Arizona schools increased classroom spending because of extra funds provided by Proposition 301, but classroom spending might have been more without the education sales tax, says a report by the Arizona auditor general.

“In fiscal 2003, Arizona’s classroom dollar percentage increased to 58.6 per cent from the previous year’s 58.2 per cent and [the] fiscal 2001 average of 57.7 per cent,” says the auditor general’s third annual report on classroom spending, which was recently released.

“If districts had spent their fiscal 2003 non-Proposition 301 monies in the same proportion as they did prior to receiving Proposition 301 monies, the additional monies would have raised the statewide average to 59.3 per cent,” the report continues. “However, many districts now spend proportionately less of their [non-Proposition 301] monies in the classroom than they did before.”

Below National Average

The report says the statewide average is below the national average of 61.5 per cent and also below the 61.6 per cent average of 10 states with states comparable in per-pupil spending. Of those states, only Oklahoma has a lower average – 57.9 per cent.

“Thus, Arizona is behind both the national average and its ‘peer states’ in directing dollars into the classroom,” says the report.

Since the passage of Proposition 301 in 2000, the Legislature has required the Auditor General to monitor the percent of each dollar spent in the classroom and conduct performance audits of school districts.

The report defines classroom dollars as current expenditures for classroom personnel, instructional supplies, instructional aides, certain tuition payments, field trips, athletics and other activities that complement the curriculum.

The report concludes that larger student populations allow districts to spend more in the classroom.

“Larger populations provide districts with more money, allowing them to meet their necessary fixed costs and leaving more money to devote to the classroom,” the report says. “Conversely, higher plant operation and maintenance, administration and transportation costs were the most significant factors associated with lower classroom dollar percentages.

“Statewide, Arizona school districts allocate a lower percentage of their dollars to administration costs than the national average and allocate a higher percentage of their dollars to plant costs and student support services,” it says.

On the use of Proposition 301 money, the report says districts spent $224 million in fiscal 2003 and used it almost solely for teacher compensation.

“Based on district-reported data, teacher salary increases attributable to Proposition 301 monies averaged 10 per cent, but ranged from 1 to 20 per cent,” says the report. “The amounts attributable to Proposition 301 monies ranged from $250 to $7,547 per eligible employee.” —