Dr. Chuck Essigs, AASBO Director of Governmental Relations

Sales Tax $4.3 billion 52%Individual Income Tax $2.5 billion 31%Corporate Tax $0.6 billion 7%Other $0.86 billion 10%

Total $8.2 billion

One cent sales tax ends in FY2014 - $1 billion

K-12 rollover - $1.2 billion (estimate)

Suspended funding formulas - $1 billion

Increased cost to State from AV decline

Estimated revenue in FY2014 of $8.46 billion

Vs. actual revenue in:FY2005 of $7.72 billionFY2006 of $9.26 billionFY2007 of $9.62 billion

Soft Capital $165,120,700 New Utilities $100,000,000 Charter School Add’l Assistance $10,000,000 Building Renewal $241,593,600

$516,694,300

*No estimate for New School Construction

Full-day K $218 million

No inflation increase for Base Formula over $50 million

Classroom Site Fund over $200 million

FY 2011 $550 million

FY 2012 $1.0 billion

FY 2013 $600 million

FY 2014 $1.1 billion

First Things First Loan $330 million Add’l K-12 Rollover $245 million* K-12 Federal Jobs Funds $101.2

million DES Reductions $91 million Fund Transfers $65.6 million Medicaid Provider Cut $17.3 million One-time Corrections Svgs. $10 million

Medicaid (AHCCCS) Rollback $541.5 million University Reductions $170 million Reinstate AHCCCS Rollover $115.4

million Fund Transfers $87.5 million DES Reductions $91 million Provider Cuts $89 million Comm. College Reductions $72.9 million

Almost $1.2 billion

CORL and Add’l Assistance Reductions ($62/student) $66.6 million Cut to Arizona Online

Instruction (AOI) $11.6 million Phase Down of Career Ladder $5.6 million

$600 million more than Governor’s Proposed Budget

K-12 $200 million / More or Total?

Current QTR $2.9594 Unified / $1,4797 Elementary and High School

Proposed (FY2012) $3.5364 Unified / $1.782 Elementary and High School

State Equalization Rate Current is $0.3564 proposed (FY2012) is $0.4259

HB 2002 (school district monies; associations; elections) As amended, this bill would prohibit school

districts from paying for membership in an association that attempts to influence an election.

Reduces time frame for closing schools Classroom Site Fund - $120 and supplanting

for FY2012 Override calculation relief continues for

FY2012 – Base level and Full Day K Changes performance pay for

Superintendents – Excludes benefits and sets amount up to 20%

Flexibility on disposal of equipment, furnishings and supplies

For FY2012 and 2013 allows unrestricted capital to be used for any capital or operational expense (excludes SFB and override funds)

For FY2012 and 2013 permits carryover in excess of 4%

HB 2301 (schools; instructional salaries; soft capital) Requires school districts to spend at least 50% of their

M&O budget on teacher salaries and lifts the restrictions on use of the Soft Capital Allocation

HB 2421 (school districts; budgets; financial reports) Requires school districts to make certain fiscal documents

available for viewing on their websites and makes changes to reporting requirements for budget override spending.

HB 2572 (government expenditure database; transparency; CAFR) Requires the Arizona Department of Administration and

each local government to post the comprehensive annual financial report of a budget unit on their official Internet website

SB 1451 (high schools; board examination systems) Clean up bill for the Grand Canyon diploma

SB 1452 (schools; e-learning programs) Establishes the Arizona Digital Learning Center and

specifies program requirements SB 1455 (AP teachers; bonus pay; weight)

Establishes a teacher performance pay system based on student performance on Advanced Placement exams

SB 1167 (ASRS; comprehensive amendments) Requires Alternate Contribution Rate (ACR) beginning July

1, 2013 to be paid for a retired member that returns to work and performs services as an employee or contractor

HB 2726 (public retirement system; plan design) Eliminates 85 point provision for employees starting work

after July 1, 2011 and sets the normal retirement age at 62 with 10 years of service or age 65

Requires Alternate Contribution Rate (ACR) for retired members who continue to work after July 1, 2012

Removes Permanent Benefit Increase (PBI) Establishes a defined contribution study committee

consisting of members of the State Board of Investment

SB 1312/HB 2581 (STOs; credits; administration) Expands the STO tax credit to allow credits against luxury

tax and severance tax for contributions made to STOs for scholarships awarded to low-income, displaced and disabled students, in addition to the credit already afforded to income tax and premium insurance tax

SB 1553/HB 2706 (education; Arizona empowerment accounts.) Establishes and prescribes rules and requirements for the

Arizona Empowerment Accounts program (essentially a voucher) for special education students

SB 1116 (displaced pupils choice grants; continuation) Permanently continues the displaced pupils choice grant.

HB 2670 (school districts; electronic record keeping) Allows school districts to maintain their public

records in electronic format

SB 1072 (school boards; election cancellation; certificate) Requires the county school superintendent to issue a certificate of election to

a person who is appointed to fill a school district governing board when the election was cancelled due to only the number of persons filed for the number of positions up for election.

SB 1577 (s/e: county school superintendent; powers; duties) Removes from the powers of a county school superintendent to appoint

school district governing board members to fill vacancies on a board Allows a school district governing board to appoint members to a governing

board to fill vacancies. SB 1303 (schools; dropout recovery programs)

Establishes a dropout recovery program and specifies program requirements and funding

Voluntary for school districts HB 2219 (s/e: study committee; unification; consolidation)

Establishes the 16-member Joint Legislative Study Committee on School District Unification and Consolidation

SB 1518 (school districts; capacity; charter schools) Suspends any School Facilities Board (SFB) New School

Facilities Fund (NSFF) monies for school district requests related to actual or anticipated student capacity needs from FY 2012 through FY 2014

Outlines addressing school capacity needs through existing or new charter school and public school arrangements

SB 1422 (school facilities board; school closures) Would have allowed the school facilities board to

determine whether a school within a school district should be closed. (Now operational under SB1263)

SB 1611 (immigration omnibus) Makes numerous changes to immigration statues Requires that a school or school district notify a

person enrolling a student that within 30 days the person must provide one of nine stated documents

SB 1308 (interstate compact; birth certificates) Authorizes and directs the Governor to enter into an

Interstate Birth Certificate Compact with other states

SB 1309 (Arizona citizenship) Establishes criteria for Arizona citizenship

HB 2234 (persistently lowest achieving schools) Allows the State Board of Education (SBE) to assign a

school a letter grade of F under AZ LEARNS if the school is among the persistently lowest-achieving schools

SB 1420 (school districts; competitive bidding; filing) Reestablishes the administrative reduction measure

to require a school district to procure services by competitive bidding in order to place a student in a private school and when a party to an intergovernmental agreement. (might be withdrawn)

Prop 301 Lawsuit

Charter School Lawsuit