Welcome to the un official website of the
Education Committee of the Arizona House of Representatives

Welcome to EducateAZ.org the unofficial website for the Education Committee of the Arizona House of Representatives. Our intent is to update this site regularly with accurate and timely information related to education legislation and budget discussions. Our goal is to create a supportive and transparent process to help move Arizona education forward. Together, we can accomplish incredible things.


Great Homework Website
I was at a dropout prevention task force meeting in DC this weekend and they talked about the website Cramster. This is a cool homework assistance website.

Today's Budget Release
As expected, the House Republican Leadership released their starting point of a budget this afternoon. These numbers will serve as a place to begin negotiations with members. The public can also weigh in on the cuts and proposed solutions to the current budget crisis via e-mail, phone calls and group meetings (thank you to the Paradise Valley parents and school board members who came to the Capitol today to share their opinions with several legislators including Representative Adam Driggs, Senator Linda Gray and myself). Because reasonable cuts are inevitable to solve a $3 billion deficit, there will be lots of disappointed people; however, now is the time to prioritize what is important to Arizonans and plan for the long-term health of those priorities. This is a short term crisis that demands immediate attention; however, Education must be near the top of our priorities (if not the very top).

There were no real surprises in today's budget regarding education. The proposed cuts are pretty much what was described in yesterday's blog, except that the Charter School cut is $60 per student, down from an original proposal of $75. Appropriations Chair John Kavanagh and Speaker Kirk Adams have been meeting with me often to discuss the education piece. I appreciate their hard work to find alternatives to cuts and their ability over the last couple of weeks to bring the proposed lump sum cut down from $257 million to $175 million. I have told both of them we still need to do something about the $300 million school district fund balance sweeps (there is nowhere near $300 million available) and they have both committed to continue working in this area.

Stay tuned for further updates as the Senate releases their numbers and negotiations begin.

The Danger of Half Truths
With the release of an initial budget today, the mathematical manipulations and distortions begin. It actually began two weeks ago when Superintendent Tom Horne said the cuts would only be 2% and most districts were simply panicking by laying off so many teachers. He has since backed way off his original 2%, saying on Horizon the number could actually be closer to 6%. Then today we had folks e-mailing that charters are being cut significantly less than districts; and finally, there was the article from one legislator saying the cuts were only 1.3%. Unfortunately, all of these statements are true in one sense, but false in another, especially when considered at the individual district or charter school level.

Is there a district in Arizona receiving a net 1.3% cut in general fund revenue after the addition of Title 1 and IDEA stimulus money? There probably is. Unfortunately, general fund revenue is only one source of school funding. This same district most likely has a cut in prop 301 funding, casino gaming revenue, declining enrollment, excess utilities and increased health insurance costs that push it way past 1.3%. This is what is dangerous about Tom Horne's statement and the statement made by a state lawmaker earlier today.

What about Charter schools vs. District cuts? Special provisions have been made for districts with fewer than 600 students (they were exempted from cuts in the 2009 fix and it is being proposed that they only receive 50% of the cuts in 2010) At the same time, almost all charter schools are below 600 students because there are advantages in statute to being a "small school." Charter school cuts come in the form of a per pupil cut, rather than a percentage. The House budget proposes a charter school cut of $60 per pupil. This is in addition to the per pupil cut of $40 in January. When small district cuts and charter school cuts are compared side by side, and taking into account the 2009 cuts, then the reductions are very similar for both. However, as was done by a school board member today, if someone takes the cut being proposed for a large district and compares it to a small charter school, especially a district that has excess utilities, bonds and overrides, then there is a definite difference.

At the same time, it is not a completely accurate statement to say that charter schools receive less funding than districts. When talking about all charters and districts in aggregate, then it is true that districts receive more per pupil funding than charters. However, when looked at by individual district vs. the local charter school(s) in their community, then this is not always true. For example, there are rural school districts who do not have Career Ladder, Excess Utilities, Teacher Experience Index, bonds, overrides, etc. In a growing number of these communities, the charter schools actually receive more per pupil funding than the local district (as an aside, this is not true for most of Maricopa County).

Whenever you hear a comparative statistic, consider the source! People are focusing so much on the "half truths" of Arizona education funding that we completely miss the boat on comprehensive education finance reform and long-term planning. I hope that as ABEC lays out their plans this fall, that we are able to focus on what's best for all children, regardless of where their parents send them to school.

Update on the State Budget
It looks like this week the House and Senate will finally have a detailed budget out for review, debate and negotiation. The last several weeks have been spent gathering information from state agencies and learning details and timelines for stimulus funding.

In addition, leadership is working with the reality that a large tax increase is probably not on the table. To pass a tax increase requires a 2/3 vote. Members of both the Republican and Democrat parties have voiced public opposition to a large tax hike, putting in doubt whether there are 20 Senators and 40 Representatives who would vote for it.

This means the only short-term solutions are cuts, sweeps, reform and borrowing. Longer-term solutions such as comprehensive tax reform and comprehensive education finance reform (as blogged about earlier) will be worked on over the summer to be voted on next session.

Once again, before talking specific details of the education budget, remember that the budget could morph greatly as negotiations take place to get 31 House, 16 Senate, and 1 Governor vote(s). The comments below are where the budget is today.

With regards to education funding, the House and Senate are fairly close to each other with regards to the size of the lump sum cut. There will most likely be a 3% - 4% cut from soft capital. This equates to approximately $150 - $200 million. The original idea was to reduce the base level by this amount but it ended up negatively impacting overrides so soft capital will be reduced instead.

There are other cuts proposed but they affect only certain districts. For example, there is still a proposal to phase out Career Ladder at 28 districts over 11 years. In addition, the funding for Arizona's virtual learning programs (called TAPBI) will be reduced by a certain %; however, the good news is that all districts can now have a TAPBI program and more virtual schools will be allowed statewide.

There is still elimination of the early learners program (the state paying for two years of kindergarten); however, what concerns me in this area is that certain Senators have proposed not funding this year's early learners for kindergarten next year. This means you are going to tell several dozen charter schools and a handful of districts that they have to allow these kids to take kindergarten, but they will receive no funding? And what about the child who transfers to a completely new district or charter school for kindergarten? Do they have to provide kindergarten at no cost?

Continuing on, small school districts (<600 students) will only have 1/2 of the cuts that larger districts receive and charter schools are looking at about a $75 per pupil reduction for 2010.

With regards to ending fund balances of school districts being swept, certain legislators are discovering there is no such thing as "free cash" available for the taking. Any cash swept this year would most likely be made up next year by a local levy. This means those folks pushing to take $300 - $400 million of school balances are actually pushing for a large property tax hike next year. There are a dozen reasons why this is a bad idea, but three of the biggest are these:
1) Those districts who planned for the future (i.e. the end of excess utilities funding, lower sales tax collections, etc.) are the very districts now being punished. Great way to reward competence.
2) Investment banking firms who place bonds for Arizona districts are able to negotiate lower interest rates when there is a positive cash balance, as opposed to a zero, or negative cash balance, as has been proposed.
3) Sweeping ending balances is the most inequitable way of solving a budget crisis. Lots of districts have no ending cash balance, or a negative balance. This will drive up property taxes for some and not for others.

Besides the numbers for education, the bigger debate will be around policy changes accompanying the budget (see the earlier blog on budget BRBs). Will districts be allowed to have 15% overrides? Will bonding be allowed for soft capital? One thing is for sure, both House and Senate leadership want to allow as much flexibility with remaining dollars as possible. For example, any remaining soft capital can be used for M & O expenses.

At the end of the day, there is still about a $400 million hole that cannot be filled easily. The majority of members will not allow any higher cuts to education, which is a relief to me, so other ideas will have to be put forth. Ideas being discussed are rollovers, securitization of the lottery, sale/leaseback of buildings, deeper cuts, etc. These ideas each come with their own set of negative consequences so the next few weeks should prove interesting as members stake out their "die-on-the-hill" issues. One thing is for sure, the chances of this negotiation process taking another month or two is very high.

The Future of School Finance - One Perspective
If it is not obvious by now, our current school finance system is not working. The swings in sales and income tax collections, the inconsistent returns on state trust land, the inequities from overrides and bonds, as well as a dozen other things, all contribute to a funding model that is not meeting our needs. It is inconceivable to think we can reduce education funding (both from the general fund and other revenue sources) and think there will not be long-term consequences.

Many people foresaw the perfect storm in school budget cuts coming for 2010, but getting finance reform through the legislature has proven to be very difficult (no thanks to term limits and clean elections). Back in 2004-2005, Rep. Tom Boone proposed major changes to Excess Utilities funding and overrides; however, after months of work, his bill failed to garner sufficient votes.

At the same time, the Arizona Business and Education Coalition (http://www.azbec.org/) was in the process of drafting a framework for comprehensive school finance reform. They have since finished their framework and have been holding town halls across the State getting feedback.

Last week, Speaker Kirk Adams and I met with ABEC to discuss the next step. Utilizing their expertise on the subject, we asked ABEC to help us prepare detailed school finance reform to be introduced next session. With the help of Senator John Huppenthal, Chair of the Senate Education Committee, we intend to make every effort to pass legislation that adequately funds education, provides accountability, and provides incentives for academic achievement.

Visit ABEC's website often to keep up to date on the process.

2010 Education Budget Language
This past week I asked a member of the House Education staff to draft a quick explanation of how budget language factors into the overall process. In a year when budgets are being cut for everyone, the language/policy that comes with those cuts is often the only thing that can ease the pain (see below for examples).


The state budget calendar (or fiscal year) begins on July 1st of one year and ends on June 30th of the next year. Traditionally, the Legislature adopts one-year budgets for the 15 to 20 largest state agencies, and in odd-numbered years, two-year budgets for the smaller state agencies. Due to the current economic situation, only one-year budgets are being considered for all state agencies.

The budget (or appropriations) process usually contains two types of bills: a general appropriation bill (the feed bill) and several budget reconciliation bills (BRBs - pronounced "burbs"). The feed bill sets out the budgets for state agencies and appropriates (gives money) from the General Fund and other funds so state government can operate. The feed bill lists the lump sums and special line items (appropriations for a specific purpose) and in the current budget shortfall, the reductions, allocated to the various budget units.

The Arizona Constitution stipulates that the feed bill can only contain appropriations to the various state agencies, programs, and public schools (Arizona Constitution, Article IV, part 2, ยง 20). Often, statutory changes are needed to implement the appropriations in the feed bill. This is where BRBs come in to play. Typically BRBs do not include appropriations. Each BRB addresses one subject area and includes both permanent and temporary statutory changes necessary to enact the budget. In short, the feed is the "what" and the BRBs are the "how."



Here are a few of the Education BRBs being seriously considered by the House and Senate:

1) Permit school districts to use Soft Capital funding for FY 2010 for any operating or capital expenditure.
2) Exempt school districts with fewer than 600 students (in K-8 or high school) from 50% of the basic support level reductions.
3) Permit school districts to budget for a 15% M&O override (with some strings attached)
4) Suspend new funding for the early graduation program, but continue to fund existing students.
5) Require every school district that offers full-day kindergarten to also provide meaningful half-day instruction (this is for those districts that do not offer half-day kindergarten but the parents want their child to come home after a half day. Schools need to structure it so that PE, music, computers, library, etc. isn't always offered in the afternoon).
6) Permit school districts with <4,000 average daily membership to do their own accounting, if qualified and approved.
7) Permit school districts and charter schools to advertise on their websites.
8) Permit school districts to bond for Soft Capital for FY 2010 and/or FY 2011.

What Should Small Schools Expect?
During the 2009 budget fix in January of this year, small school districts (those defined as fewer than 600 students) were held harmless from the cuts. For the 2010 budget, it is being proposed that small school districts only receive 1/2 of the lump sum cuts being proposed. There are several reasons for this but the main reason is that small districts lack economies of scale with which to handle any cuts.

The 50% exemption will not apply to charter schools as their funding formula is different from districts. It has been proposed that they receive a reduction in funding per pupil instead, somewhere in the range of $75 per student.

As with all budget items discussed on this blog, it is important to remember two things. First, it is truly our desire to not have to make any cuts. The majority of legislators have children or grandchildren in public schools. The choices we make affect them too. Only because the deficit is so large is education even being considered for cuts. All state agencies and programs will take some level of cuts. Our goal is to minimize the impact and avoid long-term damage.

Second, please remember that any budget item has to be voted on by the Senate and House and then signed by the Governor. We are doing our best to share with you what we think will happen but we make no absolute guarantees.

Recommitting to Updates
As you can see, I have done a poor job keeping this blog up to date while we worked on the budget. Part of the reason was not wanting to put something out there that might end up changing; however, this ended up being a useless strategy as budget conversations are always in a state of flux. If I waited until everything was a sure bet, I would blog the day after the budget was signed by the Governor and you would have already read everything in the newspaper.

To that end, I recommit to you to keep this blog updated with new information several times a week. We will probably write shorter pieces but share more about the discussions taking place with regards to the education budget. At the same time, we are going to make you aware of conversations occurring across the state with regards to the future of education in Arizona. There are some big thinkers out there with bold ideas for a globally competitive education system.

2010 Budget - Update
Now that the effects of the federal stimulus on education funding are becoming clearer, it is time for a 2010 education budget update. If you will recall, the State has projected a budget deficit for 2010 of approximately $3.2 billion. The solution to this deficit will not come from cuts alone, federal stimulus alone, revenue enhancements alone, from borrowing alone or from program shifts alone. Although not popular to say, the solution will most likely include some combination of three or four of these ideas.

Two things that are fairly well accepted by most legislators is that the federal stimulus money for education will keep the 2010 cuts from being as catastrophic as originally presented. Secondly, given the size of the deficit, all programs and agencies in Arizona will have to contribute something toward its solution. This includes education. Where there is tremendous debate is with the size of the cuts.

In recent conversations among appropriation leaders (chairs, vice-chairs and certain members), the desire to provide flexibility to school districts when making cuts has arisen as a top priority. In addition, these conversations seem to indicate that all options are still on the table; however, it is very difficult to see how the Governor's desire to send a tax increase to the ballot could garner sufficient votes to pass (let alone be passed by the voters). However, politics being what they are, never count the idea out until session is over.

The best way to provide flexibility to school districts is to not eliminate specific programs such as All-day K, but rather to provide for an across the board cut. This way the pain is more equitable and local schools and districts can decide for themselves which programs to keep and which to cut. So as not to be misunderstood, there may still be smaller programs that get cut such as the Early Learner program that pays for kindergarten twice; however, the majority of any cuts will be offered as a lump sum reduction.

If you consider that a 1% reduction in K-12 funding is approximately $50 million, then the size of new cuts to K-12 education being debated for 2010 is somewhere between 4% and 7%. Keep in mind that certain cuts to education do not come from the State Legislature such as reductions in sales tax collected (prop 301), gaming revenue (prop 202) or the effects of declining enrollment.

And finally, several people are asking about the April 15 deadline to notify teachers about next year's contracts. An agreement is being negotiated among the Senate, House and Governor's office that would suspend this requirement for this year only, or push the date back 30-60 days. More updates will be posted as information becomes available.

Helicopter Parents
One day my daughter came home from school and informed me that one of her teachers had said I was turning into a "helicopter parent". Because I had a great relationship with the teacher I knew he was kidding, but not totally. As I learned from my time on the Mesa School Board, helicopter parents hover over their children always making sure they do their best. Sometimes they can get a little out of hand (like one particular cheerleader mom I know) but for the most part helicopter parents are constantly looking out for what's best for their children. Their kids are usually high achievers, talented, athletic and/or motivated.

High school helicopter parents are actually the most intense. About half way through my school board term, I started keeping track of lessons learned from them to use on my own seven children. Here they are in no particular order.

Helicopter parents:

Check up on their kids. Today's schools have systems in place to allow parents to check attendance, grades, behavior, etc. Sometimes this is on-line, via phone call or in a teacher conference. Warning signs of possible trouble ahead typically show up first in one of these areas. With today's tools, finding out your kids math scores or whether they went to class is as easy as looking up your checking account balance. Check with your child's school for options.

Don't just look at their neighborhood school. Arizona's open enrollment laws are some of the best in the country. Maybe your neighborhood school, within walking distance, is the best for your child; maybe not? Helicopter parents typically look at other schools within the district, or charter schools, or private schools, etc. to find the best fit for their child. Of course, several factors must be considered but it is nice to have options.

Have their child take a course on-line. After high school, almost all colleges and universities require/offer courses on-line. In addition, taking on-line courses in high school offers flexibility and variety. Parents who want their kids to graduate early, make up credits, take college courses, or have more room for electives will often have their students take courses on-line.

Take advantage of standardized tests such as the ACT, SAT, or PSAT. There is no downside to taking a national standardized test on a Saturday morning. If you "fail" the ACT exam, it has no impact on your high school grades or graduation. However, if you take one of the standardized tests, and do well, look at the potential rewards; college credit, scholarships, awards, etc. Also, If you take an AP or IB class, be sure to take the corresponding exam. It could pay large dividends.

Make the most of senior year. So many students can't wait until their senior year to go a half day. Families need to decide if this is the best use of their child's time. If a student can complete their freshman year of college while still in high school, thousands of dollars in tuition can be saved. Alternatively, there are several Career and Technical Education courses that can be taken senior year that lead quickly toward certification and good paying jobs.

Talk post high school very early. Nowadays, no matter who you are, the chances of only a high school diploma leading you to a career that can comfortably support a family of four is almost non-existent. Helicopter parents talk early with their kids about the necessity for education and training after high school and plan accordingly. There are so many options; college, trade school, military, apprenticeships, etc. or any combination of the following.