1. January 2010 Chuck Essigs – Arizona Association of School Business Officials Changes to the Classroom Site Fund (Prop 301) Budget Impact for FY 2011

2. Classroom Site Fund Passed in November 2000 General Election Part of Prop 301 0.6 cent Increase to State Sales Tax Added Growth in K-12 State Trust Land Earnings Distributed per Weighted Student Count to District and Charter Schools

3. Revenue Distribution – Prop 301 School Facilities Debt Service Universities, Community Colleges, Tribal Assistance Additional 5 School Days Character Education Grants, Accountability, Measures, Fading Schools Tutoring Fund Income Tax Credit Remainder Goes to Classroom Site Fund

4. Distribution of Prop 301 Sales Tax (Millions) Fiscal YearTotal Other than Classroom Site Fund Classroom Site Fund FY 2008$649.6$281.8$367.8

5. Classroom Site Fund (Endowment Earnings) Fiscal YearTotal FY 2008$107.5 Million

6. Actual Classroom Site Fund FY 2002-FY2009 Fiscal YearAmount (Millions) FY2002$205.4 FY2003$298.4 FY2004$265.3 FY2005$296.1 FY2006$379.8 FY2007$447.8 FY2008$502.1 FY2009$332.7

7. How Did it Work/What Changed? By March 30 th Joint Legislative Budget Committee shall determine a per pupil amount for the budget year…………… What Changed - New Language “Adjusted for any prior year carry forward or shortfall”

8. Budget Limit – Classroom Site Fund Allocation from ARS 15-979 (per weighted student) Unexpended budget balance from prior year The net interest earned during the prior year

9. Shortfall – FY2009 Original Estimate $499.3 million Actual$332.7 million FY2009 Shortfall$166.6 million* Estimate of $128 per weighted count FY 2010 Shortfall???(Original Est. $244 per student) *$24 million from endowment earnings collected in FY2009, but distributed in FY2010

10. FY2011 Computation FY2011 Estimate$___________ Minus FY2010 Shortfall$___________ Minus FY2009 Shortfall$166.6 million Equals$___________ Divided by weighted count

11. Example of Impact/Only Example FY2011 - $230 per weighted count FY2010 - Shortfall FY2009 - Shortfall FY2011 Amount = $82 per weighted student

12. Example FY2010 Estimate – $244 FY2011 Example – $82 FY2011 33% of FY2010

13. Over Life of Classroom Site Fund FY2002 through FY2011 Total dollars same if spending to limit or adjusting for actual revenue Inform your staff and community

14. Questions?