Arizona Education Association

Spring 2016

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SPRING 2016 | ADVOCATE 7 at the capitol Background What is the lawsuit Cave Creek v. DeWit about? The lawsuit is about the state's failure to adjust all compo- nents of the K-12 Base Level for inflation pursuant to A.R.S. §15-901.01, which was enacted in Proposition 301. The law- suit, filed in October of 2010, did not address the other cuts to education. The lawsuit did not, nor did it have the poten- tial to address, whether Arizona's funding of K-12 schools is adequate, equitable or overall sufficient. What is the Base Level? The term "Base Level" in A.R.S. § 15-901.01 refers to the base per-pupil funding amount used in the K-12 school funding formula. The Base Level is then multiplied by factors to gener- ate additional funding based on student grade level, special education designations and teacher experience, among others. What is the Base Level (pre-settlement) for this current school year? The Arizona Legislature set the 2015-16 (FY16) Base Level at $3426.74.1 What is the inflation funding required by Proposition 301? A.R.S. § 15-901.01, approved by voters in 2000, requires the legislature to increase the Base Level and other components of the funding formula either 2% or the actual change in the GDP price deflator, whichever is less. Additionally, the provi- sion also prohibits the Base Level from ever being reduced below the fiscal year 2001-2002 amount, ($2,687 per pupil). This inflation funding requirement is separate from the increased sales tax revenue, also approved in Prop. 301, for the Classroom Site fund and does not expire in 2021 as the sales tax does. Special Election on May 17 Education Funding Settlement This May voters will have the opportunity to take the first step in restoring funds to our schools by providing: • A permanent annual increase to school funding — $240 Million this year alone! • An additional $50 million a year for 5 years and $75 million a year for the following 5 years • Settlement to 5-year lawsuit so we can stop paying lawyers and start paying educators • Guaranteed annual inflation adjustment to school funding • Absolutely no policy strings attached

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