for all administrative functions of the state in relation to the management, control, and operation of state operated secondary area vocational education and technology centers… KRS 156. 842 - Office of Career and Technical Education to manage state-operated secondary area vocational education and technology centers. } This statute gives similar broad authority to the Office of Career and Technical Education, with no expenditure formula. ● The Office of Career and Technical Education shall have the management and control of state -operated secondary area vocational education and technology centers, and all programs and services operated in these centers. 8

Current Uses of ATC Funding Utilities 6% Operations 2% Personnel 92% 9

KRS 156. 844 - Local board's petition to commissioner of education seeking power to manage and control state-operated secondary vocational education and technology center -- Issues related to transfer of employees. } Details the process for a local board of education to assume control of a state-operated secondary vocational education and technology center (ATC), through request and agreement with the Commissioner of Education. It also details issues related to employees transferring employment to a local district. } Following this transfer, the local board would receive funds as a locally-operated center pursuant to KRS 157. 069. 10

Sample Scenario: ATC Transitioning to Local District ATC Snapshot Current Data: State Governance Projected Data After Transition to Local District (based on current statutory process) Budget: $722, 292 Budget: $199, 640 FTEs: 141 FTE Value: $5, 134 FTE Value: $1, 426 Current LAVEC value of $1, 451 drops to $1, 426 for all LAVEC-funded schools. 11

Estill County – Open Request for “ATC” Status & Funding Programs: 6 Estimated Budget: ~$610, 000 Estimated FTEs: ~100 Estimated FTE Value: ~$6, 100 v New facility currently under construction. 12

State Funding: Local Area Vocational Education Centers (LAVECs) This funding supports 42 locally-operated (district-governed) schools. 13

ATCs SEEK $4, 136, 796. 00 (20% to districts that own building) LAVECs $0 KDE Central Office $0 $17, 352, 104. 00 (Personnel & Operating) General Fund $20, 211, 300. 00 (Personnel) $11, 843, 500. 00 (Grants) $3, 300, 000. 00 (Operating) Agency Funds TOTALS KCTCS $1, 393, 000. 00 (for serving secondary students where no ATC/CTC exists) $3, 298, 000. 00 (Central Office Personnel) $22, 881, 900. 00 TOTAL SEEK $39, 219, 700. 00 TOTAL GENERAL FUND $106, 500. 00 (Central Office / ATC Support) $53, 669 (Operating) $53, 669 TOTAL AGENCY FUNDS $45, 053, 869. 00 $11, 843, 500. 00 $3, 404, 500. 00 $1, 393, 000. 00 $61, 694, 869. 00 14

Statewide LAVEC Overview ü Total Budget - $11, 843, 500 ü Current FTE Value - $1, 451. 00 ü Current Total Weighted FTEs – 8164. 56 ü Current Total Unweighted FTEs – 6589. 77 15

Final 16 -17 Final 17 -18 Final 18 -19 ct ct ct st ri Di st ri Di ct ct st ri Di ct ct ct st ri Di st ri Di ct ct st ri Di 9 8 7 6 5 4 3 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 ct ct ct st ri Di ct ct st ri Di 1 t 2 ct st ri Di ct st ric Di st ri Di LAVEC District Funding: 2016 -17 to 2018 -19 $3, 000. 00 $2, 500, 000. 00 $2, 000. 00 $1, 500, 000. 00 $1, 000. 00 $500, 000. 00 $0. 00 16

KRS 157. 069 Distribution of general funds for locally operated secondary area technology centers and vocational departments } All general funds designated for locally operated secondary area centers and vocational departments, which have been receiving state supplemental funds prior to June 21, 2001, are to be distributed pursuant to a weighted formula set forth in 705 KAR 2: 140. } This statute indicates that LAVECs established after June 21, 2001 are not eligible for funding. 17

Current budget bill language: } Locally Operated Vocational Programs: Notwithstanding KRS 157. 069, the supplemental funding distribution shall include Category II and III programs in districts established after June 21, 2001, with state assistance, if approved by the Commissioner of Education. (Pg. 40, ln 19. ) } This language indicates that LAVECs established after June 21, 2001 are eligible for funding, if approved by the Commissioner. *This language has been included in the budget bill since at least 2006. 18

LAVEC Funding 2004 -2018 14000000 12000000 $11, 857, 700. 00 $9, 985, 400. 00 $11, 045, 395. 00 10000000 8000000 $8, 986, 890. 00 $12, 393, 550. 00 $11, 843, 500. 00 $10, 000, 987. 25 6000000 4000000 2000000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year Dollars LAVEC 19

LAVEC Funding: 2004 -2018 Year LAVEC Funds 2004 2005 2006 $9, 985, 400. 00 $8, 986, 890. 00 $10, 000, 987. 25 2007 2008 2009 2010 $11, 045, 395. 00 $11, 857, 700. 00 $11, 757, 600. 00 2011 $11, 971, 200. 00 2012 2013 2014 2015 2016 2017 2018 $12, 393, 550. 00 $11, 843, 500. 00 CTC Changes Bath, Jessamine, Johnson and Oldham Added Oldham took over ATC Oldham Dropped Scott and Muhlenberg Added Muhlenberg took over ATC Grant and Kenton Added Kenton took over ATC 20

Statute vs. Regulation Formula KRS 157. 069 Distribution of general funds for locally operated secondary area technology centers and vocational departments. } (3) For calculation purposes and after categorizing the programs as described in subsection (2) of this section, a weight shall be applied as a percentage of the base guarantee per pupil in average daily attendance as defined by KRS 157. 320 under the Support Education Excellence in Kentucky Program, which shall be applied to full-time equivalent students in Categories II and III. Category I programs shall receive no weight. The full-time equivalent students shall be calculated on the basis of the total program enrollment divided by the length of the class period divided by six (6). 705 KAR 2: 140. Equalization of funding for locally-operated area vocational centers and vocational departments. } Section 3. The full-time equivalent (FTE) student enrollment shall equal the total number of students enrolled in technical skill and high-cost technical skill programs statewide, multiplied by the number of hours students are enrolled (divided by two (2) if semester courses) divided by six (6) (hours per instructional day). The value of the weight shall equal the total funding allocation from the General Assembly for the fiscal year divided by the weighted total FTE for technical skill and high-cost technical programs, with technical skill programs weighted one (1) and high-cost technical skill programs weighted one and one-half (1. 5). } Section 4. A school district with an approved locally-operated vocational center or department shall receive a funding allocation equal to the total of the number of FTE students in technical skill programs multiplied by the value of the weight for these programs, plus the total of the number of FTE students in high-cost technical skill programs, multiplied by the value of the weight for these programs. 21

LAVEC Statute vs. Regulation Formula } KRS 157. 069 (Number of Students/Time in Pathway)/FTE Hours (6) ● 100 Students/2 Hours = 50/6 = 8. 3 FTE ● 100 Students/1 Hour = 100/6 = 16. 7 FTE ● } 705 KAR 2: 140 (Number of Students*Time in Pathway)/FTE Hours (6) ● 100 * 2 = 200/6 = 33. 3 FTE ● 100 * 1 = 100/6 = 16. 7 FTE ● v KDE does NOT distribute funds based on the formula. statutory 22

LAVEC Per Pupil Funding Trend } 2016 -2017 - $1, 553. 00 } 2017 -2018 - $1, 475. 00 } 2018 -2019 - $1, 451. 00 Unfunded High-Demand or Top Support Pathways Within LAVEC-Funded Schools } 2018 -2019 ~ 60 Estimated Funding Value = $1, 321, 426. 00 *based on current LAVEC funding formula and per FTE value* 23

Unfunded LAVEC Schools / Requests } } } } Hardin County Hopkins County Laurel County Oldham County Owensboro Independent Spencer County *Taylor County **Ignite Institute Open Estimated Funding Value = $1, 337, 536. 00 Based on current LAVEC funding formula and per FTE value *Does not include Taylor County because data is not yet available. **While Ignite Institute does not yet have data available to calculate a projected budget, they will receive partial LAVEC funds in FY 20 per HB 444 (2019). 24

Local LAVEC Perspectives… Dexter Knight, Principal Jessamine Career & Technology Center Nicholasville, KY David Meinschein, Assistant Superintendent Ballard County Career & Technology Center Wickliffe, KY 25

Jessamine Career & Tech Center (JCTC) Opened August 2006 50, 000 square feet Operated by the Jessamine County Board of Education

JCTC serves East &West Jessamine High Schools, along with the Providence School

By the numbers: Enrollment 2006 -07 Enrollment 2018 -19 700 2, 866 6 10 duplicated students Program Areas 12 Teachers duplicated students Program Areas 60 pathways 35 Teachers

Funding for JCTC: 2005 -2006 LAVEC 2019 -2020 LAVEC $618, 197 (cut $80, 000) Salary and Benefits (Certified & Classified Staff) $410, 882 $300, 000 (66% of LAVEC budget) Salary and Benefits (Certified) $48, 724 $410, 882 -$48, 724 X 100% = 743% $48724 Equates to 743% increase in funds utilized for staffing

Jessamine County Board of Education FTE (Full Time Equivalent) Teacher Funding Jessamine County Board of Education pays for the full time equivalent for 19. 3 teachers from the total # of teachers JCTC has 28. 38 FTE for 35 teachers (full and part-time) 19. 3 teacher value (Average Jessamine County salary) X $48, 698. 00* = $939, 871. 00 *WKYT Fact check 8/14/19

Jessamine County School District Locally-Operated Center Expenses Consumables I. e. Paper, Restroom, Teaching and Cleaning supplies, Custodial Salaries for JCTC $138, 876 Other Custodial Costs: Uniforms: $2433. 00 $22, 745. 00 Contract Services Lawn Care, Pest, Sanitation, Security, Snow Removal $16, 241 Equipment, Building Repair, Use and Maintenance $13, 811

Jessamine County School District Locally Operated Center Expenses Utilities TOTAL AUXILIARY EXPENSES Electricity- $71, 000 (paid for by JCBOE) Natural Gas-$1, 288. 00 Water and Sewer $3, 481. 00 $269, 857. 00

Funds transferred to Fayette County LAVEC centers 2018 -2019 Jessamine County Schools have traditionally sent students to Fayette County locally-operated centers for programs not offered in Jessamine County. Historically Health Science, Auto Body, Diesel, Welding, etc. JCS have increased program offerings (most of the programs once in Fayette are now offered in Jessamine Co. ) Funds sent to Southside and Eastside Technical Center for 19 -20 School Year (Board and Perkins funding) 56 students @ $298. 58 $16, 720

Additional Funding Available FEDERAL PERKINS DOLLARS 2019 -2020 Allocation $109, 799 Funding is primarily used to enhance programs Professional Development Travel

Income LAVEC $618, 197. 00 Jessamine County FTE $939, 871. 00 Auxiliary Service $269, 857. 00 (JCBOE) Total Income (all sources): $1, 827, 925. 00 Expenses Jessamine Co. Teacher Salaries $1, 350, 753. 00 Custodial, Utilities, and Consumables $269, 857. 00 Total expenses: $1, 620, 610. 00

Summary In order to provide HIGH DEMAND, HIGH WAGE Career and Technical Education programs to ALL Kentucky students: Funding models for both Locally and State Operated CTE Centers needs to be reviewed for equity and access to high school students across the Commonwealth. With the increase from 32 Locally Operated Centers to over 42 Centers in the last decade funding models there will continue to be a decrease in funding to Local districts looking to expand programs. Jessamine County plans to add pathways in Advanced Manufacturing and Construction over the next two years. Our district has chosen to invest over 28 million dollars of NEW Construction in existing and NEW Programs and pathways.

BALLARD COUNTY KY Dr. David Meinschein Assistant Superintendent Dr. Casey Allen Superintendent

BETWEEN 2011 AND 2016 THE TWO LARGEST EMPLOYERS CLOSED JULY 2016 – 9. 2% UNEMPLOYMENT

• All BMHS students attend • 400 students total at BMHS • Over 80% Transition Ready 18 -19

Ballard County LAVEC Funding FY 11 -FY 19 250, 000 200, 000 150, 000 100, 000 50, 000 0 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

Local Effort Over 1. 5 million in FY 2018 for facilities improvement $307, 806. 46 in salaries FY 2019

ATCs SEEK $4, 136, 796. 00 (20% to districts that own building) LAVECs $0 KDE Central Office $0 $17, 352, 104. 00 (Personnel & Operating) General Fund $20, 211, 300. 00 (Personnel) $11, 843, 500. 00 (Grants) $3, 300, 000. 00 (Operating) Agency Funds TOTALS KCTCS $1, 393, 000. 00 (for serving secondary students where no ATC/CTC exists) $3, 298, 000. 00 (Central Office Personnel) $22, 881, 900. 00 TOTAL SEEK $39, 219, 700. 00 TOTAL GENERAL FUND $106, 500. 00 (Central Office / ATC Support) $53, 669 (Operating) $53, 669 TOTAL AGENCY FUNDS $45, 053, 869. 00 $11, 843, 500. 00 $3, 404, 500. 00 $1, 393, 000. 00 $61, 694, 869. 00 47

Overview of KCTCS Funding for Secondary Students Total Budget - $1, 393, 000 Current FTE Value - $2, 480. 91 Current Total Weighted FTEs – 561. 49 Current Total Unweighted FTEs – 442. 56 48

Inequities / Concerns with CTE State Funding 49

Are there schools in Kentucky that meet the statutory definition of being classified as a locally-operated CTE “center”, but have never requested the status and funding? 5 or more CTE programs 78 50

CTE Programs in Locations That Currently Receive No State Funding State-Operated Area Technology Centers Locally-Operated LAVEC Schools All Other CTE Program Locations 53 42 Funded 220 Unique 9 th-12 th Grade Student Enrollments 22, 392 31, 365 95, 665 51

What does the data tell us about high-demand programs offered in comprehensive high schools? High schools offering one or more unfunded highdemand CTE pathways: 183 Estimated Full-Time Equivalent (FTE): 12, 611 52

Moving Forward: Recommended Phased Approach The following funding and governance alternatives provide options for consideration by the CTE Task Force. 53

Phase 1: LAVECs (2020 -2022) ● Identify funded pathways Re-examine levels of funding by category and if they are to be funded in future. Just fund centers or all programs/pathways, regardless of location? Increase funding for LAVEC ($2. 8 M) to include requested unfunded centers and unfunded programs within funded centers ● Establish policies and procedures for requesting, approving, and closing programs that receive state funding ● Correct existing conflict between statute and regulation ● 54

Phase 1: ATCs (2020 -2022) } Classify which ATCs will move to local control during Phase 1 ● Determine districts that have the will and ability to operate a center. ● Create a process for transition of ATCs to local control that moves to long-term access and equity of funding. ● Incentivize district collaboration and utilization of regional offerings for efficiency. 55

Phase 2 (2023 -2024) } Design and pass legislation that will support equitable CTE program implementation with fidelity. System for locating and funding programs and future centers. ● Continue transitioning ATCs to local or shared governance. ● Funding mechanism for equipment upgrades. ● Finalize structure for continuous improvement and expansion of CTE in Kentucky. ● 56

Rationale for Phased Approach CONSIDERATIONS / CONCERNS Are all 53 centers ready for such a transition? What about those districts who don’t have the will or capacity to take over the ATC? Should they be required to? New and/or revised legislation should be considered to ensure continued equitable access to current ATC feeder districts. Should local districts be allowed to charge tuition/fees to feeder districts? Should there be legislation that requires shared governance of the center (via inter -local agreements)? Should there be incentives for regional collaboration and the sharing of resources (like the premise of Kentucky’s New Skills for Youth grant for regional career academies)? If funded and governed appropriately, this could create one equitable system of CTE. 57

Proposal – Impact of Transitioning 10 ATCs to Local Districts ATC Snapshot Current Data: State Governance Projected Data After Transition to Local District (based on new legislation) Budget: $722, 292 Budget: $470, 885 FTEs: 141 FTEs FTE Value: $5, 134 FTE Value: $3, 347 Current LAVEC FTE value of $1, 451 rises to $1, 759 for all LAVEC-funded schools. 58

Need For Action CONSIDERATIONS / CONCERNS LAVECs There is conflicting language within the LAVEC statute and administrative regulation. If statute is followed (KRS 157. 069), existing LAVEC budgets will be drastically impacted. LAVECs Lack of funding for additional pathways within currently-funded LAVEC schools. ATCs Current statute only allows for ATC budget to follow for one year post transfer (from state to local), then LAVEC formula applies. This will drastically reduce ATC budgets for those who make this transition. ALL Lack of action does not accomplish an equitable system, nor provide sustainability for the existing system. * If no changes are made to address these LAVEC concerns, KDE will begin following the current language of the law in the 20202021 academic year. 59

Sample Scenario: Implications of Following Current Process for LAVEC Funding Formula LAVEC Snapshot Decreased LAVEC Funding Increased LAVEC Funding Mainly Unaffected Districts Affected: 14 Districts Affected: 11 Districts Affected: 7 Range of Change: $10, 500 -$205, 000 Range of Change: $11, 000 -$183, 000 Range of Change: Less than $10, 000 Percent of FTEs: 62% Percent of FTEs: 24% Percent of FTEs: 15% 60

Sample Scenario: ATC Transitioning to Local District ATC Snapshot Current Data: State Governance Projected Data After Transition to Local District (based on current statutory process) Budget: $722, 292 Budget: $199, 640 FTEs: 141 FTE Value: $5, 134 FTE Value: $1, 426 Current LAVEC value of $1451 drops to $1426 for all LAVEC-funded schools. 61