Arizona School Finance Understanding the System. DR. CHUCK ESSIGS Arizona Association of School Business Officials

Transcription

1 Arizona School Finance Understanding the System DR. CHUCK ESSIGS Arizona Association of School Business Officials

2 Funding of Schools Very little state assistance Very little state control Ability to fund educational programs based upon wealth of community 1950 Today Gradual increase in state assistance Gradual increase in state control Higher level of equity between school districts

3 How is the Budget Limit Established? Revenue Control Limit (RCL) 1. Regular ADM of the District a. Preschool Disabled b. K-8 Students c Students 2. Special Program Add-ons a. Certain Disabled Students b. Limited English Learners (ELL) c. K-3 Students 3. Teacher Experience Index 4. Pupil Transportation Program

4 Group A Concept Elementary and High School Basic Wt. Group A Wt. Total* Elem $3, $ $3,830 H.S $3, $ $4,194 Regular education - special services: Specific learning disability Mild mental retardation Speech/language impairment Other health impairment Preschool/speech lang. delay Preschool/moderate delay Emotional disability Remedial education Homebound Bilingual Gifted Career Exploration *Includes 1.25% for Teacher Compensation

5 Small School District/Charter Funding Weights School Year Elementary High School District Small Small Size Isolated Small Isolated Small Over 600 $3,830 $3,830 $4,194 $4, increases up to $5,158 $4,528 $5,521 $5, % +18% +31% +23% *Isolated = no schools within 30 miles of another district or if road conditions and terrain make the driving slow or hazardous; 15 miles

6 Group B Add-On Category Weight Amount K $2236* K $ 198 K-3 Reading $ 132 English Learners $ 380 Disabled Students Range from $10,426 to $25,525 Hearing Impaired, Multiple Disabilities, Physically Impaired, Moderate Mental Retardation, Severely Emotionally Disabled, and Visual Impairment *Old Funding for Full Day K

7 Group A Concept Extra funding for every student = Expenditures for special needs students No financial incentive to put student in No financial incentive not to end services Assumes fairly equal distribution of students

8 Group B Concept Extra funding for specific students = Expenditures for specific students Identification criteria clear Parents follow programs

9 Capital Outlay Revenue Limit (CORL) Unweighted Student Count times Support Level times CORL growth factor plus High School Texts

10 Soft Capital Unweighted Student Count times Support Level

11 CORL and Soft Capital Amounts CORL K-8 = $225.76* } CORL 9-12 = $267.94* CORL textbooks 9-12 = $69.88* Soft Capital = $225.00* (Cut by $158.1 million) * Same amount since (Cut by $80.8 million)

12 Additional Assistance Charter Schools Charter Schools / CORL, Soft Capital, Pupil Transportation, School Facilities Board (SFB) Additional Assistance K 8 $1, } 9 12 $1, (Cut by $15.9 million)

13 Charter vs. District Equalization Funding Formula District Schools (930,507 students) Charter Schools (118,847 students) Base Support Level $4,430 $4,546 Transportation $ 258 N/A Capital Outlay Revenue Limit (CORL) $ 266 N/A Soft Capital $ 228 N/A Additional Assistance $ 2 $1,619 Total $5,183 $6,164 All Funding (including Federal, Bonds, Overrides, and Other) $9,412 $7,834 Source: Joint Legislative Budget Committee (JLBC)

14 District Base Level Add-ons Teacher compensation Increase Base Level by 1.25% if SBE approves performance evaluation system i.e. certification Teacher experience index 2.25% increase to BSL for each year of experience above average Career ladder 28 districts get additional 4.0% increase to Base Level and no new teachers with 4 year phase out (Ends with School Year)

15 Equalization Concept School District Spending Limit (Equalization Base) minus Local Contribution (QTR) equals State Aid (Equalization Assistance)

16 Two Hypothetical Unified Districts Property Rich $3, x 1,000 (weighted ADM) $3,226,880 guaranteed Local property taxes $50,000,000/$100 (district s taxable value) x $3.91 QTR equals $1,955,000 (61% of guaranteed amount) State (& county) $3,226,880 minus $1,370,000 equals $1,271,880 (39% of guaranteed amount) Property Poor $3, x 1,000 (weighted ADM) $3,226,880 guaranteed Local property taxes $25,000,000/$100 (district s taxable value) x $3.91 QTR equals $977,500 (31% of guaranteed amount) State (& county) $ 3,226,880 minus $977,500 equals $2,249,380 (69% of guaranteed amount)

17 Some District Budget Categories... are paid from local property taxes..... causing issues with per-pupil spending and taxation

18 M&O Overrides M&O Overrides 10% of RCL 15% of RCL Special Program Override 5% of RCL Total limited to 15% (Less than 50% of districts)

19 Other Items Outside Equalization Base, FY 2013 Desegregation Adjacent Ways Transportation RCL Small School Districts Dropout Prevention Registered Warrants

20 Other Major Revenue Sources Classroom Site Fund Prop 301* ($227 per weighted count) Instructional Improvement Fund Indian Gaming ($35 per student) *Low of $120 in FY2011 and FY2012/High of $401 in FY2008 $310 for FY2014

21 Prop. 301 / Implemented in School year For first 5 years 2% Increase per year For FY and each year thereafter, the Legislature is required to increase the Base Level or other RCL components by the lesser of 2% or the price deflator. Legislature for FY2013 only increased transportation formula and additional assistance for charter schools.

22 Inflation Adjustment to Base Level Year Inflation Increase FY % 0 FY % 0 FY % 0 FY % 0

23 Arizona School Spending Current spending per pupil (FY 2010) - $7,848 Arizona ranked 48 th with only Idaho and Utah spending less Arizona was $2,767 below U.S. average of $10,615 or 73.9% of U.S. average

24 U. S. Census Bureau* Rankings Education Spending Per Pupil FY2010 (Operational) Rank State Amount 1 New York $18,667 2 New Jersey $16,941 3 Alaska $15,783 U.S. Average $10, Arizona $7,848/73.9% 49 Idaho $7, Utah $6,064 *Public Education Finances 2010, issued June 2012

25 In AZ Above These States Arkansas Georgia Idaho* Indiana Kentucky Louisiana Maine Mississippi Missouri New Hampshire New Mexico North Carolina North Dakota Oklahoma South Carolina South Dakota Tennessee Utah* Virginia West Virginia *States AZ was above in

26 Change in Ranking AZ Ranked 29th above 21 other states (89.7% of U.S. Average) AZ Ranked 48 th above 2 other states (73.9% of U.S. Average) To move back to 89.7% of U.S. Average Increase expenditures to $9,521 ( ) Increase of $1,673 per pupil

27 Arizona School Revenue Arizona at $9,059 per pupil (FY 2010) Arizona was $3,247 below U.S. average of $12,306 or 73.6% of U.S. average

28 Looking at School Funding in Arizona Arizona U.S. Rank/% of U.S. Federal Revenue $1639 $ st / 106.8% Local Revenue $4164 $ nd / 76.8% State Funding $3257 $ th / 60.8% Total $9059 $12, th / 73.6%

29 Legislative Issues Capital Funding Cuts to Soft Capital and CORL FY 2009 $ 21,000,000 FY 2010 $144,000,000 FY 2011 $165,120,700 FY 2012 $251,985,500 FY 2013 $238,985,600 Total $821,091,800

30 District Ability to Respond to Capital Funding Bond Capacity One-Third Limit on Capital Outlay Overrides Reduced Local AV

31 School District Governing Board Allocates Funds to Regular, Special and Pupil Transportation Program from Budget Limit Budget Limit Regular Education Special Education Special Ed. includes: A. Programs for the handicapped B. Gifted education C. Programs for LEP students D. Remedial education E. Vocational and technical education F. Career education Pupil Transportation

32 Financial Management Salary and Benefits 85-90% of Operating Budget

33 Questions??