Before getting in to the latest on budget, I wanted to let you know that I did meet with the Financial Advisory Group last Thursday. In the forums I stated I would do this. They were given just over a week to talk with the employees that they represent to see if anyone has come up with ideas other than what has been presented. Of the seven members (not counting me), one felt that not everything had been looked at but had no suggestions as to what we could do that hasn’t already been done. The other six felt we had exhausted our options. I know that some community members are working to come up with something. It is my sincere hope we can find a way to work together through these difficult times. When you read below what is coming I think you can see our challenges are just beginning.
The legislature was supposed to come out with two budgets last week: one if the sales tax passes on May 18th and one if it fails. They didn’t have the votes necessary to get the proposals passed, so they will try again this week. They have suspended all committee work until a budget is proposed. Last week I received information from two different sources that say they are close, so hopefully this week we will hear something. Once we hear what the legislative proposal is I will post what the impact to us is. I can tell you that the Governor’s proposed budget assumes the sales tax will pass on May 18th. In her budget proposal, she eliminates funding for full day K ($177,141 to us); she eliminates all soft capital funding ($238,883 to us); and she proposes to reduce CORL funding (approx $245,000 to us). These reductions are in addition to our loss of $227,322 due to decreased enrollment. Remember her budget assumes the sales tax will pass. I am posting below some information about the sales tax vote that was sent out by the Arizona School Administrator’s Association. Once the legislature announces their proposed budget, I will post what the impact to us will be if the sales tax fails (preliminary figures look like we would have to cut over $2 million).
As for this year, on Tuesday, March 2nd, we were informed that they cut us $144,555.79 from this year’s soft capital allocation. We were also told that they are probably going to withhold our last three payments until after July 1st. This amounts to $1.4 million to us and will obviously cause a cash flow issue. This will not directly impact employees at this time because we took out a line of credit in case this happened. To date we have not used the line of credit, but if they truly withhold three payments we will almost certainly have to. The problem with this is just like if you personally take out a loan: you pay back what you borrow plus interest.
Important Information on the May 18th
1% Sales Tax Vote – Proposition 100
Read below for a Q and A about the Sales Tax ballot measure on May 18, 2010.
Q. What is the One Cent Sales Tax proposal?
A. The temporary sales tax would be one percent or one cent per dollar.
- It would be in effect for three years, from June 1, 2010, to May 31, 2013.
- The sales tax is expected to generate $2.9 billion in revenues over three years.
- Two-thirds of that sales tax revenue – or $1.9 billion – would go to K-12 public education.
Q. Will the Sales Tax initiative solve the States’ deficit?
A. The sales tax does not solve the state’s deficit, but is a critically important part of the solution.
Q. How much of the Sales Tax Initiative will go for education?
A. The May 18th election requires that two-thirds of the revenue generated by the sales tax increase to go to support “PUBLIC PRIMARY AND SECONDARY EDUCATION.” Based on the expenditures proposed in the Governor’s 2011 budget, the projected $898 million in revenue would be allocated as follows:
Primary education $695 million
Secondary education $203 million
Q. Why is the One Cent Sales Tax important to Arizonans?
A. The Governor’s budget assumes the passage of the one cent sales tax. The total proposed expenditures in the Governor’s budget are $8.6 billion, of which $898 million is supported from the revenues generated by the sales tax increase.
Q. What happens if the sales tax initiative fails?
A. K-12 education would be looking at a 20% reduction in state support for school district operating budgets. This will mean devastating cuts to public education including fewer resources, loss of jobs and programs, higher class sizes and students who will not be prepared to compete in the global economy of the future.
Q. What else do I need to know about the sales tax proposal?
A. To register to VOTE and or apply to receive a permanent early ballot, visit your county board of elections. The last day to register to vote is April 19, 2010. Early voting begins on April 22, 2010; the last day to request an early ballot is May 7, 2010.
Q. How can I stay informed?
A. The Arizona Education Network will post current information at – www.arizonaeducationnetwork.com
March 24, 2010 at 7:24 am |
SOUNDS LIKE A GREAT PROPOSAL –THE PROBLEM IS IN 3 YEARS THE PROGRAMS WILL KEEP GROWING WITH THE SMELL OF THE NEW MONEY COMING INTO THE SYSTEM– FOR 41.5 YEARS I HAVE WORKED AS A MANAGER IN GOVERMENTAL OPERATIONS– MY WIFE HAS WORKED IN THE EDUCATIONAL FIELD — THERE IS NO END TO THE WANTS OF BOTH AGENCIES AS YOU KNOW—AFTER 3 YEARS THE SPENDING WILL BE EVEN GREATER AND THE CYCLE CONTINUES– NOT ONLY WILL THE SKY FALL IF THE 1% IS REMOVED –BY THAT TIME THESE AGENCIES WILL BE DEPENDENT AND WANT EVEN MORE THE THAN THE 1 % THE SAME STORIES WILL BE WHEELED OUT AGAIN — THAT THE SKY IS FALLING — THE UNIONS WILL HAVE GIVEN INCREASES DURING THESE PERIODS EATING UP A LARGE MAJORITY OF THE FUNDING TO —-SAVE THE CHILDREN— IT SEEMS TO ME THAT WITH MY EXPERIENCES ALONG WITH MY WIFE AS A TEACHER THAT ITS REALLY ABOUT SAVING JOBS AND EMPOWERING THE TEACHERS UNIONS AND PUBLIC EMPLOYEES UNIONS—- SO THE BOTTOM LINE IS ITS TIME TO SHOW THE TAXPAYERS THAT WE CAN BE ACCOUNTABLE AS PUBLIC EMPLOYEES AND TAKE A PAY FREEZE — AND FEEL GRATEFUL TO THE TAXPAYERS WHO HAVE PAID OUR WAY– IF WE KEEP EXPECTING THEM TO LOWER THEY FAMILIES LIFESTYLE BY RAISING THEIR TAXES