 |
ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
classroom site fund; distribution
Purpose
Modifies and establishes new revenue distributions from the Classroom Site Fund (CSF).
Background
Proposition 301 was approved by voters in November 2000 and established a 0.6 percent transaction privilege tax (TPT) and use tax that was set to expire in mid-2021. Laws 2018, Chapter 74 extended this 0.6 percent TPT and use tax beginning July 1, 2021, and ending June 30, 2041, with the same distribution of revenues as Proposition 301, except the $64,100,000 distributed for school facilities bond debt was instead appropriated to the CSF (A.R.S. § 42-5029.02).
The CSF provides funding to public schools from K-12 endowment earnings and Proposition 301 and its subsequent extension. Each school district or charter school distributes the CSF as follows: 1) 40 percent for teacher compensation increases based on performance and employment-related expenses; 2) 20 percent for teacher base salary increases and employment-related expenses; and 3) 40 percent for maintenance and operation purposes. All monies distributed are intended for use at the school site (A.R.S. § 15-977).
Currently, CSF monies designated for maintenance and operation purposes must be spent as follows: 1) class size reduction; 2) teacher compensation increases; 3) assessment intervention programs; 4) teacher development; 5) dropout prevention programs; and 6) teacher liability insurance premiums (A.R.S. § 15-977).
|
CSF Revenues |
FY 2020 |
FY 2021 estimated |
|
Proposition 301 Sales Tax |
$433,067,600 |
$501,063,500 |
|
Endowment Earnings |
$101,413,400 |
$107,132,600 |
|
Prior Year Carryforward |
$57,529,200 |
$1,523,700 |
|
Total Estimated Revenues |
$592,010,200 |
$609,719,800 |
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Removes the requirements for school districts and charter schools to allocate the following amounts from the CSF:
a) 40 percent for teacher compensation increases, based on performance and employment‑related expenses;
b) 40 percent for maintenance and operation purposes; and
c) 20 percent for teacher base salary increases and employment-related expenses.
2. Removes requirements that CSF monies be spent for maintenance and operation purposes, including teacher liability insurance premiums.
3. Allows CSF monies to be spent for:
a) teacher compensation, including a base pay and performance pay component, instead of teacher compensation increases;
b) educational interventions;
c) voluntary full-day kindergarten;
d) student support services;
e) tutoring;
f) character education;
g) school safety;
h) career and technical education;
i) school improvement; and
j) transportation.
4. Defines student support services as any expenditure in the student support services function as defined in the uniform system of financial records.
5. Makes technical and conforming changes.
6. Becomes effective on the general effective date.
Prepared by Senate Research
January 14, 2021
JO/gs