AASBOAASBOLegislative UpdateLegislative Update

Chuck EssigsChuck Essigs5353rdrd Annual Conference Annual ConferenceJuly 2006July 2006

HB2066 – Charter School HB2066 – Charter School Teachers; Grading; ImmunityTeachers; Grading; Immunity

Definition changed from certified teacher to teacher employed by a school district or charter school for immunity related to evaluating or grading a student. (Chapter 16)

HB2082– Charter School HB2082– Charter School Teachers; Grading; ImmunityTeachers; Grading; Immunity

ASRS member must notify their current spouse before naming a beneficiary or contingent annuitant other than their current spouse. (Chapter 103)

HB2103 – ASRS; Local Termination Incentive Program

Employer retirement incentive option is amended to replace the word “retirement” with the word “termination”. (Chapter 106)

HB2322 – Driving Schools; Limitation of Hours

Defensive driving school sessions cannot exceed 4.5 hours, including any class related testing, reviewing and grading. (Chapter 23)

HB2340 – ASRS; Deferred Retirement; Repeal

Repeals DROP program. (Chapter 11)

HB2359 – School Profiles; District Accountability

Modifies procedures for ADE to deal with underperforming schools and action plans. (Chapter 240)

HB2360 – Tax Exemption; Food; School

Exempts certain vendors that provide hot prepared food to school districts, charter schools or private schools for consumption during school hours from sales tax. Retroactive effective date from and after 12/31/99. (Chapter 321)

HB2505 – School Budgets; Annual Reports

Permanently eliminates the need for school by school budgets. (Chapter 379)

HB2552 – Schools; Gifted Pupils; Programs; Funding

Increases requirements for school districts

Requires guidelines from SBE

Increases funding from $55 per student for up to 3% to $75 per student for up to 4% (Chapter 336)

HB2583 – Educational Classrooms; Flag Display

Requires flags in all classrooms (manufactured in U.S.; at least 2’x3’)

Existing flags can still be used

Copies of U.S. Constitution and Bill of Rights for grades 7 through 12

Effective July 1, 2007

HB2592 – School Buildings; Developer Partnerships

Allows agreement between developers and school district to build school with private funds. (Chapter 382)

HB2676 – Private Schools; Scholarships; Disabled Students

Appropriates $2.5 million for the program

Option to attend any public or private qualified school

Maximum amount lesser or base support level from A.R.S. 15-943 or private school costs or tuition (Chapter 340)

HB2700 – JTED; Omnibus

Changes a number of provisions for the operation of JTED programs:

Increases responsibilities of JTED governing board for all courses.

Prohibits a JTED from using money to supplant vocational courses in equipment and facilities.

Prohibits JTED from Adjacent Ways levy. Precludes pupils in grade 9 from

counting for JTED funding. Requires IGA agreements. (Chapter

341)

SB 1041 – Election Law Revisions

Multiple election law changes, including mailing of publicity pamphlet to each household with an elector versus existing requirement to mail to each elector. (Chapter 44)

SB1094 – School Boundary Changes; Financial Impact

Follow up language to last year’s bill on requirement for unorganized area to join a school district if 150 or more students attend school district. (Chapter 217)

SB1164 – Displaced Pupils; Choice Grants

Appropriate $2.5 million for the program

Lesser of $5,000 or tuition cost

Students placed in foster care are eligible

SB1205 – Schools; Transportation RCL; Limited Increases

Funding formula based upon 180 days

Transportation Revenue Control Limit shall not increase if the TRCL is more than 120% of TSL

SB1257 – School Districts; GITA Technology Standards

ADE to put GITA educational technology standards on web site

School governing board, within one year, must hold a public hearing and vote on adoption of standards. School district staff may propose exceptions.

SB1270 – Top 50 Schools; Publication

Requires ADE to have internet listing of top elementary, junior high, high school and charter school in the state with ranking based on academic gain in several categories. First listing in 2007-08 is limited to 50 schools with subsequent years, including all schools that meet established criteria. (Chapter 200)

Major Funding Issues

Base level increase of 4.4%Increased from $3,001 (2005-06) to $3,133.53 (2006-07) w/o Teacher Comp.

Teacher Comp add 1.25% = $3.172.70

Base Level Increase

$100 million appropriated($72.51 base level increase)

“The funding appropriated in subsection A of this section shall be used to provide salary and benefit increases for school district and charter school non-administrative personnel.”

New K Weight (Group B)

For 2006-07 0.835

For 2007-08 and thereafter 1.352

K-3 weight unchanged 0.060

Tax Changes

Sets County Education Rate at $0 for next 3 years and changes name to State Equalization Rate

Pays off $191 million K-12 rollover in 2006-07

Sets QTR at $3.4788 for unified districts and $1.739 for elementary and high school districts for 2006-07

School Facilities Board

Appropriation of $86.3 million for Building Renewal

Change in Building Renewal Formula (veto)

Election Dates

Requires all secondary elections, bonds and overrides, to be held in November

Effective after June 30, 2007 for M&O overrides

Total Estimated Classroom Site and Instructional Improvement Dollars2006-07

Classroom Site Fund $406,550,500Instruc. Impr. Fund $ 42,000,000TOTAL $448,550,500

Equal to an 11% increase in the base level

First 5 years inflation of 2% per year under Prop. 301

Aggregate Limit

Includes – most M & O expenditures and capital outlay, including Federal Impact Aid

Excludes – federal grants, capital levy and debt service

The Limit Was Exceeded Twice 1986-871986-87 However, on 11/4/86, voters However, on 11/4/86, voters

approved a 10% increase approved a 10% increase

2001-022001-02 However, the Legislature voted However, the Legislature voted to to

override the Limit and on 11/5/02,override the Limit and on 11/5/02, voters approved the exemption of voters approved the exemption of sales tax sales tax revenue and state trust land revenue and state trust land revenues from the Classroom Site revenues from the Classroom Site Fund from the LimitFund from the Limit

Constitutional Limit Calculation

2006-07 Limit $4,973,987,218

2005-06 BudgetedExpenditures $4,579,856,069

AllowableIncrease $394,131,149$394,131,149