Volume 34, No. 5
March 7, 2008
Click here for a look at a list of education-related bills.
Unanimous Approval to Update Bid Law;
Urge House Members to Vote YES to H.442
Recognizing that the marketplace has outpaced the current bid law, a House committee unanimously approved H.442 Wednesday. The bill would raise the minimum threshold for requiring the competitive bid process from $7,500 to $15,000. The increase simply adjusts the law for inflation; it has been nearly 15 years since the last cost adjustment. The much needed update was approved by the House Government Operations Committee Wednesday.
Local schools want the best quality product for the best price, but current law does not accomplish that goal. The $7,500 bid threshold is too low for the 2008 marketplace. School systems must currently request bids for specialty equipment and single item purchases. Small schools find that few vendors wish to bid for such small purchases and the burdensome process means delays and more costs.
To require school systems be contiguous to take advantage of joint purchasing is no longer appropriate. Why should Mobile County not be able to work with Montgomery County to get a joint purchase for a better price? This would allow systems to participate in purchasing agreements statewide, thus saving boards money and ensuring top quality goods and services.
H.442 would:
- Increase the bid threshold from $7,500 to $15,000;
- Make the bid bond requirement optional;
- Exempt local school boards when purchases are from certain joint purchase agreements;
- Allow for life cycle costing in determining lowest responsible bidder; and
- Allow school boards to award contracts to the second lowest responsible bidder if the lowest bidder defaults.
Local school boards urge House members to support H.442, which is expected to be on the agenda before the full House next week. Please contact your local representative and ask them to vote
YES for H.442.
February Revenues Down; Lawmakers Await March Numbers to Move Education Budget
The Legislative Fiscal Office told the House Education Appropriations Committee Wednesday that the Education Trust Fund growth rate is only 1.2 percent after February receipts had been adjusted for the first five months of FY2008. LFO estimates for the year were 2.7 percent, and the state economy would have to significantly rebound in the remaining seven months to meet that projection. Lawmakers face having to carve some $500 million from the 2008 budget when they craft the 2009 budget.
Committee Chairman Richard Lindsey indicated that $440 million in education savings (Proration Prevention Account) will have to be tapped during the current year just to meet FY08 appropriations.
Using the LFO estimates, the governor’s pending budget proposal would spend at least $83 million more and up to $147 million more than ETF revenues. That number depends upon state legislators’ actions regarding the federal economic stimulus package. If lawmakers do nothing, the stimulus package will have little impact on the ETF. If lawmakers approve a waiver of the federal rebate from individual state income tax, it would keep $57 million from being collected. In addition, the accelerated depreciation for corporate business tax will cost the ETF $59 million unless there is legislative action to address the issue.
The state’s economic performance in March will determine how deep the cuts will need to be for the 2009 education budget.
Higher Ed Seeks 1/3 of ETF Funds;
Shortfall Cuts K-12 to the Bone
Higher education held a rally for increased ETF funding this week; Chairman Richard Lindsey asked if more cuts need to be made to K-12, where could those cuts be made. Dr. Joe Morton responded that the meat would have to be cut and all that would be left is bone.
Alabama’s K-12 is a state program of public education. Local school systems are dependent on state appropriations for up to 75 percent of their budgets. Other entities who receive funding from the ETF rely on the state dollars for only 15 to 20 percent of their budgets. Any cut to K-12 makes an immediate and critical impact to the programs and services school systems can offer.
Are K-12 Schools Facing Pink Slips?
The governor’s proposed budget protects teachers and basic operating expenses to keep schools afloat at 2008 levels. It protects basic K-12 programs by directing 69 percent to K-12 and 31 percent to higher education. Any shift in that funding formula will mean greater cuts to K-12 and the loss of education employees.
School Nurse Bill Starts House Journey
The House Education Appropriations Committee Wednesday approved H.317, the bill updating the school nurse law. Rep. Robert Bentley, sponsor of the bill, explained that locals would love to have a registered nurse in every school, but that is just not feasible. The bill codifies language to authorize what schools currently do. It grants school systems the authority to employ licensed practical nurses to work under the supervision of registered nurses. H.317 is pending full House action. S.55 is pending in the Senate.
Statement of Economic Interest Minimum
Raised from $50,000 to $75,000
The House Government Operations Committee Wednesday approved H.415, sponsored by Rep. Marcel Black. It would translate to fewer public employees having to file statements of economic interest to the state Ethics Commission. It would raise the income limit for filing from $50,000 to $75,000 before a form is required. The income limit would then increase annually by the Consumer Price Index. H.415 next moves to the House floor.
10-Mill Constitutional Amendment Revisited
County commissions are advocating H.349, a constitutional amendment that would clarify how future millage requirements under the mandatory 10-mill law would be assessed. Amendment 778 requires every local school system to have a minimum of 10 mills of ad valorem tax support and expressly waived any administrative fees from being collected for the additional mills to bring local school systems to the minimum 10 mills. H.349 would confirm that those additional mills collected initially under the 2006 constitutional amendment are NOT subject to administrative costs. However, any future levies used to comply with the 10-mill requirement would be subject to collection costs as they are currently.
The scenario would take place should a current school tax being used to make up the 10-mill requirement fail to be renewed. At that point, the constitutional amendment forces the minimum 10 mills to be collected under Amendment 778. H.349 would allow local government to assess administrative costs on those millages, as they do currently. A proposed constitutional amendment, H.349 would require approval by voters.
Proposed P.E. Minimums Pose Problems
H.83, a bill to specify the minimum requirements for student physical education, remains a potential problem for school schedules. H.83 would require P.E. weekly minimums of 200 minutes for elementary students and 225 minutes for middle/high school students in public and private schools. This is not workable for many schools, particularly high schools.
Schools are trying to address the problem of childhood obesity problem comprehensively through nutrition and fitness. The state Board of Education has implemented changes in school lunch rooms. Vending machine offerings have changed to help students make healthy choices. School systems are pioneering ways to address wellness and fitness through public/private partnerships as well. Some of the programs include: KidFit; Wellness, Academics & You (WAY); Healthy Eating Active Living (HEAL); and “Doc-to-Schools” Wellness Project.
AASB believes that academic curriculum requirements, including physical education, should be recommended by the state Department of Education and adopted by the state Board of Education. The department is strengthening fitness and nutrition programs to promote healthier lifestyles critical to student achievement. Urge lawmakers to oppose H.83.
For education-related bills & information
www.alabamaschoolboards.org
On education funding and policy decisions,
local perspective can make a BIG difference.
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19 Days remain in the
Regular Legislative Session.
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AASB March Conference
Register for AASB’s March Conference
March 14-15
The Wynfrey Hotel in Birmingham
Leadership for Developing a Highly Effective Staff Learn how to support your governance teams’ efforts to motivate employees, drive employee performance and effectively evaluate it.
Connecting with 21st Century Learners
An Early Bird Program will be March 14 from 1 to 3 p.m. For more information and to register, go to our Web site at www.AlabamaSchoolBoards.org or call AASB at 800/562-0601.
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