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, firstname.lastname@example.org – Emily Piper, email@example.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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