Facts and FAQs (Frequently Asked Questions) on Prop. 301
Monies
Prepared by Robert Flach,
Chief Financial Officer
FACTS
§
Sales Tax revenue
from the State of Arizona are down 13%; this shortfall from the state cuts
Scottsdale Unified School District’s Prop. 301 allocation by $1.1 million.
§
SUSD has NOT cut
Prop. 301 funds!
§
SUSD is NOT
receiving the projected funds from State Sales Tax revenues.
FAQS (FREQUENTLY ASKED QUESTIONS
Question: WHY DID THIS HAPPEN?
·
Prop. 301 money to
teachers is based on sales tax revenue (6 tenths of 1%).
·
Sales tax spending is
down; this includes cars, hotels, airlines, clothes, etc. Therefore, sales tax
is down.
·
The State of Arizona
issued a memorandum from the Joint Legislative Budget Committee stating the
State cut the funding to Scottsdale teachers by $1.1 million.
Question: HOW MUCH MONEY WAS CUT?
·
$1.1 million was cut
from JUST the Prop. 301 funds.
·
This means
approximately 1% of a teacher’s total base salary. It does not include
stipends, career ladder, etc. A teacher making $31,000 would have an adjustment
of approximately $300.
·
Effectively, the teachers’ raises last spring
averaged 9.5%. This change means the teachers will average an increase of
8.5% this year–a loss of 1% over the projected amount.
·
We will still receive
sales tax revenue of just under $7.3 million, all of which will go to teachers.
Originally, the state indicated we would have $8.4 million additional dollars.
·
This District will
spend every penny of 301 funds on teachers.
Question: HOW CAN OTHER SCHOOL DISTRICTS AFFORD TO
MAKE UP THIS LOSS AND SUSD DOES NOT MAKE UP THE LOSS?
·
Unlike other school
districts, this school system does not hold back part of its M&O Budget for
contingency, 2% to 4% or $2.5-to-4 million. At the request of the SEA
(Scottsdale Education Association) last spring, every cent was placed on the
salary schedule.
·
The failure of the
M&O Override last November means a $3.3 million reduction in income. Those
funds are not available to help in this crisis.
·
Some school districts
were not hit with a high increase in health insurance.
·
Some school districts
only used 80% of projected 301 funds on the salary schedule and withheld 20%.
Therefore, they do not have to cut. SUSD, at the request of the SEA, put 100%
on the salary schedule.
·
We do not have an extra
$1.1 million in our M&O Budget.
In summary, we wished that we had sufficient funds to
make up for the State-funding cut. Our teachers deserve all of the funding we
can give them.
| For more FAQs
on Prop. 301, visit the Arizona Department of Education's Web site at:
http://www.ade.az.gov/schoolfinance/FAQs/PROP301.asp |
INFORMATION SENT TO ALL TEACHERS
ON FRIDAY, APRIL 19, 2002
301 FINANCIAL REDUCTION
As
per the Arizona Department of Education and Joint Legislative Budget Committee,
it is projected that 301 money will be reduced by 13.2%. The reason for the
reduction of 301 dollars paid to teachers, and only teachers, is based on .6%
added to sales tax. Sales tax spending is down; this includes cars, hotels,
airlines, etc. Therefore, sales tax is down.
301
was set up with three pots: Pot I is 20% of all dollars received; Pot III is
40% of all dollars received. All of Pots I and II were put on the salary
schedule. Pot II, 40%, is part of the plan submitted for pay for performance.
This money is distributed on a basis much the same as Career Ladder, i.e., for
people who qualify.
Questions:
1. What does this mean to you?
In your teacher contract there is a clause that says
the following:
“Employee expressly acknowledges and agrees that (i)
a portion of the monies used to pay Employee’s salary and performance pay, if
any, may be derived from the Proposition 301 Funds established under A.R.S. §
15-977 (“the Fund”) . . .
In the event that any of the above contingencies
reduce the amount available to the District for teacher salaries and benefits,
the Board shall reduce pro rata the total amount
of compensation due under this contract.”
2. How
much will my pay be reduced?
We must reduce the salary schedule,
and that, in turn, will reduce the total dollars paid to you this year. The
reductions for an individual teacher will range from a low for beginning
teachers of $293 to a high for experienced teachers of $536.
Depending on
the number of pays you signed up for, your check reductions will be divided by
3 pays or 8 pays. (The low, $293 ÷ 3 is $97.67 for 3 pays
and $36.63 for 8 pays. The high $536 ÷ 3 is $178.67 for 3 pays
and $67 for 8 pays.) Those who elected the 21-pay option will see cuts in
paychecks on May 3, 17, and 24. Those who chose the 8-pay option, the cuts will
be spread over 8 pays beginning May 3.
3. Can
some other funds be used to make up for the 13.2% reduction?
No. According to the 301 Law, any use of additional
funds to add to the 301 amount would be supplanting. This means that if money
was paid from the Plant Fund, or any other source of funds, it would have to be
paid permanently for the remainder of the time the 301 law remains in effect,
thereby hurting long range efforts for pay.
4. What
happens IF more money than projected is received from sales tax
throughout the summer?
Every dollar that is received from the state of
Arizona on behalf of 301 will be spent on teachers’ salaries. If more money is
received, we will change the salary schedule and you will be paid an additional
check, probably in August.
5. Is it
all bad news?
No.
There are three paydays in May. There will be no TSA withholding on May 24, and
there will be no insurance deduction on May 17. Therefore, since there must be
reductions, May is a particularly good time to go about the adjustment.
We
are sorry to have to inform you of this, but the law leaves us no choice. It is
our hope that spending will be brisk and the sales tax collections will be
increased next year.