School Finance: A Framework School Finance: A Framework, Attachment 1

Where does most of a school’s funding come from? A.Bonds B.Grants C.State aid D.fundraising Funding School Finance: A Framework, Attachment 1

C. state aid formula School Finance: A Framework, Attachment 1

So what drives state aid funding? A.Property taxes B.Attendance C.Tax rates D.Test scores Schools Funding School Finance: A Framework, Attachment 1

A. Attendance OR….. School Finance: A Framework, Attachment 1

Butts in the seat! School Finance: A Framework, Attachment 1

Can you name any other major funding sources for schools? School Finance: A Framework, Attachment 1

Classroom Site Fund Instructional Improvement Fund Vocational Educational State Fund Federal programs Bonds/Overrides Grants Did you guess any? School Finance: A Framework, Attachment 1

Classroom Site Fund and Instructional Improvement Fund CSF Prop 301 -FY2002 From state sales taxes Additional funds to formula funds 20% to be used for base salary 40% to be used for performance pay 40% to be used for others related to classroom expenditures such as classroom size reductions and teacher development. IIF Prop 202 -FY2002 Contributions by the gaming tribes to the Instructional Improvement Funds 50% to be used for classroom size reduction and teacher compensation 50% to be used for Dropout Prevention and development minimum reading skills for students by the end of third grade level School Finance: A Framework, Attachment 1

Where does Arizona rank in the nation in per pupil funding? A.10 th B.26 th C.49 th D.51 st School Finance: A Framework, Attachment 1

C. 49 th School Finance: A Framework, Attachment 1

The sources of the formula funding 1.State aid from the general funds 2.Local tax levies (Districts only) School Finance: A Framework, Attachment 1

What is the process for a district’s budget? School Finance: A Framework, Attachment 1

Timeline for a district’s budget process 1. Districts establish a budget for the following fiscal year. (typically have a budget committee) 2. Districts hold a public meeting to discuss the budget. 3. By July 15 of the fiscal year the district propose a budget to their governing board. 4. The governing board of a district approves the budget; this budget becomes an adopted budget. 5. The district submits the adopted budget to the Department of Education. 6. The adopted budget determines districts’ and charters’ expenditure authority for the fiscal year that starts July 1 st and ends June 30th. School Finance: A Framework, Attachment 1

The Equalization Concept School Finance: A Framework, Attachment 1

Components of the Equalization Formula Districts Base support level Transportation support level Soft capital Unrestricted capital outlay Charters Base support level Additional assistance School Finance: A Framework, Attachment 1

Components of the Equalization Formula Districts Base support level Transportation support level Soft capital Unrestricted capital outlay Charters Base support level Additional assistance School Finance: A Framework, Attachment 1

Base Level Support = per pupil spending Maintenance & Operations (M&O) School Finance: A Framework, Attachment 1

Base Support Level Student ADM weights + Add on weight for SPED/ELL students Base Level support School Finance: A Framework, Attachment 1

What was the Base Level Support amount for FY2011? A. $1, B. $3, C. $9, D. $15, School Finance: A Framework, Attachment 1

B. $3, School Finance: A Framework, Attachment 1

Components of the Equalization Formula Districts Base support level Transportation support level Soft capital Unrestricted capital outlay Charters Base support level Additional assistance School Finance: A Framework, Attachment 1

Transportation Support Level Components School Finance: A Framework, Attachment 1

Components of the Equalization Formula Districts Base support level Transportation support level Soft capital Unrestricted capital outlay Charters Base support level Additional assistance School Finance: A Framework, Attachment 1

Soft Capital Components School Finance: A Framework, Attachment 1

Components of the Equalization Formula Districts Base support level Transportation support level Soft capital Unrestricted capital outlay Charters Base support level Additional assistance School Finance: A Framework, Attachment 1

Unrestricted Capital School Finance: A Framework, Attachment 1

Basic State Aid Base level support + transportation support + soft capital + unrestricted capital -Local property taxes Equalization Formula School Finance: A Framework, Attachment 1

Charter Schools Formula True or False: Charter schools can levy taxes. School Finance: A Framework, Attachment 1

Charter Schools Formula FALSE! Charter schools can’t levy taxes Base Support Level + Additional Assistance School Finance: A Framework, Attachment 1

Can you name any other funds available to Districts but not to Charters? School Finance: A Framework, Attachment 1

Overrides Monies to construct schools Career Ladder program Teacher Compensation School Finance: A Framework, Attachment 1

FY2009 Per ADM Average Funding AverageLocalStateFederalTotal Statewide$3,816$4,404$1,069$9,289 Districts$4,162$4,149$1,113$9,424 Charters$521$6,830$648$7,999 Difference (district. vs. Charters) $3,641($2,681)$465$1,425 School Finance: A Framework, Attachment 1

Charters Vs. Districts Districts have what percentage of the students enrolled statewide? School Finance: A Framework, Attachment 1

91% School Finance: A Framework, Attachment 1

Charters Vs. Districts What percentage of special education students are enrolled in school districts? School Finance: A Framework, Attachment 1

90% School Finance: A Framework, Attachment 1

FY 2011 K-12 Funding What percentage of the state general funds is spent on K-12 education? School Finance: A Framework, Attachment 1

41% State general funds expended on K-12 Education (about $3.5 billion) School Finance: A Framework, Attachment 1

FY2011 K-12 Appropriations School Finance: A Framework, Attachment 1

Additionally: About $3 billion in local funds (includes Local taxes, donations and bonds). About $1.1 billion in federal funds. About $210 million in Federal Edu. Job Fund. About $ 240 million in Classroom Site Fund. About $38 million in Instructional Improvement Fund. About 11 million in state block grant for Vocational Education. School Finance: A Framework, Attachment 1

Can you think of any education issues that also affect funding? School Finance: A Framework, Attachment 1

State Budget Deficits Move-On When Ready Concept Changes in ADM calculations as base for Funding Arizona Online Instruction School Finance: A Framework, Attachment 1

Assessment Activity State aid ADM 49 th Budget process Equalization formula Base level support Transportation Soft and unrestricted capital Weighting Charter schools 41% School Finance: A Framework, Attachment 1