January '25 General Meeting Follow-up: AZ Legislature and Public Education

The topic of the January General Meeting was a Legislative Update by Alexis Susdorf of State48 Public Affairs. The meeting was recorded and can be watched HERE; the slide presentation is HERE. The questions below were asked by parents, and Ms. Susdorf researched the answers for us:

1) Should the expanded categories for public school tax credits be passed, how would that work operationally/administratively at the district?

Currently, a single or married filer can contribute to public school tax credits through a designated or undesignated category. A designated category allows funds to be designated for a specific purpose for those funds allowable under the law (e.g. extracurricular, character education program, etc.). An undesignated category will go to the specific school, and a site counsel determines how contributions are used at the school site under the allowable spending categories in the law. Should SB1007 pass and these extended categories (i.e. capital, community school meal programs, student consumable health supplies, and playground equipment/ shade structures) are allowable purposes for public school tax credits, they would be allowable under designated categories, or able to be used with undesignated funds should the site counsel choose. So, this bill would not change anything in the existing administrative process for parent contributions, it would simply expand the categories for parents to choose from if they select to designate their funds.

2) Is there a way for tax credits to be allocated to the entire district so that schools with a higher number of families not able to utilize this tax credit can benefit?

Currently, a tax credit can be for an undesignated purpose, but a specific school site has to be selected. There is no “district” selection. Although, the law allows for reclassification of contributions that were previously designated for a specific purpose if 1) The purpose or program has been discontinued or 2) the program has not been used in 2 consecutive years. The site council (generally a group of parents, teachers and classified employees that work with the school officials to make decisions) of each individual public school that reclassifies contributions to undesignated shall determine how the contributions are used. There is no authority for site councils to transfer funds to other schools within the district, but there is this authority to redesignate unused funds for other purposes as outlined above.

3) How much does SUSD receive from the additional state land trust dollars under Prop123?

From Shannon Crosier from SUSD: We currently receive annual $1,386,643 per year from Prop 123. Those funds go into the M&O account for the district. This fund is primarily used for salaries and benefits, 82% and $1.3 million is nearly a 1% raise for our staff. In a school system where every dollar counts, that’s a big impact.

4) What are the other entities that get funds from the state land trust?

Beneficiaries includes K-12 Public Education, Universities, Arizona School for the Deaf and the Blind; the State Legislative, Executive and Judicial Buildings; the Arizona State Hospital in Phoenix; the Arizona Pioneers’ Home in Prescott; the Arizona Department of Juvenile Corrections (ADJC); and the Arizona Department of Corrections (ADC).

Click HERE for archive of recordings of past SPC meetings.