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BILL # SB 1101 |
TITLE: schools; calculated opportunity index |
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SPONSOR: Carter |
STATUS: Senate Engrossed |
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PREPARED BY: Steve Schimpp and Adam Golden |
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The Senate Engrossed version of SB 1101 establishes a "calculated opportunity index" (COI) within the Basic State Aid (BSA) funding formula for public schools. The COI increases BSA funding to a school district or charter school if any of its individual schools has a pupil eligibility rate for the federal Free or Reduced-Price Lunch" (FRPL) program that exceeds the statewide average (currently 56%). Schools with the highest FRPL eligibility rates would have the highest COIs under the bill and therefore would receive proportionately more BSA funding under it. The bill requires a school district that is eligible for COI funding to reduce its desegregation expenditures pursuant to A.R.S. § 15-910K, if any, by an amount equal to 50% of its COI funding.
Estimated Impact
The bill would increase state General Fund costs for BSA by an estimated $36,228,400 in FY 2020 and $38,003,600 in FY 2021.
The attached tables show the estimated amount of COI funding that each individual school would have generated for its school district or charter school under the bill for FY 2019 if it had been in effect for that year. Estimates in the tables are based on the COI formula established by the bill and current FY 2019 data from the Arizona Department of Education (ADE) for Average Daily Membership (ADM), FRPL eligibility and BSA formula costs.
Summary (state-level) estimates appear on page 41 of the attached tables. They indicate that eligible school districts and charter schools collectively would have received an estimated $36,777,000 in additional BSA formula funding under the bill in FY 2019 if it had been in effect for that year. The state would have funded an estimated $34,536,100 of that total with the remaining $2,240,900 coming from local property taxes only in school districts that are not eligible to receive state aid under the BSA formula ("non-state aid" districts).
The COI would cost approximately 4.6% more annually in FY 2020 and FY 2021 due to "base level" increases required for those years for teacher pay raises and inflation under the BSA formula. This would increase the state share of formula costs for the bill to an estimated $36,228,400 in FY 2020 and $38,003,600 in FY 2021.
ADE does not have a fiscal impact estimate for the bill.
Local Government Impact
Property owners in non-state aid districts would pay an estimated $2,700,500 in additional K-12 "Qualifying Tax Rate" (QTR) taxes under the bill in FY 2020 to fund the new COI formula component.
Property owners in school districts that currently budget for desegregation expenditures pursuant to A.R.S. § 15-910K would pay an estimated $(6,946,000) less in secondary property taxes under the bill, since it would require school districts with desegregation expenditures to reduce them by an amount equal to 50% of their COI funding. School districts with desegregation programs would receive an estimated $13,891,200 in COI funding under the bill (see Table 1 below).
(Continued)
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Table 1 |
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Required Desegregation Expenditure Reductions Under SB 1101 (estimated) |
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School District |
Budgeted Desegregation Expenditures FY 2019 |
Estimated COI Funding |
Required Desegregation Reduction |
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Tucson Unified District |
63,711,000 |
1,445,300 |
722,700 |
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Phoenix Union High School District |
55,800,900 |
2,545,500 |
1,272,800 |
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Roosevelt Elementary District |
13,570,500 |
881,600 |
440,800 |
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Tempe School District |
12,178,200 |
570,300 |
285,200 |
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Phoenix Elementary District |
11,151,500 |
514,000 |
257,000 |
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Mesa Unified District |
8,774,100 |
1,804,600 |
902,300 |
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Scottsdale Unified District |
7,382,200 |
133,000 |
66,500 |
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Glendale Union High School District |
6,132,000 |
365,300 |
182,700 |
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Washington Elementary School District |
5,300,000 |
2,283,700 |
1,141,900 |
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Isaac Elementary District |
4,951,200 |
773,000 |
386,500 |
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Cartwright Elementary District |
4,628,100 |
1,545,900 |
773,000 |
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Amphitheater Unified District |
4,025,000 |
364,900 |
182,500 |
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Holbrook Unified District |
2,518,500 |
118,800 |
59,400 |
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Flagstaff Unified District |
2,241,300 |
124,000 |
62,000 |
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Wilson Elementary District |
1,867,000 |
100,400 |
50,200 |
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Buckeye Elementary District |
1,608,900 |
275,600 |
137,800 |
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Maricopa Unified School District |
1,291,000 |
39,500 |
19,800 |
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Agua Fria Union High School District |
999,000 |
5,800 |
2,900 |
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STATE TOTALS |
208,130,400 |
13,891,200 |
6,946,000 |
4/3/19