1. AASBO Legislative Update Chuck Essigs 53 rd Annual Conference July 2006

2. HB2066 – Charter School Teachers; Grading; Immunity Definition changed from certified teacher to teacher employed by a school district or charter school for immunity related to evaluating or grading a student. (Chapter 16)

3. HB2082– Charter School Teachers; Grading; Immunity ASRS member must notify their current spouse before naming a beneficiary or contingent annuitant other than their current spouse. (Chapter 103)

4. HB2103 – ASRS; Local Termination Incentive Program Employer retirement incentive option is amended to replace the word “retirement” with the word “termination”. (Chapter 106)

5. HB2322 – Driving Schools; Limitation of Hours Defensive driving school sessions cannot exceed 4.5 hours, including any class related testing, reviewing and grading. (Chapter 23)

6. HB2340 – ASRS; Deferred Retirement; Repeal Repeals DROP program. (Chapter 11)

7. HB2359 – School Profiles; District Accountability Modifies procedures for ADE to deal with underperforming schools and action plans. (Chapter 240)

8. HB2360 – Tax Exemption; Food; School Exempts certain vendors that provide hot prepared food to school districts, charter schools or private schools for consumption during school hours from sales tax. Retroactive effective date from and after 12/31/99. (Chapter 321)

9. HB2505 – School Budgets; Annual Reports Permanently eliminates the need for school by school budgets. (Chapter 379)

10. HB2552 – Schools; Gifted Pupils; Programs; Funding   Increases requirements for school districts   Requires guidelines from SBE   Increases funding from $55 per student for up to 3% to $75 per student for up to 4% (Chapter 336)

11. HB2583 – Educational Classrooms; Flag Display   Requires flags in all classrooms (manufactured in U.S.; at least 2’x3’)   Existing flags can still be used   Copies of U.S. Constitution and Bill of Rights for grades 7 through 12   Effective July 1, 2007

12. HB2592 – School Buildings; Developer Partnerships Allows agreement between developers and school district to build school with private funds. (Chapter 382)

13. HB2676 – Private Schools; Scholarships; Disabled Students   Appropriates $2.5 million for the program   Option to attend any public or private qualified school   Maximum amount lesser or base support level from A.R.S. 15-943 or private school costs or tuition (Chapter 340)

14. HB2700 – JTED; Omnibus   Changes a number of provisions for the operation of JTED programs:   Increases responsibilities of JTED governing board for all courses.   Prohibits a JTED from using money to supplant vocational courses in equipment and facilities.   Prohibits JTED from Adjacent Ways levy.   Precludes pupils in grade 9 from counting for JTED funding.   Requires IGA agreements. (Chapter 341)

15. SB 1041 – Election Law Revisions Multiple election law changes, including mailing of publicity pamphlet to each household with an elector versus existing requirement to mail to each elector. (Chapter 44)

16. 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. (Chapter 217)

17. SB1164 – Displaced Pupils; Choice Grants   Appropriate $2.5 million for the program   Lesser of $5,000 or tuition cost   Students placed in foster care are eligible

18. SB1205 – Schools; Transportation RCL; Limited Increases   Funding formula based upon 180 days   Transportation Revenue Control Limit shall not increase if the TRCL is more than 120% of TSL

19. SB1257 – School Districts; GITA Technology Standards   ADE to put GITA educational technology standards on web site   School governing board, within one year, must hold a public hearing and vote on adoption of standards. School district staff may propose exceptions.

20. SB1270 – Top 50 Schools; Publication Requires ADE to have internet listing of top elementary, junior high, high school and charter school in the state with ranking based on academic gain in several categories. First listing in 2007- 08 is limited to 50 schools with subsequent years, including all schools that meet established criteria. (Chapter 200)

21. Major Funding Issues   Base level increase of 4.4% Increased from $3,001 (2005-06) to $3,133.53 (2006-07) w/o Teacher Comp.   Teacher Comp add 1.25% = $3.172.70

22. Base Level Increase   $100 million appropriated ($72.51 base level increase)   “The funding appropriated in subsection A of this section shall be used to provide salary and benefit increases for school district and charter school non-administrative personnel.”

23. New K Weight (Group B)   For 2006-070.835   For 2007-08 and thereafter1.352   K-3 weight unchanged 0.060

24. Tax Changes   Sets County Education Rate at $0 for next 3 years and changes name to State Equalization Rate   Pays off $191 million K-12 rollover in 2006-07   Sets QTR at $3.4788 for unified districts and $1.739 for elementary and high school districts for 2006-07

25. School Facilities Board   Appropriation of $86.3 million for Building Renewal   Change in Building Renewal Formula (veto)

26. Election Dates   Requires all secondary elections, bonds and overrides, to be held in November   Effective after June 30, 2007 for M&O overrides

27. Total Estimated Classroom Site and Instructional Improvement Dollars 2006-07 Classroom Site Fund$406,550,500 Instruc. Impr. Fund$ 42,000,000 TOTAL$448,550,500 Equal to an 11% increase in the base level First 5 years inflation of 2% per year under Prop. 301

28. Aggregate Limit   Includes – most M & O expenditures and capital outlay, including Federal Impact Aid   Excludes – federal grants, capital levy and debt service

29. The Limit Was Exceeded Twice  1986-87 However, on 11/4/86, voters approved a 10% increase  2001-02 However, the Legislature voted to override the Limit and on 11/5/02, override the Limit and on 11/5/02, voters approved the exemption of sales tax revenue and state trust land revenues from the Classroom Site Fund from the Limit voters approved the exemption of sales tax revenue and state trust land revenues from the Classroom Site Fund from the Limit

30. Constitutional Limit Calculation 2006-07 Limit$4,973,987,218 2005-06 Budgeted Expenditures$4,579,856,069 Allowable $394,131,149 Increase$394,131,149