Page 19 - School Finance Manual 2023-24

How Budgets are Categorized cont. 19

Other Instructional Programs - The monies in this fund must be used to supplement,
Program 610 - 630 rather than supplant, existing monies and must not be
These programs are used to account for activities that used for administrative purposes.
add to a student’s educational experience. These activi-
ties typically include events and activities that take place In 2018, the Arizona Legislature passed SB1390 to
outside the traditional classroom. Some examples of extend the Classroom Site Fund for another 20 years.
such activities are athletics, band, choir, and debate. In 2021, the Arizona Legislature passed SB1139 which
included a few provisions:
Classroom Site Fund 010 • eliminated the requirement to divide the classroom
site fund dollars between teacher base salary increases,
The Classroom Site Fund (CSF), as prescribed by performance-based compensation and maintenance
A.R.S. §15-977, was orginally established in fiscal year and operations (menu options)
2002 to account for the portion of state sales tax collec- • expanded the use to include “student support
tions and State Trust Land income provided to school services” as an allowable expense (function 2100)
districts as an additional source of funding for teacher While school districts no longer are required to distribute
salary increases and other specified maintenance and the funds in the original 20/40/40 manner, the over-
operation purposes. The amount that school districts arching allowable uses remain the same:
receive from the State to use at school sites is based
on actual tax collections, not to exceed the Joint Legis- Base Salary
lative Budget Committee (JLBC) annual estimate. Monies in this category can only be used for teacher

A.R.S. §15-978 establishes the Classroom Site Fund base salary increases, teacher employment related
Budget Limit (CSFBL) as the JLBC’s current estimate, expenses, and registered warrant expenses for this
plus any prior year’s unexpended budget balance fund.
and interest earnings in the CSF. Budget control is
applied at the total CSF level (i.e., Fund 010 expen- Performance Pay
ditures cannot exceed the CSFBL). The restrictions Monies in this category can only be used for perfor-
placed on the original allocation of revenues apply in mance-based teacher compensation increases, teacher
all future years. Therefore, the unexpended budget employment-related expenses, and registered warrant
balance must be carried forward in the CSF special expenses for this fund.
revenue fund.
Each district must adopt a Classroom Site Fund Pay
The CSF is a budget-controlled fund; therefore, districts for Performance Compensation Plan on or before
may make expenditures in the Fund that are within the December 31st of each year.
CSFBL, prior to receiving cash in which case warrants
would be registered for the fund. Other

Monies in this category can only be used
Laws 2009, 3rd Special Session, for the following maintenance and opera-
Chapter 11, amended A.R.S. 15-977 to tion purposes: class size reduction; teacher
require that classroom site fund budget compensation increases (including base
limit be adjusted for any prior year carry- pay and performance pay); assessment
forward or shortfall. For FY2023, the intervention programs; teacher devel-
budget amount per weighted student opment; dropout prevention programs;
was set at $711.
teacher liability insurance premiums; and
student support services.

Arizona Association of School Business Officials | School Finance Summary Manual