arizona school funding 101 2010 aasbo vendor/buyer conference gerrick monroe february 18, 2010

Arizona School Arizona School Funding 101Funding 101

2010 AASBO Vendor/Buyer 2010 AASBO Vendor/Buyer ConferenceConference

Gerrick MonroeGerrick MonroeFebruary 18, 2010February 18, 2010

EssentialEssential QuestionsQuestions

Where does the funding to operate Where does the funding to operate Arizona public schools come from?Arizona public schools come from?

What types of funds are used by Arizona What types of funds are used by Arizona school districts?school districts?

What factors determine the budget for What factors determine the budget for Arizona school districts?Arizona school districts?

What are the various terms that vendors What are the various terms that vendors may hear when working with Arizona may hear when working with Arizona school districts?school districts?

Overview of Arizona School Overview of Arizona School FinanceFinance

Districts receive funding from:Districts receive funding from: State AidState Aid

Income TaxIncome Tax Sales TaxSales Tax

Property TaxProperty Tax Primary and SecondaryPrimary and Secondary

Sales Tax (.5%)Sales Tax (.5%) Proposition 301Proposition 301

Other SourcesOther Sources Federal and State GrantsFederal and State Grants


Primary Tax RatePrimary Tax Rate The amount levied to the local taxpayers The amount levied to the local taxpayers

of a School District to provide a portion of a School District to provide a portion of the revenue needed to fund of the revenue needed to fund operational budgetsoperational budgets

Secondary Tax RateSecondary Tax Rate The amount levied to the local taxpayers The amount levied to the local taxpayers

of a School District to provide the of a School District to provide the revenue to fund Overrides and Debt revenue to fund Overrides and Debt Service from Bond Sales.Service from Bond Sales.


Primary Tax Rate helps fund:Primary Tax Rate helps fund: Maintenance and OperationsMaintenance and Operations Soft CapitalSoft Capital Unrestricted CapitalUnrestricted Capital Adjacent WaysAdjacent Ways DesegregationDesegregation


Secondary Tax Rate funds:Secondary Tax Rate funds: Maintenance and Operations Maintenance and Operations

OverrideOverride Special Programs OverrideSpecial Programs Override Capital OverrideCapital Override BondsBonds

Maintenance and Operations (M&0)Maintenance and Operations (M&0) Maintenance and Operations budget limitMaintenance and Operations budget limit

Revenue Control Limit (RCL)Revenue Control Limit (RCL) Based on data from previous yearBased on data from previous year RCL calculation includes:RCL calculation includes:

Regular ADM (Average Daily Membership)Regular ADM (Average Daily Membership) Preschool Handicapped, K-8, 9-12Preschool Handicapped, K-8, 9-12

Special Program ADM Add-onsSpecial Program ADM Add-ons Special Needs, ELL, and K-3 studentsSpecial Needs, ELL, and K-3 students

Career Ladder – 5.5% increaseCareer Ladder – 5.5% increase Teacher Experience IndexTeacher Experience Index Pupil TransportationPupil Transportation



Maintenance and Operations BudgetMaintenance and Operations Budget District M&O budget are primarily used District M&O budget are primarily used

for employee compensation (80-90%)for employee compensation (80-90%) Sample district (Mesa Public Schools):Sample district (Mesa Public Schools):

MPS Salaries – 72%MPS Salaries – 72% MPS Benefits – 18%MPS Benefits – 18% MPS Supplies – 4%MPS Supplies – 4% MPS Other – 6%MPS Other – 6%

UtilitiesUtilities Property InsuranceProperty Insurance Purchased ServicesPurchased Services

Unrestricted Capital AllocationUnrestricted Capital Allocation Capital Outlay Revenue Limit (CORL)Capital Outlay Revenue Limit (CORL) Average Daily Membership (ADM)Average Daily Membership (ADM)

K-8 -- $226 per studentK-8 -- $226 per student 9-12 -- $268 per student9-12 -- $268 per student

CORL growth factor (5% growth min.)CORL growth factor (5% growth min.) High School Textbook Allocation High School Textbook Allocation

$70 per high school student$70 per high school student Soft Capital AllocationSoft Capital Allocation

ADM x $225ADM x $225



Soft CapitalSoft Capital (Short-term Capital Items) (Short-term Capital Items)- Textbooks- Textbooks - Library Resources- Library Resources

- Technology- Technology - Instructional Aids- Instructional Aids

- School Buses- School Buses - Furniture and - Furniture and EquipmentEquipment

Unrestricted CapitalUnrestricted Capital- Vehicles - Vehicles - Land Improvement - Land Improvement

- Any soft capital item - Building - Any soft capital item - Building ImprovementImprovement

Average Daily MembershipAverage Daily Membership

ADM directly affects these funding ADM directly affects these funding levels:levels:

Maintenance and OperationsMaintenance and Operations Unrestricted and Soft CapitalUnrestricted and Soft Capital OverridesOverrides Career Ladder FundingCareer Ladder Funding Classroom Site Fund (Prop. 301)Classroom Site Fund (Prop. 301) Instructional Improvement Fund (Prop. Instructional Improvement Fund (Prop.

202)202)

Voter Approved FundingVoter Approved Funding M&O Override FundingM&O Override Funding

Increase M&O budget by up to 15%Increase M&O budget by up to 15% Special Program Override FundingSpecial Program Override Funding

Increase M&O budget by up to 5%Increase M&O budget by up to 5% Capital Override FundingCapital Override Funding

Increase Capital Outlay available for district use up Increase Capital Outlay available for district use up to 10% of RCLto 10% of RCL

Bond FundingBond Funding Limit tied to bonding capacity of the school district Limit tied to bonding capacity of the school district

(A.V.)(A.V.) Funds Funds specifiedspecified capital improvements to schools capital improvements to schools

and groundsand grounds Recent legislation allows purchase of Furniture, Recent legislation allows purchase of Furniture,

Fixtures, and Equipment (FF&E) with bond fundsFixtures, and Equipment (FF&E) with bond funds

Arizona School Finance TermsArizona School Finance Terms

Maintenance and Operations FundMaintenance and Operations Fund Also Known As: M&O, Fund 1, 001Also Known As: M&O, Fund 1, 001

Unrestricted Capital Fund (Fund 610)Unrestricted Capital Fund (Fund 610) Soft Capital Fund (Fund 625)Soft Capital Fund (Fund 625) Classroom Site Fund – Proposition 301Classroom Site Fund – Proposition 301

Revenue from State Sales Tax and State Land Revenue from State Sales Tax and State Land TrustTrust

Instructional Improvement Fund – Instructional Improvement Fund – Proposition 202Proposition 202 Revenue from Indian GamingRevenue from Indian Gaming


E-rate fundingE-rate funding Priority One – Telephone, Internet, PagerPriority One – Telephone, Internet, Pager Priority Two – Internal ConnectionsPriority Two – Internal Connections

Adjacent Ways FundingAdjacent Ways Funding Funds projects to bring utilities to a school Funds projects to bring utilities to a school

sitesite Funds projects or expenses to make Funds projects or expenses to make

necessary road and sidewalk necessary road and sidewalk enhancements adjacent to school property enhancements adjacent to school property

Funds projects that provide for the safe Funds projects that provide for the safe ingress and egress of school busses and ingress and egress of school busses and emergency vehicles on school propertyemergency vehicles on school property


Federal GrantsFederal Grants Title 1 – Schools that serve a higher number Title 1 – Schools that serve a higher number

of low income studentsof low income students Title 6B – Funds dedicated to support Title 6B – Funds dedicated to support

program designed for special needs studentsprogram designed for special needs students American Recovery and Reinvestment American Recovery and Reinvestment

Act 2009Act 2009 Stimulus dollars (Two years)Stimulus dollars (Two years) ARRA funding essentially doubled district ARRA funding essentially doubled district

funding for Title One and Title 6Bfunding for Title One and Title 6B

QUESTIONS?QUESTIONS?

Arizona School Funding

arizona school funding 101 2010 aasbo vendor/buyer conference gerrick monroe february 18, 2010

Documents

arizona school funding

arizona school districts

arizona public schools

capital improvements

operations m0maintenance

operations fundalso

secondarysales tax

funding levels