1. Dr. Chuck Essigs, AASBO Director of Governmental Relations

2. Sales Tax $4.3 billion52% Individual Income Tax $2.5 billion31% Corporate Tax $0.6 billion 7% Other $0.86 billion10% Total $8.2 billion

3.  One cent sales tax ends in FY2014 - $1 billion  K-12 rollover - $1.2 billion (estimate)  Suspended funding formulas - $1 billion  Increased cost to State from AV decline

4.  Estimated revenue in FY2014 of $8.46 billion  Vs. actual revenue in: FY2005 of $7.72 billion FY2006 of $9.26 billion FY2007 of $9.62 billion

5.  Soft Capital$165,120,700  New Utilities$100,000,000  Charter School Add’l Assistance$10,000,000  Building Renewal$241,593,600 $516,694,300 *No estimate for New School Construction

6.  Full-day K$218 million  No inflation increase for Base Formula over$50 million Classroom Site Fund over$200 million

7.  FY 2011$550 million  FY 2012$1.0 billion  FY 2013$600 million  FY 2014$1.1 billion

8.  First Things First Loan$330 million  Add’l K-12 Rollover$245 million*  K-12 Federal Jobs Funds $101.2 million  DES Reductions$91 million  Fund Transfers$65.6 million  Medicaid Provider Cut$17.3 million  One-time Corrections Svgs.$10 million

9.  Medicaid ( AHCCCS ) Rollback$541.5 million  University Reductions$170 million  Reinstate AHCCCS Rollover $115.4 million  Fund Transfers$87.5 million  DES Reductions$91 million  Provider Cuts$89 million  Comm. College Reductions$72.9 million Almost$1.2 billion

10.  CORL and Add’l Assistance Reductions ($62/student)$66.6 million  Cut to Arizona Online Instruction (AOI)$11.6 million  Phase Down of Career Ladder$5.6 million

11.  $600 million more than Governor’s Proposed Budget  K-12 $200 million / More or Total?

12.  Current QTR $2.9594 Unified / $1,4797 Elementary and High School  Proposed (FY2012) $3.5364 Unified / $1.782 Elementary and High School  State Equalization Rate Current is $0.3564 proposed (FY2012) is $0.4259

13.  HB 2002 (school district monies; associations; elections)  As amended, this bill would prohibit school districts from paying for membership in an association that attempts to influence an election.

14.  Reduces time frame for closing schools  Classroom Site Fund - $120 and supplanting for FY2012  Override calculation relief continues for FY2012 – Base level and Full Day K  Changes performance pay for Superintendents – Excludes benefits and sets amount up to 20%  Flexibility on disposal of equipment, furnishings and supplies

15.  For FY2012 and 2013 allows unrestricted capital to be used for any capital or operational expense (excludes SFB and override funds)  For FY2012 and 2013 permits carryover in excess of 4%

16.  HB 2301 (schools; instructional salaries; soft capital)  Requires school districts to spend at least 50% of their M&O budget on teacher salaries and lifts the restrictions on use of the Soft Capital Allocation  HB 2421 (school districts; budgets; financial reports)  Requires school districts to make certain fiscal documents available for viewing on their websites and makes changes to reporting requirements for budget override spending.  HB 2572 (government expenditure database; transparency; CAFR)  Requires the Arizona Department of Administration and each local government to post the comprehensive annual financial report of a budget unit on their official Internet website

17.  SB 1451 (high schools; board examination systems)  Clean up bill for the Grand Canyon diploma  SB 1452 (schools; e-learning programs)  Establishes the Arizona Digital Learning Center and specifies program requirements  SB 1455 (AP teachers; bonus pay; weight)  Establishes a teacher performance pay system based on student performance on Advanced Placement exams

18.  SB 1167 (ASRS; comprehensive amendments)  Requires Alternate Contribution Rate (ACR) beginning July 1, 2013 to be paid for a retired member that returns to work and performs services as an employee or contractor  HB 2726 (public retirement system; plan design)  Eliminates 85 point provision for employees starting work after July 1, 2011 and sets the normal retirement age at 62 with 10 years of service or age 65  Requires Alternate Contribution Rate (ACR) for retired members who continue to work after July 1, 2012  Removes Permanent Benefit Increase (PBI)  Establishes a defined contribution study committee consisting of members of the State Board of Investment

19.  SB 1312/HB 2581 (STOs; credits; administration)  Expands the STO tax credit to allow credits against luxury tax and severance tax for contributions made to STOs for scholarships awarded to low-income, displaced and disabled students, in addition to the credit already afforded to income tax and premium insurance tax  SB 1553/HB 2706 (education; Arizona empowerment accounts.)  Establishes and prescribes rules and requirements for the Arizona Empowerment Accounts program (essentially a voucher) for special education students  SB 1116 (displaced pupils choice grants; continuation)  Permanently continues the displaced pupils choice grant.

20.  HB 2670 (school districts; electronic record keeping)  Allows school districts to maintain their public records in electronic format

21.  SB 1072 (school boards; election cancellation; certificate)  Requires the county school superintendent to issue a certificate of election to a person who is appointed to fill a school district governing board when the election was cancelled due to only the number of persons filed for the number of positions up for election.  SB 1577 (s/e: county school superintendent; powers; duties)  Removes from the powers of a county school superintendent to appoint school district governing board members to fill vacancies on a board  Allows a school district governing board to appoint members to a governing board to fill vacancies.  SB 1303 (schools; dropout recovery programs)  Establishes a dropout recovery program and specifies program requirements and funding  Voluntary for school districts  HB 2219 (s/e: study committee; unification; consolidation)  Establishes the 16-member Joint Legislative Study Committee on School District Unification and Consolidation

22.  SB 1518 (school districts; capacity; charter schools)  Suspends any School Facilities Board (SFB) New School Facilities Fund (NSFF) monies for school district requests related to actual or anticipated student capacity needs from FY 2012 through FY 2014  Outlines addressing school capacity needs through existing or new charter school and public school arrangements  SB 1422 (school facilities board; school closures)  Would have allowed the school facilities board to determine whether a school within a school district should be closed. (Now operational under SB1263)

23.  SB 1611 (immigration omnibus)  Makes numerous changes to immigration statues  Requires that a school or school district notify a person enrolling a student that within 30 days the person must provide one of nine stated documents  SB 1308 (interstate compact; birth certificates)  Authorizes and directs the Governor to enter into an Interstate Birth Certificate Compact with other states  SB 1309 (Arizona citizenship)  Establishes criteria for Arizona citizenship

24.  HB 2234 (persistently lowest achieving schools)  Allows the State Board of Education (SBE) to assign a school a letter grade of F under AZ LEARNS if the school is among the persistently lowest-achieving schools  SB 1420 (school districts; competitive bidding; filing)  Reestablishes the administrative reduction measure to require a school district to procure services by competitive bidding in order to place a student in a private school and when a party to an intergovernmental agreement. (might be withdrawn)

25.  Prop 301 Lawsuit  Charter School Lawsuit