For administrator-heavy school districts like the Tucson Unified School District, SB1223 would cost administrators dearly. The bill, sponsored by Sen. Steve Smith, (R-Maricopa), establishes a penalty for school districts that are spending less than their peer group districts and have not increased the percentage of classroom dollars.
The Auditor General (AG) is required to establish a school-wide audit team in the Office of the Auditor General to conduct performance audits and monitor districts to determine the percentage of every dollar spent in the classroom by a district (A.R.S. § 41-1279.03). The AG releases a report annually that analyzes classroom and non-classroom spending, which includes administration, plant operations, food service, transportation, student support, and instruction support. In comparing district spending, the AG uses peer groups, which include either districts of similar size, type, and location.
The primary funding mechanism for districts is funded by the base support level which is determined by calculating a districts weighted student average and multiplying by the base level (A.R.S § 15-943). The base level was $3,373.11 for FY 2015.
Opponents claim that expense classifications are problematic because some expenses are counted as classroom expenses and some are not, however districts have played games with classifications in the past. A change of classification, which has been requested by administrators, would not likely prevent them from engaging in creative classification in the future.
In the Tucson Unified School District little over 49 percent is spent in the classroom. The Auditor General found that over the last five years, “total spending per pupil decreased by 5 percent. Spending in the classroom decreased from 53.4 to 49.2 percent. Spending on plant operations increased substantially, spending on administration increased, and spending on food service, transportation, and student support increased slightly. Spending on instruction support decreased substantially.” This reduction occurred despite the fact that the district closed schools.
In the Mesa Unified School district, which is comparable in size to TUSD, over 56 percent is spent in the classroom. The Auditor General found that over the last five years, “total spending per pupil decreased by 2 percent. Spending in the classroom decreased from 61.4 to 56.3 percent. Overall, spending on transportation and instruction support increased and spending on plant operations, food service, and student support increased slightly. Spending on administration remained fairly stable.”
In the Phoenix Union High School District, which like TUSD receives desegregation monies, 55 percent is spent in the classroom. The Auditor General found that over the last five years, “total spending per pupil decreased by 6 percent. Spending in the classroom varied year to year, decreasing overall from 56.1 to 55 percent. Overall, spending on plant operations increased and spending on food service increased slightly. Spending on administration decreased, while spending on other nonclassroom areas remained fairly stable.”
SB1223 Provisions
1. Requires school districts to identify the classroom dollar percentage it spent according to the most recent AG report prepared.
2. Requires school districts to identify the classroom dollar percentage average of the school district’s peer group for the most recent AG report prepared.
3. Stipulates a school districts base support level to be reduced by $50 multiplied by the weighted student count if both of the following are true:
a) the percentage of classroom dollars spent by the school district is smaller than the percentage identified in the peer group average; and
b) the percentage of classroom dollars spent by the school district is smaller than the previous year’s percentage.
4. Becomes effective on the general effective date.
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TUSD’s Stegeman calls for reallocation away from administration