2006 Legislation
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HOUSE BILL NO. 769 – Public school performance pay fund

HOUSE BILL NO. 769

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Bill Status



H0769..........................................................by EDUCATION
PUBLIC SCHOOL PERFORMANCE PAY FUND - Adds to existing law relating to
school funds to create a Public School Performance Pay Fund; and to provide
for distribution of moneys from the fund to certificated administrative and
instructional staff employees of certain school districts according to the
test score performance of individual schools.
                                                                        
03/06    House intro - 1st rdg - to printing
03/07    Rpt prt - to Educ

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 769
                                                                        
                                   BY EDUCATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO SCHOOL FUNDS; AMENDING CHAPTER 9, TITLE 33,  IDAHO  CODE,  BY  THE
  3        ADDITION  OF  A NEW SECTION 33-915, IDAHO CODE, TO CREATE A PUBLIC SCHOOLS
  4        PERFORMANCE PAY FUND AND TO PROVIDE FOR DISTRIBUTION OF  MONEYS  FROM  THE
  5        FUND  TO  CERTIFICATED ADMINISTRATIVE AND INSTRUCTIONAL STAFF EMPLOYEES OF
  6        CERTAIN SCHOOL DISTRICTS ACCORDING TO THE TEST SCORE PERFORMANCE OF  INDI-
  7        VIDUAL SCHOOLS.
                                                                        
  8    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  9        SECTION  1.  That  Chapter  9,  Title  33, Idaho Code, be, and the same is
 10    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 11    ignated as Section 33-915, Idaho Code, and to read as follows:
                                                                        
 12        33-915.  PUBLIC SCHOOLS PERFORMANCE PAY FUND. (1)  There is hereby created
 13    in the state treasury a fund to be known as the public schools performance pay
 14    fund,  hereinafter  referred  to  as  "the  fund." The fund shall include such
 15    moneys as are made available through legislative transfers or  appropriations,
 16    or  the  deposit  of grant moneys, and is hereby continuously appropriated for
 17    the purposes stated in this section. Moneys distributed from the fund shall be
 18    included as part of the equalization of school funding through the educational
 19    support program in chapter 10, title 33, Idaho Code. The  provisions  of  this
 20    section  shall  only  apply  to  certificated administrative and instructional
 21    employees paid from state and school district funds who  are  employed  during
 22    the  school  year  upon which the distributions are based. For the purposes of
 23    this section,  school  districts  may  proportionately  allocate  certificated
 24    administrative  and  instructional  employees who are not employed at a single
 25    school based on the fall enrollment of the school each employee serves.  Also,
 26    for the purposes of this section:
 27        (a)  "Board of trustees" includes "board of directors";
 28        (b)  "Fall  enrollment"  means  the total average daily attendance through
 29        the first Friday in November; and
 30        (c)  "School district" includes "public charter schools."
 31        (2)  The state department of  education  shall  distribute  all  available
 32    funds  each fiscal year, as part of the final fiscal year distribution to pub-
 33    lic schools, based on the following criteria:
 34        (a)  Two-thirds (2/3) of the funds  shall  be  distributed  based  on  the
 35        result  of  student  test  scores  on the Idaho standards achievement test
 36        (ISAT) as follows:
 37             (i)  Two-thirds (2/3) shall be distributed to the fifty percent (50%)
 38             of schools showing the greatest percentage increase in composite ISAT
 39             test scores within the school year, determined by dividing  the  fall
 40             semester  test  scores  by the spring semester test scores, minus one
 41             (1). The only students included in this measurement  shall  be  those
 42             actually  taking  the  tests administered in both the fall and spring
 43             semesters. Such funds shall  be  equitably  distributed  to  eligible
                                                                        
                                           2
                                                                        
  1             schools  based  on  the  number  of full-time equivalent certificated
  2             administrative and instructional employees allocated to  the  school,
  3             and each certificated administrative and instructional employee shall
  4             receive, in salary and benefits, such employee's full-time equivalent
  5             share of the money distributed.
  6             (ii)  One-third (1/3) shall be distributed to the fifty percent (50%)
  7             of  schools  showing  the highest composite ISAT test scores from the
  8             test administered in the fall semester. Such funds shall be equitably
  9             distributed to eligible schools based on the  number    of  full-time
 10             equivalent  certificated  administrative  and instructional employees
 11             allocated to the school, and  each  certificated  administrative  and
 12             instructional  employee  shall  receive, in salary and benefits, such
 13             employee's full-time equivalent share of the money distributed.
 14        (b)  One-third (1/3) of the funds shall be distributed to school districts
 15        based on the number of full-time  equivalent  certificated  administrative
 16        and  instructional personnel employed by the district. Such funds shall be
 17        awarded to certificated administrative and instructional  employees  based
 18        on  a  performance  pay  plan  adopted  by  the  school  district board of
 19        trustees. If the board fails to adopt a plan, then the funds shall be dis-
 20        tributed to the individual schools  within  the  district  based  on  each
 21        school's  number  of  full-time equivalent certificated administrative and
 22        instructional employees, with the  individual  awards  to  such  employees
 23        being determined by the school principal. Funds awarded to employees under
 24        this  paragraph  (b)  of  subsection (2) shall be subject to the following
 25        conditions:
 26             (i)   A performance pay plan adopted by the school district board  of
 27             trustees  may be based on the performance of individuals, the perfor-
 28             mance of entire schools, or both.
 29             (ii)  Awards shall not exceed fifty percent (50%)  of  an  employee's
 30             base salary.
 31             (iii) Awards  shall  be  based on either student performance or other
 32             activities undertaken by teachers  or  administrators  that  tend  to
 33             improve student performance, or both.
 34             (iv)  Criteria  already  rewarded  under  the  provisions  of section
 35             33-1004A, Idaho Code, shall not be used as a  basis  for  determining
 36             awards.
 37        (3)  For  fiscal  year 2007, participation in the fund shall be limited to
 38    the voluntary participation of no more than five (5) school districts selected
 39    by the state board of education, and cumulatively possessing a fall enrollment
 40    total from the prior fiscal year that does not exceed six percent (6%) of  the
 41    statewide total fall enrollment from the prior fiscal year.
 42        (4)  For  fiscal  year 2008, participation in the fund shall be limited to
 43    the voluntary participation of no more than ten (10) school districts selected
 44    by the state board of education, and cumulatively possessing a fall enrollment
 45    total from the prior fiscal year that does not exceed twelve percent (12%)  of
 46    the statewide total fall enrollment from the prior fiscal year.
 47        (5)  All funds distributed pursuant to this section are hereby exempt from
 48    the provisions of section 33-515, Idaho Code.

Statement of Purpose / Fiscal Impact


     
                       STATEMENT OF PURPOSE

                             RS 16187

The purpose of this legislation is to bring about innovation in
teacher compensation by setting in place a performance based
compensation fund.

Two-thirds of the funds would be distributed based on student
performance on the Idaho Standards Achievement Test (ISAT), with
one-third of these funds based on fall test scores and two-thirds
based on the change in test scores from fall to spring.  Only
those students present for both the fall and spring tests will be
used to determine the school's performance.

One-third of the funds would be distributed based on a
performance pay plan adopted by the school board.  These funds
can be distributed as the test score portion is, based on the
performance of the whole school, or based on individual
performance or based on a combination of the two.  Because the
restrictions on how a school board may design its performance pay
plan are relatively few, this program will encourage creativity
and innovation in the school board driven portion of the system.



                           FISCAL NOTE

There will be no automatic fiscal impact to any fund, since this
legislation does not require automatic funding.  Instead it
establishes a mechanism by which the state can reward excellence
in teaching, when funds are available.  Any funding that the
Legislature might provide through this mechanism would be on top
of what it required by the existing system of funding for teacher
salaries.  For FY2007 and FY2008, any funds that might be 
available would go towards a pilot program involving no more than
five and ten school districts, respectively.





Contact
Name: Representative Ken Roberts 
Phone: 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                         H 769