AMENDED

ARIZONA STATE SENATE

LYDIA CHEW

LEGISLATIVE RESEARCH INTERN

CAROLYN SPERONI

LEGISLATIVE RESEARCH ANALYST

FINANCE COMMITTEE

Telephone: (602) 926-3171

RESEARCH STAFF

TO:                  MEMBERS OF THE SENATE

DATE:            February 27, 2019

SUBJECT:      Strike everything amendment to S.B. 1472, relating to TPT; distribution; education; use tax

Purpose

Increases the fixed amount of Proposition 301 monies that is distributed to the Classroom Site Fund to $300,000,000. Adds fixed-amount distributions to universities' Technology and Research Initiative Fund and the community college districts' Workforce Development Accounts.

Background

Proposition 301, which levied an additional 0.6 percent sales tax, is now set to expire in 2041 (A.R.S. § 42-5010.01). The monies collected from the tax are distributed with annual allotments of: 1) $64,100,000 to the Classroom Site Fund; 2) 12 percent of remaining monies to the universities' Technology and Research Initiative Fund; 3) 3 percent of remaining monies to community college districts' Workforce Development Accounts; 4) the amount a community college owned, operated or chartered by a qualifying Indian tribe on an Indian reservation would receive if it were a community college district with a Workforce Development Account;
5) $86,280,500 to the Arizona Department of Education (ADE) for the increased cost of Basic State Aid due to added school days and 2,000 teacher salary increases; 6) $7,800,000 and $200,000 to ADE for school safety and for the Character Education Matching Grant Program, respectively; 7) no more than $7,000,000 to ADE for accountability purposes; 8) $1,500,000 to the Failing Schools Tutoring Fund; 9) $25,000,000 to the state General Fund for the cost of the income tax credit; and 10) the remaining monies to the Classroom Site Fund, where 40 percent is allocated for teacher compensation based on performance, 20 percent is allocated for increases in teacher base compensation and employee-related expenses and 40 percent is allocated for maintenance and operation purposes (A.R.S. § 42-5029.02).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Distributes a fixed amount of $300,000,000, instead of $64,100,000, each fiscal year to the Classroom Site Fund.

2. Distributes a fixed amount of $28,308,000 each fiscal year to the universities' Technology and Research Initiative Fund, in addition to the distribution of 12 percent of monies remaining after distribution to the Classroom Site Fund.

3. Distributes a fixed amount of $6,227,800 each fiscal year to the community college districts' Workforce Development Accounts, in addition to the distribution of 3 percent of monies remaining after distribution to the Classroom Site Fund and the universities' Technology and Research Initiative Fund.

4. Becomes effective on the general effective date.  

Amendments Adopted by the Appropriations Committee

1. Adopted the strike-everything amendment.

2. Distributes a fixed amount of $28,308,000 each fiscal year to the universities' Technology and Research Initiative Fund, in addition to the distribution of 12 percent of monies remaining after distribution to the Classroom Site Fund.

3. Distributes a fixed amount of $6,227,800 each fiscal year to the community college districts' Workforce Development Accounts, in addition to the distribution of 3 percent of monies remaining after distribution to the Classroom Site Fund and the universities' Technology and Research Initiative Fund.

Senate Action

FIN                 2/20/19      DP              6-3-1

APPROP         2/26/19      DPA/SE      9-0-0