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Copper Area News
So where do funds that support Arizona’s public and charter schools originate?
Education funding is complex as it comes from a number of different sources, often targeted for specific requirements, according to a report compiled by the Morrison Institute for Public Policy.
In fiscal 2011 (August 2010 to July 2011), a total of $8.4 billion was spent on kindergarten through 12th grade in Arizona. Of this amount $1.2 billion (15 percent) came from federal sources, $3.1 billion (37 percent) from the state, and $4 billion (48 percent) from local sources. State revenues came primarily from the Arizona General Fund, which generates revenue through the state sales tax, and personal and corporate income taxes. Local revenues come from property taxes, but also includes heavy doses of money the state passes to local districts through several channels.
This has changed over the years. A decade earlier, the state provided 46 percent of basic education funding, 44 percent from local sources, and 10 percent from the federal government. This charge resulted from a doubling of funds coming from the federal government and a slower growth in funding from the state general fund.
Education in Arizona comprises 20 percent of the state budget expenditures in fiscal 2011. This is similar to the 20.2 percent average among all states. But the source of revenues into the general fund has changed radically. In 1978 the revenue going into the general came 60.4 percent from taxes on mines, utilities and commercial businesses, and 31.5 percent from taxes on homes and rental property. By 2011 only 35.8 percent came from taxes on mines, utilities and commercial businesses and 53.8 percent from taxes on homes and rental property.
In terms of per-pupil spending, Arizona was once a US leader. In 1969-70, the state ranked 29th in per-pupil spending. By 2010-11 the state had dropped to 47th among the 50 states.
How schools use funds
To read a school budget, you’ll run into these terms:
BSL: Base Support Level, used for funding delivery of education to pupils.
TSL: Transportation Support Level, used for transporting students to school
CORL: Capital Outlay Revenue Limit, used to maintain and renovate facilities, purchase capital items, construct schools, or purchase or lease land.
Soft Capital: Can be used only to purchase short-term capital items including technology, textbooks, library resources, instructional aids, furniture and equipment. Cannot be used for maintenance and operational expenses.
M&O: Used only for maintenance and operation of schools.
Adjacent Ways: Can be used to construct, maintain or improve a public way adjacent to school.
Additional Assistance: Unrestricted funds for emergency capital purposes established by state formula.
Charter School Projects: Funds acquired from grants from the US Department of Education to construct, acquire, lease or renovate facilities. Also grants from the Industrial Development Authority so charter schools can issue tax-free bonds.
James J. Hodl is a career journalist who has worked for newspapers, magazines and trade journals. A graduate of Southern Illinois University with a Bachelor of Science degree in Journalism, Hodl began his career as a reporter with the Palatine (IL) Herald and the Morton Grove (IL) Review before becoming editor of the trade publication Appliance Service News. In recent years, Hodl has had articles published in Consumers Digest, Good Housekeeping, Home Remodeling, Kitchens & Baths and Salute; and has contributed to trade publications serving the home furnishings, restaurant and casino markets. A native of Chicago, Hodl relocated to San Tan Valley in 2013.
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