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

January 2010Chuck Essigs – Arizona Association of

School Business Officials

Changes to the Classroom Site Fund (Prop 301) Budget Impact for

FY 2011

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

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

Distribution of Prop 301 Sales Tax (Millions)

Fiscal Year TotalOther than Classroom Site Fund

Classroom Site Fund

FY 2008 $649.6 $281.8 $367.8

Classroom Site Fund (Endowment Earnings)

Fiscal Year Total

FY 2008 $107.5 Million

Actual Classroom Site Fund FY 2002-FY2009

Fiscal Year Amount (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

How Did it Work/What Changed?

•By March 30th 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”

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

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

FY2011 Computation

•FY2011 Estimate $___________•Minus FY2010 Shortfall $___________•Minus FY2009 Shortfall $166.6 million•Equals $___________

Divided by weighted count

Example of Impact/Only Example

•FY2011 - $230 per weighted count•FY2010 - <$20> Shortfall•FY2009 - <$128> Shortfall•FY2011 Amount = $82 per weighted student

Example

•FY2010 Estimate – $244•FY2011 Example – $82

• FY2011 33% of FY2010

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

Questions?