1. Chuck Essigs Arizona Association of School Business Officials April 22, 2010

2.  By March 30 th Joint Legislative Budget Committee shall determine a per pupil amount for the budget year……….  What Changed – New language, “Adjusted for any prior year carry forward or shortfall” FY2011 First Year for Implementation

3.  Allocation from ARS 15-979 (per weighted student)  Unexpended budget balance from prior year  The net interest earned during the prior year

4. YearBudget CapacityTotal AvailableDifference FY2002$272.42$272.15 FY2003$239.47$239.32 FY2004$230.00 0 FY2005$242.00 0 FY2006$353.00$320.43 FY2007$333.00$333.07$0.07 FY2008$401.00$397.10 FY2009$390.00$259.45 FY2010$244.00$216.00 Total$2704.89$2497.17 Ave.$300.54$277.46

5.  FY2011 – per weighted count $220  Prior Year Shortfalls $195  FY2011 – Amount = $25 per weighted student *Adjust to shortfall total in FY2011

6. Proposal/Adjust Over Two Years  Current  FY2011$220-$25  Proposed  FY2011$220-$120  Leaves $95 shortfall for FY2012

7.  Current  FY2012$220* $220 Budget Amount  Proposed  FY2012$220*-$95** $125 Budget Amount  Leaves $95 shortfall for FY2012 *Based upon $220 available from Classroom Site Fund in FY2012 **$95 shortfall from FY2011

8.  Additional teacher compensation money from sources other than Classroom Site Fund for FY2011.  Not considered supplanting for FY2012 calculation.

9.  Base Level $3267.72/ with teacher comp $3308.57 (No change from FY2010)  Transportation $2.32 inc. to $2.35 and $1.89 inc. to $1.91 (Remember 120% limit TRCL vs TSL)  Additional assistance for charters K-8 inc from $1588.46 to $1607.50 and 9-12 from $1851.30 to $1873.52 (later reduced)

10.  Reduce soft capital by $165.1 million (Est. 80%)  Districts with less than 600 cut is 50% (Est. 40%)  Eliminate Group B weight for K students ($218 million)  Reduce additional assistance for charters by $10 million (Est. $85 per student/ 116,781 charter students)

11.  Suspend building renewal formula  Suspend utility funding formula  Allows charging tuition for K students  Sets Career Ladder at 5.0% (Same as FY 2010)  Permits school districts to expend soft capital monies for any capital of operational expense  Eliminates non-formula funding programs (Exempt for Voc. Block Grant)  School Safety Program (40% General Fund Gone/ 60% Prop 301 Remains)

12.  Suspend Soft Capital ($47 million) and CORL Funding ($248 million)  Reduce base level by $102.7 million (2% Reduction)  Reduce additional assistance for charters by $31 million (Est. $265 per student)  Total $428 million

13.  Change calculation of homeowners rebate (additional state aid) to 40% of primary taxes or 40% of QTR amount whichever is less  Impact on homeowners property taxes  Example  $5.00 Primary Rate - $2.00 Reduction ▪ $5.00 – (40% / $2.00) – Effective $3.00 Rate  $2.80 QTR - $1.12 Reduction ▪ $2.80 – (40% / $1.12) – Effective $3.88 Rate

14.  Provides technical corrections to override laws  Removes requirement to budget and report separately for special program overrides and eliminates ability to carry forward 50% of unspent special program override  Holds districts harmless for reductions to overrides from elimination of Group B K weight (Senate Education Amendment  Holds districts harmless for reductions to overrides from reductions to base level if sales tax election fails ($102 million)

15.  Change 80 points to 85 points  Retirement calculation based on 60 months, not 36 months  Member who leaves after 5 years gets member contributions plus 25% of employer contributions  Return to work still an issue  (53 yes votes in House/29 yes votes in Senate)

16.  School districts shall not adopt policies for teachers that provide retention priority based upon tenure or seniority.  Contracts shall not include compensated days for professional association activities  Removes April 15 notification and March 15 through May 15 date for issuing contract  Changes time to return contract to 15 days  Changes ARS15-544 to allow board to reduce salaries or eliminate certificated teachers. Eliminate notice by May 15 of prior year.

17.  Numerous charter school changes  Teacher certification changes  Eliminates bid requirement for Special Ed. Students placed in ADE approved private schools  Allows district board to establish multiple bank accounts to deposit miscellaneous receipts  Reduces required time in 7 th and 8 th grades from 1068 to 1000 hours  Allows non-career ladder districts to budget 3% outside RCL for teacher performance pay for FY2011 (FY2012 4%, FY2012 5%, FY2014 5.5%, but requires voter approval)

18.  HB2732  Student cannot be promoted from 3 rd grade if testing indicates that student is far below 3 rd grade level  Requires State Board to develop intervention and remedial strategies that districts need to use  SBE Task Forces reports 1/15/2011/ program delayed 2012-2013

19.  SB1323/ HB2385  Problems with SAIS  Pick points in time instead of 100 day average – September 15, November 15, January 15 and March 15  Funding on membership but absence data must still be reported  Delayed implementation (Effective June 30, 2011)  Example is STAR in New Mexico  200 Day Calendar - 5% base level increase/ Must increase Instructional Hours by 10%

20.  HB2521 – Requires superintendent contract to include at least 20% of salary as performance pay (55 – 0 Vote in House)

21.  S1188 – County School Supt. Required to file a copy of revenue estimate to set tax rate with Property Tax Oversight Commission. The projected ending cash balance, adjusted for encumbrances and payables must be certified by district

22.  HB2282 – Website information on receipts and expenditures. ASBA and AASBO oppose and are trying to get an alternative put in place.  Implementation date January 1, 2013  Available on website – all revenues and expenditures over $5,000  Be searchable, updated at least every 3 months and retained for at least 3 years  To mirror requirements for ADOA Website (January 2, 2011)