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2016 Senate Budget Proposal


FY 17 Senate Budget Summary

As of April 27, 2016

SB1526 general appropriations; 2016-2017 (Biggs)

Arizona Department of Education (ADE)

  1. Increases ADE operation budget by $3.1 million:
    • $475,600 basic operating
    • $2.7 million in FY16 to establish the ADE Professional Development Revolving Fund – continued in FY17
  2. Increases Basic State Aid (BSA) by $97 million:
    • Folds in K-3 reading $ into BSA instead of listing as separate line item, formula adjustments
    • Contains language contemplating the possible failure of Prop 123:
      • Reduces the SLT distribution by $172,444,700 (leaves $47,359,500)
      • Reduces BSA appropriation by same amount
      • Includes the one-time inflation of $74 million for FY17
  3. Includes $574, 000 for district-sponsored charter schools, distributed on a pro-rata basis
  4. Includes $100,000 for Geographic Literacy (yeah Mike!)
  5. Includes $160,00 in FY16 & $250,000 in FY17 for the Tribal College Dual Enrollment Program
  6. Adds requirement for JLBC review before using BSA or Additional State Aid (ASA) formula funds to offset shortfalls – currently ADE can do this without review
  7. Provides $7.3 million for data system
  8. Appropriates $15.5 million to Classroom Site Fund – one-time
  9. Continues the rollover - $930,727,700 – in FY17

Arizona Parents Commission on Drug Education and Prevention

  1. Appropriates $300,000 to the Commission for a prevention programs for middle and high school students.
  2. Directs the Commission to award funds competitively to implement a proactive prevention education program in all middle and high school students in the state.
  3. Requires the program to:
    • Promote positive life choices through educating students about consequences of destructive behaviors in order to reduce the motivation to use drugs.
    • Incorporate an education prevention component focusing on: substance abuse, mental health, violence and other risky behaviors.

SB1538 K-12 education; budget reconciliation; 2016-2017 (Biggs)

School Districts

  1. Increases the Base Level from $3,426.74 to $3,460.66 – if Prop 123 Fails 
  2. Increases the Base Level from $3,600 to $3,635.64 – if Prop 123 Passes
  3. Increases the Transportation Support Level amounts by .9%
  4. Continues to suspend $352,442,700 from District Additional Assistance allocations.
  5. Limits reduction for districts with ADM of 1,100 or less to $5,000,000

Current-Year Funding

  1. Directs school districts and JTEDs to use prior year ADM for the purposes of calculating the Base Support Level for rollover allocations and budget overrides
  2. Repeals section relating to and references to rapid growth calculations.

Charter Schools

  1. Increases the Charter Additional Assistance amounts:
    • a. P/K-8: from $1,734.92 to $1,752.10
    • b. 9-10: from $2,022.02 to $2,042.04
  2. Continues suspension of $18,656,000 from charter Additional Assistance.
  3. Repeals language authorizing district-sponsored charter schools
  4. Includes session law related to repealed financial provisions for district-sponsored charter schools converting from charter to district schools again.
  5. Eliminates the requirement for a charter authorizer to grant a charter to a charter holder, who is out of compliance with the USFR, seeking to transfer charters from another authorizer.

Small-School Weight

  1. Reduces the percentage ADE must reduce the amount provided by the small-school weight to affiliated charter schools from 67% to 53% for FY 17.
  2. Directs ADE to reduce the amount provided by the small-school weight to affiliated charter schools by 73% in FY 18 and subsequent years except ADE must reduce the amount by 100% for:
    • K-8 affiliated schools located within 3 miles of each other, and
    • Affiliated high schools located within 3 miles of each other, unless
    • Their combined ADM is less than 600

K-6 Technology-Based Language Development & Literacy Intervention Pilot Program

  1. Moves the FY 15 appropriation from SBE to ADE.
  2. Appropriates $246,800 in FY16 to ADE.
  3. Changes the deadline the SBE must submit its progress report to JLBC on the Program from September 15, 2015 to September 15, 2017 and the final report from September 15, 2016 to September 15, 2018.
  4. Delays the repeal the Program from December 31, 2017 to December 31, 2019.

Code Writers Initiative Pilot Program

  1. Establishes the Program at ADE and appropriates $300,000 to award competitive grants in coordination with American Indian Advisory Council (within ADE) to:
    1. Introduce computer code writing high school curriculum 
    2. Deliver technology-focused education to Native Americans
    3. Instruct Native American Students in computer code writing and work with industry partners to develop internships and programs for Initiative graduates.
    4. Provide professional development to teachers and administrators.
    5. Install distance-learning equipment to maximize delivery.
    6. Develop measures to determine the Initiative’s effectiveness and impacts on test scores and graduation rates.
    7. Includes reporting requirements
    8. Repeals Initiative on July 1, 2019

College Credit by Examination Incentive Pilot Program

  1. Establishes the Program and appropriates $5 million to ADE to provide incentive bonuses to teachers, school districts and charter schools for high school students who receive college credit in math, ELA or science by passing an examination.
  2. Directs ABOR to maintain a list of qualifying examinations and passing scores and must provide the list to ADE by September 1, 2016.
  3. Authorizes ADE to distribute incentive bonuses to high schools as follows:
    • 50%or higher FRL - $450 per eligible score
    • Less than 50% FRL - $300 per eligible score
    • If the total amount of incentive bonuses exceeds available funds, bonuses shall be proportionally reduced.
  4. Directs schools receiving incentive bonuses to distribute at least 50% to the associated teachers.
  5. Remaining funds must be used to provide professional development, student instructional support or materials.
  6. Includes reporting requirements
  7. Repeals Program on December 31, 2018.

Miscellaneous

  1. Establishes a subaccounts within the Teacher Certification Fund for ADE and SBE and allocates 85% to ADE and 15% to SBE.
  2. Adds requirements for the JTED annual report related to enrollment and program completion.
  3. Appropriates $3,636,500 in FY17 to ADE for the School Safety Program for school emergency readiness (continued appropriation and program from FY14) and repeals language December 31, 2017.
  4. Limits JTED equalization assistance to 95.5% of the formula amount.
  5. Authorizes the Classroom Site Fund to receive appropriations from the General Fund in FY17 and sets the per pupil amount at $343.50.
  6. Increases the maximum amount of unclaimed lottery prize money transferred to Tribal College Dual Enrollment Program Fund each fiscal year to the Fund from $160,000 to $250,000.
  7. Reduces the amount of space excluded for the purposes of determining capacity and eligibility for additional space or new facilities from SFB for districts with ADM of 7,500 or more from 25% to 10%.

Tax Package

The package contains several 13 separate items adding up to an ongoing $25,939,600 General Fund revenue loss:

  1. $18,000 - TPT exemption of agricultural aircraft sales proceeds.
  2. $3,000,000 - Reduces tax rates on all insurance premiums except fire, health service and disability insurance.
  3. $1,300,000 - TPT exemption of fine art sales proceeds
  4. $1,000,000 – TPT exemption for sales of livestock/poultry feed to non-commercial users
  5. $91,000 – TPT exemption of propane under specified circumstances.
  6. $10,000 – TPT exemption of billboard leases/rentals
  7. $870,000 – TPT and Use tax exemptions for gas transportation services.
  8. $2,600,000  - Increases the amount a taxpayer may claim for the Charitable Donation Tax Credit, retroactively effective January 1, 2016:
    • $200 to $400 for individuals 
    • $400 to $800 for married couples
    •  If it’s a Foster Care Charitable Organization:
      • $400 to $500 for individuals
      • $800 to $1,000
  9. $1,700,000 – allows Charitable Donation Tax Credit contributions made on or before April 15th applicable to the current or preceding tax year, retroactively effective January 1, 2016.
  10. $350,000 – classifies property used by higher education institution as Class 6 for property tax purposes (Grand Canyon University).
  11. $8,000,000 – Adds additional allowable depreciation for property for individual income taxes.
  12. $7,000,000 – Manufacturing partial-year



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