With the intense conversations revolving around the Arizona budget fix, several rumors have begun to circulate about a federal bailout package for Arizona education. The purpose of this website is to provide accurate, timely information.
Is there a federal bailout coming? Based on national news reports, there is a large state stimulus program that has passed the US House and is being presented to the Senate Appropriations and Finance Committee. It will be presented before the entire US Senate shortly. We know that there is a piece for education, but we do not know the following:
1) What amendments the US Senate will add?
2) How large the financial package will be?
3) When the money will arrive?
4) What strings will be attached?
5) Whether it is for school year 2009 or 2010?
As we learn more, we will update this site accordingly. The National Conference of State Legislatures (non-partisan) has a great website at http://www.ncsl.org/statefed/2009economicstimulus.htm that provides daily updates of the progress of the Economic Stimulus package.
Thursday, January 29, 2009
Welcome to the House Education Website
We are pleased to roll out the official website of the Arizona House of Representatives Education Committee. The Committee is comprised of ten members, six Republicans and four Democrats. We are very fortunate this year to have experienced legislators and experienced school board members on the Education Committee. In addition, the staff supporting the Committee is also experienced in Arizona education policy.
One of the primary reasons for the launching of EducateAZ.org is to provide the citizens of Arizona, the education community and all other interested parties a place to come for accurate, timely information regarding the activities of the Committee. During session, legislation and budget discussions happen very quickly. Because of the short timeframes involved and the many steps required for legislation and budget adoption, there is often a great deal of misinformation that is inadvertently shared and spread around.
Our goal as legislators and staff is to keep this site up to date as much as possible to create a transparent legislative process. In addition, within each blog there is a way to make comments. We continue to be impressed with the suggestions offered by educators and the public with regards to furthering education in Arizona. We welcome and encourage your feedback and suggestions. All we ask is that you be respectful with your comments, always being mindful that we are also parents who care deeply about Arizona education. In return, we promise to also be respectful and courteous knowing that our authority only comes from you. Of course we reserve the right to remove inappropriate comments, but we hope to never have to do this.With that, we invite you to check back often for news and updates.
One of the primary reasons for the launching of EducateAZ.org is to provide the citizens of Arizona, the education community and all other interested parties a place to come for accurate, timely information regarding the activities of the Committee. During session, legislation and budget discussions happen very quickly. Because of the short timeframes involved and the many steps required for legislation and budget adoption, there is often a great deal of misinformation that is inadvertently shared and spread around.
Our goal as legislators and staff is to keep this site up to date as much as possible to create a transparent legislative process. In addition, within each blog there is a way to make comments. We continue to be impressed with the suggestions offered by educators and the public with regards to furthering education in Arizona. We welcome and encourage your feedback and suggestions. All we ask is that you be respectful with your comments, always being mindful that we are also parents who care deeply about Arizona education. In return, we promise to also be respectful and courteous knowing that our authority only comes from you. Of course we reserve the right to remove inappropriate comments, but we hope to never have to do this.With that, we invite you to check back often for news and updates.
School Tax Credits - The Great Divide
Many people have asked if school tax credits, primarily the $400 Extra Curricular Activities credit and the Private School Tuition credit of $1,000, are on the chopping block for 2010 (they were not an option for 2009 because of the late notice and short period left). These credits redirect Arizona tax collections for specific purposes as determined by the donor. Many of your after-school programs, field trips, music and sports activities are funded by ECA contributions.
In 2007, the ECA tax credit generated approximately $44 million and the Private Tuition credit generated approximately $63.8 million. Schools have come to depend on tax credits to fund numerous programs. In the world of school finance, tax credits are about the only funding source prioritized by parents, not the legislature, school district or teachers.
And there lies the problem. The Arizona Education Association and the Arizona School Board Association would like to see a temporary suspension of school tax credits so that those funds could be sent directly to the classroom. However, thousands of teachers, including many AEA members, and hundreds of school board members, almost all belonging to the ASBA, oppose restrictions to school tax credits. So what would King Solomon do?Given our financial situation, there will most likely not be any expansion of school tax credits, although there are three bills pushing for that. However, if any of the bills restricts the use of tax credits in one area than it may be possible to expand them in another, keeping the net effect the same. Keep your eyes open for more information.
In 2007, the ECA tax credit generated approximately $44 million and the Private Tuition credit generated approximately $63.8 million. Schools have come to depend on tax credits to fund numerous programs. In the world of school finance, tax credits are about the only funding source prioritized by parents, not the legislature, school district or teachers.
And there lies the problem. The Arizona Education Association and the Arizona School Board Association would like to see a temporary suspension of school tax credits so that those funds could be sent directly to the classroom. However, thousands of teachers, including many AEA members, and hundreds of school board members, almost all belonging to the ASBA, oppose restrictions to school tax credits. So what would King Solomon do?Given our financial situation, there will most likely not be any expansion of school tax credits, although there are three bills pushing for that. However, if any of the bills restricts the use of tax credits in one area than it may be possible to expand them in another, keeping the net effect the same. Keep your eyes open for more information.
What's the story behind the 2009 Budget Fix?
Late last night, January 28, 2009, the Arizona House and Senate worked out their differences to address the $1.6 billion deficit for the current year. Some interesting things took place in those last few hours that affected K-12 Education.
Within the Arizona Constitution, there is a formula that determines how much schools can spend each year. It is called the Constitutional Aggregate Expenditure Limit (CEL). This has been in place for years. When the legislature began funding All-Day Kindergarten a few years back, the formula was never adjusted to count kindergartners as full time students, only half day (there are many reasons political and ideological for why this is so but that is a discussion for another day). Because of this, schools have found themselves with more funding than they are allowed to spend. It takes a two thirds vote (40 in the House, 20 in the Senate) to allow schools to exceed this constitutional limit.
For the past four years, the legislature has voted to allow schools to exceed this limit. The vote has always been close; but, it has always passed. Last Thursday, the bill to allow this to happen passed the Arizona House Education Committee 10-0. Schools are expected to exceed the CEL by approximately $98 million this year. If the bill does not pass by March 1st, schools are required to adjust their budgets downward by the end of March. For example, within the Mesa School District, this amounts to approximately $7 million.
Senate President Bob Burns has a good understanding of where each of his members stands on the CEL. He knew he didn't have the votes to get it passed this year given the sorry state of our finances. So, as part of the final negotiations, President Burns asked that the CEL not be sent to the Senate because he knew it wouldn't pass. Because it reduces budgets by $98 million, it contributes to a solution for the huge deficit, but it is a cut to K-12. The Senate and House Appropriation Chairs had originally proposed a $103 million cut to K-12 primarily from soft capital (money used for textbooks, furniture, computers, etc.). It would be a double hit to not pass the CEL and to take $103 million, so something had to be proposed.
So here is where the final numbers ended up...
1) No passage of the CEL this year (reduces budgets by approximately 1.7% for school districts)
2) Hold harmless provision for the small districts in Arizona (under 600 students) on the CEL.
3) $4 million reduction to charter schools since they are not subject to the CEL
4) Reduction in soft capital of $21 million (we pushed for zero but given that the CEL is comprised of local and state money and the cash is actually saved in 2010 - a little complicated - we didn't win). This also has a hold harmless for small districts.
5) Reduction of $8 million at the ADE and an additional savings of $2 million by eliminating a recently introduced math and science initiative.
6) One of the policy changes we wanted for the next five months was to remove the strings from "soft capital" funding to provide ultimate flexibility to districts. Any soft capital remaining can be used wherever it is needed.
Within the Arizona Constitution, there is a formula that determines how much schools can spend each year. It is called the Constitutional Aggregate Expenditure Limit (CEL). This has been in place for years. When the legislature began funding All-Day Kindergarten a few years back, the formula was never adjusted to count kindergartners as full time students, only half day (there are many reasons political and ideological for why this is so but that is a discussion for another day). Because of this, schools have found themselves with more funding than they are allowed to spend. It takes a two thirds vote (40 in the House, 20 in the Senate) to allow schools to exceed this constitutional limit.
For the past four years, the legislature has voted to allow schools to exceed this limit. The vote has always been close; but, it has always passed. Last Thursday, the bill to allow this to happen passed the Arizona House Education Committee 10-0. Schools are expected to exceed the CEL by approximately $98 million this year. If the bill does not pass by March 1st, schools are required to adjust their budgets downward by the end of March. For example, within the Mesa School District, this amounts to approximately $7 million.
Senate President Bob Burns has a good understanding of where each of his members stands on the CEL. He knew he didn't have the votes to get it passed this year given the sorry state of our finances. So, as part of the final negotiations, President Burns asked that the CEL not be sent to the Senate because he knew it wouldn't pass. Because it reduces budgets by $98 million, it contributes to a solution for the huge deficit, but it is a cut to K-12. The Senate and House Appropriation Chairs had originally proposed a $103 million cut to K-12 primarily from soft capital (money used for textbooks, furniture, computers, etc.). It would be a double hit to not pass the CEL and to take $103 million, so something had to be proposed.
So here is where the final numbers ended up...
1) No passage of the CEL this year (reduces budgets by approximately 1.7% for school districts)
2) Hold harmless provision for the small districts in Arizona (under 600 students) on the CEL.
3) $4 million reduction to charter schools since they are not subject to the CEL
4) Reduction in soft capital of $21 million (we pushed for zero but given that the CEL is comprised of local and state money and the cash is actually saved in 2010 - a little complicated - we didn't win). This also has a hold harmless for small districts.
5) Reduction of $8 million at the ADE and an additional savings of $2 million by eliminating a recently introduced math and science initiative.
6) One of the policy changes we wanted for the next five months was to remove the strings from "soft capital" funding to provide ultimate flexibility to districts. Any soft capital remaining can be used wherever it is needed.
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