Apportionment Schedule Yousef Awwad-Director of School Finance

Background Apportionment dates are determined by statutes (ARS 15-973-B) 10 apportionments were made Historically Apportionment made on the 15th of each month. No apportionment in August or in November Each apportionment amounted to 8.33% or 1/12th of the total amount for the fiscal year. For April and May, each apportionment amounted to 16.67% or 1/6th of the total amount for the fiscal year.

2008-2009 Schedule Payment Date Pmt # Percentage Notes 07/15 1 8.33% 09/15 2 10/15 3 12/15 4 1/15 5 2/15 6 3/15 7 4/15 8 16.67% 5/15 9 $ 600 million rolled over to FY2009-2010 6/15 10 $ 300 million rolled over to FY2009-2010

Basis of changes to the apportionment schedule Changes to ARS 15-973-B were made according to HB2011 (Third special session of 2009). Changes effective on Nov. 24 and affects FY2009- 2010 and years thereafter The Change affects districts and charter holders.

What is the Change? 12 apportionments will be made Apportionment date will be on the first business day of each month for the first 11 apportionments. No apportionment in July. Two apportionments in the Month of June, the 12th apportionment will be at the last business day of June.

What is the Change? First Apportionment will be made in August of each fiscal year Each apportionment will amount to 8.33% or 1/12th of the total amount for the fiscal year starting FY2010-2011

Impact on FY2009-2010 Transition started on the first business day of December for districts and the first business day of November for charters July, September , and October apportionments, each was calculated at 8.33% of the total amount. Starting December each apportionment for districts was calculated at 9.38% to transition the new payment schedule for the remaining 8 apportionments.

2009-2010 Schedule Payment Date Pmt # Percentage Notes 7/15/2009 1 8.33% Roll over from previous year paid on July 1st ($600 million) 8/15/2009 0.00% 9/15/2009 2 ARRA monies were paid in lieu of State Payment 10/15/2009 3 11/2/2009 May 2009 Rollover Deferred payment from May 2009 12/1/2009 5 9.38% 1/4/2010 6 2/1/2010 7 3/1/2010 8 $144 million of soft capital reduction and one semester early grad reversals . 4/1/2010 9 5/3/2010 10 6/1/2010 11 Roll Over to next fiscal year ($602 million) 6/30/2010 12

FY2010-2011 Schedule Payment Date Pmt # Percentage Notes 08/2/2010 1 8.33% Roll over from FY2009-2010 paid either in July or Aug 09/1/2010 2 10/1/2010 3 11/1/2010 4 12/1/2010 5 1/3/2011 6 2/1/2011 7 3/1/2011 8 4/1/2011 9 5/2/2011 10 6/1/2011 11 6/30/2011 12

Other payment issues SB1002, 4th special session. 2009 laws addressed early grad and soft capital reductions Soft Capital reductions of $144 million will be made in March, 2010 One Semester Early Graduation will be reversed in either March or April Payment

Questions ?????