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Dear ASU Alumni Advocate: As you know, Arizona is facing a significant budget deficit and our lawmakers are currently working on proposed budgets for Fiscal Year 2008 and Fiscal Year 2009. Among their critical considerations is an issue that could have a stark impact upon Arizona State University. Because of your known commitment to quality education in our state, we feel that your voice will be helpful and persuasive as the budget negotiations go forward. It is vital for our state to sustain a commitment to adequate K-12 education. Arizona has the second highest rate of growth in the country, one that necessitates more than 30 new K-12 schools. Rather than putting a moratorium on new school construction, which is what some lawmakers are considering, debt financing would allow the state to continue to build new schools and plan for the future. It will reduce or eliminate cuts to education in the future, free up approximately $400 million for next year’s budget and return cash to the state’s General Fund. Most important, it will allow Arizona students to continue receiving a high-quality education in settings that accommodate bigger populations. Arizona is a relatively low-debt state in comparison to other fast-growing states and is one of the few states in the country that does not use debt financing for its schools. That is why we view this is a good time to use debt financing as a long-term investment that will benefit generations to come. Beyond our interest in this issue because of ASU’s commitment to strengthening K-12 education, this has important budget implications for ASU. As you know, we are reliant on the state for 30 percent of our total operating revenues. Funding for ASU is the single largest line item on the state budget – making us susceptible to reduced funding as a way to relieve the growing deficit. If the legislature does not approve school bonds this fiscal year, we will most likely be faced with hundreds of millions of dollars in impact. Increases in tuition and/or increased private gifts to the university are, frankly, not a feasible strategy to bridge this large a gap. Your voice is urgently needed in this debate. We are asking you to contact your state legislator or any friends you have in the legislature and encourage them to support debt financing for new K-12 schools. Please click here to contact your state legislator and urge them to use debt financing in this year’s budget. Debt financing is the only way to solve the pressing need for new schools and ensure our state stays on track for future education planning. It is an investment in the future of our children, the future of many of the students who will go on to attend ASU, and ultimately the future of our state. It will also help ASU and the other state universities weather the state’s budget crisis. I encourage you to read the attached report (PDF) from the Office of the University Economist, Dr. Dennis Hoffman, titled “Public Investment Using Debt Financing and the Effect on Economic Activity: Perspectives for the State of Arizona.” It provides excellent background on the issue of debt financing and why it makes sense for Arizona. Again, please visit http://www.sundeviladvocates.org/ to contact your state legislator and encourage them to use debt financing in the 2008 budget. Budget negotiations are moving quickly, so your immediate action on this issue is needed and greatly appreciated. P.S.S. We need your help in building the Sun Devil Advocacy Network. Please encourage your friends, family and colleagues to become a member at http://capwiz.com/azsu/mlm/signup/ P.S.S.S If you have a different email address you would prefer us to use, please send us an email at advoteam@sundeviladvocates.org with your new email address and we will promptly make the change. If you do not want to receive further issues of this electronic newsletter, please send us an email to advoteam@sundeviladvocates.org with the word UNSUBSCRIBE in the subject line and the message field.
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