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

School Finance:A Framework

School Finance: A Framework, Attachment 1

Where does most of a school’s funding come from? A.BondsB.GrantsC.State aidD.fundraising

Funding


C. state aid formula


So what drives state aid funding?A.Property taxesB.AttendanceC.Tax ratesD.Test scores

Schools Funding


A. Attendance

OR…..School Finance: A Framework, Attachment

1

Butts in the seat!


Can you name any other major funding sources for schools?


• 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


Where does Arizona rank in the nation in per pupil funding?A.10th

B.26th

C.49th

D.51st


C. 49th


The sources of the formula funding

1.State aid from the general funds 2.Local tax levies (Districts only)


What is the process for a district’s budget?


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 1st and ends June 30th.


The Equalization Concept


Components of the Equalization Formula

Districts• Base support level• Transportation support

level• Soft capital• Unrestricted capital outlay

Charters• Base support level• Additional assistance



Districts

• Base support level• Transportation support

level• Soft capital• Unrestricted capital outlay



Base Level Support = per pupil spending

Maintenance & Operations (M&O)


Base Support Level Student ADM weights+ Add on weight for SPED/ELL students Base Level support


What was the Base Level Support amount for FY2011?A. $1,927.44B. $3,267.72C. $9,221.68D. $15,785.12


B. $3,267.72



Districts• Base support level

• Transportation support level

• Soft capital• Unrestricted capital outlay



Transportation Support Level Components




level

• Soft capital• Unrestricted capital outlay



Soft Capital Components




level• Soft capital

• Unrestricted capital outlay



Unrestricted Capital


Basic State Aid

Base level support+ transportation support+ soft capital+ unrestricted capital-Local property taxes Equalization Formula


Charter Schools Formula

True or False:Charter schools can levy taxes.


Charter Schools Formula

FALSE! Charter schools can’t levy taxes

Base Support Level + Additional Assistance


Can you name any other funds available to Districts but not to

Charters?


Overrides Monies to construct schoolsCareer Ladder programTeacher Compensation


FY2009 Per ADM Average FundingAverage Local State Federal Total

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


Charters Vs. Districts

Districts have what percentage of the studentsenrolled statewide?


91%


Charters Vs. Districts

What percentage of special education students are enrolled in school districts?


90%


FY 2011 K-12 Funding

What percentage of the state general funds is spent on K-12 education?


41%

State general funds expended on K-12 Education (about $3.5 billion)


FY2011 K-12 Appropriations


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.


Can you think of any education issues that also affect funding?


• State Budget Deficits• Move-On When Ready Concept • Changes in ADM calculations as base for

Funding• Arizona Online Instruction


Assessment Activity• State aid• ADM• 49th

• Budget process• Equalization formula• Base level support• Transportation• Soft and unrestricted capital

• Weighting• Charter schools• 41%


Documents

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