School finance in arizona chuck essigs aasbo
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School Finance in Arizona Chuck Essigs AASBO. Funding of Schools. 1900 - 1950 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

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School Finance in Arizona Chuck Essigs AASBO

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School Finance in ArizonaChuck EssigsAASBO


Funding of Schools

  • 1900 - 1950

  • 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


How is the Budget Limit Established?Revenue Control Limit (RCL)

1.Regular ADM of the District

a. Preschool Handicapped

b. K-8 Students

c. 9-12 Students

2.Special Program Add-ons

a. Certain Handicapped Students

b. Limited English Learners (ELL)

c. K-3 Students

d. All K students

3.Teacher Experience Index

4.Pupil Transportation Program


2008-09 Group A ConceptElementary and High School

Basic Wt. Group A Wt.Total*

Elem. 1.000.158 1.158

$3,332 $526 $3,858

1.1630.105 1.268

H.S. $3,875 $350 $4,225

Regular education - special services:

Specific learning disability Emotional disability

Mild mental retardation Remedial education

Speech/language impairment Homebound

Other health impairment Bilingual

Preschool/speech lang. delay Gifted

Preschool/moderate delay Career Exploration

*Includes 1.25% for “Teacher Compensation”


Small School District Funding Weights2008-09 School Year

Elementary High School

District Small Small

Size Isolated SmallIsolated Small

Over 600 $3,858 $3,858 $4,225 $4,225

500

400 increases up to

300

200

100$5,194 $4,560 $5,560 $5,194

*Isolated = no schools within 30 miles of another district or if road conditions and terrain make the driving slow or hazardous; 15 miles


Group B Add-On

CategoryWeightAmount

K 1.352 $4,505*

K-3 0.060 $200

English Learners 0.115 $383

Disabled StudentsRange from $10,502 to $25,711

Hearing Impaired, Multiple Disabilities, Physically Impaired, Moderate Mental Retardation, Severely Emotionally Disabled and Visual Impairment

* at 0.50 = $2,252


Group A Concept

Extra funding forExpenditures for

every student =special needs

students

  • No financial incentive to put student in

  • No financial incentive not to end services

  • Assumes fairly equal distribution of students


Group B Concept

Extra funding forExpenditures for

specific students =specific

students

  • Identification criteria clear

  • Parents follow programs


Capital Outlay Revenue Limit (CORL) Note: 64% transferred to M&O

Unweighted Student Count

times

Support Level

times

CORL growth factor

plus

High School Texts


Soft Capital

Unweighted Student Count

times

Support Level


2008-09 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

    * Same amount since 1998-99 for all areas


Additional AssistanceCharter Schools

  • Charter Schools / CORL, Soft Capital, Pupil Transportation, School Facilities Board (SFB)

  • Additional Assistance 2008-09

    K – 8$1,474.16

    9 – 12$1,718.10


District Base Level Add-ons

  • Teacher compensation

    • Increase Base Level by 1.25% in 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 5.5% increase to Base Level


Equalization Concept

School District Spending Limit(Equalization Base)

minus

Local Contribution

(QTR)

equals

State Aid

(Equalization Assistance)


“Property Rich”

$3,226.88 x 1,000 (weighted ADM)

$3,226,880 guaranteed

Local property taxes

$50,000,000/$100

(district’s taxable value)

x

$2.9244 QTR

equals$1,462,200

(45% of guaranteed amount)

State (& county)

$3,226,880 minus $1,462,200

equals$1,764,680

(55% of guaranteed amount)

“Property Poor”

$3,226.88 x 1,000 (weighted ADM)

$3,226,880 guaranteed

Local property taxes

$25,000,000/$100

(district’s taxable value)

x

$2.9244 QTR

equals$731,000

(23% of guaranteed amount)

State (& county)

$ 3,226,880 minus $731,100

equals$2,496,780

(77% of guaranteed amount)

Two Hypothetical Unified Districts


Some District Budget Categories . . .

  • are paid from local property taxes . . .

  • . . . causing issues with per-pupil spending and taxation


M&O Overrides

  • M&O Overrides

    • 10% of RCL

  • K-3 Overrides

    • 5% of K-8 RCL


Other Items Outside Equalization Base, FY 2008

  • Desegregation

  • Adjacent Ways

  • Excess Utilities

  • Transportation RCL

  • Small School Dist.

  • Dropout Prevention

  • Registered Warrants


Inflation Funding 1991-92 through 2000-01

  • Increases to Base Level

  • Increase less than inflation for 9 or 10 years

  • Inflation funding covered one-third of actual inflation


Prop. 301 / Implemented in 2001-02 School year

  • For first 5 years – 2%

  • For FY2006-07 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.


Inflation Impact – Post Prop. 301 (continued)

2001-022.22.0<0.2>

2002-032.42.0<0.4>

2003-041.72.00.3

2004-052.92.00.9

2005-062.2 3.2***1.0

2006-073.2 4.4****1.2

2007-083.2 2.98***** <0.22>

2008-092.72.0 <0.7>

* Percentage growth in the GNP price deflator

** Percentage increase in the base level funding factor as provided in A.R.S. 15-901

***Includes an additional 1.2% for retirement/health insurance

****Includes an additional 2.4% for retirement/health insurance and

increase salary for non-administrative personnel

*****Includes 0.98% for increased salary for non-admin. personnel

YearActual Rate * Funding Inc.** Variation


Education Week Rankings

Adequacy of Funding

  • Rank 49th out of 50

  • Arizona $7,112 vs. national average of $9.963


Education Week Rankings

Education Spending Per Pupil FY2006 (Operational)

RankStateAmount

1Vermont$15,139

2Wyoming$14,128

3New Jersey$13,238

Avg.U. S. $9,963

48Nevada$7,213

49Arizona$7,112

50Utah$5,964


American Legislative Exchange Council (ALEC)

Arizona (2005-06) (Operations)

  • Expenditure Per Pupil rank next to last

  • Pupil/Teacher Ratio = 21.3 vs. national average of 15.2

  • Pupil/Teacher Ratio rank next to highest (only Utah at 22.1 puts more kids in each class)


Move to National Average

  • Using ALEC data, Arizona is $2,956 below national average

  • 46% increase to move to average

  • Estimated cost is $3 billion

  • 2% inflation - $100 million

  • 30 years of extra 2% needed


Also Part of the Spending Per Pupil Discussion / Capital Spending

Arizona ranks near the top for:

  • student growth

  • capital expenditures per pupil

  • student/teacher ratio


Other Major Revenue Sources

2008-09

  • Classroom Site Fund – Prop. 301

    ($470 per student / $390 per weighted count)

  • Instructional Improvement Fund –

    Indian Gaming ($40 per student)


School District Governing Board Allocates Funds to

Regular, Special and Pupil Transportation Program from

Budget Limit

Budget Limit

Regular

Education

Special

Education

Pupil

Transportation

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


Budget Limit Increase

No

GrowthGrowthDecline

New students 2% 0 <3%>

Plus inc. amt./stu. + 2% + 2% + 2%

4% 2% <1%>

Hire new Salary Cuts staff + Increase salary increase


Salary and Benefits

85 – 90% of operating budget


Taxpayer

Parents

and

Community

Employees

More Services More Services

Taxes High Quality Higher Salaries

Governing Board

Budget


  • Not enough dollars to meet demands

    Formula / Legislature

  • Dollars not being spent effectively

    Budget Allocation / School District


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