Page 14 - The Edge - Winter 2016

MANY DEMANDS FOR STATE BUDGET SURPLUS e 1 percent threshold would have occurred in 2008, 2009, and

CONTINUED FROM PAGE 13 2010, during the Great Recession. e 2 percent trigger would have
been met six times since 1992.
Beginning in 2026, if K-12 spending as a percentage of the
general fund exceeds 49 percent, the Legislature could reduce the
discussion about the university budgets in the upcoming legislative base level. K-12 last exceeded 50 percent in 1983, and that was
session,” Stavneak said. when Medicaid (now AHCCCS) was only 1 percent of the budget.
Factors resulting in baseline changes for K-12 include AHCCCS is now at 21 percent of the general fund budget, Stavneak
enrollment growth, a higher average cost per pupil as charter said, which makes it highly unlikely that the trigger will be met.
schools attract more students from district schools, more special “Medicaid spending has a signi cant impact on state budgeting,”
needs students, and in ation increases ranging from 1.14 percent Stavneak said. “ at factor will keep K-12 spending well below
in 2017, to 1.9 percent in 2018, to 1.84 percent in 2019. trigger amounts.”
“2017 it might be the rst time since 2006 that we actually have a
Stavnneak concluded his presentation noting that he works with
structurally balanced budget,” Stavneak said. “ at means ongoing a nonpartisan sta for the Legislature. “We don’t really have a dog
revenues are in alignment with ongoing spending. e challenge
for us is not to go crazy and spend all of the $550 million on in the policy ght,” he said. “We have a front row view on how
permanent initiatives – on tax cuts or on the spending side. at’s those policies are created.”
the challenge the legislators are going to face in the upcoming He commended representatives of ASBA, AASBO and ASA for
session. ey will have to navigate a very tricky path about how to their e orts in working with legislators on special session legislation
meet the needs that everybody wants addressed, but making sure to settle the in ation funding lawsuit. “You may agree with it or
that the state general fund is protected so that we’re not going from you may not agree with it,” he said, “but your representatives were
feast to famine.” passionate advocates, and at the same time were very reasonable
Stavneak brie y addressed the economic triggers that could with the approach they took and were very civil. ey served you
suspend in ationary adjustments, saying they are rare. For example, very well.”
the annual K-12 adjustment may be suspended if both state sales A member of the audience expressed hope that Stavneak was
tax collections and employment grow by less than 2 percent, on the schools’ side of budget issues. He responded, “I’m on
and would be mandatory if their growth is less than 1 percent. everybody’s side.”

Are your teachers questioning their

career choice?

With financial pressures of student loans, concerns
about achieving financial goals and the stress of
uncertain education funding, some teachers are
considering leaving the career they love.
How can you retain your staff when budgets are already
tight? Consider partnering with businesses to add
employee programs. Horace Mann can provide quality
financial education workshops, explain proven ways to
secure classroom funding and offer extras like a
teacher recognition program.

For information about Horace Mann
and how we can help your schools and your
employees, visit schools.horacemann.com
or contact us at 866-999-1945.

14 THE EDGE | WINTER 2016