15-901.01 Inflation adjustments
(Caution: 1998 Prop. 105 may apply)
If approved by the qualified electors voting at a statewide general election, for
fiscal years 2001-2002 through 2005-2006, the legislature shall increase the base level
or other components of the revenue control limit by two per cent. For fiscal year
2006-2007 and each fiscal year thereafter, the legislature shall increase the base level
or other components of the revenue control limit by a minimum growth rate of either two
per cent or the change in the GDP price deflator, as defined in section 41-563, from the
second preceding calendar year to the calendar year immediately preceding the budget
year, whichever is less, except that the base level shall never be reduced below the base
level established for fiscal year 2001-2002.
15-901.02 Full-day kindergarten instruction; full-day kindergarten fund
A. A school or charter school that is provided and accepts monies pursuant to this
section for full-day kindergarten shall offer full-day kindergarten instruction to all
pupils who meet the enrollment requirements for kindergarten programs. Parents of pupils
who meet the enrollment requirements for voluntary kindergarten programs in a school or
charter school that is required to provide full-day kindergarten instruction shall choose
either half-day kindergarten instruction or full-day kindergarten instruction.
B. The legislature shall develop a plan, including capital monies, to provide
statewide full-day kindergarten instruction by fiscal year 2009-2010.
C. The school district or charter school shall receive monies for full-day
kindergarten pursuant to this section for each pupil who attends kindergarten
instruction.
D. The full-day kindergarten fund is established consisting of monies appropriated
to the department of education for this purpose. The department of education shall
administer the fund. If there are insufficient monies available in the fund to provide
full funding pursuant to this section, the department of education shall prorate the
amount per pupil distributed to each school district and charter school that is eligible
to receive monies from the fund. The amount budgeted by the school district or charter
school pursuant to this section shall not be included in the allowable budget balance
carryforward calculated pursuant to section 15-943.01. The full-day kindergarten fund
terminates on July 1, 2009, and any unencumbered monies remaining in the fund on that
date shall be transferred to the state general fund.
E. Monies in the full-day kindergarten fund are continuously appropriated and are
exempt from the provisions of section 35-190 relating to lapsing of appropriations, and
the allocation to each charter school and school district for a fiscal year shall equal
the per pupil amount established in this section for the fiscal year multiplied by the
weighted student count for the school district or charter school for the fiscal year
pursuant to section 15-943, paragraph 2, subdivision (a). For the purposes of this
subsection, the weighted student count for a school district that serves as the district
of attendance for nonresident pupils shall be increased to include nonresident pupils who
attend school in the school district.
F. Monies distributed from the full-day kindergarten fund shall be spent only for
full-day kindergarten instruction.
G. School districts and charter schools that receive monies from the full-day
kindergarten fund shall submit a report to the superintendent of public instruction on a
per school basis that provides an accounting of the expenditures of monies distributed
from the fund during the school year, a description of any professional development
required under this section, class size and any district class size policies, data
collected from state or district assessments of kindergarten pupils in both full-day and
half-day programs, the number of pupils, the number of pupils not served and the reasons
those pupils were not served and other information determined by the department of
education and the office of the auditor general. The department of education in
conjunction with the auditor general shall prescribe the format and due date of the
report required under this subsection.
H. School districts and charter schools that receive monies from the full-day
kindergarten fund shall receive these monies monthly in an amount not to exceed
one-twelfth of the monies estimated pursuant to subsection C of this section, except that
if there are insufficient monies in the fund that month to make payments, the
distribution for that month shall be prorated for each school district or charter school.
The department of education may make an additional payment in the current month for any
prior month or months in which school districts or charter schools received a prorated
payment if there are sufficient monies in the fund that month for the additional
payments. The state is not required to make payments to a school district or charter
school full-day kindergarten fund if the monies in the state full-day kindergarten fund
are insufficient to meet the estimated allocations to school districts and charter
schools pursuant to subsection C of this section.
I. The ARIZONA state schools for the deaf and the blind shall receive monies from
the full-day kindergarten fund in the same manner as school districts and charter
schools. The ARIZONA state schools for the deaf and the blind are subject to this section
in the same manner as school districts and charter schools.
J. Each school district and charter school shall establish a local level full-day
kindergarten fund to receive allocations from the state level full-day kindergarten fund.
The local level full-day kindergarten fund shall be a budgetary controlled account.
Interest charges for any registered warrants for the local level full-day kindergarten
fund shall be a charge against the local level full-day kindergarten fund. Interest
earned on monies in the local level full-day kindergarten fund shall be added to the
local level full-day kindergarten fund. This state shall not be required to make payments
to a school district or charter school local level full-day kindergarten fund that are in
addition to monies appropriated to the state level full-day kindergarten fund.
K. If the state board of education, the department of education, the auditor
general or the attorney general determines that a school district is substantially and
deliberately not in compliance with this title, and if the school district has failed to
correct the deficiency within ninety days after receiving notice from the department of
education, the state board of education may direct the superintendent of public
instruction, pursuant to state board of education rules, to withhold the monies the
school district would otherwise be entitled to receive from the full-day kindergarten
fund from the date of the determination of noncompliance until the department of
education determines that the school district is in compliance with this title.
L. If the sponsor of the charter school determines at a public meeting that the
charter school is not in compliance with federal law, with the laws of this state or with
its charter, the sponsor of a charter school shall notify the department of education to
withhold the monies that the charter school would otherwise be entitled to receive from
the full-day kindergarten fund. The sponsor shall provide written notice to the charter
school at least seventy-two hours before the meeting and shall allow the charter school
to respond to the allegations of noncompliance at the meeting before the sponsor makes a
final determination to notify the department of education of noncompliance. When the
sponsor determines that the charter school is in compliance, the department of education
shall restore the amount of monies that the charter school is entitled to receive from
the full-day kindergarten fund.
M. Schools are not required to offer full-day kindergarten instruction to
qualifying students if there is insufficient classroom space. Schools shall not accept
monies from the full-day kindergarten fund if space limitations result in class sizes
that exceed the average class size of the district or charter school.
N. All schools that accept monies from the full-day kindergarten fund shall provide
professional development that is directly related to the delivery of kindergarten
standards in a full-day program. Any school that has not yet undergone professional
development for implementation of the delivery of a research-based reading curriculum as
prescribed in section 15-704 may not receive money from the full-day kindergarten fund
until this training has been received by the kindergarten instructors on staff.
O. For any school district that funds voluntary full-day kindergarten instruction
with monies from a desegregation levy or a special budget override pursuant to section
15-482 and that qualifies for monies from the full-day kindergarten fund and if the
desegregation monies or special budget override monies are used solely to provide
full-day kindergarten instruction, the governing board shall hold a public meeting to
determine the reallocation of those monies to other programs or whether those monies
shall be used to reduce the school district's primary or secondary property tax levy, or
both.
P. The department of education shall conduct a comprehensive review of the existing
research on full-day kindergarten instruction, including academic literature, academic
studies and research and reviews conducted by public and private institutions on full-day
kindergarten instruction. The department shall consider research that provides support
for full-day kindergarten and research that does not provide support for full-day
kindergarten. The review conducted by the department of education shall emphasize
longitudinal studies that assess the long-term academic impact of full-day kindergarten
instruction. The department shall submit a report that summarizes the department's
findings and conclusions to the governor, the president of the senate, the speaker of the
house of representatives and the joint legislative budget committee on or before December
1, 2005. The department shall provide a copy of this report to the secretary of state and
the director of the ARIZONA state library, archives and public records.
Q. Notwithstanding subsection B of this section, the legislature shall not consider
the appropriation of any additional state monies for full-day kindergarten instruction
after the effective date of this amendment to this section until after the joint
legislative budget committee has reviewed the study prescribed in subsection P of this
section.
R. State monies for full-day kindergarten instruction shall not be provided for any
pupil who is not at least five years of age before September 1 of the school year in
which the pupil is enrolled. 15-901.03 Transfers; review
Notwithstanding section 35-173, subsection C, any transfer to or from the amount
appropriated for basic state aid entitlement, additional state aid to schools,
certificates of educational convenience or the special education fund line items shall
require review by the joint legislative budget committee. 15-901 Definitions
A. In this title, unless the context otherwise requires:
1. "Average daily attendance" or "ADA" means actual average daily attendance
through the first one hundred days or two hundred days in session, as applicable.
2. "Average daily membership" means the total enrollment of fractional students and
full-time students, minus withdrawals, of each school day through the first one hundred
days or two hundred days in session, as applicable, for the current year. Withdrawals
include students formally withdrawn from schools and students absent for ten consecutive
school days, except for excused absences as identified by the department of
education. For computation purposes, the effective date of withdrawal shall be
retroactive to the last day of actual attendance of the student.
(a) "Fractional student" means:
(i) For common schools, until fiscal year 2001-2002, a preschool child who is
enrolled in a program for preschool children with disabilities of at least three hundred
sixty minutes each week or a kindergarten student at least five years of age prior to
January 1 of the school year and enrolled in a school kindergarten program that meets at
least three hundred forty-six instructional hours during the minimum number of days
required in a school year as provided in section 15-341. In fiscal year 2001-2002, the
kindergarten program shall meet at least three hundred forty-eight hours. In fiscal year
2002-2003, the kindergarten program shall meet at least three hundred fifty hours. In
fiscal year 2003-2004, the kindergarten program shall meet at least three hundred
fifty-two hours. In fiscal year 2004-2005, the kindergarten program shall meet at least
three hundred fifty-four hours. In fiscal year 2005-2006 and each fiscal year
thereafter, the kindergarten program shall meet at least three hundred fifty-six hours.
Lunch periods and recess periods may not be included as part of the instructional hours
unless the child's individualized education program requires instruction during those
periods and the specific reasons for such instruction are fully documented. In computing
the average daily membership, preschool children with disabilities and kindergarten
students shall be counted as one-half of a full-time student. For common schools, a
part-time student is a student enrolled for less than the total time for a full-time
student as defined in this section. A part-time common school student shall be counted as
one-fourth, one-half or three-fourths of a full-time student if the student is enrolled
in an instructional program that is at least one-fourth, one-half or three-fourths of the
time a full-time student is enrolled as defined in subdivision (b) of this paragraph.
(ii) For high schools, a part-time student who is enrolled in less than four
subjects that count toward graduation as defined by the state board of education in a
recognized high school and who is taught in less than twenty instructional hours per week
prorated for any week with fewer than five school days. A part-time high school student
shall be counted as one-fourth, one-half or three-fourths of a full-time student if the
student is enrolled in an instructional program that is at least one-fourth, one-half or
three-fourths of a full-time instructional program as defined in subdivision (c) of this
paragraph.
(b) "Full-time student" means:
(i) For common schools, a student who is at least six years of age prior to January
1 of a school year, who has not graduated from the highest grade taught in the school
district and who is regularly enrolled in a course of study required by the state board
of education. Until fiscal year 2001-2002, first, second and third grade students,
ungraded students at least six, but under nine, years of age by September 1 or ungraded
group B children with disabilities who are at least five, but under six, years of age by
September 1 must be enrolled in an instructional program that meets for a total of at
least six hundred ninety-two hours during the minimum number of days required in a school
year as provided in section 15-341. In fiscal year 2001-2002, the program shall meet at
least six hundred ninety-six hours. In fiscal year 2002-2003, the program shall meet at
least seven hundred hours. In fiscal year 2003-2004, the program shall meet at least
seven hundred four hours. In fiscal year 2004-2005, the program shall meet at least seven
hundred eight hours. In fiscal year 2005-2006 and in each fiscal year thereafter, the
program shall meet at least seven hundred twelve hours. Until fiscal year 2001-2002,
fourth, fifth and sixth grade students or ungraded students at least nine, but under
twelve, years of age by September 1 must be enrolled in an instructional program that
meets for a total of at least eight hundred sixty-five hours during the minimum number of
school days required in a school year as provided in section 15-341. In fiscal year
2001-2002, the program shall meet at least eight hundred seventy hours. In fiscal year
2002-2003, the program shall meet at least eight hundred seventy-five hours. In fiscal
year 2003-2004, the program shall meet at least eight hundred eighty hours. In fiscal
year 2004-2005, the program shall meet at least eight hundred eighty-five hours. In
fiscal year 2005-2006 and each fiscal year thereafter, the program shall meet at least
eight hundred ninety hours. Until fiscal year 2001-2002, seventh and eighth grade
students or ungraded students at least twelve, but under fourteen, years of age by
September 1 must be enrolled in an instructional program that meets for a total of at
least one thousand thirty-eight hours during the minimum number of days required in a
school year as provided in section 15-341. In fiscal year 2001-2002, the program shall
meet at least one thousand forty-four hours. In fiscal year 2002-2003, the program shall
meet at least one thousand fifty hours. In fiscal year 2003-2004, the program shall meet
at least one thousand fifty-six hours. In fiscal year 2004-2005, the program shall meet
at least one thousand sixty-two hours. In fiscal year 2005-2006 and each fiscal year
thereafter, the program shall meet at least one thousand sixty-eight hours. Lunch periods
and recess periods may not be included as part of the instructional hours unless the
student is a child with a disability and the child's individualized education program
requires instruction during those periods and the specific reasons for such instruction
are fully documented.
(ii) For high schools, a student not graduated from the highest grade taught in the
school district, or an ungraded student at least fourteen years of age by September 1,
and enrolled in at least a full-time instructional program of subjects that count toward
graduation as defined by the state board of education in a recognized high school. A
full-time student shall not be counted more than once for computation of average daily
membership.
(iii) For homebound or hospitalized, a student receiving at least four hours of
instruction per week.
(c) "Full-time instructional program" means:
(i) Through fiscal year 2000-2001, at least four subjects, each of which, if taught
each school day for the minimum number of days required in a school year, would meet a
minimum of one hundred twenty hours a year, or the equivalent, or one or more subjects
taught in amounts of time totaling at least twenty hours per week prorated for any week
with fewer than five school days.
(ii) For fiscal year 2001-2002, an instructional program that meets at least a
total of seven hundred four hours during the minimum number of days required and includes
at least four subjects each of which, if taught each school day for the minimum number of
days required in a school year, would meet a minimum of one hundred twenty-two hours a
year, or the equivalent, or one or more subjects taught in amounts of time totaling at
least twenty hours per week prorated for any week with fewer than five school days.
(iii) For fiscal year 2002-2003, an instructional program that meets at least a
total of seven hundred eight hours during the minimum number of days required and
includes at least four subjects each of which, if taught each school day for the minimum
number of days required in a school year, would meet a minimum of one hundred twenty-two
hours a year, or the equivalent, or one or more subjects taught in amounts of time
totaling at least twenty hours per week prorated for any week with fewer than five school
days.
(iv) For fiscal year 2003-2004, an instructional program that meets at least a
total of seven hundred twelve hours during the minimum number of days required and
includes at least four subjects each of which, if taught each school day for the minimum
number of days required in a school year, would meet a minimum of one hundred
twenty-three hours a year, or the equivalent, or one or more subjects taught in amounts
of time totaling at least twenty hours per week prorated for any week with fewer than
five school days.
(v) For fiscal year 2004-2005, an instructional program that meets at least a total
of seven hundred sixteen hours during the minimum number of days required and includes at
least four subjects each of which, if taught each school day for the minimum number of
days required in a school year, would meet a minimum of one hundred twenty-three hours a
year, or the equivalent, or one or more subjects taught in amounts of time totaling at
least twenty hours per week prorated for any week with fewer than five school days.
(vi) For fiscal year 2005-2006 and each fiscal year thereafter, an instructional
program that meets at least a total of seven hundred twenty hours during the minimum
number of days required and includes at least four subjects each of which, if taught each
school day for the minimum number of days required in a school year, would meet a minimum
of one hundred twenty-three hours a year, or the equivalent, or one or more subjects
taught in amounts of time totaling at least twenty hours per week prorated for any week
with fewer than five school days.
3. "Budget year" means the fiscal year for which the school district is budgeting
and which immediately follows the current year.
4. "Common school district" means a political subdivision of this state offering
instruction to students in programs for preschool children with disabilities and
kindergarten programs and grades one through eight.
5. "Current year" means the fiscal year in which a school district is operating.
6. "Daily attendance" means:
(a) For common schools, days in which a pupil:
(i) Of a kindergarten program or ungraded, but not group B children with
disabilities, and at least five, but under six, years of age by September 1 attends at
least three-quarters of the instructional time scheduled for the day. If the total
instruction time scheduled for the year is at least three hundred forty-six hours but is
less than six hundred ninety-two hours such attendance shall be counted as one-half day
of attendance. If the instructional time scheduled for the year is at least six hundred
ninety-two hours, "daily attendance" means days in which a pupil attends at least
one-half of the instructional time scheduled for the day. Such attendance shall be
counted as one-half day of attendance.
(ii) Of the first, second or third grades, ungraded and at least six, but under
nine, years of age by September 1 or ungraded group B children with disabilities and at
least five, but under six, years of age by September 1 attends more than three-quarters
of the instructional time scheduled for the day.
(iii) Of the fourth, fifth or sixth grades or ungraded and at least nine, but under
twelve, years of age by September 1 attends more than three-quarters of the instructional
time scheduled for the day, except as provided in section 15-797.
(iv) Of the seventh or eighth grades or ungraded and at least twelve, but under
fourteen, years of age by September 1 attends more than three-quarters of the
instructional time scheduled for the day, except as provided in section 15-797.
(b) For common schools, the attendance of a pupil at three-quarters or less of the
instructional time scheduled for the day shall be counted as follows, except as provided
in section 15-797 and except that attendance for a fractional student shall not exceed
the pupil's fractional membership:
(i) If attendance for all pupils in the school is based on quarter days, the
attendance of a pupil shall be counted as one-fourth of a day's attendance for each
one-fourth of full-time instructional time attended.
(ii) If attendance for all pupils in the school is based on half days, the
attendance of at least three-quarters of the instructional time scheduled for the day
shall be counted as a full day's attendance and attendance at a minimum of one-half but
less than three-quarters of the instructional time scheduled for the day equals one-half
day of attendance.
(c) For common schools, the attendance of a preschool child with disabilities shall
be counted as one-fourth day's attendance for each thirty-six minutes of attendance not
including lunch periods and recess periods, except as provided in paragraph 2,
subdivision (a), item (i) of this subsection for children with disabilities up to a
maximum of three hundred sixty minutes each week.
(d) For high schools or ungraded schools in which the pupil is at least fourteen
years of age by September 1, the attendance of a pupil shall not be counted as a full day
unless the pupil is actually and physically in attendance and enrolled in and carrying
four subjects, each of which, if taught each school day for the minimum number of days
required in a school year, would meet a minimum of one hundred twenty hours a year, or
the equivalent, that count toward graduation in a recognized high school except as
provided in section 15-797 and subdivision (e) of this paragraph. Attendance of a pupil
carrying less than the load prescribed shall be prorated.
(e) For high schools or ungraded schools in which the pupil is at least fourteen
years of age by September 1, the attendance of a pupil may be counted as one-fourth of a
day's attendance for each sixty minutes of instructional time in a subject that counts
toward graduation, except that attendance for a pupil shall not exceed the pupil's full
or fractional membership.
(f) For homebound or hospitalized, a full day of attendance may be counted for each
day during a week in which the student receives at least four hours of instruction.
(g) For school districts which maintain school for an approved year-round school
year operation, attendance shall be based on a computation, as prescribed by the
superintendent of public instruction, of the one hundred eighty days' equivalency or two
hundred days' equivalency, as applicable, of instructional time as approved by the
superintendent of public instruction during which each pupil is enrolled.
7. "Daily route mileage" means the sum of:
(a) The total number of miles driven daily by all buses of a school district while
transporting eligible students from their residence to the school of attendance and from
the school of attendance to their residence on scheduled routes approved by the
superintendent of public instruction.
(b) The total number of miles driven daily on routes approved by the superintendent
of public instruction for which a private party, a political subdivision or a common or a
contract carrier is reimbursed for bringing an eligible student from the place of his
residence to a school transportation pickup point or to the school of attendance and from
the school transportation scheduled return point or from the school of attendance to his
residence. Daily route mileage includes the total number of miles necessary to drive to
transport eligible students from and to their residence as provided in this paragraph.
8. "District support level" means the base support level plus the transportation
support level.
9. "Eligible students" means:
(a) Students who are transported by or for a school district and who qualify as
full-time students or fractional students, except students for whom transportation is
paid by another school district or a county school superintendent, and:
(i) For common school students, whose place of actual residence within the school
district is more than one mile from the school facility of attendance or students who are
admitted pursuant to section 15-816.01 and who meet the economic eligibility requirements
established under the national school lunch and child nutrition acts (42 United States
Code sections 1751 through 1785) for free or reduced price lunches and whose actual place
of residence outside the school district boundaries is more than one mile from the school
facility of attendance.
(ii) For high school students, whose place of actual residence within the school
district is more than one and one-half miles from the school facility of attendance or
students who are admitted pursuant to section 15-816.01 and who meet the economic
eligibility requirements established under the national school lunch and child nutrition
acts (42 United States Code sections 1751 through 1785) for free or reduced price lunches
and whose actual place of residence outside the school district boundaries is more than
one and one-half miles from the school facility of attendance.
(b) Kindergarten students, for purposes of computing the number of eligible
students under subdivision (a), item (i) of this paragraph, shall be counted as full-time
students, notwithstanding any other provision of law.
(c) Children with disabilities, as defined by section 15-761, who are transported
by or for the school district or who are admitted pursuant to chapter 8, article 1.1 of
this title and who qualify as full-time students or fractional students regardless of
location or residence within the school district or children with disabilities whose
transportation is required by the pupil's individualized education program.
(d) Students whose residence is outside the school district and who are transported
within the school district on the same basis as students who reside in the school
district.
10. "Enrolled" or "enrollment" means when a pupil is currently registered in the
school district.
11. "GDP price deflator" means the average of the four implicit price deflators for
the gross domestic product reported by the United States department of commerce for the
four quarters of the calendar year.
12. "High school district" means a political subdivision of this state offering
instruction to students for grades nine through twelve or that portion of the budget of a
common school district which is allocated to teaching high school subjects with
permission of the state board of education.
13. "Revenue control limit" means the base revenue control limit plus the
transportation revenue control limit.
14. "Student count" means average daily membership as prescribed in this subsection
for the fiscal year prior to the current year, except that for the purpose of budget
preparation student count means average daily membership as prescribed in this subsection
for the current year.
15. "Submit electronically" means submitted in a format and in a manner prescribed
by the department of education.
16. "Total bus mileage" means the total number of miles driven by all buses of a
school district during the school year.
17. "Total students transported" means all eligible students transported from their
place of residence to a school transportation pickup point or to the school of attendance
and from the school of attendance or from the school transportation scheduled return
point to their place of residence.
18. "Unified school district" means a political subdivision of the state offering
instruction to students in programs for preschool children with disabilities and
kindergarten programs and grades one through twelve.
B. In this title, unless the context otherwise requires:
1. "Base" means the revenue level per student count specified by the legislature.
2. "Base level" means:
(a) For fiscal year 2004-2005, two thousand eight hundred ninety-three dollars
eighteen cents.
(b) For fiscal year 2005-2006, three thousand one dollars.
3. "Base revenue control limit" means the base revenue control limit computed as
provided in section 15-944.
4. "Base support level" means the base support level as provided in section 15-943.
5. "Certified teacher" means a person who is certified as a teacher pursuant to the
rules adopted by the state board of education, who renders direct and personal services
to school children in the form of instruction related to the school district's
educational course of study and who is paid from the maintenance and operation section of
the budget.
6. "ED, MIMR, SLD, SLI and OHI" means programs for children with emotional
disabilities, mild mental retardation, a specific learning disability, a speech/language
impairment and other health impairments.
7. "ED-P" means programs for children with emotional disabilities who are enrolled
in private special education programs as prescribed in section 15-765, subsection D,
paragraph 1 or in an intensive school district program as provided in section 15-765,
subsection D, paragraph 2.
8. "ELL" means English learners who do not speak English or whose native language
is not English, who are not currently able to perform ordinary classroom work in English
and who are enrolled in an English language education program pursuant to sections
15-751, 15-752 and 15-753.
9. "Full-time equivalent certified teacher" or "FTE certified teacher" means for a
certified teacher the following:
(a) If employed full time as defined in section 15-501, 1.00.
(b) If employed less than full time, multiply 1.00 by the percentage of a full
school day, or its equivalent, or a full class load, or its equivalent, for which the
teacher is employed as determined by the governing board.
10. "Group A" means educational programs for career exploration, a specific learning
disability, an emotional disability, mild mental retardation, remedial education, a
speech/language impairment, homebound, bilingual, preschool moderate delay, preschool
speech/language delay, other health impairments and gifted pupils.
11. "Group B" means educational improvements for pupils in kindergarten programs and
grades one through three, educational programs for autism, a hearing impairment, moderate
mental retardation, multiple disabilities, multiple disabilities with severe sensory
impairment, orthopedic impairments, preschool severe delay, severe mental retardation and
emotional disabilities for school age pupils enrolled in private special education
programs or in school district programs for children with severe disabilities or visual
impairment and English learners enrolled in a program to promote English language
proficiency pursuant to section 15-752.
12. "HI" means programs for pupils with hearing impairment.
13. "Homebound" or "hospitalized" means a pupil who is capable of profiting from
academic instruction but is unable to attend school due to illness, disease, accident or
other health conditions, who has been examined by a competent medical doctor and who is
certified by that doctor as being unable to attend regular classes for a period of not
less than three school months or a pupil who is capable of profiting from academic
instruction but is unable to attend school regularly due to chronic or acute health
problems, who has been examined by a competent medical doctor and who is certified by
that doctor as being unable to attend regular classes for intermittent periods of time
totaling three school months during a school year. The medical certification shall state
the general medical condition, such as illness, disease or chronic health condition, that
is the reason that the pupil is unable to attend school. Homebound or hospitalized
includes a student who is unable to attend school for a period of less than three months
due to a pregnancy if a competent medical doctor, after an examination, certifies that
the student is unable to attend regular classes due to risk to the pregnancy or to the
student's health.
14. "K-3" means kindergarten programs and grades one through three.
15. "MD-R, A-R and SMR-R" means resource programs for pupils with multiple
disabilities, autism and severe mental retardation.
16. "MD-SC, A-SC and SMR-SC" means self-contained programs for pupils with multiple
disabilities, autism and severe mental retardation.
17. "MDSSI" means a program for pupils with multiple disabilities with severe
sensory impairment.
18. "MOMR" means programs for pupils with moderate mental retardation.
19. "OI-R" means a resource program for pupils with orthopedic impairments.
20. "OI-SC" means a self-contained program for pupils with orthopedic impairments.
21. "PSD" means preschool programs for children with disabilities as provided in
section 15-771.
22. "P-SD" means programs for children who meet the definition of preschool severe
delay as provided in section 15-771.
23. "Qualifying tax rate" means the qualifying tax rate specified in section 15-971
applied to the assessed valuation used for primary property taxes.
24. "Small isolated school district" means a school district which meets all of the
following:
(a) Has a student count of fewer than six hundred in kindergarten programs and
grades one through eight or grades nine through twelve.
(b) Contains no school which is fewer than thirty miles by the most reasonable
route from another school, or, if road conditions and terrain make the driving slow or
hazardous, fifteen miles from another school which teaches one or more of the same grades
and is operated by another school district in this state.
(c) Is designated as a small isolated school district by the superintendent of
public instruction.
25. "Small school district" means a school district which meets all of the
following:
(a) Has a student count of fewer than six hundred in kindergarten programs and
grades one through eight or grades nine through twelve.
(b) Contains at least one school which is fewer than thirty miles by the most
reasonable route from another school which teaches one or more of the same grades and is
operated by another school district in this state.
(c) Is designated as a small school district by the superintendent of public
instruction.
26. "Transportation revenue control limit" means the transportation revenue control
limit computed as prescribed in section 15-946.
27. "Transportation support level" means the support level for pupil transportation
operating expenses as provided in section 15-945.
28. "VI" means programs for pupils with visual impairments.
29. "Voc. Ed." means career and technical education and vocational education
programs, as defined in section 15-781.
15-902.01 Student revenue loss phase-down
A. Notwithstanding section 15-902, subsection I a school district which loses at
least five hundred students from its student count as a result of the formation of a
joint unified school district pursuant to section 15-450 and does not receive tuition for
those students for the budget year, may increase its base support level for the budget
year by an amount as follows:
1. For the first year of the loss, six hundred fifty thousand dollars.
2. For the second year following the loss, six hundred thousand dollars.
3. For the third year following the loss, five hundred thousand dollars.
4. For the fourth year following the loss, three hundred thousand dollars.
5. For the fifth year following the loss, one hundred thousand dollars.
B. In addition to any adjustment for tuition loss received pursuant to section
15-954 a union high school district which loses at least fifty students from its tuition
count as a result of the formation of a joint unified school district pursuant to section
15-450 and does not receive tuition for those students for the budget year, may increase
its base support level for the budget year by an amount as follows:
1. For the first year of the loss, one hundred thousand dollars.
2. If during the second year following the initial loss of students the union high
school district loses an additional fifty students as a result of the formation of a
joint unified school district pursuant to section 15-450 and does not receive tuition for
those students for the budget year, two hundred thousand dollars.
3. If during the third year following the initial loss of students the union high
school district loses an additional fifty students beyond the second year's additional
loss as a result of the formation of a joint unified school district pursuant to section
15-450 and does not receive tuition for those students for the budget year, three hundred
twenty-five thousand dollars.
4. If the union high school district was eligible for the three hundred twenty-five
thousand dollars as provided in paragraph 3 of this subsection, for the fourth year
following the initial loss of students, two hundred thousand dollars.
5. If the union high school district was eligible for the two hundred thousand
dollars as provided in paragraph 4 of this subsection, for the fifth year following the
initial loss of students, one hundred thousand dollars.
15-902.02 Optional two hundred day average daily membership calculation
A school district governing board shall calculate its average daily membership on
the two hundredth day of instruction if the school district elects to provide two hundred
days of instruction. A school district that elects to provide two hundred days of
instruction may calculate its budget based on an estimated average daily membership and
may increase its base level by five per cent. A school district shall adjust its budget
for the budget year based on any discrepancies between the estimated average daily
membership for the previous year and the actual average daily membership on the two
hundredth day of instruction for the previous year. A school district that elects to
provide two hundred days of instruction shall ensure that the last day of instruction in
any school year occurs before June 30.
15-902 Determination of student count
A. For a common or a unified school district in which the average daily membership
through the first one hundred days or two hundred days in session, as applicable, of the
current year has exceeded the average daily attendance through the first one hundred days
or two hundred days in session, as applicable, of the current year by more than six per
cent, the student count shall be determined by an adjusted average daily membership
computed by multiplying the actual average daily attendance by one hundred six per cent.
B. For a high school district in which the average daily membership through the
first one hundred days in session of the current year exceeds the average daily
attendance through the first one hundred days in session of the current year by more than
eight and one-half per cent, the student count shall be determined by an adjusted average
daily membership computed by multiplying the actual average daily attendance by one
hundred eight and one-half per cent. If the high school district which utilized adjusted
average daily membership pursuant to this subsection does not qualify for equalization
assistance as provided by section 15-971, the computation of additional state aid for
education as provided in section 15-972 for that district shall not include in the
primary property tax rate the amount of primary property taxes necessary to fund an
amount computed as follows:
1. Determine the revenue control limit, capital outlay revenue limit and soft
capital allocation using the adjusted average daily membership.
2. Add the amounts determined in paragraph 1 of this subsection.
3. Determine the revenue control limit, capital outlay revenue limit and soft
capital allocation using a student count computed by multiplying the actual average daily
attendance by one hundred six per cent.
4. Add the amounts determined in paragraph 3 of this subsection.
5. Subtract the sum determined under paragraph 4 of this subsection from the sum
determined under paragraph 2 of this subsection.
C. A school district required to utilize adjusted average daily membership as
provided in this section may apply to the department of education for a further
adjustment if student absences result from any of the following reasons:
1. Widespread illness for any period of three consecutive days or more.
2. Adverse weather conditions for any period of three consecutive days or more.
3. Concerted refusal by students to attend classes for any period of three
consecutive days of more.
4. Threats of violence against school property, school personnel or students for
any period of one day or more.
D. All student absence figures shall be submitted by the school district on a
school by school basis to the department of education pursuant to subsection C of this
section and shall be certified by the governing board of the school district. The
department of education shall review the materials and documents submitted and may, if it
determines that the absences resulted from the reasons prescribed by this section,
further adjust the average daily membership figures of the school district.
E. A school district required to use adjusted average daily membership as provided
in this section may apply to the department of education for a further adjustment due to
absences of pupils with chronic health problems as defined in section 15-346 if the
school district is providing services to the pupils during their absence from school.
F. A pupil is enrolled if the pupil is currently registered in the school
district. In addition, the uniform system of financial records shall contain procedures
to ensure that enrollment is determined by all school districts on a uniform basis.
G. Any determination of average daily attendance and average daily membership shall
be based on the records of the superintendent of public instruction.
H. For school districts which maintain an approved year-round school year operation
program, an educational program offered on the basis of a four day school week or an
alternative kindergarten program offered on the basis of a three day school week, student
count shall be based on a computation as prescribed by the superintendent of public
instruction on the one hundred seventy-five days' equivalency or two hundred days'
equivalency, as applicable, of instructional time as approved by the superintendent of
public instruction during which each pupil is enrolled.
I. School districts shall be required to record electronically membership and
attendance on a school by school basis for each day school is in session. Records shall
be certified and forwarded to the department of education electronically within twelve
days after the first forty days in session and within twelve days after the first one
hundred days in session.
J. Absences shall be made part of the attendance record and shall be forwarded
electronically by the school district on a school by school basis with other records to
the department of education.
K. If a new school district is formed by the subdivision of an existing school
district as provided in section 15-458, the new school district shall determine its
student count, the approved daily route mileage and the number of eligible students
transported on the basis of where pupils reside within the boundaries of the new school
district when computing assistance as provided in this chapter. The school district
shall determine its student count, the approved daily route mileage and the number of
eligible students transported on the basis of where pupils reside within the diminished
boundaries of the school district when computing a school district budget limit and
assistance as provided in this chapter. The combined student count in the new districts
may not exceed the student count of the school district which would have existed if the
subdivision had not occurred.
15-903 Budget format; prohibited expenditures
A. The superintendent of public instruction in conjunction with the auditor general
shall prepare and prescribe a budget format to be utilized by all school districts on a
school by school basis.
B. The budget format shall be designed to allow all school districts to plan and
provide in detail for the use of available funds on a school by school basis, except that
the budget format shall not be required to provide details on a school by school basis in
fiscal years 2004-2005 and 2005-2006. The budget format shall contain distinct sections
for, but need not be limited to, maintenance and operation, debt service, special
projects, capital outlay, adjacent ways and classroom site fund. The maintenance and
operation section shall include, but need not be limited to, separate subsections for
regular education programs, special education programs and operational expenditures for
pupil transportation. Each subsection shall clearly distinguish classroom instruction
expenditures. The sections for individual schools shall only contain aggregate summaries
by major function for the maintenance and operation, unrestricted capital outlay and soft
capital allocation funds. A school district shall prepare budgets for each individual
school in the district and shall make these individual school budgets available to the
public on request. The special education program subsection shall include, but is not
limited to, programs for each disability classification as defined in section 15-761 and
programs for gifted, vocational and technological education, remedial education and
bilingual students. The total expenditures for each of these programs shall be included
on the budget form. The pupil transportation subsection shall include all operational
expenditures relating to the transportation of pupils, including all operational
expenditures within a contract if the school district contracts for pupil transportation.
C. The capital outlay section of the budget shall include separate subsections for
unrestricted capital outlay and soft capital allocation. The soft capital allocation
subsection shall include budgeted expenditures as prescribed in section 15-962. The
unrestricted capital outlay subsection shall include budgeted expenditures for
acquisitions by purchase, lease-purchase or lease of capital items as defined in the
uniform system of financial records. These sections and subsections shall include:
1. Land, buildings and improvements to land and buildings, including labor and
related employee benefits costs and material costs if work is performed by school
district employees.
2. Furniture, furnishings, athletic equipment and other equipment, including
computer software.
3. Pupil and nonpupil transportation vehicles and equipment, including all capital
expenditures within a contract if the school district contracts for pupil transportation.
4. Textbooks and related printed subject matter materials adopted by the governing
board.
5. Instructional aids.
6. Library books.
7. Payment of principal and interest on bonds.
8. School district administration emergency needs that are directly related to
pupils.
D. The budget format shall contain distinct subsections for the following:
1. Special programs to improve academic achievement of pupils in kindergarten
programs and grades one through three as provided in section 15-482.
2. School plant funds.
3. Capital outlay budget increases as provided in section 15-481.
4. Property taxation including the following:
(a) The primary tax rates for the school district for the current year and the
budget year.
(b) The secondary tax rates for maintenance and operation, K-3 and capital
overrides for the school district for the current year and the budget year.
(c) The secondary tax rates for class A bonds for the school district for the
current year and the budget year.
(d) The secondary tax rates for class B bonds for the school district for the
current year and the budget year.
5. A description of any corrections or adjustments made to the budget pursuant to
section 15-915.
E. The budget format shall also contain:
1. A statement identifying proposed pupil-teacher ratios and pupil-staff ratios
relating to the provision of special education services for the budget year.
2. A statement identifying the number of full-time equivalent certified employees.
3. If a governing board uses section 15-942 relating to the adjustment for rapid
decline in student count, a statement identifying the actual per cent decline in student
count and a statement identifying the additional allowable expenditures attributable to
using the rapid decline provisions as provided in section 15-942.
F. The special projects section shall include budgeted expenditures for state
special projects, including special adult projects, career education, deficiencies
correction fund projects, building renewal fund projects and new school facilities fund
projects, such federal special projects as ESEA title programs, vocational education and
title IV Indian education, and other special projects.
G. A school district shall not make expenditures for campaign literature associated
with school district or charter school officials. If the superintendent of public
instruction determines that a school district has violated this subsection, the
superintendent of public instruction may withhold any portion of the school district's
apportionment of state aid.
H. The budget format shall include an electronic format that shall be submitted for
each proposed, adopted and revised budget.
15-904 School district annual financial report; publication; summary; exemption
A. The governing board of each school district shall publish an annual financial
report on a school by school basis for the prior fiscal year by November 15, except that
the annual financial report shall not be required to include information on a school by
school basis in fiscal years 2004-2005 and 2005-2006. The auditor general in conjunction
with the department of education shall prescribe the format of the financial report to be
used by school districts. The financial report shall contain budgeted and actual
expenditures for the preceding fiscal year and shall be prepared and distributed by
October 15 by the school district with a copy to the county school superintendent. A copy
of the annual financial report shall be submitted electronically by the school district
to the superintendent of public instruction by October 15. The annual financial report
shall be approved by the county school superintendent in an electronic procedure as
prescribed by the department of education. School districts that are subject to section
15-914.01 are not required to send a copy to the county school superintendent.
B. In addition to the information required in subsection A of this section, the
annual financial report shall contain detailed information on the school district
budgeted and actual expenditures from the bond building fund, the soft capital allocation
fund, the deficiencies correction fund, the building renewal fund and the new school
facilities fund, including but not limited to information on classified salaries,
employee benefits, interest and fiscal charges, capital lease agreements, land and
improvements, buildings and improvements, furniture and equipment, technology and
vehicles and transportation equipment for pupils. The information shall specify whether
the expenditures are for school district renovation or for new construction, the cost per
square foot, and land acquisition costs, as appropriate. The reporting by individual
schools shall be limited to annual expenditures aggregated by major function for the
maintenance and operation, unrestricted capital outlay and soft capital allocation funds.
C. Except as provided in subsection D of this section, the governing board shall
publish, by November 15, the annual financial report for the school district on a school
by school basis in a newspaper of general circulation within the school district or in
the official newspaper of the county as defined in section 11-255 or the governing board
may mail the annual financial report to each household in the school district, except
that the annual financial report shall not be required to include information on a school
by school basis in fiscal years 2004-2005 and 2005-2006. If the governing board chooses
to publish the report in a newspaper, the size of the newspaper print shall be at least
eight-point type. The cost of publication or mailing shall be a charge against the
school district. The publisher's affidavit of publication shall be filed by the
governing board of the school district with the superintendent of public instruction
within thirty days after publication.
D. The governing board may publish(or mail a summary of the annual financial report
in the same manner as provided in subsection C of this section. The auditor general in
conjunction with the department of education shall prescribe the form of the summary of
the annual financial report for use by the governing boards.
E. The superintendent of public instruction shall compile the financial reports of
the school districts on a school by school basis and shall report to the governor and the
legislature on or before January 15 of each year as provided in section 15-255, except
that the financial reports shall not be required to include information on a school by
school basis in fiscal years 2004-2005 and 2005-2006.
15-905.01 Truth in taxation; calculation; notice and hearing; vote on tax increase
A. Each school district shall determine its truth in taxation base limit for
expenditures as follows:
1. Determine the amounts budgeted in fiscal year 1999-2000 for expenditures in the
following categories:
(a) Desegregation pursuant to section 15-910.
(b) Dropout prevention programs.
(c) Excess utilities pursuant to section 15-910.
(d) Career and technical education and vocational education center operations
pursuant to section 15-910.01.
(e) Small school adjustments pursuant to section 15-949.
2. The sum of the expenditures in paragraph 1 of this subsection for fiscal year
1999-2000 shall become the truth in taxation base limit.
3. For any year after fiscal year 1999-2000, a school district whose aggregate
budgeted expenditures for the expenditures prescribed in paragraph 1 of this subsection
exceed the truth in taxation base limit shall publish a truth in taxation hearing notice
that meets the requirements of subsection B of this section. If the amount exceeding the
previous truth in taxation base limit is approved by the school district governing board
following the hearing prescribed in subsection B of this section, the excess amount plus
the previous truth in taxation base limit becomes the school district's new truth in
taxation base limit.
4. If a school district no longer qualifies for one or more of the expenditures
prescribed in paragraph 1 of this subsection, the amount budgeted for the most recent
fiscal year in which the school district was eligible for that expenditure shall be
deducted from the school district's truth in taxation base limit.
B. For any fiscal year in which a school district governing board budgets an amount
that is higher than the truth in taxation base limit calculated pursuant to subsection A
of this section, any fiscal year in which a school district levies any amount for
adjacent ways pursuant to section 15-995 or any fiscal year in which the school district
levies any amount for liabilities in excess of the school district budget pursuant to
section 15-907:
1. The school district shall publish a notice that meets the following
requirements:
(a) The notice shall be published once in a newspaper of general circulation in the
school district. The publication shall be at least ten but not more than twenty days
before the date of the hearing.
(b) The notice shall be published in a location other than the classified or legal
advertising section of the newspaper in which it is published.
(c) The notice shall be at least one-fourth page in size and shall be surrounded by
a solid black border at least one-eighth inch in width.
(d) The notice shall be in the following form, excluding the parenthetical
explanations, and with the "truth in taxation hearing - notice of tax increase" headline
in at least eighteen point type:
Truth in Taxation Hearing
Notice of Tax Increase
In compliance with section 15-905.01, ARIZONA Revised Statutes,
_________ school district is notifying its property taxpayers of _________
school district's intention to raise its primary property taxes over the
current level to pay for increased expenditures in those areas where the
governing board has the authority to increase property taxes for the fiscal
year beginning July 1, ____. The _________ school district is proposing an
increase in its primary property tax levy of $_________ (amount of levy
increase to pay for truth in taxation base increase, the amount of the total
levy for the adjacent ways fund and amounts for liabilities in excess of the
school district budget pursuant to section 15-907).
The amount proposed above will cause _________ school district's primary
property taxes on a $100,000 home to increase from $_________ (the amount used
to pay for the current year's truth in taxation base limit [the amount divided
by the current net assessed value available February 10 pursuant to section
42-17052] applied to $100,000) to $____________ (the amount used to pay for
the budget year's proposed truth in taxation base limit and adjacent ways
levy, including adjacent ways and liabilities in excess of the school district
budget [the amount divided by the current net assessed value available
February 10 pursuant to section 42-17052] applied to $100,000).
These amounts proposed are above the qualifying tax levies as prescribed
by state law, if applicable. The increase is also exclusive of any changes
that may occur from property tax levies for voter approved bonded indebtedness
or budget and tax overrides.
All interested citizens are invited to attend the public hearing on the
proposed tax increase scheduled to be held _________ (date and time) at
_________ (location).
2. In lieu of publishing the truth in taxation notice, the governing board may mail
the truth in taxation notice prescribed by paragraph 1, subdivision (d) of this
subsection to all registered voters in the district at least ten but not more than twenty
days before the date of the hearing.
3. In addition to publishing the truth in taxation notice under paragraph 1 of this
subsection or mailing the notice under paragraph 2 of this subsection, the governing
board shall issue a press release containing the truth in taxation notice to all
newspapers of general circulation in the school district.
4. The governing board shall consider a motion to levy the increased property taxes
by roll call vote.
5. Within three days after the hearing, the governing board shall mail a copy of
the truth in taxation notice, a statement of its publication or mailing and the result of
the governing board's vote under paragraph 4 of this subsection to the property tax
oversight commission established by section 42-17002.
6. The governing board shall hold the truth in taxation hearing on or before the
adoption of the school district budget under section 15-905.
7. Expenditures for adjacent ways and liabilities in excess of the school district
budget do not become part of the school district's truth in taxation base limit.
C. The department of education shall maintain a listing of each school district's
truth in taxation base limit and shall verify the accuracy of the school district's
computations. A school district governing board shall notify the department of education
of any change in the district's truth in taxation base limit.
D. The department of education shall develop a budget form for school districts to
show the primary tax rate associated for each of the expenditure categories mentioned in
subsection A, paragraph 1 of this section and for expenditures for adjacent ways pursuant
to section 15-995 or any other expenditure in excess of the school district budget
pursuant to section 15-907. A school district shall make this information available to
the general public at truth in taxation hearings and shall submit the information to the
department of education. 15-905 School district budgets; notice; adoption; aggregate budget limit; summary; adjustments; definition
A. Not later than July 5 of each year or no later than the publication of notice of
the public hearing and board meeting as required by this section, the governing board of
each school district shall prepare and furnish to the superintendent of public
instruction and the county school superintendent, unless waived by the county school
superintendent, a proposed budget in electronic format for the budget year, which shall
contain the information and be in the form as provided by the department of education.
The proposed budget shall include the following:
1. The total amount of revenues from all sources that was necessary to meet the
school district's budget for the current year.
2. The total amount of revenues by source that will be necessary to meet the
proposed budget of the school district, excluding property taxes. The governing board
shall prepare the proposed budget and a summary of the proposed budget. Both documents
shall be kept on file at the school district office and shall be made available to the
public upon request. The auditor general in conjunction with the department of education
shall prescribe the form of the summary of the proposed budget for use by governing
boards. School district governing boards may include in the proposed budget any items or
amounts which are authorized by legislation filed with the secretary of state and which
will become effective during the budget year. If subsequent events prevent the
legislation from becoming effective, school district governing boards must reduce their
budgets by the amounts budgeted pursuant to the legislation which did not become
effective.
B. The governing board of each school district shall prepare a notice fixing a time
not later than July 15 and designating a public place within each school district at
which a public hearing and board meeting shall be held. The governing board shall
present the proposed budget for consideration of the residents and the taxpayers of the
school district at such hearing and meeting.
C. The governing board of each school district shall publish or mail, prior to the
hearing and meeting, a copy of the proposed budget or the summary of the proposed budget
and, in addition, a notice of the public hearing and board meeting no later than ten days
prior to the meeting. The proposed budget and the summary of the proposed budget shall
contain the percentage of increase or decrease in each budget category of the proposed
budget as compared to each category of the budget for the current year. Notification
shall be either by publication in a newspaper of general circulation within the school
district in which the size of the newspaper print shall be at least eight-point type, by
electronic transmission of the information to the department of education for posting on
the department's web site or by mailing the information to each household in the school
district. The cost of publication, web site posting or mailing shall be a charge against
the school district. The publisher's affidavit of publication shall be filed by the
governing board with the superintendent of public instruction within thirty days after
publication. If the budget or proposed budget and notice are posted on a web site
maintained by the department of education or mailed, the board shall file an affidavit
with the superintendent of public instruction within thirty days after the mailing or the
date that the information is posted on the web site. If a truth in taxation notice and
hearing is required under section 15-905.01, the governing board may combine the notice
and hearing under this section with the truth in taxation notice and hearing.
D. At the time and place fixed in the notice, the governing board shall hold the
public hearing and present the proposed budget to the persons attending the
hearing. Upon request of any person, the governing board shall explain the budget, and
any resident or taxpayer of the school district may protest the inclusion of any item. A
governing board member who has a substantial interest, as defined in section 38-502, in a
specific item in the school district budget shall refrain from voting on the specific
item. A governing board member may without creating a conflict of interest participate
in adoption of a final budget even though the member may have substantial interest in
specific items included in the budget.
E. Immediately following the public hearing the president shall call to order the
governing board meeting for the purpose of adopting the budget. The governing board
shall adopt the budget which shall not exceed the general budget limit, the unrestricted
capital budget limit or the soft capital allocation limit, making such deductions as it
sees fit but making no additions to the proposed budget total for maintenance and
operations or capital outlay, and shall enter the budget as adopted in its minutes. Not
later than July 18, the budget as finally adopted shall be filed by the governing board
with the county school superintendent who shall immediately transmit a copy to the board
of supervisors. Not later than July 18, the budget as finally adopted shall be submitted
electronically to the superintendent of public instruction. On or before October 30, the
superintendent of public instruction shall review the budget and notify the governing
board if the budget is in excess of the general budget limit, the unrestricted capital
budget limit or the soft capital allocation limit. If the governing board receives
notification that the budget is in excess of the general budget limit, the unrestricted
capital budget limit or the soft capital allocation limit by fewer than one thousand
dollars, the governing board shall adjust the budget and expenditures so as not to exceed
the general budget limit, the unrestricted capital budget limit or the soft capital
allocation limit for the current year. If the governing board receives notification that
the budget is in excess of the general budget limit, the unrestricted capital budget
limit or the soft capital allocation limit by one thousand dollars or more, it shall on
or before December 15, after it gives notice and holds a public meeting in a similar
manner as provided in subsections C and D of this section, adopt a revised budget for the
current year which shall not exceed the general budget limit, the unrestricted capital
budget limit or the soft capital allocation limit. On or before December 18, the
governing board shall file the revised budget which it adopts with the county school
superintendent who shall immediately transmit a copy to the board of supervisors. Not
later than December 18, the budget as revised shall be submitted electronically to the
superintendent of public instruction. School districts that are subject to section
15-914.01 are not required to send a copy of revised budgets to the county school
superintendent. Procedures for adjusting expenditures or revising the budget shall be as
prescribed in the uniform system of financial records.
F. The governing board of each school district may budget for expenditures within
the school district budget as follows:
1. Amounts within the general budget limit, as provided in section 15-947,
subsection C, may only be budgeted in the following sections of the budget:
(a) The maintenance and operation section.
(b) The capital outlay section.
2. Amounts within the unrestricted capital budget limit, as provided in section
15-947, subsection D, may only be budgeted in the unrestricted capital outlay subsection
of the budget. Monies received pursuant to the unrestricted capital budget limit shall be
placed in the unrestricted capital outlay fund. The monies in the fund are not subject
to reversion.
3. The soft capital allocation limit, as provided in section 15-947, subsection E,
may only be budgeted in the soft capital allocation subsection of the budget.
G. The governing board may authorize the expenditure of monies budgeted within the
maintenance and operation section of the budget for any subsection within the section in
excess of amounts specified in the adopted budget only by action taken at a public
meeting of the governing board and if the expenditures for all subsections of the section
do not exceed the amount budgeted as provided in this section. Until June 30, 1999, the
governing board may authorize the expenditure of monies to exceed the budgeted
expenditures of the capital outlay section of the budget only by action taken at a public
meeting of the governing board and if monies are available in the reserve.
H. The aggregate budget limit is the sum of the following:
1. The general budget limit as determined in section 15-947 for the budget year.
2. The unrestricted capital budget limit as determined in section 15-947 for the
budget year.
3. The soft capital allocation limit for the budget year as determined in section
15-947.
4. Federal assistance, excluding P.L. 81-874 monies.
I. School districts which overestimated tuition revenues as provided in section
15-947, subsection C, paragraph 2 shall adjust the general budget limit and expenditures
based upon tuition revenues for attendance of nonresident pupils during the current
fiscal year. School districts which underestimated tuition revenues may adjust their
budgets prior to May 15 based upon tuition revenues for attendance of nonresident pupils
during the current fiscal year. School districts which overestimated revenues as provided
in section 15-947, subsection C, paragraph 2, subdivision (a), items (iii), (iv) and (v)
and subdivision (d) shall adjust the general budget limit and expenditures based on
actual revenues during the current fiscal year. School districts which underestimated
such revenues may adjust their budgets before May 15 based on actual revenues during the
current fiscal year. Procedures for completing adjustments shall be as prescribed in the
uniform system of financial records. Not later than May 18, the budget as adjusted shall
be submitted electronically to the superintendent of public instruction.
J. A common school district not within a high school district whose estimated
tuition charge for high school pupils exceeds the actual tuition charge for high school
pupils shall adjust the general budget limit and expenditures based on the actual tuition
charge. Not later than May 18, the budget as adjusted shall be submitted electronically
to the superintendent of public instruction. A common school district not within a high
school district whose estimated tuition charge for high school pupils is less than the
actual tuition charge for high school pupils may adjust its budget before May 15 based on
the actual tuition charge. Procedures for completing adjustments shall be as prescribed
in the uniform system of financial records. If the adjusted general budget limit
requires an adjustment of state aid and if the adjustment to state aid is not made in the
current year, the superintendent of public instruction shall adjust by August 15 of the
succeeding fiscal year the apportionment of state aid to the school district to correct
any overpayment or underpayment of state aid received during the current year.
K. The governing board may include P.L. 81-874 assistance allocated for children
with disabilities, children with specific learning disabilities and children residing on
Indian lands which is in addition to basic assistance when determining the general budget
limit as prescribed in section 15-947, subsection C. The governing board may adjust
before May 15 the budget for the current year based on any adjustments which result in
increases over the amount estimated by the superintendent of public instruction for P.L.
81-874 assistance for such pupils for the fiscal year preceding the current year. The
governing board shall adjust before May 15 the budget for the current year based on any
adjustments which result in decreases in the amount estimated by the superintendent of
public instruction for P.L. 81-874 assistance for such pupils for the fiscal year
preceding the current year. Not later than May 18, the budget as adjusted shall be
submitted electronically to the superintendent of public instruction. Procedures for
complying with the provisions of this subsection shall be as prescribed in the uniform
system of financial records.
L. The state board of education shall hold a hearing if expenditures by any school
district exceed the general budget limit prescribed in section 15-947, subsection C, the
unrestricted capital budget limit, the soft capital allocation limit prescribed in
section 15-947, subsection E, the school plant fund limits prescribed in section 15-1102,
subsection B, the maintenance and operation section of the budget or the capital outlay
section of the budget. If the expenditures of any school district exceed these limits or
sections of the budget without authorization as provided in section 15-907, the state
board of education shall reduce the state aid for equalization assistance for education
for the school district computed as provided in section 15-971 during the fiscal year
subsequent to the fiscal year in which the excess expenditures were made by an amount
equal to the excess expenditures, except that in case of hardship to the school district,
the superintendent of public instruction may approve reductions partly in the first
subsequent year and partly in the second subsequent year.
M. The governing board of a school district shall reduce the general budget limit,
the unrestricted capital budget limit or the soft capital allocation limit, for the year
subsequent to the year in which the expenditures were in excess of the applicable limit
or section of the budget by the amount determined in subsection L of this section, except
that in case of hardship to the school district, the superintendent of public instruction
may approve reductions partly in the first subsequent year and partly in the second
subsequent year. The reduction in the limit is applicable to each school district which
has exceeded the general budget limit, the unrestricted capital budget limit, the soft
capital allocation limit or a section of the budget even if the reduction exceeds the
state aid for equalization assistance for education for the school district.
N. Except as provided in section 15-916, no expenditure shall be made by any school
district for a purpose not included in the budget or in excess of the aggregate budget
limit prescribed in this section, except that if no budget has been adopted, from July 1
to July 15 the governing board may make expenditures if the total of the expenditures
does not exceed ten per cent of the prior year's aggregate budget limit. Any expenditures
made from July 1 to July 15 and prior to the adoption of the budget shall be included in
the total expenditures for the current year. No expenditure shall be made and no debt,
obligation or liability shall be incurred or created in any year for any purpose itemized
in the budget in excess of the amount specified for the item irrespective of whether the
school district at any time has received or has on hand funds in excess of those required
to meet the expenditures, debts, obligations and liabilities provided for under the
budget except expenditures from cash controlled funds as defined by the uniform system of
financial records and except as provided in section 15-907 and subsection G of this
section. This subsection does not prohibit any school district from prepaying insurance
premiums or magazine subscriptions, or from prepaying any item which is normally prepaid
in order to procure the service or to receive a discounted price for the service, as
prescribed by the uniform system of financial records.
O. The governing board of a school district which is classified as a heavily
impacted school district having twenty per cent or more pupils pursuant to 20 United
States Code section 238(d)1(A) may determine its eligibility to increase the amount that
may be included in determining the general budget limit as provided in subsection K of
this section and may increase the amount as follows:
1. For fiscal year 1988-1989:
(a) Multiply one thousand ninety-four dollars by the number of children with
disabilities or children with specific learning disabilities, excluding children who also
reside on Indian lands, reported to the division of impact aid, United States department
of education in the district's application for fiscal year 1987-1988.
(b) Multiply five hundred forty-seven dollars by the number of children residing on
Indian lands, excluding children who have disabilities or also have specific learning
disabilities, reported to the division of impact aid, United States department of
education in the district's application for fiscal year 1987-1988.
(c) Multiply one thousand nine hundred fourteen dollars by the number of children
residing on Indian lands who have disabilities or also have specific learning
disabilities reported to the division of impact aid, United States department of
education in the district's application for fiscal year 1987-1988.
(d) Add the amounts determined in subdivisions (a) through (c).
(e) If the amount of P.L. 81-874 assistance as provided in subsection K of this
section is less than the sum determined in subdivision (d) of this paragraph, the
district is eligible to use the provisions of this subsection.
2. For budget years after 1988-1989, use the provisions of paragraph 1 of this
subsection, but increase each dollar amount by the growth rate for that year as
prescribed by law, subject to appropriation and use the number of children reported in
the appropriate category for the current fiscal year.
3. If the district is eligible to use the provisions of this subsection, subtract
the amount of P.L. 81-874 assistance determined in subsection K of this section from the
sum determined in paragraph 1, subdivision (d) of this subsection. The difference is the
increase in the amount that may be included in determining the general budget limit as
provided in subsection K of this section, if including this amount does not increase the
district's primary tax rate for the budget year. If the amount of P.L. 81-874 assistance
determined in subsection K of this section is adjusted for the current year, the increase
determined in this paragraph shall be recomputed using the adjusted amount and the
recomputed increase shall be reported to the department of education by May 15 on a form
prescribed by the department of education.
4. If a district uses the provisions of this subsection, the district is not
required to adjust its budget for the current year based on adjustments in the estimated
amount of P.L. 81-874 assistance as provided in subsection K of this section.
P. A school district, except for an accommodation school, which applies for P.L.
81-874 assistance during the current year may budget an amount for P.L. 81-874
administrative costs for the budget year. The amount budgeted for P.L. 81-874
administrative costs is exempt from the revenue control limit and may not exceed an
amount determined for the budgeted year as follows:
1. Determine the minimum cost. The minimum cost for fiscal year 1990-1991 is two
thousand three hundred forty-three dollars. For fiscal year 1991-1992 and thereafter, the
minimum cost is the minimum cost for the prior year increased by the growth rate as
prescribed by law, subject to appropriation.
2. Determine the hourly rate. The hourly rate for fiscal year 1990-1991 is nine
dollars thirty-eight cents. For fiscal year 1991-1992 and thereafter, the hourly rate is
the hourly rate for the prior year increased by the growth rate as prescribed by law,
subject to appropriation.
3. Determine the P.L. 81-874 revenues available by subtracting the amount of P.L.
81-874 assistance used to increase the general budget limit as provided in subsections K
and O of this section for the current fiscal year from the total amount of P.L. 81-874
revenues received in the current fiscal year.
4. Determine the total number of administrative hours as follows:
(a) Determine the sum of the following:
(i) 1.00 hours for each high impact pupil who is not disabled or does not have
specific learning disabilities.
(ii) 1.25 hours for each high impact pupil who is disabled or has specific learning
disabilities.
(iii) 0.25 hours for each low impact pupil who is not disabled or does not have
specific learning disabilities.
(iv) 0.31 hours for each low impact pupil who is disabled or has specific learning
disabilities.
(b) For the purposes of this paragraph:
(i) "High impact pupil" means a pupil who resides on Indian lands or a pupil who
resides on federal property or in low rent housing and whose parent is employed on
federal property or low rent housing property or is on active duty in uniformed service,
as provided in P.L. 81-874, section 3(a) and as reported in the application for P.L.
81-874 assistance in the current year.
(ii) "Low impact pupil" means a pupil who resides on nonfederal property and has a
parent who is employed on federal property or low rent housing property or is on active
duty in a uniformed service or a pupil who resides on federal property or in low rent
housing and who does not have a parent who is employed on federal property or low rent
housing property or is on active duty in uniformed service, as provided in P.L. 81-874,
section 3(b) and as reported in the application for P.L. 81-874 assistance in the current
year.
5. Multiply the total number of administrative hours determined in paragraph 4 of
this subsection by the hourly rate determined in paragraph 2 of this subsection.
6. Determine the greater of the minimum cost determined in paragraph 1 of this
subsection or the product determined in paragraph 5 of this subsection.
7. Add to the amount determined in paragraph 6 of this subsection the amount, if
any, to be expended by the school district in the budget year through an
intergovernmental agreement with other school districts or the department of education to
provide P.L. 81-874 technical assistance to participating districts.
8. Determine the lesser of the amount determined in paragraph 7 of this subsection
or the revenues available as determined in paragraph 3 of this subsection.
9. The amount determined in paragraph 8 of this subsection is the maximum amount
which may be budgeted for P.L. 81-874 administrative costs for the budget year as
provided in this subsection.
10. If the governing board underestimated the amount that may be budgeted for P.L.
81-874 administrative costs for the current year, the board may adjust the general budget
limit and the budget before May 15. If the governing board overestimated the amount that
may be budgeted for P.L. 81-874 administrative costs for the current year, the board
shall adjust the general budget limit and the budget before May 15.
Q. If a school district governing board has adopted a budget for a fiscal year
based on forms and instructions provided by the auditor general and the department of
education for that fiscal year and if, as a result of the enactment or nonenactment of
proposed legislation after May 1 of the previous fiscal year, the budget is based on
incorrect limits, does not include items authorized by law or does not otherwise conform
with law, the governing board may revise its budget at a public hearing on or before
September 15 to conform with the law. Not later than September 18, the budget as adjusted
shall be submitted electronically to the superintendent of public instruction. If the
governing board does not revise the budget on or before September 15 and if the budget
includes any items not authorized by law or if the budget exceeds any limits, the
governing board shall adjust or revise the budget as provided in subsection E of this
section.
R. For the purposes of this section, "P.L. 81-874 assistance" means, for the
current year, an amount equal to the final determination of P.L. 81-874 assistance for
the fiscal year preceding the current year as confirmed by the division of impact aid,
United States department of education or, if a final determination has not been made, the
amount estimated by the superintendent of public instruction as confirmed by the division
of impact aid, United States department of education and, for the budget year, an amount
equal to the determination of P.L. 81-874 assistance for the fiscal year preceding the
budget year as estimated by the superintendent of public instruction. 15-906 Procedure for payment of levy fund liabilities payable on June 30; lapsing of levy funds with balance for reduction of taxes
A. Annually on or before June 30, each school district shall prepare for all levy
funds a list of liabilities for goods received or services rendered on or before June 30
which will not be paid by June 30 of the current fiscal year.
B. Each school district having levy fund liabilities payable on June 30 shall file
an advice of encumbrance with the county school superintendent on or before July 18, in
the manner and upon a form to be prescribed in the uniform system of financial
records. The county school superintendent shall encumber amounts that are included in
year to date expenditures not to exceed the budget and that are available to pay the
liabilities pursuant to section 15-304. Any cash balances remaining in the maintenance
and operation, the unrestricted capital outlay, the soft capital allocation and the
adjacent ways funds after encumbrances on June 30 of the current year except reverted
monies as provided in section 15-991.02 that will be budgeted in the unrestricted capital
outlay fund in the following fiscal year pursuant to section 15-947, subsection D,
paragraphs 4 and 5 and that will be budgeted in the soft capital allocation fund in the
following fiscal year pursuant to section 15-947, subsection E, paragraphs 2 and 3 shall
be used for reduction of school district taxes for the budget year.
C. The county school superintendent may draw warrants against the obligated in
contract amounts pursuant to subsection B of this section for a period of sixty days
immediately following the close of the fiscal year.
D. After expiration of the period of sixty days immediately following the close of
each fiscal year, the remaining obligated in contract balance shall lapse and no further
payments from the maintenance and operation, unrestricted capital outlay, soft capital
allocation and adjacent ways funds shall be made on any claim for expenditures of the
prior fiscal year.
E. School districts that are subject to section 15-914.01 shall adhere to the
duties described in section 15-304 for the purposes of this section.
15-907 Incurring liabilities in excess of school district budget; petition; approval; procedure for expenditures
A. In the event of excessive and unexpected legal expenses or for an emergency for
which the school district did not receive funding from the school facilities board
pursuant to section 15-2022 because there were insufficient monies in the emergency
deficiencies correction fund, the governing board of the school district may petition the
county school superintendent, or in the case of an accommodation school, the county
school superintendent may petition the county board of supervisors, requesting authority
to incur liabilities in excess of the school district budget, in an amount the governing
board deems necessary. The governing board of the school district shall follow the
procedures for the truth in taxation notice and hearing prescribed in section 15-905.01,
subsection B.
B. The county school superintendent shall forward the petition together with the
superintendent's recommendation and a copy of the budget of the school district to the
board of supervisors.
C. The board of supervisors shall hold a hearing on the petition within twenty days
after receipt and shall determine whether the petition shall be allowed, allowed after
revision or denied.
D. If the petition is allowed in whole or in part, the governing board shall be
authorized to incur liabilities in accordance with the petition, and a copy of the order
of the board of supervisors authorizing the incurring of such liabilities shall be filed
with the county school superintendent. The county school superintendent, upon
presentation of proper vouchers, shall draw warrants against the additional
allowance. Any liability so incurred shall be in addition to the aggregate budget
estimate of the school district for the succeeding year.
E. The portion of the primary tax rate to fund these liabilities in excess of the
school district budget as provided in this section shall not be included in the
computation of additional state aid for education prescribed in section 15-972.
15-908 Revenue control limit for school district after consolidation
A resulting school district after consolidation of a school district and unorganized
territory or areas within another school district as provided in section 15-459,
subsection H or section 15-460, subsection A shall compute its allowable revenue control
limit for the first budget year as follows:
1. Divide the allowable revenue control limit for the budget year of the school
district prior to consolidation by the student count for the school district for the
budget year.
2. Multiply the quotient obtained in paragraph 1 of this section by the student
count of the resulting school district for the budget year. The product is the revenue
control limit of the resulting school district in the first budget year.
3. The student count used for unorganized territory is the student count of pupils
who resided in the unorganized territory prior to consolidation.
15-909 Financial provisions for accommodation schools; definition
A. An accommodation school shall compute a revenue control limit, a capital outlay
revenue limit and a soft capital allocation limit for each fiscal year of operation.
B. For the purpose of computing a revenue control limit, a capital outlay revenue
limit and a soft capital allocation limit, "accommodation school" means:
1. A common school district within a high school district if the school does not
offer instruction in grade nine, ten, eleven or twelve or has not received permission to
offer instruction in high school subjects as provided in section 15-447.
2. A unified school district if the school offers instruction in grade nine, ten,
eleven or twelve and has received permission to offer instruction in high school subjects
as provided in section 15-447.
C. State aid shall be apportioned as provided in section 15-973 to each county
accommodation school.
15-910.01 School district budgets; career and technical education and vocational education center expenses
A. The governing board of a school district which has entered into an
intergovernmental agreement to establish a jointly owned and operated career and
technical education and vocational education center as provided in section 15-789 may
budget for vocational maintenance and operation expenses which are specifically exempt in
whole or part from the revenue control limit for a period of not to exceed three years
beginning the first year that the career and technical education and vocational education
center is operating and serving students. The governing board shall notify the state
board of education before adopting a budget as provided in this section for the first
year of operation of the career and technical education and vocational education center
to demonstrate that the center is ready to begin operations.
B. For each year that a school district is authorized to budget for a joint career
and technical education and vocational education center as provided in this section, the
district shall determine the budget amount as follows:
1. Estimate the average daily membership or adjusted average daily membership for
the budget year of students to be enrolled in courses held at the joint career and
technical education and vocational education center pursuant to sections 15-901 and
15-902.
2. Multiply 0.142 by the base level and multiply this product by the average daily
membership or adjusted average daily membership as determined in paragraph 1 of this
subsection.
C. Before May 15, school districts which overestimate the average daily membership
as provided in subsection B, paragraph 1 of this section shall adjust the general budget
limit and expenditures based on the actual average daily membership during the current
fiscal year. School districts which underestimate the average daily membership may
adjust their budgets before May 15 based on the actual average daily membership during
the current fiscal year. Procedures for completing adjustments shall be prescribed in
the uniform system of financial records. Not later than May 18, the budget as revised
shall be submitted electronically to the superintendent of public instruction.
D. A governing board which budgets for career and technical education and
vocational education center expenses pursuant to this section shall:
1. Prepare and employ a separate maintenance and operation budget for the career
and technical education and vocational education center on a form prescribed by the
superintendent of public instruction in conjunction with the auditor general. The budget
format shall be designed to allow a school district to plan and provide in detail for
expenditures to be incurred solely for the maintenance and operation of the career and
technical education and vocational education center.
2. Prepare as a part of the annual financial report a detailed report of
expenditures incurred solely for the maintenance and operation of the career and
technical education and vocational education center.
E. The part of the primary tax rate set to fund the vocational maintenance and
operations expenses as provided in this section shall not be included in the computation
of additional state aid for education as prescribed in section 15-972.
15-910.03 Excess utilities; funding plan; review
(Rpld. 7/1/10)
A. Beginning July 1, 2005, each school district that budgets for excess utilities
shall annually develop, adopt and certify a plan at the same public meeting where the
school district budget is proposed and adopted containing the following information:
1. A review and summary for each fiscal year since fiscal year 1999-2000 that
includes the expenditures for the direct operational costs of each of the following that
are contained within the revenue control limit and of the excess utilities budget outside
the revenue control limit:
(a) Heating.
(b) Cooling.
(c) Water.
(d) Electricity.
(e) Telephone communications.
(f) Sanitation fees.
2. A review and summary that includes the current year budget, the current year
estimated expenditures and the proposed budget for the direct operational costs of each
of the following that are contained within the revenue control limit and of the excess
utilities budget outside the revenue control limit:
(a) Heating.
(b) Cooling.
(c) Water.
(d) Electricity.
(e) Telephone communications.
(f) Sanitation fees.
3. A per pupil cost for the total expenditures for the direct operational costs
that are contained within the revenue control limit and a per pupil cost for the total
expenditures for the direct operational costs that are part of the excess utilities
budget outside the revenue control limit as prescribed in paragraphs 1 and 2.
4. A review and summary of specific financial goals to enable the school district
to pay for all utility costs within the revenue control limit on or before June 30, 2009
as approved by the voters of this state in the referendum designated as proposition 301
at the 2000 general election.
5. A review of the district's plan to ensure that the school district is making
progress toward the achievement of the financial goals prescribed in paragraph 4.
B. Each school district shall annually submit a copy of the plan prescribed in
subsection A to the department of education on or before July 18.
C. The department of education shall prepare and submit an annual report on or
before December 1 to the joint legislative budget committee containing a summary of the
school district plans and costs per pupil as prescribed in subsection A. The department
of education shall include in the report a list of school districts that budgeted for
excess utilities but that did not submit a plan pursuant to this section. 15-910 School district budgets; excess utility costs; desegregation costs; tuition costs for bond issues; costs for registering warrants; report
A. The governing board may budget for the district's excess utility costs which are
specifically exempt from the district's revenue control limit. If approved by the
qualified electors voting at a statewide general election, the exemption from the revenue
control limit under this subsection expires at the end of the 2008-2009 budget year. The
uniform system of financial records shall specify expenditure items allowable as excess
utility costs, which are limited to direct operational costs of heating, cooling, water
and electricity, telephone communications and sanitation fees. The department of
education and the auditor general shall include in the maintenance and operation section
of the budget format, as provided in section 15-903, a separate line for utility
expenditures and a special excess utility cost category. The special excess utility cost
category shall contain budgeted expenditures for excess utility costs, determined as
follows:
1. Determine the lesser of the total budgeted or total actual utility expenditures
for fiscal year 1984-1985.
2. Multiply the amount in paragraph 1 of this subsection by the total percentage
increase or decrease in the revenue control limit and the capital outlay revenue limit
for the budget year over the revenue control limit and the capital outlay revenue limit
for fiscal year 1984-1985 excluding monies available from a career ladder program or a
teacher compensation program provided for in section 15-952.
3. The sum of the amounts in paragraphs 1 and 2 of this subsection is the amount
budgeted in the utility expenditure line.
4. Additional expenditures for utilities are budgeted in the excess utility cost
category.
B. The governing board shall apply the same percentage increase or decrease allowed
in the revenue control limit and the capital outlay revenue limit as provided in section
15-905, subsection E or section 15-948 to the utility expenditure line of the budget.
C. The governing board may expend from the excess utility cost category only after
it has expended for utility purposes the full amount budgeted in the utility expenditure
line of the budget.
D. The governing board, after notice is given and a public meeting is held as
provided in section 15-905, subsection D, may revise at any time before May 15 the amount
budgeted in the excess utility cost category for the current year. Not later than May 18,
the budget as revised shall be submitted electronically to the superintendent of public
instruction.
E. If the revised excess utility cost category results in an expenditure of monies
in excess of school district revenues for the current year, the county school
superintendent shall include within the revenue estimate for the budget year monies
necessary to meet the liabilities incurred by the school district in the current year in
excess of revenues received for the current year.
F. If a school district receives a refund of utility expenditures or a rebate on
energy saving devices or services, the refund or rebate shall be applied against utility
expenditures for the current year as a reduction of the expenditures, except that the
reduction of expenditures shall not exceed the amount of actual utility expenditures.
G. The governing board may budget for expenses of complying with or continuing to
implement activities which were required or permitted by a court order of desegregation
or administrative agreement with the United States department of education office for
civil rights directed toward remediating alleged or proven racial discrimination which
are specifically exempt in whole or in part from the revenue control limit and the
capital outlay revenue limit. This exemption applies only to expenses incurred for
activities which are begun before the termination of the court order or administrative
agreement.
H. If a governing board chooses to budget monies outside of the revenue control
limit as provided in subsection G of this section, the governing board may do one of the
following:
1. Use monies from the maintenance and operation fund equal to any excess
desegregation or compliance expenses beyond the revenue control limit before June 30 of
the current year.
2. Notify the county school superintendent to include the cost of the excess
expenses in the county school superintendent's estimate of the additional amount needed
for the school district from the primary property tax as provided in section 15-991.
3. Employ the provisions of both paragraphs 1 and 2 of this subsection provided
that the total amount transferred and included in the amount needed from property taxes
does not exceed the total amount budgeted as prescribed in subsection J, paragraph 1 of
this section.
I. Through fiscal year 2003-2004, the maximum amount which a governing board may
budget outside of the capital outlay revenue limit as provided in subsection G of this
section is twelve per cent of the maintenance and operation desegregation budget as
provided in subsection J of this section or the amount that it budgeted pursuant to this
subsection for fiscal year 2001-2002, whichever is less. If a governing board chooses to
budget monies outside of the capital outlay revenue limit as provided in subsection G of
this section, the governing board may notify the county school superintendent to include
the cost of the excess expenses in the county school superintendent's estimate of the
additional amount needed for the school district from the primary property tax as
provided in section 15-991.
J. A governing board using subsections G, H and I of this section:
1. Shall prepare and employ a separate maintenance and operation desegregation
budget and capital outlay desegregation budget on a form prescribed by the superintendent
of public instruction in conjunction with the auditor general. The budget format shall be
designed to allow a school district to plan and provide in detail for expenditures to be
incurred solely as a result of compliance with or continuing to implement activities
which were required or permitted by a court order of desegregation or administrative
agreement with the United States department of education office for civil rights directed
toward remediating alleged or proven racial discrimination.
2. Shall prepare as a part of the annual financial report a detailed report of
expenditures incurred solely as a result of compliance with or continuing to implement
activities which were required or permitted by a court order of desegregation or
administrative agreement with the United States department of education office for civil
rights directed toward remediating alleged or proven racial discrimination, in a format
prescribed by the auditor general in conjunction with the department of education as
provided by section 15-904.
3. On or before July 15, 2006 and each year thereafter, shall collect and report
data regarding activities related to a court order of desegregation or an administrative
agreement with the United States department of education office for civil rights directed
toward remediating alleged or proven racial discrimination in a format prescribed by the
department of education. The department shall compile and submit copies of the reports to
the governor, the president of the senate, the speaker of the house of representatives
and the chairpersons of the education committees of the senate and the house of
representatives. A school district that becomes subject to a new court order of
desegregation or a party to an administrative agreement with the United States department
of education office for civil rights directed toward remediating alleged or proven racial
discrimination shall submit these reports on or before July 15 or within ninety days of
the date of the court order or administrative agreement, whichever occurs first. The
department of education, in consultation with the auditor general, shall develop
reporting requirements to ensure that school districts submit at least the following
information and documentation to the department of education beginning in fiscal year
2006-2007:
(a) A district-wide budget summary and a budget summary on a school by school basis
for each school in the school district that lists the sources and uses of monies that are
designated for desegregation purposes.
(b) A detailed list of desegregation activities on a district-wide basis and on a
school by school basis for each school in the school district.
(c) The date that the school district was determined to be out of compliance with
title VI of the civil rights act of 1964 (42 United States Code section 2000d) and the
basis for that determination.
(d) The initial date that the school district began to levy property taxes to
provide funding for desegregation expenses and any dates that these property tax levies
were increased.
(e) If applicable, a current and accurate description of all magnet type programs
that are in operation pursuant to the court order during the current school year on a
district-wide basis and on a school by school basis. This information shall contain the
eligibility and attendance criteria of each magnet type program, the capacity of each
magnet type program, the ethnic composition goals of each magnet type program, the actual
attending ethnic composition of each magnet type program and the specific activities
offered in each magnet type program.
(f) The number of pupils who participate in desegregation activities on a
district-wide basis and on a school by school basis for each school in the school
district.
(g) A detailed summary of the academic achievement of pupils on a district-wide
basis and on a school by school basis for each school in the school district.
(h) The number of employees, including teachers and administrative personnel, on a
district-wide basis and on a school by school basis for each school in the school
district that are necessary to conduct desegregation activities.
(i) The number of employees, including teachers and administrative personnel, on a
district-wide basis and on a school by school basis for each school in the school
district and the number of employees at school district administrative offices that are
funded in whole or in part with desegregation monies received pursuant to this section.
(j) The amount of monies that are not derived through a primary or secondary
property tax levy and that are budgeted and spent on desegregation activities on a
district-wide basis and on a school by school basis for each school in the school
district.
(k) Verification that the desegregation funding will supplement and not supplant
funding for other academic and extracurricular activities.
(l) Verification that the desegregation funding is educationally justifiable.
(m) Any documentation that supports the proposition that the requested
desegregation funding is intended to result in equal education opportunities for all
pupils in the school district.
(n) Verification that the desegregation funding will be used to promote systemic
and organizational changes within the school district.
(o) Verification that the desegregation funding will be used in accordance with the
academic standards adopted by the state board of education pursuant to sections 15-701
and 15-701.01.
(p) Verification that the desegregation funding will be used to accomplish specific
actions to remediate proven discrimination pursuant to title VI of the civil rights act
of 1964 (42 United States Code section 2000d) as specified in the court order or
administrative agreement.
(q) An evaluation by the school district of the effectiveness of the school
district's desegregation measures.
(r) An estimate of when the school district will be in compliance with the court
order or administrative agreement and a detailed account of the steps that the school
district will take to achieve compliance.
(s) Any other information that the department of education deems necessary to carry
out the purposes of this paragraph.
K. If a school district governing board budgets for expenses of complying with a
court order of desegregation or an administrative agreement with the United States
department of education office for civil rights directed toward remediating alleged or
proven racial discrimination, the governing board shall ensure that the desegregation
expenses will:
1. Be educationally justifiable.
2. Result in equal education opportunities for all pupils in the school district.
3. Be used to promote systemic and organizational changes within the school
district.
4. Be used in accordance with the academic standards adopted by the state board of
education pursuant to sections 15-701 and 15-701.01.
5. Be used to accomplish specific actions to remediate proven discrimination
pursuant to title VI of the civil rights act of 1964 (42 United States Code section
2000d) as specified in the court order or administrative agreement.
6. Be used in accordance with a plan submitted to the department of education that
includes an estimate of the amount of monies that will be required to bring the school
district into compliance with the court order or administrative agreement and an estimate
of when the school district will be in compliance with the court order or administrative
agreement.
L. The governing board may budget for the bond issues portion of the cost of
tuition charged the district as provided in section 15-824 for the pupils attending
school in another school district, except that if the district is a common school
district not within a high school district, the district may only include that part of
tuition which is excluded from the revenue control limit and district support level as
provided in section 15-951. The bond issues portion of the cost of tuition charged is
specifically exempt from the revenue control limit of the school district of residence,
and the primary property tax rate set to fund this amount shall not be included in the
computation of additional state aid for education as provided in section 15-972, except
as provided in section 15-972, subsection E. The department of education and the auditor
general shall include in the maintenance and operation section of the budget format, as
provided in section 15-903, a separate category for the bond issues portion of the cost
of tuition.
M. The governing board may budget for interest expenses it incurred for registering
warrants drawn against a fund of the school district or net interest expense on tax
anticipation notes as prescribed in section 35-465.05, subsection C for the fiscal year
preceding the current year if the county treasurer pooled all school district monies for
investment as provided in section 15-996 for the fiscal year preceding the current year
and, in those school districts that receive state aid, the school districts applied for
an apportionment of state aid before the date set for the apportionment as provided in
section 15-973 for the fiscal year preceding the current year. The governing board may
budget an amount for interest expenses for registering warrants or issuing tax
anticipation notes equal to or less than the amount of the warrant interest expense or
net interest expense on tax anticipation notes as prescribed in section 35-465.05,
subsection C for the fiscal year preceding the current year as provided in this
subsection which is specifically exempt from the revenue control limit. For the purposes
of this subsection, "state aid" means state aid as determined in sections 15-971 and
15-972. 15-911 Aggregate expenditure limitation; aggregate expenditures of local revenues; adjustments
A. The legislature shall on or before June 1 of each year transmit to the state
board of education the aggregate expenditure limitation for all school districts for the
following fiscal year which the economic estimates commission determines as provided in
section 41-563, subsection C.
B. On or before November 1 of each year the state board of education shall
determine and report to the president of the senate, the speaker of the house of
representatives and the chairman of the joint legislative budget committee the aggregate
expenditures of local revenues as defined in article IX, section 21, subsection (4),
Constitution of ARIZONA, for all school districts for the current year.
C. If the aggregate expenditures of local revenues which the state board determines
as provided in subsection B of this section are in excess of the expenditure limitation
determined as provided in section 41-563, subsection C:
1. On or before November 1 the state board shall notify each school district that
may be affected by subsections D and E of this section and inform it of the amount by
which it may have to reduce its expenditures of local revenues.
2. On or before March 1 the legislature, on approval of two-thirds of the
membership of each house of the legislature, may authorize the expenditures of local
revenues in excess of the expenditure limitation for the current fiscal year.
D. The state board of education shall:
1. Determine the amount of the expenditures of local revenues in excess of the
expenditure limitation.
2. Determine the amount of expenditures of local revenues for each school district
and the total amount for all of the school districts.
3. Divide the amount determined in paragraph 1 of this subsection by the total
amount determined in paragraph 2 of this subsection.
4. Multiply the quotient determined in paragraph 3 of this subsection by the amount
determined in paragraph 2 of this subsection for each school district.
E. If the legislature fails to authorize the expenditures of local revenues in
excess of the expenditure limitation as provided in subsection C, paragraph 2 of this
section, on or before March 5 the state board of education shall inform each school
district of the amount it is to reduce its expenditures of local revenues, and each
school district shall reduce its expenditures of local revenues by the amount determined
in subsection D, paragraph 4 of this section. The governing board of each school
district shall on or before April 1, after it gives notice and holds a public meeting in
a similar manner as provided in section 15-905, subsections C and D, adopt a revised
budget for the current year which shall not exceed the previously adopted budget for the
current year less the amount which the state board of education specifies for reduction
in expenditures of local revenues. Not later than April 4, the budget as revised shall be
submitted electronically to the superintendent of public instruction.
15-912.01 Unification assistance
A. New unified school districts formed after a subdivision and unification as
provided in section 15-458, subsection G or section 15-459, subsection B, paragraph 5 or
new unified school districts formed from a common school district and a high school
district pursuant to section 15-448 may budget for unification assistance as provided in
subsection B of this section.
B. The eligible school district may increase the revenue control limit and the
district support level for the first year of operation by an amount determined as
follows:
1. Through December 31, 2006, five per cent of the revenue control limit.
2. Beginning January 1, 2007, the amount of any transitional costs that are
directly associated with routine formalities that are necessary as a result of
unification such as changing of signs, letterhead, stationery and similar issues.
C. A school district which budgets for unification assistance pursuant to this
section may not budget for consolidation assistance pursuant to section 15-912 during the
one year period for which the unification assistance is in effect.
15-912 Consolidation assistance
A. A resulting school district after merger of school districts may budget for
consolidation assistance as provided in subsection B of this section if the school
districts which merge include any of the following:
1. A common school district and at least one other common school district or at
least one unified school district.
2. A high school district and at least one other high school district or at least
one unified school district.
3. A unified school district and at least one other unified school district or at
least one high school district or at least one common school district.
B. The eligible school district may increase the revenue control limit and the
district support level for the first year of operation by an amount determined as
follows:
1. Through December 31, 2006, five per cent of the revenue control limit.
2. Beginning January 1, 2007, the amount of any transitional costs that are
directly associated with routine formalities that are necessary as a result of
consolidation such as changing of signs, letterhead, stationery and similar issues.
C. A school district which budgets for consolidation assistance pursuant to this
section may not budget for unification assistance pursuant to section 15-912.01 during
the one year period for which the consolidation assistance is in effect. 15-913.01 Education program; county jails
A. Each county that operates a county jail shall offer an education program to
serve all prisoners who are under eighteen years of age and prisoners with disabilities
who are age twenty-one or younger and who are confined in the county jail. The county
school superintendent and the sheriff in each county shall agree on the method of
delivery of the education program.
B. The county school superintendent shall develop policies and procedures for the
transfer of educational records of any prisoner confined in a county jail who has been
transferred from a juvenile detention center or from any other public agency which has
provided educational services to that prisoner.
C. A county may operate its county jail education program through an accommodation
school that provides alternative education services pursuant to section 15-308, except
that each pupil enrolled in the accommodation school county jail education program shall
be funded at an amount equal to seventy-two per cent of the amount for that pupil if that
pupil was enrolled in another accommodation school program.
D. If a county chooses not to operate its county jail education program through an
accommodation school, the county school superintendent may establish a county jail
education fund to provide financial support to the program. The county jail education
fund for each program shall consist of a base amount plus a variable amount. For fiscal
year 1999-2000 the base amount is fourteen thousand four hundred dollars and the variable
amount shall be determined pursuant to subsection E of this section. The county
treasurer shall deposit the appropriate amount into the county jail education fund from
monies that are collected from the tax levy for county equalization assistance for
education pursuant to section 15-994 after the monies are used pursuant to section
15-365, subsection F and before the monies are used to provide equalization assistance
for education pursuant to section 15-971, subsection C, except that if a county jail
education program serves more than one county, payment into the fund shall be pursuant to
subsection F of this section.
E. The variable amount shall be determined as follows:
1. Determine the number of days in the prior fiscal year that each pupil who is a
prisoner and had been in the county jail for more than forty-eight hours received an
instructional program of at least two hundred forty minutes. No school district may
count a pupil as being in attendance in that school district on a day that the pupil is
counted as a prisoner for the purposes of this paragraph.
2. Multiply the number of days determined under paragraph 1 of this subsection by
the following amount:
(a) For fiscal year 1999-2000, ten dollars and eighty cents.
(b) For fiscal year 2000-2001 and each year thereafter, the amount for the prior
year adjusted by any growth rate prescribed by law, subject to legislative appropriation.
3. For each pupil who is a child with a disability as defined in section 15-761,
who is a prisoner and who had been in the county jail for more than forty-eight hours:
(a) Determine the amount prescribed in section 15-1204, subsection E, paragraph 1
or 2, multiply the amount by .72 and add seventy-two dollars for capital outlay costs.
(b) Divide the sum determined under subdivision (a) of this paragraph by one
hundred seventy-five.
(c) Subtract the amount prescribed in paragraph 2 of this subsection from the
quotient determined in subdivision (b) of this paragraph.
(d) Determine the number of days in the prior fiscal year that the pupil received
an instructional program of at least two hundred forty minutes.
(e) Multiply the amount determined in subdivision (d) of this paragraph by the
difference determined in subdivision (c) of this paragraph.
4. Add the amounts determined in paragraph 3 of this subsection for all pupils with
disabilities who are prisoners.
5. Add the sum determined in paragraph 4 of this subsection to the product
determined in paragraph 2 of this subsection. This sum is the variable amount.
F. If a county jail education program serves more than one county, the county
school superintendents and the sheriffs of the counties being served shall agree on a
county of jurisdiction. The county treasurer shall pay the appropriate amount into the
county jail education fund of the county of jurisdiction from monies collected pursuant
to subsection D of this section as follows:
1. The total base amount shall be prorated among the counties based on the total
number of days as determined under subsection E, paragraph 1 of this section that pupils
who are prisoners from each county were served.
2. The variable amount shall be calculated separately for each county.
3. The county treasurer of each county that is not the county of jurisdiction shall
pay its variable amount and its portion of the base amount to the county of jurisdiction.
4. The county treasurer of the county of jurisdiction shall deposit the monies
received from the other counties pursuant to paragraph 3 of this subsection into the
county jail education fund and shall pay into the fund its variable amount and its
portion of the base amount.
G. If a county operated a county jail education program through an accommodation
school in the year before it begins to operate its county jail education program as
provided in subsection D of this section, for the first year of operation as provided in
subsection D of this section, the student count of the accommodation school shall be
reduced by the average daily membership attributable to the accommodation school's county
jail program in its last fiscal year of operation. The provisions of section 15-942
shall not apply to this reduction in student count.
15-913 Education program; juvenile detention centers
A. Each county that operates a juvenile detention center shall offer an education
program to serve all school-age children in its juvenile detention center. The county
school superintendent and the presiding juvenile court judge in each county shall agree
on the method of delivery of the juvenile detention center education program.
B. The state board of education shall prescribe standards and achievement testing
requirements for county juvenile detention center education programs that shall attempt
to ensure that the programs are compatible with public school education goals and
requirements. The county school superintendent shall attempt to coordinate the program
with each pupil's school district of residence to assist the pupil's transition back to
the school district at the appropriate time.
C. A county may operate its juvenile detention center education program through an
existing accommodation school.
D. If a county chooses not to operate its juvenile detention center education
program through an existing accommodation school, the county school superintendent may
establish a detention center education fund to provide financial support to the
program. The detention center education fund for each program shall consist of a base
amount plus a variable amount. For fiscal year 1994-1995 the base amount is twenty
thousand dollars and the variable amount shall be determined pursuant to subsection E of
this section. Beginning with fiscal year 1995-1996 the base amount is the amount for the
prior year adjusted by the growth rate prescribed by law, subject to appropriation. The
county treasurer shall deposit the appropriate amount into the detention center education
fund from monies that are collected from the tax levy for county equalization assistance
for education pursuant to section 15-994 after the monies are used pursuant to section
15-365, subsection F and before the monies are used to provide equalization assistance
for education pursuant to section 15-971, subsection C, except that if a county detention
center education program serves more than one county, payment into the fund shall be
pursuant to subsection F of this section.
E. The variable amount shall be determined as follows:
1. Determine the number of days in the prior fiscal year that each child who had
been in the detention center for more than forty-eight hours received an instructional
program of at least two hundred forty minutes. No school district may count a child as
being in attendance in that school district on a day that the child is counted for the
purposes of this paragraph.
2. Multiply the number of days determined under paragraph 1 of this subsection by
the following amount:
(a) For fiscal year 1994-1995, fifteen dollars.
(b) For fiscal year 1995-1996 and thereafter, the amount for the prior year
adjusted by the growth rate prescribed by law, subject to appropriation.
3. For each child with a disability as defined in section 15-761 who had been in
the detention center for more than forty-eight hours:
(a) Determine the amount prescribed in section 15-1204, subsection E, paragraph 1
or 2 and add one hundred dollars for capital outlay costs.
(b) Divide the sum determined under subdivision (a) of this paragraph by one
hundred seventy-five.
(c) Subtract the amount prescribed in paragraph 2, subdivision (a) or (b) of this
subsection from the quotient determined in subdivision (b) of this paragraph.
(d) Determine the number of days in the prior fiscal year that the child received
an instructional program of at least two hundred forty minutes.
(e) Multiply the amount determined in subdivision (d) of this paragraph by the
difference determined in subdivision (c) of this paragraph.
4. Add the amounts determined in paragraph 3 of this subsection for all children
with disabilities.
5. Add the sum determined in paragraph 4 of this subsection to the product
determined in paragraph 2 of this subsection. This sum is the variable amount.
F. If a county detention center education program serves more than one county, the
county school superintendents and the presiding juvenile court judges of the counties
being served shall agree on a county of jurisdiction. The county treasurer shall pay the
appropriate amount into the detention center education fund of the county of jurisdiction
from monies collected pursuant to subsection D of this section as follows:
1. The total base amount shall be prorated among the counties based on the total
number of days as determined under subsection E, paragraph 1 of this section that
children from each county were served.
2. The variable amount shall be calculated separately for each county.
3. The county treasurer of each county that is not the county of jurisdiction shall
pay its variable amount and its portion of the base amount to the county of jurisdiction.
4. The county treasurer of the county of jurisdiction shall deposit the monies
received from the other counties pursuant to paragraph 3 of this subsection into the
detention center education fund and shall pay into the fund its variable amount and its
portion of the base amount.
G. If a county operated a juvenile detention center education program through an
accommodation school in the year before it begins to operate its juvenile detention
center education program as provided in subsection D of this section, for the first year
of operation as provided in subsection D of this section, the student count of the
accommodation school shall be reduced by the student count attributable to the detention
center program. The provisions of section 15-942 shall not apply to this reduction in
student count.
15-914.01 Accounting responsibility; definition
A. School districts with a student count of at least four thousand may apply to the
state board of education to assume accounting responsibility.
B. A school district applying to the state board of education to assume accounting
responsibility shall develop and file with the department of education an accounting
responsibility plan and document in the plan:
1. Administrative and internal accounting controls designed to achieve compliance
with the uniform system of financial records and the objectives of this section
including:
(a) Procedures for approving, preparing and signing vouchers and warrants.
(b) Procedures to ensure verification of administrators' and teachers'
certification records with the department of education for all classroom and
administrative personnel required to hold a certificate by the state board of education
pursuant to section 15-203 before issuing warrants for their services.
(c) Procedures to account for all revenues, including allocation of certain
revenues to funds.
(d) Procedures for reconciling the accounting records monthly to the county
treasurer.
2. A compilation of resources required to implement accounting responsibility,
including, at a minimum, personnel, training and equipment, and comprehensive analysis of
the budgetary implications of accounting responsibility for the school district and the
county treasurer.
C. Prior to January 1 of the fiscal year preceding the fiscal year of
implementation and before submitting an application to assume accounting responsibility a
school district shall apply for evaluation by the auditor general. On completion of the
evaluation the auditor general may recommend approval or denial of accounting
responsibility to the state board of education. The evaluation by the auditor general
shall be performed contingent on staff availability and may be billed to the school
district at cost. Evaluation at a minimum shall include the following:
1. The most recent financial statements audited by an independent certified public
accountant.
2. The most recent report on internal control, report on compliance and uniform
system of financial records compliance questionnaire prepared by an independent certified
public accountant or procedural review completed by the auditor general.
3. The working papers of the independent certified public accountant responsible
for auditing the school district, if deemed appropriate by the auditor general.
4. A procedural review if deemed appropriate by the auditor general.
D. School districts that are approved by the state board of education to assume
accounting responsibility shall contract with an independent certified public accountant
for an annual financial and compliance audit. The auditor general may reevaluate the
school district annually based on the audit to determine compliance with the uniform
system of financial records.
E. To assume accounting responsibility a school district shall notify the county
treasurer and the county school superintendent of its intention before March 1 of the
fiscal year preceding the fiscal year of implementation. On notification, the county
treasurer shall establish acceptable standards for interface by school districts with the
county treasurer, including specifications for computer hardware and software
compatibility and procedures to ensure the capacity of each school district for
reconciliation of accounts with those of the county treasurer.
F. Any school district that fails to maintain accounting standards as provided by
the uniform system of financial records and is found to be in noncompliance with the
uniform system of financial records by the state board of education as provided in
section 15-272 is not eligible to participate in the program provided by this section.
G. Any school district that has assumed accounting responsibility pursuant to this
section that fails to maintain accounting standards as provided by the uniform system of
financial records and is found to be in noncompliance with the uniform system of
financial records by the state board of education as provided in section 15-272 is no
longer eligible to participate in the program provided by this section.
H. For the purposes of this section, "accounting responsibility" means authority
for a school district to operate with full independence from the county school
superintendent with respect to revenues and expenditures, including allocating revenues,
monitoring vouchers, authorizing and issuing warrants and maintaining and verifying staff
records for certification and payroll purposes.
15-914.02 School district audit
A school district that is subject to audit pursuant to section 41-1279.03 shall
comply with the reporting, follow-up and hearing participation requirements of that
section. 15-914 Financial and compliance audits
A. The governing board of a school district which is required to comply with the
single audit act amendments of 1996 (P.L. 104-156; 110 Stat. 1396; 31 United States Code
sections 7501 through 7507) shall contract for at least annual financial and compliance
audits of financial transactions and accounts subject to the single audit act amendments
of 1996 and kept by or for the school district. Beginning with fiscal year 2003-2004, the
governing board of a school district that is not required to comply with the single audit
act and that has adopted an expenditure budget of two million dollars or more for the
maintenance and operation fund pursuant to section 15-905 shall contract for an annual
financial statement audit. Beginning with fiscal year 2004-2005, the governing board of a
school district that is not required to comply with the single audit act and that has
adopted an expenditure budget of less than two million dollars but more than seven
hundred thousand dollars for the maintenance and operation fund pursuant to section
15-905 shall contract for a biennial financial statement audit. An independent certified
public accountant shall conduct the audit in accordance with generally accepted
governmental auditing standards.
B. The governing board of a charter school that is required to comply with the
single audit act amendments of 1996 shall contract for an annual financial and compliance
audit of financial transactions and accounts subject to the single audit act amendments
of 1996 and kept by or for the charter school.
C. A charter school that is not subject to the single audit act amendments of 1996
shall contract for at least an annual financial statement audit conducted in accordance
with generally accepted governmental auditing standards. An independent certified public
accountant shall conduct the audit.
D. For all audits referred to in subsections A, B and C of this section the
independent certified public accountant shall submit a uniform system of financial
records compliance questionnaire to the auditor general with the applicable audit
reports.
E. Contracts for all financial and compliance audits and financial statement audits
and the completed audits shall be approved by the auditor general as provided in section
41-1279.21. Contracts for all financial and compliance audits and financial statement
audits shall comply with the rules for competitive sealed proposals as prescribed by the
state board of education in section 15-213.
F. If the school district or charter school will incur costs of financial and
compliance audits for the budget year, the governing board of a school district or the
governing body of the charter school may increase its base support level for the budget
year by an amount equal to the amount expended for the district's or charter school's
financial and compliance audits in the year before the current year, increased by the
growth rate as prescribed by law, subject to appropriation. In determining the amount
expended for the district's or charter school's financial and compliance audits, the
school district or charter school shall include only the portion of the audit which must
be paid from monies other than federal monies. The department of education and the
auditor general shall prescribe a method for determining the increase in the base support
level and shall include in the maintenance and operation section of the budget format, as
provided in section 15-903, a separate line for financial and compliance audits
expenditures.
G. Beginning in fiscal year 2003-2004, every audit contract shall include a
systematic review of average daily membership, as defined in section 15-901, using
methodology that is consistent with guidelines established by the auditor general. The
auditor general shall consider cost when establishing guidelines pursuant to this
subsection and, to the extent possible, shall attempt to minimize the cost of the review.
The purpose of the review is to determine whether the average daily membership reported
by the charter school or school district is in compliance with the laws of this state and
the uniform systems of financial records for charter schools and school districts. 15-915 Correction of state aid or budget limit errors; definition
A. If the superintendent of public instruction determines that the calculation of
state aid for a school district or charter school or the calculation of the school
district's or charter school's budget limits within the previous three years did not
conform with statutory requirements, the superintendent shall require correction of the
errors as follows:
1. Corrections may be made in the current year or in the budget year, except that
in case of hardship to the school district, the superintendent may approve corrections
partly in one year and partly in the year after that year.
2. Errors in the calculation of state aid shall be corrected by increasing or
decreasing the state aid to the school district or charter school in the year or years in
which the correction is made.
3. Errors in the calculation of the school district's or charter school's budget
limits shall be corrected at a public hearing by requiring the governing board to reduce
or by allowing it to increase its budget by the amount of the correction to be made that
year. Overbudgeting errors corrected as provided in this paragraph are exempt from the
provisions of section 15-905, subsections L and M. Not later than three days after the
hearing and correction, the budget as revised shall be submitted electronically to the
superintendent of public instruction.
B. Subject to the review by the joint legislative budget committee, the
superintendent of public instruction shall adjust state aid for a school district in the
current year if the governing board of a school district requests the recalculation of
state aid for a prior year due to a change in assessed valuation that occurred as the
result of a judgment in accordance with section 42-16213.
C. For purposes of this section, "state aid":
1. For school districts means state aid as determined in section 15-971 and
additional state aid as determined in section 15-972.
2. For charter schools means state aid as determined in section 15-185.
15-916 Expenditure of state grant monies not included in budget
If the governing board of a school district receives a grant from this state for a
specific program and did not include the grant in the district's budget, the governing
board may, with the approval of the county school superintendent, authorize the
expenditure of the grant monies in excess of the budget by action taken at a public
meeting of the governing board. Within thirty days of the action, the governing board
shall notify the department of education of the amount of the expenditures authorized.
The amount which the district may expend in excess of the budget is equal to the amount
of the grant monies which were not included in the budget for that fiscal year.
15-918.01 State career ladder advisory committee
A. The state board of education shall establish a state career ladder advisory
committee which shall:
1. Provide recommendations to the state board on matters related to the
implementation, operation and monitoring of career ladder programs in this state's school
districts.
2. Develop criteria for the additional incentive components allowed pursuant to
section 15-918.02, subsection B subject to the approval of the state board of education.
3. Oversee and administer the optional performance incentive programs in this
state's school districts pursuant to this article.
B. The advisory committee shall consist of no more than fifteen members and shall
be composed of representatives from the educational, business and general community. No
more than one-third of the members of the advisory committee may represent districts
which have been authorized to budget for a career ladder program.
C. The state board of education shall appoint the members of the advisory committee
for staggered three year terms. Vacancies shall be filled for an unexpired term in the
same manner as original appointments. The advisory committee shall annually elect a
chair and vice-chair.
D. Members of the committee are not eligible to receive compensation, but if monies
are available, members are eligible to receive reimbursement of expenses pursuant to
title 38, chapter 4, article 2.
15-918.02 Career ladder program; requirements; optional component
A. To receive approval to budget for a career ladder program as provided in this
article, a school district's career ladder program or the district's plan for the
implementation of its program must contain at least the following components:
1. A structure which provides teachers with opportunities for professional career
advancement based primarily on improved or advanced teaching skills, evidence of pupil
academic progress and higher level instructional responsibilities. Advancement shall not
be based on years of teaching experience or the number of educational credits earned.
2. Provisions requiring all teachers new to the district to be evaluated for the
career ladder program.
3. Provisions for ensuring that the placement of teachers on the career ladder
shall be based on more than one measure of teacher performance incorporating the areas of
instructional performance and pupil academic progress and requirements for higher level
instructional responsibilities. The following specific requirements shall exist:
(a) The evaluation of teacher performance shall be based on an evaluation system as
provided in section 15-537 and shall include at least the following:
(i) A minimum of one evaluation that consists of both announced and unannounced
observations of teacher performance.
(ii) Procedures for ongoing review and refinement of the evaluation instruments and
procedures, including a process for establishing inter-rater reliability among all
evaluators.
(iii) Increasingly higher levels of instructional criteria against which teachers
are evaluated for placement on higher career ladder levels.
(iv) Provisions for formative evaluations and other opportunities for improvement
of teacher performance.
(b) The evaluation of a teacher's pupil academic progress shall include at least
the following:
(i) Specific criteria and requirements for the demonstration of pupil academic
progress for placement at each level of the career ladder. Teachers shall be required to
demonstrate increasingly higher levels of pupil academic progress for placement at the
higher levels of the career ladder.
(ii) The use of various methods of assessment which have been established by the
district for the evaluation of pupil progress. A variety of evaluation procedures may be
used depending on the grade levels and the academic disciplines involved. The system
must evaluate the teacher in terms of pupil progress as opposed to absolute performance
which does not take into account entering ability.
(iii) Specific district procedures for the review and refinement of pupil academic
progress criteria, assessments and procedures. Means for measuring pupil progress and
the methodology for incorporating this information into the teacher's placement on the
ladder must be consistent for all teachers.
(c) The requirement that teachers must perform higher level instructional
responsibilities as part of placement at the highest career ladder levels. In addition
to these higher level instructional responsibilities required for placement, districts
may utilize monies budgeted for the career ladder program to support additional higher
level instructional responsibilities for teachers placed on the career ladder.
4. Provisions for the placement of teachers on the career ladder include at least
the following:
(a) Specific criteria for placement at each level and step on the ladder.
(b) More than one person who is responsible for determining the placement of the
teacher on the ladder.
(c) An appeal process which includes both teachers and administrators to review
situations in which teachers disagree with their placement.
(d) Procedures for ensuring the fair and objective placement of teachers on the
career ladder including the establishment of inter-rater reliability among persons
responsible for determining placement.
5. The program shall utilize a compensation system which is based on a completely
restructured salary schedule in which a salary range is established for each career
ladder level and a salary is set for each step within a level. The salary range
established for a teacher is determined by that teacher's performance and subsequent
career ladder placement and not by that teacher's salary at the time of placement. The
compensation system must be based on equal pay for equal performance and shall not be the
traditional schedule based on experience and education with additional stipends for
career ladder placement. If participation in the career ladder program is optional for
teachers already teaching in the district when the program is implemented, the
traditional salary schedule may be retained for those teachers who choose not to
participate in the program.
6. The program shall include provisions for the administration of the career ladder
program which include the establishment of at least the following:
(a) A steering committee composed of teachers, administrators, board members and
parents to assist in the development and refinement of the district's career ladder
program.
(b) Procedures to allow for regular communication of information related to the
district's career ladder program, including formalized procedures for teacher,
administrator and community input.
(c) Provisions for adequate program management in which the district recognizes the
additional responsibilities associated with the management of the program and assigns
this task to a person or group of people.
(d) Provisions to provide additional support to building level administrators in
recognition of the additional responsibilities associated with the evaluation of teachers
for the career ladder program.
7. The program shall include provisions for the periodic review and evaluation of
the district's career ladder program and procedures for refining program components based
on the evaluation results.
8. The program shall include provisions for providing appropriate amounts and types
of staff development for teachers and administrators on the requirements of the career
ladder program and assistance in improving performance.
B. In addition to the requirements of subsection A of this section, the program may
include additional incentive components in which awards are based upon group, team,
school, or district performance, except that awards shall not be based upon extra pay for
extra work. Monies budgeted for the career ladder program may be used to support these
additional incentive components. These components may provide performance rewards to a
single school regardless of whether the components are provided to other schools in the
district or to employees regardless of whether they are participating in the main career
ladder program as prescribed in subsection A of this section. Examples of incentive
components that may be included pursuant to this subsection are as follows:
1. A system for basing rewards on improved performance of a school on the measures
included in the school's report card as provided in section 15-743, subsection A, or
other objective measures.
2. A system which is based on principles of effective organizations, teamwork,
parental and pupil involvement and support of teachers, that utilizes measures of quality
including parental satisfaction or rating of educational quality, teacher job
satisfaction or rating of support and pupil satisfaction with the quality of education
being received.
C. Each district that includes an additional incentive component as provided in
subsection B of this section shall develop an assessment plan for the measures of
performance by November 1 of each year. Monies used for the planning and development of
the additional incentive components shall not exceed five per cent of the monies that are
allocated for the additional incentive components.
15-918.03 Career ladder programs; implementation phases
The state board of education shall utilize the following implementation phases and
requirements when approving districts to budget for a career ladder program:
1. The application phase is the first phase of the career ladder implementation
process. During this phase, districts shall assess their readiness to implement a career
ladder program and shall develop the general outline of their program based on model
components adopted by the advisory committee but are not authorized to increase their
budgets. To receive approval for advancement to the second phase, districts must submit,
at a minimum, evidence that the plan was developed in consultation with teachers,
administrators and school board members, the district's readiness to implement the plan
and a time line indicating when various components, such as the refinement of the
district's teacher evaluation instrument and procedures, an appropriate staff development
program and the development of pupil assessments, will occur.
2. The development phase is the second implementation phase undertaken by districts
following their completion of the application phase. During this phase, districts shall
develop the specifics of their career ladder programs and are allowed to budget for a
career ladder program as provided in section 15-918.04. To receive approval for
advancement to the third phase, districts must submit, at a minimum, evidence that
teacher and pupil academic progress evaluation instruments and procedures have been
refined and pilot tested, appropriate levels of staff development have been provided and
any specific areas of weaknesses associated with the district's readiness to implement a
career ladder program have been adequately rectified.
3. The evaluation phase is the third implementation phase undertaken by districts
following their completion of the development phase. During this phase, districts shall
evaluate teachers, shall provide teacher career ladder placement contracts for the
following year and are allowed to budget for a career ladder program as provided in
section 15-918.04. To receive approval for advancement to the fourth phase, districts
must submit, at a minimum, evidence that teachers have been fairly evaluated and placed
and that the district is evaluating its program.
4. The placement phase is the fourth implementation phase undertaken by districts
following their completion of the evaluation phase. During this phase, a district shall
continue to evaluate teachers and is allowed to budget for a career ladder program as
provided in section 15-918.04. To receive approval for advancement to the fifth phase, a
district must submit, at a minimum, evidence that the program participation rate is at
least fifty per cent, except that if a school district is devoting at least thirty per
cent of its career ladder funding to additional incentive components pursuant to section
15-918.02, subsection B, the school district may report its program participation rate to
be one hundred per cent, that district level pupil academic progress has occurred and, if
not already included, that provisions to require all teachers new to the district to be
evaluated for the career ladder program have been included. The state board of education
shall prescribe a method of computing the program participation rate that treats all
career ladder programs equitably by taking into account variations in program
definitions.
5. The effective career ladder phase is the fifth and final implementation phase
undertaken by districts following their completion of the placement phase. During this
phase, districts shall fully implement their career ladder programs and are allowed to
budget for a career ladder program as provided in section 15-918.04. During this phase,
the state board may grant districts up to a five year waiver of any program requirements
prescribed in section 15-918, subsection B, or section 15-918.02. Waivers may be granted
to districts that meet all of the following conditions:
(a) The district has submitted a request for the waiver that explains how the
proposed waiver will improve its program and how this program improvement will enhance
pupil achievement.
(b) The district has integrated its career ladder program with other reforms or
programs that are designed to improve pupil achievement.
(c) The district is actively evaluating and reviewing its career ladder program and
making adjustments as necessary, including analysis of the impact of the program on pupil
achievement.
(d) The career ladder program is strongly supported by teachers, administrators and
the governing board.
15-918.04 Career ladder programs
A. To budget for a career ladder program as approved by the state board, a school
district that is implementing the program in all schools in the district may calculate
its budget using an increase in the base level as follows:
1. For the fiscal year or years a district is implementing the program at the
development phase, 0.5 per cent, except that a district shall:
(a) Be allowed to budget at least the amount in column 2 of this subdivision that
corresponds to the student count classification in column 1 of this subdivision:
Column 1 Column 2
Student count Minimum amount
1-199 $ 5,000
200-599 $10,000
600-999 $15,000
1,000-1,399 $20,000
1,400 or more $25,000
(b) Not budget more than one hundred fifty thousand dollars.
2. For the fiscal year or years a district is implementing the program at the
evaluation phase, 1.0 per cent, except that a district shall:
(a) Be allowed to budget the amount in column 2 of this subdivision that
corresponds to the student count classification in column 1 of this subdivision:
Column 1 Column 2
Student count Minimum amount
1-199 $10,000
200-599 $20,000
600-999 $30,000
1,000-1,399 $40,000
1,400 or more $50,000
(b) Not budget more than three hundred thousand dollars.
3. For the fiscal year or years a district is implementing the program at the
placement phase, not greater than 2.5 per cent. After the successful completion of at
least one year in the placement phase, the board may approve a funding level of not
greater than 4.0 per cent.
4. For the fiscal years a district is implementing the program at the effective
career ladder phase, not greater than 5.5 per cent.
5. In addition to the amount authorized in paragraphs 3 and 4, a school district
for which the formula produces an amount of less than three hundred thousand dollars may
increase its base support level by an amount computed as follows:
(a) Determine ten per cent of the funding increase.
(b) Subtract the amount determined in subdivision (a) of this paragraph from the
amount in column 2 of this subdivision that corresponds to the student count
classification in column 1 of this subdivision:
Column 1 Column 2
Student count Small district adjustment
1-599 $10,000
600-1,399 $20,000
1,400 or more $30,000
B. If a career ladder program has been approved for fewer than all of the schools
in a school district, the percentage increase in the base level prescribed in subsection
A of this section shall be reduced proportionately, based on the ratio of the student
count in the career ladder schools to the student count of the school district as a
whole. The minimum and maximum dollar amounts apply to the school or schools in one
school district as if they were a school district.
C. Notwithstanding any other law, a school district that has implemented a career
ladder program may budget any budget balance in the maintenance and operation section of
the budget that is directly attributable to a budgeted increase in the base level as
prescribed in this section from the current fiscal year for use in career ladder programs
in the budget year. The amount budgeted pursuant to this subsection shall not be
included in the allowable budget balance carry forward calculated pursuant to section
15-943.01. The amount budgeted pursuant to this subsection is specifically exempt from
the revenue control limit. For purposes of this subsection, "budget balance" means the
difference between actual career ladder expenditures and the budgeted increase in the
base level as prescribed in this section.
15-918.05 Career ladder programs; determination of equalization assistance payments from county and state monies
A school district that has chosen to calculate its budget using an increase in the
base level, as prescribed in section 15-918.04, shall notify the state board of its
decision and shall have its equalization assistance for education as computed in section
15-971 computed as follows:
1. For a high school district or a common school district within a high school
district that does not offer instruction in high school subjects as provided in section
15-447, the qualifying tax rate as provided in section 15-971, subsection B, paragraph 1
shall be increased by two cents for each percentage increase in the base level as
provided in section 15-918.04.
2. For a unified school district, a common school district not within a high school
district or a common school district within a high school district that offers
instruction in high school subjects as provided in section 15-447, the qualifying tax
rate as provided in section 15-971, subsection B, paragraph 2 shall be increased by four
cents for each percentage increase in the base level as provided in section 15-918.04.
15-918 Career ladder programs; definitions
A. A school district governing board may apply to the state board of education for
approval to budget for a career ladder program under the provisions established in this
article. The application may be for one or more schools in the district or for the
entire district. Applications for initial program approval or reapproval shall be
submitted annually by November 15 to the state career ladder advisory committee which is
established pursuant to section 15-918.01 and which shall review the applications and
forward recommendations to the state board. The board shall provide notice to the
applicants of approval or disapproval by February 15.
B. Based on the requirements established in this article and the recommendations of
the state career ladder advisory committee, the state board shall prescribe specific
procedures for application and requirements as needed for approval to budget for a career
ladder program.
C. If a governing board receives approval to budget for a career ladder program, it
may calculate its budget using an increase in the base level authorized by the state
board. Dependent on the district's implementation stage pursuant to section 15-918.03
and other criteria as prescribed in section 15-918.02, the state board may authorize an
increase of up to five and one-half per cent of the base level.
D. The total amount of state monies that may be expended in any fiscal year for the
state board of education for career ladder programs shall not exceed the amount
appropriated or authorized by section 35-173 for that purpose. This section shall not be
construed to impose a duty on an officer, agent or employee of this state to discharge a
responsibility or to create any right in a person or group if the discharge or right
would require an expenditure of state monies in excess of the expenditure authorized by
legislative appropriation for that specific purpose.
E. For the purposes of this article:
1. "Career ladder program" means a program which:
(a) Establishes a multilevel system of teaching positions.
(b) Provides opportunities to teachers for continued professional advancement.
(c) Requires at least improved or advanced teaching skill for advancement to a
higher level and other components such as additional higher level instructional
responsibilities and demonstration of pupil academic progress.
(d) Uses a performance based compensation system.
2. "Governing board" means any of the following:
(a) A school district governing board.
(b) The governing body of a school if it has been delegated authority over a career
ladder program by a school district governing board.
15-919.02 Optional performance incentives program; requirements
To receive approval to budget for an optional performance incentives program, a
school district's optional performance incentives program or the district's plan for the
implementation of its program shall meet at least the following requirements:
1. The program shall be based on principles of effective organizations, teamwork,
parental and pupil involvement and support of teachers.
2. The program shall contain documented evidence of support by school district
employees.
15-919.03 Optional performance incentives programs; implementation phases
The superintendent of public instruction may develop and utilize up to five
implementation phases when approving districts to budget for an optional performance
incentives program. Movement upwards through the implementation phases shall reflect
increased performance by the district based on various measures of quality.
15-919.04 Optional performance incentives program; funding; limitation
A. The superintendent of public instruction may authorize a district participating
in the optional performance incentives program to calculate its budget using an increase
in the base level of up to five and one-half per cent.
B. If implementation phases are used, the superintendent of public instruction
shall increase a district's funding level based on the district's achievement of
successively higher implementation phases.
C. Notwithstanding subsection B of this section, the state performance incentive
oversight committee may authorize a district that is a career ladder district to budget
for an increase in its base level that is equal to the base level increase that the
district was authorized to budget for pursuant to section 15-918.04 at the time of
original application to the optional performance incentives program. A school district
shall not budget for both the career ladder program and the optional performance
incentives program at the same time.
D. Notwithstanding any other law, a school district that has implemented an
optional performance incentive program may budget any budget balance in the maintenance
and operation section of the budget that is directly attributable to a budgeted increase
in the base level as prescribed in this section from the current fiscal year for use in
optional performance incentive programs in the budget year. The amount budgeted pursuant
to this subsection shall not be included in the allowable budget balance carryforward
calculated pursuant to section 15-943.01. The amount budgeted pursuant to this
subsection is specifically exempt from the revenue control limit. For purposes of this
subsection, "budget balance" means the difference between actual optional performance
incentive program expenditures and the budgeted increase in the base level as prescribed
in this section.
15-919.05 Optional performance incentive programs; determination of equalization assistance payments from county and state monies
A. A school district that has chosen to calculate its budget using an increase in
the base level shall notify the state board of its decision and shall have its
equalization assistance for education as prescribed in section 15-971 computed as
follows:
1. For a high school district or a common school district within a high school
district that does not offer instruction in high school subjects as provided in section
15-447, the qualifying tax rate as provided in section 15-971, subsection B, paragraph 1
shall be increased by two cents for each percentage increase in the base level as
provided in section 15-919.04.
2. For a unified school district, a common school district not within a high school
district or a common school district within a high school district that offers
instruction in high school subjects as provided in section 15-447, the qualifying tax
rate as provided in section 15-971, subsection B, paragraph 2 shall be increased by four
cents for each percentage increase in the base level as provided in section 15-919.04.
B. Except as provided in section 15-972, subsection E, the primary property tax
rate set to fund the amount specified pursuant to subsection A of this section shall not
be included in the computation of additional state aid for education as provided in
section 15-972.
15-919.06 Optional performance incentive programs; unexpended and unencumbered monies; portion nonlapsing
A. A school district that is authorized by the state board to budget for an
optional performance incentive program and that by the end of the current fiscal year has
additional authorized budget capacity for that fiscal year unexpended and unencumbered
shall notify the department of education by July 15 of the following fiscal year of this
unexpended and unencumbered amount. The department of education shall decrease that
school district's apportionment of state aid for the following fiscal year by an amount
equal to twenty per cent of the total unexpended and unencumbered capacity.
B. Notwithstanding section 15-943.01, the maximum amount that may be budgeted as
the budget balance carry forward by the governing board of a school district that has
received approval to participate in an optional performance incentive program is the
maximum amount prescribed in section 15-943.01 further increased by eighty per cent of
any unexpended optional performance incentive program monies reported to the department
of education pursuant to subsection A of this section.
C. The governing board of a school district that budgets as part of the budget
balance carry forward optional performance incentive program monies pursuant to
subsection B of this section shall account separately in its budget for the optional
performance incentive program monies carried forward and shall use these monies only for
the purposes of the optional performance incentive program authorized pursuant to this
article.
15-919 Optional performance incentive program; definition
A. A school district governing board may apply to the superintendent of public
instruction for approval to budget for an optional performance incentive program under
the provisions established in this article. Applications for initial program approval or
reapproval shall be submitted annually by March 15 to the superintendent of public
instruction. The superintendent of public instruction shall review the applications and
make recommendations to the state board by May 15. Applications for new programs may be
requested only if advanced appropriations have been made to cover the cost of the first
year of implementation for new districts for that year. The state board shall provide
notice to the applicants of approval or disapproval by July 1, based on the
recommendations of the superintendent of public instruction.
B. Notwithstanding subsection A of this section, if the superintendent of public
instruction submits recommendations to the state board after May 15, a school district,
before October 1, may calculate its budget using the increase in the base level that the
school district anticipates will be authorized by the state board. If a school district
calculates its budget pursuant to this subsection, the school district shall signify in
writing that the increase is pending approval by the state board. If state board
approval is not received by October 1, the school district shall recalculate its budget
without the increase in the base level that was anticipated pursuant to this
subsection. Not later than May 18, the budget as revised shall be submitted
electronically to the superintendent of public instruction.
C. Based on the requirements established in this article and the superintendent's
recommendations, the superintendent of public instruction shall prescribe specific
procedures for application and requirements as needed for approval to budget for an
optional performance incentive program.
D. If a governing board receives approval to budget for an optional performance
incentive program, it may calculate its budget using an increase in the base level
recommended by the superintendent of public instruction and authorized by the state
board. Dependent on the guidelines developed by the superintendent of public instruction
pursuant to section 15-919.03 and other criteria as prescribed in section 15-919.02, the
state board may authorize an increase of up to five and one-half per cent of the base
level.
E. For the purposes of this article, "optional performance incentive program" means
a program that:
1. Is an alternative to the career ladder program established in this article.
2. Is based on principles of effective organizations, teamwork, parental and pupil
involvement and support of teachers.
3. Uses measures of quality including parental satisfaction or rating of
educational quality, teacher job satisfaction or rating of support and pupil satisfaction
with the quality of education being received.
4. Uses a performance based compensation system.
15-920.01 ARIZONA performance based compensation system task force; members; evaluation; reporting A. The ARIZONA performance based compensation system task force is established within the state board of education. The task force shall consist of the following members appointed by the state board of education: 1. Three certificated teachers who are currently teaching in this state, one of whom provides academic instruction in grades one through eight, one of whom provides academic instruction in grades nine through twelve and one of whom teaches in a specialized area of instruction. 2. Three members who are certificated administrators or school district governing board members. 3. Two members of the general public who do not hold an active certificate issued by the state board of education and who are not employed by any school district in this state. 4. Four members of the general public who are employed in the private sector in capacities that involve or promote economic development. B. By February 2006, and each year thereafter, the superintendent of public instruction shall submit the data provided by school districts pursuant to section 15-977, subsection F to the ARIZONA performance based compensation system task force, which shall conduct an evaluation of performance based compensation systems in accordance with subsection C of this section. C. The ARIZONA performance based compensation system task force shall conduct annual evaluations of one quarter of the school districts' performance based compensation systems based on the data submitted to the task force by the superintendent of public instruction pursuant to subsection B of this section. The annual evaluation shall: 1. Assess the relationship between components of individual school district performance based compensation systems and the improvement in: (a) Individual student progress and achievement. (b) Achievement of school district and school site goals. (c) Teacher professional development. (d) Teacher job satisfaction. (e) Parent rating of the quality of education at the school and district levels. 2. Provide a report to the school districts evaluated each year assessing the effectiveness of each school district's performance based compensation system, including any recommendations for improvement. The report shall be delivered to the members of the school district governing board for consideration in a public meeting. D. The ARIZONA performance based compensation system task force shall annually submit a summary of its findings and conclusions to the speaker of the house of representatives and the president of the senate. A copy of the summary of findings and conclusions shall be provided to the chairperson of the house of representatives K-12 education committee, or its successor committee, and the chairperson of the senate K-12 education committee, or its successor committee. E. On or before June 30, 2010, the ARIZONA performance based compensation system task force shall: 1. Provide recommendations to the state board of education on the implementation, operation and monitoring of performance based compensation systems and career ladder programs in the school districts of this state. 2. Develop written recommendations based on the elements prescribed in section 15-977, subsection C. These written recommendations shall be submitted to the governor, the speaker of the house of representatives, the president of the senate and the state board of education. The ARIZONA performance based compensation system task force shall provide copies of the written recommendations to the secretary of state and the director of the ARIZONA state library, archives and public records. 15-920 Performance pay; budget balance carryforward; definitions
A. Notwithstanding any other law, a school district that uses a performance pay
component in its salary schedule may budget any budget balance in the maintenance and
operation section of the budget that is attributable to performance pay and that is not
earned in the current fiscal year for use in the budget year. The carryforward shall be
used in the following year's performance pay component of the salary schedule. The
amount budgeted pursuant to this subsection shall not be included in the allowable budget
balance carryforward calculated pursuant to section 15-943.01. The amount budgeted
pursuant to this subsection is specifically exempt from the revenue control limit.
B. For purposes of this section:
1. "Budget balance" means the difference between actual and budgeted expenditures
for the performance pay component of the salary schedule.
2. "Performance pay component" means any portion of a school district's salary
schedule, other than a career ladder program or an optional performance incentives
program established pursuant to this article, that is based on factors directly related
to a teacher's classroom performance.
15-921 Duties of superintendent of public instruction
A. The superintendent of public instruction shall supervise the provision of pupil
transportation services.
B. The superintendent of public instruction shall evaluate the transportation
program and routes for the purpose of evaluating accurate transportation support levels
for the budget year.
C. For each fiscal year the superintendent of public instruction shall, on or
before May 15, inform each school district of the daily route mileage which shall be used
in the determination of the school district's transportation support level for the budget
year.
D. The superintendent of public instruction shall be responsible for assembling the
information provided by the school district and for determining the accuracy of such
information. 15-922 Duties of the school district; definition
A. Each school district shall within twelve days after the first one hundred days
or two hundred days in session, as applicable, certify to the superintendent of public
instruction, in an electronic format as prescribed by the department of education, the
following:
1. The daily route mileage of the school district in the current year. The route
mileage shall not include more than twenty miles each way to and from the school of
attendance or to and from a pickup point on a regular transportation route to transport
eligible students who reside in nonadjacent school districts.
2. The route mileage of the school district in the current year transporting
eligible students for an extended school year services in accordance with section 15-881.
3. The number of eligible students transported during the current year.
B. Each school district shall on or before July 15 of the current year certify to
the superintendent of public instruction the following:
1. For each bus operated by the school district, the following:
(a) The odometer reading as of the end of the current year.
(b) An inventory of each school bus owned by the school district including:
(i) Manufacturer of the bus.
(ii) Date of purchase.
(iii) Purchase price.
(iv) Capacity for passengers.
(v) Type of fuel used.
2. The total bus mileage during the current year.
3. The road conditions upon which eligible students are transported reported in a
format specified by the superintendent of public instruction.
4. The total bus mileage for the current year for academic and career and technical
education and vocational education and athletic trips reported in a format specified by
the superintendent of public instruction.
C. A school district shall meet the requirements of this section to receive state
aid. The superintendent of public instruction may withhold a school district's
apportionment of state aid if it is determined by the superintendent of public
instruction that the school district is not complying with the requirements of this
section.
D. For the purposes of this article and section 15-901, "school bus" or "bus" means
a bus as defined in section 28-101, except that the passenger capacity standards
prescribed in that section do not apply.
15-923 Contracts for transportation
A. As an alternative to maintaining and operating a transportation program or in
conjunction with a transportation program, a school district may, if it is found to be
economically advantageous, contract for transportation. Contracts may be with another
political subdivision, a common or contract carrier or a private party.
B. In addition to other powers and duties prescribed by title 11, chapter 2,
article 4, any board of supervisors may at the request of any or all of the governing
boards of the school districts within the county provide necessary student
transportation. If the board of supervisors and the governing board or boards of such
school districts mutually agree that such an arrangement is economically advantageous,
the governing board of the school district is authorized to sell or lease its bus or
buses to the board of supervisors for such purposes. Agreement between the parties shall
be by written contract.
C. In no event shall an eligible student who is transported part by contract and
part by school district transportation facilities be counted as more than one eligible
student.
D. Each school district shall submit electronically to the department of education
the routes contracted, the contractor contract information, the number of eligible
students transported by each contractor and any additional information requested by the
department of education.
15-941 Teacher experience index; computation; definition
A. The teacher experience index for each school district shall be computed as
follows:
1. For the school district:
Number of FTE years of experience of
Number of years Number of FTE certified
of experience certified teachers teachers
1 x ____ = ____
2 x ____ = ____
3 x ____ = ____
4 x ____ = ____
5 x ____ = ____
6 x ____ = ____
7 x ____ = ____
8 x ____ = ____
9 x ____ = ____
10 x ____ = ____
11 x ____ = ____
12 x ____ = ____
13 x ____ = ____
14 x ____ = ____
15 (or more) x ____ = ____ Total A B
2. Divide total B by total A to determine the average number of FTE years of
experience of FTE certified teachers in the school district.
3. For the state:
Number of FTE years of experience of
Number of years Number of FTE certified
of experience certified teachers teachers
1 x ____ = ____
2 x ____ = ____
3 x ____ = ____
4 x ____ = ____
5 x ____ = ____
6 x ____ = ____
7 x ____ = ____
8 x ____ = ____
9 x ____ = ____
10 x ____ = ____
11 x ____ = ____
12 x ____ = ____
13 x ____ = ____
14 x ____ = ____
15 (or more) x ____ = ____ Total C D
4. Divide total D by total C to determine the average number of FTE years of
experience of FTE certified teachers in the state.
5. Subtract the quotient obtained in paragraph 4 of this subsection from the
quotient obtained in paragraph 2 of this subsection and multiply the remainder by 0.0225.
6. Add 1.00 to the product obtained in paragraph 5 of this subsection.
B. Librarians, guidance counselors, curriculum coordinators and other personnel who
do not conduct regularly scheduled classes shall not be included as certified teachers
and shall be coded separately from certified teachers in the uniform system of financial
records.
C. Each school district shall on or before October 15 submit to the superintendent
of public instruction in electronic format the data prescribed in subsection A,
paragraphs 1 and 2 for the current year. The superintendent of public instruction shall
use the data to compute the teacher experience index of each school district for the
budget year.
D. The superintendent of public instruction shall on or before March 15 notify each
school district of its teacher experience index for the budget year. The teacher
experience index for the budget year shall not be recalculated after March 15 unless the
superintendent of public instruction determines that the school district has submitted
data resulting in an overstatement of the teacher experience index for the budget year.
E. For the purposes of this section, "number of years of experience" means the
number of years of classroom instruction conducted by a certified teacher in the school
district in which the certified teacher is currently employed including the number of
years of experience of the certified teacher granted by the school district for the
certified teacher on the district's salary schedule for experience outside of the school
district.
15-942 Adjustment for rapid decline in student count
A. If the student count in grades kindergarten through eight or grades nine through
twelve for the budget year is less than the student count in grades kindergarten through
eight or grades nine through twelve for the current year or the adjusted student count in
grades kindergarten through eight or grades nine through twelve for the current year
determined as provided in this section by:
1. At least five per cent but less than nine per cent, a school district may use
the student count in grades kindergarten through eight or grades nine through twelve for
the current year or the adjusted student count in grades kindergarten through eight or
grades nine through twelve for the current year determined as provided in this section
multiplied by 0.95 in computing the budget for the budget year and entitlement to state
aid.
2. At least nine per cent but less than thirteen per cent, a school district may
use the student count in grades kindergarten through eight or grades nine through twelve
for the current year or the adjusted student count in grades kindergarten through eight
or grades nine through twelve for the current year determined as provided in this section
multiplied by 0.93 in computing the budget for the budget year and entitlement to state
aid.
3. At least thirteen per cent but less than twenty per cent, a school district may
use the student count in grades kindergarten through eight or grades nine through twelve
for the current year or the adjusted student count in grades kindergarten through eight
or grades nine through twelve for the current year determined as provided in this section
multiplied by 0.90 in computing the budget for the budget year and entitlement to state
aid.
4. At least twenty per cent but less than thirty per cent, a school district may
use the student count in grades kindergarten through eight or grades nine through twelve
for the current year or the adjusted student count in grades kindergarten through eight
or grades nine through twelve for the current year determined as provided in this section
multiplied by 0.87 in computing the budget for the budget year and entitlement to state
aid.
5. Thirty per cent or more, a school district may use the student count in grades
kindergarten through eight or grades nine through twelve for the current year or the
adjusted student count in grades kindergarten through eight or grades nine through twelve
for the current year determined as provided in this section multiplied by 0.85 in
computing the budget for the budget year and entitlement to state aid.
B. The governing board of a school district utilizing the adjusted student count as
provided in this section shall include notification of the actual per cent decline in
student count and the additional allowable revenues by computing the base revenue control
limit by utilization of the adjustment for rapid decline in student count in the proposed
budget presented at the public meeting as provided in section 15-905.
C. When determining its student count or adjusted student count for the current
year, the governing board of a school district utilizing the adjusted student count as
provided in this section shall not include:
1. Pupils who are residents of the attendance area of another school district as a
result of a school district consolidation, subdivision or other boundary change.
2. Pupils whose district of attendance has not changed but who are being included
in the student count of a different school district for the budget year as a result of a
change in an agreement regarding which district will include the pupils in its student
count.
3. Pupils whose attendance has changed to a charter school sponsored by, operated
by or operated for a school district, as provided in section 15-185, subsection E.
D. The provisions of this section shall not apply to any reduction in student count
resulting from enrollment in a joint technological education district formed pursuant to
chapter 3, article 6 of this title.
E. This section does not apply to any reduction in student count resulting from a
district sponsored charter school switching sponsors or ceasing to operate.
F. This section does not apply to any reduction in student count resulting from the
elimination of early kindergarten or early first grade programs. 15-943.01 Maintenance and operation budget balance; definition
A. The governing board of a school district may budget any budget balance in the
maintenance and operation section of the budget, as provided in section 15-903, from the
current fiscal year for use in the maintenance and operation section of the budget in the
budget year. The amount which may be budgeted as the budget balance carryforward in any
one fiscal year shall not exceed four per cent of the school district's revenue control
limit, as provided in section 15-947, subsection A, for the current year and shall not
include any budget balance attributable to any reduction in the district's general budget
limit including reductions for items which are exempt from the revenue control limit and
for which expenditures are limited to a designated purpose such as excess insurance costs
or excess utility costs or for the bond issues portion of the cost of tuition. A school
district may include in the budget balance carryforward in any fiscal year up to fifty
per cent of the unspent proceeds of an override election conducted pursuant to section
15-482. The amount budgeted as the budget balance carryforward is specifically exempt
from the revenue control limit.
B. If the actual amount of the allowable budget balance carryforward is less than
the amount budgeted for the budget balance carryforward, the governing board shall adjust
the general budget limit and expenditures before May 15 based on the actual allowable
budget balance carryforward. If the actual amount of the allowable budget balance
carryforward is more than the amount budgeted for the budget balance carryforward, the
governing board may adjust its budget before May 15 based on the actual amount of the
allowable fund balance carryforward. Not later than May 18, the budget as revised shall
be submitted electronically to the superintendent of public instruction.
C. If the governing board is eligible to budget for a budget balance carryforward
as provided in subsection A of this section, the governing board may transfer an amount
from the district's ending cash balance of the maintenance and operations fund to the
school opening fund. The maximum amount that may be transferred is the lesser of the
district's ending cash balance in the maintenance and operations fund or the amount the
district is eligible to budget as a budget balance carryforward. The school opening fund
is a cash controlled fund as provided in section 15-905, subsection N, and may only be
expended for the additional maintenance and operations expenses incurred in the first
year of operation of a new school within the school district. The monies in the school
opening fund are not subject to reversion, except that at the end of five years of no
activity in the fund, any remaining monies shall be reverted to the maintenance and
operations fund. Any monies so reverted may be considered additional budget balance for
that fiscal year.
D. If a governing board transfers monies as provided in subsection C of this
section, the amount so transferred in a fiscal year shall be subtracted from the amount
the district would otherwise be eligible to budget for that fiscal year as provided in
subsection A of this section. The difference, if any, is the maximum amount that may be
budgeted for that fiscal year as a budget balance carryforward.
E. For the purposes of this section, "budget balance" means the difference between
actual and budgeted expenditures.
15-943.02 Base support level for joint vocational and technical education districts
A. The base level for each joint vocational and technical education district shall
be computed as follows:
Grade/ Support Student Weighted
Category Level Count Student Weight Count
9-12 1.339 X ________ = ________
B. Multiply the total determined in subsection A by the base level.
C. Multiply the teacher experience index of the district or 1.00, whichever is
greater, by the product obtained in subsection B.
15-943.03 Budget balance exemption
Charter schools are exempt from the budget balance carry forward limitation
prescribed in section 15-943.01, subsection A.
15-943.04 English learner classroom personnel bonus fund; payment of English language classroom personnel bonuses
The English learner classroom personnel bonus fund is established consisting of
monies appropriated for this purpose. The department of education shall administer the
fund. Monies in the fund are continuously appropriated. Applications from school
districts and charter schools for monies from the fund shall be submitted by February 28
of each year. The department of education shall distribute monies in the fund to school
districts and charter schools in equal amounts not to exceed two hundred fifty dollars
for every English learner, as defined in section 15-751, who was instructed in an English
learner program in the past academic year, who achieved English proficiency and who
exited the English learner program. School districts and charter schools shall use the
monies distributed pursuant to this section to pay bonuses directly to classroom
personnel, excluding principals and administrators, who are involved in English learner
programs. A school district or charter school shall not receive more than one
distribution from the English learner classroom personnel bonus fund for the same pupil.
15-943 Base support level
The base support level for each school district shall be computed as follows: 1. The following support level weights shall be used in paragraph 2, subdivision (a) for the following school districts: (a) For school districts whose student count in kindergarten programs and grades one through eight is classified in column 1 of this subdivision, the support level weight for kindergarten programs and grades one through eight is the corresponding support level weight prescribed in column 2 or 3 of this subdivision, whichever is appropriate: Column 1 Column 2 Column 3 Support Level Weight Support Level Weight For Small Isolated For Small Student Count School Districts School Districts 1-99 1.559 1.399 100-499 1.358 + [0.0005 x (500 1.278 + [0.0003 x (500 - student count)] - student count)] 500-599 1.158 + [0.002 x (600 1.158 + [0.0012 x (600 - student count)] - student count)] (b) For school districts whose student count in grades nine through twelve is classified in column 1 of this subdivision, the support level weight for grades nine through twelve is the corresponding support level weight prescribed in column 2 or 3 of this subdivision, whichever is appropriate: Column 1 Column 2 Column 3 Support Level Weight Support Level Weight For Small Isolated For Small Student Count School Districts School Districts 1-99 1.669 1.559 100-499 1.468 + [0.0005 x (500 1.398 + [0.0004 x (500 - student count)] - student count)] 500-599 1.268 + [0.002 x (600 1.268 + [0.0013 x (600 - student count)] - student count)] 2. Subject to paragraph 1, determine the weighted student count as follows: (a) Support Weighted Level Student Student Grade Base Group A Weight Count Count PSD 1.000 + 0.450 = 1.450 x = K-8 1.000 + 0.158 = 1.158 x = 9-12 1.163 + 0.105 = 1.268 x = Subtotal A (b) Support Weighted Funding Level Student Student Category Weight Count Count HI 4.771 x = K-3 0.060 x = ELL 0.115 x _______ = ____________ MD-R, A-R and SMR-R 6.024 x = MD-SC, A-SC and SMR-SC 5.833 x = MD-SSI 6.531 x = OI-R 3.158 x = OI-SC 5.576 x = P-SD 3.595 x = ED, MIMR, SLD, SLI and OHI 0.003 x = ED-P 4.647 x = MOMR 4.421 x = VI 4.806 x = Subtotal B (c) Total of subtotals A and B: 3. Multiply the total determined in paragraph 2 by the base level. 4. Multiply the teacher experience index of the district or 1.00, whichever is greater, by the product obtained in paragraph 3. 15-944.01 Additional expenditures exempt in whole or in part from revenue control limit
Beginning January 1, 1990, no school district is permitted to budget for items that
are exempt either in whole or in part from the revenue control limit and that are funded
by revenues generated by a levy of taxes on the taxable property in the school district,
except that a school district may budget for those items that are exempt either in whole
or in part from the revenue control limit as authorized by law before January 1, 1990.
15-944 Base revenue control limit
A. The base revenue control limit for each school district for fiscal year
1980-1981 is computed as follows:
1. Add the amounts in the fiscal year 1979-1980 budget effective May 15, 1980 for
general operating and special education.
2. Subtract the following budgeted revenues from the sum obtained in paragraph 1 of
this subsection:
(a) Tuition paid for attendance of nonresident pupils.
(b) State assistance as provided in section 15-976.
(c) Special education revenues as provided in section 15-825, subsection D and
section 15-1204.
(d) Proceeds from the sale or lease of school property as provided in section
15-1102.
3. Add the increase in the base support level from fiscal year 1979-1980 to fiscal
year 1980-1981 to the difference obtained in paragraph 2 of this subsection.
B. The equalization factor for each school district is computed as follows:
1. Divide the sum obtained in subsection A, paragraph 3 of this section by the base
support level for fiscal year 1980-1981.
2. Subtract 1.0 from the quotient obtained in paragraph 1 of this subsection to
obtain the equalization factor.
C. The revenue variation factor for each fiscal year is as follows:
1. For fiscal year 1981-1982, 0.80.
2. For fiscal year 1982-1983, 0.60.
3. For fiscal year 1983-1984, 0.40.
4. For fiscal year 1984-1985, 0.20.
D. The base revenue control limit for each school district during the five years in
which the equalization plan is in operation is computed as follows:
1. Multiply the equalization factor by the revenue variation factor for the
applicable year. Beginning with fiscal year 1983-1984 if the resulting product is less
than negative 0.08, use negative 0.08 for computation purposes as provided in paragraph 2
of this subsection.
2. Multiply the product obtained in paragraph 1 of this subsection by the base
support level for the applicable year.
3. Add the base support level for the applicable year to the product obtained in
paragraph 2 of this subsection.
E. For fiscal year 1985-1986 and each fiscal year thereafter, the base revenue
control limit equals the base support level for the same fiscal year.
15-945 Transportation support level
A. The support level for to and from school for each school district for the
current year shall be computed as follows:
1. Determine the approved daily route mileage of the school district for the fiscal
year prior to the current year.
2. Multiply the figure obtained in paragraph 1 of this subsection by one hundred
seventy-five.
3. Determine the number of eligible students transported in the fiscal year prior
to the current year.
4. Divide the amount determined in paragraph 1 of this subsection by the amount
determined in paragraph 3 of this subsection to determine the approved daily route
mileage per eligible student transported.
5. Determine the classification in column 1 of this paragraph for the quotient
determined in paragraph 4 of this subsection. Multiply the product obtained in paragraph
2 of this subsection by the corresponding state support level for each route mile as
provided in column 2 of this paragraph.
Column 1 Column 2
Approved Daily Route State Support Level per
Mileage per Eligible Route Mile for
Student Transported Fiscal Year 2005-2006
0.5 or less $2.15
More than 0.5 through 1.0 $1.74
More than 1.0 $2.15
6. Add the amount spent during the prior fiscal year for bus tokens and bus passes
for students who qualify as eligible students as defined in section 15-901.
B. The support level for academic education, career and technical education,
vocational education and athletic trips for each school district for the current year is
computed as follows:
1. Determine the classification in column 1 of paragraph 2 of this subsection for
the quotient determined in subsection A, paragraph 4 of this section.
2. Multiply the product obtained in subsection A, paragraph 5 of this section by
the corresponding state support level for academic education, career and technical
education, vocational education and athletic trips as provided in column 2, 3 or 4 of
this paragraph, whichever is appropriate for the type of district.
Column 1 Column 2 Column 3 Column 4
Approved Daily Route
Mileage per Eligible District Type District Type District Type
Student Transported 02 or 03 04 05
0.5 or less 0.15 0.10 0.25
More than 0.5 through 1.0 0.15 0.10 0.25
More than 1.0 0.18 0.12 0.30
For the purposes of this paragraph, "district type 02" means a unified school district or
an accommodation school that offers instruction in grades nine through twelve, "district
type 03" means a common school district not within a high school district, "district type
04" means a common school district within a high school district or an accommodation
school that does not offer instruction in grades nine through twelve and "district type
05" means a high school district.
C. The support level for extended school year programs for pupils with disabilities
is computed as follows:
1. Determine the sum of the following:
(a) The total number of miles driven by all buses of a school district while
transporting eligible pupils with disabilities on scheduled routes from their residence
to the school of attendance and from the school of attendance to their residence on
routes for an extended school year program in accordance with section 15-881.
(b) The total number of miles driven on routes approved by the superintendent of
public instruction for which a private party, a political subdivision or a common or a
contract carrier is reimbursed for bringing an eligible pupil with a disability from the
place of the pupil's residence to a school transportation pickup point or to the school
facility of attendance and from the school transportation scheduled return point or from
the school facility to the pupil's residence for an extended school year program in
accordance with section 15-881.
2. Multiply the sum determined in paragraph 1 of this subsection by the state
support level for the district determined as provided in subsection A, paragraph 5 of
this section.
D. The transportation support level for each school district for the current year
is the sum of the support level for to and from school as determined in subsection A of
this section and the support level for academic education, career and technical
education, vocational education and athletic trips as determined in subsection B of this
section and the support level for extended school year programs for pupils with
disabilities as determined in subsection C of this section.
E. The state support level for each approved route mile, as provided in subsection
A, paragraph 5 of this section, shall be adjusted by the growth rate prescribed by law,
subject to appropriation. 15-946 Transportation revenue control limit
A. The transportation revenue control limit for each school district for the fiscal
years 1985-1986, 1986-1987 and 1987-1988 is computed as follows:
1. Determine the adopted operational expenditure budget for pupil transportation
for the fiscal year 1984-1985 effective January 1, 1985.
2. Determine the transportation revenue control limit for the school district for
the fiscal year 1984-1985 as provided in this section before April 18, 1985.
3. If the school district's transportation revenue control limit for the fiscal
year 1984-1985 as provided in paragraph 2 of this subsection is equal to or greater than
the amount determined in paragraph 1 of this subsection, the transportation revenue
control limit for the fiscal year 1985-1986 is the change in the transportation support
level from the fiscal year 1984-1985 to the fiscal year 1985-1986 plus the transportation
revenue control limit for the fiscal year 1984-1985 as provided in paragraph 2 of this
subsection. For the fiscal years 1986-1987 and 1987-1988 the transportation revenue
control limit is the transportation revenue control limit for the current year plus the
change in the transportation support level for the current year to the budget year.
4. If the school district's transportation revenue control limit for the fiscal
year 1984-1985 as provided in paragraph 2 of this subsection is less than the amount
determined in paragraph 1 of this subsection, the transportation revenue control limit
for the fiscal year 1985-1986 is the sum of the following:
(a) The transportation revenue control limit for the school district for the fiscal
year 1984-1985 as provided in paragraph 2 of this subsection.
(b) The change in the transportation support level from the fiscal year 1984-1985
to the fiscal year 1985-1986.
(c) One-third of the amount obtained by subtracting the transportation revenue
control limit for fiscal year 1984-1985 as provided in paragraph 2 of this subsection
from the amount determined in paragraph 1 of this subsection.
5. If the transportation revenue control limit of the school district for the
fiscal year 1984-1985 as provided in paragraph 2 of this subsection is less than the
amount determined in paragraph 1 of this subsection, the transportation revenue control
limit for the fiscal years 1986-1987 and 1987-1988 is the sum of the following:
(a) The transportation revenue control limit for the current year.
(b) The change in the transportation support level from the current year to the
budget year.
(c) One-third of the amount obtained by subtracting the transportation revenue
control limit for the fiscal year 1984-1985 as provided in paragraph 2 of this subsection
from the amount determined in paragraph 1 of this subsection.
B. The transportation revenue control limit for each school district for the fiscal
year 1988-1989 and each year thereafter shall be the transportation revenue control limit
for the current year plus the increase in the transportation support level from the
current year to the budget year. For a school district that sponsors a charter school,
its transportation revenue control limit for the budget year shall be calculated as
follows:
1. Calculate separately, as prescribed by the department of education, the total
transportation support level for the current year for all charter schools under the
district's sponsorship in the current year.
2. Calculate separately, as prescribed by the department of education, the total
transportation support level for the budget year for all charter schools under the
district's sponsorship in the budget year.
3. Subtract the amount determined in paragraph 2 of this subsection from the amount
determined in paragraph 1 of this subsection. If the result is zero or less, use zero in
paragraph 4 of this subsection.
4. Subtract the amount determined in paragraph 3 of this subsection from the
district's transportation revenue control limit for the current year. This is the
adjusted transportation revenue control limit for the current year.
5. The transportation revenue control limit for the budget year is the adjusted
transportation revenue control limit for the current year determined in paragraph 4 of
this subsection plus the increase in the transportation support level from the current
year to the budget year.
15-947.01 Revenue control limit; general budget limit; total capital budget limit for joint technological education districts
A. The revenue control limit and district support level for a joint technological
education district are equal to the base support level determined in section 15-943.02.
B. The general budget limit for each joint technological education district, for
each fiscal year, is the sum of the following:
1. The revenue control limit for the budget year.
2. The capital outlay revenue limit for the budget year.
3. Tuition revenues for attendance of nonresident pupils.
4. P.L. 81-874 assistance determined for children with disabilities, children with
specific learning disabilities and children residing on Indian lands as provided in
section 15-905, subsections K and O.
5. Expenditures for excess utility costs as provided in section 15-910.
C. The unrestricted capital budget limit for each joint technological education
district for the budget year is as provided in section 15-947, subsection D.
D. The soft capital allocation limit for each joint technological education
district for the budget year is as provided in section 15-947, subsection E.
15-947 Revenue control limit; district support level; general budget limit; unrestricted total capital budget limit; soft capital allocation limit
A. The revenue control limit for a school district is equal to the sum of the base
revenue control limit determined in section 15-944 and the transportation revenue control
limit determined in section 15-946.
B. The district support level for a school district is equal to the sum of the base
support level determined in section 15-943 and the transportation support level
determined in section 15-945.
C. The general budget limit for each school district, for each fiscal year, is the
sum of the following:
1. The maintenance and operations portion of the revenue control limit for the
budget year.
2. The maintenance and operation portion of the following amounts:
(a) Amounts that are fully funded by revenues other than a levy of taxes upon the
taxable property within the school district, as listed below:
(i) Amounts budgeted as the budget balance carryforward as provided in section
15-943.01.
(ii) Tuition revenues for attendance of nonresident pupils.
(iii) State assistance as provided in section 15-976.
(iv) Special education revenues as provided in section 15-825, subsection D and
section 15-1204.
(v) P.L. 81-874 assistance determined for children with disabilities, children with
specific learning disabilities and children residing on Indian lands as provided in
section 15-905, subsections K and O.
(vi) P.L. 81-874 administrative costs as provided in section 15-905, subsection P.
(vii) State assistance for excess tuition as provided in section 15-825.01.
(viii) Amounts received from the state board of education pursuant to section
15-973.01.
(b) Amounts approved pursuant to an override election as provided in section 15-481
for the applicable fiscal year.
(c) Expenditures for excess utility costs as provided in section 15-910.
(d) Amounts authorized by the county school superintendent pursuant to section
15-974, subsection C.
(e) Expenditures for complying with a court order of desegregation as provided in
section 15-910.
(f) Expenditures for the bond issues portion of the cost of tuition as provided in
section 15-910.
(g) Interest on registered warrants or tax anticipation notes as provided in
section 15-910.
(h) Amounts budgeted for a jointly owned and operated career and technical
education and vocational education center as provided in section 15-910.01.
(i) Amount of energy reduction adjustment pursuant to section 15-910.02.
3. The maintenance and operations portion of the capital outlay revenue limit for
the budget year.
4. Any other budget item that is budgeted in the maintenance and operation section
of the budget and that is specifically exempt from the revenue control limit or the
capital outlay revenue limit.
D. The unrestricted capital budget limit, for each school district for each fiscal
year, is the sum of the following:
1. The federal impact adjustment as determined in section 15-964 for the budget
year.
2. Any other budget item that is budgeted in the capital outlay section of the
budget and that is specifically exempt from the capital outlay revenue limit.
3. The capital portion of the amounts contained in subsection C, paragraph 2 of
this section.
4. The unexpended budget balance in the unrestricted capital outlay fund from the
previous fiscal year.
5. The net interest earned in the unrestricted capital outlay fund the previous
fiscal year.
E. The soft capital allocation limit for each school district for each fiscal year
is the sum of the following:
1. The soft capital allocation for the budget year.
2. The unexpended budget balance in the soft capital allocation fund from the
previous fiscal year.
3. The net interest earned in the soft capital allocation fund the previous fiscal
year. 15-948 Adjustment for growth in student count
A. Any school district may, after the first one hundred days or two hundred days in
session, as applicable, of the current year, determine if it is eligible to increase its
revenue control limit and district support level for the current year due to growth in
the student population as follows:
1. Determine the student count used for calculating the base support level for the
current year.
2. Determine the average daily membership or adjusted average daily membership,
whichever is applicable, through the first one hundred days or two hundred days in
session, as applicable, of the current year.
3. Subtract the amount determined in paragraph 1 of this subsection from the amount
determined in paragraph 2 of this subsection.
4. If the amount determined in paragraph 2 of this subsection is greater than the
amount determined in paragraph 1 of this subsection, the governing board of the school
district may compute an increase to its revenue control limit and district support level
for the current year.
B. A school district may, after the first one hundred days or two hundred days in
session, as applicable, of the current year, determine if it is eligible to compute an
increase to its revenue control limit for the current year due to growth in the number of
pupils in the group B categories of moderate or severe mental retardation, visual
impairment, hearing impairment, multiple disabilities, multiple disabilities with severe
sensory impairment, orthopedic impairment, preschool severe delay and emotionally
disabled pupils enrolled in private special education programs or in school district
programs for pupils with severe disabilities as follows:
1. Determine the weighted student count for all group B children with disabilities
used for calculating the base support level for the current year.
2. Determine the weighted average daily membership for all group B children with
disabilities through the first one hundred days or two hundred days in session, as
applicable, of the current year.
3. Subtract the amount determined in paragraph 1 of this subsection from the amount
determined in paragraph 2 of this subsection.
4. If the amount determined in paragraph 2 of this subsection is greater than the
amount determined in paragraph 1 of this subsection, the governing board of the school
district may compute an increase to its revenue control limit and district support level
for the current year by using the amount determined in paragraph 3 of this subsection for
the weighted student count and the base level for the district for the current year.
C. If a school district meets the criteria specified in subsection A or B of this
section, or both, the governing board of the school district may, after notice is given
and a public hearing held as provided in section 15-905, subsection D, at any time prior
to May 15 revise its budget to include the increase in its revenue control limit and
district support level for the current year utilizing the procedure prescribed in
subsection A or B of this section, or both. Not later than May 18, the budget as revised
shall be submitted electronically to the superintendent of public instruction.
D. If the revised budget is adopted by the governing board at the public hearing
and submitted electronically as provided in subsection C of this section, the school
district shall receive state aid based upon the adjusted revenue control limit or the
adjusted district support level in the manner specified in section 15-971, except that in
no event shall the school district receive less state aid than it would have received if
it had not used this section.
E. If the adjusted revenue control limit results in an expenditure of funds in
excess of school district revenues for the current year, the county school superintendent
shall include within the revenue estimate for the budget year funds necessary to meet the
liabilities incurred by the school district in the current year in excess of revenues
received for the current year. 15-949 Small school districts; exemption from general budget limit; budget revision
A. The governing board of a common school district with a student count in
kindergarten programs and grades one through eight of one hundred twenty-five or less,
the governing board of a high school district with a student count of one hundred or less
or the governing board of a unified school district or the county school superintendent
for an accommodation school with a student count of one hundred twenty-five or less in
kindergarten programs and grades one through eight or with a student count of one
hundred or less in grades nine through twelve shall compute a revenue control limit and a
general budget limit, but the governing board or the county school superintendent may:
1. Adopt a budget in excess of the general budget limit without the necessity of an
election under section 15-481, provided that for a unified school district or for an
accommodation school the excess amount of expenditures shall be attributable to the
student count in kindergarten programs and grades one through eight or to the student
count in grades nine through twelve as provided in this subsection.
2. Revise its budget to include the costs for additional pupils who were not
anticipated when the budget was adopted, if it receives permission as follows:
(a) If a governing board:
(i) The governing board shall send a petition to the county school superintendent
requesting authority to revise its budget. The petition shall include a copy of the
proposed budget.
(ii) The county school superintendent shall recommend the action to be taken on the
petition and forward the recommendation and the petition to the board of supervisors.
(iii) The board of supervisors shall hold a hearing on the petition within twenty
days after receipt of the petition and shall determine whether to allow the petition,
allow the petition after revision or deny the petition.
(b) If a county school superintendent, the county school superintendent shall send
the revised budget to the board of supervisors, and the board of supervisors shall hold a
hearing on the recommendation within twenty days after receipt of the recommendation and
shall determine whether to allow the revised budget, allow the revised budget after
further revision or deny the revision.
B. If the board of supervisors revises or denies the petition or recommendation
presented pursuant to subsection A, paragraph 2, subdivision (a), item (iii) or
subdivision (b) of this section the reasons for revision or denial shall be stated in
writing.
C. School districts that in any year after fiscal year 1984-1985 but before fiscal
year 1999-2000 have operated under the provisions of the small school adjustment as
provided for in subsection A of this section and that have subsequently exceeded the
student count limits expressed in subsection A of this section may continue in successive
years to adopt a budget greater than the general budget limit without the necessity of an
election under section 15-481, except that the amount greater than the general budget
limit shall not exceed fifty thousand dollars. The amount that is adopted without the
use of an election under section 15-481 and that is greater than the general budget limit
is specifically exempt from the revenue control limit.
D. Notwithstanding subsection C of this section, school districts that exceeded the
student count limits prescribed in subsection A of this section may adopt, in the first
year that these limits are exceeded, a budget that exceeds the general budget limit
without an election conducted pursuant to section 15-481 or pursuant to subsection E of
this section, except that the amount that exceeds the general budget limit shall not
exceed the amount authorized pursuant to subsection C of this section plus the limit
prescribed in subsection E of this section. The amount that is adopted without an
election and that exceeds the general budget limit is exempt from the revenue control
limit.
E. School districts that in any year after fiscal year 1998-1999 have operated
under the provisions of the small school adjustment as provided in subsection A of this
section and that have subsequently exceeded the student count limits prescribed in
subsection A of this section may continue in successive years to adopt a budget greater
than the general budget limit subject to an election, except that the amount that is
greater than the general budget limit shall not exceed the amount that is prescribed in
this subsection. The amount that is adopted pursuant to this subsection is specifically
exempt from the revenue control limit and shall be funded by a levy on secondary property
taxes in the school district. The maximum amount that may be adopted pursuant to this
subsection is computed as follows:
1. For a unified school district, separate the revenue control limit into
elementary and secondary components based on the weighted student count as provided in
section 15-971, subsection B, paragraph 2, subdivision (a). Use the elementary component
of the revenue control limit for the purposes of paragraph 2 of this subsection and the
secondary component of the revenue control limit for the purposes of paragraph 3 of this
subsection.
2. For a common or unified district that used the provisions of subsection A of
this section based on its elementary student count, the amount is determined as follows:
(a) Subtract one hundred twenty-five from the elementary student count.
(b) Multiply the difference in subdivision (a) of this paragraph by 0.45 per cent.
(c) Subtract the product determined in subdivision (b) of this paragraph from
thirty-five per cent. If the result is zero or less than zero, the district is not
eligible to use the provisions of this paragraph.
(d) Multiply the difference determined in subdivision (c) of this paragraph by the
elementary revenue control limit.
3. For a high school or unified district that used the provisions of subsection A
of this section based on its secondary student count, the amount is determined as
follows:
(a) Subtract one hundred from the secondary student count.
(b) Multiply the difference in subdivision (a) of this paragraph by 0.65 per cent.
(c) Subtract the product determined in subdivision (b) of this paragraph from
sixty-five per cent. If the result is zero or less than zero, the district is not
eligible to use the provisions of this paragraph.
(d) Multiply the difference determined in subdivision (c) of this paragraph by the
secondary revenue control limit.
4. For a unified school district that used the provisions of subsection A of this
section for both its elementary and secondary pupils, combine the amounts determined in
paragraphs 2 and 3 of this subsection.
F. For the purposes of subsection E of this section:
1. "Elementary" means kindergarten programs and grades one through eight.
2. "Secondary" means grades nine through twelve.
G. The part of the primary tax rate set to fund the small school district
adjustment as provided in subsections D and E of this section shall not be included in
the computation of additional state aid for education as prescribed in section 15-972.
H. The election required pursuant to subsection E of this section shall conform to
the procedural requirements for calling the election, preparing the informational report
and preparing the ballot as prescribed in section 15-481, subsections A, B, C and D. The
maximum number of years that a budget override approved pursuant to subsection E of this
section may be in effect is five years.
I. If the proposed budget override will be fully funded by a levy of taxes on the
taxable property within the school district, the ballot shall contain the words "budget
override, yes" and "budget override, no", and the voter shall signify the voter's desired
choice. The ballot shall also contain the amount of the proposed budget override compared
to the amount the school district budgeted in the preceding year and the amount the
school district would be allowed to budget for if the measure is not approved by the
voters. The statement shall also include the estimated amount of the override for each
year the override is sought. The ballot shall also include the following statement:
The budget override authorized by this election allows the
_______________ school district to levy property taxes in excess of the
property tax levy allowed by law to fund the school district's revenue control
limit. The property tax levy for the year for which adopted and for ____
subsequent years will be annually adjusted based on a formula that authorizes
the _______________ school district to exceed the revenue control limit by up
to thirty-five per cent for kindergarten programs and grades one through eight
or up to sixty-five per cent for grades nine through twelve. The levy shall
not be realized from monies furnished by the state and shall not be subject to
the limitation on taxes specified in article IX, section 18, Constitution of
ARIZONA. Based on an estimate of assessed valuation used for secondary
property tax purposes, the proposed override in the ________________ school
district's budget over that allowed by the revenue control limit would result
in an estimated increase in the school district's tax rate of
_________________ dollars per one hundred dollars of assessed valuation for
the secondary property tax purposes.
J. If the proposed budget override will be fully funded by revenues from other than
a levy of taxes on the taxable property within the school district, the ballot shall
contain the words "budget override, yes" and "budget override, no", and the voter shall
signify the voter's desired choice. The ballot shall also contain the amount of the
proposed budget override compared to the amount the school district budgeted in the
preceding year and the amount the school district would be allowed to budget for if the
measure is not approved by the voters. The statement shall also include the estimated
amount of the override for each year the override is sought. The ballot shall also
include the following statement:
Any budget override authorized by this election shall be entirely funded
by this school district with revenues from other than a levy of taxes on the
taxable property within the school district for the year for which adopted and
for ______ subsequent years and shall not be realized from monies furnished by
the state.
K. For the purposes of subsections H and I of this section, levy of taxes on the
taxable property does not include a levy of the government property lease or park
property lease excise taxes assessed pursuant to title 42, chapter 6, article 5.
15-950 Revenue control limits for new school districts
A resulting common, high or unified school district after consolidation of school
districts as provided in section 15-459, subsection B, paragraph 2 or 3 or subsection
H shall in the first budget year determine its allowable revenue control limit as
follows:
1. Determine the allowable revenue control limit for the budget year for each of
the school districts to be consolidated as it would have been in the absence of the
consolidation.
2. Add the revenue control limits determined in paragraph 1 of this section. The
sum is the revenue control limit of the resulting school district in the first year for
which a budget is computed.
15-951 Revenue control limit, capital outlay revenue limit, soft capital allocation, district support level and student count for a common school district not within a high school district
A. Notwithstanding section 15-947, the revenue control limit for a common school
district not within a high school district is the sum of the following:
1. The base revenue control limit computed as prescribed in section 15-944 but
excluding pupils admitted to another school district as provided in section 15-824,
subsection A, paragraph 2.
2. The tuition payable for high school pupils who attend school in another school
district as provided in section 15-824, subsection A, paragraph 2, including any
transportation charge, except as provided in subsection H of this section.
3. The transportation revenue control limit for all pupils who reside in the
district except those high school pupils transported by another district.
B. Notwithstanding subsection A of this section, for the purposes of sections
15-481, 15-482 and 15-1102, the revenue control limit for a common school district not
within a high school district is the sum of the following:
1. The base revenue control limit for pupils computed as prescribed in section
15-944 but excluding pupils admitted to another school district as provided in section
15-824, subsection A, paragraph 2.
2. The transportation revenue control limit for all pupils who reside in the
district except those high school pupils transported by another district.
C. Notwithstanding section 15-961, the capital outlay revenue limit for a common
school district not within a high school district is the capital outlay revenue limit
computed as prescribed in section 15-961 but excluding pupils who are admitted to another
school district as provided in section 15-824, subsection A, paragraph 2.
D. Notwithstanding section 15-962, the soft capital allocation for a common school
district not within a high school district is the soft capital allocation computed as
prescribed in section 15-962 but excluding pupils who are both admitted to another school
district as provided in section 15-824, subsection A, paragraph 2 and not transported by
the common school district.
E. Notwithstanding section 15-947, the district support level for a common school
district not within a high school district is the sum of the following:
1. The base support level computed as prescribed in section 15-943 but excluding
pupils who are admitted to another school district as provided in section 15-824,
subsection A, paragraph 2.
2. The tuition payable for high school pupils who are admitted to another school
district as provided in section 15-824, subsection A, paragraph 2, including any
transportation charge, except as provided in subsection H of this section.
3. The transportation support level for all pupils who reside in the school
district except those high school pupils transported by another school district.
F. For the purpose of determining eligibility to adjust the student count as
provided in section 15-942, the student count for a common school district not within a
high school district is the student count for pupils in the school district less the
student count for pupils enrolled in another school district as provided in section
15-824, subsection A, paragraph 2.
G. For the purpose of determining eligibility to increase the revenue control limit
and district support level or recompute the revenue control limit as provided in section
15-948, the student count for a common school district not within a high school district
is the student count for pupils in kindergarten programs and grades one through twelve,
including pupils enrolled in another school district as provided in section 15-824,
subsection A, paragraph 2.
H. The tuition amount in subsections A and E of this section shall not include
amounts per student count for bond issues as prescribed by section 15-824, subsection G,
paragraph 1, subdivision (c) in excess of the following:
1. One hundred fifty dollars if the pupil's school district of residence pays
tuition for seven hundred fifty or fewer pupils to other school districts.
2. Two hundred dollars if the pupil's school district of residence pays tuition for
one thousand or fewer, but more than seven hundred fifty pupils to other school
districts.
3. The actual cost per student count if the pupil's school district of residence
pays tuition for more than one thousand pupils to other school districts.
15-952 Additional monies for teacher compensation; definitions
A. The governing board of a school district may calculate its revenue control limit
and district support level for the budget year using the base level prescribed in section
15-901, subsection B, paragraph 2 increased by 1.25 per cent if granted approval by the
state board of education according to the following procedure:
1. If the governing board did not receive approval to increase the school
district's base level as provided in this section for the current year:
(a) The governing board shall submit evidence to the state board by May 1 that the
school district has met the following requirements:
(i) The school district's teacher performance evaluation system meets the standards
recommended by the state board as prescribed in section 15-537.
(ii) The persons evaluating teachers for retention decisions meet the minimum
qualifications for evaluators recommended by the state board as prescribed in section
15-537.
(b) The state board shall notify the governing board by June 1 whether it has met
the requirements and has preliminary approval to increase the school district's base
level for the budget year.
(c) If the governing board receives preliminary approval to increase the school
district's base level as prescribed in subdivision (b) of this paragraph for the budget
year and wishes to receive final approval, the governing board shall prepare and submit
to the state board by June 15 two proposed budgets as follows:
(i) One proposed budget showing the amount budgeted for teacher compensation if
final approval to increase the school district's base level is not granted.
(ii) One proposed budget showing the amount budgeted for teacher compensation if
final approval to increase the school district's base level is granted.
(d) If the school district's proposed budgets demonstrate that the governing board
has budgeted the additional monies for additional teacher compensation as provided in
this section, the state board shall give final approval to the governing board to
increase the school district's base level as provided in this section and shall notify
the governing board of the approval by July 1.
2. If the governing board received approval to increase the school district's base
level as provided in this section for the current year but not for the year before the
current year:
(a) The governing board shall submit evidence to the state board by February 1 that
the school district:
(i) Continues to meet the requirements prescribed in paragraph 1, subdivision (a)
of this subsection.
(ii) Adopted the budget for the current year which it submitted to the state board
as provided in paragraph 1, subdivision (c), item (ii) of this subsection.
(b) The state board shall notify the governing board by March 1 whether its
application to increase the base level is approved for the budget year.
3. If the governing board received approval to increase the school district's base
level as provided in this section for the current year and for the year before the
current year:
(a) The governing board shall submit evidence to the state board by February 1 that
the school district continues to meet the requirements prescribed in paragraph 1,
subdivision (a) of this subsection.
(b) The state board shall notify the governing board by March 1 whether its
application to increase the base level is approved for the budget year.
B. The state board shall prescribe the methods for demonstrating that the
requirements in subsection A of this section have been met.
C. For any fiscal year in which a governing board receives approval to increase the
school district's base level as provided in this section, the governing board may only
expend the additional monies for additional teacher compensation.
D. In this section:
1. "Additional monies" means the amount of the increase in the base support level
produced by increasing the base level as provided in subsection A of this section.
2. "Teacher compensation" means salaries and employee fringe benefits and other
nonsalary benefits for certificated teachers.
15-953 Increases in the base level
If a school district receives approval to calculate its budget using an increase in
the base level as provided in section 15-918 or 15-952 or any other law for a given
fiscal year, that increase in the base level applies only to the fiscal year for which
approval was given. In order to calculate its budget using an increase in the base level
for any subsequent fiscal year the school district must receive specific approval to do
so as prescribed by law.
15-954 Adjustment for tuition loss
A. The district may increase its base support level for tuition loss as prescribed
in subsection B of this section if all of the following apply:
1. A school district receives tuition for high school pupils from a school district
which is inside or outside of this state and which does not offer instruction in one or
more high school grade levels.
2. The school district which had received the tuition loses the tuition because the
other school district begins to offer instruction in one or more high school grade levels
not previously offered.
3. The number of pupils for whom the district loses the tuition is equal to at
least five per cent of the average daily membership of pupils educated by the district in
grades nine through twelve for the year prior to the year in which the other school
district begins to offer the instruction.
B. The maximum amount by which a district may increase its base support level for
tuition loss is determined as follows:
1. Determine the amount of tuition lost between the year before the other school
district begins to offer instruction, which is the base year, and the year after the base
year.
2. For the year after the base year, the maximum amount is seventy-five per cent of
the amount determined in paragraph 1.
3. For the second year after the base year, the maximum amount is fifty per cent of
the amount determined in paragraph 1.
4. For the third year after the base year, the maximum amount is twenty-five per
cent of the amount determined in paragraph 1.
C. If the resident school district is a joint unified district and phases in the
instruction over more than one year:
1. The computation prescribed by subsection A, paragraph 3 of this section shall be
made separately for each phase by dividing the number of pupils in the phase by the
average daily membership of pupils in grades nine through twelve who are educated by the
district of attendance in the year prior to the year in which the resident district
begins to offer instruction for this phase.
2. The base year and the maximum amounts determined pursuant to subsection B of
this section shall be computed separately for each phase.
3. The total increase in the base support level for a given fiscal year shall be
the sum of the computations for each phase calculated pursuant to paragraph 2 of this
subsection.
D. If the school district does not qualify for equalization assistance as provided
in section 15-971, the part of the primary property tax rate set to fund the tuition loss
as provided in this section shall not be included in the computation of additional state
aid revenues as prescribed in section 15-972.
15-961 Capital outlay revenue limit; growth rate
A. A capital outlay revenue limit per student count is established for fiscal year
1984-1985 as follows:
1. For kindergarten programs and grades one through eight multiply one hundred
fifty-five dollars by the weight which corresponds to the student count for kindergarten
programs and grades one through eight for the school district as provided in section
15-943, paragraph 1, subdivision (a), column 3. For a school district with a student
count of six hundred or more in kindergarten programs and grades one through eight
multiply one hundred fifty-five dollars by 1.158.
2. For grades nine through twelve multiply one hundred sixty-eight dollars by the
weight which corresponds to the student count for grades nine through twelve for the
school district as provided in section 15-943, paragraph 1, subdivision (b), column
3. For a school district with a student count of six hundred or more in grades nine
through twelve multiply one hundred sixty-eight dollars by 1.268.
3. For programs for preschool children with disabilities multiply one hundred
fifty-five dollars by 1.158.
B. For fiscal year 1985-1986 and each year thereafter the capital outlay revenue
limit prescribed in subsection A of this section shall be adjusted by the growth rate
prescribed by law, subject to appropriation.
C. For fiscal year 1985-1986 and each year thereafter the capital outlay revenue
limit for a school district shall be computed as follows:
1. Select the applicable capital outlay revenue limit or limits per student count
for the school district.
2. Multiply the amount or amounts selected in paragraph 1 of this subsection by the
appropriate student count of the school district. The student count of the school
district shall not include any pupils in a charter school sponsored by the district
pursuant to section 15-185, subsection A, paragraph 3.
3. If a school district's student count used for the budget year is greater than
one hundred five per cent of the student count used for the current year's budget,
increase the adjusted capital outlay revenue limit determined in paragraph 2 of this
subsection by the actual percentage increase in the school district's student count.
D. For fiscal year 1985-1986 and each year thereafter, an amount for the purchase
of required textbooks and related printed subject matter materials shall be used to
increase the capital outlay revenue limit for a school district as determined in
subsection C, paragraph 2 or 3 of this section, whichever is applicable. For fiscal year
1985-1986, the funding level is fifty-seven dollars fifty cents. For fiscal year
1986-1987 and each year thereafter, the funding level is the funding level of the
previous year adjusted by the growth rate prescribed by law, subject to
appropriation. The amount to be added to the amount in subsection C, paragraph 2 or 3 of
this section, whichever is applicable, to determine the capital outlay revenue limit for
a school district is computed as follows:
1. For fiscal year 1985-1986, multiply the student count in grade nine by the
funding level for the applicable year as prescribed in this subsection.
2. For fiscal year 1986-1987, multiply the student count in grades nine and ten by
the funding level for the applicable year as prescribed in this subsection.
3. For fiscal year 1987-1988, multiply the student count in grades nine through
eleven by the funding level for the applicable year as prescribed in this subsection.
4. For fiscal year 1988-1989 and each year thereafter, multiply the student count
in grades nine through twelve by the funding level for the applicable year as prescribed
in this subsection.
15-962.01 Capital outlay revenue limit and soft capital allocation for joint technological education districts; district soft capital allocation fund
A. The capital outlay revenue limit for a joint technological education district
shall be the amount for students in grades nine through twelve for districts with a
student count of six hundred or more as prescribed in section 15-961.
B. The soft capital allocation for a joint technological education district shall
be the amount for students in grades nine through twelve for districts with a student
count of six hundred or more as prescribed in section 15-962.
C. Joint technological education districts shall establish a district soft capital
allocation fund and shall use the monies only for the purposes prescribed in section
15-962, subsection D. The ending unexpended budget balance in the district's soft
capital allocation fund may be used in following fiscal years for short-term capital
items. Districts shall provide to the superintendent of public instruction an itemized
accounting on forms provided by the department of education that details the expenditures
of soft capital allocation monies at each school in the joint technological education
district. The superintendent of public instruction shall forward a copy of the report to
the school facilities board established by section 15-2001.
15-962 Soft capital allocation
A. A soft capital allocation per student count is established for fiscal year
1999-2000, as follows:
1. For kindergarten programs and grades one through eight, multiply one hundred
ninety-four dollars thirty cents by the weight which corresponds to the student count for
kindergarten programs and grades one through eight for the school district as provided in
section 15-943, paragraph 1, subdivision (a), column 3.
2. For grades nine through twelve, multiply one hundred ninety-four dollars thirty
cents by the weight which corresponds to the student count as provided in section 15-943,
paragraph 1, subdivision (a), column 3.
3. For a school district with a student count of six hundred or more in
kindergarten programs and grades one through eight or grades nine through twelve,
multiply one hundred ninety-four dollars thirty cents by 1.158.
4. For programs for preschool children with disabilities, multiply one hundred
ninety-four dollars thirty cents by 1.158.
B. Beginning with fiscal year 1999-2000, the soft capital allocation prescribed in
subsection A of this section shall be adjusted by the growth rate prescribed by law,
subject to appropriation.
C. Beginning in fiscal year 1999-2000, the soft capital allocation for a school
district is computed as follows:
1. Select the applicable soft capital allocation per student count for the school
district as provided in subsection A of this section.
2. Multiply the amount selected in paragraph 1 of this subsection by the
appropriate student count of the school district. The student count of the school
district shall not include any pupils in a charter school sponsored by the school
district pursuant to section 15-185, subsection A, paragraph 3.
D. A school district shall receive its soft capital allocation in the amount
determined in this section from monies appropriated for this purpose to the department of
education. Soft capital allocation monies shall only be used for short-term capital
items that are required to meet academic adequacy standards such as technology,
textbooks, library resources, instructional aids, pupil transportation vehicles,
furniture and equipment. School districts shall not use any portion of soft capital
allocation monies for maintenance and operation expenses. School districts may use soft
capital allocation monies to meet administrative soft capital purposes after complying
with the adequacy standards prescribed in section 15-2011.
E. School districts shall establish a district soft capital allocation fund and
shall use the monies only for the purposes prescribed in subsection D of this
section. The ending unexpended budget balance in the school district's soft capital
allocation fund may be used in following fiscal years for short-term capital items.
School districts shall provide to the superintendent of public instruction an itemized
accounting on forms provided by the department of education that details the expenditures
of soft capital allocation monies at each school in the district. The superintendent of
public instruction shall forward a copy of the report to the school facilities board
established by section 15-2001.
F. A school district governing board may petition the state board of education for
authority to budget and accumulate for school construction, building renovation or soft
capital purposes a portion of the prior year's ending cash balance, not to exceed the
amount of P.L. 81-874 monies which the school district was entitled to receive in the
prior year, as computed by the superintendent of public instruction, if:
1. The governing board filed with the United States department of education
division of impact aid an approved application for federal assistance for construction
under P.L. 81-815 for the current or budget year and has been advised by the division of
impact aid that no federal monies are available to fund its application.
2. The school district has a computed assessed valuation per pupil which is below
the median amount computed by the superintendent of public instruction for all school
districts.
3. The governing board has used any available revenues to reduce its primary tax
rate to zero for any year in which it petitions to budget and accumulate monies received
under P.L. 81-874 for school construction purposes.
The state board of education may grant approval to a school district governing board to
annually budget in the unrestricted capital outlay section of the budget a portion of the
cash balance, not to exceed the amount of P.L. 81-874 monies which the school district
was entitled to receive in the prior year as computed by the superintendent of public
instruction.
G. The state board of education shall not include in the aggregate expenditures of
local revenues as determined in section 15-911 the amount of revenues collected pursuant
to the soft capital allocation limit. The amount of revenues collected for the soft
capital allocation limit is the capital levy as authorized by law.
15-963 Capital transportation adjustment for small school districts
A. A school district may apply to the state board of education for a capital
transportation adjustment for the purchase of a transportation vehicle if the district
meets all of the following requirements:
1. Has a student count of fewer than six hundred in kindergarten programs and
grades one through twelve.
2. Transports as eligible students at least one-third of the total student count of
the school district.
3. Has an approved daily route mileage per eligible student transported of more
than 1.0, computed as prescribed in section 15-945, subsection A, paragraph 4.
B. If a school district receives a capital transportation adjustment as provided in
this section, the soft capital allocation limit for that district shall be equal to the
capital levy revenue limit or the soft capital allocation limit determined as prescribed
in section 15-962 plus any additional amount approved by the state board of education.
C. The state board of education may grant a capital transportation adjustment to a
school district which meets the qualifications prescribed in subsection A of this
section, except that the total amount of all additional amounts approved as capital
transportation adjustments for all school districts for a fiscal year shall not exceed
twenty per cent of the total amount which a county may budget for that fiscal year in all
small district service program funds as provided in section 15-365, subsection F.
15-964 Federal impact adjustment
A. The governing board of a school district may compute a federal impact adjustment
to the unrestricted capital budget limit. The maximum amount of the federal impact
adjustment is the sum of the following:
1. Twenty-five per cent of the monies received from forest reserve funds by the
school district in the prior fiscal year as provided in section 41-736.
2. For a school district that is not an accommodation school, the lesser of:
(a) Twenty-five per cent of the P.L. 81-874 revenues received in the prior fiscal
year.
(b) The total amount of P.L. 81-874 revenues received in the prior fiscal year
minus the sum of the following:
(i) The amount of P.L. 81-874 assistance used to increase the general budget limit
as provided in section 15-905, subsections K and O for the prior fiscal year.
(ii) The amount budgeted for P.L. 81-874 administrative costs as provided in
section 15-905, subsection P for the current year.
(iii) The amount budgeted for principal and interest on impact aid revenue bonds
pursuant to section 15-2104 for the current year.
B. The federal impact adjustment shall only be budgeted and expended for new
construction, major renovation of buildings or soft capital.
C. The governing board may not compute a federal impact adjustment for any year in
which it budgets as provided in section 15-962, subsection F.
D. If the governing board underestimated the amount of the federal impact
adjustment for the current year, the board may adjust the unrestricted capital budget
limit and the budget before May 15. If the board overestimated the amount of the federal
impact adjustment for the current year, the board shall adjust the unrestricted capital
budget limit and the budget before May 15. Not later than May 18, the budget as revised
shall be submitted electronically to the superintendent of public instruction.
15-965 Schools; impact aid; teacher housing
Notwithstanding any other law, a school district that receives federal impact aid
may use those monies for maintenance and renovation of teacher housing and may transfer
those monies into the teacherage account.
15-971 Determination of equalization assistance payments from county and state funds for school districts
A. Equalization assistance for education is computed by determining the total of
the following:
1. The lesser of a school district's revenue control limit or district support
level as determined in section 15-947 or 15-951.
2. The capital outlay revenue limit of a school district as determined in section
15-951 or 15-961.
3. The soft capital allocation of a school district as determined in section 15-951
or 15-962.
B. From the total of the amounts determined in subsection A of this section
subtract:
1. The amount that would be produced by levying the applicable qualifying tax rate
determined pursuant to section 41-1276 for a high school district or a common school
district within a high school district which does not offer instruction in high school
subjects as provided in section 15-447.
2. The amount that would be produced by levying the applicable qualifying tax rate
determined pursuant to section 41-1276 for a unified school district, a common school
district not within a high school district or a common school district within a high
school district which offers instruction in high school subjects as provided in section
15-447. The qualifying tax rate shall be applied in the following manner:
(a) For the purposes of the amount determined in subsection A, paragraph 1 of this
section:
(i) Determine separately the percentage that the weighted student count in
preschool programs for children with disabilities, kindergarten programs and grades one
through eight and the weighted student count in grades nine through twelve is to the
weighted student count determined in subtotal A as provided in section 15-943, paragraph
2, subdivision (a).
(ii) Apply the percentages determined in item (i) of this subdivision to the amount
determined in subsection A, paragraph 1 of this section.
(b) For the purposes of the amounts determined in subsection A, paragraphs 2 and 3
of this section determine separately the amount of the capital outlay revenue limit and
the amount of the soft capital allocation attributable to the student count in preschool
programs for children with disabilities, kindergarten programs and grades one through
eight and grades nine through twelve.
(c) From the amounts determined in subdivisions (a) and (b) of this paragraph
subtract the levy which would be produced by the current qualifying tax rate for a high
school district or a common school district within a high school district that does not
offer instruction in high school subjects as provided in section 15-447. If the
qualifying tax rate generates a levy which is in excess of the total determined in
subsection A of this section, the school district shall not be eligible for equalization
assistance. In this subsection "assessed valuation" includes the values used to
determine voluntary contributions collected pursuant to title 9, chapter 4, article 3 and
title 48, chapter 1, article 8.
3. The amount that would be produced by levying a qualifying tax rate in a joint
vocational and technological education district, which shall be five cents per one
hundred dollars assessed valuation unless the legislature sets a lower rate by law.
4. The amount of government property lease excise tax monies that were distributed
to the district pursuant to section 42-6205 during the preceding fiscal year.
C. County aid for equalization assistance for education shall be computed as
follows:
1. Determine the total equalization assistance for all school districts in the
county as provided in subsections A and B of this section.
2. Determine the total amount of county aid collected for all school districts in
the county as provided in section 15-994.
3. Divide the amount determined in paragraph 2 of this subsection by the amount
determined in paragraph 1 of this subsection.
4. Multiply the amount determined in subsections A and B of this section by the
quotient determined in paragraph 3 of this subsection for each school district.
5. The amount determined in paragraph 4 of this subsection shall be the county aid
for equalization assistance for education for a school district.
D. State aid for equalization assistance for education for a school district shall
be computed as follows:
1. Determine the equalization assistance for education for a school district as
provided in subsections A and B of this section.
2. For each county, determine the levy that would be produced by the tax rate for
equalization assistance for education prescribed in section 15-994, subsection A.
3. For each county, determine the total amount to be paid from monies collected
from the tax levy for equalization assistance for education into the small district
service program fund as prescribed by section 15-365 and into the detention center
education fund as prescribed by section 15-913.
4. Subtract the amount determined in paragraph 3 of this subsection from the amount
determined in paragraph 2 of this subsection.
5. Prorate the amount determined in paragraph 4 of this subsection to each school
district in the county as prescribed by subsection C of this section.
6. Subtract the amount determined in paragraph 5 of this subsection from the amount
determined in paragraph 1 of this subsection.
E. Equalization assistance for education shall be paid from appropriations for that
purpose to the school districts as provided in section 15-973.
F. A school district shall report expenditures on approved career and technical
education and vocational education programs in the annual financial report according to
uniform guidelines prescribed by the uniform system of financial records and in order to
facilitate compliance with sections 15-255 and 15-904.
G. The additional weight for state aid purposes given to special education as
provided in section 15-943 shall be given to school districts only if special education
programs comply with the provisions of chapter 7, article 4 of this title and the
conditions and standards prescribed by the superintendent of public instruction pursuant
to rules of the state board of education for pupil identification and placement pursuant
to sections 15-766 and 15-767.
H. In addition to general fund appropriations, all amounts received pursuant to
section 37-521, subsection B, paragraph 3 and section 42-5029, subsection E, paragraph 5
and from any other source for the purposes of this section are appropriated for state aid
to schools as provided in this section.
I. The total amount of state monies that may be spent in any fiscal year for state
equalization assistance shall not exceed the amount appropriated or authorized by section
35-173 for that purpose. This section shall not be construed to impose a duty on an
officer, agent or employee of this state to discharge a responsibility or to create any
right in a person or group if the discharge or right would require an expenditure of
state monies in excess of the expenditure authorized by legislative appropriation for
that specific purpose.
15-972 State limitation on homeowner property taxes; additional state aid to school districts; definition
A. Notwithstanding section 15-971, there shall be additional state aid for
education computed for school districts as provided in subsection B of this section.
B. The clerk of the board of supervisors shall compute such additional state aid
for education as follows:
1. For a high school district or for a common school district within a high school
district which does not offer instruction in high school subjects as provided in section
15-447:
(a) Determine the tax rate for primary property taxes for the school district which
would be levied in lieu of the provisions of this section.
(b) Determine the following percentage of the tax rate determined in subdivision
(a) of this paragraph:
(i) Thirty-five per cent through December 31, 2005.
(ii) Thirty-six per cent beginning from and after December 31, 2005 through
December 31, 2006.
(iii) Thirty-seven per cent beginning from and after December 31, 2006 through
December 31, 2007.
(iv) Thirty-eight per cent beginning from and after December 31, 2007 through
December 31, 2008.
(v) Thirty-nine per cent beginning from and after December 31, 2008 through
December 31, 2009.
(vi) Forty per cent beginning from and after December 31, 2009.
(c) Select the lesser of the amount determined in subdivision (b) of this paragraph
or the current qualifying tax rate for the district.
(d) Multiply the rate selected in subdivision (c) of this paragraph as a rate per
one hundred dollars assessed valuation by the assessed valuation used for primary
property taxes of the residential property in the school district.
2. For a unified school district, for a common school district not within a high
school district or for a common school district which offers instruction in high school
subjects as provided in section 15-447:
(a) Determine the tax rate for primary property taxes for the school district which
would be levied in lieu of the provisions of this section.
(b) Determine the following percentage of the tax rate determined in subdivision
(a) of this paragraph:
(i) Thirty-five per cent through December 31, 2005.
(ii) Thirty-six per cent beginning from and after December 31, 2005 through
December 31, 2006.
(iii) Thirty-seven per cent beginning from and after December 31, 2006 through
December 31, 2007.
(iv) Thirty-eight per cent beginning from and after December 31, 2007 through
December 31, 2008.
(v) Thirty-nine per cent beginning from and after December 31, 2008 through
December 31, 2009.
(vi) Forty per cent beginning from and after December 31, 2009.
(c) Select the lesser of the amount determined in subdivision (b) of this paragraph
or the current qualifying tax rate for the district.
(d) Multiply the rate selected in subdivision (c) of this paragraph as a rate per
one hundred dollars assessed valuation by the assessed valuation used for primary
property taxes of the residential property in the district.
C. The clerk of the board of supervisors shall report to the department of revenue
not later than the Friday following the third Monday in August of each year the amount by
school district of additional state aid for education and the data used for computing the
amount as provided in subsection B of this section. The department of revenue shall
verify all of the amounts and report to the county board of supervisors not later than
August 30 of each year the property tax rate or rates which shall be used for property
tax reduction as provided in subsection E of this section.
D. The board of supervisors shall reduce the property tax rate or rates that would
be levied in lieu of the provisions of this section by the school district or districts
on the assessed valuation used for primary property taxes of the residential property in
the school district or districts by the rate or rates selected in subsection B, paragraph
1, subdivision (c) and paragraph 2, subdivision (c) of this section. The excess of the
reduction in property taxes for a parcel of property resulting from the reduction in the
property tax rate pursuant to this subsection over the amounts listed in this subsection
shall be deducted from the amount of additional state aid for education. The reduction in
property taxes on a parcel of property resulting from the reduction in the property tax
rate pursuant to this subsection shall not exceed the following amounts except as
provided in subsection I of this section:
1. Five hundred dollars through December 31, 2005.
2. Five hundred twenty dollars beginning from and after December 31, 2005 through
December 31, 2006.
3. Five hundred forty dollars beginning from and after December 31, 2006 through
December 31, 2007.
4. Five hundred sixty dollars beginning from and after December 31, 2007 through
December 31, 2008.
5. Five hundred eighty dollars beginning from and after December 31, 2008 through
December 31, 2009.
6. Six hundred dollars beginning from and after December 31, 2009.
E. Prior to the levying of taxes for school purposes the board of supervisors shall
determine whether the total primary property taxes to be levied for all taxing
jurisdictions on each parcel of residential property, in lieu of the provisions of this
subsection, violate article IX, section 18, Constitution of ARIZONA. For those properties
that qualify for property tax exemptions pursuant to article IX, sections 2, 2.1 and 2.2,
Constitution of ARIZONA, eligibility for the credit is determined on the basis of the
limited property value that corresponds to the taxable assessed value after reduction for
the applicable exemption. If the board of supervisors determines that such a situation
exists, the board shall apply a credit against the primary property taxes due from each
such parcel in the amount in excess of article IX, section 18, Constitution of ARIZONA.
Such excess amounts shall also be additional state aid for education for the school
district or districts in which such parcel of property is located.
F. The clerk of the board of supervisors shall report to the department of revenue
not later than September 5 of each year the amount by school district of additional state
aid for education and the data used for computing the amount as provided in subsection B
of this section. The department of revenue shall verify all of the amounts and report to
the board of supervisors not later than September 10 of each year the property tax rate
which shall be used for property tax reduction as provided in subsection E of this
section.
G. The clerk of the board of supervisors shall report to the department of revenue
not later than September 30 of each year in writing the following:
1. The data processing specifications used in the calculations provided for in
subsections B and E of this section.
2. At a minimum, copies of two actual tax bills for residential property for each
distinct tax area.
H. The department of revenue shall report to the state board of education not later
than October 12 of each year the amount by school district of additional state aid for
education as provided in this section. The additional state aid for education provided
in this section shall be apportioned as provided in section 15-973, except that payments
for additional state aid for education for unsecured property shall be paid on the
fifteenth day of the month based on claims submitted by the department of revenue. The
department of revenue shall submit claims for unsecured property before the first day of
each month for which payments are requested.
I. If a parcel of property is owned by a cooperative apartment corporation or is
owned by the tenants of a cooperative apartment corporation as tenants in common, the
reduction in the property taxes prescribed in subsection D of this section shall not
exceed the amounts listed in subsection D of this section for each owner occupied housing
unit on the property. The assessed value used for determining the reduction in taxes for
the property is equal to the total assessed value of the property times the ratio of the
number of owner occupied housing units to the total number of housing units on the
property. For the purposes of this subsection, "cooperative apartment corporation" means
a corporation:
1. Having only one class of outstanding stock.
2. All of the stockholders of which are entitled, solely by reason of their
ownership of stock in the corporation, to occupy for dwelling purposes apartments in a
building owned or leased by such corporation and who are not entitled, either
conditionally or unconditionally, except upon a complete or partial liquidation of the
corporation, to receive any distribution not out of earnings and profits of the
corporation.
3. Eighty per cent or more of the gross income of which is derived from
tenant-stockholders. For the purposes of this paragraph, "gross income" means gross
income as defined by the United States internal revenue code, as defined in section
43-105.
J. The total amount of state monies that may be spent in any fiscal year for state
aid for education in this section shall not exceed the amount appropriated or authorized
by section 35-173 for that purpose. This section shall not be construed to impose a duty
on an officer, agent or employee of this state to discharge a responsibility or to create
any right in a person or group if the discharge or right would require an expenditure of
state monies in excess of the expenditure authorized by legislative appropriation for
that specific purpose.
K. For the purposes of this section, "residential property" means residential
property as defined in article IX, section 18, subsection (1), Constitution of ARIZONA,
except that it does not mean leased or rented property that is listed as class four
pursuant to section 42-12004.
15-973.01 Assistance for education fund
A. The assistance for education fund is established consisting of monies received
pursuant to section 43-617.
B. The state board of education shall administer the fund. On notice from the
state board, the state treasurer shall invest and divest monies in the fund as provided
by section 35-313 and monies earned from investments shall be credited to the
fund. Monies in the fund:
1. Are continuously appropriated to the state board of education.
2. Are exempt from the provisions of section 35-190, relating to lapsing of
appropriations.
C. The state board of education shall distribute monies in the fund to school
districts at the same time, in the same manner and in the same proportions as state aid
from appropriations made pursuant to section 15-973.
D. Monies in the fund shall not be used to reduce the general fund requirement for
state aid.
15-973 Apportionment of funds; expenditure limitation
A. The state board of education shall apportion state aid from appropriations made
for such purpose to the several counties on the basis of state aid entitlement for the
school districts in each county. No allowance shall be made for nonresident alien
children nor for wards of the United States for whom tuition is paid, but attendance of a
student in a school of a county adjoining the county of his residence outside the state
under a certificate of educational convenience as provided by section 15-825 shall be
deemed to be enrollment in the school of the county or school district of his residence.
B. Apportionments shall be made as follows:
1. On July 15, one-twelfth of the total amount to be apportioned during the fiscal
year.
2. On September 15, one-twelfth of the total amount to be apportioned during the
fiscal year.
3. On October 15, one-twelfth of the total amount to be apportioned during the
fiscal year.
4. On December 15, one-twelfth of the total amount to be apportioned during the
fiscal year.
5. On January 15, one-twelfth of the total amount to be apportioned during the
fiscal year.
6. On February 15, one-twelfth of the total amount to be apportioned during the
fiscal year.
7. On March 15, one-twelfth of the total amount to be apportioned during the fiscal
year.
8. On April 15, one-sixth of the total amount to be apportioned during the fiscal
year.
9. On May 15, one-sixth of the total amount to be apportioned during the fiscal
year.
10. On June 15, one-twelfth of the total amount to be apportioned during the fiscal
year, except that if the total amount of monies available to make the payment is less
than the amount of the payment, a portion of the June 15 payment may be delayed no later
than June 30 to allow for the receipt of income from the permanent state common school
fund.
The superintendent of public instruction shall furnish to the county treasurer and the
county school superintendent an abstract of the apportionment and shall certify the
apportionment to the department of administration, which shall draw its warrant in favor
of the county treasurer of each county for the amount apportioned. Upon receipt of the
warrant the county treasurer shall notify the county school superintendent of the amount,
together with any other monies standing to the credit of such school district in the
county school fund.
C. Notwithstanding the provisions of subsection B of this section, if sufficient
appropriated funds are available and on a showing by a school district that additional
state monies are necessary for current expenses, an apportionment or part of an
apportionment of state aid may be paid to the school district prior to the date set for
such apportionment by subsection B of this section. After the first forty days in
session of the current year a school district may request additional state monies to fund
the increased state aid due to anticipated student growth through the first one hundred
days or two hundred days in session, as applicable, of the current year as provided in
section 15-948. In no event shall a school district have received more than
three-fourths of its total apportionment before April 15 of the fiscal year. Early
payments pursuant to this subsection must be approved by the state treasurer, the
director of the department of administration and the superintendent of public
instruction. If the computation of state aid for an accommodation school is based on
P.L. 81-874 monies to be received in the current year pursuant to section 15-974,
subsection A, paragraph 2, the maximum early payment to an accommodation school shall be
determined using an estimate of the P.L. 81-874 monies to be received during the fiscal
year.
D. Until June 30, 1999, at such time and as provided by federal law or regulation,
state aid shall be reduced as follows:
1. The superintendent of public instruction shall compute the amount of monies
which each school district is eligible to receive under P.L. 81-874, less P.L. 81-874
monies for children with disabilities, children with specific learning disabilities and
children residing on Indian lands which are in addition to the basic assistance as
provided in 20 United States Code section 238(d)2(C) and (D), and for which monies have
been appropriated.
2. The superintendent of public instruction shall deduct from state aid for each
school district which is eligible to receive monies under P.L. 81-874 and for which
monies are appropriated as provided in paragraph 1 of this subsection the lesser of:
(a) The maximum allowed by law or regulation.
(b) The amount computed as follows:
(i) For fiscal year 1982-1983, twenty-five per cent of the amount computed in
paragraph 1 of this subsection.
(ii) For fiscal year 1983-1984, fifty per cent of the amount computed in paragraph
1 of this subsection.
(iii) For fiscal year 1984-1985, seventy-five per cent of the amount computed in
paragraph 1 of this subsection.
(iv) Beginning with fiscal year 1985-1986, ninety-five per cent of the amount
computed in paragraph 1 of this subsection.
3. The reduction in state aid shall be made from equalization assistance as
prescribed in section 15-971 or from additional state aid as prescribed in section 15-972
during the fiscal year following the fiscal year in which the monies are received. The
superintendent of public instruction shall make additional adjustments in state aid for
allowable deductions which were not made in any previous fiscal year which is not more
than five years earlier than the year in which the adjustments are made. The
superintendent of public instruction shall give the school district prior notice of the
intention to make the additional adjustments and may distribute the adjustments over more
than one year after considering the effects of the adjustments on the school district.
E. The superintendent of public instruction shall not make application to the
federal government to utilize P.L. 81-874 monies in determining the apportionment
prescribed in this section.
F. If a school district which is eligible to receive monies pursuant to this
article is unable to meet a scheduled payment on any lawfully incurred long-term
obligation for debt service as provided in section 15-1022, the county treasurer shall
use any amount distributed pursuant to this section to make the payment. The county
treasurer shall keep a record of all the instances in which a payment is made pursuant to
this subsection. Any monies subsequently collected by the district to make the scheduled
payment shall be used to replace the amount diverted pursuant to this subsection. When
determining the total amount to be funded by a levy of secondary taxes upon property
within the school district for the following fiscal year, the county board of supervisors
shall add to the amounts budgeted to be expended during the following fiscal year an
amount equal to the total of all payments pursuant to this subsection during the current
fiscal year which were not repaid during the current year.
G. The total amount of state monies that may be spent in any fiscal year by the
state board of education for apportionment of state aid for education shall not exceed
the amount appropriated or authorized by section 35-173 for that purpose. This section
shall not be construed to impose a duty on an officer, agent or employee of this state to
discharge a responsibility or to create any right in a person or group if the discharge
or right would require an expenditure of state monies in excess of the expenditure
authorized by legislative appropriation for that specific purpose.
15-974 Equalization assistance for education for accommodation schools; definition
A. Equalization assistance for education for accommodation schools shall be
computed as follows:
1. Determine the total of the lesser of an accommodation school's revenue control
limit or district support level as determined in section 15-947, an accommodation
school's capital outlay revenue limit as determined in section 15-961 and an
accommodation school's soft capital allocation as determined in section 15-962.
2. From the amount determined in paragraph 1 of this subsection subtract the monies
received from P.L. 81-874 for the prior fiscal year if the amount to be received in the
current fiscal year is equal to or greater than the amount received in the prior fiscal
year. If the amount to be received during the current fiscal year is less than the
amount received in the prior fiscal year, the subtraction shall be determined as follows:
(a) Subtract the amount to be received in the current fiscal year, adjusting the
final payment to reflect actual receipts during the fiscal year.
(b) If additional P.L. 81-874 monies are received after the computation of the last
payment of state aid but before the end of the fiscal year, the amount received late
shall be subtracted from the equalization assistance for the following fiscal year,
except that the total amount reduced pursuant to subdivision (a) of this paragraph and
this subdivision shall not exceed the amount of P.L. 81-874 monies received in the prior
year.
3. Equalization assistance for an accommodation school shall be the amount
determined in paragraph 2 of this subsection.
B. Equalization assistance for education for accommodation schools shall be paid
from appropriations for that purpose to the school districts as provided in section
15-973.
C. When an accommodation school has a positive total cash balance at the end of a
fiscal year in its maintenance and operation fund, the county school superintendent of
the county in which the accommodation school is located may authorize an addition to the
accommodation school's revenue control limit as provided in section 15-947, subsection A
for the following fiscal year. The county school superintendent may not authorize an
addition that exceeds the lesser of the ending cash balance less the amount budgeted for
the budget balance carryforward as provided in section 15-943.01 or ten per cent of the
revenue control limit of the accommodation school. If an accommodation school has a cash
balance in excess of the amount needed to fund the budget balance carryforward, the
addition authorized pursuant to this subsection and the items listed in section 15-947,
subsection C, paragraph 2, subdivisions (c) and (f) for the following fiscal year, the
remaining cash balance shall be used to reduce the amount of state aid for equalization
assistance for education for the accommodation school as provided in section 15-971,
subsection D for the following year.
D. The provisions of subsection C of this section shall not apply to an
accommodation school with a student count of one hundred twenty-five or less in
kindergarten programs and grades one through eight or to an accommodation school which
offers instruction in grades nine, ten, eleven or twelve and which has a student count of
one hundred or less in grades nine through twelve.
E. For the purpose of this section, "monies received from P.L. 81-874" means total
P.L. 81-874 monies less P.L. 81-874 monies for children with disabilities, children with
specific learning disabilities and children residing on Indian lands which are in
addition to the basic assistance as provided in 20 United States Code section 238,
subsection (d), paragraph 2, clauses (C) and (D).
15-975 Method of determining funds payable to a joint common school district
In determining the amount of state, county and federal monies or school aid payable
to a joint common school district, the portion of the territory of the joint common
school district within each county shall be regarded as a separate school district lying
within such county. Records of student count shall be kept as to make readily
ascertainable the attendance of pupils residing in the portion of the school district in
each county. The forms and reports required by law to be filed shall be appropriately
filed. Student enrollment and attendance information required by this subsection shall
be submitted electronically to the superintendent of public instruction in a format
provided. For purposes of applying to a joint common school district the provisions of
section 15-101, "assessed valuation" means the net valuation of the part of the school
district in the county, and the part of the school district in each county shall be
regarded as a school district employing five or more contract classroom teachers.
15-976 Assistance for school districts for children whose parents are employed by certain state institutions; expenditure limitation
A. The superintendent of public instruction shall assist school districts in
educating children whose parents or legal guardians are employed by and domiciled at the
following state institutions and stations: the state hospital, the ARIZONA state schools
for the deaf and the blind, mental retardation centers, port of entry inspection stations
and institutions and facilities maintained by the state department of corrections. The
school enrollment is deemed for the purpose of determining student count to be enrollment
in the school district of actual attendance. The assistance shall be by payment of
tuition as follows:
1. For group B children with disabilities, as provided in section 15-825,
subsection D.
2. For children other than group B children with disabilities, the costs per
student count as prescribed in section 15-824, subsection G minus the amount generated by
the equalization base as determined in section 15-971, subsection A for those pupils,
except that in no case shall the tuition for any pupil exceed an amount equal to seven
thousand dollars minus the amount generated by the equalization base as determined in
section 15-971, subsection A.
B. Claims for such payments shall be made by the school districts through the
county school superintendent to the superintendent of public instruction.
C. The total amount of state monies that may be spent in any fiscal year by the
superintendent of public instruction pursuant to subsection A of this section shall not
exceed the amount appropriated or authorized by section 35-173 for that purpose. This
section shall not be construed to impose a duty on an officer, agent or employee of this
state to discharge a responsibility or to create any right in a person or group if the
discharge or right would require an expenditure of state monies in excess of the
expenditure authorized by legislative appropriation for that specific purpose.
15-977 Classroom site fund; definitions
A. The classroom site fund is established consisting of monies transferred to the
fund pursuant to section 37-521, subsection B and section 42-5029, subsection E,
paragraph 10. The department of education shall administer the fund. School districts and
charter schools may not supplant existing school site funding with revenues from the
fund. All monies distributed from the fund are intended for use at the school site. Each
school district or charter school shall allocate forty per cent of the monies for teacher
compensation increases based on performance and employment related expenses, twenty per
cent of the monies for teacher base salary increases and employment related expenses and
forty per cent of the monies for maintenance and operation purposes as prescribed in
subsection H of this section. Teacher compensation increases based on performance or
teacher base salary increases distributed pursuant to this subsection shall supplement,
and not supplant, teacher compensation monies from any other sources. The school district
or charter school shall notify each school principal of the amount available to the
school by April 15. The district or charter school shall request from the school's
principal each school's priority for the allocation of the funds available to the school
for each program listed under subsection H of this section. The amount budgeted by the
school district or charter school pursuant to this section shall not be included in the
allowable budget balance carryforward calculated pursuant to section 15-943.01.
B. A school district governing board must adopt a performance based compensation
system at a public hearing to allocate funding from the classroom site fund pursuant to
subsection A of this section.
C. A school district governing board shall vote on a performance based compensation
system that includes the following elements:
1. School district performance and school performance.
2. Measures of academic progress toward the academic standards adopted by the state
board of education.
3. Other measures of academic progress.
4. Dropout or graduation rates.
5. Attendance rates.
6. Ratings of school quality by parents.
7. Ratings of school quality by students.
8. The input of teachers and administrators.
9. Approval of the performance based compensation system based on an affirmative
vote of at least seventy per cent of the teachers eligible to participate in the
performance based compensation system.
10. An appeals process for teachers who have been denied performance based
compensation.
11. Regular evaluation for effectiveness.
D. A performance based compensation system shall include teacher professional
development programs that are aligned with the elements of the performance based
compensation system.
E. A school district governing board may modify the elements contained in
subsection C of this section and consider additional elements when adopting a performance
based compensation system. A school district governing board shall adopt any
modifications or additional elements and specify the criteria used at a public hearing.
F. Until December 31, 2009, each school district shall develop an assessment plan
for its performance based compensation system and submit the plan to the department of
education by December 31 of each year. A copy of the performance based compensation
system and assessment plan adopted by the school district governing board shall be
included in the report submitted to the department of education.
G. Monies in the fund are continuously appropriated, are exempt from the provisions
of section 35-190 relating to lapsing of appropriations and shall be distributed as
follows:
1. By March 30 of each year the staff of the joint legislative budget committee
shall determine a per pupil amount from the fund for the budget year using the estimated
statewide weighted count for the current year pursuant to section 15-943, paragraph 2,
subdivision (a) and based on estimated available resources in the classroom site fund for
the budget year.
2. The allocation to each charter school and school district for a fiscal year
shall equal the per pupil amount established in paragraph 1 of this subsection for the
fiscal year multiplied by the weighted student count for the school district or charter
school for the fiscal year pursuant to section 15-943, paragraph 2, subdivision (a). For
the purposes of this paragraph, the weighted student count for a school district that
serves as the district of attendance for nonresident pupils shall be increased to include
nonresident pupils who attend school in the school district.
H. Monies distributed from the classroom site fund shall be spent for the following
maintenance and operation purposes:
1. Class size reduction.
2. Teacher compensation increases.
3. AIMS intervention programs.
4. Teacher development.
5. Dropout prevention programs.
6. Teacher liability insurance premiums.
I. The district governing board or charter school shall allocate the classroom site
fund monies to include, wherever possible, the priorities identified by the principals of
the schools while assuring that the funds maximize classroom opportunities and conform to
the authorized expenditures identified in subsection A of this section.
J. School districts and charter schools that receive monies from the classroom site
fund shall submit a report by November 15 of each year to the superintendent of public
instruction on a per school basis that provides an accounting of the expenditures of
monies distributed from the fund during the previous fiscal year and a summary of the
results of district and school programs funded with monies distributed from the fund. The
department of education in conjunction with the auditor general shall prescribe the
format of the report under this subsection.
K. School districts and charter schools that receive monies from the classroom site
fund shall receive these monies monthly in an amount not to exceed one-twelfth of the
monies estimated pursuant to subsection G of this section, except that if there are
insufficient monies in the fund that month to make payments, the distribution for that
month shall be prorated for each school district or charter school. The department of
education may make an additional payment in the current month for any prior month or
months in which school districts or charter schools received a prorated payment if there
are sufficient monies in the fund that month for the additional payments. The state is
not required to make payments to a school district or charter school classroom site fund
if the state classroom site fund revenue collections are insufficient to meet the
estimated allocations to school districts and charter schools pursuant to subsection G of
this section.
L. The state education system for committed youth shall receive monies from the
classroom site fund in the same manner as school districts and charter schools. The
ARIZONA state schools for the deaf and the blind shall receive monies from the classroom
site fund in an amount that corresponds to the weighted student count for the current
year pursuant to section 15-943, paragraph 2, subdivision (b) for each pupil enrolled in
the ARIZONA state schools for the deaf and the blind. Except as otherwise provided in
this subsection, the ARIZONA state schools for the deaf and the blind and the state
education system for committed youth are subject to this section in the same manner as
school districts and charter schools.
M. Each school district and charter school, including school districts that unify
pursuant to section 15-448 or consolidate pursuant to section 15-459, shall establish a
local level classroom site fund to receive allocations from the state level classroom
site fund. The local level classroom site fund shall be a budgetary controlled account.
Interest charges for any registered warrants for the local level classroom site fund
shall be a charge against the local level classroom site fund. Interest earned on monies
in the local level classroom site fund shall be added to the local level classroom site
fund as provided in section 15-978. In no event shall this state be required to make
payments to a school district or charter school local level classroom site fund that are
in addition to monies transferred to the state level classroom site fund pursuant to
section 37-521, subsection B and section 42-5029, subsection E, paragraph 10.
N. Monies distributed from the classroom site fund for class size reduction, AIMS
intervention and dropout prevention programs shall only be used for instructional
purposes in the instruction function as defined in the uniform system of financial
records except that monies shall not be used for school sponsored athletics.
O. For the purposes of this section:
1. "AIMS intervention" means summer programs, after school programs, before school
programs or tutoring programs that are specifically designed to ensure that pupils meet
the ARIZONA academic standards as measured by the ARIZONA instrument to measure standards
test prescribed by section 15-741.
2. "Class size reduction" means any maintenance and operations expenditure that is
designed to reduce the ratio of pupils to classroom teachers, including the use of
persons who serve as aides to classroom teachers. 15-978 Classroom site fund budget limit; school district
The classroom site fund budget limit for each school district is the sum of the
following:
1. The allocation that is computed for the school district pursuant to section
15-977, subsection G, paragraph 2.
2. The unexpended budget balance from the classroom site fund for the prior fiscal
year.
3. The net interest earned on monies in the classroom site fund during the prior
fiscal year. 15-979 Instructional improvement fund
(Caution: 1998 Prop. 105 applies.)
A. The instructional improvement fund is established consisting of monies deposited
pursuant to sections 5-601.02(H)(3)(a)(i) and 5-601.02(H)(3)(b)(i), and interest earned
on those monies. The department of education shall administer the fund. The fund is not
subject to appropriation, and expenditures from the fund are not subject to outside
approval notwithstanding any statutory provision to the contrary.
B. Monies received pursuant to section 5-601.02 shall be deposited directly with
the instructional improvement fund. On notice from the department of education, the state
treasurer shall invest and divest monies in the fund as provided by section 35-313, and
monies earned from investment shall be credited to the fund. No monies in the
instructional improvement fund shall revert to or be deposited in any other fund,
including the state general fund. Monies in the instructional improvement fund are exempt
from the provisions of section 35-190 relating to the lapsing of appropriations. Monies
provided from the instructional improvement fund shall supplement, not supplant, existing
state and local monies.
C. The department of education shall pay the monies in the fund to school districts
and charter schools. The department of education shall determine the amount of monies
from the fund to be paid to each school district and charter school as follows:
1. Determine the student count for each school district and charter school as
provided in section 15-943.
2. Determine the student count for all school districts and charter schools as
provided in section 15-943.
3. Divide the amount determined in paragraph 1 of this subsection by the total
amount determined in paragraph 2 of this subsection.
4. Multiply the quotient determined in paragraph 3 of this subsection by the total
amount of instructional improvement fund monies available to be distributed to school
districts and charter schools under this section.
D. Each school district and charter school may utilize up to fifty percent of the
amount of monies determined pursuant to subsection C for teacher compensation increases
and class size reduction as provided in section 15-977.
E. Monies that are not utilized as provided in subsection D shall be utilized for
the following maintenance and operation purposes:
1. Dropout prevention programs.
2. Instructional improvement programs including programs to develop minimum reading
skills for students by the end of third grade.
F. School districts and charter schools that receive monies from the instructional
improvement fund shall submit a report by November 15 of each year to the department of
education that provides an accounting of the expenditure of monies distributed from the
fund during the previous fiscal year. The department of education in conjunction with the
auditor general shall prescribe the format of the report under this subsection.
15-980 Uncollected property tax; supplemental state aid
A. If a county treasurer certifies to a school district after January 1 that, in
the treasurer's reasonable belief, more than twenty per cent of the primary property tax
revenues that the school district is entitled by law to receive pursuant to section
42-18052 will not be remitted to the district due to property tax delinquencies, the
district is eligible for supplemental state aid pursuant to this section.
B. On receiving a certificate pursuant to subsection A of this section, the school
district may apply to the department of education for supplemental state aid. The
application shall include the county treasurer's certified estimate of the total amount
of uncollected primary property taxes for the school district for the tax year payable in
the current fiscal year.
C. Within forty-five days after receiving a complete and correct application, the
state board of education shall pay to the school district from amounts appropriated for
state aid the amount determined in subsection B of this section. The department of
education shall notify the county treasurer and the county school superintendent of the
amount and the date of the payment of the supplemental state aid. Supplemental state aid
paid under this section shall be excluded from the calculation made pursuant to section
15-973, subsection C.
D. The superintendent of a school district that receives supplemental state aid
shall report to the department of education between May 5 and May 25 the actual amount of
primary property taxes that were not collected and remitted to the district during the
current fiscal year, based on information from the county treasurer. If the amount of
supplemental state aid paid pursuant to subsection C of this section exceeds the actual
amount of the uncollected primary property taxes that the district is entitled to
receive, the state board of education shall deduct the difference between the amount of
supplemental state aid paid and the amount of the uncollected primary property taxes from
the June 15 and, if necessary, subsequent apportionments of state aid pursuant to section
15-973, subsection B.
E. Beginning on June 1 after the payment of supplemental state aid, the county
school superintendent shall report quarterly to the department of education the amount of
any payments of delinquent primary property taxes received by the district during the
previous quarter with respect to a tax year for which the supplemental state aid was paid
and not previously deducted from state aid pursuant to subsection D of this section. The
department shall deduct the amount reported from the next apportionment of state aid to
the district pursuant to section 15-973, subsection B until the supplemental state aid is
repaid. If the district does not receive any apportionment pursuant to section 15-973,
subsection B, the department shall direct the school district superintendent to pay that
amount to the state treasurer for deposit in the state general fund.
15-991.01 Tax levy for property not located in a school district
A. The board of supervisors of each county, at the time of levying other taxes,
shall annually levy a tax on property not located in a school district. The tax levy
shall be at a rate equal to one-half the qualifying tax rate prescribed in section
15-971, subsection B, paragraph 2, per one hundred dollars of assessed valuation used for
primary property taxes. The tax shall be levied and collected in the same manner as
general county taxes on the property. The tax levy provided for in this section is not
subject to title 42, chapter 17, articles 2 and 3. The monies received pursuant to this
section shall be transmitted by the county treasurer to the state treasurer to be
deposited in the state general fund to aid in school financial assistance.
B. The reduction in taxes prescribed in section 15-972 applies to taxes levied
pursuant to this section on residential property, except that the state shall not make
the payments prescribed in section 15-972, subsection H for this reduction in taxes.
C. This section does not apply to territory that was previously unorganized but
that is currently part of a school district that is established or joined pursuant to
section 15-445. 15-991 Annual estimate by county school superintendent of monies for ensuing year
A. The county school superintendent, not later than August 1 each year, shall file
in writing with the governing board of each school district in the county and the board
of supervisors the superintendent's estimate of the amount of school monies required by
each school district for the ensuing year, based on the budgets adopted by the governing
boards of the school districts. The estimate shall contain:
1. A statement of the student count of each school district.
2. The total amount to be received for the year by each school district from the
county school fund and the special county school reserve fund.
3. The ending cash balance from the previous year for each school district.
4. The anticipated interest earnings for each school district.
5. Revenues equal to the amount included in the adopted budget for the maintenance
and operation section of the budget permitted by section 15-947, subsection C, paragraph
2, subdivision (a), items (ii), (iii), (iv), (v) and (vi) and subdivision (d). The
county school superintendent shall estimate the additional amounts needed for each
school district from the primary property tax and the secondary property tax and shall
certify such amounts to the board of supervisors in writing at the time of filing the
estimate. When estimating the additional amount needed from the primary property tax for
a school district that is not eligible for any equalization assistance as provided in
section 15-971, the county school superintendent shall include the school district
governing board's estimate of the increase in the revenue control limit as prescribed by
section 15-948 for the applicable year, except that the percentage increase in average
daily membership used to compute the estimated increase in the revenue control limit may
not exceed the average of the percentage increase in average daily membership in the
three years before the year for which the estimate is made.
B. The county school superintendent shall recompute equalization assistance for
education for each school district as provided in section 15-971, subsection A using the
property values provided by the county assessor as provided in section 42-17052. The
county school superintendent shall certify in writing the amount of equalization
assistance for education and the amount needed for each school district from the primary
property tax to the board of supervisors on or before the third day prior to the day the
board of supervisors is required to levy school district taxes as provided in section
15-992.
C. The county school superintendent shall compute the additional amount to be
levied as provided in section 15-992, subsection B, using the property values provided in
section 42-17052. The county school superintendent shall certify in writing the
additional amount to be levied to the county board of supervisors on or before the third
day prior to the day the board of supervisors is required to levy school district taxes
as provided in section 15-992.
D. On or before September 1, the governing board of a school district shall file
with the county school superintendent an estimate of the amount of P.L. 81-874 monies
which it is eligible to receive during the current year. On or before June 1, the
governing board shall file with the county school superintendent and the superintendent
of public instruction a statement of the actual amount of P.L. 81-874 monies it received
during the current year. This subsection does not apply to accommodation schools.
E. The department may collect any other similar or related information from school
districts that the department may determine is necessary to carry out the purposes of
this section.
15-992 School district tax levy; additional tax in districts ineligible for equalization assistance; definition
A. The board of supervisors of each county shall annually, at the time of levying
other taxes, levy school district taxes on the property in any school district in which
additional amounts are required, which shall be at rates sufficient to provide the
additional amounts. No delinquency factor for estimated uncollected taxes may be
included in the computation of the primary tax rate for school district taxes. No local
property taxes may be levied for any deficit in the classroom site fund. The taxes shall
be added to and collected in the same manner as other county taxes on the property within
the school district. The amount of the school district taxes levied upon the property in
a particular school district shall be paid into the school fund of such school district.
B. At the same time of levying taxes as provided in subsection A of this section,
the county board of supervisors shall annually levy an additional tax in each school
district that is not eligible for equalization assistance as provided in section 15-971
in an amount determined as follows:
1. Determine the levy that would be produced by fifty per cent of the applicable
qualifying tax rate, prescribed in section 15-971, subsection B, per one hundred dollars
assessed valuation.
2. Subtract the amount determined in section 15-971, subsection A from the levy
determined in paragraph 1 of this subsection. This difference is the additional amount
levied or collected as voluntary contributions pursuant to title 48, chapter 1, article
8, except that if the difference is zero or is a negative number, there shall be no levy.
C. Monies collected pursuant to subsection B of this section shall be transmitted
to the state treasurer for deposit in the state general fund to aid in school financial
assistance.
D. The additional tax prescribed in subsection B of this section is considered to
be primary property tax for purposes of section 15-972, subsection B, except that this
state is not required to make the payments prescribed in section 15-972, subsection H for
these reductions in taxes.
E. For the purposes of this section, "assessed valuation" includes the values used
to determine voluntary contributions collected pursuant to title 9, chapter 4, article 3
and title 48, chapter 1, article 8.
15-993 Tax levy for high schools
In the school district or union high school district which determines to establish a
high school, an annual tax shall be levied, the amount of which shall be estimated by the
governing board of the school district and certified to the county school superintendent
on or before July 1. The board of supervisors, after deducting the amount allowed from
state and county funds, shall levy a tax rate upon the property of the high school
district or union high school district which will produce the remaining amount so
estimated.
15-994 Tax levy; county equalization assistance for education
A. The board of supervisors of each county shall annually, at the time of levying
other taxes, levy a county equalization assistance for education tax on the property
within the county. The tax levy for county equalization assistance for education shall
be at a rate determined pursuant to section 41-1276. The tax levy provided for in this
section shall not be subject to title 42, chapter 17, articles 2 and 3. Except as
provided in section 15-365, the county treasurer shall apportion all monies collected
from the county equalization assistance for education tax levy to the school districts
within the county in accordance with section 15-971, subsection C at the same time as
other tax levy monies are apportioned as provided in section 42-18001.
B. At the same time the county assessor is required to transmit values to the
county school superintendent as provided in section 42-17052, the assessor of each county
shall provide in electronic format to the superintendent of public instruction the
assessed valuation used for determining the primary property tax rate and the secondary
property tax rate for each school district in the county. On or before January 15 the
county assessor of each county shall provide in electronic format to the superintendent
of public instruction the actual assessed valuation used for determining the primary
property tax rate and the secondary property tax rate for each school district in the
county including any revisions made due to changes in the valuation of unsecured personal
property after the tax rates were determined.
15-995 Special district assessment for adjacent ways by school district
A. The governing board of a school district may contract for constructing,
maintaining or otherwise improving any public way adjacent to any parcel of land owned by
the school district or leased for school purposes by the school district, or an
intersection of any public way adjoining a quarter block in which the parcel of land is
situated, and for the construction of sidewalks, sewers, utility lines, roadways and
other related improvements in or along such streets and intersections, and to pay for
such improvements by the levy of a special assessment upon the taxable property in the
school district. A school district shall not use any portion of the monies generated
from the special assessment for any construction, maintenance or other improvements to
the school district's property except improvements necessary to assure the safe ingress
to and egress from public school property directly adjacent to the public way for buses
and fire equipment. The assessment shall be made a part of the itemized statement
regularly filed with the county school superintendent and showing the amount of monies
needed for the expenses of schools within the school district for the ensuing year.
B. If any property owned by a school district or leased by a school district for
school purposes from any city or county, the state or the United States is included
within the assessment district to be assessed to pay the costs and expenses of any public
improvements initiated by a city, as to make the assessments thereon payable by the city
in which the improvement is initiated, the governing board may contract with the
municipality or its improvement district to reimburse it for the amount of the assessment
against the property and to pay the amount so contracted for by the levy of a special
assessment as provided by subsection A of this section.
C. The governing board of the school district shall follow the truth in taxation
notice and hearing requirements prescribed in section 15-905.01, subsection B.
D. The portion of the primary tax rate to fund adjacent ways as provided in this
section shall not be included in the computation of additional state aid for education as
prescribed in section 15-972.
15-996 Duties of county treasurer relating to school district's monies
The county treasurer shall:
1. Receive and hold all school district monies and keep a separate account for each
school district and for the special county school reserve fund. The county treasurer may
maintain separate accounts for each fund of a school district or the county treasurer may
maintain only two accounts for each school district's monies in addition to the funds
provided for in sections 15-1024, 15-1025, 15-2021, 15-2031 and 15-2041. If only two
accounts are maintained, the first account shall consist of maintenance and operation,
unrestricted capital outlay, soft capital allocation and adjacent ways monies and the
classroom site fund prescribed in section 15-977 and the second account shall consist of
federal and state grant monies and all other monies.
2. Pool school district monies for investment except as provided in sections
15-1024 and 15-1025. Interest earned on the monies pooled for investment shall be
apportioned at least quarterly to the appropriate school district based on an average
monthly balance as prescribed in the uniform system of accounting for county treasurers
as provided in section 41-1279.21.
3. Notwithstanding section 11-605, register warrants only as follows:
(a) If separate accounts are maintained for each fund, warrants may only be
registered on the maintenance and operation, unrestricted capital outlay, soft capital
allocation and adjacent ways accounts and the classroom site fund prescribed in section
15-977 and only if the total cash balance of all three accounts is insufficient to pay
the warrants.
(b) If the county treasurer maintains only two accounts as provided in paragraph 1
of this section:
(i) The county treasurer may register warrants only on the first account and only
if the balance of that account is insufficient to pay the warrants.
(ii) The county treasurer may honor warrants for any federal or state grant fund
with a negative balance as long as the total balance in the second account is
positive. If the second account total balance is negative the warrant for a federal or
state grant fund shall be charged to the maintenance and operation fund. Any interest
charged to the federal or state grant fund as a result of a negative balance that is in
excess of interest earned on the fund shall be transferred to the maintenance and
operation fund at the end of the fiscal year or the end of the grant year. If a federal
or state grant fund has a negative balance at the end of the fiscal year or grant year,
sufficient expenditures shall be transferred to the maintenance and operation fund to
eliminate the negative balance.
4. Notify the county school superintendent by the fifteenth day of each calendar
month of the month end balances of each school district account.
5. Pay warrants issued by the county school superintendent and duly endorsed by the
person entitled to receive the monies.
6. On each property tax bill and each property tax statement prepared, separately
state and identify by name each school district's primary property tax rate, the
secondary property tax rate that is associated with overrides, the secondary property tax
rate that is associated with class A bonds and the secondary property tax rate that is
associated with class B bonds. For purposes of this paragraph, "class A bonds" and
"class B bonds" have the same meanings prescribed in section 15-101.
15-997 Authority of county officers as to funds, taxes and boundaries of joint common school district
A. The county treasurer of the jurisdictional county shall have custody of the
funds of a joint common school district and shall perform all duties imposed by law for
the control and accounting of other school funds. Warrants drawn against the funds of a
joint common school district shall be drawn by the county school superintendent of the
jurisdictional county. Any estimates or other information required by the boards of
supervisors of the counties in the joint common school district as a basis for action by
such boards shall be supplied by the county school superintendent of the jurisdictional
county. The board of supervisors of each county shall perform all duties required by law
with respect to county appropriation of funds and levy of taxes for joint common school
districts in the same manner as though the portion of the joint common school district in
its county were a separate school district, except that all such tax proceeds and monies
shall be paid over to the treasurer of the jurisdictional county.
B. The statement of school district boundaries required to be filed annually by the
county school superintendent shall be filed in each county.
C. All amounts required to be raised by the school district through the levy of ad
valorem taxes shall be raised through the levy of taxes at the same rate on all taxable
property in the school district regardless of location as to county. The county school
superintendent of the jurisdictional county shall file with the board of supervisors of
each county a statement and estimate upon which taxes are to be based which shall include
the assessed valuation of all taxable property in the school district and the tax rate
necessary to be levied.
D. The board of supervisors of the jurisdictional county shall hold a budget
hearing as required by law and shall have control over the investment of the debt service
funds of the joint common school district.
15-998 Liability of treasurer for failure to keep separate account or give notice; enforcement
If the county treasurer fails to keep a separate account for each school district
and for the special county school reserve fund or give the notice required by section
15-996, he is liable to the county in the amount of five hundred dollars, and the county
attorney shall, upon direction of the board of supervisors, bring an action in the name
of the county against the treasurer for the recovery of the five hundred dollars. Monies
collected are payable into the county school fund.
15-999 Preference of payment of warrants; use of balance of school fund remaining at close of fiscal year
A. All warrants registered after January 1, 1936 and drawn on the county treasurer
against the school fund of the school district by the county school superintendent or
finance officer of a school district that has assumed accounting responsibility pursuant
to section 15-914.01 on the order of the governing board shall be entitled to preference
of payment out of the school fund according to priority of registration.
B. Unless otherwise provided in this chapter and chapter 10 of this title, if a
balance remains in the school fund of a school district at the close of a fiscal year,
such balance shall be used for reduction of school district taxes for the budget year.
C. A warrant that is drawn on the school fund of the school district by the county
school superintendent or finance officer of a school district that has assumed accounting
responsibility pursuant to section 15-914.01 and that is not presented for payment within
one year after the date of issuance is void. All warrants not presented within one year
shall have no further force or effect, and any monies held at the expiration of such time
in any fund or account for the payment of the warrants shall be transferred or reverted
to the fund upon which the warrants were drawn.
15-1000 County school fund
The county school fund of each county shall consist of all revenues accruing to the
credit of each county from:
1. That portion of the payments made under section 36-1419 which represents payment
in lieu of the county levy for school purposes.
2. Taylor grazing act monies as provided in section 37-723.
3. All receipts from the lease of public lands as provided in section 37-724.
4. All balances remaining in the county school fund and in the special county
school reserve fund at the end of the fiscal year and all balances of lapsed school
districts remaining after the payments authorized under section 15-469.
5. All dividends, proceeds from sales, refunds, credits arising from cancelled
warrants and any other sums or amounts that are attributable to the county school fund.
6. All other federal lieu taxes which are not specifically allocated by law.
7. Any gratuity or devise designated for specific school purposes.
15-1001 Special county school reserve fund
A. The board of supervisors of each county shall annually budget for the special
county school reserve fund an amount to meet the requirements of that fund. Warrants
drawn on the special county school reserve fund shall be approved prior to payment by the
board of supervisors, as other county warrants are approved, or this responsibility may
be delegated by the board of supervisors to the county school superintendent. The
budgeted amounts for the special county school reserve fund shall be itemized and
estimated to meet the following needs:
1. For transportation of school children to and from one-room and two-room rural
schools that are determined by the county school superintendent to be in need of such
aid.
2. For transportation to and from unorganized territory to school districts of
children who are eligible to receive state aid.
3. For transportation to and from the nearest high school of pupils residing in
common school districts which are contiguous or not contiguous to and which are not
within a high school district if it is determined by the county school superintendent
that such common school districts are in need of such aid to supplement the monies
received as provided in subsection B of this section.
4. For one-room and two-room school districts, an amount which when added to the
state aid for a school district will provide not more than five thousand dollars for a
one-room school and not more than nine thousand dollars for a two-room school, provided
that such schools are maintained for a minimum of one hundred seventy-five days or two
hundred days, as applicable, per year.
5. For necessary expenses for the establishment and conduct of accommodation
schools pursuant to section 15-308.
6. For expenditures necessary to establish and maintain, for the first year of
operation, a county special education program for children with disabilities as provided
in chapter 7, article 4 of this title.
B. The county school superintendent shall determine the eligibility for
transportation aid for the transportation of children from unorganized territory to
school districts within that county in the manner provided in this chapter for other
school districts and shall certify the eligibility to the department of education.
C. The county school superintendent shall determine the amount of transportation
aid for transportation of children from unorganized territory to school districts within
that county based upon the provisions of section 15-945, subsection A, paragraphs 1 and
2, except that such transportation aid shall not exceed the actual cost of providing such
transportation. The county school superintendent shall certify the amount to the
department of education which shall apportion the monies no later than the second Monday
in September, December, March and June.
15-1002 Administration of county school reserve fund; uses
A. The special county school reserve fund may be used only for:
1. Transportation of children to and from one-room and two-room rural schools that
are determined by the county school superintendent to be in need of such aid.
2. Transportation from unorganized territory to school districts of children who
are eligible to receive state aid for such children.
3. Transportation to and from the nearest high school of pupils residing in common
school districts which are contiguous or not contiguous to and which are not within a
high school district, if it is determined by the county school superintendent that such
common school districts are in need of such aid.
4. Costs of maintaining one-room and two-room rural schools in any school district
in excess of the amount available for such schools from the county school fund and their
school district levy, but not to exceed the additional amount required and estimated for
such purpose by the county school superintendent in fixing the amount of the special
county school reserve fund under the provisions of section 15-1001.
5. Necessary expenses in excess of the per capita apportionment from the county
school fund for the establishment and conduct of schools in unorganized territory.
6. Expenditures necessary to establish and maintain, for the first year of
operation, a county special education program for children with disabilities as provided
in chapter 7, article 4 of this title.
7. Expenditures for service programs pursuant to section 15-365.
B. The county school superintendent shall apportion the special county school
reserve fund. If at the end of any school year any part of the reserve fund remains
unexpended, such amount shall be shown in the estimate of the county school
superintendent for the succeeding year as a balance of county school funds on hand,
except as prescribed by the terms of subsection C of this section.
C. If an accommodation school accepting federal funds becomes a school district,
the board of supervisors may order the county school superintendent to transfer the cash
balance credited to the accommodation school as of July 1 of the fiscal year in which the
transfer occurred to the newly organized school district. In addition, all property both
real and personal, title of which is vested in the accommodation school, shall become the
property of the newly formed school district.
15-1021 Limitation on bonded indebtedness; limitation on authorization and issuance of bonds
A. Until December 31, 1999, a school district may issue class A bonds for the
purposes specified in this section and chapter 4, article 5 of this title to an amount in
the aggregate, including the existing indebtedness, not exceeding fifteen per cent of the
taxable property used for secondary property tax purposes, as determined pursuant to
title 42, chapter 15, article 1, within a school district as ascertained by the last
property tax assessment previous to issuing the bonds.
B. From and after December 31, 1998, a school district may issue class B bonds for
the purposes specified in this section and chapter 4, article 5 of this title to an
amount in the aggregate, including the existing class B indebtedness, not exceeding five
per cent of the taxable property used for secondary property tax purposes, as determined
pursuant to title 42, chapter 15, article 1, within a school district as ascertained by
the last assessment of state and county taxes previous to issuing the bonds, or one
thousand five hundred dollars per student count as determined pursuant to section 15-902,
whichever amount is greater. A school district shall not issue class B bonds until the
proceeds of any class A bonds issued by the school district have been obligated in
contract. The total amount of class A and class B bonds issued by a school district
shall not exceed the debt limitations prescribed in article IX, section 8, Constitution
of ARIZONA.
C. Until December 31, 1999, a unified school district, as defined under article IX,
section 8.1, Constitution of ARIZONA, may issue class A bonds for the purposes specified
in this section and chapter 4, article 5 of this title to an amount in the aggregate,
including the existing indebtedness, not exceeding thirty per cent of the taxable
property used for secondary property tax purposes, as determined pursuant to title 42,
chapter 15, article 1, within a unified school district as ascertained by the last
property tax assessment previous to issuing the bonds.
D. From and after December 31, 1998, a unified school district, as defined under
article IX, section 8.1, Constitution of ARIZONA, may issue class B bonds for the
purposes specified in this section and chapter 4, article 5 of this title to an amount in
the aggregate, including the existing class B indebtedness, not exceeding ten per cent of
the taxable property used for secondary tax purposes, as determined pursuant to title 42,
chapter 15, article 1, within a school district as ascertained by the last assessment of
state and county taxes previous to issuing the bonds, or one thousand five hundred
dollars per student count as determined pursuant to section 15-902, whichever amount is
greater. A unified school district shall not issue class B bonds until the proceeds of
any class A bonds issued by the unified school district have been obligated in
contract. The total amount of class A and class B bonds issued by a unified school
district shall not exceed the debt limitations prescribed in article IX, section 8.1,
Constitution of ARIZONA.
E. No bonds authorized to be issued by an election held after July 1, 1980 may be
issued more than six years after the date of the election, except that class A bonds
shall not be issued after December 31, 1999.
F. Class A bond proceeds shall not be expended for items whose useful life is less
than the average life of the bonds issued, except that bond proceeds shall not be
expended for items whose useful life is less than five years.
G. Except as provided in subsection H of this section, class B bond proceeds shall
not be expended for soft capital items, computer hardware, or other items whose useful
life is less than the average useful life of the bonds issued, except that bond proceeds
shall not be expended for items whose useful life is less than five years. For the
purposes of this subsection, "computer hardware" means an electronic device with an
integrated circuit that performs logic, arithmetic or memory functions by the
manipulations of electronic or magnetic impulses and includes all input, output,
processing, storage, software or communication facilities that are connected or related
to such a device in a system or network.
H. Class B bond proceeds for a new facility at the main campus of a joint
technological education district may be expended for soft capital items, computer
hardware, furniture or other equipment, except that no bonds may be issued for these
purposes for a duration of more than five years. The total amount of bonds that a joint
technological education district may issue pursuant to this subsection shall not exceed
thirty per cent of the cost of the new school facility, including monies received for the
new school facility pursuant to this section.
I. Notwithstanding subsections F and G of this section, bond proceeds may be
expended for purchasing pupil transportation vehicles.
J. A school district shall not authorize, issue or sell bonds pursuant to this
section if the school district has any existing indebtedness from impact aid revenue
bonds pursuant to chapter 16, article 8 of this title, except for bonds issued to refund
any bonds issued by the governing board.
15-1022 Tax levy for bonds; administration and disposition of tax; cancellation of paid bonds
A. The board of supervisors, at the time of making the levy of taxes for county
purposes, shall levy a tax for the year upon the taxable property in a school district or
former school district canceled by election, which has outstanding school bonds for the
interest and redemption of the bonds. The tax shall not be less than sufficient to pay
the interest of the bonds for the year and the portion of the principal of the bonds
becoming due during the year and in any event shall be enough to raise, annually, for the
first half of the term of the bonds a sufficient amount to pay the interest thereon, and
during the remainder of the term enough to pay the annual interest and to pay, annually,
a portion of the principal of the bonds equal to an amount produced by taking the whole
amount of bonds outstanding and dividing it by the number of years the bonds then have to
run.
B. All monies, when collected, shall be paid into the county treasury to the credit
of the debt service fund of the school district and shall be used only for payment of
principal and interest on the bonds. The county treasurer shall keep the debt service
fund separate from all other funds in the county treasury. The principal and interest on
the bonds shall be paid by the county treasurer from the fund provided therefor.
C. The county treasurer or the treasurer's designated agent shall cancel all bonds
and coupons when paid.
15-1023.01 Municipal property corporation financing prohibited; definition
A. Except as provided in subsection C, a school district shall not directly or
indirectly pledge its full faith and credit nor incur any direct or indirect obligation
of any kind against or pay school district revenues to a municipal property corporation
or a special district under title 48 as a means of financing the acquisition or
construction of school capital facilities.
B. This section does not apply to any valid obligation initially incurred by a
school district on or before December 31, 1998.
C. A school district may pledge school district revenues to a municipal property
corporation or a special district under title 48 for the purpose of constructing teacher
housing facilities or for any project financed with a loan from the United States
department of agriculture.
D. For purposes of this section, "municipal property corporation" means a
corporation organized by or at the direction of a city, town or school district to
construct and own a capital facility that the school district pledges to lease or
lease-purchase and finance with school district revenues.
15-1023 Issuance of bonds
A. Upon receipt of the certificate of the appropriate election officer as provided
in section 15-493 that a majority of votes cast at the bond election favors issuing the
bonds, the school district governing board shall issue the bonds of the school district
in the number and amount provided in the proceedings, payable from the debt service fund
of the school district, naming the fund, and the monies shall be raised by taxation upon
the taxable property in the school district for redemption of the bonds and payment of
interest thereon.
B. The governing board of the school district by an order entered upon its minutes
shall prescribe the form of the bonds and the interest coupons attached thereto and fix
the time when the whole or any part of the principal of the bonds is payable, which shall
not be more than twenty years from the date thereof.
15-1024 Interest on bonds; sale; disposition of proceeds; definition
A. The bonds shall bear interest, payable semiannually at the rate or rates set by
the accepted bid, which shall not exceed the maximum rate of interest set forth in the
resolution calling the election. The bonds may be made payable at such place within the
United States as the governing board of the school district directs and shall be sold in
the manner prescribed by the governing board of the school district for not less than
par.
B. The proceeds of the sale of the bonds shall be deposited in the county treasury
to the credit of the bond building fund of the school district. Such deposits may be
drawn out for the purposes authorized by this article as other school monies are
drawn. If a balance remains in the bond building fund after the acquisition or
construction of facilities is completed for which the bonds were issued and upon written
request of the governing board:
1. If the school district has outstanding bonded indebtedness, the balance
remaining in the bond building fund shall be transferred to the debt service fund of the
district.
2. If the district has no outstanding bonded indebtedness, the balance remaining in
the bond building fund shall be transferred to the general fund of the district.
C. When bonds are sold and the proceeds are not required to be used for a period of
ten days or more, such proceeds may be invested as provided by section 15-1025,
subsection B. All monies earned as interest or otherwise derived from the investment of
the proceeds of the sale of the bonds shall be credited to the debt service fund, except
that the monies shall be credited to the bond building fund if the voters authorized such
use of the monies in a separate question at the bond election. The separate question
shall inform the voters that the monies will be credited to the debt service fund, and
may therefore reduce the amount of the secondary property tax, if the measure authorizing
the monies to be credited to the bond building fund does not pass.
D. The amount of net premium associated with a bond issue may not exceed the
greater of:
1. Two per cent of the par value of the bond issue.
2. One hundred thousand dollars.
E. Any net premium not used to pay the costs of the bond issue shall be deposited
in a debt service fund and used to pay interest on the bonds.
F. For purposes of this section "net premium" means the difference between the par
amount of the bond issue and the bond issue price determined pursuant to United States
treasury regulations.
15-1025 Investment and reinvestment of debt service fund
A. The governing board of a school district may invest and reinvest all monies
belonging or credited to the school district as a debt service fund. Consent may be
requested prior to the beginning of any fiscal year for the adoption of a resolution of
continuing effect. The investment shall be made for the best interests of the school
district.
B. The funds may be invested and reinvested in any of the following:
1. Bonds or other evidences of indebtedness of the United States of America or any
of its agencies or instrumentalities when such obligations are guaranteed as to principal
and interest by the United States of America or by any agency or instrumentality thereof.
2. Bonds or other evidences of indebtedness of this state, or of any of the
counties or incorporated cities, towns or school districts of this state.
3. Bonds, notes or evidences of indebtedness of any county, municipality or
municipal district utility within this state, which are payable from revenues or earnings
specifically pledged for the payment of the principal and interest on such obligations,
and for the payment of which a lawful debt service fund or reserve fund has been
established and is being maintained, but only if no default in payment of principal or
interest on the obligations to be purchased has occurred within five years of the date of
investment therein or, if such obligations were issued less than five years prior to the
date of investment, no default in payment of principal or interest has occurred on the
obligations to be purchased, nor on any other obligations of the issuer within five years
of such investment.
4. Bonds, notes or evidences of indebtedness issued by any municipal improvement
district in this state to finance local improvements authorized by law, if the principal
and interest of such obligations are payable from assessments on real property within
such local improvement district. No such investment shall be made if the face value of
all such obligations and similar obligations outstanding exceeds fifty per cent of the
market value of the real property and improvements upon which such bonds or the
assessments for the payment of principal and interest thereon are liens inferior only to
the liens for general ad valorem property taxes. Such investment shall be made only if no
default in payment of principal or interest on the obligations to be purchased has
occurred within five years of the date of investment therein or, if such obligations were
issued less than five years prior to the date of investment, no default in payment of
principal or interest has occurred on the obligations to be purchased, nor on any other
obligation of the issuer within five years of such investment.
5. Interest bearing savings accounts or certificates of deposit insured in banks or
savings and loan associations doing business in ARIZONA by the federal deposit insurance
corporation, but only if they are secured by the depository to the same extent and in the
same manner as required by the general depository law of this state. Security shall not
be required for that portion of any deposit that is insured under any law of the United
States.
6. Bonds, debentures or other obligations issued by the federal land banks, the
federal intermediate credit banks or the banks for cooperatives.
C. The purchase of the securities shall be made by the county treasurer or the
treasurer's designated agent upon authority of a resolution of the governing board. The
county treasurer shall be the custodian of all securities so purchased. The securities
may be sold upon an order of the governing board.
D. All monies earned as interest or otherwise derived by virtue of the provisions
of this section shall be credited to the debt service fund.
15-1027 Administration of school district debt service funds by county treasurer
The county treasurer shall keep an account of all school district debt service
funds, showing the school district to which each fund belongs. On or before the
fifteenth day of each month the treasurer shall credit the amount of monies collected
during the preceding month to which the school district is entitled. The treasurer
shall receive and credit any and all interest or income earned by the debt service
fund.
15-1028 Disposition of surplus tax monies
A. If a bond issue and interest thereon have been fully paid and a balance remains
in the debt service fund from taxes collected for payment of the bonds and interest, the
balance may be applied on the payment of other outstanding bonded indebtedness of the
school district payable from the levy of taxes on property within the school district in
which the excess tax monies were collected, or if there is no outstanding bonded
indebtedness, the balance remaining in or accruing to the debt service fund shall, upon
written request of the governing board of the school district, be transferred to the
general fund of the school district.
B. When a school bond issue and interest thereon have been fully paid and a tax
levy has thereafter been made upon and taxes collected from property the situs of which
is in a school district other than the original school district for which the levy was
made, such taxes shall belong to the school district from which they were collected, and
the county treasurer shall credit such taxes to the general school fund of the school
district. The taxes may be expended by the governing board of the school district as
other monies in its general school fund are expended.
15-1029 Rights of bondholder; additional state tax
A. If the board of supervisors fails to make the levy necessary to pay school
district bonds or interest coupons at maturity and such bonds or coupons are presented to
the county treasurer and payment is refused, the owner may file the bond, together with
all unpaid coupons, with the department of administration, taking his receipt
therefor. Such bonds and coupons shall be registered with the department of
administration.
B. The department of revenue shall add to the tax to be levied by the school
district which issued the bonds a sufficient rate to obtain the amount of principal or
interest past due prior to the next levy. The tax shall be levied and collected as a
part of the school district tax but shall be paid into the state treasury, shall be
passed to the special credit of the school district bond tax and shall, as payments
mature, be paid by warrants to the holder of registered obligations as shown by the
register in the department of administration until such obligations are fully satisfied
and discharged. Any balance then remaining shall be remitted to the general account and
credit of the school district.
15-1030 Cancellation of unsold bonds; notice; hearing
A. If a bond issue remains unsold for six months after being offered for sale, the
governing board of the school district or any school district comprised wholly or partly
of territory which at the time of holding the bond election was within the school
district may cancel the unsold bonds.
B. The school district governing board shall fix a time for a hearing on the
proposed cancellation of the unsold bonds. The school district governing board shall
give notice of the time and place of the hearing which shall set forth in general terms
the object of the hearing. The notice shall be published for ten days prior to the day
of hearing in some newspaper published in the school district. If no newspaper is
published in the school district, the notice shall be published in a newspaper published
at the county seat of the county in which the school district or some part thereof is
located.
C. At the time and place designated in the notice the school district governing
board shall hear reasons for or against granting the proposed cancellation of the unsold
bonds, and if the board deems it for the best interests of the school district that the
unsold bonds be canceled it shall enter an order canceling the unsold bonds, and
thereupon the bonds and the vote by which they were authorized to be issued shall be
void.
15-1031 Power to use outstanding bond authorizations of common school districts or high school districts
A. All outstanding authorizations permitting the issuance of bonds, as provided in
this section and sections 15-1022 through 15-1030, or the incurring of debt by a common
school district or a high school district at the time either such district becomes part
of a unified school district, shall remain in full force and effect. The unified school
district shall be vested with all powers to act for and on behalf of such common school
district or high school district to issue the bonds for the purposes for which such
authorizations were granted. The school district governing board may submit the bonds
for approval by the attorney general.
B. The bonds shall be issued pursuant to this section, chapter 4, article 5 of this
title and sections 15-1021 through 15-1030 except that the effect of the bonds issued
pursuant to this section shall be the same as if the questions pertaining to the issuance
of the bonds had been submitted to and approved by the electors of the unified school
district after its formation.
C. The provisions of this section shall not be construed as authorizing
indebtedness in excess of the percentage limitation as prescribed for a unified school
district in article IX, section 8.1, Constitution of ARIZONA.
15-1032 Capital facilities; bonded indebtedness liability for unified school districts
A. All school buildings of established school districts which are located within
any unified school district shall, together with all equipment and furnishings, become
the property of the unified school district.
B. If any established common school district or high school district has a bonded
indebtedness liability, the liability or so much of it as is attributable to facilities
located within the boundaries of any unified school district shall become an assumed
indebtedness liability of the unified school district. The unified school district
governing board shall levy a tax against the property of the unified school district for
the payment of the principal and interest, but nothing in this section shall be construed
to relieve the taxable property in the theretofore existing school districts from
liability to taxation for the payment thereof if necessary to prevent a default in such
payment. The unified school district shall assume the indebtedness liabilities of the
existing school districts which shall be regarded as an indebtedness of the unified
school district for the purpose of determining the debt incurring capacity of the unified
school district.
15-1033 Certification of school district bonds by attorney general
A. Any school district may submit to the attorney general bonds to be issued under
this article after the school district has authorized their issuance. Within fifteen
days after submission by the school district, the attorney general shall examine the
bonds and pass on the validity of the bonds and the regularity of the proceedings
authorizing their issuance.
B. If the bonds and proceedings submitted to the attorney general by a school
district conform to the laws of this state, and if the bonds when delivered and paid for
will constitute binding and legal obligations of the school district according to the
terms of the bonds, the attorney general shall certify in substance that the bonds are
issued in accordance with the constitution and laws of this state.
15-1041 Student accountability information system
The student accountability information system is established to enable school
districts and charter schools to transmit student level data and school finance data
electronically through the internet to the department of education for the purposes of
complying with the statutory obligations of the department of education and the state
board of education.
15-1042 Time line; student level data; definition
A. The department of education shall notify school districts and charter schools of
electronic data submission procedures and shall distribute a list of the specific student
level data elements that school districts and charter schools are required to
submit. The department of education shall not make any changes to the student level data
elements to be collected except for the following:
1. Student attendance data for a joint technological education district, including
entry date and exit date, for classes that count towards the student's graduation
requirements as provided for in section 15-701.01.
2. Student attendance data for a community college, unless the college is owned,
operated or chartered by an Indian tribe, including entry date and exit date, for classes
that count towards the student's graduation requirements as provided for in section
15-701.01.
B. By July 1, 2001, each school district and charter school shall submit electronic
data on a school by school basis, including student level data, to the department of
education in order for the school district or charter school to receive monies for the
cost of educating students pursuant to this title.
C. The department of education shall grant a school district or charter school an
extension to the deadline for the submission of student level data or may provide for an
alternative method for the submission of student level data if the school district or
charter school proves that good cause exists for the extension, and the school district
or charter school shall continue to receive monies for the cost of educating students
pursuant to this title. A school district or charter school requesting an extension shall
notify the department of education no later than June 1, 2001. The request by a school
district or charter school for an extension of the deadline for the submission of student
level data shall include a justification for the extension and the status of current
efforts towards complying with the submission of student level data.
D. A pupil or the parent or guardian of a pupil shall not be required to submit
data that does not relate to the provision of educational services or assistance to the
pupil.
E. Each student level data element shall include a statutory reference to the law
that necessitates its collection.
F. Student level data items submitted to the department of education by school
districts pursuant to this section shall not be used to adjust funding levels or
calculate the average daily membership for the purpose of funding school districts at any
time other than the fortieth, one hundredth and two hundredth day of the school year.
G. A school district or charter school is not required to submit student level data
to the department of education more often than once every twenty school days.
H. Notwithstanding subsection K of this section, the student level data shall
include reasons for the withdrawal if reasons are provided by the withdrawing pupil or
the pupil's parent or guardian. For the purposes of this subsection, the department of
education shall include in the specific student level data elements that school districts
and charter schools are required to submit data relating to students who withdraw from
school because the student is pregnant or because the student is the biological parent of
a child.
I. The department of education shall adopt guidelines to remove outdated student
level data collected by school districts and charter schools from the student
accountability information system beginning in the 2004-2005 school year.
J. All student level data collected pursuant to this section is confidential and is
not a public record. The data collected may be used for aggregate research and reporting.
K. For the purposes of this section, "student level data" means all data elements
that are compiled and submitted for each student in this state and that are necessary for
the completion of the statutory requirements of the department of education and the state
board of education relating to the calculation of funding for public education, the
determination of student academic progress as measured by student testing programs in
this state, state and federal reporting requirements and other duties prescribed to the
department of education or the state board of education by law. Student level data does
not include data elements related to student behavior, discipline, criminal history,
medical history, religious affiliation, personal physical descriptors or family
information not authorized by the parent or guardian of the pupil.
15-1043 Student level data; confidentiality
Any disclosure of educational records compiled by the department of education
pursuant to this article shall comply with the family educational and privacy rights act
(20 United States Code section 1232g). Student level data is the property of the school
district or charter school and may not be updated unless the change is authorized by the
school district or charter school.
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