Arizona School Finance The Equalization Formula

How many parents? Does treating your kids fairly mean: Spending equally on them? Spending equally on them? Buying them identical products? Buying them identical products? Spending equal time with each child? Spending equal time with each child? Participating in identical activities? Participating in identical activities?

Equalization – My Definition Equalization is the process of providing equal funding for all students in Arizona based on the student’s individual needs. Equalization is the process of providing equal funding for all students in Arizona based on the student’s individual needs.

Student Weights Size of the District/Isolation Status Size of the District/Isolation Status Grade Level Grade Level Special Education Special Education

Teacher Experience Index Teacher Experience Index (TEI) Teacher Experience Index (TEI) –Calculates the average experience of the certified teachers at a District –District avg. is compared to State avg. –If District avg. exceeds State avg. they are awarded additional funding, if not then there is no penalty.

Transportation Funding Approved Daily Route Miles Approved Daily Route Miles Miles traveled per student Miles traveled per student Field Trips, Extended Year Handicap Field Trips, Extended Year Handicap

Equalization Base The amount yielded by the per pupil formula. The amount yielded by the per pupil formula. The base for determining how much funding will be made available to a District. The base for determining how much funding will be made available to a District.

Equalization Assistance The amount of State funding generated by the per pupil formula. The amount of State funding generated by the per pupil formula. Equalization Assistance equals the Equalization Base minus the Qualifying Levy. Equalization Assistance equals the Equalization Base minus the Qualifying Levy.

Average Daily Membership The number of students credited to the District in the per pupil formula. The number of students credited to the District in the per pupil formula. Based on Enrollment not Attendance. Based on Enrollment not Attendance. Currently the first 100 days but will change to 4 specific dates. Currently the first 100 days but will change to 4 specific dates.

Here come the numbers…. Total Weighted Student Count Total Weighted Student Count The Base Support Level (BSL) The Base Support Level (BSL) TSL/TRCL TSL/TRCL Revenue Control Limit Revenue Control Limit CORL/SCA CORL/SCA Equalization Assistance Equalization Assistance

Total Weighted Student Count Group A – Multiply ADM by the appropriate grade level weight. Group A – Multiply ADM by the appropriate grade level weight. Group B – Multiply ADM for students with needs by the weight for that need. Group B – Multiply ADM for students with needs by the weight for that need. Total = Group A + Group B Total = Group A + Group B

The Base Support Level A Base Level is established for all Districts and may be increased only under certain circumstances. A Base Level is established for all Districts and may be increased only under certain circumstances. BSL = Total Weighted Student Count * Base Level * TEI + Adjustments BSL = Total Weighted Student Count * Base Level * TEI + Adjustments

TSL vs. TRCL The Transportation Support Level (TSL) is primarily based on Approved Daily Route Miles and Eligible Students. The Transportation Support Level (TSL) is primarily based on Approved Daily Route Miles and Eligible Students. The Transportation Revenue Control Limit (TRCL) is based on the change in the TSL. The Transportation Revenue Control Limit (TRCL) is based on the change in the TSL.

Revenue Control Limit Equals Base Support Level + TRCL Equals Base Support Level + TRCL Only difference from District Support Level is TRCL vs. TSL Only difference from District Support Level is TRCL vs. TSL

CORL and SCA Capital Outlay Revenue Limit (CORL) is calculated based on student count and grade. Additional CORL for HS textbooks. Capital Outlay Revenue Limit (CORL) is calculated based on student count and grade. Additional CORL for HS textbooks. Soft Capital Allocation (SCA) is calculated based on student count and grade. Soft Capital Allocation (SCA) is calculated based on student count and grade.

Equalization Base Equalization Base is the sum of (lesser of) RCL/DSL, CORL, SCA, Type 03 Tuition.

Equalization Assistance Equalization Assistance equals the Equalization Base minus the Qualifying Levy. Equalization Assistance equals the Equalization Base minus the Qualifying Levy. Qualifying Levy equals Assessed Valuation (Primary + SRP) divided by 100 and multiplied by the Qualifying Tax Rate. Qualifying Levy equals Assessed Valuation (Primary + SRP) divided by 100 and multiplied by the Qualifying Tax Rate.

Questions?