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their region by family matters. These people would be excellent teachers. They will not be recruited away, and they will teach in schools in their region. The University of Northern Iowa and the Des Moines Area Community College have such a program in Carroll where DMACC teaches the first two years following UNI requirements. The second two years are taught by UNI faculty, both in person and over the ICN. Of the twenty-five graduates from this program to date, twenty- three are teaching in schools in the region. The program would not require new bricks and mortar and would only involve some additional personnel. They could be taught on community college campuses throughout the state. It will only be successful however, if both sectors work together in a cooperative fashion, do not try to make the program into a profit center, and use bona fide faculty. If the college does not utilize instructors who would qualify to teach on their campus, then the programs become a farce, which must be guarded against. I strongly recommend that such a program be put into effect statewide to help address our teacher shortage. Additionally, I understand that the teacher shortage is more acute for certain subjects. Why not give school boards authority to establish pay differentials? If a board determines that they have a special need for a physics teacher, why shouldn't the board have authority to establish a salary above the level that teacher would receive under the district's salary schedule? I also note increased discussion for school reorganization. Some schools today are clearly too small. I recommend to you the Great Plains Report, which was commissioned by the Legislature in 1964. The last time I checked there was one copy remaining in the Service Bureau Library. The report looked at school districts and concluded that there was an optimum size -- that districts could be too large and too small. The per pupil cost was like a bell curve. Districts that were too large or too small could be given incentives, beyond what exist today, to merge. You could consider county-like districts in rural areas where several districts would be merged with one superintendent and one board but with multiple attendance centers. Thus, in a rural county with four districts predominantly within the county, they could still retain their four high schools with all the extra-curricular activities remaining in the community but sharing faculty and even facilities. There would be some savings, but also some additional transportation costs. Students would have the advantage of more class offerings and better qualified instructors in some instances. Lastly, I find myself perplexed by one action, or inaction, of this General Assembly. Some years ago you created rainy-day funds. This was even discussed in antiquity when I was down here, and it should have been enacted then. You showed foresight when you created these funds. What I fail to understand is your failure to utilize the funds now that there is a downturn in our economy and the state's revenue has fallen substantially below projections. While some may think this is not an emergency, it certainly seems so to me. Why else create the fund, if not to use when revenue dips substantially. When the economy starts to grow again, you can start to replenish the fund. What you must realize is that state programs can certainly be cut, but when they are, there are repercussions to some of the people. Sometimes it takes years before the total impact is understood, but it does have an effect. For example, cut funds to prisons, and you are encouraging more overcrowding than we now have and a takeover by the federal courts. Cut school aid, and gradually the quality of our schools and the
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