1. JANICE PALMER, ASBA DEB DUVALL, ASA CHUCK ESSIGS, AASBO ASBA/ASA/AASBO FY2013 Legislative Update

2. State Budget Overview Total Proposed General Fund Spending for FY2013 $8,573,278,500

3. SB1529 – K-12 Education Base Level $3267.72 (w/o Teacher Comp.) Transportation Support Level  2% Increase – 2.42 (5 cent inc.) or $1.97 (4 cent inc.) per mile  Cost State $8 million  Increase Base Level for inflation would cost an additional $102 million. Additional Assistance for Charter Schools  2% Increase  K-8 $1621.97 - $1654.41 ($32.44 inc.)  9-12 $1890.38 - $1928.19 ($37.81 inc.)

4. SB1529 – K-12 Education Soft Capital*  FY2013 $158.1 million (Reduced by$30 million)  Non-state aid districts reduced  Total Soft Capital and CORL for districts with a student count of less than 1,100 limited to $5 million * Soft Capital – Operational or Capital Expense

5. SB1529 – K-12 Education CORL  $35 million FY2012 (edujobs) reduction restored  $15 million CORL addition  Additional reduction of $30 million (connected to Soft Capital)  FY2013 $80.9 million reduction  Non-state aid districts reduced  Total Soft Capital and CORL reduction for districts with less than 1,100 limited to $5 million

6. SB1529 K-12 Education Reduction to Additional Assistance for Charter Schools Reduction of $15.6 million

7. SB1529 – K-12 Education K-3 Reading Program  New K-3 reading weight for group B  0.040 x base level x TEI  “K-3 reading means reading programs for pupils in kindergarten programs and grades one, two and three”  Ends on July 1, 2022

8. K-3 Reading Program On or before October 1, 2012 each district and charter school shall submit a plan to State Board of Education Plan includes baseline data on reading proficiency of K-3 pupils Plan includes a budget for spending monies from both the existing K-3 weight and the new K-3 reading weight

9. Reading Program Beginning in the Fiscal Year 2013-2014, school districts and charters must submit by October 1, an updated reading plan that includes data on program expenditures and results

10. Reading Program Use of monies  Only on reading programs for pupils in K-3  Particular emphasis on pupils in kindergarten and grades one and two  $1.5 of $40 million may be used by SBE for technical assistance and administration

11. Reading Program Districts or charters assigned a letter grade of C, D or F, or with more than 10% reading far below the 3 rd grade level  Receive K-3 Reading monies only after K-3 Reading Program plan is approved by State Board of Education

12. SB1529 – K-12 Programs Joint Technical Education Districts  JTEDs can fund 8 th grade students with monies from the $0.05 QTR (9 th grade already allowed)  JTEDs continue to be funded at 91% of state aid

13. SB1529 – K-12 Programs Leased Space  Includes district owned space that is leased to another entity (includes district sponsored charter school) in square footage calculation for new school funding  District not allowed to use Building Renewal Grant Fund monies in a building leased to another entity (includes district sponsored charter school)

14. SB1529 – K-12 Programs School Facility Board  Continues new school funding moratorium  No Building Renewal Formula Funding  Continues Building Renewal Grant Program

15. SB1523 – General Appropriations Innovative Education Program Grants  $3 million (one-time)  State Board of Education awards on a competitive grant basis  Only for use in school districts and charter schools  “For innovative programs that have a proven track record of success in improving student achievement”  Requires match of state grant with equal or greater amount of private sector funding

16. Other K-12 Education Funding Items $6.2 million for ADE Data System $686,000 for the State Board of Education  $500,000 to finalize the development of a data base to expedite the researching of educator certificates and disciplinary actions  $186,500 for 2 investigators to investigate alleged misconduct (PPAC)

17. HB2264 ASRS Employer Contributions  Returns to 50% split of contribution rate – 10.74% for FY2012  Requires districts to refund excess employee contributions by September 30, 2012  Refunds required, except for employees that have forfeited their right to ASRS benefits (took their contributions out)

18. HB2264 ASRS Employer/Employee Contributions  Returns to 50% split

19. HB2264 ASRS Employer/Employee Contributions  Requires districts to refund excess contributions by September 30, 2012  Employee paid 11.39% should have paid 10.74% difference of 0.65%  Refund of retirement contribution – taxable wages for calendar year 2012  Refund for LTD – payment for previously taxed wages  Refunds not required for employees that have forfeited their right to ASRS benefits

20. Change in QTR Unified DistrictNon-Unified District FY2012$3.5364$1.7682 FY2013$3.9170$1.9585 Increase$0.3806$0.1903 10.8%

21. Change in State Equalization Tax Rate (Old County Rate) FY2012 Actual$0.4259 FY2013 Rate$0.4717 Increase$0.0458 10.8%

22. Questions?