Issue link: https://digital.copcomm.com/i/252703
AEA Advocate x Spring 2014 31 AT THE CAPITOL cuts, but instead it lowers the bar in terms of financial support for public education and at the same time raises the expectations on the performance of our students and schools." The governor's budget also includes new funding for a performance-based funding plan that could potentially increase funding inadequacies for Arizona's public schools. In addition, the plan provides funding for the implementation of a new assessment for the Arizona College and Career Ready Standards, but no additional money towards curriculum, district resources, or professional development for teachers on the new, higher standards. "Adding new money to measure the performance of our schools, while at the same time making a permanent cut of nearly $240 million in the education budget is setting up our students, teachers, and schools for failure," says Morrill. "It's as if the state were putting more money into making a better test and means of grading that test, but then not providing any pencils or desks for students when they show up on testing day." "Our students and schools suffered from massive cuts to education funding, leading to increased class sizes, school closures, and program cuts to arts, music, and sports. Arizona needs a fully funded education budget before the state imposes new demands on our students, teachers, and schools," says Morrill. "We believe any education funding plan must provide our schools and teachers with the support and resources they need to provide a quality public education to every student, regardless of class, race, or ability." 2 pensions exceed 100 percent funding, rather than refunding to employers (hence taxpayers) all of the excess funds (by lowering contributions), a portion of the overfunded liabilities could be set aside." Below are main points covered by the report, which can be viewed on the Arizona Retirement Security Coalition website. • Arizona's pension funds are relatively financially healthy. As Arizona State Treasurer Doug Ducey has noted, Arizona is "fortunate that our pensions are in far better shape than many other states." • Arizona state pension plan members already share the cost of financial market downturns, reducing the risk for taxpayers. Much of the criticism of defined-benefit pensions across the country relates to concerns that underperforming financial markets – similar to those of the 2000s – could lead to future unfunded liabilities that taxpayers must pay down. • Arizona's state pension plans now follow best practices for public pension plans that will help ensure their financial sustainability in the future. • The additional pension benefits earned by current Arizona public employees each year now cost employers (hence taxpayers) less than 2 percent of salary, a very low amount that will be difficult for any new pension plan to beat. • Arizona's pensions are modest and too low to offset the large amount by which public sector salaries trail those of comparable private employees. Public Worker Retirement Impacts Defined-benefit pension dollars don't simply sit in a $5 billion or $10 billion bank account gathering dust. Those funds are invested and spent all over the state of Arizona, sending positive ripples through the economy daily. A study by the National Institute on Retirement Security – "Pensionomics 2012: Measuring the Economic Impact of DB Pension Expenditures" – details the impact these dollars had on the Arizona economy. Defined-benefit pension expenditures supported: • 33,447 jobs that paid more than $1.5 billion in wages to Arizona residents • $4.5 billion in total economic output • $650.7 million in federal, state, and local taxes Defined-benefit pensions are good for Arizona, good for investors, financial sector businesses and job creators, and good for the more than 6 million residents who call our state home. 2 Governor's Budget, cont. from page 7 Spring.14advo.indd 31 1/28/14 5:11 PM