1. Arizona School Finance Module II: Outside the RCL

2. Recap of Module I Total Weighted Student Count Total Weighted Student Count Base Support Level Base Support Level TSL/TRCL TSL/TRCL Revenue Control Limit Revenue Control Limit CORL/SCA CORL/SCA Equalization Assistance Equalization Assistance

3. Arizona School Finance Episode II: Outside the RCL The State Equalization Formula created equality by lowering all Districts to the same inadequate funding levels. This limited the ability to show support for your school district by funding it to the level necessary to provide a high quality education. It is for that reason that it was necessary to go Outside the Revenue Control Limit!

5. Budget Capacity The amount of money available to spend regardless of the cash balance.

6. Budget Balance Carry Forward The amount of unspent Budget Capacity that exist in a fund at the end of the fiscal year that can be rolled forward into the next year.

7. Budget Submissions July 5 th – Proposed Budget July 5 th – Proposed Budget July 15 th – Adopted Budget July 15 th – Adopted Budget December 15 th – Budget Revision December 15 th – Budget Revision May 15 th – Final Budget Revision May 15 th – Final Budget Revision October 15 th – Annual Financial Report October 15 th – Annual Financial Report

8. Time for the numbers… Maintenance and Operation (M&O) Maintenance and Operation (M&O) Unrestricted Capital Unrestricted Capital Soft Capital Allocation Soft Capital Allocation Bonds Bonds Adjacent Ways Adjacent Ways

9. Maintenance & Operations (M&O) – The General Fund Revenue Control Limit (RCL) Revenue Control Limit (RCL) Capital Outlay Revenue Limit (CORL) Capital Outlay Revenue Limit (CORL) M&O Override M&O Override Budget Balance Carry Forward Budget Balance Carry Forward Career Ladder Carry Forward Career Ladder Carry Forward Adjustments Adjustments

10. Unrestricted Capital Revenue Control Limit (RCL) Revenue Control Limit (RCL) Capital Outlay Revenue Limit (CORL) Capital Outlay Revenue Limit (CORL) Capital Override Capital Override Budget Balance Carry Forward Budget Balance Carry Forward Interest Earned Interest Earned Adjustments Adjustments

11. Soft Capital Allocation Soft Capital Allocation Soft Capital Allocation Budget Balance Carry Forward Budget Balance Carry Forward Interest Earned Interest Earned Adjustments Adjustments

12. State Aid Payments APOR 64-1 APOR 64-1 –Monthly Payment Amount –Legislative Reductions –Rollover Payments –Additional State Aid Monthly Payment Schedule, except: Monthly Payment Schedule, except: –No July Payment –2 June Payments

13. Bonds Limitations Limitations –As Authorized by Voters –Constitutional Debt Limit –Statutory Debt Limit Impacts Secondary Levy based on repayment schedule Impacts Secondary Levy based on repayment schedule

14. Adjacent Ways Impacts Primary Levy Impacts Primary Levy Used to establish safe egress and ingress from school Used to establish safe egress and ingress from school

15. Questions?

16. Test Time Open Book Open Book –Use your notes –Don’t use your neighbors 20 Questions 20 Questions 20 Minutes 20 Minutes