Chuck EssigsArizona Association of School Business OfficialsApril 22, 2010

By March 30th Joint Legislative Budget Committee shall determine a per pupil amount for the budget year……….

What Changed – New language, “Adjusted for any prior year carry forward or shortfall” FY2011 First Year for Implementation

Allocation from ARS 15-979 (per weighted student)

Unexpended budget balance from prior year

The net interest earned during the prior year

Year Budget Capacity Total Available Difference

FY2002 $272.42 $272.15 <$0.27>

FY2003 $239.47 $239.32 <$0.15>

FY2004 $230.00 $230.00 0

FY2005 $242.00 $242.00 0

FY2006 $353.00 $320.43 <$32.57>

FY2007 $333.00 $333.07 $0.07

FY2008 $401.00 $397.10 <$3.90>

FY2009 $390.00 $259.45 <$130.55>

FY2010 $244.00 $216.00 <$28.00>

Total $2704.89 $2497.17 <$195.37>

Ave. $300.54 $277.46

FY2011 – per weighted count $220

Prior Year Shortfalls $195

FY2011 – Amount = $25 per weighted student

*Adjust to shortfall total in FY2011

Proposal/Adjust Over Two Years Current

FY2011 $220-$25 <$195>

Proposed FY2011 $220-$120 <$100>

Leaves $95 shortfall for FY2012

Current FY2012 $220* $220 Budget Amount

Proposed FY2012 $220*-$95** $125 Budget

Amount

Leaves $95 shortfall for FY2012

*Based upon $220 available from Classroom Site Fund in FY2012**$95 shortfall from FY2011

Additional teacher compensation money from sources other than Classroom Site Fund for FY2011.

Not considered supplanting for FY2012 calculation.

Base Level $3267.72/ with teacher comp $3308.57 (No change from FY2010)

Transportation $2.32 inc. to $2.35 and $1.89 inc. to $1.91 (Remember 120% limit TRCL vs TSL)

Additional assistance for charters K-8 inc from $1588.46 to $1607.50 and 9-12 from $1851.30 to $1873.52 (later reduced)

Reduce soft capital by $165.1 million (Est. 80%)

Districts with less than 600 cut is 50% (Est. 40%)

Eliminate Group B weight for K students ($218 million)

Reduce additional assistance for charters by $10 million (Est. $85 per student/ 116,781 charter students)

Suspend building renewal formula Suspend utility funding formula Allows charging tuition for K students Sets Career Ladder at 5.0% (Same as FY 2010) Permits school districts to expend soft capital

monies for any capital of operational expense Eliminates non-formula funding programs (Exempt

for Voc. Block Grant) School Safety Program (40% General Fund Gone/

60% Prop 301 Remains)

Suspend Soft Capital ($47 million) and CORL Funding ($248 million)

Reduce base level by $102.7 million (2% Reduction)

Reduce additional assistance for charters by $31 million (Est. $265 per student)

Total $428 million

Change calculation of homeowners rebate (additional state aid) to 40% of primary taxes or 40% of QTR amount whichever is less

Impact on homeowners property taxes Example

$5.00 Primary Rate - $2.00 Reduction▪ $5.00 – (40% / $2.00) – Effective $3.00 Rate

$2.80 QTR - $1.12 Reduction▪ $2.80 – (40% / $1.12) – Effective $3.88 Rate

Provides technical corrections to override laws Removes requirement to budget and report

separately for special program overrides and eliminates ability to carry forward 50% of unspent special program override

Holds districts harmless for reductions to overrides from elimination of Group B K weight (Senate Education Amendment

Holds districts harmless for reductions to overrides from reductions to base level if sales tax election fails ($102 million)

Change 80 points to 85 points Retirement calculation based on 60 months,

not 36 months Member who leaves after 5 years gets

member contributions plus 25% of employer contributions

Return to work still an issue

(53 yes votes in House/29 yes votes in Senate)

School districts shall not adopt policies for teachers that provide retention priority based upon tenure or seniority.

Contracts shall not include compensated days for professional association activities

Removes April 15 notification and March 15 through May 15 date for issuing contract

Changes time to return contract to 15 days Changes ARS15-544 to allow board to reduce salaries

or eliminate certificated teachers. Eliminate notice by May 15 of prior year.

Numerous charter school changes Teacher certification changes Eliminates bid requirement for Special Ed. Students placed in

ADE approved private schools Allows district board to establish multiple bank accounts to

deposit miscellaneous receipts Reduces required time in 7th and 8th grades from 1068 to

1000 hours Allows non-career ladder districts to budget 3% outside RCL

for teacher performance pay for FY2011 (FY2012 4%, FY2012 5%, FY2014 5.5%, but requires voter approval)

HB2732 Student cannot be promoted from 3rd grade if

testing indicates that student is far below 3rd grade level

Requires State Board to develop intervention and remedial strategies that districts need to use

SBE Task Forces reports 1/15/2011/ program delayed 2012-2013

SB1323/ HB2385 Problems with SAIS Pick points in time instead of 100 day average – September

15, November 15, January 15 and March 15 Funding on membership but absence data must still be

reported Delayed implementation (Effective June 30, 2011) Example is STAR in New Mexico 200 Day Calendar - 5% base level increase/ Must increase

Instructional Hours by 10%

HB2521 – Requires superintendent contract to include at least 20% of salary as performance pay (55 – 0 Vote in House)

S1188 – County School Supt. Required to file a copy of revenue estimate to set tax rate with Property Tax Oversight Commission. The projected ending cash balance, adjusted for encumbrances and payables must be certified by district

HB2282 – Website information on receipts and expenditures. ASBA and AASBO oppose and are trying to get an alternative put in place.

Implementation date January 1, 2013 Available on website – all revenues and

expenditures over $5,000 Be searchable, updated at least every 3 months and

retained for at least 3 years To mirror requirements for ADOA Website (January

2, 2011)