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Please note that this is a summary of the bill as it came out of the Senate Finance Committee. It is not an exhaustive summary of the bill, which includes several issues not listed here.

Teacher salaries

Provides a $2,000 pass-through, across-the-board increase in salaries for teachers, counselors, nurses and librarians.

Retiree exception to the salary schedule

Provides that districts are not required to pay at least the state minimum salary for retirees who have returned to work.

A Senate floor amendment removed this provision.

Incentive pay

Includes two major incentive pay programs, one of which would expand the governor’s incentive program from the current $10 million to $98 million. The second program would apply to all schools (not only those with a high percentage of economically disadvantaged students, as in the governor’s program) and would significantly expand the use of incentive pay based on student test scores, though 40 percent of funding could be used as stipends for mentoring, subject area shortage teachers, teachers in hard-to-staff schools, teachers with advanced degrees, principals demonstrating effectiveness in improving student performance and other employees demonstrating excellence.

Health insurance supplement

Continues the $500 supplement for teachers, counselors, nurses and librarians, though the funding is converted to salary. Continues the $500 supplement, converted to salary, for other employees currently receiving it (i.e., non-administrative employees), but eliminates the supplement after the 2006-07 school year.

A Senate floor amendment removed the provision eliminating the supplement after the 2006-07 school year.

Meeting the Supreme Court mandate

Utilizes more than $2 billion in state funding to reduce local property taxes to $1.33 for districts currently at the $1.50 cap, providing districts with "meaningful discretion"in setting their tax rates.

School start date

Provides that school must start on the fourth Monday in August, with no exceptions or waivers, beginning with the 2007-08 school year.

School district financial accountability

Requires the commissioner to establish and publish annually proposed expenditures for districts based on an evaluation of information relating to the best practices of campuses and districts in the areas of instruction, public school finance, resource allocation and business practices. Also requires districts to post a summary of the proposed budget on the district’s website or in the district’s administrative office.

Intervention for low-performing campuses

Includes a comprehensive plan for addressing low-performing campuses, including the potential assignment for technical assistance or campus intervention teams. Eventually, alternative management could be ordered, under which a private non-profit entity could take over the management of the school.

College readiness / “4 X 4” program

Provides that the recommended high school program must require four credits in each subject of the foundation curriculum (math, English/language arts, science, social studies). Includes additional funding of around $200 per student to fund high school reforms to improve college readiness.

Textbooks

Eliminates the current and upcoming proclamations for textbooks, including elementary math, reading, and Spanish language arts textbooks.

A Senate floor amendment will allow the Proclamation 2005 textbooks (elementary math) to go forward as planned, but subsequent textbook proclamations would still be on hold.