January 2010 Daily In-Session Updates

► January 28, 2010
Daily In-Session Update 

Today, the House fast tracked HB 2250 (Arizona’s job recovery act) through Committee of the Whole and then immediately passed it on Third Read on a 34-25 vote. It only passed the House Ways and Means Committee on Monday! This bill: 1) establishes a new Arizona Job Training Program; 2) establishes the Arizona Quality Jobs Program and the Arizona Opportunity Fund; 3) expands the type of businesses that qualify for Enterprise Zone tax incentives; 4) reduces the Class 1 business property assessment ratios from 20% to 15% over five years beginning in tax year  2012; 5) phases down the state equalization property tax over three years; 6) decreases the corporate income tax rate from 6.968% to 4.5% over four years beginning in tax year 2011; 7) and lowers the individual income tax by 10% over four years beginning in tax year 2011. ASBA testified as neutral on the bill in Ways and Means Committee stating that the bill as currently written is not agreeable; however, eager to engage in structural tax and revenue discussions to ensure state competitiveness in both business and education. We are very disappointed to see this bill fast tracked when there is so much at stake with our current fiscal situation and the dire need Arizona has for tax and revenue reform. ASBA is still committed to working on a solution, but is now opposed to the current bill.
 
Further, the House Study Committee on the American Recovery and  Reinvestment Act met this afternoon and heard presentations from the Governor's Office on the State Fiscal Stabilization Fund (SFSF) and Race to the Top and the Arizona Department of  Education on the Education Funds Direct to Schools. For the SFSF funds, there is one item of  note. We've previously told you that K-12 education SFSF funds would be exhausted in Fiscal Year 2010 -- that is not the case. Monies could not be expended in time for FY09 needs; thus, $472.2 million is distributed in FY10 and $92.8 million for FY11. It doesn't change the total distribution of $565 million in federal stimulus dollars for Arizona K-12 schools; however, it should put to rest any disagreement about the need to uphold the maintenance of effort requirement at the Fiscal Year 2006 level through Fiscal Year 2011. For Race to the Top (RTTT), there are two items of note. First, 375 LEAs signed the Memorandum of Understanding, which represent 77% of all schools, 88% of all students, and 92% of all students in poverty. Second, the US Department of Education will notify state RTTT semi-finalists, who will then provide an oral presentation on March 15th in Washington, DC. Phase I awards will be announced in April.

►January 27, 2010
Daily In-Session Update This afternoon, the Senate Committee on Education Accountability and Reform met to approve executive nominations and consider bills.  SB 1172 (schools; gun safety programs) expands the list of qualified Arizona Gun Safety Program course instructors.  ASBA was neutral on the bill and it passed, with amendments 7-0.  SB 1184 (union high schools; additional grades) allows union high school districts to offer instruction in grades seven and eight but stipulates no additional funding from SFB will be available.  ASBA was neutral and the bill passed 4-3.  SB 1185 (common school districts; grade nine) allows elementary school districts to offer instruction in grade nine; but again, no additional funding from SFB would be available.  The bill passed 7-0 with an amendment stipulating grade 9 instruction can only be offered in facilities offering instruction in grades 7-8; ASBA was neutral. SB 1187 (school facilities board; vacant land) allows the SFB to require a school district to sell land previously purchased with SFB provided funds if the land is no longer needed for a new school or an addition to an existing school within ten years.  The bill passed 4-3; ASBA was neutral.  Last, SB 1188 (school district monies; annual estimate) adds the Property Tax Oversight Commission to those a county school superintendent reports the estimated amount of monies each school requires for the upcoming year, equalization assistance and levy amounts.  The bill was held.

►January 26, 2010
Daily In-Session Update 

Today, the Joint Legislative Budget Committee (JLBC) released its “Shortfall Options List.” JLBC estimated the current FY10 budget shortfall to be $1.45 billion and have provided $2.34 billion in options. The options for K-12 education include:
• $44.7 million in district lump sum reduction (just under 1%)
• $100 million in district  balances rollover (this seems to be similar  to the fund balance     sweeps experienced last year)
• $70.9 million cut to soft capital (this would eliminate all soft  capital funding for FY10)

JLBC is estimating the FY11 budget shortfall to be $2.59 billion and have provided $6.12 billion  in options. The options for K-12 education include:
• $100 million in district lump sum reduction (approximately 2%)
• $98.4 million cut by reducing the school year from 180 to 175 days
• $3.9 million in Career Ladder phase-out (while details aren’t  available, we assume this would take the current one-year phase down  from 5.5% to 5%, make that permanent with another .5% reduction … all  in all making it 4.5%)
• $7.3 million cut in Teacher Experience Index (TEI) phase out
• $57.8 million in eliminating the “hold harmless”(not clear what this  is; stay tuned)
• $218.3 million in eliminating full-day kindergarten
• $70 million cut to soft capital funding
• $4.6 million in ADE lump sum reduction

This afternoon, the House Government Committee met to consider bills, two of which affect K-12 education. HB 2395 (schools; payroll deductions; union dues) was held. This bill would prohibit a school district governing board from authorizing an automatic payroll deduction for dues to a recognized certificated teacher and administrator association. ASBA opposes this infringement on local control. A strike-everything amendment was adopted on HB 2282 (government transparency; political subdivisions) on the same subject and passed on a 6-3 vote. This bill would require school districts, along with other local governments, to establish and maintain an official website of receipts and expenditures by January 1, 2012. ASBA testified in soft opposition, as we oppose this administrative burden as written; however, the sponsor has agreed to work on language and ASBA’s efforts will be to implement last year’s compromise.

►January 25, 2010
Daily In-Session Update 

Today was a busy Monday for Education!　 First, the State Board of Education met to cover a lengthy agenda which included legislative updates from the education organizations as well as priority setting for the Board for the 2010 legislative session.　 In addition, the Board opened rulemaking for language that would make important steps to expand alternative certification in Arizona.　 Look for a detailed summary from ASBA later this week.In addition, the House Education Committee met to consider 5 bills.　 HB 2080 (pupils with chronic health problems) passed 9-0 with 1 member absent.　 This bill expands the types of health professionals who may certify that a pupil has a chronic health problem.　 ASBA was neutral.　 HB 2127 S/E: (JTED; centralized campus; funding)　 makes changes to the calculation of daily attendance for students enrolled in both a member school district and JTED courses.　 ASBA　supports.　 HB 2287 (accommodation schools; levy limit recalculation) stipulates that an accommodation school is not permitted to levy primary or secondary property taxes, and that any property tax levied by a county to support an accommodation school must count towards the county’s primary levy.　HB 2401 (teacher loan program; geographic shortages) allows Mathematics, Science, and Special Education Teacher Student Loan Program recipients to fulfill their service commitment by providing instruction in any subject if the public school is experiencing a shortage of teachers.　 ASBA supports. Also, the House Ways and Means Committee met to consider HB 2250 (Arizona’s job recovery act), which passed on a 6-2 vote. This bill would: 1) establish a new Arizona Job Training Program; 2) establish the Arizona Quality Jobs Program and the Arizona Opportunity Fund; 3) expands the type of businesses that qualify for Enterprise Zone tax incentives; 4) reduces the Class 1 business property assessment ratios from 20% to 15% over five years beginning in tax year　 2012; 5) phases down the state equalization property tax over three years; 6) decreases the corporate income tax rate from 6.968% to 4.5% over four years beginning in tax year 2011; 7) and lowers the individual income tax by 10% over four years beginning in tax year 2011. ASBA testified as neutral on the bill acknowledging that the bill as currently written is not agreeable; however, we are eager to engage in structural tax and revenue discussions to ensure state competitiveness in both business and education.

►January 21, 2010
Daily In-Session Update 

►January 20, 2010
Daily In-Session Update 

It was a busy day today! The morning started with the Committee on Military Affairs and Public Safety, which heard two bills, one statutory (HB 2188) and one a ballot referral (HCR 2007), to allow trust lands to be disposed for veterans' cemeteries, undercutting the current highest and best use Constitutional requirements. ASBA opposed; however, both bills passed on a 6-0 vote.
 
This afternoon began with the Senate Committee on Education Accountability and Reform met to hear two presentations, address seven Executive nominations, and two bills. SB 1119 (task force; K-3 accountability; assessments) passed on a 6-0 vote, which would establish a Task Force to examine and evaluate best practices in accountability and assessment measures for schools providing instruction in grades K-3, as well as conduct trial examinations of students. ASBA supports. SB 1120 (teacher student loan program; expansion) passed on a 5-1 vote, which makes changes to the Teacher Student Loan Program by expanding qualifying institutions to include private postsecondary institutions and places the Program under the supervision of the Commission on Postsecondary Education, rather than the Arizona Board of Regents. ASBA is neutral. Last, SB 1121 (school districts; carryforward balance) was held. This bill allows a three-year allowance for an unlimited M&O budget balance carryforward (currently, it is capped at 4%). ASBA supports local control; however, is concerned in this economic environment and, based on previous fund sweeps, that this will allow education funding to be further cut.

The Senate and House Appropriations Committee also met this afternoon in joint session to hear a presentation of Governor Brewer's FY2011 budget proposal from John Arnold, Director of the Office of Strategic Planning and Budgeting (OSPB). The Joint Legislative Budget Committee (JLBC) presented its FY2010 and FY2011 Baseline Estimates, with the FY10 budget shortfall estimated  at $1.5 billion and the FY11 budget shortfall estimated at $2.6 billion. The FY11 baseline increases by $1.1 billion above this current year, excluding one-time federal backfill monies. K-12 education would see a $103 million decline in the formula; however, that excludes including inflation adjustments as required by Prop. 301. This $103 million decline becomes a $369 million increase for K-12 education IF Congress extends stimulus fund, which would provide Arizona $472 million in one-time backfill monies.

The day ended with a press conference by Rep. Carl Seel (R-6) to present his budget balancing proposal. As you may remember, Rep. Seel was successful in last Session's cash balance sweeps. His plan includes a $2 billion cut in spending by imposing a strict interpretation of the Voter Protection Act (for education, this would mean only funding the 2% inflation factor on "other components of a school district's RCL" rather than across the board) and 15% agency cuts. Further, he proposes $1.1 billion in other savings by curtailing $500 million in AHCCCS (Arizona's Medicaid system) "fraud" and requiring $600 million of the "$1.5 billion in school district extra carryforwards" to be spent down by districts (which would provide $600 million in state general fund relief). Last, Rep. Seel called for various structural changes, including for K-12 education, funding schools on current 180-day counts, which would save Arizona over $300 million.

►January 19, 2010
Daily In-Session Update 

This afternoon, ASBA co-hosted with AASBO an important webinar on Arizona's Final Race to the Top application that was submitted this weekend.  Dr. Deb Duvall, Special Advisor to Governor Brewer on Race to the Top, distilled 350+ pages into an important and concise presentation to districts and charters regarding their participation in RTTT. If Arizona is successful in its Phase I application, we would be informed in April. If we are not successful, Phase II Race to the Top applications will be due in June with notification in August. You can view a copy of the powerpoint presentation on ASBA's website.  376 LEAs (districts and charters) have signed the memorandum of understanding comprising 88% of Arizona's K-12 student population.

In more federal news, President Obama announced today that his FY 2011 budget will include $1.35 billion to extend Race to the Top and allow school districts to directly apply for these monies rather than through the current state process. Secretary Duncan indicated that the details of the district-level competition have not yet been developed in terms of the eligibility criteria and the selection process.  He will be reaching out to district leaders, teachers, principals and parents in the coming months for input.  If funded by the Congress these awards would be made available around October to December of this year.

Tomorrow, the Senate Committee on Education Accountability and Reform will meet at 1:30 p.m. to confirm several executive nominations and hear three bills: SB 1119 (task-force; K-3 accountability; assessments); SB 1120 (teacher student loan program; expansion) and SB 1121 (school districts; carryforward balance).

►January 18, 2010
Daily In-Session Update

►January 14, 2010
Daily In-Session Update
 

This afternoon, the House Committee on Education met to hear several presentations and hear one bill.  In addition, Chairman Crandall presented information to the Committee regarding the ACT Pilot Program. 

Sybil Francis, Executive Director of the Center for the Future of Arizona, encouraged the Committee to support a Move on When Ready concept.  This would allow students to voluntarily advance to higher education when they meet specified academic criteria, which research indicates would decrease dropout rates and increase academic achievement.  The Committee will hear a bill regarding Move on When Ready in the next few weeks.

John Wright, President of the Arizona Education Association, presented the core values of the AEA and their specific goals for the 2010 legislative session, which include work on budget options through the Arizona Budget Coalition, hosting community forums on education and the economy with the Education Coalition, revisiting the personnel law changes from last session and encouraging union involvement on the Race to the Top Application.

Ron Lee, Director of Legislative Affairs, Arizona State Impact Aid Association, presented on the current status and challenges facing districts receiving impact aid in Arizona.

The Committee passed HB 2078 Schools; American competitiveness project fund 8-0 with 2 members absent.  This bill expands the list of academic programs approved for schools to receive money from the American Competitiveness Project Fund to include programs emphasizing philosophy. 

►January 13, 2010
Daily In-Session Update

►January 12, 2010
Daily In-Session Update

Late yesterday, Arizona submitted its 98-page State Fiscal Stabilization Fund (SFSF) Phase II application. This is the document that requires the Governor to report on the progress made on the four assurances, as well as the maintenance of effort requirements, she agreed to uphold in receiving the federal stimulus dollars. While not required, Superintendent Horne also signed the application, along with Governor Brewer. Arizona received $557 million for the education-specific portion; acceptance of the Phase II application will draw down the remaining $275 million in education-specific funding (which has already been spent in previous FY10 budgets).  

Please note that the SFSF Phase II application requires the collection and reporting of various items under each of the four assurances. There is no new policy changes or recommendation – that is what the Race to the Top application is about – yet, approval of the SFSF Phase II application is a requirement before Arizona can submit its Race to the Top application. The RTTT application is due January 19^th, the same day AASBO and ASBA are once again sponsoring a webinar from 1:30-3:30 p.m. to discuss what is included  in the Arizona's final application – sign up by clicking https://www2.gotomeeting.com/register/219496162

Of specific note from the SFSF Phase II application is the assurance that Arizona will maintain its state support for elementary and secondary education, also known as the maintenance of Effort (MOE), at the Fiscal Year 2006 level for FY09-11. This is also the requirement for higher education.

In addition, Arizona currently does not collect teacher and principal evaluation data. The Arizona Department of Education will develop a LEA survey instrument and establish  the Arizona Teacher/Principal Evaluation Taskforce for the collection and reporting of this data. There were also detailed plans included for  Arizona Data Collection and Public Reporting items.

In more federal stimulus news, the newly-created House Study Committee on the American Recovery and Reinvestment Act met this morning for an introductory session on the current status of federal assistance to Arizona.  The Committee is charged with:  studying the scope of the American Recovery and Reinvestment Act, including discretionary programs in K-12 education; Higher Education, Health, Transportation, State Energy/Water Projects and benefit programs; review of entitlement based spending programs including Medicaid; and evaluation the impact of ARRA tax reductions on Arizona from a policy and fiscal perspective.  The Committee must submit a report after each meeting of its findings and recommendations and will next meet on January 28^th to focus on Education.

►January 11, 2010
Daily In-Session Update, Part I

Governor Brewer delivered her State of the State, consisting of a reduced five-point plan to a three-point plan: 1) substantial cuts in spending; 2) raise additional revenue; and 3) ensure that AZ doesn’t spend itself into this kind of fiscal crisis again. Among other items of note, the Governor stated she would explore suing the federal government regarding new federal healthcare mandate if the Attorney General does not and she is also asking for the rollback of Prop. 204, which increased health care coverage to persons up to 100% of the federal poverty level.  I point this out because AHCCCS (Arizona’s Medicaid system) now has 367,199 more people enrolled than children in our public schools; thus, the budget pressures on this item are immense.
 
In addition, for education, the Governor championed four items, while stating that she looked forward to working with Sen. Huppenthal and Rep. Crandall, along with other members, to enact the reforms. They include:
•        Alternative certification of  teachers;
•        Creation of an online system to ensure parents have up-to-the-date data on their student at any time;
•        Changing the current labeling of our schools under AZ Learns from “Excelling” through “Failing to Meet the Academic Standards” to an “A” though “F” letter grade; and
•        Prohibit the promotion of students who cannot read by the end of 3rd grade.
 
To see a copy of her full speech, click: http://azgovernor.gov/documents/sos/2010/SOTS_011110_SOTS2010.pdf The Governor will release her detailed budget on Friday, January 15th.
 
Part II …

Immediately following the governor's address, ASBA participated with other education organizations in a press conference for the Education Coalition.  TEC has worked collaboratively for almost 20 years to address public education issues in Arizona, with advocacy and support for students and public education as its mission.  The press conference announced TEC’s plans to hold statewide forums to discuss education and the economy.  Stay tuned for locations and dates to be announced!