ARIZONA STATE SENATE
Phoenix, Arizona
An emergency measure establishing the local level classroom site fund as a budgetary controlled account.
In 2000, the Legislature and Governor adopted legislation known as Education 2000, later approved by the general electorate as Proposition 301 which set forth a six-tenths of a percent sales tax increase for purposes relating to new accountability measures and additional funds for school districts, charter schools, community colleges and universities (Laws 2000, 44th Legislature, Fifth Special Session, Chapter 1). Proposition 301 established the classroom site fund for teacher salary increases and maintenance and operation purposes. Monies from the classroom site fund are allocated in the following order: (1) 40 percent for teacher compensation increases based on performance and employment related expenses, (2) 20 percent for teacher base salary increases and employment related expenses, and (3) 40 percent for maintenance and operations purposes.
The classroom site fund was established as a cash controlled account. S.B. 1232 makes clarifying changes between the state and local classroom site funds. The bill establishes the local level classroom site fund as a budgetary controlled account that allows school districts and charter schools to make payments based on budgeted amounts rather than based on cash received from the fund.
Currently, school districts and charter schools develop budgets based on the projected classroom site fund monies. However, when monies in the classroom site fund are less than estimated projections, school employees may not receive the full amount of anticipated budgeted pay increases. S.B. 1232 allows the local level classroom site fund to be administered based on budgeted amounts and allows any differences from the fund to be made up when monies are allocated. This legislation additionally allows school districts and charter schools to issue warrants with the county treasurer to cover differences with the budgeted costs. The warrants and interest are then charged against the local level classroom site fund.
There is no discernible fiscal impact to the state general fund associated with this bill.
1. Removes from the general budget limit for each school district for each fiscal year monies received in the current fiscal year from the classroom site fund and unexpended monies received from prior fiscal years from the classroom site fund.
2. Requires each school district and charter school to establish a local level classroom site fund to receive state level classroom site fund monies.
3. Requires the local level classroom site fund to be a budgetary controlled account.
4. Requires interest charges for any registered warrants for the local level classroom site fund to be charged against the local level fund. Interest earned on monies in the classroom site fund shall be added to the local level classroom site fund.
5. Stipulates that the State must not be required to make payments to a school district or charter school local level classroom site fund in addition to monies already transferred to the state level classroom site fund.
6. Establishes a classroom site fund budget limit for each school district that includes the sum of the following:
a) The classroom site fund allocation amount that is provided to each charter school and school district based on specified weighted per pupil counts.
b) The unexpended budget balance from the classroom site fund for the prior fiscal year.
c) The net interest earned on monies in the classroom site fund during the prior fiscal year.
7. Prohibits local property taxes from being levied for any deficit in the classroom site fund.
8. Adds the classroom site fund to the list of specified items included in the first of the two accounts when a school district has two accounts maintained by the county treasurer.
9. Allows the county treasurer to register warrants on the classroom site fund if a separate account is maintained for each fund. Warrants may be registered on the maintenance and operation, unrestricted capital outlay, soft capital allocation, adjacent ways accounts and the classroom site fund if the total cash balance of all of the accounts is insufficient to pay the warrants.
10. Makes technical, clarifying and conforming changes, including removing provisions relating to the manner in which Proposition 301 classroom site fund monies are distributed.
11. Contains a retroactivity clause of July 1, 2001 except for the section in the act that makes changes to the RCL and CORL specifications for determining the school district general budget limit.
12. Becomes effective on signature of the Governor.
Amendments
Adopted by the House of Representative
1. Modifies distribution requirements of the classroom site fund:
a) Clarifies the weighted student count for a school district that serves as the district of attendance for nonresident pupils must be increased to include nonresident pupils who attend school in the school district.
b) Contains a technical correction to remove provisions relating to the manner in which Proposition 301 classroom site fund monies are distributed.
2. Requires school districts and charter school to establish a local level classroom site fund to receive allocations from the state level classroom site fund. Provides for clarifying changes relating to local and state level classroom site fund references.
3. Removes the provision that establishes a classroom site fund budget limit for a common school district that is not within a high school district that includes stipulated amounts transferred to the attending school district.
4. Makes technical, clarifying and conforming changes.
Amendments
Adopted by the Free Conference Committee
· Adds an emergency clause to the act.
Senate Action House Action
ED 2/07/02 DP 7-1-0-0 ED 4/08/02 DPA 8-0-0-2-0
3rd Read 3/14/02 26-1-3-0 APPROP 4/16/02 DP 12-0-0-4-0
Final Read 5/15/02 26-0-4-0 3rd Read 4/25/02 51-3-6-0
Final Read 5/20/02 58-0-2-0
Signed by the Governor 5/23/02
Chapter 301
Prepared by Senate Staff
June 13, 2002