Page 37 - The Edge - Winter 2016

EYE TO EYE: EVOLUTION OF THE SCHOOL in annual funding, which bumps up to $75 million for five
years after that. The education groups had agreed to drop their
FINANCE DEAL request for about $1.3 billion in back pay for the money they say
CONTINUED FROM PAGE 25 the Legislature should have paid in the years after the recession
hit, and the additional funding make up some of the difference.
AASBO, the AEA and ASBA analyzed the trigger requirements “That helped make us willing to accept the lower base level,”
and decided they could accept them. ASBA Executive Director Essigs said.
Tim Ogle said they were also pleased with another key provision The Ducey administration presented the governor’s concept
– if the Legislature suspends inflation payments for a year, the to both sides early in the week of Oct. 19, and the education
following year it must pay the amount of inflation that it would groups quickly called emergency meetings of their boards of
have owed if the suspension had never taken place. directors. The last vote came on Friday, Oct. 23, when the AEA
board approved the deal. Morrill called Adams around 10:10
THE SWEETENERS p.m. to give him the news.
“Andrew called me right after the board meeting broke up
“Schools experienced the devastating cuts and they’ve never and said we have a deal,” Adams said. “We were waiting for the
been restored. So what the trigger language does is it doesn’t let call. And then drafting began that weekend.”
the cut be the new normal,” Ogle said.
The Ninth Floor decided to add a couple of sweeteners to the
governor’s proposal that would help entice each side to accept
the deal. For the Legislature, the Ducey administration included “When we can actually get in the room with those
“aggregate triggers” that would allow lawmakers to make some
reductions in K-12 spending if it reached 49 percent of total plaintiffs, and look at them in the eye, and they
general fund spending, and larger cuts if it reaches 50 percent. can look at us in the eye, that really cleared some
The aggregate triggers do not go into effect until 2026.
Adams described the aggregate trigger as a “worst-case of the communication. That’s not to denigrate
scenario to protect the general fund” by putting a temporary
cap on K-12 spending. some of the previous process, but that is a big
“We included it, along with the other triggers, because we
felt it would be necessary to help the Legislature accept a higher difference, when we’re sitting down looking at you
base,” he said. eye-to-eye and their looking at me eye-to-eye.”
The plaintiffs got additional funding that wouldn’t be added
to the base, but could help the schools take care of needs they — Senate President Andy Biggs
weren’t able to afford due to previous budget cuts. For the first
five years of the deal, schools would receive an extra $50 million

Timeline

Aug. 25: Mediation between the Legislature and the school Mid-October: Lorenzo Romero, Ducey’s budget chief, and JLBC
groups, which the Arizona Court of Appeals had overseen since Director Richard Stavneak get to work on the structure of the
January, comes to an end with no settlement reached. economic triggers and other facets of the deal.

Sept. 7: Janice Palmer, ASBA’s director of government Week of Oct. 19: The Ninth Floor presents the governor’s
relations, and Victor Riches, Ducey’s deputy chief of staff proposal to both sides. The proposal includes economic
for policy and budget, meet on Labor Day to discuss the triggers based on TPT and employment growth, and
possibility of reaching the settlement. For the next several resets base-level funding, the biggest sticking point in the
weeks, the Ninth Floor and the plaintiffs would continue these negotiations, at about 72 percent of the amount ordered by a
“conversations” while Ducey discussed the issues with Biggs trial court judge.
and Gowan.
Oct. 23: AASBO, AEA and ASBA get approval from their boards
Beginning of October: For the first time, representatives of for the deal. Work begins over the weekend on drafting the
both sides in the lawsuit meet face-to-face to try to negotiate a language that would go before the Legislature in a special
settlement. Several meetings later, the plaintiffs would concede session.
the need for economic triggers that would allow the Legislature
to manage the K-12 budget during fiscal crises.

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