1. ACSA Governmental Relations Update ACSA Governmental Relations ACSA Leadership Summit November 5, 2014

2. Sherry Skelly Griffith Director, Governmental Relations 2

3. The 2014 Election ACSA’s endorsements and positions –All available at http://www.acsa.org/2014Electionhttp://www.acsa.org/2014Election 3

4. ACSA’s Strategic Plan and Governmental Relations Strategy I: We will be the authoritative advocate for all matters pertaining to education and its leaders –3 Action Plans from GR 2014-2015 1.Increasing our federal influence and presence – ACSA/CSBA federal partnership 2.Political leadership initiative (lobby days, political caucuses, connecting policymakers to Principals) 3.Advocacy training (state ACSA leaders, regions, councils and committees) 4

5. 2015 Agenda Committee and council input needed –2015-17 Legislative Platform Survey –One Voice Action Steps for 2015 –The future of the state accountability system 5

6. Adonai Mack Legislative Advocate 6

7. Proposition 2 Rainy Day Fund has two components: –Budget Stabilization Account (BSA) –Public School System Stabilization Account (Prop 98 Reserve) Two types of transfers may be made from the General Fund (GF) to the Rainy Day Fund: –Revenue from personal income tax on capital gains that exceeds 8% of total GF revenues for that fiscal year (Peak Revenue Transfer) –1.5% of GF revenues for each fiscal year (1.5% Transfer) 7

8. State Budget Reserve 2 parts to the statutory reserve language tied to Proposition 2 Reserve: –Transparency: beginning with 2015-16 budget, each district with reserves in excess of the minimum level recommended by the SBE shall review and discuss in a public meeting the recommended minimum reserve, the level of excess reserves identified in the budget, and a statement of reasons substantiating the excess reserves 8

9. State Budget Reserve (continued) –The Cap: In a year following a transfer into the Prop. 98 Reserve, no district adopted or revised budget shall contain reserves in excess of: Three times the recommended minimum in districts with ADA greater than 400,000 Two times the recommended minimum for all other districts County Superintendent may grant an exemption from the Cap for two consecutive years out of three under “extraordinary fiscal circumstances” 9

10. State Budget Reserve (continued) When is the Cap triggered? –Only if Proposition 2 is approved by the voters –Only after current Prop. 98 Maintenance Factor is paid off –Only in a Prop. 98 Test 1 year –Only if you do not have an exemption from your COE 10

11. ACSA Position: Proposition 2 ACSA Board voted to oppose Prop. 2 Governor committed to bringing stakeholders together to try and resolve the problems with the Reserve Management will want to repeal it, unions might be willing to lift cap amounts All agree transparency is okay Have asked governor to address this in January budget 11

12. The Crystal Ball for January Budget will include adult education and CTE How much and who will control the funding is still being discussed Will school transportation be addressed? ACSA supports paying down the entire “wall of debt” and a multi-year investment in Common Core and SBAC Legislation impacting issues in Vergara Will we have a new SPI? 12

13. Laura Preston Legislative Advocate 13

14. Legislation: Administrators SB 1229 (Fuller): ACSA sponsored, and the governor signed this bill to change the date of the Week of the Administrator beginning in 2015 to the second full week in October. 14

15. Labor Relations AB 1522 (Gonzalez): Requires employers to provide at least three paid sick days to employees who work 30 or more days in a calendar year –Substitute employees, noon duty aides, etc. fall under this provision if employed by a district –Governor signed the measure –Takes effect 7/1/2015 15

16. Vergara ACSA has been asked for a list of members and retired members who may be willing to be involved Does ACSA get directly involved in suit? Balancing the court of appeal vs legislation Unions will introduce legislation regarding probation believing they addressed dismissal in AB 215 Vergara attorneys prefer waiting for an appellate decision before legislation Not sure we can wait Success depends on building a broad coalition 16

17. PCBs In Schools Malibu USD is ground zero in California Gained national attention in media and beyond PCBs were used in schools built between 1950-1979 Congress banned them due to their potential adverse effects on health and the environment Presence in schools largely found in caulking, florescent light ballasts, ventilation systems, and they migrate ACSA, CASBO, CSBA and CASH have worked together for last eight months to monitor developments on this issue We are working on developing guidance and a Tool Kit for our respective members EPA has stated the presence of PCBs in buildings should not be a cause for alarm, that there are steps that can be taken to protect students, teachers, staff and others Caulking has been stolen from school buildings 17

18. Sherry Skelly Griffith Adonai Mack ACSA Governmental Relations

19. LCFF/LCAP SBE is close to adopting permanent spending regulations and revised LCAP template –Latest revisions out for 15 day public comment (Sept. 22) –January 2014 regulations are current law until final regs are adopted –Expected to adopt permanent regs at the Nov. 2014 meeting 19

20. LCFF/LCAP (continued) Changes to spending regulations from January –“Principally and most effective language” Requires LEAs, when using supplemental/concentration grant funds districtwide or school wide, to demonstrate $ is being used to “principally directed towards and effective in meeting the district’s goals for unduplicated pupils…” –No definition of “principally.” Concerns about focusing on inputs rather than outcomes for students. Categorical like. –Definition of “consult with pupils” Pupils required to have opportunity to review and comment on LCAP, including surveys, forums, etc. 20

21. LCFF/LCAP (continued) Changes to LCAP Template, including annual update –ACSA joined with small coalition of ED management groups to submit joint comments on template. (CSBA, CASBO, CA Assoc. of Suburban School Districts, Small School District Assoc, LAUSD, SDUSD, & Riverside COE) More “user friendly” Focus on expenditures being tied to the actions/services provided NOT to detailed by pupil subgroup LCAP is not meant to be a complete expenditure document. “It can’t be everything to everyone.” Focus on student outcomes not inputs –A large portion of comments were reflected in revised template 21

22. LCAP Template 22

23. Common Core Messaging http://vimeo.com/99383000 23

24. Sal Villaseñor Legislative Advocate 24

25. Retirement Cost on State and Local Funding State Shortfall In 32 Years (AB 1469): –Includes combination of rate increases for employer, employee and the State –Employer rate increases began 7/1/14 and will continue to increase for seven years. –Enables different members to pay different contribution rates (current members vs PEPRA members) –Limits the increased contribution to the Defined Benefit Program only and not the crediting the Defined Benefit Supplemental Program 25

26. Projected Employer Contributions CalSTRS Employer Rates Current – 8.25% 2014/15 – 8.88% 2015/16 – 10.73% 2016/17 – 12.58% 2017/18 – 14.43% 2018/19 – 16.28% 2019/20 – 18.13% 2020/21 – 19.10% Source: Assembly Bill 1469 (enrolled 6/15/2014) CalPERS Employer Rates Current – 11.442% 2014/15 – 11.771% 2015/16 – 12.6%* 2016/17 – 15.0%* 2017/18 – 16.6%* 2018/19 – 18.2%* 2019/20 – 19.9%* 2020/21 – 20.4%* * Estimated rates provided by CalPERS Source: CalPERS Circular 200-012-14 26

27. CalSTRS Regulations Creditable Compensation Regulations –Moved to Office of Administrative Law for final review. Scheduled to take effect January 1, 2015. –Will affect current and future members –Provide clear guidelines on what types of pay can and cannot be used to calculate retirement benefits –To help school districts navigate the new regulations, ACSA will be hosting webinars and workshops throughout the year 27

28. Creditable Service Challenges –One year window to complete “Retirement System Election Form (ES 372) expired May 23, 2014. –CalSTRS legislative cleanup proposal in 2015 Clarify what qualifies as creditable service Grandfather any H.R. credentialed member regardless of when position was taken Clarify what constitutes membership in CalSTRS without penalty YOU/H.R. WILL NEED TO MAKE SURE ALL NEW EMPLOYEES ARE IN CORRECT CATEGORY GOING FORWARD CalSTRS Creditable Service 28

29. CalSTRS Lawsuit Five ACSA members filed a lawsuit against CalSTRS for enforcing unlawful regulations in their audit CalSTRS reduced benefits without due process and based on vague statute Members a facing a reduction of benefits and demand for repayment for what CalSTRS believes they overpaid Attorney General has asked for more time to hear the case. ACSA has responded that an early winter hearings is being requested ACSA is providing financial support for the lawsuit through our Legal Support Fund 29

30. Questions? Contact us ACSA Governmental Relations (916) 444-3216 Sherry Griffith, Director sgriffith@acsa.org Adonai Mack, Legislative Advocate amack@acsa.org Laura Preston, Legislative Advocate lpreston@acsa.org Sal Villasenor, Legislative Advocate svillasenor@acsa.org 30