Commissioner’s Update – January 24, 2013

Commissioner's Update - Jan. 24, 2013
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A quick budget update: Jim Rier and I presented an Education Finance 101 lesson to the new Appropriations Committee last week and are following that up with a similar presentation today to the Education Committee. As you all know very well, education funding is complex, so before we delve into policy, it helps if we’re all on the same page in terms of understanding how the system we have works. As part of today’s discussion, Jim will also touch on the proposal in the Governor’s budget to move a portion (about 14 percent) of teacher retirement costs into EPS and then add funds to GPA to cover about half that cost.

There continues to be a lot of misunderstanding about this piece. The state will continue to pay the vast majority of retirement-related costs. And most districts will end up paying less through this method, than if the State had reduced GPA by a similar amount. I encourage you to read more about the retirement piece. Full discussion of the biennial budget isn’t expected to begin until after the Appropriations Committee completes its work on the supplemental budget. We’re getting information prepared for when that happens, and we will share with you as soon as we can.

— Stephen Bowen



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