Legislature and School Funding at Dangerous Crossroads

The Arizona Legislature has had a difficult task balancing large budget revenue shortfalls with finding new revenue sources and choosing programs for reductions. 43% of the state budget goes to school funding (public schools, charter schools, higher education) that also includes $55 million presently used for private school vouchers. The private school tax credit vouchers were extended to April 15th by the Legislature keeping public school and charter school tax credits at the present December 31st cut-off date. The stated belief is that the more public school/charter school students that go into private schools, the more money the state can save in public school funding.

With the legislature ending this week FHUSD will lose about $928,000 before the results of the May 18th 1% Sales Tax Proposition. This is the third straight year of school funding cuts including mid-year cuts implemented when revenue projections fell short. If Proposition 100 fails at the ballot box FHUSD will need to cut $1.7 million.

One very important aspect of the budget not being publicized due to the over emphasis on the current cuts and September 18th is two November 2010 ballot measures to help solve the 2012 budget. The two measures are the state recovering voter protected funds from the "First Things First" Birth to Age 4 support funds ($380 million) and the State Land Conservation Fund ($120 million). These funds are presently part of the Legislative plan to solve the 2012 budget deficit that will most likely rival this year's shortfalls. Without these funds it is highly likely the state will again have to make mid-year cuts which creates major problems for schools.
By contract law school districts must provide a full-year contract for certified (teaching) staff that must be honored for the entire year. A $500 milliion shortfall does not allow school districts any options for cutting staff at mid-year to face likely further budget cuts. Most districts use 75-79% of their budgets based on personnel costs. It would be next to impossible for schools to make any substantial cuts in the event the legislature again sought to cut school funding due to revenue shortfalls.

In essence the Legislature's continued emphasis on gimmicks in place of restruturing a fundamentally flawed system overly based on consumption is leading them down a path toward a game of Russian Roulette. They have now let another session go by without any fundamental change in the tax system. They are now dependent upon the voters for Proposition 100 and the two November measures to save the 2012 budget. In the meantime, education and social services continue to carry the burden for a failure to lead and to act in time when real leadership is needed within a sustained bi-partisan effort.