JANICE PALMER, ASBADEB DUVALL, ASA

CHUCK ESSIGS, AASBO

ASBA/ASA/AASBOFY2013 Legislative Update

State Budget Overview

Total Proposed General Fund Spending for FY2013

$8,573,278,500

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.)

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

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

SB1529 K-12 Education

Reduction to Additional Assistance for Charter Schools

Reduction of $15.6 million

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

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

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

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

Reading Program

Districts or charters assigned a letter grade of C, D or F, or with more than 10% reading far below the 3rd grade level

Receive K-3 Reading monies only after K-3 Reading Program plan is approved by State Board of Education

SB1529 – K-12 Programs

Joint Technical Education Districts JTEDs can fund 8th grade students with monies from

the $0.05 QTR (9th grade already allowed) JTEDs continue to be funded at 91% of state aid

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)

SB1529 – K-12 Programs

School Facility Board Continues new school funding moratorium No Building Renewal Formula Funding Continues Building Renewal Grant Program

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

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)

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)

HB2264

ASRS Employer/Employee Contributions Returns to 50% split

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

Change in QTR

Unified District Non-Unified District

FY2012 $3.5364 $1.7682

FY2013 $3.9170 $1.9585

Increase $0.3806 $0.1903

10.8% 10.8%

Change in State Equalization Tax Rate (Old County Rate)

FY2012 Actual $0.4259FY2013 Rate $0.4717

Increase $0.045810.8%

Questions?