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March23

SFAB adopts rules, hears teacher pay accountability report

School Finance Accountability Board members met for the first time in 2017 and adopted a slightly amended version of the board’s rules.

 

SFAB’s rules outline the different facets of the board’s work including the waiver request process, which requires waiver requests be submitted to the board before the first Friday in November, the documentation school districts are required to submit and how the factors the board must consider.

 

Rules state SFAB will review and make recommendations on waivers before the last Monday in November and within five days of their decision submit recommendations to the legislature’s Joint Appropriations committee, who will make the final determination on the district’s waiver.

 

A district submitting a waiver that reached appropriators will be notified by SFAB of the legislative committee’s decision no fewer than ten business days after it is delivered to the board.

 

Brandon Valley Superintendent Jarod Larson, a SFAB member, noted he hoped legislative appropriators would “hold our (board’s) recommendations in the highest regard.”

 

An amendment introduced to the board called for any waiver application not recommended for approval by the accountability board would not be forwarded on to appropriators.

 

ASBSD Executive Director Wade Pogany expressed concern over the proposed amendment as it would keep a school district from utilizing an appeals process. He also cited a district could be without documentation to enhance their case at the SFAB hearing that they could provide for appropriators upon appeal.

 

Board members chose not to adopt the proposed amendment at this time.

 

SFAB members did adopt an amendment requiring an affirmative vote of three members of the board, which makes up a majority, for final action.

 

Districts can apply to the board for a waiver for the Teacher Compensation Accountabilities and Cash Balance Penalty.

 

Circumstances for the board to consider a waiver for the Teacher Compensation Accountabilities include:

  1. Retirement of a Teacher;
  2. Declining Student Enrollment;
  3. Change in Budgeted Costs for Benefits;
  4. An Unanticipated Change in Teacher FTE; or
  5. Any Un-Foreseen or Extenuating Circumstance.

Circumstances for the board to consider a waiver for the Cash Balance Penalty include:

  1. Revenue needed in following year(s) due to natural disaster;
  2. Funding needing to expand educational programs;
  3. Impact of reorganization; or
  4. Any Un-Foreseen or Extenuating Circumstance.

In addition to the adoption of the rules, the board received an update on the funding formula accountabilities from Department of Education Management Analyst Travis Jordan, who noted there is NO teacher compensation accountability for Fiscal Year 2018.

 

Districts had to meet two accountabilities for Fiscal Year 2017: total teacher compensation and average teacher compensation. For Fiscal Year 2019, 2020 and 2021, districts will be required to meet the average teacher compensation set in FY17.

 

There is NO total teacher compensation beyond FY17.

 

Patrick Weber, a Policy Advisor for Gov. Dennis Daugaard, also joined the board.

 

SFAB members are tentatively scheduled to meet on Thursday, November 16 at 1p.m. (CDT). For updates on the board, check the ASBSD Blog and Twitter feed.

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