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SB 1080 - TPT; use tax; education

Tracking Level: Neutral
Sponsor: Sylvia Allen
Last Action: 3/4/2019 - Senate Committee of the Whole action: Do Pass Amended
Senate Committee: Rules
Assigned To:
School FinanceNext Bill

Staff Analysis of the Legislation

SB1080- TPT; use tax; education (Allen)

This bill eliminates the 0.6% TPT rate (Proposition 301) currently set to be collected from June 30, 2021 to June 30, 2041 and replaces it with a new TPT rate of 1% to raise revenue for education.

Revenue from the TPT would be distributed as follows:

o   73% is to be paid monthly to the classroom site fund;

o   22% is to be paid to the Arizona Board of Regents, who will distribute the funds proportionally to each University based on number of in-state students, to decrease tuition costs

o   The remaining 5% is appropriated as follows:

§  $1,500,000 to each community college district for trade and workforce development programs (does not apply to tuition financing districts);

§  $1,500,000 to qualifying Indian tribes that own, operate, or charter a community college on its Indian reservation for trade and workforce development programs;

§  $1,000,000 in FY22 and $500,000 in each year following to each provisional community college district and community college financing district for trade and workforce development programs.

§  Any remaining money shall be distributed proportionally to all of the above based on full-time student count.

Prescribes that, in addition to state general fund appropriations, the classroom site fund can now be appropriated for state aid to schools.

States that the ADE will use $86,280,500 of the classroom site fund annually to fund basic state aid for schools.

Eliminates the specification for schools to follow pre-determined allocations of the classroom site fund of performance and employment related expenses, teacher base salary increases, and maintenance and operation purposes and allows the schools to decide.

Eliminates the specification that only teacher compensation increases from the classroom site fund that are raises in base salary or performance based will be considered supplemental compensation.

Makes the following changes to how money from the classroom site fund can be used:

=       Eliminates:

o   class size reduction

o   assessment intervention programs

o   teacher liability insurance premiums

=       Adds:

o   educational interventions

o   voluntary full-day kindergarten

o   5 additional school days

o   student support services

o   tutoring

o   character education

o   school resource officers.

Bill Summary from the State Site - Click for the State Summary Page / Click for Current Full Text / PDF