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Legislative Update

2017

Mike Reid, Chief Lobbyist

Mike Grote, Lobbyist

Mike Winter, Lobbyist

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YOU Made the Difference

• Several school “choice” initiatives did not pass because of your advocacy:

– Expansion of charter schools

– Education savings accounts (vouchers)

– Expansion of school transfers

– Virtual schools and classes

– Hardship transfers

• They will be back next year!!!

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What Did Pass?

Keep in Mind:

Most not signed by the governor yet!

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HB2: Budget

• Full-funding of the foundation formula!

– Thank your senators and reps!

– But formula was rewritten in 2016

– Do not spend it until you get it!

• Restored funding for transportation to 2016-

17 levels

– Still only 21%

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Pre-K and State Funding: §163.018

• If full-funding of the foundation formula is appropriated (not necessarily received) all districts that operate a Pre-K program for students who qualify for free and reduced lunch will count those students for state aid the following year.

• Cannot exceed more than 4% of the students in free and reduced lunch between ages 5-18.

• Must meet state board standards.

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SB111: Bonds

• Now: Can issue bonds through a negotiated

sale or competitive bidding

• State auditor and others prefer competitive

bidding, claiming it results in higher yields

• If signed, this bill would require competitive

bidding, unless certain conditions are met

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SB111: Conditions That Would

Allow a Negotiated Sale

• The district uses a municipal advisor; or

• School district’s bond rating is NOT AA+ or higher

or the district is going to issue unrated bonds; or

• The district is selling the bonds to the U.S. or state

of Missouri pursuant to a written agreement; or

• The principal amount of the bonds does not

exceed $12.5 million; or

• Are issued as part of a refinance deal.

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Who Can Be a Municipal Advisor?

• A person who is registered as such with the U.S.

Securities and Exchange Commission; or

• A CFO of a school who is either a CPA or has an

MBA and is certified as an administrator of school

finance and operations by the Association of

School Business Officials International.

• Must be independent of the underwriter and

cannot benefit financially, directly or indirectly,

from the underwriter.

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SB 43: Reform of the

Missouri Human Rights Act

• Great for employers like school districts, but controversial.

• Changes the level of proof needed to find an employer liable from a “consideration” of an illegal factor to “motivating” factor. (HUGE!)

• Supervisors cannot be sued

• Caps damages

• Does not have an emergency clause, so be prepared for a lot of lawsuits filed this summer!

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SB 43: Narrowing Liability under the

Whistleblower’s Protection Act

• Courts have allowed employees who were

terminated due to complaints regarding

employer’s misconduct to sue for wrongful

termination under the “at-will” doctrine

• Legislature codified and limited protection of

employees

• School districts and other political subdivisions

cannot be sued under this act.

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SB 62: Use of Retired Employees

• PSRS: Applies the 550-hour limitation to

retirees who perform services for a public

school district through a third party (like a

temporary work agency) or as independent

contractors if the retirees are working as a

temporary or long-term substitute teachers or

in other positions that would normally require

a teaching certificate.

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SB 62: Use of Retired Employees

• PEERS retirement: Not limited the same as

PSRS! Still has 550 rule but does not apply to

independent contractors/3rd parties

• KC Retirement: Stricter rules. Applies 660

hour limitation to employment for all 3rd

parties and independent contractors

regardless of type of employment.

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SB 19: Right to Work

• Signed!

• No person can be required as a condition of

employment to become a member of a union;

pay any dues, fees or assessments to a union;

or pay to a charity or other 3rd party fees

required by a union.

• Few school districts will be impacted but limits

future collective bargaining agreements.

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SB 182: Project Labor Agreements

• Signed!

• Cannot discriminate against or give

preferential treatment to contractors or

subcontractors that use union labor in

construction.

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HB 93: Adult High School

• Directs DESE to authorize a Missouri-based non-profit organization to establish and operate four adult high schools located in St. Louis City, Butler County or neighboring counties, Greene County or neighboring counties, and Boone County or neighboring counties.

• Must be 21 or older and have not earned a high school diploma.

• Will not receive state aid or local effort.

• DESE will establish criteria for a diploma.

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What Should We Expect and When?

• More school “choice”

• More bills controlling or limiting public sector

labor

• Prevailing wage

• Tax reform

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What DID NOT Pass in 2017?

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HB 634: Charter School Expansion

Did Not Pass!

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SB 313: Education Savings Accounts

Did Not Pass!

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HB 138: Virtual Schools

Did Not Pass!

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HB 138: Missouri Course Access

Program

• School districts and charter schools must pay tuition for students to take virtual courses approved by DESE if parents/students request.

• Could have required district to pay for complete virtual education of a student.

• Good: Students would have access to more courses than currently offered and students must first attend district for a semester at least.

• Problem: How do districts budget for this? What is to keep students from seeking less rigorous classes or to avoid specific teachers?

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Pending Case and Vouchers

• The U.S. Supreme Court has heard Trinity Lutheran Church of Columbia, Inc. v. Pauley

• Church preschool applied for and was denied a state grant to resurface a playground on church property because of Missouri Constitutional provision.

• Does the Missouri Constitution (and the constitutions of many other states) violate the U.S. Constitution?

• Will find out soon and answer could impact whether the state can give out vouchers.

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Missouri’s Blaine Amendment

Section 7. “That no money shall ever be taken

from the public treasury, directly or indirectly, in

aid of any church, sect or denomination of

religion, or in aid of any priest, preacher,

minister or teacher thereof, as such; and that no

preference shall be given to nor any

discrimination made against any church, sect or

creed of religion, or any form of religious faith or

worship.”

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Get Engaged!

• MSBA Action Center: www.msbanet.org

• Join us on Twitter: @MissouriSBA

• Join us on Facebook

• Legislative Forum: February 13, 2018

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