Budget Considerations for Type 03 Districts

Budget Considerations for Type 03 Districts

Basic state aid formula funding is calculated in accordance with statute based on the grade levels in which a school district or charter is approved to provide instruction. For most elementary school districts that are not within a high school district (type 03 districts), formula funding is only calculated for kindergarten through 8^th grade. High School students in type 03 districts, including SPED/ELL student counts, ​are funded based on the tuition amount charged by the attending district in accordance with ARS 15-824. 

Elementary districts that are not within a high school district should keep the following process in mind when closing out FY 2022 and preparing the FY 2023 budget:

• Budgeted tuition out amounts appear in the initial BUDG25 and BSA55 reports
• If a revised budget is submitted, tuition values in the BUDG25 and BSA55 reports will be updated
• Elementary districts that are not within a high school district (type 03 districts) should ensure that final tuition numbers are included in final budget revisions
  • Districts charging tuition are required to provide final tuition invoices by May 1st
• Type 03 districts are required to submit tuition invoices and final copies of the calculation worksheets for the previous fiscal year by October 31st
  • The final tuition amount supported by invoices will be used in the BUDG75 report and will result in an adjustment if the invoice amount does not match the amount in the final budget/BSA55
• If a district realizes that the tuition amount in the final budget or AFR is incorrect after statewide recalculation or after the AFR has been submitted, the tuition amount can be correct through the prior-year data correction process defined in ARS 15-915. Please click here for more information about prior-year data corrections.

Budgeting for the Tuition Out Adjustment:

The funded tuition out adjustment is based on districts' most recent successfully submitted budget as of the time of calculation. The chart below shows the specific locations in the budget file in which reporting by the district is required:

The values that a district enters for the required budgeted tuition amounts/transported counts will appear in the BUDG25 and BSA55 reports. If a revised budget is submitted, tuition values in the BUDG25 and BSA55 reports will be updated in the next calculation.

Reconciling Final Tuition Invoices to the Budget:

Districts can ensure that final tuition invoice amounts are reflected in final budget revisions by comparing the product of the tuition out ADM and tuition charge (tuition x ADM) in the budget to the total tuition invoice amount.

Correcting the Budget through A.R.S. 15-915:

If a district realizes that the tuition amount in the final budget or AFR is incorrect after statewide recalculation or after the AFR has been submitted, the tuition amount can be corrected through the 15-915 process; please see this Hot Topic for steps to request a 15-915 correction.

For questions regarding budgeting for Type 03 Tuition Out or Transporting High School Count, please send an email to [email protected]. For questions regarding your Type 03 Tuition Out adjustment or Transported High School Count on your BSA55, please email [email protected].