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SB 1345 - Education funding; TPT; use tax

Tracking Level: Neutral
Sponsor: Kate Brophy McGee
Last Action: 2/19/2019 - Senate ED Committee action: Discussion Only, voting: (0-0-0-0)
Senate Committee: Rules
Assigned To:
RevenueNext Bill

Staff Analysis of the Legislation

This bill changes the revenue distribution for Prop 301 revenues, subject to voter approval in the next general election and in conjunction with SCR 1011.

Distribution of Revenues
Directs 70% of the revenue to be paid in monthly installments to the Classroom Site Fund (CSF)
Directs 20% of the amount generated to be paid in monthly installments as follows:

  • 34% to the Technology and Research Initiative Fund for the universities
  • 66% to the Arizona Board of Regents to lower tuition costs for in-state students

Directs 5% of the revenue to be paid in monthly installments as follows:

  • $48M to be distributed:
    • $1M to each community college district’s workforce development account for
      workforce development programs
    • $300K to each provisional community college district for trade and workforce
      development programs, excluding a community college tuition financing district
    • The remaining funds distributed proportionally, based on the full-time equivalent
      student count, to each community college district and provisional community college
  • $2M to be distributed:
    • $500K to the treasurer of each qualifying Indian tribe for trade and workforce development programs at each community college on an Indian reservation
    • The remaining funds to be distributed proportionally based on full-time equivalent student
      count to each qualifying Indian tribe for each community college

Directs 5% of the amount generated to be paid in monthly installments as follows:
a) $25 million to the state General Fund for the cost of the income tax credit;
b) $15 million to the Arizona Department of Education (ADE) for school safety;
c) $7 million to ADE for continued maintenance, operation and evaluation of the Education
Learning and Accountability System;
d) $3 million to the Auditor General to report on the use of the appropriated monies by
Arizona school districts, charter schools, community college districts and universities; and
e) any remaining monies to the CSF.

Specifies that Prop 301 must supplement, not supplant, legislatively appropriated funds.

Classroom Site Fund
Removes specified distributions from the CSF requiring each school district or charter school
to allocate:
a) 40 percent for teacher compensation increases;
b) 20 percent for teacher base salary increases and employment related expenses; and
c) 40 percent for maintenance and operation purposes.

Removes the requirement that CSF monies be spent for maintenance and operation purposes
a) assessment intervention programs; and
b) teacher liability insurance premiums.

Adds requirements that CSF monies be spent for the following purposes:
a) teacher compensation, rather than teacher compensation increases;
b) educational interventions;
c) voluntary full-day kindergarten;
d) the increased cost of additional school days enacted in 2000;
e) student support services;
f) tutoring;
g) character education;
h) school resource officers; and
i) career and technical education.

Removes the transfer of funds to the CSF, from the 0.6 percent TPT and use tax, set to begin
on July 1, 2021, that was authorized by Laws 2018, Chapter 74.

Requires ADE to annually use $86,280 from the CSF to fund basic state aid for schools to cover the cost of 5 additional school days originally approved by Prop 301.

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

Education funding; TPT; use tax


Education funding; TPT; use tax

Introduction Date:

Thursday, January 31, 2019