Classroom Site Fund (CSF) Summary

A summary of the Classroom Site Fund (CSF) allocation adjustments by LEA can be found in this link:

CSF Shortfall Summary_3-7-2013

 

School Finance is in the process of preparing to make final adjustments to Classroom Site Fund (CSF) payments for shortfalls which occurred during Fiscal Years 2005 through 2010.  No adjustments, positive or negative will be made prior to March 2013.   In most cases, school districts and charter schools are due additional CSF funding for prior years.  However, this is not always the case.  For those which have been overpaid, it is our goal to spread the adjustments over the final five payments for FY 2013 and the 12 payments for FY 2014.

Per Pupil Funding Factor

Classroom Site Fund (CSF) monies are distributed to school districts and charter schools based on a per pupil factor which is set prior to the start of the fiscal year (July 1 to June 30).  Statute, prior to fiscal year 2010-2011  required the factor to be determined by dividing projected revenues by estimated student counts for the upcoming year.  When actual revenues were insufficient to fully fund districts and charters at the established per pupil factor, statute provided for distributing the available revenues on a proportional basis.  For each fiscal year, FY 2006 through FY 2010, revenues fell short of projections and districts and charters received less CSF funding than the factor would have generated.

For FY 2011, statute was amended to require consideration of prior year shortages or surpluses when determining the per pupil factor.

Classroom Site Fund Shortfalls

This change in formula resulted in a per pupil factor of $25 per pupil for FY 2011,  in comparison to $244 for FY 2010.  Projected revenues and estimated student counts for FY 2011 equated to $220 per pupil, approximately $195 per pupil would go to prior year shortfalls.   However, the legislature set the factor for FY 2011 at $120 in order to phase in the change, leaving $100 per student count to be applied to shortages accumulated from FY 2006 to FY 2010.   The legislature also set the per pupil factor at $120 for FY 2012.  With projected revenues and estimated counts equating to $219 per pupil, this left $99 to be applied to the prior year shortages. 

For fiscal years 2006 through 2010, approximately $257 million in shortages accumulated.  During FY 2011 and FY 2012, almost $225 million was distributed towards the shortfalls leaving a net statewide balance of approximately $32.3 million.  As of June 30th, 2012, shortfall balances totaling approximately $38 million remain to be addressed and approximately $6 million in over-payments must come back to the state. 

Payments toward the Shortfalls

For FY 2011, all available revenues were distributed, allocated to every school district and charter school in operation based on each entities proportionate share of the statewide student count. For FY 2012, $220 per pupil was distributed to each school district and charter school in operation.   By distributing revenues in this manner, districts and charter schools with increasing counts or which did not exist during FY 2006 through 2010, were inadvertently given amounts they were not due. 

CSF distributions made during FY 2011 and FY 2012 each included $120 per weighted student count for the applicable year.  $120 was intended for new expenditure capacity in FY 2011 and also in FY2012. However the total projected CSF revenue of $220 for FY2011 and $219 for FY2012 was used for distribution purposes, without specific differentiation of amounts intended for the current year or the prior year. Amounts in excess of $120 were intended to apply to shortfalls in CSF revenues in FY 2006 through FY 2010. 

As indicated in CSF payment memos (beginning with FY 2012 CSF payment 9 memo, 12-051), advance notice was provided that a review of payments was being conducted and adjustments would be made.

Amounts to be paid and returned

The amount each school district and charter school will receive or which must be returned is included in the summary report for FY 2005 through FY 2012, available at the link below.

For school districts and charter schools which have received excess CSF monies, CSF payments, beginning with March 2013 and continuing through the final payment for FY 2014, will each be reduced by a portion of the over-payment.  Smaller adjustments will be applied to FY 2013 payments.

The amounts included in the list were determined by comparing CSF payment calculations based on current ADM (Student counts) for each year, 2005 through 2012, then comparing the result to the original payments made for each year.  Where applicable, district sponsored charter schools and JTED satellite programs are included in the sponsoring districts amount.

 

School districts and charter schools may contact School Finance, at schoolfinance@azed.gov, for more detail.  Please be sure to include your CTDS and school district or charter holder name when e-mailing School Finance.