The passing of Proposition 118 by Arizona voters in the general election could result in a small bump in the amount of money Page Unified School District receives per student from the state, but specifics remain unclear until the new formula is implemented, said the districtís financial director Lana Berry.
According to a statement from Arizona Treasury Department, Proposition 118 is designed to restructure the formula the state uses to distribute monies from the State Land Trust Permanent Endowment Fund to ensure more consistent and reliable disbursement of funds.
The original formula was determined by taking the five-year average total rate of return, adjusted for inflation by subtracting the five-year average GDP price deflator, and multiplying by the five-year average market value of the fund.
By adopting the new formula, which is a flat distribution of 2.5 percent each year, based on the market value of the Endowment for the previous five years, the fund hopes to avoid years where there are no funds to distribute.
Berry explained money the district receives in this manner goes directly into the classroom site fund, which the district chooses to use for teacher compensation, performance based pay and other like expenditures.
Berry said that while it is hard to say what, if any, financial impact the decision will have on the district proper, the new formula will certainly make the distribution process more consistent from year to year.
The new formula will be used beginning in 2013 and will revert back to the original formula in 2021.For the complete article see the 11-28-2012 issue.
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