Okay. At any time, stop me if you have questions. Okay. So, funding formulas serve very varied purposes uh uh based on policy. first to fund the basic costs of operating the school. So that means teachers, staff, administration, facilities, all those things and to fund specific cost drivers uh for some areas, special education, the size of the school, uh the district size, e all of those things. Those two things together factor into the state equalization formula. We'll come back to that term a little later. Um the funding also serves specific policies like special ed, title one, K3 literacy, community uh donations and approved oh community approved extras. So that means like bonds, bond elections and override elections and also to provide incentives uh for specific behaviors. So Arizona has uh some kind of incentive things like resultsbased funding. Uh performance pay for us performance pay is in our classroom site fund.
Uh and I won't even be talking about classroom site fund much today um uh because it's a kind of a separate budget. So, the sources of our funding, we have federal programs that Jen's going to talk with you about. We have state funding, so it's the general fund. That means that um sales tax, um any of the other taxes that Arizona collects from us as citizens, ballot measures, so that means bonds, overrides, uh special elections, and state trust lands. And I'm not even going to talk very much about that today, but I will tell you that if you're watching the news, when they talk about Prop 123, uh, and the discussions that the legislature and the governor are having about Prop 123, that is, uh, funding from state trust lands. Uh, we get about currently we get about $140,000 from Prop 123. So, it's a pretty limited amount of money for us.
Uh, it does become part of the U M budget. Um, but I'm not going to particularly talk about that today. Uh, it looks like, um, Prop 123 will continue to be funded at some level, um, depending on how they how the legislature and the governor work that out. Local local money. So, we have county property taxes. And I would like to point out uh to you, I'm sure you know, but I'd like to point out uh, Bullhead City has no property tax. So, the taxes that support our school district are from county taxes. The property tax that we pay um and not just us, but businesses, anybody that pays property tax, uh that's the primary tax rate. We have nothing to do with setting that. So, when we kind of brag about uh the property tax has gone down for our school district, we really don't have anything to do with that.
It gets calculated by the auditor general's office and we're told what it's going to be. secondary rate tax rate are those that are approved by election. So bonds. So if you look at your county tax bill, um you'll see a secondary rate on there where we are still paying and will be for a while uh as county uh property owners for the bond that paid the the fieldhouse paid for the fieldhouse and for the renovations to um Mojave High School and River Valley High School. So that was really a a bond that that was uh even at the time the districts were working together as Colorado River Schools that was a bond for crushed for the high school district. We don't have any secondary tax rate because we have no bonds and no overrides. Other local thing are donations and tax credit donations and then sale or rental of our property.
So before we sold Mountain View to the city, we collected a small rental fee from them uh for that property. Um but we did sell it and so that became a source of of could have become a source of re revenue for us. But if you recall, we didn't do any cash on that. We did inind. So uh no no money exchanged there. We didn't have to put it in the budget anywhere. Didn't have to take anything out of the budget anywhere. Um uh the city did however uh to do things like fix our parking lots uh do that street the connection up to our den project housing um and um we're actually meeting next week to talk about the project over here at the middle school uh for the little park. So uh all of those things played in in a way would be considered sale.
Okay. So, distribution of funding in Arizona, the green items are essentially uh state uh state tax or state funding, either county tax or state tax. So, the bottom line you're going to see several times in this presentation because that's what factors in to M budget and uh the district additional assistance which is capital. Above that you see a number of blue things and some of them are uh require a vote. Uh the other green things we have the classroom site fund. We have instructional improvement fund uh prop two whatever that says. I'm not sure what that is. This graph is from 2021. I borrowed it from another person's presentation and so I don't remember what that one is. But we could also say that that that's like prop 123. It's just some additional money. Okay.
Any questions about that one? You may want to come back to it. We'll see. How come federal funds is sort of two different colors? Because it comes through the state. Uh so federal dollars are allocated to the state and then we apply through the we apply to the state for those funds. So I'm thinking that's why it's kind of the two colors. Okay. We don't apply for any of the grants directly to the federal government. We to the state. So the money comes is allocated to the state and then we apply. Great question. Okay. So the orange ones um uh are the ones that's identifying for you the ones that require votes. Okay. If we had if we went to the public. So back in the day before there was state the state facilities board to whom districts now apply for funding for new schools or new buildings on campuses and those kinds of things.
Uh we had to go out for a bond uh get a bond election approved. Mhm. So, uh, Diamondback School, Coyote Canyon School, Fox Creek, uh, and Sunrise were all funded with bonds, uh, that the district got the voters in our in our district to vote yes to approve those those bonds at the time. Um, nobody, well, districts do this still, but not necessarily to build new schools for big renovations and those kinds of things. Okay, questions about those. So, I gave you those because I kind of want to show you what happens uh in uh in real life here. So, um uh district one on this graph really of these graphs is the closest to what we are. So we get the green funding that you saw on the previous two slides and we get some blue funding which is the federal money. Okay, for us the reason district one does not resemble us so much is that the blue section for us should be 20%.
Oh. So, of all the funding that we use every year to operate our schools, 20% currently is paid from grants. Pays the salaries for over 10% of our staff. That's significant because when Jen talks to you about the outlook for for uh grant funding for the next year, um you'll want to be thinking about that. That means over 30 employees in our district are paid for with federal dollars. District two has obviously uh the regular uh funding the equalization formula which is the green. District 2 also has a very large bond or override election amount of money and a fairly significant amount of federal dollars. District three. You can see it's changed. Okay. But the big thing for you to notice is that districts two and districts three, district three have more funds to operate their schools. And district 4 has a lot of funds um because they draw down a lot of federal dollars and they also have managed to pass bonds and overrights.
Okay. Uh so my guess is that district 4 uh has high poverty rate but also has a high tax rate and so they could they can get the votes to pass a bond. So you can see that their budget is significantly higher than what we have to work with. Okay. Then you see the two charter schools. The green for the two charter schools is higher because the charter schools are funded by the state at a higher level than the public schools are the other public schools, the regular public schools, right? Um and uh and the those greens and those collars are paid completely out of Arizona general fund. Totally. No county funds at all. Okay? No county funds. In a few minutes, I'm going to show you how if you look back at district one there, which is the closest to us, how that our green gets split between county dollars and equalization dollars, which are the state state um revenues, okay?
To get us that total green. But I want you to understand for the charters, the total green for them is out of uh state revenues. Not complaining, it's just fact. Okay, Carolyn. Yeah. Now, um, is that for both profit and nonprofit charters? They all get the same amount or is it just the nonprofits or it's for charters. So, if they have a charter then that's how it's it doesn't matter if they're a nonprofit or there are private schools. So, private schools get none of this. Yeah. But the charters, but they do now because of ESAs. Yeah. Okay. Uh so um you know it's important when you're looking at a school district if you want to make comparisons that you check to see is it a public school a regular public school is it a charter a public charter school in which case many of the same rules apply as apply to us or is it a private school?
Yeah. Okay. Because the funding is different. All right. the public charters are are this represents public charters distribution of school funding in Arizona. Uh we've talked about this before, but it's based on how many students you have in your district. Um and I liked this map. It's the first time I'd ever seen this map. Uh it represents all of the 400 some 454 school districts in the state. And I've circled ours. I suspect that it looks a little different in shape than you would expect because our district goes way north up the river uh beyond way up beyond Katherine. Nobody lives up there or if they do and they have kids, their kids probably go to another school. Um uh probably uh Peach Springs or some place out in there, Chloride. I don't know where they go. Um but that's our district. And uh on this on this map of Arizona, and this again is uh 2021, if you notice the little bitty school district that has Is there a pointer on here?
I don't know if there's a pointer. You notice the little bitty school district that's dark blue. Yeah, kind of down in the lower central part. Okay, that district has experienced significant increase in student population. Okay. the lighter the blue, it still represents increase in student enrollment but to a lesser degree. And then the several districts that are kind of look white or gray, um those are steady. And then as you move into the gold, you're you're looking at significant more significant drops in enrollment. So uh up in the upper right hand corner of the state, there's a a district that's kind of a dark orange. that one has had the greatest decrease in in student population. We're kind of in the middle of the kind of in the middle of the decrease in enrollment. So, what are the challenges? Well, the challenges of declining enrollment, first of all, but the thing is that expenses don't decline just because you have fewer students.
Some expenses stay the same or go up regardless, and you have to factor those in. Any questions or comments about this one? Looks like a lot of the state of Arizona is declining. Yes. The aging population and particularly some and if you notice a lot of those are are huge districts, you know, geographically huge districts. Um and you can identify the Phoenix area and the Tucson area because those are uh there's a lot of blue in those two areas. What is the blue one that's closest to us? Uh, I'd have to guess. Uh, is that you, Mom? It's a rural district. I I think it has. Is that Parker? Is that Parker? No, Parker. Parker's Parker would be down here. Kind of that. It's like a tan color. It's on down where that big indent is. Yeah. Um, I don't know. Go look at my map.
I've got a map in on on my desk of what that is, but it's a it's a rural very very rural. So, it would not take very many kids to show an increase in district. Okay. Yeah. And you notice it's part of Mojave County. Okay. Yeah. Yeah. That's why I was thinking it's part of Mojave County. Yeah. Yes. Yeah. It could be. Yeah. Yeah. You're probably right. It's Yaka. Yeah, it's Yaka, right? Yaka. What is it? Yaka. Oh. Oh, I didn't. So, yeah. Yaka could if three kids three kids increase it dramatically. 50 kids. I was just curious as to why that would be increasing and everything else in Mojave County is decreasing. Just curious. Huge area and low population, low density. So, how do we get uh the green equalization in the DAA funds? And DAA is district additional assistance. I'll say that several times.
So, if you now you're seeing that green bar again. So, M is the big piece on the left and uh and there's an equalization formula for that and then equalization formula for district additional assistance. Um and for for many districts that's capital money. for us it's it is our capital. Okay, it is our capital and I'll come back to that. So I want to give you some vocabulary here and I have little icons because maybe that'll help you or helps me to have a visual. So enrollment enrollment is the number of students registered to attend our schools prek special prek special ed through 8th grade. Okay. So, that's how many little bodies are enrolled registered to be in our schools. And for us, that's right around 2,200 students. Right around 2 2200. You get that report every uh every month in your board report from Jenny of what our enrollment is.
Okay. However, our budget is not determined by enrollment. It's determined by average daily membership. And what that means is, and there's an unweighted number for that. So, um, on this sheet, on this in this little packet that I gave you, I'm going to be referring to these things, but they're also represented on the front page of this packet. This is the DSA 55-1. Uh, this is the core of building our budget. And u so I've highlighted in green some of the so that you can follow along a little bit on here what it is that I'm talking about. So average daily membership. So I have the enrollment up there. I have all those little bodies there. Average daily membership. I'm showing you two days. Two days. So some kids are gone on the first day. Some different kids are gone on the second day. So the attendance for every single day of the school year is averaged.
Okay? Is averaged. Now, it used to be that it was really important that the ADM, the average daily membership, be really high up through the hundth day of school because the following year's budget was built on that data, on those data through the hundth day. Okay. not so significant anymore because every single day in the school year affects how we set the budget for the next year clear up to the last day of school. Okay? So, we want to keep that attendance high as high as we can every single day. And that's why you end up with weird numbers like on this page where you end up with regular education unweighted ADM 1956.2647 students. Okay, we don't have any quarter students, but in terms of the averages, that's how that works out. Okay, then you have group B add-on membership. And on this page that you're looking at, it's this big piece here.
Okay, this is all the students in various subgroups for which we get weighted amounts of money. So, ELLL, K3, K3 reading, 11 categories of special education. Uh, next to the bottom it says FRPL, that's our free and reduced lunch, and below that is gifted. Okay, so those are special populations that get us a little extra money. Those same kids count up at the top as for their for their daily attendance, but then we get additional waiting for those other categories. Okay, weighted means a support level value that is multiplied by various numbers. So you can see that the range is from oh my goodness 7,000th to 7.947. And so I've highlighted here in the center of this first page for you in the handout I gave you all of those various uh uh waitings. Okay. Now in the rest of my presentation I'm going to summarize those things.
I'm going to clump them together. I'm not going to deal with all of them individually. But you can see how it plays out here. So the number of students in that group B with all the waiting count down here as 768.897 students. So the waiting for those kids the waiting we ei means that they are equivalent to 700 more students. Okay. Carolyn. Yes. Back to the average daily membership. Um I I understand you know the prek special ed getting 0.5 because they only go a half day, don't they? Yes. But our kindergarten students is it because the state does not require them to go a whole day. We only get a half a day for them. It's because the state only funds for half day. It funds for a half day. Yes, they fund for half a day. So when you look at these numbers up here, um and I'm glad you asked that Barb because I would have wanted to come back to that.