Education Budget Enacted at Final Hour

The Legislature adjourned Sine Die Thursday, apparently before acting upon line-item vetoes in the education budget by Gov. Riley.  The governor had until Thursday to act and returned H.274 with his signature and several line-item vetoes regarding post-secondary education to the House.  The House did not take action to override the line-item vetoes because the Senate had already adjourned and any action would have been pointless.  The education budget is now Act 2010-610.

The Legislature adjourned Sine Die Thursday and lawmakers return to their districts to campaign for the June primaries on the road to November elections.  Local school board members express their appreciation and best wishes to lawmakers, including Speaker of the House Seth Hammett, who will not be seeking re-election for their consistent support to local schools and public education.    

BINGO, Roads & PACT
On Last Days of Session

Despite the hoopla and hollerin from all sides the entire session, the House carried over the constitutional amendment on BINGO Wednesday.   Proponents found themselves shy of the 63 House votes needed to pass a constitutional amendment. The legislation this year is dead, but the issue will not likely fade away anytime soon.

House and Senate Conference Committees worked to find a compromise on both a billion dollar roads bill and a solution to the PACT program insolvency.  Both conference committee reports were approved Wednesday, but it was a bumpy road for the PACT report which needed further action Thursday when the governor returned it with an executive amendment. 

The impact to K-12 did not change with the revised S.162, however the blow to some higher education recipients caused a filibuster on the House floor both legislative days.  The six conferees approved a plan that exempted only the University of Alabama and Auburn University from the cap on tuition increases.  That exemption left a cap for all other institutions of higher education or regional colleges.  A number of House members cried foul and debate ensued.  However, in the end, the desire to find some solution, even an imperfect solution, prevailed.  The House approved S.162 Wednesday and concurred with the Gov. Riley’s executive amendment Thursday. 

As approved, the legislation earmarks $548 million of annual debt service payments from the ETF for the FY’s 2015-2027.  Originally, $236 million was the target cost financed by the ETF debt service.  However, revised actuarial projections increased the PACT need to $548 million.  The difference in cost largely will be shouldered by higher education.  K-12 is protected by limiting higher education’s share of the ETF at 30 percent.  The remaining 70 percent of the ETF will remain for K-12.  Annual tuition increases would be capped at 2.5 percent, with the exception of the University of Alabama and Auburn University systems. The cap would be relaxed if the PACT fund earnings exceed 5 percent for two consecutive years. The commitment to earmark revenue and control cost through tuition caps was critical to adequately fund the program.

Bills Enacted with Governor’s Signature

This week, the governor signed the following bills into law:

BRAC Bond Issue - Act 2010-551 (S.442) would provide a $175 million APSCA bond issue to be available, with certain requirements, to school systems in North Alabama impacted by Base Realignment and Closure (BRAC). 

PSF Flexibility – Act 2010-576 (H.724):  would allow local school boards the authority to use unencumbered Public School Fund dollars for operating expenses in 2011 only. 

Alternative ADM – Act 2010-556 (H.43):  would permit an alternative method to calculate state-funded teacher units in cases of emergencies. 

Bills Pending Governor’s Action

The following bills are pending action by the governor and then assignment of an act number by the Secretary of State.  Should the governor not sign or outright veto the legislation, the bills die by a pocket-veto as a default.

PSCA Bond Issue - H.743:  would authorize a $66.5 million PSCA bond issue.  Dollars would flow to fleet renewal.  It would be issued only in the event no federal job relief comes.  The likelihood of congressional action is waning. 

P.E. Bill - H.105:  would require every student in grades K-8 to take 30 minutes of daily physical education, with exceptions for dance, JR ROTC, marching band and special education students according to their Individual Education Plans (IEP). 

Safe Spaces - H.459:  would require any new school construction to include an approved safe space or hallway, unless an approved space already exists.  The Alabama Building Commission would determine standards.  The requirement would apply to any new contract awarded after the law becomes effective.  According to the state Department of Education, the bill could increase the cost of any new school construction by $4 to $6 per square foot. 

PSCA Bond  - S.512:  would authorize the Alabama Public School and College Authority (PSCA) to issue and sell bonds made available to the state under the provisions of the American Recovery and Reinvestment Act of 2009 and other acceptable governmental programs including Qualified Zone Academy Bonds.

The bill would allow the “negotiated sale” as well as competitive bidding in public auction as a means of selling the bonds.  The state finance director requested additional flexibility because of an ongoing lawsuit that may negatively impact the public bond sales. 

Local school boards work with legislative leaders to accomplish the public’s highest priority – educating our children.

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The November elections will not only bring a new governor, state officials and legislative candidates, but four races for members on the state Board of Education.

AASB urges local school board members to actively work with state-wide, local legislative and state board candidates to inform them about local public education issues.  AASB will be hosting a gubernatorial forum during its June 13-15 Summer Conference following the primary elections. 

'10 ARCHIVES

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