1. Finance Knowledge IASA Sponsored Administrative Academy 462

3. Hot Topics Dr. Richard Voltz, IASA

4. Go to http://iasa.wikispaces.com/ Then click Finance Knowledge Download files Hot Topics Sample 2010-11 Budget Presentation

5. Budget, Budget, Budget

7. Chicago Sun Times 3.28.10

8. rvoltz on Twitter

9. Meeks, GOP push vouchers through Jim Broadway, 3.26.10 After a debate filled with emotion but with almost no substance, 13 Senate Democrats and 20 gleeful Republicans voted SB 2494 - a bill to send 22,000 Chicago grade school pupils to private schools, paid for by the state - over to the House on Thursday.

12. State of the State Illinois is estimated to be $13B in debt Federal Funds via ARRA replaced $922M of state funds per year for the last two years ISBE presented a flat budget for FY 2011 In order to fund this flat budget Illinois needs to generate $1B in additional revenue Current political climate may not allow for additional revenue generation

14. State Revenues Down Income tax Sales tax CPPRT

15. Expenses Keep Climbing Pension costs, for instance, will jump by about $1.7M

17. Governor Quinn’s Budget Proposal $2B across the board cut in state spending $1.3B from K-16 schools, an 17% decrease GSA Foundation Level estimate $5,669 Cannot fall below 2006 level of $5,500 due to ARRA maintenance of effort

18. 13,000 education jobs lost State will still be $11B in hole $4.7B FY 2011 operating deficit $6.3B from FY 2010 Proposed 1% Income Tax Surcharge "He's not included a tax increase in this budget, and that's a conversation that has to happen," Jerry Stermer, Quinn's chief of staff, said of the governor's plan. "The General Assembly has not acted on a tax increase and have given signals they don't want to act on a tax increase."

19. Quinn’s Five Pillars of Recovery Cut spending Strategically borrow Get more federal $ to Illinois Encourage new jobs Increase state revenues

21. No Tax Increase In Sight Jim Broadway, March 24, 2010 SB 642, giving state universities the unprecedented authority of borrowing funds for operations, also seems to indicate that no tax hike will be enacted by the end of the spring session. HB 4884, a way for the state to get through the summer and fall of 2010 without raising taxes and with as little damage as possible to entities underfunded by the state.The bill was a shell just two weeks ago. It could be passed and signed into law soon, as early as Friday.

22. Foundation Level History

25. Problem with Illinois

30. Chicago Tribune 3.25.10 The Wheaton district is a snapshot of the troubles facing many school districts today. Shackled by teachers' contracts, generous administrative salaries and benefits, increasing special education needs and parents' expectations, many have been overspending. State officials say 41 percent of school districts — 355 out of 869 — were spending into a deficit in 2009. The number is expected to go up to 44 percent in 2010.

31. In 2008, 282 out of 869 school districts — 32.5 percent — were spending more money than they were taking in. State officials say that number went up to 355 in 2009. Under 2010 budget projections, they believe that number will climb to 385, about 44 percent of all school districts.

32. Quinn Budget GSA cut by $613M Foundation Level at $5,669 Flat Grant ??? GSA Hold Harmless -$16M (-100%) MCATS cut $402M Early Childhood -$54M (-16%) Extraordinary Sp Ed -$66M (-20%) Reading Improvement -$36M ( -53%) Regular Transportation -$65M (-19%) Textbook Loans -$40M (-100%) Billingual Education -$20M (-30%)

33. ISBE Layoff Estimates 24,000 employees

34. Less state support to local governments Governor is proposing to take away part of sales tax to cities -$300M Increase pressure on local taxing authorities to raise taxes

35. More State Borrowing Quinn will propose borrowing billions of dollars to pay off long-overdue bills

36. Still Leaves $5B Hole Raise taxes or Borrow more

37. Income Tax Increase Not likely Polls show voters are angry Senate President Cullerton and Speaker Madigan have advised Governor to introduce a budget without a tax hike.

38. Possible Solution “Get out of Springfield quick” May 7, 2010 6 month budget possible

39. Will this happen? Iowa New Jersey

40. IASA Services

49. Pension Reform It will happen! Two tiered system likely Employee contribution likely to increase

51. SB 1946 SB 1946, as amended increases the retirement age to 67 in order to quality for full benefits Restricts annual cost of living increases for retirees Limits the salary that can be used to calculate retirement benefits Eliminates double dipping by a retiree if that person receives a salary from another system. This legislation applies only to members who first become members on or after January 1, 2011. SB 1946 will impact all of the 13 pension systems governed by the Illinois Pension Code including TRS, SERS and SURS.

52. Normal Retirement Age (Vesting) – Unreduced benefits at age 67 with 10 years of service, reduced benefits at age 62 with 10 years of service, reduction will be at ½ of 1% per month, which equates to 6% per year. Pensionable Salary – Maximum pensionable salary shall be $106,800 and grow with ½ of CPI-U (this is the current Social Security Wage Base). Final Average Salary – Highest consecutive 8 years of last 10 years of service. Annuity COLA - Simple interest COLA will be the lesser of ½ the CPI or 3% at age 67. Survivor Annuities – Survivor annuity will be set at 66.7%

53. Double Dipping – No new pension plan enrollees may receive a pension from one system and a salary from another system. If this occurs, the pension is to be suspended. However, when the individual ends his/her employment, his/her pension shall be reinstated. Restructure the Chicago Public Schools Funding Schedule – Allows CPS to pay normal cost for the next three fiscal years and extend their funding schedule by 15 years. SURS - Allows a State University Retirement System (SURS) participant the option to participate in a self- managed plan (Defined Contribution Plan) which is currently available to current SURS participants.

54. Illinois Pensions

55. Other Issues

56. More Stimulus Money? There have been rumors that President Obama is considering another stimulus round. Payoff for Illinois is $922M Interesting???? You draw your own conclusions...

57. http://thecapitolfaxblog.co mhttp://thecapitolfaxblog.co m/

58. January 2010 Window If Governor Quinn is elected then... if some Republicans cross over and vote for income tax increase... then possible revenue generation

59. Illinois School of Advanced Leadership

61. Principal Preparation and Certification Task Force has redesigned principal preparation programs Internship required Curriculum revised Limit enrollments Start new “Teacher Leader” program

62. Principal Evaluation State must develop Teacher evaluation will probably be based on Danielson if no local agreement Must include culture (climate) RTTTP provisions Rubric based on ISLLC 2008 Standards

64. SyfrSpace http://www.syfrspace.org/ http://www.syfrspace.org