Arizona Education Association

Fall 2013

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AT THE CAPITOL Arizona Education Budget Summary, cont. from page 6 districts and from 10% to 20% for unified districts. These new indebtedness limits also apply to bonds that are currently in place (those previously approved by voters). Budget Overrides •Requires the Arizona Department of Education to report to JLBC and OSPB by November 30 of each year the amount budgeted for school district overrides by district and type of override for the current fiscal year. District Additional Assistance •Combines the soft capital and CORL funding formulas into a new per pupil amount called "district additional assistance." [References to soft capital and CORL are removed in state statute.] – Establishes in statute what the per pupil costs should be for this formula – without any of the current cuts in place. • Preschool with disabilities: $450.76/ student • K-8 schools: under 100 students = $544.58/student; 100-600 students = $389.25/student; over 600 students = $450.76/student •High schools (9-12): under 100 students = $601.24/student; 100-600 students = $405.59/student; over 600 students = $492.94/student; for textbook allowance, student count multiplied by $69.68. – For session law (meaning for fiscal year 2013-2014 only), the computed amount will be reduced by $239 million which reflects the current reduction in place. This means that school districts will have next school year exactly what they have received this school year. The AEA was successful in removing language in the education budget bill as introduced that would have "wiped clean" any reference to the prior year cuts to these formulas and set the low per-pupil level permanently in statute. The $239 million that school districts are "owed" would have been lost in perpetuity. •Requires districts to transfer any budget capacity and cash remaining in soft capital at the end of fiscal year 2013 (June 30, 2013) to its M&O fund or its unrestricted capital outlay fund. Fall.13advo.indd 32 Creation of a Performance Incentive Fund •Appropriates $2.4 million for a statewide Performance Incentive Fund. •Requires the Arizona Department of Education to distribute monies to school districts and charter holders based on achievement and improvement on the assigned achievement profile beginning in fiscal year 2014-2015. – The performance funding amounts must be budgeted in separate subsections of the M&O and capital outlay sections of the budget. The unexpended budget balance is allowed to be carried forward to the following fiscal years. – Limits eligibility to school districts and charter holders that have been assigned an achievement profile developed in accordance with the research-based methodology outlined in statue. The AEA worked with Governor Brewer's office and legislators to delay implementation of this issue until the 2014-2015 school year. AEA is prepared to continue our collaborative effort to define this program so that it supports high standards for students but is fair to teachers, staff, and schools. School Facilities •Eliminates the current building renewal formula and replaces it with a $17 million statewide building renewal grant program. – The building renewal formula has not been funded since fiscal year 2008-2009. The current grant program is only $3 million statewide, so this is a $14 million increase. •Provides new school construction money for Thatcher and Benson for schools already approved by the School Facilities Board. No other new school construction money is appropriated. 32 Fall 2013 x AEA Advocate 8/7/13 2:35 PM

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