AASBO WebinarAASBO Webinar

Legislative Action to Legislative Action to Balance FY2009 BudgetBalance FY2009 Budget

May 21, 2009May 21, 2009

Staff from AZ Department of Education, Staff from AZ Department of Education, Auditor General’s Office and AASBOAuditor General’s Office and AASBO

HB2028HB2028

Rollover of $100 million to universitiesRollover of $100 million to universities

Use of $250 million from the federal Use of $250 million from the federal education stabilization fundeducation stabilization fund

Rollover of $300 million of basic state aid Rollover of $300 million of basic state aid and additional state aidand additional state aid

Total adjustment - $650 millionTotal adjustment - $650 million

Exempt from $300 Million RolloverExempt from $300 Million Rollover

Charter schoolsCharter schools

Districts with student count of 125 or less Districts with student count of 125 or less in K-8; 100 or less in 9-12 (A.R.S.15-949)in K-8; 100 or less in 9-12 (A.R.S.15-949)

HB2029HB2029

Adjusts the amount of the $300 million Adjusts the amount of the $300 million rollover that will be paid to school districts rollover that will be paid to school districts on October 15, 2009on October 15, 2009

Adjustment = ending cash balance in Adjustment = ending cash balance in M&O, unrestricted capital outlay and soft M&O, unrestricted capital outlay and soft capital less allowable carryforward amountcapital less allowable carryforward amount

Impact Aid AdjustmentImpact Aid Adjustment

Determine percentage of total P.L.81-874 Determine percentage of total P.L.81-874 revenue for M&O, unrestricted capital revenue for M&O, unrestricted capital outlay and soft capitaloutlay and soft capitalPercentage calculationPercentage calculation

Impact Aid receivedImpact Aid received____________________________________________________________________________________________________________________________________________________________________________________

Total revenue, excluding beginning cash Total revenue, excluding beginning cash balancebalance

No ImpactNo Impact

Accommodation districts receive full Accommodation districts receive full paymentpayment

A.R.S.15-949 districts which were exempt A.R.S.15-949 districts which were exempt from rolloverfrom rollover

Interest ImpactInterest Impact

Calculate 2% of amount to be paidCalculate 2% of amount to be paid

Multiply this amount by five-twelfthsMultiply this amount by five-twelfths

Estimated Outside RCL AdjustmentEstimated Outside RCL Adjustment

Interest expense incurred or estimated Interest expense incurred or estimated interest expense for registering warrants interest expense for registering warrants (2008-09/2009-10) due to implementation (2008-09/2009-10) due to implementation of HB2029 is exempt from 2009-10 RCLof HB2029 is exempt from 2009-10 RCL

Amount cannot exceed interest payment Amount cannot exceed interest payment receivedreceived

Other ItemsOther Items

Monies shall be included in computing tax Monies shall be included in computing tax ratesrates

County Treasurer and County School County Treasurer and County School Superintendent shall provide ADE with any Superintendent shall provide ADE with any requested information to carry out requested information to carry out requirementsrequirements

Questions ?Questions ?