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2010 Legislative Summary Please unbuckle your seatbelts and exit to the right. The 2010 Legislature roller coaster ride is over. “Given the economic circumstances and issues we faced from day one of the legislative session, public education and educators fared remarkably well in the end,” said UEA Executive Director Mark Mickelsen. “I am especially pleased that teachers in the Jordan School District received a lifeline that may help them avert painful layoffs this spring.” Many legislators and others attributed the outcomes for public education on the hundreds of e-mails, letters and personal contacts received from teachers and parents. Especially helpful and successful were the personal contacts with legislators made during UEA’s six Educator Day on the Hill activities. More than 100 educators participated this year. The session was marked by tough battles over state employee retirement benefits, association leave rules, and a nearly $1 billion budget shortfall that threatened to compound Utah’s already tenuous public education funding situation. “We understand that growing the economy is the No. 1 issue for all of us and…long-term sustained growth requires education,” remarked Gov. Gary Herbert in concluding comments to legislators at the close of the session. “I hope you’re hearing the accolades and the…appreciation from people in the education world. I’ve received handwritten notes from the UEA…and others that have said ‘thank you’ for making tough choices but doing it appropriately (for education).” UEA President Kim Campbell said, “the goal expressed by the governor, legislative leadership, and the Democratic minority was to hold public education to last year’s funding levels. In this tough economic climate, although there were cuts and growth wasn’t funded, they came very close to reaching their goal in the overall budget. The fact that public education received ongoing money will help avoid a disastrous funding cliff in next year’s budget. We thank our legislators and Governor Herbert for their hard work and support of public education.” “If I could have changed one thing about this legislative session, it would be more focus on long-term, sustainable public education funding,” noted Campbell. Here are a few highlights from the 2010 Legislative Session: Budget— The Governor and majority party legislative leaders worked to trim a proposed $21 million cut to public education to about a $9 million reduction from last year’s budget. However, there is no new funding to educate an estimated 11,000 new students expected next year. The net result is a cut of about 3 percent, far less than reductions faced by many other departments and agencies. The public education cuts will come largely from funds for new school buildings and a 50 percent cut to teacher-directed supply money, with additional reductions to be determined by local school boards. At the last minute, lawmakers found money to help pay for new school library books. A last-minute attempt to insert charter school funding changes and eliminate association leave pay (see below) failed. The WPU will remain at $2,577 despite no funding for the additional 11,000 students. School districts must absorb those costs in other areas. A major change in the education budget proposal is a shift from one-time to ongoing money. During the downturn in the economy, one-time rainy day and federal stimulus money was used to fill budget shortfalls. In the new FY2011 budget, lawmakers and the governor agreed to replace most of the one-time money with ongoing funds. “The change from one-time to ongoing funding is a huge win for public education,” said UEA Government Relations Director Kory Holdaway. “Without this change we would have faced a major funding cliff in future years.” Retirement— Two major bills dealing with the Utah Retirement Systems passed during the 2010 General Legislative Session. SB43 (third substitute): Post-retirement Employment Amendments and SB63 (third substitute): New Public Employees’ Tier II Contributory Retirement Act passed the Legislature on March 1 and are awaiting the Governor’s signature. While the UEA still believes the state would have been better served by allowing a year to study these issues and develop alternative solutions, these bills are much improved from their original form. The bills were improved, in large part, because of the hundreds of letters, e-mails and personal contacts with legislators. The UEA Legislative team extends its thanks to everyone who helped in sharing concerns with legislators, especially members of the newly-formed retirement coalition (UEA, Utah School Employees Association, Utah Public Employees’ Association, and Fraternal Order of Police), 4,000 of whom gathered on the steps of the Capitol February 6 to protest cuts to public employee retirement benefits. Contacts with legislators also helped stop two additional bills that would negatively impact retirement benefits for current employees. SB42 would have extended the years of service required for retirement and SB94 would have eliminated the 1.5 percent employer 401(k) contribution state employees currently receive. For those working in education, here’s what SB43 and SB63 will do: Current Employees: All retirement benefits, including years-of-service requirements, three-year highest salary averaging and the 2 percent multiplier for each year of service, remain just as they are now for all employees hired prior to July 1, 2011. Current Retirees: Neither bill affects pension payout, COLA increases or any other aspect of current retiree benefits. If you have retired from the URS and returned to work in an entity participating in the URS, the new law removes the requirement that an employer contribute to an employee 401(k). After July 1, 2010, employers may continue to contribute to the rehired employee’s 401(k), but only up to the “normal cost,” which will be 11.87 percent, about 2 percent less than the current contribution rate. Retirees Who Return to Employment: SB43 applies to anyone who retires from the Utah Retirement Systems after July 1, 2010, and returns to work with any entity participating in the URS. It requires a retired employee to wait one full year before returning to employment with a state agency. A teacher who retired would have two options upon being rehired:
New Employees: SB63 applies to public employees hired after July 1, 2011. Upon hiring, new employees will elect one of two retirement benefit options:
Both plans would have a four-year vesting period, meaning the employee must work four years to get any benefit at all. HB4: Current School Year Supplemental Minimum School Program Budget (Supported by UEA, Passed) HB246: Retirement Benefits for Charter School Employees (Supported by UEA, Passed) HB268: Public School Innovations (Opposed by UEA, Failed) HB295: Expanded Use of School District Property Tax Revenue and SB16: Utah Performance Assessment System for Students Amendments (Supported by UEA, Passed) SB77 (first substitute): School District Leave Policies (Opposed by UEA, Failed) SB147: Education Related Parent Organizations (Opposed by UEA, Failed) SB150: Reading Requirements for Student Advancement (Supported by UEA, Passed) SB275: Removing Signature from Initiative and Referendum Petition (Opposed by UEA, Passed) |
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