Area 30 board worried about potential state funding changes

Career and technical education programs across the state of Indiana may soon have to worry about budget cuts if new legislation were to be moved forward as proposed by the Center for Education and Career Innovation (CECI).

Area 30 Career Center Director Lora Busch came before its board of directors early Tuesday morning to discuss the issue, as the career center could stand to lose thousands of dollars through the proposal, which is looking at changing the career and technical education funding formula for schools from enrollment based to outcome based.

"The Indiana Association of Career and Tech Ed Directors are very concerned about these funding changes because we believe they will have a negative impact on career and tech ed," Busch explained. "The funding formula is currently based on enrollment numbers and it allows us to set a budget in May through July. It also allows us to be able to offer certain programs because we know the funding is based on enrollment. The CECI study would like for us to base the formula on outcomes, which are not specific yet. The ones that are recommended are graduation rates, post-secondary enrollments, completions, wages and assessments for all groups."

The state current CTE (Career and Technical Education) funding formula has remained unchanged since 2001 despite the growing cost of operating career and technical education programs. "Currently, this funding is based upon enrollments in CTE courses," Busch said. "The amount of funding a course receives is dependent upon it being a foundation course or a career program where the level of funding is dependent upon its wage and demand level.

"We believe that we are being unfairly targeted to meet certain outcomes that other funding formulas do not require," Busch explained. "This could reduce funding for career and tech ed all across the state. Some schools may get more, some schools may get less."

In stressing the importance of career and technical education, Busch cited a recent study, College and Career Ready: A Progress Analysis of Indiana's Career and Technical Education Programs, which supports career and technical education -- noting a 94.7 percent graduation rate in 2013 compared to the state average of 88.6 percent.

"The graduation rate for CTE concentrators (those earning six credits or more in a career pathway) has exceeded the state average for the past five years and continues to grow," Busch added. "Seniors who are CTE concentrators outperform all other students when it comes to passing Algebra I and English 10 ECA exams. Within six months of graduation, 94.8 percent of CTE concentrators show a positive placement in employment, college and/or the military."

So, with the possible change in the funding formula, Area 30 along with career and technical education schools around the state could see the change implemented as soon as next year.

"One of our biggest concerns is that they're considering if this passes, implementing it next school year and here we are almost in December and we don't know what the outcomes are," Busch said. "They have not given us hard facts. The funding formula should not change, but career and tech ed should receive additional money on top of what we're currently getting."

Area 30 Career Center Board President Terry Terhune, Superintendent Eminence Community School Corporation, also reiterated the important of career and technical education continuing to receive funding based on enrollment and that the recommended changes would not be good for students.