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Montgomery County Organizational Reform Commission In FY12, the County's MOE funding level is estimated to increase by $82 million or 5.8% due to a projected increase in enrollment and other provisions of the MOE law. The County's six-year fiscal plan currently projects a decrease in agencies' combined tax supported spending in FY12 of 3.9%. The County will not be able to meet the MOE level in FY12 without excessive cuts in County services or layoffs in the other four tax-supported agencies. This pattern is likely to continue into the future, absent a change in the State law. Problem - The law: • Creates a serious disincentive for counties to fund education above the minimum level; • Does not acknowledge the joint responsibility of all government levels to maintain continuity of support for education; • Does not recognize the reality of severe economic downturns; • Assumes there can never be a reason to spend less per pupil than in the previous year, which precludes legitimate budget savings and productivity improvements; • Assumes the only measure of education adequacy is spending, rather than performance; • Applies a counter-intuitive penalty by reducing State education funding if a County does not meet MOE, thus reducing resources in an already tight economic situation; • Assigns responsibility for granting or denying a county's waiver application to the State Board of Education, which is not responsible for ensuring deficits are funded; • Does not establish reasonable criteria to evaluate a waiver application; and • Does not allow an appeal o f the State Board o f Education's decision on whether to grant a waiver. Possible Solution - A Legal Remedy: A threshold question is whether a minimum local funding prerequisite, based upon prior year funding, should continue in the law at all, given the flaws outlined above. But if repealing the MOE requirement entirely is not feasible, we recommend the following legislative changes to improve it. • Add criteria related to school performance. Meeting MOE should be a requirement only if a school system is found to be inadequate on certain performance measures, such as State or Federal test scores, or by certain minimum program standards, such as class size. - 46PDF Image | Montgomery County Organizational Reform
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