LTISD Legislative Priorities 84 th Regular Session, 2015 Session V – February 26, 2015

Areas of Focus Public School Funding Academics & Accountability Local Schools and Governance

Public School Funding Most critical issue this session for LTISD Given current structure and funding, LTISD:  has to operate on $4.5 M less than prior to 2011 cuts in funding  will lose an estimated $5.7 M of state funding annually starting in 2017

ASATR Additional State Aid for Tax Reduction (ASATR) was promised to school districts by the legislature in 2005 to cover shortfalls caused by the state- mandated compression of the local tax rate In 2011, the legislature voted to immediately underfund and permanently eliminate ASATR in 2017 without securing another funding source A small number of districts, including LTISD, still have funding classified as ASATR

Fulfill Promise of ASATR funding Restoration and maintenance of ASATR would eliminate LTISD’s budget shortfall concerns

Increase the Basic Allotment The basic allotment and the number of students in average daily attendance are used to calculate a district’s state funding An increase in the basic allotment is the most equitable way to distribute funding among school districts under the current system

The Local Optional Homestead Exemption Credit LTISD offers local taxpayers a 20% optional homestead exemption LTISD’s recapture (Robin Hood) payment is based on 100% of taxable value, though LTISD never sees 20% of that value Current law allows the state to give districts offering a homestead exemption a credit of ½ of the value of the exemption in the finance system, but it has not been funded in the last several years.

The Impact of These 2 Changes legislature increases the basic allotment and funds the local optional homestead exemption credit reduces the amount of funding classified as ASATR for LTISD and replaces it with other state funding decreases the amount LTISD must pay in recapture to the state virtually eliminates LTISD’s budget shortfall concerns

Fund the TRS System State-Required Contribution Legislature raised every school district’s required contribution to TRS by 1.5% annually The state paid for the increase for , but under current law, districts will be responsible for the contribution in LTISD’s fee is approximately $560K annually, and will increase every year as payroll costs increase

Academics & Accountability Support allowing schools time to implement graduation requirements of 2013’s HB 5 Support adequate funding of Instructional Materials Allotment Support state funding for full-day pre-K

Local Public Schools & Governance Oppose any initiative to divert public tax dollars from public schools (including vouchers) Support providing local school boards more flexibility in creating the local school calendar

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