In March of 2021, the Arizona House of Representatives passed new legislation for how Classroom Site Funds monies can be expended beginning in academic year 2021-22 or fiscal year 2022. Previously the statute required schools to allocate CSF monies as follows:
- 40% for teacher compensation increases based on performance and employment-related expenses
- 20% of monies for teacher base salary increases and employment-related expenses
- 40% of the monies for maintenance and operation purposes
Under the new statute the above provision would be eliminated, and CSF monies can be spent on teacher compensation, including a base pay and performance pay component as previously required, but also spent on student support services.
Student support services is defined in the USFR as “Activities designed to assess and improve the students’ well-being and to supplement the teaching process”. Using the USFR chart of accounts, this can be any 21XX object code. Examples of student support services include but are not limited to:
- Attendance and Social Work Services
- Guidance Services
- Health Services
- Psychological Services
- Speech Pathology/Audiology Services
- Occupational/Physical Therapy related Services
Other items to note:
Classroom site funding is based on student count for the previous school year, therefore funding for academic year 2021-22 would be the reported student count for academic year 2020-21.
The A.R.S § 15-977G1 “stipulates that the per pupil funding amount from the Classroom Site Funds for a given budget year shall be computed using the estimated “weighted” student count for the current year and estimated resources in the CSF for the budget year adjusted for any prior year carry-forward or shortfall”.
For FY22 the Joint Legislative Budget committee estimates that public schools will receive $733 per weighted pupil. Of this $733 increase, $192 per weighted pupil will only be a one-time increase due to higher-than-budgeted sales tax revenue caused by the pandemic. Public schools can expect CSF funding to decrease below $733 for academic year 2022-23, but the provisions noted above will remain the same.
You can find the legislative description here – https://www.azleg.gov/jlbc/CSF-FY2022-033121.pdf
You can find the changes to the ARS statute here – https://www.azleg.gov/legtext/55leg/1R/laws/0067.pdf
If you have any questions, please contact your Henry+Horne advisor.