Volume 34, No.12
May 2, 2008
Click here for a look at a list of education-related bills.
$6.35 Billion ETF Budget on Tight Timeframe
The House on Wednesday approved the education budget by a 103-2 vote and it now moves to the Senate. House Appropriations Committee Chairman Richard Lindsey successfully defended the committee version of the budget on the House floor. As expected, higher education attempted to add $25 million to the bottom line. The amendment was tabled by a 55-32 vote. The education budget now begins its Senate journey. Expect the hotly contested issues revolving around the budget in the House to resurface next week in the Senate.
The proposal cuts $374 million from the current budget for FY2009 and is based on the governor’s revenue estimates. The Legislative Fiscal Office projections would call for even deeper cuts, or $121 million less from the bottom line. Should the state economy not perform to the governor’s expectations as LFO suggests, the FY09 budget would face proration.
The specter of future proration haunts the education budget because optimistic projections are being used. This threat is why higher education’s attempt to add $25 million must not succeed. The education savings (proration prevention account) is working to keep the FY2008 budget from proration this year, fulfilling its purpose. But it will be drained and unavailable to prop the FY2009 budget should revenues not meet projections.
Proration devastates K-12. State law ensures that K-12 employee salaries cannot be prorated. Personnel takes up to 80 percent of school budgets. When state dollars are cut, other budget categories are slashed mercilessly to make ends meet. Higher education would prefer to kill the budget if it does not receive additional dollars. Additional dollars further put the FY09 budget at risk for proration. Either scenario is a no-win for K-12.
A special session is still a possibility. If either the education budget or general fund budget dies, the governor has no choice but to call a special session to craft budgets before the new fiscal year begins Oct. 1.
Waiting is a losing proposition for K-12. Local schools are in limbo until a budget passes. A state budget is an absolute necessity before schools can make plans, make purchases, implement programs, and retain or hire personnel.
Determining if funds are available to meet staffing needs is intricately tied to providing notice to education employees before the end of the school year. With a shortage of available teachers, school boards and superintendents struggle to attract and retain teaching staff. Uncertainty about the budget hurts teachers who are unsure about job security, and ultimately hurts students who may lose a quality teacher to a more secure job environment.
With only 3 legislative days remaining, each day is critical for the budget to pass. The Senate Finance & Taxation Education Committee is scheduled to consider the budget Tuesday, May 6 at 11 a.m. The full Senate would then consider the education budget Thursday, May 8.
Local school boards urge the Senate
to pass the House-approved budget A.S.A.P.
The House-approved budget protects K-12 from the most severe cuts. The budget allocates 68.74 percent to K-12, an increase from the 66.91 percent in FY08. The proposal better aligns dollars with students as K-12 serves 77 percent of Alabama’s public students. One critical need for K-12 continues to be transportation. The budget’s fuel costs are based on $3/gallon for diesel. Forecasters say prices will top $4/gallon. Local school boards believe that if any additional funds become available, priority should be given to keeping school buses running.
$67 Million Matter of H.350
The budget followed the successful passage of H.350, the bill addressing corporate tax loopholes. Without H.350, the education budget must be trimmed an additional $67 million. However, the House was able to pass a compromise and avoid making cuts. The Senate will face the same challenge as various interests work against H.350. For the compromise, the bill was amended to end certain tax shelter practices of Real Estate Investment Trusts (REIT’s) and linked to a small business bill, H.144. The expected revenues from the REIT provision would offset the costs of H.144. That bill would help small business employers and employees with an increased state tax deduction for health insurance coverage costs.
Competitive Bid Law Update
Goes to Governor for Signature!
The Senate Thursday approved H.442, the bill to update the competitive bid law. Many thanks to bill sponsor Rep. Jeremy Oden for successfully navigating his legislation to final passage, and Sen. Rusty Glover for handling the legislation on the Senate floor. Sen. Vivian Davis Figures helped communicate to members the importance of this legislation to local schools. H.442 awaits the governor’s signature.
After 14 years, Alabama will join surrounding southeastern states in adjusting the bid threshold for inflation. H.442 raises the bid threshold from $7,500 to $15,000. (Mississippi and South Carolina: $15,000; Tennessee and Florida: $25,000; Georgia, Texas and Virginia: $50,000) The low threshold was inefficient and compromised schools’ ability to procure quality goods and services because companies were unwilling to make bids for low profit margins. In addition, low bidders for some service contracts could pose health and safety concerns.
H.442 would:
- increase the bid threshold from $7,500 to $15,000;
- make the bid bond requirement optional;
- exempt local school boards from bids when using 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.
Alternative Teaching Certificate Provisions
Receive Final Passage
The Senate Wednesday gave final passage to H.398, a bill to address provisional teaching certificates. The bill would:
- allow the certificates to be granted for grades 6-12 (currently grades 9-12);
- focus eligibility on knowledge of the subject to be taught and align with No Child Left Behind requirements;
- extend the window for individuals to acquire their mandated teaching experience from 3 to 4 years; and
- increase the fee from $20 to $30 (the first increase in 17 years.)
Local school boards applaud the legislation, sponsored by Rep. Barbara Boyd and Sen. Quinton Ross. The changes will help local schools as they seek to recruit and retain much-needed qualified teaching staff for students. H.398 awaits the governor’s signature.
School Start Date Status
While AASB successfully prevented consideration of H.179 on the House floor, the Senate version remains pending in the Senate. S.241 would require unanimous consent by every senator to be transmitted to the House should it be approved by the Senate. Please be sure your senate lawmaker knows local school boards’ OPPOSE S.241 and urge that they be on the lookout to keep it from passage and transmittal.
Outdated School Nurse Law Needs Revision
School boards urge the Senate to quickly consider H.317/S.55 to update the school nurse law. The bill would remove obsolete language to give school systems authority to employ licensed practical nurses (LPNs) under the supervision of registered nurses. Current law conflicts with how school systems can practically provide nursing staff for student care. Local school boards urge lawmakers to approve H.317/S.55 this legislative session.
Legislation to Watch
H.54 - would require school boards to have a comprehensive safety plan for each school. Pending final passage in Senate.
H.415 - would raise the income limit of a public official or public employee to file a statement of economic interest with the state ethics commission from $50,000 to $75,000. The limit would increase annually by the Consumer Price Index. Pending in Senate Committee.
H.794 - would require that 75 percent of unanticipated and unappropriated revenues in the Education Trust Fund be deposited in the Proration Prevention Account (education savings account). Pending in Senate Committee.
H.208 - would change the current “line of credit” limit of $248 million (set at 6 percent of the 2002 fiscal year budget) to a sliding scale set to 10 percent of the prior year’s budget. It also would expand the timeframe to pay back the loan from five to 10 years. Pending in Senate Committee.
H.222 - would require uniform requirements for posting notices of vacancies for county and city superintendents as well as state education officials. The bill specifies posting protocol which includes a 30-day posting period before which the position can be filled. Pending governor’s signature.
H.349 - a proposed constitutional amendment to remove the prohibition of administrative costs being assessed when future taxes are collected under Amendment 778, the 10-mill requirement. As a proposed constitutional amendment, H.349 does not require the governor’s signature, but must be approved by voters. Pending in the Senate.
Property Reappraisals – A recent effort surfaced to link the repeal of annual reappraisals with the bill to repeal the food tax. Local school boards continue to oppose the effort to repeal annual reappraisals.
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On education funding and policy decisions,
local perspective can make a BIG difference.
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3 Days remain in the
Regular Legislative Session
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