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 - PowerPoint PPT PresentationTRANSCRIPT
School Finance in ArizonaSchool Finance in Arizona
Chuck EssigsChuck EssigsAASBOAASBO
Funding of Schools
1900 - 1950 Very little state assistance Very little state control Ability to fund educational programs
based upon wealth of community1950 – Today
Gradual increase in state assistanceGradual increase in state controlHigher level of equity between school districts
How is the Budget Limit Established?Revenue Control Limit (RCL)1. Regular ADM of the District
a. Preschool Handicappedb. K-8 Studentsc. 9-12 Students
2. Special Program Add-onsa. Certain Handicapped Studentsb. Limited English Learners (ELL)c. K-3 Studentsd. All K students
3. Teacher Experience Index4. Pupil Transportation Program
2008-09 Group A Concept2008-09 Group A ConceptElementary and High SchoolElementary and High School Basic Wt. Basic Wt. Group A Wt.Group A Wt. Total*Total*Elem. 1.00Elem. 1.00 0.1580.158 1.158 1.158 $3,332 $526 $3,858$3,332 $526 $3,858
1.1631.163 0.1050.105 1.268 1.268H.S. $3,875 $350 $4,225 H.S. $3,875 $350 $4,225
Regular education - special servicesRegular education - special services::Specific learning disabilitySpecific learning disability Emotional disability Emotional disabilityMild mental retardationMild mental retardation Remedial education Remedial educationSpeech/language impairmentSpeech/language impairment Homebound HomeboundOther health impairment Other health impairment Bilingual BilingualPreschool/speech lang. delayPreschool/speech lang. delay Gifted GiftedPreschool/moderate delayPreschool/moderate delay Career Exploration Career Exploration
*Includes 1.25% for “Teacher Compensation”*Includes 1.25% for “Teacher Compensation”
Small School District Funding WeightsSmall School District Funding Weights2008-09 School Year2008-09 School Year
Elementary High SchoolElementary High SchoolDistrict Small SmallDistrict Small SmallSize Size Isolated SmallIsolated Small Isolated SmallIsolated Small
Over 600 $3,858 $3,858 $4,225 Over 600 $3,858 $3,858 $4,225 $4,225$4,225
500 500 400400 increases up to increases up to300300200200100100 $5,194$5,194 $4,560 $4,560 $5,560 $5,560
$5,194$5,194
**Isolated = no schools within 30 miles of another district or if Isolated = no schools within 30 miles of another district or if road conditions and terrain make the driving slow or road conditions and terrain make the driving slow or hazardous; 15 mileshazardous; 15 miles
Group B Add-OnGroup B Add-On
CategoryCategory WeightWeight Amount Amount KK 1.3521.352 $4,505* $4,505*K-3 K-3 0.0600.060 $200 $200English Learners English Learners 0.1150.115
$383$383Disabled StudentsDisabled Students Range from $10,502 Range from $10,502
to to $25,711 $25,711
Hearing Impaired, Multiple Disabilities, Physically Hearing Impaired, Multiple Disabilities, Physically Impaired, Moderate Mental Retardation, Severely Impaired, Moderate Mental Retardation, Severely Emotionally Disabled and Visual ImpairmentEmotionally Disabled and Visual Impairment
* at 0.50 = $2,252* at 0.50 = $2,252
Group A ConceptGroup A Concept
Extra funding forExtra funding for Expenditures Expenditures forfor
every student =every student = special needs special needs
studentsstudents
No financial incentive to put student inNo financial incentive to put student in No financial incentive not to end No financial incentive not to end
servicesservices Assumes fairly equal distribution of Assumes fairly equal distribution of
studentsstudents
Group B ConceptGroup B Concept
Extra funding forExtra funding for Expenditures forExpenditures for
specific students =specific students = specificspecific
studentsstudents
Identification criteria clearIdentification criteria clear Parents follow programsParents follow programs
Capital Outlay Revenue Limit Capital Outlay Revenue Limit (CORL) (CORL) Note: 64% transferred to M&ONote: 64% transferred to M&O
Unweighted Student Unweighted Student CountCount
times times
Support LevelSupport Level
times times
CORL growth factorCORL growth factor
plusplus
High School TextsHigh School Texts
Soft CapitalSoft Capital
Unweighted Student CountUnweighted Student Count
times times
Support LevelSupport Level
2008-09 CORL and Soft 2008-09 CORL and Soft Capital Amounts*Capital Amounts*
CORL K-8 = $225.76CORL K-8 = $225.76 CORL 9-12 = $267.94CORL 9-12 = $267.94 CORL textbooks 9-12 = $69.88CORL textbooks 9-12 = $69.88 Soft Capital = $225.00Soft Capital = $225.00
* Same amount since 1998-99 for all * Same amount since 1998-99 for all areasareas
Additional AssistanceAdditional AssistanceCharter SchoolsCharter Schools
Charter Schools / CORL, Soft Capital, Charter Schools / CORL, Soft Capital, Pupil Transportation, School Facilities Pupil Transportation, School Facilities Board (SFB)Board (SFB)
Additional Assistance 2008-09Additional Assistance 2008-09K – 8K – 8 $1,474.16$1,474.169 – 129 – 12 $1,718.10$1,718.10
District Base Level Add-onsDistrict Base Level Add-ons
Teacher compensationTeacher compensation– Increase Base Level by 1.25% in SBE Increase Base Level by 1.25% in SBE
approves “performance evaluation approves “performance evaluation system” i.e. certificationsystem” i.e. certification
Teacher experience indexTeacher experience index– 2.25% increase to BSL for each year 2.25% increase to BSL for each year
of experience above averageof experience above average Career ladderCareer ladder
– 28 districts get additional 5.5% 28 districts get additional 5.5% increase to Base Levelincrease to Base Level
Equalization ConceptEqualization Concept
School District School District Spending LimitSpending Limit
(Equalization Base)(Equalization Base)
minusminus
Local ContributionLocal Contribution(QTR)(QTR)
equalsequals
State AidState Aid(Equalization Assistance)(Equalization Assistance)
Two Hypothetical Unified Two Hypothetical Unified DistrictsDistricts
“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 $1,462,200equals $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 $731,100equals $2,496,780(77% of guaranteed amount)
Some District Budget Categories . Some District Budget Categories . . .. .
are paid from local are paid from local property taxes . . .property taxes . . .
. . . causing issues with per-. . . causing issues with per-pupil spending and taxationpupil spending and taxation
M&O OverridesM&O Overrides
M&O OverridesM&O Overrides– 10% of RCL10% of RCL
K-3 OverridesK-3 Overrides– 5% of K-8 RCL5% of K-8 RCL
Other Items Other Items Outside Equalization Base, FY Outside Equalization Base, FY 20082008
DesegregationAdjacent WaysExcess UtilitiesTransportation RCLSmall School Dist.Dropout PreventionRegistered Warrants
Inflation Funding Inflation Funding 1991-92 through 2000-011991-92 through 2000-01
Increases to Base LevelIncreases to Base Level Increase less than inflation for 9 or Increase less than inflation for 9 or
10 years10 years Inflation funding covered one-third Inflation funding covered one-third
of actual inflationof actual inflation
Prop. 301 / Implemented in Prop. 301 / Implemented in 2001-02 2001-02
School yearSchool year
For first 5 years – 2% For FY2006-07 and each year For FY2006-07 and each year
thereafter, the Legislature is thereafter, the Legislature is required to increase the Base required to increase the Base Level or other RCL components by Level or other RCL components by the lesser of 2% or the price the lesser of 2% or the price deflator.deflator.
Inflation Impact – Post Prop. Inflation Impact – Post Prop. 301 301 (continued)(continued)
Year Actual Rate * Funding Inc.** Variation
2001-02 2.2 2.0 <0.2>2002-03 2.4 2.0 <0.4>2003-04 1.7 2.0 0.32004-05 2.9 2.0 0.92005-06 2.2 3.2*** 1.02006-07 3.2 4.4**** 1.22007-08 3.2 2.98***** <0.22>2008-09 2.7 2.0 <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
Education Week RankingsEducation Week Rankings
Adequacy of FundingAdequacy of Funding
Rank Rank 49th out of 49th out of
5050 Arizona $7,112 vs. national average Arizona $7,112 vs. national average
of $9.963of $9.963
Education Week RankingsEducation Week Rankings
Education Spending Per Pupil FY2006 Education Spending Per Pupil FY2006 (Operational)(Operational)
RankRank StateState AmountAmount
11 VermontVermont $15,139$15,139
22 WyomingWyoming $14,128$14,128
33 New JerseyNew Jersey $13,238$13,238
Avg.Avg. U. S. U. S. $9,963$9,963
4848 NevadaNevada $7,213$7,213
4949 ArizonaArizona $7,112$7,112
5050 UtahUtah $5,964$5,964
American Legislative American Legislative Exchange Council (ALEC)Exchange Council (ALEC)
Arizona (2005-06) (Operations)Arizona (2005-06) (Operations) Expenditure Per Pupil rank next to Expenditure Per Pupil rank next to
lastlast Pupil/Teacher Ratio = 21.3 vs. Pupil/Teacher Ratio = 21.3 vs.
national average of 15.2national average of 15.2 Pupil/Teacher Ratio rank next to Pupil/Teacher Ratio rank next to
highest (only Utah at 22.1 puts highest (only Utah at 22.1 puts more kids in each class)more kids in each class)
Move to National AverageMove to National Average
Using ALEC data, Arizona is $2,956 Using ALEC data, Arizona is $2,956 below national average below national average
46% increase to move to average46% increase to move to average Estimated cost is $3 billionEstimated cost is $3 billion 2% inflation - $100 million2% inflation - $100 million 30 years of extra 2% needed30 years of extra 2% needed
Also Part of the Spending Also Part of the Spending Per Pupil Discussion / Capital Per Pupil Discussion / Capital SpendingSpending
Arizona ranks near the top for: Arizona ranks near the top for: student growthstudent growth capital expenditures per pupilcapital expenditures per pupil student/teacher ratiostudent/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)
Budget Limit
School District Governing Board Allocates Funds to Regular, Special and Pupil Transportation Program fromBudget Limit
Pupil Transportation
Special Ed. includes:A. Programs for the handicappedB. Gifted educationC. Programs for LEP studentsD. Remedial educationE. Vocational and technical educationF. Career education
Special Education
Regular Education
Budget Limit Increase
No
Growth Growth Decline
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
Governing Board
Employees
More Services More Services Taxes High Quality Higher Salaries
Parentsand
CommunityTaxpayer
Budget
Not enough dollars to meet Not enough dollars to meet demandsdemands
Formula / LegislatureFormula / Legislature
Dollars not being spent effectivelyDollars not being spent effectively
Budget Allocation / School DistrictBudget Allocation / School District