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2010 Overview - Iowa Association of School Boards

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2010 Overview - Iowa Association of School Boards Powered By Docstoc
					Mary Gannon, Attorney


Emily Piper, Legislative Consultant
Today’s Webinar:
 Insights from legislative leadership
 Overview of IASB platform
 Key issues and action needed
A few comments about
this Webinar

   Audio on your computer
   Audio Conferencing: if you do not have audio
    on your computer, dial 1-888-387-8686 and
    then 288- 1993 followed by the # sign.
   Questions and Answers
   An audio recording and copy of this
    presentation will be available after the series
    on our website, www.ia-sb.org
A Message from
Legislative Leaders


   Senator Majority Leader
       Mike Gronstal, D, Council Bluffs
   House Minority Leader
       Kraig Paulsen, R, Hiawatha
Race to the Top (RTTT)


   Memorandums of understanding due 1/14/10
   Bills going through legislature to implement
    RTTT
   IASB has concerns about one provision on
    the lowest performing schools
   State faces $1 billion shortfall
     – Can make up about half by not restoring cuts,
       using remaining stimulus funds
   Nearly $1 billion in on auto pilot in state budget
   There’s some talk of another federal stimulus
    package
     – Just delays the pain if economy doesn’t rebound
Governor Culver’s
Current Proposal


   Fund 2% Allowable Growth-not sure what the
    base is?
   $100 million additional to make up cuts
   Examine Revenue side of equation
    –   Determine value of credits to state, meeting original intent.
    –   State review committee - IASB testified and suggested:
            Implement a sunset provision.
            Examine whether credits still meet original intent.
            Examine tax credits that benefit a small percentage of the
             population.
            Ensure not providing public dollars to support private
             education while cutting support to public schools.
            Take a conservative approach to adopting new tax credits,
             exemptions or deductions.
   Outlook for legislative session
    –   Focus on money, not policy
            Committee chairs told not to do bills that cost money
    –   Shorter session to save state money
    –   Target adjournment is 80 days
   Elections
    –   Nationally, anti-incumbent attitude
   Allowable Growth: our only priority
   Key Issues for 2011 rate
    –   Maintain 2% growth rate
    –   Reduce state’s contribution rather than reduce
        rate
    –   PRESERVE SPENDING AUTHORITY
   Key Issues for 2012 rate
    –   Delay setting 2012 rate until the next legislative
        session
   FY 2011: Maintain 2%
    –   Reducing the rate will limit spending authority even
        though our costs go up.
    –   Maintaining spending authority allows us to respond to
        district needs.
   FY 2012: Delay setting until next year
    –   Gives the state’s economy time to recover.
    –   Once established, it’s unlikely to go up.
    –   Consecutive years of low allowable growth rate are
        tough to absorb.
                                                         Per Pupil Cost
                                                                                      Spending
                  Actual Allowable           Actual State Cost      Per Pupil Cost at Authority
   Year            Growth Rate                   Per Pupil             4 percent      Difference
FY 2002                                     $            4,512      $          4,512
FY 2003*                              1%    $            4,557      $          4,692 $       135
FY 2004                               2%    $            4,648      $          4,880 $       232
FY 2005                               2%    $            4,741      $          5,075 $       334
FY 2006                               4%    $            4,931      $          5,278 $       347
FY 2007                               4%    $            5,128      $          5,489 $       361
FY 2008                               4%    $            5,333      $          5,709 $       376
FY 2009                               4%    $            5,546      $          5,937 $       391
FY 2010                               4%    $            5,768      $          6,174 $       406
FY 2011                               2%    $            5,883      $          6,421 $       538
 *In FY 2003, the legislature adjusted the previously established AG rate downward to 1 percent and
 set two consecutive years of low AG at 2 percent per pupil. This chart shows the effect over time on
 per pupil costs.
        $7,000


        $6,500


        $6,000


        $5,500


        $5,000


        $4,500


        $4,000
                      FY        FY        FY         FY        FY         FY     FY      FY      FY       FY
                     2002      2003*     2004       2005      2006       2007   2008    2009    2010     2011

                            Actual State Per Pupil Cost              Per Pupil Cost if AG Had Been 4 Percent


For a district with 1,000 students, the FY 2010 difference is $406,000
For a district with 1,000 students, the FY 2011 difference is $538,000
   Key issue: Preserve ability of local school
    districts to best manage their finances
   Talking Points:
    –   Cash reserves allowed will be lowered from 25% to
        20% in 2013.
    –   Used for unanticipated expenses; delays in state aid,
        property taxes; emergencies; across-the-board cuts.
    –   “Cash reserves” does not equal “spending authority.”
   Key Issue: Protect the State Penny from efforts
    to scoop for non-infrastructure expenses
   Talking Points:
    –   Many districts have already obligated this money.
    –   By allowing some districts to use the penny for non-
        infrastructure purposes reinstates inequities eliminated
        by the state penny as many won’t have the flexibility to
        use the funds as it’s already committed.
    –   Eliminates some of the inequities in the school finance
        formula.
   Key Issue: Support recommendations of the
    BAC
    –   6% early retirement reduction penalty (from 3%)
    –   Vesting in 7 years (from 4 yrs)
    –   Benefit based on 5-yr average salary (from 3)
   Talking Points:
    –   Important tool to attract and retain workers.
    –   Some changes could cause exodus of experienced,
        qualified workers and, in many cases, employees in
        shortage areas.
    –   Long-term viability needs to be addressed.
   Key Issue: No new unfunded mandates on
    districts
   Talking Points:
    –   Increases costs at a time when funding is
        declining.
    –   Forces districts to make choices between
        mandates and educational offerings.
    –   Increases administrative, support staff time when
        those positions are being reduced.
Shifting the AEAs to the DE

   Key Issue: IASB opposes the proposal to eliminate
    the AEA structure and move them under the Iowa
    Department of Education.

   Talking Points:
     – AEA structure provides regional educational
       services to school districts.
     – AEAs provide economies of scale that couldn’t be
       matched by local districts or the DE.
     – The major issue should be whether this change
       will improve student achievement.
Restructuring

Key Issue: IASB believes school district reorganization,
dissolution or sharing may be in the best interests of
Iowa’s public school students when:

   The best interest of students is the most important
    factor considered.
   The reorganization or dissolution is voluntary.
   The state offers sufficient incentives to make the
    change financially attractive.
   Geographical issues are considered.
   Legislative Advocacy Toolkit:
    http://www.ia-sb.org/EventsTraining.aspx?id=5510
   2010 Legislative Talking Points:
http://www.ia-sb.org/assets/4fad38eda56a4038a32c030f286fcc65.pdf
   IASB Regional Lobby Days
   IASB Legislative Update
   IASB Lobby Team
    –   Mary Gannon, mgannon@ia-sb.org
    –   Emily Piper, emily@ialobbyresources.com
Make your voice heard & attend one of three lobby days!
 January 19: AEA 267, Prairie Lakes, Mississippi Bend
 February 16: Keystone, Great Prairie, Northwest
 March 9, 2010: Grant Wood, Heartland, Loess Hills,
  Green Valley

Schedule:
   –   9:30 a.m. – Registration, Wallace Building auditorium
   –   10 a.m. – Briefing, Wallace Building auditorium
   –   11 a.m. - 1 p.m. – Lobby your legislators, Capitol
Thank you for participating and for all of the
advocacy work that you do. The best thing
you can do is to keep telling your stories, so
that legislators understand the implications to
real districts when they make their decisions.

This webinar will be available later at
www.ia-sb.org.

				
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