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Weekly Update



February 23, 2024

Private equity eyeing child care industry

This week, The Atlantic published an article signaling that private equity is interested in child care, especially in areas where the subsidy reimbursement rates have dramatically increased. Vermont, for example, recently raised eligibility levels to 575 percent of the federal poverty level (FPL). Missouri, by comparison, requires families to be at or below 150% of the FPL.


Private investors are intrigued by child care for the same reasons they became interested in nursing home and other health-care services: intense demand, government money, and relatively low start-up costs,” writes the Atlantic’s Adam Harris.


Private equity controls four of the nation’s top for-profit childcare chains (KinderCare, Learning Care Group, the Goddard School, and Primrose Schools), representing about 12% of the market. And while Harris says private equity often provides quality care for families, the business model “can also prove ruinous” by sucking out cash to pay down debt versus raising wages for workers.


In 2022, Dana Goldstein from the New York Times reported that childcare chains were mainly expanding in more affluent neighborhoods where families can afford the high cost of care – up to $40,000 annually for care in Manhattan. However, the greatest need for services is in places typically known as childcare deserts, rural areas, and low-income communities of color.


That split reality is another marker of how income inequality shapes access to basic necessities like child care, and how it has become harder for lower- and middle-income parents, usually women, to get back into the workforce after pandemic disruptions,” wrote Goldstein.


States like Missouri and Kansas have proposals that could provide tax incentives and regulatory relief for childcare providers to help buoy the broken business model that forces some providers to shutter their doors, like the recent closer of Waverly Forest Academy in St. Charles.


Potential Solutions:


Missouri - HB 1488 (Shields), which creates several tax credit programs for childcare providers and businesses to incentivize investment and provide relief, passed the House in early February and has yet to be referred to a committee in the Senate.


Kansas - Attorney General Kris Kobach received a proposed rule in October 2023 that would slightly adjust the regulations around ratios to help address the additional 84,654 slots needed to meet current demand. Kobach has yet to take action.


Governor Laura Kelly proposed investing $56.4 million in state funds for early childhood, however committees stripped much of her proposed investments from agency budgets that were directed towards child care.

About Aligned


Aligned is the only state-wide non-profit, nonpartisan business group working in Kansas and Missouri on educational issues impacting the full development of our children, from supporting high-quality early learning to solid secondary programs that provide rigorous academic programs and real-world learning opportunities.


Our vision is that our public education systems in Kansas and Missouri have the resources and flexibility to prepare students to pursue the future of their choice.


We are currently focused on education policies that will strengthen early childhood education, teacher recruitment and retention, and school finance reform.


Learn more about our work.

Missouri News

Senate Democrats play "Candy Crush"


The Missouri Senate underwent a tumultuous journey before finally passing a bill on Initiative Petition (IP) reform. Weeks of Republican infighting preceded a 20-hour filibuster by Democrats. Despite this, the Senate passed its version of the reform by a vote of 22-9


However, the process was not without its challenges. The "Freedom Caucus" injected controversy by pushing for ballot candy language which would prohibit illegal residents from voting, a move deemed unnecessary and misleading because it's already illegal.  


Senate Democrats initially obstructed progress with a filibuster, which lasted over 21 hours. Eventually, an amendment proposed by Senator Mike Cierpiot removed the U.S. citizenship language, leading to an unexpected coalition of 9 Democrats and 9 Republicans voting in favor. 


The bill ultimately passed along party lines, showcasing the challenges and occasional moments of cooperation within the Senate. The final language requires that a majority of voters statewide AND a majority of voters in each congressional district must approve changes to the constitution.


The House's proceedings this week showcased both productivity and some drama. Amidst sending six bills to the Senate and perfecting several others, Democrats criticized Republicans for their perceived inaction on addressing gun violence following the recent shooting at the Chiefs rally in Kansas City.


Unexpectedly, bipartisan opposition emerged against a comprehensive judicial reform package sponsored by the likable Rep. Rudy Veit. Lawmakers expressed concerns about the package's unvetted provisions and the lack of debate time, leading to a decision to send the bill back to Committee for further discussion.


Despite this setback, the House managed to pass its version of Initiative Petition (IP) reform which deals with more technical aspects of the IP process like requiring the usage of black ink for signatures and Times New Roman 12 pt font for petition language. It also states that if the courts change the ballot language, any signatures gathered prior to the change are invalid.


More on Initiative Petitions


State use of the initiative process dates back to the Progressive Era (1896-1917) when people felt that political bosses and corporations had too much power and wanted a way to allow the average person to become directly involved in the political process. Critics of that process today argue that initiatives undermine representative government. Missouri enacted its law after voters approved initiative and reform in 1907 by a 35,868 majority.


  • Read the Missouri Independent's story about the IP resolution here.


  • Did you know only 24 states use the Initiative Petition process? Read the report from the National Council on State Legislatures.


  • See which states here.



House Committee Activity


STEM Career Awareness - On Monday the House Education Reform Committee heard HB 1972 (Riley), which creates a fund for school districts to draw funds from for the purpose of incorporating STEM-based career programming into curriculum to promote STEM-based careers.


Afterschool Programming - On Tuesday the House Children & Families Committee heard HB 1928 (Gragg), which removes certain childcare licensing requirements for providers serving only school-age children in limited settings outside of school hours or the school day.


Childcare Omnibus - On Tuesday the House Children & Families Committee passed a substitute for HB 2183 (Hausman), which exempts property used for childcare from real and personal property tax (subject to approval by voters); establishes a SUCCESS tax credit for families of up to $1,800 per child under the age of 2 and $1,200 for children between the ages of 2 and 6; and removes certain restrictions of the source of funding for licensure and training requirements for employees of licensed childcare providers by a 9-0 vote.


DEI Spending Prohibition - On Tuesday the House General Laws Committee passed HB 2365 (Richey), which restricts state departmental funding from being used to implement or mandate DEI training or standards programs by a vote of 12-4. The bill was also combined with HB2619 (Smith), HB 2448 (Hudson) and HB 2569 (Baker).


Disapproval of DESE Rulemaking - On Wednesday the House Elementary & Secondary Education Committee passed SCR 23 (Schroer), a resolution disapproving of a rule promulgated by DESE which contradicts legislation passed by the General Assembly in 2022 and requires DESE to promulgate a new rule, by a vote of 16-0.


Media Literacy, Critical Thinking & Appropriate Online Behavior - On Wednesday the House Elementary & Secondary Education Committee passed HB 1513 (Murphy), which requires DESE to develop a two-year "media literacy and critical thinking" pilot program for participation by five to seven diverse school districts across the state beginning in the 2025-26 school year with the purpose of promoting a student's ability to access, analyze, evaluate, and participate in all forms of media with an emphasis on appropriate online behavior by a vote of 15-1.


Minimum Teacher Salaries - On Wednesday the House Elementary & Secondary Education Committee passed a substitute for HB 1431 (Haley), which increases the minimum teaching salary in the state to $38,000 for beginning teachers and $44,000 for teachers with a Master’s Degree and 10 years of experience and establishes a minimum yearly increase of between 1-3% to match the CPI by a vote of 15-1.


School Transportation Networks - On Wednesday the House Elementary & Secondary Education Committee heard HB 2423 (Gregory), which transfers the authority for conducting background checks on employees of school transportation network companies from a school district to the contracted company and changes the definition of "school bus" from a vehicle carrying more than 10 passengers to one carrying more than 15 to comply with insurance regulations. See Axios article on how school bus ridership is waning.


Senate Committee News


ESA & Charter Expansion - On Wednesday the Senate Committee on Empowering Parents & Children passed SB 1392 (Trent), which modifies several provisions governing the Empowerment Scholarship Account Program and expands charter school establishment eligibility to St. Charles, St. Louis and Boone Counties by a vote of 6-4.


Open Enrollment & Nonresident Student Transfers in Public & Charter Schools - On Wednesday the Senate Committee on Empowering Parents & Children passed SB 1051 (Trent), which establishes protocols for voluntary transfer of nonresident pupils between participating public and public charter schools in the state by a vote of 7-3.


Accountability Measures in Schools - On Wednesday the Senate Committee on Empowering Parents & Children passed a substitute for SB 1366 (Trent), which establishes certain accountability metrics for public schools in the state and requires DESE to develop metrics for achievement of career readiness standards by a vote of 6-4.


Minimum School Term - On Wednesday the Senate Committee on Empowering Parents & Children heard SB 784 (Beck), which establishes a minimum number of school days for districts implementing a 4 or 5 day school week and requires a majority vote of eligible voters in a school district to implement a 4 day week.


Parental Consent for IEP Modification - On Wednesday the Senate Committee on Empowering Parents & Children passed SB 812 (Coleman), which requires annual parental consent of student IEP's and parental consent for any modification, addition, or reduction of an IEP during the school year by a vote of 7-0.


Cardiac Emergency Response Plan - On Wednesday the Senate Committee on Empowering Parents & Children passed SB 1032 (Eslinger) & SB 1081 (Arthur), which require school districts in the state to implement Cardiac Emergency Response Plans (CERP's) and have on-site a working AED and protocols for proper use in a cardiac emergency by a vote of 9-0.


Reports


Read the full unabridged legislative report here.


See all tracked legislation here.

Budget News


House Budget Chairman Cody Smith (R-Carthage) has completed filing all FY2024 Supplemental and FY2025 Budget bills. It's worth noting that these filed bills incorporate both the Governor's recommendations and updated department requests.


While public testimony on the various budget bills was initially slated for this week, the delay in filing the bills means that testimony before the full Budget Committee won't occur until next week. Following the public testimony, committee members will begin drafting amendments to ensure the inclusion of their priorities in the House version of the budget.


A House rule stipulates that any allocation utilizing General Revenue (GR) or what is called "General Revenue look-a-like" must adhere to the balancing rule. Any amendment seeking to increase funding for an item using GR must correspondingly decrease GR elsewhere within the budget.

In other news


Aligned Priority Bills Report for Missouri


Very slow week for our bills. The only movement is highlighted below.


Early Childhood Education and Childcare


Free and voluntary Pre-K for all students who qualify for free- and reduced lunch

  • HB 1486 (Shields) - Heard in House committee on Elementary and Secondary Education. Reported Do Pass in House - Rules Legislative Oversight on 2/5/24. NO CHANGE


Child care tax credit package

  • HB 1488 (Shields) - Third read and passed 113-39 on 2/8/24. Reported to Senate and read first time. NO CHANGE


Teacher Recruitment and Retention


Differentiated Pay

  • HB 1447 (Lewis) - Voted and reported Do Pass as substituted on 2/14/24. NO CHANGE.


School Finance Reform


Alternative Poverty Metric

  • SB 1080 (Arthur) - referred to Senate - Select Committee on Empowering Parents and Children on 1/25/24. NO CHANGE.


Other education legislation


Open Enrollment

  • HB 1989 (Pollitt) - Third Read and Passed (Y-86 N-73) on 1/31/24. Reported to the Senate and not read. 1/31/24. NO CHANGE


Accountability Measures

  • HB 2184 (Haffner) - Public hearing completed. 1/31/24. NO CHANGE
  • SB 1366 (Trent) - Voted Do Pass as substituted. 2/21/24.


See status of all Aligned priority bills here.

Rep. Adam Smith, chairman of the House Taxation Committee, was not able to secure the needed two-thirds majority needed to override Gov. Laura Kelly's veto of a Republican tax bill. PHOTO CREDIT: Tim Carpenter/Kansas Reflector.

Kansas News

House Fails to Override Veto of Flat Tax Bill


In a closely watched decision on Tuesday, the Kansas House of Representatives failed to overturn Governor Laura Kelly's veto of a flat tax bill, dealing a significant blow to Republican lawmakers.


HB 2284, which aimed to implement a single-rate 5.25% income tax, fell short of securing the two-thirds majority needed for an override. With a vote of 81-42, the bill missed the threshold by four votes.


The debate over HB 2284 centered on its proposal for a single-rate tax structure, dividing lawmakers along party lines. Supporters argued it would offer tax relief to a broad range of taxpayers, with exemptions for the first $6,150 of individual income and $12,300 for couples filing jointly, benefiting hundreds of thousands of Kansas residents.


However, critics, particularly Democrats, contended that the bill disproportionately favored the wealthy and could exacerbate income inequality in the state. Representative Tom Sawyer urged a reevaluation, calling for a more equitable solution prioritizing middle-class taxpayers.


Despite efforts to rally support for the override, the bill faced opposition from within the Republican ranks, with five GOP members voting against it. Representative Randy Garber expressed skepticism about its prospects in the Senate and questioned continuing down a seemingly futile path.


The failure to override the governor's veto occurs amid fiscal discussions, as Kansas projects a substantial budget surplus by fiscal year 2025. While Governor Kelly warned of a potential special session without tax relief passage, House Minority Leader Vic Miller remains optimistic about finding common ground without additional legislative sessions.


As the tax policy debate persists, lawmakers grapple with reconciling competing priorities and crafting solutions that balance budgetary needs with resident interests. The failure of HB 2284 underscores the complexity of tax reform and highlights the importance of bipartisan cooperation in addressing critical issues.


Senate Ed Committee Approves Alternative Teacher Licensure Bill


As the first half of the legislative session drew to a close, the Senate Education Committee made significant strides on Monday by amending and approving a contentious alternative teacher licensure bill while voting down another proposal.


The committee's focus centered on SB 407, a measure that garnered criticism from both the State Board of Education and the Kansas National Education Association. At the heart of the bill was a provision requiring the state board to grant licensure to individuals who completed specific alternative certification programs.


Leaders from one such program, the American Board for Certification of Teacher Excellence, threw its support behind SB 407 and proposed an amendment that the committee adopted during Monday's session—this amendment aimed to address concerns raised by stakeholders and streamline the bill's language.


Key changes introduced by the amendment included removing a section stating that alternative certification applicants were exempt from certain state board requirements, such as completing pedagogy coursework or holding a license in another state. However, questions lingered about whether the bill would prevent the state board from imposing additional licensure criteria, such as classroom experience.


Tamera Lawrence, a revisor for the committee, highlighted that SB 407 mandated the state board to establish rules and regulations for its implementation. Additionally, the amendment incorporated technical adjustments to align the bill with existing Kansas State Department of Education standards and introduced a stipulation mandating participation in a mentorship program for teachers licensed through alternative pathways during their initial two years in the profession.


Despite lingering uncertainties and concerns voiced by lawmakers like Sen. Pat Pettey of Kansas City, who questioned the absence of proponents from the American Board organization, the committee ultimately voted to pass SB 407. Pettey had motioned to table the bill, citing unresolved issues surrounding the amendment, but her motion did not carry.


Sen. Chase Blasi of Wichita then proposed a substitute motion to advance SB 407, which received approval from the committee. The decision reflects the committee's determination to address challenges in teacher licensure while navigating complex legislative terrain.


As SB 407 moves forward, its impact on alternative teacher certification pathways and the broader education landscape in Kansas remains a subject of keen interest and scrutiny. With the legislative session resuming, stakeholders will continue to monitor developments in education policy, recognizing the critical role of teacher licensure in shaping the future of the state's educational system.


Kansas Senate Committee Withholds Funds Over DEI Practices


The Kansas Senate Committee took a firm stance regarding diversity, equity, and inclusion (DEI) practices in state universities, signaling a shift in legislative priorities and sparking debates about the role of race-based policies in higher education.


The committee's decision revolves around a proviso added to the budget, which directs a substantial sum—$36 million—from state universities to the State Finance Council. This allocation remains withheld unless universities can prove that they have refrained from certain DEI-related activities concerning hiring, admissions, and tenure decisions. The earmarked amount, equivalent to 5% of each institution's funds for salaries, contractual services, and commodities, underscores the committee's commitment to scrutinizing DEI practices.


The proviso's implications extend beyond traditional universities to encompass entities such as the University of Kansas Medical Center, the Kansas State extension systems, and the Kansas State University Veterinary Medical Center. To release the funds, school officials must certify compliance with the prescribed conditions before the State Finance Council—a body comprising the governor and bipartisan legislative leaders.


Republican state Sen. J.R. Claeys, the architect behind the proviso, clarified its intent, stressing that it aims not to burden universities but to halt race-based practices. Claeys underscored that the proviso does not demand deference but urges institutions to refrain from actions perceived as race-based.


This legislative maneuver aligns with broader efforts to address DEI issues in higher education, mirroring similar endeavors such as a House bill prohibiting universities from mandating statements on diversity, equity, or inclusion. The decision also intersects with discussions surrounding the reconfirmation of Jon Rolph, the Board of Regents chair, whose stance on DEI has stirred controversy among Republican senators.


The proviso's unveiling underscores the ongoing tensions surrounding DEI initiatives, prompting reflections on their efficacy and implications for academic institutions. As stakeholders grapple with these complex dynamics, the broader discourse around DEI in higher education is poised to evolve, potentially reshaping policies and practices across the educational landscape.


The outcome of this legislative maneuver remains uncertain, with implications reverberating beyond fiscal allocations to encompass the very fabric of DEI efforts in Kansas universities. As the debate unfolds, stakeholders must navigate the intricacies of race, equity, and inclusion, forging a path forward that reconciles competing priorities and fosters a more inclusive educational environment.


See status report for all education-related legislation.


Budget Update


Budget committees convened twice this week to address agency budgets. The House Appropriations Committee endorsed the Governor's suggestions for the Kansas Department of Health and Environment's budget while allocating additional funds for Kansas River cleanup in Topeka and Lawrence. They also earmarked $28 million from various funds for World Cup efforts in Kansas and redirected funding for business apprenticeship programs to the Board of Regents budget.


Meanwhile, the House deferred action on the Department of Wildlife and Parks budget, citing concerns over land maintenance. Conversely, the Senate Ways and Means Committee discussed the same budget, opting to remove funding for land acquisition in Jewel County.


Both chambers also addressed the Kansas State Fair budget, highlighting increased attention due to aging infrastructure needing significant updates.


Read our full legislative report.


Key 2024 Legislative Deadlines


  • March 22 - Last day for non-exempt committees to meet 
  • March 28 - Last day for non-exempt bills in either Chamber 
  • April 5 - First Adjournment (Drop Dead Day) 
  • April 29 - Veto Session begins


In other news


New report shows why K-State is smart investment

How high school grades have inflated since 2010

Rankings: Best public school in Wichita

Op-ed: Book banning in Kansas

Pictured above: T. Kim Goodnight

Kansas native and longtime leader joins board

Aligned is excited to announce the addition of T. Kim Goodnight to our board of directors. Kim brings a wealth of experience to our team as the regional manager for local government and community affairs/stakeholder relations at ITC Great Plains. He wears multiple hats in this role, traveling extensively throughout the Great Plains states.


A sixth-generation southwest Kansan, Kim has deep roots as a rancher and farmer in Meade and Ford County. With 11 1/2 years of service as a Ford County Commissioner, he played a crucial role in developing agreements for wind farm development. Additionally, Kim is a dedicated member of the Boot Hill Museum and the founder of the Kansas Cowboy Hall of Fame.


Kim and his wife, who have been married for 45 years, reside in Maize, Kansas. We are thrilled to welcome Kim's leadership and expertise to our team.


February is clearly not making us shiver...enjoy the weekend!

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Torree Pederson

President

Aligned

Torree@WeAreAligned.org

(913) 484-4202

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Linda Rallo

Vice President

Aligned

Linda@WeAreAligned.org

(314) 330-8442

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