 |
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
repeal; results-based funding; schools; appropriation
Purpose
Repeals the Results-Based Funding Fund and appropriates $68,600,000 in FY 2024 from the state General Fund (state GF) to the Early Childhood Development and Health Fund (ECDH Fund). Adds prekindergarten students to the grade levels for which ADE must distribute Early Literacy Program Fund (Early Literacy Fund) grants.
Background
Laws 2017, Chapter 304 establishes the Results-Based Funding Fund to award $225 per student count to schools that perform in the top 10 percent of all schools on the statewide assessment or, for schools in which at least 60 percent of students are eligible for the Free-and-Reduced-Priced Lunch Program (FRPL), that perform in the top 10 percent of schools meeting that threshold. Beginning in FY 2019, statute requires a letter grade of A for any school to qualify. However, the Legislature has suspended the A letter grade requirement each fiscal year and continue to allocate monies based on the statewide assessment. Since FY 2020, the Legislature has awarded the monies to schools performing in the top 13, rather than 10, percent of their respective categories and to schools that perform in the top 27 percent to 13 percent of schools that meet the 60 percent threshold (A.R.S. § 15-249.08; Laws 2018, Ch. 285; Laws 2019, Ch. 265; Laws 2020, Ch. 49; Laws 2021, Ch. 404; Laws 2022, Ch. 317).
Funded by specified tobacco product taxes, the ECDH Fund is administered by the Early Childhood Development and Health Board (First Things First). Through regional partnership councils, First Things First provides programs and services for children prior to kindergarten and their families to assist child development through education, parent and family support programs, child care, preschool and preventative health services. First Things First may also use up to 10 percent of program monies for statewide grants or programs (A.R.S. Title 8, Chapter 13; A.R.S. Title 42, Chapter 3, Article 9).
The Arizona Department of Education distributes Early Literacy Program Fund monies in a per-pupil amount based on available monies and the student count for kindergarten and grades one through three (K-3). A public school is eligible if at least 90 percent of students are eligible for FRPL and may use the monies for strategies and interventions to improve the reading proficiency of K-3 students (A.R.S. § 15-249.09).
S.B. 1231 appropriates $68,600,000 in FY 2024 from the state GF to the ECDH Fund.
Provisions
1. Repeals the Results-Based Funding Fund and distribution requirements.
2. Appropriates $68,600,000 in FY 2024 from the state GF to the ECDH Fund.
3. Directs ADE to distribute Early Literacy Fund grants to eligible schools for prekindergarten students.
4. Adds prekindergarten students to the grade levels for which the Early Literacy Program Fund is charged with improving reading skills, literacy and proficiency.
5. Adds, to the definition of eligible expenses for Early Literacy Fund grants, strategies and interventions designed to improve prekindergarten students' literacy.
6. Contains a statement of legislative intent.
7. Makes technical and conforming changes.
8. Becomes effective on the general effective date.
Prepared by Senate Research
February 6, 2023
LB/slp