For Your Information

Vol. 20, No. 14
June 27, 2008

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STATE BOARD REVIEWED LEGISLATIVE ACTION, 2009 EDUCATION BUDGET

On Nov. 4, voters will go to the polls and determine whether to repeal and reestablish the Education Trust Fund Rainy Day Account and to create for the first time a General Fund Rainy Day Account, according to the legislative update presented to the state Board of Education at Thursday’s K-12 work session.

The current ETF Rainy Day Account, which is basically a line of credit — was frozen in time at an amount equal to 6 percent of the fiscal year 2002 education appropriation when it was created. That was a mistake, said state Superintendent of Education Dr. Joe Morton. If supported, the new account would hinge on no more than 6.5 percent of the prior year’s education appropriation. It’s still not free money. Money borrowed from the ETF’s rainy day account would need to be repaid within six years.

Similarly, the General Fund’s rainy day account cannot exceed 10 percent of appropriations, and any money borrowed from it must be repaid within 10 years.

Morton and the state Department of Education’s legislative services team outlined other actions during the regular and special legislative sessions this year. Much of it was a discussion of the nearly $6.36 billion 2009 education budget.

The FY09 budget deficit, when compared to 2008, was just shy of $370 million, which means nearly $129 million less for K-12. Some solace can be found in how ’09 funding will be divvied up with 68.78 percent going to K-12 education, 27.5 percent to higher education and 3.72 percent to other budget costs. That split of appropriated education dollars made a big difference, Morton said, and prevented more than $118 million in major cuts to K-12 had it remained at the 2008 level of 66.91 percent.

Some local budgeting considerations were also explained to the board. For instance, local boards may exercise flexibility in how they use line item allocations as long as it doesn’t exceed 20 percent of any line item and won’t reduce support personnel and/or earned teacher units.  They can’t tinker with the $400 per unit the state provides for classroom materials and supplies, however.

In addition, local boards that have any leftover state funds when the 2008 fiscal year ends Sept. 30 can keep that money for use in the ’09 fiscal year. That money would normally revert back to the Education Trust Fund.

A variety of the Legislature’s resolutions were mentioned Thursday, including the Riley Ward Alabama Autism Support Act that set up a council to develop a long-term plan for a statewide, interagency system of care for those with autism spectrum disorders.  In addition, a few education-related laws were reviewed, including:

• Provisional Teaching Certificates—expanded opportunities for obtaining the Alternative Baccalaureate Teaching Certificate; could be used for teaching grades 6-12; extends time from 3 to 4 years to acquire full-time teaching experience in no more than two school systems; increased the provisional certificate fee to $30; adds the Praxis II teacher test as an additional path for admission to the program.
• Add-back Statute (Corporate Tax) - Closed a loophole that allowed corporations to avoid certain state income taxes. Could generate an extra $74 million in ETF receipts.
• Competitive Bid Law Revisions (see article below).

 The board heard that there have been some concerns with the timeline changes recommended in a special education proposal it is considering. However, the proposed evaluation timeline changes are in line with federal regulations, said Crystal Richardson of the SDE’s special education services division. She said the changes should not delay services for any eligible student.

The board meets once next month on July 8 in Montgomery.

JULY 18 LAST DAY FOR DISCOUNT CONFERENCE REGISTRATION

Take advantage of the cheaper pre-registration rate for the July 27-30 Alabama Association of School Boards and Alabama Council of School Board Attorneys Summer Conference at the Perdido Beach Resort in Orange Beach. We’ll “Surf the Wave of Success” we’ve enjoyed in K-12 public schools and continue the effort to improve student success for every child.

What can you expect? Sessions led by change expert Bud Taylor (based on John Kotter’s book Our Iceberg is Melting); AASB Board Development Director LuAnn Bird on the board’s role in creating success for all students; and (to discuss public education as Alabama’s wave of the future) Roy Hudson, 2008-09 Alabama Teacher of the Year; Dr. Tommy Bice, state deputy superintendent of education-instructional services; and Craig Pouncey, state assistant superintendent of education-finance.

Other highlights include Monday’s Sand Castle Building Contest for a unique lesson in team building; Tuesday’s Board Presidents Roundtable on “Leadership for Improved Student Achievement;” and Sunday’s Alabama Caucus of Black School Board Members open invitation to all members to discuss “Achievement for All Students.”

Threat to MAC Held Off Until April 2009

AASB is pleased that President Bush is expected to sign legislation that allows the Medicaid Administrative Claiming program to continue through April 2009. Without Congressional action, the MAC program was set to end on June 30. The legislation extends a moratorium on an administrative rule that would end school systems’ ability to recapture costs for identifying and matching needed services for Medicaid-eligible children with disabilities.

A temporary win, Congressional leaders now have until April 2009 to find a permanent solution.  AASB supports the MAC program as an excellent example of a partnership between public schools and the state Medicaid Agency to enable point of service delivery for students in need. AASB will continue to work closely with the National School Boards Association and the Alabama Congressional delegation on this issue. AASB recognizes that the MAC program provides critical revenues for your schools. 

Updated AASB Policy Reference Guide
CD-ROMS Now Available

The updated AASB School Policy Reference Guide CD has been sent to each superintendent this week. The 2008 update incorporates changes in the law since the 2006 debut of the guide. Superintendents are authorized to make copies of the CDs for school board members and attorneys.

New Competitive Bid Law effective
AUGUST 1, 2008

Act 08-379 changes the competitive bid law for local school systems. Its provisions go into effect Aug. 1.  Key changes to the law include:

Kudos to school board members who contacted local lawmakers to make updating the competitive bid law a legislative priority! The competitive bid law threshold had not been adjusted for inflation since 1994 and could not adapt to current prices or market practices. School systems found vendors reluctant to make bids and competition dwindling. 

These changes in the law will help schools find the best products at the best price and make a positive impact to the bottom line. Look for additional materials and training on the revised competitive bid law through upcoming AASB conferences and publications.

— Denise L. Berkhalter & Lissa Tucker,
publicrelations@alabamaschoolboards.org