Changes to Graduation Requirements Imminent

ISTEP will soon change into ILEARN, per House Enrolled Act 1003 which was signed into law this spring. However, an important part of the legislation is often overlooked. There will soon be changes to graduation requirements; instead of having end-of-course assessments be counted as the graduation exam, graduation pathways will be determined by the State Board of Education (SBOE). These options could include:

  • passing end-of-course assessments;
  • SAT or ACT scores;
  • Armed Services Vocational Aptitude exams;
  • industry-recognized credential; or
  • earning of advanced placement, international baccalaureate or dual credits.

Obviously, employer input is key to ensuring that these graduation pathways have currency for students/future employees. Governor Holcomb has appointed the Chamber’s Caryl Auslander, vice president of education and workforce development, to sit on the Graduation Pathways Panel along with representation from the SBOE, Superintendent of Public Instruction, Commission for Higher Education, Department of Workforce Development and chairs of the House and Senate education committees.

This panel will meet in late summer/early fall; we will keep you updated on the process.

Indiana Chamber-Ball State Study: Student Performance Suffers in Smaller Districts

School corporation size has a direct impact on student achievement. And more than half of Indiana school corporations are too small to produce the most effective outcomes, according to research commissioned by the Indiana Chamber of Commerce Foundation and conducted by the Ball State University Center for Business and Economic Research (CBER).

Numerous earlier studies, both nationally and by CBER, found that school corporations with fewer than 2,000 students are not able to operate at optimal efficiency to maximize resources going into the classroom. This new study – School Corporation Size & Student Performance: Evidence from Indiana – (full report and Appendix available at www.indianachamber.com/education) also documents significantly poorer academic performance, on average, for students from these smaller corporations. Comprehensive analysis and modeling reveals the following improved outcomes if school corporations contain between 2,000 and 2,999 students:

  • SAT test scores (+20.5 points)
  • Advanced Placement (AP) pass rates (+14.9%)
  • Eighth-grade ISTEP scores (+5%)
  • Algebra and biology end of course assessment (ECA) pass rates (+4%)

“This is not about closing buildings or eliminating schools,” says Indiana Chamber President and CEO Kevin Brinegar. “It’s about reducing per-pupil administrative costs to put more money into classrooms, increasing pay for deserving teachers, making more STEM classes available and, most importantly, helping ensure the best possible student outcomes.

“That will drive per capita income and is especially critical for smaller communities,” he continues. “Greater student achievement is the biggest thing we can do for rural economic development and those local residents.”

In 2014, 154 of Indiana’s 289 school corporations had total enrollments of less than 2,000 students. Eighty-five of those corporations experienced enrollment declines of 100 or more students between 2006 and 2014.

Only 21 of Indiana’s 92 counties have a single school corporation. Twenty-two counties have three corporations, 19 have two corporations and 13 have four corporations. The most corporations in a single county are 16 in Lake County and 11 in Marion County.

“With today’s fierce competition for talent, too many young people in our state are suffering due to inadequate preparation for postsecondary education or the workforce,” Brinegar adds. “The data show smaller corporations are getting smaller. In many instances, it’s already too difficult for them to overcome the challenges of limited resources.”

Ball State researchers took into account demographic and socioeconomic factors. For example, the average SAT score of 949.5 in the smallest corporations (between 240 and 999 students) compares to a 989.8 average in corporations with between 2,000 and 2,999 students. Even when economic differences between corporations are factored in, that 40-point raw gap remains at more than 20.5 points.

AP course offerings are one indicator of preparation for higher education, with higher-level math and science courses often a pre-requisite for pursuing STEM (science, technology, engineering and mathematics) majors. Corporations with fewer than 1,000 students offered an average of 2.69 AP courses with enrollment of 8.53 students in 2015. That compares to 5.95 offerings and 22.26 students for corporations with between 2,000 and 2,999 students and even more courses and student participants in larger school districts.

The research reveals “94% of Indiana’s small school corporations (fewer than 2,000 students) are contiguous with another small corporation.”

North Central Parke Community School Corp. was created in 2013 by the merger of the Rockville and Turkey Run school districts. Parke County continues to lose population and district enrollment for the most recent school year was only 1,200. In April, the school board voted to combine (within two years) into one high school and one middle school.

“It’s hard to operate a comprehensive academic program” with so few students, district superintendent Tom Rohr said at the time of the most recent vote. “That’s really … a driving force. Our teachers have gotten behind this. They are saying, ‘Let’s do what is best for kids.’”

Hits and Misses: The Indiana Legislature Halftime Report

We are pleased that several of our top priorities are alive and in good shape at the midpoint – including long-term transportation funding, pre-K expansion and anti-smoking legislation. All of these tie directly to the Indiana Vision 2025 economic development plan.

Long-term transportation funding – tolling around the corner?
This is the Chamber’s top priority in 2017. House Bill 1002 is the proposal to take care of the state’s transportation needs; the 20-year infrastructure plan addresses the erosion in funding that has taken place and the lost purchasing power from the enhancements in automotive technology and fuel efficiency.

We believe that the bill’s proposed gas tax increase is pretty solid. Senator Luke Kenley (R-Noblesville), who appears to be taking the lead on this bill in the Senate, may change things like dedicating all of the sales tax on gasoline to transportation needs and put a heavier emphasis on tolling, which would enable the state to undertake major projects like adding additional lane miles to Interstate 70 and Interstate 65 throughout Indiana. Overall, we are very encouraged by the commitment we have seen to date from the House, Senate and Governor. We also realize this will be a little tougher sell in the Senate and are prepared for a strong advocacy effort.

Tax threats avoided; overall outlook good
Everyone should be thrilled that two detrimental proposals – on mandatory combined reporting and sales tax on services – didn’t really get out of the gate. And that’s thanks to the good work of the Chamber’s Bill Waltz over the course of the summer. That means there are no big, threatening tax bills looming for us to worry about.

Instead, this session has brought some positive activity that will improve things procedurally within the Department of Revenue. Additionally, while not involving the Legislature, the Chamber has provided substantial input to the Department of Local Government Finance on a rule with respect to the so-called big box commercial/industrial property assessments. (That input was made possible thanks to a subgroup of the Chamber’s Tax Committee that analyzed the big box assessment issue; we are always grateful to our members for lending their expertise!)

On track: expansion of the state’s pre-K pilot for children from low-income families
Obviously, the expansion – to $16 million total in the Senate (including funds for a new online pre-K pilot); at $20 million in the House proposal – is not as significant as we would like, but we recognize this is still a very young program and are encouraged that what’s being debated is the level of increased funds, not the merit. We also appreciate all of the programmatic language that allows for potential expansion into all 92 counties (SB 276) and increases the income thresholds for eligible families (HB 1004). That said, we are going to continue to work to get as many dollars as possible directed to this. It’s vital for children to have that strong early education as a foundation.

Making the superintendent of public instruction an appointed position still can happen
We remain optimistic this longstanding Chamber goal will be realized this session. Yes, House Bill 1005 will have to be amended because it’s too similar to the one the Senate voted down last week. What happened there was, by all accounts, a blunder created by a perfect storm of factors – including little caucus discussion before the vote. But the good news is that the House bill is alive AND Senate leader David Long (R-Fort Wayne) has assigned it to the Senate Rules Committee that he chairs, so he’s going to go to work on it and will ultimately determine how much of it needs to be changed. We speculate that requiring Indiana residency – which is not currently in HB 1005 – could be one modification. It definitely will have to be different than the failed bill to pass the Senate Rules Committee.

Comprehensive smoking reform, now in HB 1001 and HB 1578, would send big message
We are hopeful that the increased tax on cigarettes ($1 per pack) and funding for a more robust smoking cessation program will stay in the budget bill (HB 1001). Likewise, that the repeal of the special civil rights privileges for smokers will survive on its own in HB 1578; this marks the first time that policy has been passed by either house, so we are making progress. Seeing these three elements cross the finish line would be a clear indication that the state is taking seriously the ever-increasing costs to employers of Hoosiers smoking – more than $6 billion annually in health care costs and lost productivity on the job.

The provision raising the cigarette buying age from 18 to 21 is most likely not happening this session after its removal in the House Ways and Means Committee. That group felt there wasn’t enough definitive information or testimony.

ISTEP, energy and technology updates
The Chamber is supporting legislation that will replace ISTEP with a shorter, more focused assessment. You can put all the debates and disagreements aside because this has to happen this session.

We are encouraged by the Senate’s passing of SB 309, an energy bill, which, among other things, addresses net metering for those investing in wind and solar energy; we believe the bill is consumer-friendly. Moreover, utilities have offered up some ideas and concessions that we think will help control electricity prices. The water infrastructure proposal (SB 416), while not funded, sets up the appropriate framework and keeps that needed policy moving along.

The budget bill (HB 1001) contains some pro-technology priorities, including the transferability and expansion of the venture capital tax credit. This would incentivize additional out-of-state investors without state tax liability to invest in promising early stage Indiana companies. Additionally, the open data measure (HB 1470) would allow public access, in an appropriate way, to the tremendous amount of data the state has collected. This is one of a couple of new initiatives coming from our Indiana Technology & Innovation Council policy committee. To see these efforts making progress right away, in their first session, is very encouraging.

A disappointment for the Indiana Chamber
There were several bills centered on litigation that couldn’t get out of committee. That’s because there are too many attorneys on both civil justice committees who are standing with trial lawyers, which essentially is blocking any sort of tort reform.

Indiana Chamber Opposes Teacher Evaluations Bill

The Indiana Chamber opposes SB 35, which provides that a school corporation may use objective measures of student achievement as part of a teacher evaluation plan. (Current law provides that the use of an objective measure of student achievement is required as part of a teacher evaluation plan.)

While there are potentially some issues with teacher evaluations and those issues should be addressed at a more comprehensive level, it is a longstanding Chamber policy that teacher evaluations are extremely important and that student objective measures should be included in the evaluation process.

Note that last year, HEA 1395 (which did decouple the test results from the evaluations for one year) passed with the Chamber’s qualified support. This is because we felt that the administration of the ISTEP test – not the exam itself – was flawed. There is already local control when determining how much student objective measures will be attributed toward teacher evaluations and what objectives should be included in addition to the statewide assessment.

In addition, while many complain about including student objective measures in evaluations, it does not seem to have a negative impact in effectiveness ratings for teachers (98% were rated effective or highly effective in the most recent evaluations).

The bill was heard in the Senate Education Committee last Wednesday and held until this week for amendment and vote.

Latest on ISTEP and ‘A-F’ School Grades

The ISTEP Alternatives Panel has made its final recommendations on how to replace ISTEP, which was legislatively determined to sunset in the fall of 2017 after scoring, technical and mismanagement issues plagued the exam the past two years.

These recommendations include: students in grades 3-8 to take one English and math exam at the end of the school year, and 10th grade students to take English, Algebra 1 and biology at the end of the school year. The tests will be taken once and not split into two testing times in the winter and spring.

One of the most important recommendations was to recognize that national testing experts advised that it takes a minimum of two years to fully implement a new testing system throughout the state. So it is very likely that we will see legislation during the upcoming 2017 legislative session to undo the sunset provision.

The recommendations received wide support from 21 of the 23 members of the panel, made up by a majority of educators. The two “no” votes were by Superintendent of Public Instruction Glenda Ritz and Ayanna Wilson Coles, a Pike Township educator appointed by Ritz. These recommendations now go to the Legislature, which can choose to use them during the 2017 legislative session. The Indiana Chamber strongly advocated last year
to have a business representative appointed to the panel, and we would like to thank our board member, Marilyn Moran-Townsend of Fort Wayne, for all of her work and dedication to the panel and helping lead the collaborative effort that resulted in the recommendations.

This week, the State Board of Education released school A-F grades which, as anticipated, were lower than in previous years. And while expected, it is important to note that it is very difficult to compare this year’s scores to the scores in 2015 for two important reasons. First, last year, the Legislature (with the Indiana Chamber’s support) decided to protect schools from the lower ISTEP scores due to the test mismanagement and scoring
issues. This “hold harmless” provision stated that 2015 grades were changed only if they improved from 2014; otherwise schools were able to hold onto the higher grade. So the 2016 scores released this week are the actual first show of true impact of the more rigorous assessment based on the newer and more-challenging college and career ready standards. Second, this year the State Board of Education determined school grades
based on a new formula that equally weighs growth and proficiency.

While there has already been significant discussion on whether to “hold-harmless” for this year’s ISTEP exam, the U.S. Department of Education has already stated that such a provision would not be allowed. The Indiana Chamber will continue to push legislators on the importance of assessments AND accountability – for teachers, schools and students in the 2017 legislative session and beyond.

ISTEP Issues an Unfortunate Education Development in 2016

TISTEP has been in the news a lot as of late – and for some very unfortunate reasons. Three bills were passed this legislative session dealing with ISTEP from last year and moving forward. The Indiana Chamber strongly supports accountability when it comes to our teachers, our schools and our students – and we feel that all have handled the current ISTEP testing crisis honorably. However, last year’s administration of ISTEP was a complete nightmare – from the length of the test, to the delays in scores, to the discrepancy between the paper and online tests, to the potential scoring errors that were never corrected. Not to mention the anticipated drop in scores due to testing for new, more stringent college and career ready standards.

That being said, the problems in the administration of ISTEP are simply inexcusable. The length of last year’s test was way too long. The time it took for the scores to be completed was ridiculous. And the recent news of the scores not being accurate just added to the perfect storm for the 2014-2015 school year accountability measures.

With that as the backdrop, the Chamber advocated in favor of SB 200 and HB 1003, creating a one-year pause for school and teacher accountability. Teachers should still be subject to the important classroom and other evaluations that take place, but not have student test scores used for that purpose for this one year. Schools should not be punished for lower ISTEP scores for this one year. These two bills addressed those issues, but with an essential commitment to resume that important accountability the following year and beyond.

The Chamber’s advocacy of these bills required that there should be some strings attached. First, this pause needs to be for this only ONE year – period. We have a new test administrator and it is our hope that the Department of Education will work very closely with them to ensure that the test is administered accurately and that scores are finalized in an appropriate time frame. Second, if we are pausing accountability for the schools, it is important to keep the unadjusted scores/data as a baseline for growth for next year. Third, if we are keeping the scores as a baseline, it is important for the scores to be correct and trusted. Therefore, the Chamber advocated that a rescore of the exams be completed by an independent third party.

Original language in HB 1395 included a rescore, but ultimately the cost of doing so prohibited the language from moving forward. The bill did end the ISTEP exam after 2017 and created a 23-member panel to review the new federal Every Student Succeeds Act and make recommendations on Indiana’s assessment choices for the future. The Chamber lobbied to ensure that a business leader has a seat at the table and was successful in that effort.

The 2016 Legislative Session: Some Noteworthy Shots Made

Silhouette of Teen Boy Shooting a Basketball at Sunset, copy space

With the NCAA basketball tournament in full swing and baseball season just around the corner, slam dunks and grand slams are both center stage. Neither of those terms, however, can be used to describe the 2016 Indiana General Assembly session. We’ll have to settle for a solid jump shot or maybe a line drive double in the gap.

The number one priority for the Indiana Chamber and its business members was enhanced funding for roads and transportation infrastructure. A total of $1.1 billion, when counting money for local governments, is a strong start. What’s even more important is the commitment legislators made to address longer-term needs in the 2017 budget-writing session.

All four legislative caucuses and the governor’s office offered plans and spent considerable time working toward solutions. That is an excellent sign of even better things to come. In the education arena, the disastrous ISTEP test implementation in recent years led to several needed pieces of legislation. Teachers and schools will not be negatively impacted by the 2014-2015 test results, but all-important accountability remains in place and a summer panel – with the Indiana Chamber at the table – will determine a more suitable testing future for our state’s students.

Other positive legislative results included funding the third Regional Cities program, scholarships for prospective top-of-their-class teachers, a long-sought solution to the unregulated lawsuit lending industry and saving hundreds of millions of dollars with more appropriate property tax assessments of large retail facilities (aka “big box” stores).
Unfortunately, there were also two significant missed opportunities. Indiana must be seen as a welcoming place for all in order to retain and recruit top talent, new business investment and tourism. Failing to pass civil rights legislation doesn’t put Indiana in the strong position it could have been, or arguably needs to be. While this proved a bridge too
far for legislators to cross in this election year, all of our state leaders must find a way going forward to work together to craft a solution.

Despite bipartisan support, implementing a work share program barely even got out of the starting gate. Work share would benefit employees, employers and communities when the next economic downturn occurs. At the request of the Indiana Department of Workforce Development (DWD), the Indiana Chamber partnered with them to commission an independent study of why a work share program is needed. The Chamber also took the extra step of identifying viable funding options for the program’s administration. However, DWD still was unable to get on board. Until they do, this policy will, unfortunately, face an uphill climb.

If these last two items had been added to the plus column, we might just be talking slam dunks and grand slams. Still, there will be another game in town next year, and the Chamber will be back at it – pushing these policies and others that support making Indiana a more prosperous place for employers and their employees.

Read further analysis from Brinegar on several of these issues in this summary

Four Areas Where Gov. Pence’s State of the State Address Missed the Mark

?????????????????????????????????????????The 2016 session of the Indiana General Assembly may be short in time but, as usual, there is a long list of important issues. In outlining his priorities in the State of the State speech, however, Gov. Mike Pence fell short in four key areas.

First is civil rights expansion. After appropriately listening to Hoosiers since last spring’s public relations crisis, the Governor failed to articulate a clear vision. His words, depending on interpretation, bordered on telling legislators to do nothing at a time when action is needed.

The Indiana Chamber went through a similar lengthy listening process as public policy committees, the executive committee and the full board of directors (all comprised of representatives of member companies) debated the issue. Once a final determination was made, the Chamber communicated the decision that the members had voted to support the expansion of civil rights to protect sexual orientation and gender identity. Although not popular in all circles, similar clarity was needed from the Governor.

In the critical area of infrastructure funding, the Governor advocated against the only long-term solution presented thus far because it included several responsible revenue increases. As an organization that works each day to create and maintain the best possible business climate, the Indiana Chamber does not go looking for tax hikes. But in this case, they are necessary.

Third, on education, the “let’s take a step back on ISTEP” remark goes too far. Indiana already has a new test that measures our new, stronger standards. The test needs rebranded, not revised, and administered correctly to achieve the desired results.

Finally, there was no mention of work share, a common sense program to support employers and employees in an economic downturn. It will be needed at some point and the best time to implement it is now.

The Indiana Chamber has and will continue to communicate with the Governor and his staff our positions on these issues, which we believe are in the best interest of the state’s economy, employers and workers.

Indiana Chamber Outlines Priorities for School Testing Reform

19173605In testimony this week, the Indiana Chamber of Commerce began outlining its priorities for school testing reform. Caryl Auslander, the Indiana Chamber’s vice president of education and workforce development policy, expands on some of her remarks:

Pause school accountability for one year only:

“The Indiana Chamber fully supports a one-year pause in school accountability due to the many missteps in the latest ISTEP testing cycle. Teachers should still be subject to the important classroom and other evaluations that take place, but not have test scores used for that purpose for this one year.

“With a new test administrator in place going forward, our hope is that the Indiana Department of Education (DOE) will work very closely with them to ensure that the test is administered accurately and that scores are finalized and reported in an appropriate timeframe (i.e., by the end of August). Many of the ISTEP issues can be traced to past vendor-DOE relations; those need to improve and DOE needs to take a more aggressive role in ensuring deadlines and expectations are met.

“We urge legislators to resist any efforts to lessen our overall accountability process. Accountability measures for schools, teachers and students are critical. They allow us to accurately predict student progress, rate teacher effectiveness and compare and contrast school performance relative to state and national peers. We have to be able to grade ourselves.”

Rescore of current data necessary:

“If we are pausing accountability for the schools, it is important to keep the unadjusted scores/data as a baseline for growth measurement next year. That means it’s essential for the scores to be correct and trusted. And the only way that can be accomplished is through a rescore of the exams by an independent third party.”

Rebrand test; no need to start process over:

“We have new, more rigorous academic standards and the new assessment exam to go along with them. There is no need to spend more of the state’s money to change the assessment. The length of this test or any test is something DOE can and should address with the new test vendor.

“The new test was labeled ISTEP out of a sense of continuity. Let’s rebrand the test to reflect that it is indeed new and simply work to ensure future tests are executed properly and timely. That’s all that needs to happen.”

Student Scores: ISTEP and ‘National Report Card’

The Indiana State Board of Education (SBOE) met last month with the plan to set cut scores and finalize ISTEP grades from the 2014-2015 school year. As a reminder, setting cut scores is done by a panel of educators that determines the passing score for that year’s test. However, during that meeting, questions were raised regarding the differences between the online and paper-pencil versions of the exam. This was identified in a report submitted to the Indiana Department of Education in early October – yet that report was not provided to the test’s Technical Advisory Committee or the SBOE until right before the meeting. The SBOE then requested a comparison study done by its own test experts to determine any discrepancies. Sarah O’Brien, vice chair of the SBOE, had originally made this request back in July.

SBOE – after the comparison studies were in hand – set pass-fail benchmarks for the latest ISTEP scores. What’s anticipated is that a notable increase in students will see drops in their scores, with a portion falling below the pass line. While no one wants to see test scores go down, it is explainable as students and teachers were adjusting to the new, more rigorous academic standards and a new assessment that were adopted for the same school year. In other words, this drop is expected, and many other states have experienced similar decreases. In fact, Indiana’s scores were either on par or higher than other states that have recently adopted new standards and/or a new assessment. While the news of dropping ISTEP scores is disappointing, it is important to note that the changes to the standards will benefit students as they will be more prepared for college and career in the future. The Indiana Chamber appreciates all of the hard work of Indiana teachers and students.

Due to this somewhat turbulent transition year, Gov. Pence released a letter to Superintendent of Public Instruction Glenda Ritz and SBOE members recently stating that he is working with leadership in the Indiana General Assembly to have legislation drafted to ensure that the 2014-2015 test results would not negatively impact teacher evaluations or performance bonuses this year. The Chamber has a longstanding policy to support accountability and transparency for students and teachers but understands that unforeseen circumstances with ISTEP delays and testing issues would allow the need for this pause.

Positive news:

The recently-released National Assessment of Educational Progress (NAEP) scores – aka a “National Report Card” – shows that Indiana is achieving more than other states in all four categories:

  • Fourth grade math: Indiana 248; national average 240
  • Eighth grade math: 287; 281
  • Fourth grade reading: 227; 221
  • Eighth grade reading: 268; 264

Indiana is actually widening its advantage over other states. We commend our teachers and school administrators for their important role in helping our students reach these higher levels of achievement.

While our ISTEP scores are lower as expected, these NAEP scores reinforce that our students are achieving at a higher overall level than many of their counterparts. We expect that to accelerate going forward with the enhanced college and career ready standards in place.