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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
REVISED
TPT; use tax; education; distribution
Purpose
Increases the fixed amount of Proposition 301 monies that is distributed to the Classroom Site Fund.
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 the community college districts' Workforce Development Accounts; 4) the amount a community college owned, operated or chartered by a qualifying Indian tribe on a 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 $364,100,000, instead of $64,100,000, each fiscal year to the Classroom Site Fund.
2. Becomes effective on the general effective date.
Revisions
· Changes language of purpose statement and provision regarding the Classroom Site Fund.
Prepared by Senate Research
February 20, 2019
CS/LC/kja