New Laws 2012 Legislative Session

1. New Laws2012 Legislative Session School Superintendents of Alabama Summer Conference June 2012

2. Economic Interest Forms ACT No. 2012-509 (Rep. Mac McCutcheon) • Changes the existing law for filing economic interest forms from $50K to $75K • Allows for base to be adjusted on January 31 of each year to reflect changes in the U.S. Department of Labor’s Consumer Price index • Exception: Every full-time public employee serving as a supervisor regardless of income and anyone who has the authority to expend public funds • Effective date: 1st day of the 3rd month following its passage and approval by the Governor.

3. Digital TextbooksAct No. 2012-560 (Rep. Jim McClendon) • Cited as the Alabama Ahead Act • States that in FY 13, “students in grades 9-12 shall be provided in electronic format digital textbooks and other instructional materials” • Also requires the provision of a “pen enabled:” tablet, mobile computer or other electronic device for using this digital material • Requires SDE to convene an advisory committee of, but not limited to, the House and Senate sponsors and a member from each chamber appointed by the leadership to assist in the implementation of this act • NOTE: There is no funding attached to this bill. • Effective Date: 1st day of the 3rd month following its passage and approval by the Governor. Sections 2 to 12 (the funding part of the bill) shall be implemented only upon separate legislative enactment providing a specific date for implementation

4. Athletes and ConcussionsAct No. 2012-314 (Rep. Ron Johnson) • Previous legislation for student athletes with concussions required the governing body of each sport or recreational organization to: • Develop guidelines • Ensure coaches receive annual training • Act No. 2012-314 requires local school systems to: • Develop guidelines • Ensure coaches receive annual training • Act No. 2012-314 requires that a student suspected of sustaining a concussion be • removed from participation on the day of the injury • receive clearance from a licensed physician before returning to play • Effective date: Upon signature of the Governor

5. Flexible School CalendarAct No. 2012-560 (Rep. Randy Davis) • Intent is to generate more revenue for the ETF • Allows for the “hourly equivalency” of a 180 full instructional day (1080 hours) • Start no earlier than the Monday two calendar weeks before Labor Day, unless August 31 is a Monday, then on Monday August 17. • Last day of instruction for students shall be no later than the Friday immediately before Memorial Day • Law is effective for 15 months • Begins in August 2012; ends with the last day of the 3rd month of the FY14 school year • NOTE: The bill separates “instructional days” and “contract days” but does not define a contract day. However, the education budget defines a teacher contract as 187 days. • Effective Date: 1st day of the 3rd month following its passage and approval by the Governor.

6. Flexible School Calendar and The Rolling Reserve Act Establishes the maximum amount that may be appropriated from the ETF in any fiscal year, beginning with FY13 Calculation of the Cap: • Begin with the total recurring revenues deposited into the ETF in the most recently completed fiscal year • For the FY13 budget, the baseline is FY11or $5,305,361,155 • Baseline is adjusted by the average growth rate in the ETF for 15 most recently completed fiscal years • FY13 baseline is based on 1997-2011 • Average growth rate was 3.29% • Multiply the baseline by the average growth percentage to determine the amount to add to the baseline ($174,546,382) • Add the baseline and the amount of growth percentage to determine the preliminary cap • $5,479,907,537 • $108,092,463 less than FY12 appropriation total ($5,588,000,000) • If the growth rate for FY11 exceeds the 15 year average, then an adjustment is made to increase the cap. • The growth rate for FY11 was 1.68% so no adjustment can be made for this provision.

7. SSA Supported the Flexible School Calendar Bill • If legislation is enacted (Flexible School Calendar Bill) that will increase recurring revenues deposited into the ETF, then an amount equal to 95% of the fiscal note attached to the legislative act is added to the cap. • If there are excess funds at the end of the year (projected to be $190M)that exceed the cap • Pay back Rainy Day Fund—borrowed $437M to be paid back in 6 years; three years left • Budget Stabilization Fund—20% of current appropriation from the ETF • Can use if cap does not equal previous year budget • Or if needed to prevent proration • Education Trust Fund Capital Fund

8. Rationale for Our Support • By passing HB 360 (Flexible School Calendar Bill) and “increasing recurring revenue,” the legislature can raise the cap. • By raising the cap, the legislature can reduce divisors. • Even if the “increased recurring revenue” doesn’t materialize, it doesn’t matter because • HB 734 (Act 2012-489) earmarks $40 million for the Budget Stabilization Fun

9. FY 13 Budget Section 10. All encumbered balances of a previous fiscal year appropriation other than the exclusions authorized by the Code of Alabama 1975, Section 41-4-93, shall lapse no later than September 30 of the fiscal year immediately following the fiscal year for which the appropriation was made and shall revert to the credit of the Education Trust Fund or earmarked fund from which the appropriation or appropriations were made.

10. Fleet Renewal BondAct No. 2012-562 (Rep. Mac McCutcheon) • Raises the bonding authority in a 2005 BRAC bill from $175M to $208M • Earmarks $33M of the bond for school bus fleet renewal for FY13 • Effective date: Upon signature of the Governor

11. School Board Governance Act No. 2012-221(Rep. Elaine Beech) • Requires the State Superintendent of Education to: • (1) adopt a model code of conduct for members of local boards of education by January 1, 2013; • (2) develop continuing education and training programs for members of local boards of education; • (3) conduct investigations and provide for notice and hearing of board members upon receiving written complaint of allegations of neglect of duty, misconduct or breach of duty by a board member; and • (4) develop and issue regulations to implement the provisions of this bill.

12. Governance (contd.) • Requires school board candidates to affirm that each decision, action and vote must: • be based solely on the needs and interests of students or the system; • not be made to promote personal, political or pecuniary interests of the board member; • be based on the interests of the system as a whole.   • Clarifies that individual board members must currently reside in the area served and must meet certain standards: • good moral character; • high school diploma; • not employed by the board; • does not serve on the governing board of private elementary or secondary educational institution; • is not on the National Sex Offender Registry of the state sex offender registry; and, • has not been convicted of a felony.

13. Governance (contd.) • Candidates also must state that each board member will: • consider the views of fellow board members and superintendents before any action or decision; • act on the written recommendation of the superintendent and not (individually or jointly) attempt to direct or corrupt system operations in a way inconsistent with the roles and responsibilities of the superintendent; • promote and support public education; and • attend board meetings, system functions and training.

14. Governance (contd.) • The law additionally specifies school board member responsibilities and provides sanctions for actions or inactions that constitute neglect of duty or willful misconduct.   Upon investigation, review and hearing, the following sanctions may be recommended to the State Board of Education: • Formal censure or reprimand of the board member; • Disqualification from eligibility for future appointment, reappointment or election to any local school board in the state (includes failure to meet mandated training and attendance requirements.) • State Board of Education must adopt the model code of conduct for members of local boards of education by January 1, 2013 and local boards must adopt this, as a minimum, by April 1, 2013 Effective Date: Upon signature of the Governor

15. Definition of “de minimis”Act No. 2012-433 (Rep. Jay Love) • “A value of twenty-five dollars or less per occasion and an aggregate of fifty dollars or less in a calendar year from any singly provider” • Can be adjusted by the Alabama Ethic Commission through the Administrative Procedure Act or adjusted each four years from the date of the enactment to reflect cost of living as indicated by the U.S. Department of Labor Consumer Price Index • Effective Date: 1st day of the 3rd month following its passage and approval by the Governor

16. Joint Purchasing AgreementAct No. 2012-557 (Rep. Jim Carns) • Currently, purchases of goods made as part of any purchasing cooperative sponsored by the National Association of Counties are exempt from competitive bids. • Expands this option to include “any other competitive bid nationwide cooperative purchasing program or other national or regional governmental cooperative purchasing program.” • Effective date: 1st day of the 3rd month following its passage and approval by the Governor.

17. School Grading SystemAct No. 2012-402 (Rep. Terri Collins) • Directs the State Superintendent of Education to develop a school grading system reflective of school and district performance (i.e., A, B, C, D, or F) by the end of 2012 • Must be in place by the FY14 school year • Grading criteria includes “achievement scores, achievement gap, college and career readiness, learning gains and other indicators” • Creates the Legislative School Performance Recognition Program within the SDE to reward public schools that either: • Demonstrate high performance • top 25% using the grading system • Demonstrate exemplary progress • improving overall annual ranking of the school by at least one letter grade • Effective Date: Upon its passage and approval by the Governor

18. Farm to School ProcurementAct No. 2012-437 (Rep. Elaine Beech) • Establishes a cooperative agreement between the Department of Agriculture and the State Department of Education to: • Investigate the potential of various procurement procedures for schools to purchase local farm products • Educate CNP personnel on the small purchase threshold and tools to promote their use • Implement food preparation training for food service staff to accommodate sourcing fresh and local foods • Encourage CNP directors to include local farmers and suppliers when procuring farm products that fall under the small purchase threshold • Encourage all new school construction projects to consider kitchen facilities capable of producing fresh and healthy school meals and opportunities for hands-on learning • Allows purchases of unprocessed agricultural products (defined in law) of $100K or less without competitive bid. • Effective date: 1st day of the 3rd month following its passage and approval by the Governor

19. Decrease Age of Attendance to 6Act No. 2012-295 (Sen. Priscilla Dunn) • Changes the mandatory age for children to attend school from 7 to 6. • Parents, legal custodians, or guardians of a child who is six years of age may opt out of enrolling their child in school at the age of six by notifying the local school board, in writing, that the child will not be enrolled until the child is seven • Effective date: 1st day of the 3rd month following its passage and approval by the Governor.

20. Supplemental Appropriation for NBPTSAct No. 2012-263 (Rep. Jabo Waggoner) • Supplemental appropriation of $2,313,850 from the ETF to the SDE for the current fiscal year to pay the entire $5000 salary supplement to NBPTS teachers for FY11 and FY12 • Beginning January 1, 2013, authorizes the payment of the same annual salary supplement provided for teachers for any NBPTS principal. • No funding is included in this appropriation for this item. • Effective date: Immediately following its passage and approval by the Governor.

21. Physicals for School Bus DriversAct No. 2012-372 (Sen. Del Marsh) • Lt. Dexter Holcomb Act • Requires every school bus driver to pass a physical exam, by a licensed physician, at his or her own expense, by August 14, 2012 • Some are grandfathered in by any pre-existing condition in the law provided they (1)get a note from their doctor saying the condition will not affect their driving and (2) sign a waiver • Requires any newly hired person to successfully complete a physical examination by a licensed physician. • Bus drivers must pass an exam every two years • Bill describes what determines the person to be “physically qualified” to drive a bus (i.e., has no loss of a foot, a leg, a hand or an arm; no established history of diabetes mellitus requiring insulin for control; etc.) • Effective Date: Immediately following its passage and approval by the Governor. • Note: The State Board approved emergency rules on June 14, 2012. Prior to this, all transportation supervisors were trained on the law and its requirements.

22. $300 Classroom Supply FundsAct No. 2012-414 (Sen. Greg Reed) • Provides an annual appropriation from the ETF for each earned unit the sum of $300 for classroom supplies (i.e., paper goods, cleaning supplies, hand soap and clear, pencils, pens, paper and similar general supplies utilized on a regular basis in the classroom) • Expenditure of these funds must come through the local school budget committee. • Effective date: 1st day of the 3rd month following its passage and approval by the Governor.

23. New Hire Plan Act No. 2012-377 (Sen. Arthur Orr)

24. Alabama Trust Fund ChangesAct No. 2012-490 (Sen. Arthur Orr) • Constitutional Amendment that will be voted on September 18. • Takes $145 million a year from the Alabama Trust Fund (oil and gas revenue) for 3 years • Repayment would come from the ETF RDF repayment • Would (hopefully) prevent raids on the ETF for the GF

25. FY13 ETF BudgetAct No. 2012-569 • Information provided by SDE • System Allocations • Friday presentation

26. On the Horizon 2013 Legislative Session

27. Sequestration What is it and how did we get here

28. What Is Sequestration? • Sequestration = automatic, across-the-board cuts • Process ‘triggered’ in Jan. 2012, cuts will come Jan. 2013 • Impacts almost all aspects of federal budget; ALL programs in USED except Pell • Initial CBO estimates placed sequestration cuts at 7.8%; more likely to be at 9.1%

29. What Does It Mean? • Real-time, mid-year cuts • Remember the Title I and IDEA adjustments in Oct 2011? Similar concept, except deeper. • Cuts to USED will be between $3.5 and $4.1 billion • Estimated Education Impact at 7.8% level: • Title I: $1.1 billion • IDEA $978 million • Perkins:$136 million • Head Start: $590 million

30. Students First Reform Agenda* • Elevate the teaching profession by valuing teachers’ impact on students • Student results, expand certification, performance pay, base staffing decisions on student results, eliminate tenure. • Empower parents with real choices and real information • School choice, provide parent access to school data, empower parents to avoid low-performing teachers and schools • Spend taxpayers’ money wisely to get better results for students. • Accountability systems, transparent budgeting to ensure that public funds maximize student benefit, ensure that the government exercises discipline in pension and benefit programs. * Michelle Rhee, StudentsFirst

31. Foundation for Excellence in EducationAgenda* • Advancing high expectations and rigorous academic standards • Requiring data-driven accountability for schools • Rewarding effective teachers • Funding for achievement (School Grading Bill) • Expanding school choice for families (vouchers, open enrollment, charters, private school tax deductions, etc.) • Unleashing the power of digital learning (virtual schools, virtual courses, online curricula, etc.) * Jeb Bush, Former Governor of Florida

32. ALEC Reform Agenda* • Parent Trigger • Education Enterprise Zone (Vouchers) • Charter Schools • Private Scholarship Tax Credits • Alternative certification * American Legislative Exchange Council

33. Romney Education Agenda • “A Chance for Every Child” • “Voucherlike” system • Would like to see federal dollars (Title I and IDEA--$48.8B) go to “individual entitlements” (school choice—public or private) • Expanded parental choice through open enrollment • Plan requires states to adopt open-enrollment policies • Loophole: hinges on schools having sufficient “capacity” to accept transfer students • School choice should be a state and local issue…not a federal issue • “expand choices for families so children can flee failing schools” • “about face from the Bush signature domestic initiative” (NCLB) • “choice will promote competition for students and …lift all schools” • Strong belief in “market driven reform” • Teaparty disdain of the federal government • Would remove federal government intervention in low performing schools and have schools compete for students in a more “market-based approach to quality”

34. Obama Education Agenda • “Change you can believe in” • Charter schools and school choice • Public dollars for public schools • Teacher evaluations tied to test scores • Preparing students for college and careers • Hold schools accountable for making progress • Improving teacher and principal performance • Staying in school until age 18

35. What about the Rolling Reserve?* • Legislators do not want to alter the law • $150 million less for FY13 • Next year, $400 million will be available for ETF under RRA calculations • $520 will go toward Rainy Day Fund repayment • There can be no Cost of Living adjustment unless the RRA is modified • COLAs are usually given at least once during a 4-year legislative term but RRA will prevent this • By the next Legislative elections, educators will have received no COLA and will have seen a 7.5% decrease in their pay (PEEHIP and TRS) * Alabama School Journal, June 11, 2012

36. QUESTIONS? lisa@ssaonline.org (334) 356-0954