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AASBO Legislative Update Chuck Essigs Spring 2006

AASBO Legislative Update Chuck Essigs Spring 2006. HB2103 – ASRS; Local Termination Incentive Program. Employer retirement incentive option is amended to replace the word “retirement” with the word “termination”. (Sent to Governor ) HB2340 – ASRS; Deferred Retirement; Repeal

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AASBO Legislative Update Chuck Essigs Spring 2006

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  1. AASBOLegislative UpdateChuck EssigsSpring 2006

  2. HB2103 – ASRS; Local Termination Incentive Program Employer retirement incentive option is amended to replace the word “retirement” with the word “termination”. (Sent to Governor) HB2340 – ASRS; Deferred Retirement; Repeal Repeals DROP program. (Signed by Governor – Chapter 11)

  3. HB2101 – ASRS; Terminated Employees; Contribution Refund Any new hire after 1/1/08 will receive a return of the member’s contributions only. Could reduce contribution rate by 0.125%. (Passed House / Senate Appropriations)

  4. HB2357 – School District Receivership; Mismanagement Gross mismanagement of non-fiscal duties is added to fiscal mismanagement as reason to appoint receiver. (Passed House/Failed Senate Ed.)

  5. HB2360 – Tax Exemption; Food; School Districts Exempts certain vendors thatprovide hot prepared food to school districts or charter schools for consumption during school hours from sales tax. Retroactive effective date from and after 12/31/99. (Passed House/Senate Fin.) Now includes private schools.

  6. HB2505 – School Budgets; Annual Reports Permanently eliminates the need for school by school budgets. (Passed House / Ready for vote in Senate) HB2557 – High Schools; Nutrition Standards Adds high schools to the Arizona minimum nutrition standards. (Held in House Ed./dead this session)

  7. HB2592 – School Buildings; Developer Partnerships Allows agreement between developers and school district to build school with private funds. (Passed House/Senate Ed.) HB2593 – Schools; Capital Overrides Adds a limit on C/O overrides of 75% of soft capital limit, but allows some F&E for new schools to be purchased from bond funds. (Final vote in House.)

  8. HB 2665 – School Districts; Overrides M/O overrides could only be held on the “first Tuesday after the first Monday of November.” (Passed House on reconsideration; No action in Senate) HB2700 – JTED; Omnibus Changes a number of provisions for the operation of JTED programs. (Passed House/Senate Ed.)

  9. SB 1040 – School Districts; Minor Boundary Changes Allows minor boundary changes with a petition approved by 90% of electors in transfer of no more than 1.5% of students. (Passed Senate/House Ed.) SB1094 – School Boundary Changes; Financial Impact Follow up language to last year’s bill on requirement for unorganized area to join a school district if 150 or more students attend school district. (Passed Senate / Ready for final House vote.)

  10. SB1205 – Schools; Transportation RCL Freezes TRCL at 120% of TSL. (Passed Senate) AASBO estimates a negative impact to over 150 districts. (Budget issue) SB1226 – School Board Members; Increase Requires school board members in districts with 15,000 or more students to vote on question to raise number of board members from 5 to 7. If board votes yes, then voters must vote on issue. (Passed Senate / Failed House – 25 yes, 34 no)

  11. Major State Budget Issues in Addition to K-12 • Property tax and/or income tax cuts • New dollars for border issues • Pay package for state employees • Funding existing formula programs for AHCCCS, DES and Corrections • Paying off budget adjustments, such as K-12 rollover

  12. Done Deal 2006-07 • Base Level – Minimum of 2% increase (inflation 2.7%) • Transportation – 2% increase; 175 days • ASRS Rate – Increase from 7.4% to 9.1% • Prop. 301 - $333 for 2006-07 Revised 2005-06

  13. Might Be Part of the Deal 2006-07 • Increased $’s for ASRS contribution rate • Full Day K – M/O expansion • Full Day K – C/) adding to SFB formula • Increase Base Level – no strings • Increase Base Level – Career Ladder / Excess Utilities • Increase teacher compensation • Transportation formula / TRCL capped at 175% of TSL • Creative solution

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