Monday, May 23, 2011

Budget update

Just a quick update that it looks like there is agreement on the operating budget but few details. Both caucuses are expected to share details with their members and the budget will be revealed at 10 a.m. Tuesday.

A quick glance at HB 2065, indicates a 15% cut to ALE programs (online, parent partnership and contracted ALE), which is a cut to basic education. Legislators are trying to garner $40M and don't think the savings on eliminating parent partnership stipends will net enough.

Speculation is rampant on K-12 salary reductions, but the rumors are an agreement on 1.9% for teacher pay cut and 3% to classified and administrative employees.

As to bus depreciation and the $95 million tied to the lump sum payment, no word on where this will end up. Some speculation is that will be taken but not at such a large rate.

The House is currently doing the workers compensation reform bill(s), while Senate Ways & Means is getting ready to run a number of bills necessary to implement the budget. The House Ways & Means Committee is supposed to start their meeting at 5 p.m., but it could be delayed based on what happens on workers comp and how much time that takes.

Final sticking points of major issues: the capital budget tied to the constitutional amendment to reduce the debt limit from 9% to 7%, and reorganization of several state agency operations and contracting out provisions. A five-corners meeting just broke up on the constitutional amendment with no agreement. We may end up with a cash-only capital budget, which would result in $330 million for school construction match.

Also in the final countdown is the science assessment bill that would delay the link between graduation and passing the science test to either 2017 or, under an amendment by Rep. Dammeier, roll it back to 2015. We think there is agreement to roll back to 2015 but to drop the requirement that students in the class of 2014 that fail the test have to take a third science credit - a serious unfunded mandate to schools.

More later.