Page 19 - School Finance Manual 2025-26

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
The Classroom Site Fund (CSF), as prescribed by increases, performance-based compensation and
A.R.S. §15-977, was orginally established in Fiscal maintenance and operations (menu options)
Year 2002 to account for the portion of state sales tax • expanded the use to include “student support
collections and State Trust Land income provided to services” as an allowable expense (function 2100)
school districts as an additional source of funding for While school districts no longer are required to
teacher salary increases and other specified mainte- distribute the funds in the original 20/40/40 manner,
nance and operation purposes. The amount that school the overarching allowable uses remain the same
districts receive from the State to use at school sites including a requirement to include a performance
is based on actual tax collections, not to exceed the pay program for classroom teachers.
Joint Legislative Budget Committee (JLBC) annual esti-
mate. Monies in the fund are distributed based on a per Base Salary
weighted ADM basis for the prior year ADM. 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
placed on the original allocation of revenues apply in Monies in this category can only be used for perfor-
all future years. Therefore, the unexpended budget mance-based teacher compensation increases, teacher
balance must be carried forward in the CSF special employment-related expenses, and registered warrant
revenue fund. expenses for this fund.

The CSF is a budget-controlled fund; therefore, districts Each district must adopt a Classroom Site Fund Pay
may make expenditures in the Fund that are within the for Performance Compensation Plan on or before
CSFBL, prior to receiving cash in which case warrants December 31st of each year.
would be registered for the fund.
Other
Laws 2009, 3rd Special Session, Chapter 11, amended
A.R.S. 15-977 to require that classroom site fund Monies in this category can only be used for the following
budget limit be adjusted for any prior year carryfor- maintenance and operation purposes: class size reduc-
ward or shortfall. For FY2026, the budget amount per tion; teacher compensation increases (including base
weighted student was set at $842. pay and performance pay); assessment intervention
programs; teacher development; dropout prevention
programs; teacher liability insurance premiums; and
student support services.

Arizona Association of School Business Officials | School Finance Summary Manual