Executive Viewpoint Dr. Mike Hernandez, AAEA Executive Director
A Promising Summer The 2021-2022 school year in Arkansas has ended for most districts. A former colleague used to say that schools are a wonderful place to work in the summer. I agreed with that because it was a time to reflect and plan for the following year. We have not had much summer in the past couple of years, but this one looks promising. You need to make sure that you get a chance to unplug and get away from the office. I am getting the opportunity to go with the Hot Springs Beta Club to Nashville, TN, for the National Convention. Hanging out with thousands of students from across the country may not sound like a getaway, but watching them compete in all types of events is fun. While I am there, my oldest daughter wants to go to the Def Leppard/Motley Crue Stadium Tour. You see there - great music never gets old. I hope I survive the heat! The work will be there when you get back, so please get some rest when you can. Special Session Even though we will take some time to relax, we need to be mindful of the discussion of a special session this summer. Several things are being discussed that could potentially make the call. The biggest driver for having a special session is the record level surplus for this fiscal year. It is currently projected to be $1.47 billion this year, ending June 30, 2022, and $914 million for the year ending June 30, 2023. Accelerating the implementations of tax cuts that were recently passed, support for small businesses and farmers, and a few other items are being discussed. Based on the Arkansas Department of Finance and Administration, these high growth rates in the economy will return to a more normal rate in the future. The question remains how quickly we might see an about face on revenues in our state. Usually, when you see an increase in revenue of a temporary nature in school districts, you look for one-time expenditure and avoid long-term debt obligations. Tax cuts are significant for everyone, but with the volatile nature of all things financial in our country, I hope our leaders will be thoughtful in any decisions. Districts have several needs that have come up during the pandemic. One glaring item is the increased cost of construction. All parties agree that the current square footage costs have drastically outpaced projections for districts that have partnership or self-funded projects. I know the state is looking at the data, and AAEA has worked with districts to gather the information that will lead to some financial support for districts facing a shortfall in their construction budgets. There are several other issues that members have voiced over the last several weeks concerning pre-k calendars, health insurance contributions, and classified salaries. If you have additional topics that may need to be considered, please let AAEA know. We hope to go into a special session with a solid plan and general agreement on doing what is best for everyone, including school districts.
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