Summary

Arizona SB 1293 (Open States or Arizona Legislature) establishes a four-year simulated outcome-based funding pilot program and allows school districts and charter schools to submit applications to the State Board of Education (SBE) to participate.

Legislative Analysis

SB 1293 establishes a four-year simulated outcome-based funding pilot program. The purpose of the program is to test the results of tying funding more directly to school performance and improvement, rather than just pupil enrollment. Under the guidelines for the program:

• Districts and charters may submit applications to the State Board of Education (SBE) to participate.
• Selected participants consist of up to five school districts, including at least one that provides online instruction and five charter schools, including at least one that offers full-time Arizona online instruction.
• The SBE must solicit a request for information by October 31, 2013 regarding the appropriate assessment instruments that may be used to implement the simulated program, including cost estimates and proposed timetables for implementation.
•  The SBE is required to submit a report to the Governor and Legislature beginning November 15, 2015 summarizing the results.
• The simulated program is repealed as of September 15, 2020.
• Participants will continue to receive their usual funding while taking part in the pilot program.

The Arizona Department of Education will conduct an estimated analysis of the simulated funding that participants would have received under the modified school funding formula as follows:

• Up to a simulated $6,500 per student in Kindergarten and grades 1–8.
• Up to a simulated $7,500 per student in grades 9–12.
• 50% of the simulated funding will be disbursed according to monthly apportionment schedules prescribed by the SBE and the remaining 50% on the successful demonstration of outcomes.
• An additional simulated $250 per student who obtains a 3.0 in a dual or concurrent enrollment math or science course.
• Enrollment must be based on actual attendance of students for the current month.
• Participating students must take an exam to determine their baseline academic level for outcome-based funding.

SB 1293 supports digital learning through exploring ways to measure learning and fund education that go beyond just counting students who are in a school at a particular time. A focus on school performance and improvement over enrollment figures when it comes to school funding may serve to place a greater emphasis on student outcomes and drive higher levels of achievement. The explicit inclusion of districts and charter schools that offer online instruction will provide an opportunity to see how effective these programs are at helping students achieve academically and also to examine the impact of outcome-oriented non-traditional school models on funding.

Legislative History

Detailed Vote History: Legiscan |  Open States

Approved by Governor Janice Brewer on 4/11/2013