New Laws 2012 Legislative Session

New Laws2012 Legislative SessionSchool Superintendents of AlabamaSummer ConferenceJune 2012SSA Summer Conference, 201216/28/2012Economic Interest Forms ACT No. 2012-509 (Rep. Mac McCutcheon)Changes the existing law for filing economic interest forms from $50K to $75KAllows for base to be adjusted on January 31 of each year to reflect changes in the U.S. Department of Labors Consumer Price indexException: Every full-time public employee serving as a supervisor regardless of income and anyone who has the authority to expend public fundsEffective date: 1st day of the 3rd month following its passage and approval by the Governor.Digital TextbooksAct No. 2012-560 (Rep. Jim McClendon)Cited as the Alabama Ahead ActStates that in FY 13, students in grades 9-12 shall be provided in electronic format digital textbooks and other instructional materialsAlso requires the provision of a pen enabled: tablet, mobile computer or other electronic device for using this digital materialRequires SDE to convene an advisory committee of, but not limited to, the House and Senate sponsors and a member from each chamber appointed by the leadership to assist in the implementation of this actNOTE: There is no funding attached to this bill. Effective Date: 1st day of the 3rd month following its passage and approval by the Governor. Sections 2 to 12 (the funding part of the bill) shall be implemented only upon separate legislative enactment providing a specific date for implementationAthletes and ConcussionsAct No. 2012-314 (Rep. Ron Johnson)Previous legislation for student athletes with concussions required the governing body of each sport or recreational organization to:Develop guidelinesEnsure coaches receive annual training Act No. 2012-314 requires local school systems to:Develop guidelinesEnsure coaches receive annual training Act No. 2012-314 requires that a student suspected of sustaining a concussion be removed from participation on the day of the injury receive clearance from a licensed physician before returning to playEffective date: Upon signature of the Governor

Flexible School CalendarAct No. 2012-560 (Rep. Randy Davis)Intent is to generate more revenue for the ETFAllows for the hourly equivalency of a 180 full instructional day (1080 hours)Start no earlier than the Monday two calendar weeks before Labor Day, unless August 31 is a Monday, then on Monday August 17.Last day of instruction for students shall be no later than the Friday immediately before Memorial DayLaw is effective for 15 months Begins in August 2012; ends with the last day of the 3rd month of the FY14 school yearNOTE: The bill separates instructional days and contract days but does not define a contract day. However, the education budget defines a teacher contract as 187 days.Effective Date: 1st day of the 3rd month following its passage and approval by the Governor.Flexible School Calendar and The Rolling Reserve ActEstablishes the maximum amount that may be appropriated from the ETF in any fiscal year, beginning with FY13Calculation of the Cap:Begin with the total recurring revenues deposited into the ETF in the most recently completed fiscal yearFor the FY13 budget, the baseline is FY11 or $5,305,361,155Baseline is adjusted by the average growth rate in the ETF for 15 most recently completed fiscal yearsFY13 baseline is based on 1997-2011Average growth rate was 3.29%Multiply the baseline by the average growth percentage to determine the amount to add to the baseline ($174,546,382)Add the baseline and the amount of growth percentage to determine the preliminary cap$5,479,907,537$108,092,463 less than FY12 appropriation total ($5,588,000,000)If the growth rate for FY11 exceeds the 15 year average, then an adjustment is made to increase the cap. The growth rate for FY11 was 1.68% so no adjustment can be made for this provision.SSA Supported the Flexible School Calendar Bill If legislation is enacted (Flexible School Calendar Bill) that will increase recurring revenues deposited into the ETF, then an amount equal to 95% of the fiscal note attached to the legislative act is added to the cap.If there are excess funds at the end of the year (projected to be $190M) that exceed the capPay back Rainy Day Fundborrowed $437M to be paid back in 6 years; three years leftBudget Stabilization Fund20% of current appropriation from the ETFCan use if cap does not equal previous year budgetOr if needed to prevent prorationEducation Trust Fund Capital FundRationale for Our SupportBy passing HB 360 (Flexible School Calendar Bill) and increasing recurring revenue, the legislature can raise the cap.By raising the cap, the legislature can reduce divisors.Even if the increased recurring revenue doesnt materialize, it doesnt matter becauseHB 734 (Act 2012-489) earmarks $40 million for the Budget Stabilization FunFY 13 BudgetSection 10. All encumbered balances of a previous fiscal year appropriation other than the exclusions authorized by the Code of Alabama 1975, Section 41-4-93, shall lapse no later than September 30 of the fiscal year immediately following the fiscal year for which the appropriation was made and shall revert to the credit of the Education Trust Fund or earmarked fund from which the appropriation or appropriations were made.

Fleet Renewal BondAct No. 2012-562 (Rep. Mac McCutcheon)Raises the bonding authority in a 2005 BRAC bill from $175M to $208M

Earmarks $33M of the bond for school bus fleet renewal for FY13

Effective date: Upon signature of the GovernorSchool Board Governance Act No. 2012-221(Rep. Elaine Beech)Requires the State Superintendent of Education to:(1) adopt a model code of conduct for members of local boards of education by January 1, 2013; (2) develop continuing education and training programs for members of local boards of education;(3) conduct investigations and provide for notice and hearing of board members upon receiving written complaint of allegations of neglect of duty, misconduct or breach of duty by a board member; and (4) develop and issue regulations to implement the provisions of this bill.Governance (contd.)Requires school board candidates to affirm that each decision, action and vote must:be based solely on the needs and interests of students or the system;not be made to promote personal, political or pecuniary interests of the board member;be based on the interests of the system as a whole.Clarifies that individual board members must currently reside in the area served and must meet certain standards: good moral character; high school diploma;not employed by the board; does not serve on the governing board of private elementary or secondary educational institution;is not on the National Sex Offender Registry of the state sex offender registry; and,has not been convicted of a felony.Candidates also must state that each board member will:consider the views of fellow board members and superintendents before any action or decision;act on the written recommendation of the superintendent and not (individually or jointly) attempt to direct or corrupt system operations in a way inconsistent with the roles and responsibilities of the superintendent;promote and support public education; andattend board meetings, system functions and training.

Governance (contd.)Governance (contd.)The law additionally specifies school board member responsibilities and provides sanctions for actions or inactions that constitute neglect of duty or willful misconduct. Upon investigation, review and hearing, the following sanctions may be recommended to the State Board of Education:Formal censure or reprimand of the board member;Disqualification from eligibility for future appointment, reappointment or election to any local school board in the state (includes failure to meet mandated training and attendance requirements.)

State Board of Education must adopt the model code of conduct for members of local boards of education by January 1, 2013 and local boards must adopt this, as a minimum, by April 1, 2013Effective Date: Upon signature of the Governor

Definition of de minimisAct No. 2012-433 (Rep. Jay Love)A value of twenty-five dollars or less per occasion and an aggregate of fifty dollars or less in a calendar year from any singly provider

Can be adjusted by the Alabama Ethic Commission through the Administrative Procedure Act or adjusted each four years from the date of the enactment to reflect cost of living as indicated by the U.S. Department of Labor Consumer Price Index

Effective Date: 1st day of the 3rd month following its passage and approval by the GovernorJoint Purchasing AgreementAct No. 2012-557 (Rep. Jim Carns)Currently, purchases of goods made as part of any purchasing cooperative sponsored by the National Association of Counties are exempt from competitive bids.

Expands this option to include any other competitive bid nationwide cooperative purchasing program or other national or regional governmental cooperative purchasing program.

Effective date: 1st day of the 3rd month following its passage and approval by the Governor.School Grading SystemAct No. 2012-402 (Rep. Terri Collins)Directs the State Superintendent of Education to develop a school grading system reflective of school and district performance (i.e., A, B, C, D, or F) by the end of 2012Must be in place by the FY14 school yearGrading criteria includes achievement scores, achievement gap, college and career readiness, learning gains and other indicatorsCreates the Legislative School Performance Recognition Program within the SDE to reward public schools that either:Demonstrate high performancetop 25% using the grading system Demonstrate exemplary progress improving overall annual ranking of the school by at least one letter gradeEffective Date: Upon its passage and approval by the GovernorFarm to School ProcurementAct No. 2012-437 (Rep. Elaine Beech)Establishes a cooperative agreement between the Department of Agriculture and the State Department of Education to:Investigate the potential of various procurement procedures for schools to purchase local farm productsEducate CNP personnel on the small purchase threshold and tools to promote their use Implement food preparation training for food service staff to accommodate sourcing fresh and local foodsEncourage CNP directors to include local farmers and suppliers when procuring farm products that fall under the small purchase thresholdEncourage all new school construction projects to consider kitchen facilities capable of producing fresh and healthy school meals and opportunities for hands-on learningAllows purchases of unprocessed agricultural products (defined in law) of $100K or less without competitive bid.Effective date: 1st day of the 3rd month following its passage and approval by the GovernorDecrease Age of Attendance to 6Act No. 2012-295 (Sen. Priscilla Dunn)Changes the mandatory age for children to attend school from 7 to 6.Parents, legal custodians, or guardians of a child who is six years of age may opt out of enrolling their child in school at the age of six by notifying the local school board, in writing, that the child will not be enrolled until the child is seven

Effective date: 1st day of the 3rd month following its passage and approval by the Governor.

Supplemental Appropriation for NBPTSAct No. 2012-263 (Rep. Jabo Waggoner)Supplemental appropriation of $2,313,850 from the ETF to the SDE for the current fiscal year to pay the entire $5000 salary supplement to NBPTS teachers for FY11 and FY12

Beginning January 1, 2013, authorizes the payment of the same annual salary supplement provided for teachers for any NBPTS principal. No funding is included in this appropriation for this item.

Effective date: Immediately following its passage and approval by the Governor.

Physicals for School Bus DriversAct No. 2012-372 (Sen. Del Marsh)Lt. Dexter Holcomb ActRequires every school bus driver to pass a physical exam, by a licensed physician, at his or her own expense, by August 14, 2012Some are grandfathered in by any pre-existing condition in the law provided they (1)get a note from their doctor saying the condition will not affect their driving and (2) sign a waiverRequires any newly hired person to successfully complete a physical examination by a licensed physician.Bus drivers must pass an exam every two yearsBill describes what determines the person to be physically qualified to drive a bus (i.e., has no loss of a foot, a leg, a hand or an arm; no established history of diabetes mellitus requiring insulin for control; etc.)Effective Date: Immediately following its passage and approval by the Governor.Note: The State Board approved emergency rules on June 14, 2012. Prior to this, all transportation supervisors were trained on the law and its requirements.

SSA Summer Conference, 20126/28/201221$300 Classroom Supply FundsAct No. 2012-414 (Sen. Greg Reed)Provides an annual appropriation from the ETF for each earned unit the sum of $300 for classroom supplies (i.e., paper goods, cleaning supplies, hand soap and clear, pencils, pens, paper and similar general supplies utilized on a regular basis in the classroom)

Expenditure of these funds must come through the local school budget committee.

Effective date: 1st day of the 3rd month following its passage and approval by the Governor.

New Hire Plan Act No. 2012-377 (Sen. Arthur Orr)TIER 1 Retirement BenefitsMembers hired prior to January 1,2013TIER 2 Retirement BenefitsMembers hired for the first time on or after January 1,2013Retirement benefits with 25 years of service at any age or age 60 with at least 10 years of service

Retirement Benefit Factor: 2.0125%

Member Contribution Rate: 7.5%

Average Final Salarythe average of the highest 3 years out of the last ten years

Earnable compensation shall not exceed 120% of base pay

Sick Leave ConversionRetirement benefits for members of TRS at age 62 with no 25-year retirement benefits

Retirement Benefit Factor: 1.65%

Member Contribution Rate: 6%

Average Final Salarythe average of the highest 5 years out of the last ten years

Earnable compensation shall not exceed 125% of base pay

No sick leave conversion

Benefit cap of 80% of average final salary

New disability standard for new hiresAlabama Trust Fund ChangesAct No. 2012-490 (Sen. Arthur Orr)Constitutional Amendment that will be voted on September 18.Takes $145 million a year from the Alabama Trust Fund (oil and gas revenue) for 3 yearsRepayment would come from the ETF RDF repaymentWould (hopefully) prevent raids on the ETF for the GF FY13 ETF BudgetAct No. 2012-569Information provided by SDESystem AllocationsFriday presentation

On the Horizon2013 Legislative SessionSequestrationWhat is it and how did we get hereStems from Debt Ceiling Debate, Summer 2011

Resulted in Budget Control Act which, among other things, created bipartisan, bicameral Joint Deficit Commission

12 member committee tasked with identifying $1.2 trillion in cuts/savings over 10 years

Failed to produce plan, triggering sequestration

SSA Summer Conference, 20126/28/201227What Is Sequestration?Sequestration = automatic, across-the-board cuts Process triggered in Jan. 2012, cuts will come Jan. 2013Impacts almost all aspects of federal budget; ALL programs in USED except PellInitial CBO estimates placed sequestration cuts at 7.8%; more likely to be at 9.1%

What Does It Mean?Real-time, mid-year cutsRemember the Title I and IDEA adjustments in Oct 2011? Similar concept, except deeper.Cuts to USED will be between $3.5 and $4.1 billionEstimated Education Impact at 7.8% level:Title I: $1.1 billionIDEA $978 millionPerkins:$136 millionHead Start: $590 million

Cuts are coming, whether through sequestration or Congressional actionCongress could act to identify blend of spending cuts, revenue (taxes) and mandatory spending (Medicare) reformCongressional action would likely still include cuts to education, but to a much lesser extent

Congress gave themselves the work of identifying$1.2 trillion in savingsIf we get to sequestration, it is because Congress failed to act.Sequestration is a blunt instrument, cutting all programs without considering demand, effectiveness, or return on investment.Efforts to exempt portions of the budget (i.e., defense) simply amplify the severity of cuts to education

SSA Summer Conference, 20126/28/201229Students First Reform Agenda*Elevate the teaching profession by valuing teachers impact on studentsStudent results, expand certification, performance pay, base staffing decisions on student results, eliminate tenure. Empower parents with real choices and real information School choice, provide parent access to school data, empower parents to avoid low-performing teachers and schoolsSpend taxpayers money wisely to get better results for students.Accountability systems, transparent budgeting to ensure that public funds maximize student benefit, ensure that the government exercises discipline in pension and benefit programs.* Michelle Rhee, StudentsFirstFoundation for Excellence in EducationAgenda*Advancing high expectations and rigorous academic standardsRequiring data-driven accountability for schoolsRewarding effective teachersFunding for achievement (School Grading Bill)Expanding school choice for families (vouchers, open enrollment, charters, private school tax deductions, etc.)Unleashing the power of digital learning (virtual schools, virtual courses, online curricula, etc.)* Jeb Bush, Former Governor of Florida

School31SSA Summer Conference, 20126/28/2012ALEC Reform Agenda*Parent Trigger Education Enterprise Zone (Vouchers)Charter SchoolsPrivate Scholarship Tax Credits Alternative certification* American Legislative Exchange CouncilParent Trigger places democratic control into the hands of parents at school level. Parents can, with a simple majority, opt to usher in one of three choice-based options of reform: (1) transforming their school into a charter school, (2) supplying students from that school with a 75 percent per pupil cost voucher, or (3) closing the school.Education Enterprise Zone (Vouchers)creates and provides for parental choice of schools within an educational enterprise zone (EEZ)provides that if the student attends a private school, the state shall issue to the parent a voucher valued in an amount equal to the average amount of per pupil funding allocated to that school system, or the full amount of the private school's tuition and fees, whichever is less.Next Generation Charter SchoolsPrivate Scholarship Tax Credits declares the state legislative bodys support for the creation of a tax credit for individuals and businesses that make a contribution to a nonprofit scholarship or educational assistance organization.

32SSA Summer Conference, 20126/28/2012Romney Education AgendaA Chance for Every ChildVoucherlike systemWould like to see federal dollars (Title I and IDEA--$48.8B) go to individual entitlements (school choicepublic or private)Expanded parental choice through open enrollment Plan requires states to adopt open-enrollment policiesLoophole: hinges on schools having sufficient capacity to accept transfer studentsSchool choice should be a state and local issuenot a federal issueexpand choices for families so children can flee failing schoolsabout face from the Bush signature domestic initiative (NCLB)choice will promote competition for students and lift all schoolsStrong belief in market driven reformTeaparty disdain of the federal governmentWould remove federal government intervention in low performing schools and have schools compete for students in a more market-based approach to qualitySchool vouchers are back in the news except that proponents of the idea, including Mitt Romney, are not using the word vouchers any more. For some reason voters dont like that term, but they do like the idea of giving parents more choices, so vouchers I mean scholarships and choice are a big part of Mr. Romneys education platform.

Listen to him talk about it, and its as though weve traveled back in time; substitute Bob Dole for Romney and President Clinton for President Obama, and its the same debate we had in the 1990s.

There is a lot more choice in education now than there was two decades ago: voucher programs for private and parochial schools are well established in cities like Milwaukee and Cleveland, and states like Indiana and Louisiana have enacted them more recently. There are also about half a dozen state programs specifically for students with disabilities. Meanwhile, charter schools continue to proliferate; there are now more than 5,000 of these publicly funded alternatives that students can choose to attend rather than their traditional neighborhood school. But despite all that, this latest round of voucher-pseudonym talk probably wont amount to much. Thats because school choice is a state-by-state game, not a federal oneSSA Summer Conference, 20126/28/201233Obama Education AgendaChange you can believe inCharter schools and school choicePublic dollars for public schoolsTeacher evaluations tied to test scoresPreparing students for college and careersHold schools accountable for making progressImproving teacher and principal performanceStaying in school until age 18What about the Rolling Reserve?*Legislators do not want to alter the law

$150 million less for FY13Next year, $400 million will be available for ETF under RRA calculations$520 will go toward Rainy Day Fund repayment

There can be no Cost of Living adjustment unless the RRA is modifiedCOLAs are usually given at least once during a 4-year legislative term but RRA will prevent this By the next Legislative elections, educators will have received no COLA and will have seen a 7.5% decrease in their pay (PEEHIP and TRS)* Alabama School Journal, June 11, 2012QUESTIONS?lisa@ssaonline.org (334) 356-0954