Page 20 - AASBO EDGE 2020 WINTER

LEGISLATIVE WORKSHOP

BY DON HARRIS
Chuck Essigs Ken Hicks Dale Ponder Karla Soto
20 by 2020 Pay Raise Pulls $50M from Classroom Site Fund

Teachers are assured of receiving the third and last part of million – added to the $124 million from the General Fund –
the 20 by 2020 pay raise promised by Gov. Doug Ducey and that will cover the third year of teacher pay raises.
approved by the Legislature, but there is a potential problem
brewing about how it will be funded. The problem is that money from the Classroom Site Fund
is for teacher performance pay and teacher base pay, plus
At the Legislative Workshop on November 15 sponsored general maintenance and operations.
by three school groups, including AASBO, attendees were
cautioned to prepare for negative reaction from teachers. Essigs suggested that when teachers learn that the Classroom
Chuck Essigs, AASBO Director of Government Relations, Site Fund has an additional $50 million for school districts,
called it “a $50 million issue.” they will think they’re getting the 5% pay raise plus the $50
million.
The 20 by 2020 deal promised teachers an average pay raise
of 10% in 2018, 5% in 2019 and another 5% in 2020, fully “Make sure your people are prepared for that,” Essigs said,
implementing the pay package. and asked the panel members to comment.

Essigs, who moderated a panel discussion
on the teacher pay issue, explained that the
cost to the state General Fund in 2020 is
$174 million, compared to $165 million in
2019. “There is no dispute on that number,
but be aware of how it is to be funded,”
Essigs said. “Be prepared for that when
teachers and administrators understand
where that $174 million is coming from.”

He noted that $124 million will come
from the General Fund and will represent
an increase in the base level, just as it has
for the two previous years. And that’s
where the Classroom Site Fund enters
the picture. In 2020, the Legislature
will fi nally pay off a loan it took out to
fund various projects under Students
First, a capital fi nance program, freeing
debt service money. That will leave the
Classroom Site Fund with an extra $64
million to distribute to its benefi ciaries,
Essigs said.

Essigs estimated that the state universities and community The panel consisted of Ken Hicks, Assistant Superintendent
colleges will receive about $14 million of that money, and for Business Services, Dysart Unifi ed School District; Dale
public school districts will receive $50 million. It is that $50 Ponder, Chief of Finance and Operations, Crane Elementary

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20 THE EDGE WINTER 2020