ASBA Legislative Update-- 163 Days and Counting
Legislatures extended breaks mean later than normal effective dates and delayed finality.
Legislature Guaranteed to Break Session Length Record This Year
While the Legislature wrapped up work on the FY2023 budget on May 10th, hopes of an expeditious end to the session were dashed when it promptly adjourned until June 12th, returning for two days before adjourning again until July 31st. That means on paper, the 1st regular session of the 56th Arizona Legislature will surpass 200 days, making it the longest on record. The previous record was set in 1988 at 173 days, and that included impeaching a governor. The “why” has a lot to do with politics around transportation taxes in Maricopa County and gubernatorial nominees. Not big education issues. But what it does mean is a delay in the effective date of bills. Bills don’t go into effect until 90 days after the Legislature adjourns for the year, meaning that we could be looking at effective dates in November.
Luckily, that will not impact the education finance formula, but it will impact everything else K-12 related that has been passed. You can see a list of those bills here.
Session Delays Will Push Back Routine Communication
ASBA members have come to expect session wrap-up webinars and end of session reports in the month of July. While we fully intend to provide that information, we want to be certain it won’t change after we tell you it’s final. We are currently in the process of deciding how best to get that to you. In the meantime, you can keep track of enacted legislation here, along with whatever is left that we are keeping an eye on. Stay tuned for how ASBA member districts can acccess summaries and other information in the next few days.
May Revenue Update Signals Possible Turbulence Ahead
The Joint Legislative Budget Committee (JLBC) released its regular revenue update today, which revealed that May was not a good month for state tax collections. According to the JLBC, state revenue collections were $183 million less than expected, with individual income tax accounting for $181 million of that shortfall. Analysts said that both “base economic conditions” (nerd-speak for a slightly slower economy) and the state’s individual income tax cuts enacted two years ago could be to blame. Revenue forecasts had anticipated a decrease due to tax cuts but the actual dollar impact may have been higher than projected.
The May results mean that we are heading into the end of FY2023 with a cumulative loss of $175 million for the year with one month to go. This does not spell disaster by any stretch, but because much of the FY2024 budget was based on a surplus of revenue this year, June’s numbers will also be important to watch.
Move On When Reading (MOWR) Rule Revisions
Due to Legislation passed during the 2022 Legislative session, it is a requirement that all school districts and charter holders submit a MOWR plan to the Arizona Department of Education. The State Board of Education is in the process of revising its MOWR rules to reflect that change. The rule package can be viewed here. the package is largely a restatement of the requirements of statute, however there are changes to the reporting structure of which districts should be aware. SBE is currently accepting comments on the rule via inbox@azsbe.gov. If your district has feedback for the board, we encourage you to provide it as it is helpful in understanding the impact of proposed changes.