1. Board work session – Saturday, January 21, 2017
Tuba City Unified School District Review of School District Revenue & Expenditure Budget
Board work session – Saturday, January 21, 2017

2. Outline School Finance Terminology, Funding Formulas
Factors Impacting Tuba City Budget
Review of Prior Year Expenditures, Future Needs
Estimated Budget Projections – FY18

3. School Budget History
In the early 1980’s, AZ Legislature refined its school finance system to provide equal dollars per pupil for school operations. This concept commonly referred to as the “equalization formula” allowed public school districts across the state to experience similar education dollars regardless of property values.

4. 1980’s Reform Reduced disparities in tax rates
Equalize per-pupil funding
Decrease reliance on property taxes
Limited property tax growth
Continue local prerogative of voter-approved budget overrides with limits
Distinguish between primary and secondary (voter-approved) taxes

5. Further Reform 1994 Students FIRST
Fair and Immediate Resources for Students Today
prior statutory formula for funding school facilities and equipment violated the Arizona Constitution
Law enacted in 1998
Created minimal adequacy standards
Tightly controls the capital funding
School Facilities Board (SFB)

6. School Budget Terminology
Chart of Accounts
Uniform, comprehensive, data collection, reporting
Uniform System of Financial Records (USFR)
Minimum level of internal controls that school districts must follow
Generally Accepted Accounting Principles (GAAP)
Governmental Accounting Standards Board (GASB)
Comprehensive Financial Report (CAFR)
Annual Financial Report (AFR)

7. School Budget Terminology
General Budget Limit
The General Budget Limit results from a number of formulas heavily dependent upon the number of students or Average Daily Membership (ADM), the district has during years’ first days.
Support Level Weight
The effect of Weighted Student Count, which allows a student to be worth more (for funding purposes), more than This is how students with special needs generate additional funding based on their needs.
Weighted Student Count
The Weighted Student Count takes into consideration the associated cost of educating certain classifications of student without utilizing dollars to do it. Weighted Student Counts is specified by ARS Group A and Group B

8. School Budget Terminology
Local Taxes
Property tax on property within the district provides a portion of M&O, Capital Outlay, All of Overrides, GO Bonds
State Equalization
State general fund revenues used to support education M&O, Capital Outlay, but not overrides & bonds
County Equalization
A countywide tax rate applied to offset the State Equalization
State and Federal Grants
State and Federal resources used to support supplemental programs
Federal Impact Aid
Federal funds paid directly to district in impacted areas (federal land) in lieu of property taxes.

9. School Budget Terminology
Budget Controlled Funds
Allocation based on formula (i.e., student count, need-based)
Cash Controlled Funds
Cash carried over from the prior year plus current year revenue

10. Funding Formula Maintenance & Operations (M&O) Base Support Level
Weighted Student Count
Group A
Group B
Base Level Amount
Teacher Experience Index (TEI)

11. Funding Formula Maintenance & Operations (M&O)
Transportation Revenue Control Limit
Route Miles
Approved daily route miles x 180 days
Eligible Students
State Support Level
Less than .5 miles
.5 to 1.0 mile
More than 1.0 mile

12. Funding Formula Maintenance & Operations (M&O)
Base Support Level (BSL)
+ Transportation Revenue Control Limit (TRCL)
= Revenue Control Limit (RCL)
x Override Authorizations (*if applicable)
+ Carry Forward, Tuition, Prop 123, DAA transfer
= General Budget Limit (GBL)

13. Funding Formula District Additional Assistance (DAA) Unweighted ADM
X CORL per Student
= CORL Allocation
Funding can be transferred into M&O budget

14. Funding Formula Impact Aid Programs include: Basic Support Payments
Children with Disabilities Payments
Construction Grants
Funding based on District application in prior year (January 31). Application is based on federally connected students.
Most recently, payments have equaled about 80-85% of allocation within the current year. Remaining is paid in later years.

15. Funding Formula Entitlement Grants
District receives federal grants based on demographics
ESEA Programs
Title I – Education for Disadvantaged
Title II – Teacher and Principal Professional Development
Title III – Limited English Proficiency
Title VII – Native American
JOM – Johnson O’Malley

16. Funding Formula Proposition 301 (Prop 301)
Statute requires distribution of funds
40% - Principal Site Fund
40% - Performance Pay
20% - Base Pay
Group A weighted ADM x Per Pupil
Limits on what Prop 301, Fund 013, can be used for class size reduction, teacher compensation, AIMS intervention, teacher development, dropout prevention

17. Funding Formula Instructional Improvement Fund (IIF)
Statute allows for xx
Up to 50% - Teacher Base Pay or Class Size Reduction
Remaining purposes include dropout prevention and instructional improvement programs
Group A weighted ADM x Per Pupil
Funding is not known until received, therefore we cannot spend until the funds are received (January/July)

18. Funding Formula Proposition 123
Proposition that resolved the longstanding lawsuit regarding per pupil funding.
Reset the per pupil funding in FY16 to $3,645
Provides for inflation increase each year (set by JLBC – CPI or 2% whichever is less)
Allocates $50M across the state based % of statewide enrollment (increases to $75M in )

19. Factors Impacting Tuba City Budget
Review FY16 AFR
Review FY17 Budget Worksheets
Review FY18 Budget Projections

20. FY16 AFR Annual Financial Report
Completed in October of each year (no later than October 15)
Report of actual expenditures
Board approved
Submitted to ADE
Accessible publically on ADE website and District website

21. FY17 Adopted Budget Adopted in July Based on projected enrollment
Will be revised by May 15, 2017
Board approved
Submitted to ADE
Accessible publically on ADE website and District website

22. FY18 Budget Proposal

23. Discussion, Future Topics