USA Statutes : arizona
Title : Education
Chapter : SCHOOL DISTRICT FUNDS AND RELATED OPERATIONS
15-1101 Revolving funds; purpose and manner of procuring
A. If the activities of a school district require immediate cash outlays for items
including postage, freight, express, fuel taxes, parcel post, travel or other minor
disbursements but not including salaries or wages, which are proper as ultimate claims
for payment from school district school funds, the governing board, or the superintendent
or chief administrative officer with the approval of the governing board, may apply to
the county school superintendent to establish and maintain a revolving fund. The
allowable amount of the fund shall be fifty cents per student count, except that for a
common school district or high school district, at the request of the governing board, or
the superintendent or chief administrative officer with the approval of the governing
board, the fund may be increased to an amount of five thousand dollars, but in no event
shall the amount of the fund be more than ten thousand dollars, and for a unified school
district, at the request of the governing board, or the superintendent or chief
administrative officer with the approval of the governing board, the fund may be
increased to an amount of ten thousand dollars, but in no event shall the amount of the
fund be more than twenty thousand dollars. The application shall state the purposes for
which the fund is required and the amount deemed necessary and shall designate the
particular official of the school district who shall be the custodian of and be charged
with the handling and accounting for the fund.
B. The county school superintendent may allow such application, draw a warrant to
the order of the designated custodian and charge the amount against the school district
fund, but no revolving fund shall be established unless the designated custodian is
bonded for an amount equal to twice the amount of the fund. The cost of the bond shall
be a proper charge against the school district.
C. The designated custodian shall periodically submit a voucher with supporting
papers covering disbursements from the revolving fund to the county school superintendent
who shall issue a warrant for the voucher to reimburse the fund. If the school district
is dissolved, consolidated, unified or subdivided, or if the governing board, or the
superintendent or chief administrative officer with the approval of the governing board,
decides to terminate the revolving fund, the designated employee shall return the
original amount of the revolving fund to the county treasurer by the date that the
dissolution, consolidation, unification or subdivision of the district becomes effective
or within thirty days after the date that the governing board decides to terminate the
revolving fund, whichever is appropriate.

15-1102 Disposition of proceeds from sale or lease of school property; school plant monies; payment of bonded indebtedness; definition
A. The governing board, or the superintendent or chief administrative officer with
the approval of the governing board, may expend the proceeds from the sale or lease of
school property for the payment of any outstanding bonded indebtedness of the school
district or for the reduction of school district taxes.
B. A common school district or high school district which has an outstanding bonded
indebtedness of seven per cent of the current year's assessed valuation or less or a
unified school district which has an outstanding bonded indebtedness of fourteen per cent
of the current year's assessed valuation or less may expend the proceeds from the sale or
lease of school property for maintenance and operation or capital outlay, subject to the
following limitations:
1. During the period that proceeds from the sale or lease of school property are
used for capital outlay, the school district shall not call an override election to
exceed the capital outlay revenue limit, except that during the last year of that period
the school district may authorize an override election to exceed the capital outlay
revenue limit beginning with the following year.
2. The total sum of the proceeds from the sale of school property before July 1,
1998 or the lease of school property for more than one year expended for maintenance and
operation shall not exceed fifteen per cent of the revenue control limit as provided in
section 15-947, subsection A in any year of which ten per cent may be used without voter
approval and an additional five per cent may be used if the additional amount is approved
by a majority of the qualified electors voting in an election called for such
purposes. The election shall be conducted and notice and ballots shall be prepared as
provided in section 15-481. Proceeds from the sale of school property from and after
June 30, 1998 shall not be expended for maintenance and operation.
3. In any fiscal year in which a district utilizes budget increases as authorized
in section 15-481, subsection E or F or section 15-482 or utilizes the proceeds from the
sale of school property before July 1, 1998 or the lease of school property for more than
one year for maintenance and operation or any combination of these provisions, the total
amount of these increases which may be expended is equal to fifteen per cent of the
revenue control limit for that year as provided in section 15-947, subsection A, provided
that the following maximum amount is attributable to the use of any one provision:
(a) Fifteen per cent of the revenue control limit when using the proceeds from the
sale before July 1, 1998 or lease of school property for maintenance and operation as
provided in this section.
(b) Ten per cent of the revenue control limit when using a budget increase as
provided in section 15-481, subsection E or F, or both.
(c) Five per cent of the revenue control limit when using a budget increase as
provided in section 15-482.
C. A common school district or high school district which has an outstanding bonded
indebtedness of greater than seven per cent of the current year's assessed valuation or a
unified school district which has an outstanding bonded indebtedness of greater than
fourteen per cent of the current year's assessed valuation may expend the proceeds from
the lease or sale of school property as follows:
1. For maintenance and operation the expenditure may not exceed the lesser of the
limit in subsection B, paragraph 2 or 3 of this section or the amount of the proceeds
from the lease of school property multiplied by .25.
2. For capital outlay, the expenditure of the proceeds:
(a) From the sale of school property may not exceed the amount of the proceeds
multiplied by .62.
(b) From the lease of school property is not limited.
D. The governing board, or the superintendent or chief administrative officer with
the approval of the governing board, shall promptly deposit monies received for and
derived from the sale or lease of school property with the county treasurer who shall
establish three school plant funds, one fund for monies received from the sale before
July 1, 1998 or lease of school property for more than one year, one fund for monies
received from the sale of school property from and after June 30, 1998 and one fund for
monies received from the lease of school property for one year or less. The county
treasurer shall credit the deposits to the respective school plant fund of the respective
school district. Monies placed to the credit of the school plant funds may be expended
as provided in this section. The school plant funds are continuing funds not subject to
reversion.
E. Notwithstanding subsection C of this section, the governing board, or the
superintendent or chief administrative officer with the approval of the governing board,
may expend the proceeds from the sale before July 1, 1998 or lease of school property for
the additional maintenance and operations expenses incurred as the result of operating on
a year-round school year operation basis pursuant to section 15-855. The amount that
the governing board, superintendent or chief administrative officer may expend for a
year-round school year operation, as provided in this subsection, is limited to the
actual maintenance and operations costs incurred as the result of the year-round school
year operation as documented in the school district's budget as provided in section
15-855. A governing board, superintendent or chief administrative officer that utilizes
the provisions of this subsection is subject to all other limitations prescribed in this
section regarding the expenditure of proceeds from the sale before July 1, 1998 or lease
of school property.
F. Notwithstanding subsections B and D of this section, if the school district
electors approve the sale of school property and the use of the proceeds for the purchase
of school sites or the construction, improvement or furnishing of school facilities, the
proceeds from the sale shall be put in a separate fund for use for the approved purpose
as prescribed by the uniform system of financial records. This fund is a continuing fund
not subject to reversion, except that after ten years any unexpended monies shall be put
in the school plant fund for use as prescribed in this section.
G. Proceeds from sales by condemnation or sales under threat of condemnation may be
deposited with the county treasurer for deposit in the condemnation fund or the school
plant fund of the school district. The condemnation fund is a continuing fund not
subject to reversion, except that after ten years any unspent monies shall be placed in
the school plant fund to be used as prescribed in this section. The governing board, or
the superintendent or chief administrative officer with the approval of the governing
board, may apply the proceeds in the condemnation fund to:
1. The payment of any outstanding bonded indebtedness of the school district which
is payable from the levy of taxes upon property within the school district.
2. Construct, acquire, improve, repair or furnish school facilities or sites after
notice and a hearing.
H. Proceeds from a right-of-way settlement shall be deposited with the county
treasurer for deposit in the condemnation fund of the school district. The governing
board, or the superintendent or chief administrative officer with the approval of the
governing board, shall apply such proceeds in the condemnation fund to construct,
acquire, improve, repair or furnish school facilities or sites after notice and a
hearing.
I. For purposes of this section, "capital outlay" means unrestricted capital outlay
as prescribed in section 15-903, subsection C.


15-1103 Insurance proceeds fund; disposition of proceeds
A. Monies received for and derived from insurance losses shall be deposited with
the county treasurer who shall credit the deposits to the insurance proceeds fund of the
respective school district. The insurance proceeds fund of a school district is a
continuing fund not subject to reversion.
B. The governing board, or the superintendent or chief administrative officer with
the approval of the governing board, may apply the proceeds from insurance recoveries to
the payment of any outstanding bonded indebtedness of the school district which is
payable from the levy of taxes upon property within the school district.
C. The governing board, or the superintendent or chief administrative officer with
the approval of the governing board, may apply the proceeds of insurance recoveries to
construct, acquire, improve, repair or furnish school buildings after notice and a
hearing. 15-1104 Unemployment compensation fund
Unemployment compensation monies shall be deposited with the county treasurer who
shall credit the deposits to the unemployment compensation fund of the respective school
district. The unemployment compensation fund of a school district is a continuing fund
not subject to reversion, except that any monies in the fund determined by the governing
board, or the superintendent or chief administrative officer with the approval of the
governing board, to be in excess of insurance needs shall be used for reduction of school
district taxes for the budget year.

15-1105 Lease of school property; civic center school fund; reversion to school plant fund; definitions
A. The governing board, or the superintendent or chief administrative officer with
the approval of the governing board, may lease school property, including school
buildings, grounds, buses and equipment to any person, group or organization for any
lawful purpose, including recreational, educational, political, economic, artistic,
moral, scientific, social, religious or other civic or governmental purpose in the
interest of the community, including extended day resource programs. The governing board,
superintendent or chief administrative officer shall charge a reasonable use fee for the
lease of the school property, which fee may include goods contributed or services
rendered by the person, group or organization to the school district.
B. The governing board, or the superintendent or chief administrative officer with
the approval of the governing board, may permit the uncompensated use of school
buildings, grounds, buses, equipment and other school property by any school related
group, including student political organizations or by any organization whose membership
is open to the public and whose activities promote the educational function of the school
district as determined in good faith by the school district's governing board, or the
superintendent or chief administrative officer with the approval of the governing board,
including extended day resource programs, except as provided in section 15-511.
C. A person, group or organization that is otherwise eligible to lease school
property shall not be denied use of or charged differentiated fees for school property on
the basis of the person, group or organization's beliefs, expression of beliefs or
exercise of the rights of association that are protected under the laws of this state,
the Constitution of ARIZONA, the laws of the United States or the United States
Constitution.
D. The governing board shall annually approve a fee schedule for the lease of
school property. The fee schedule shall include a designation of the persons, groups or
organizations that shall have uncompensated use of the school property, and a procedure
for determining the value of goods and services being provided as compensation for the
use of school property. The governing board, superintendent or chief administrative
officer shall require proof of liability insurance for such use or lease of school
property.
E. Except as provided in section 15-1102, monies received for and derived from the
use or lease of school property under this section shall be promptly deposited with the
county treasurer who shall credit the deposits to the civic center school fund of the
respective school district. Monies placed to the credit of a civic center school fund
may be expended for civic center school purposes by warrants drawn upon order of the
school district governing board, or the superintendent or chief administrative officer
with the approval of the governing board. The civic center school fund of a school
district or multiple school district civic center school program is a continuing fund not
subject to reversion, except upon termination of a civic center school program. Upon
termination of a civic center school program any remaining funds shall revert to the
school plant fund of the school district or districts.
F. For the purposes of this section:
1. "Educational function" means uses that are directly related to the educational
mission of the school district as adopted by the school district governing board and
includes parent-teacher organizations, youth organizations and school employee
organizations.
2. "Extended day resource programs" means activities offered on school property
before or after school or at times when school is not customarily in session for children
who are of the age required for kindergarten programs and grades one through eight. The
program may be offered for children who are of the age required for a kindergarten
program or for one grade or for any combination of kindergarten programs and
grades. Activities may include physical conditioning, tutoring, supervised homework or
arts activities.
3. "Reasonable use fee" means an amount that is at least equal to the school
district's cost for utilities, services, supplies or personnel that the school provides
to the lessee pursuant to the terms of the lease.

15-1106 Permanent teacherage fund; uses; definition
A. A school district governing board, or the superintendent or chief administrative
officer with the approval of the governing board, may establish a permanent teacherage
fund. Such fund shall be comprised of proceeds obtained from the lease of teacherages
within the school district. Monies in such fund may be used for any of the following
purposes:
1. Maintenance and operation of teacherages.
2. Debt service related to teacherages.
3. Purchase of houses, including mobile or modular housing, to be used exclusively
as teacherages for school districts located on Indian and federal lands.
4. Reduction of the local tax levy if accumulation in such fund warrants such use.
B. Monies in a permanent teacherage fund are not subject to reversion.
C. For the purposes of this section, "teacherage" means any housing facilities for
teachers and other school employees provided by a school district pursuant to section
15-342, paragraph 6.

15-1107 Litigation recovery fund; disposition of proceeds
A. Monies received for and derived from settlement of legal controversies or from
recovery of costs, attorney fees or damages by a school district in litigation by or
against the school district shall be deposited with the county treasurer who shall credit
the deposits to the litigation recovery fund of the school district. The litigation
recovery fund is a continuing fund which is not subject to reversion.
B. If a school district receives monies as provided in subsection A for the purpose
of replacing or repairing school buildings or other school property, the governing board,
or the superintendent or chief administrative officer with the approval of the governing
board, may only apply the proceeds to:
1. Pay any outstanding bonded indebtedness of the school district which is payable
from the levy of taxes on property within the school district.
2. Construct, acquire, improve, repair or furnish school buildings after notice and
a hearing.
3. Replace or repair the school property other than school buildings.
C. Except as provided in subsection B, the governing board, or the superintendent
or chief administrative officer with the approval of the governing board, may apply the
proceeds of litigation recoveries to procure legal services or for the costs of
litigation. 15-1108 District services fund
A. A school district governing board may establish district services programs to
provide goods or services, excluding services provided pursuant to section 15-213, to
district schools or departments or other school districts and may charge users on a cost
reimbursement basis. Revenues from the operation of a district services program shall be
transmitted to the county treasurer for deposit in a district services fund. The
governing board may employ personnel, purchase supplies and equipment and incur other
necessary expenses related to the operation of a district services program. Examples of
district services programs include printing and duplicating, data processing and motor
pool services.
B. A district services fund shall be accounted for as prescribed in the uniform
system of financial records pursuant to chapter 2, article 4 of this title. A school
district governing board may advance monies from the maintenance and operation fund into
the district services fund to cover start-up costs. Monies in the district services fund
are not subject to reversion at the end of the fiscal year. The governing board may
direct the county treasurer to establish a separate fund pursuant to this section for
each district services program.
C. A school or department may choose not to purchase services from a district
services program if the school or department determines that it is more advantageous for
the school or department to procure the services from another source.
D. The provisions of this section shall not be utilized to replace services
provided to a school district by a private enterprise as defined in section 41-2751.

15-1121 Student activities monies defined
All monies raised with the approval of the governing board of a school district by
the efforts of students in pursuance of or in connection with all activities of student
organizations, clubs, school plays or other student entertainment other than funds
specified in sections 15-1125 and 15-1126 are student activities monies.

15-1122 Student activities treasurer; assistant student activities treasurer; administration of student activities monies
A. The governing board of any school district having student activities monies
shall establish a student activities fund and appoint a student activities
treasurer. The student activities treasurer shall deposit the student activities monies
in a bank account designated the student activities account. In school districts which
have multiple schools the governing board may designate an assistant student activities
treasurer for each school. Each assistant student activities treasurer shall deposit
student activities monies in the school district's student activities bank account or in
student activities bank accounts established separately for each school. Disbursements
from the student activities accounts shall be by check, signed by two persons, one of
whom shall be either the student activities treasurer or an assistant student activities
treasurer and one of whom shall be any other person authorized to sign by the governing
board. The governing board may appoint more than one person to act as cosigner with the
student activities treasurer or assistant student activities treasurer. Any disbursement
shall be authorized by or on behalf of the student members of the particular club or
organization as provided in the uniform system of financial records. The student
activities treasurer and assistant student activities treasurers shall give bonds in an
amount determined by the governing board, and the cost of bond premiums shall be a charge
against the school district.
B. Accounts showing the balances due the respective student organizations as
provided in section 15-1121 shall be kept by the student activities treasurer and
assistant student activities treasurers and shall be open to inspection by officers of
the student bodies concerned.

15-1123 Record of revenues and expenditures
A. The student activities treasurer or assistant student activities treasurer shall
maintain an accurate detailed record of all revenues and expenditures of the student
activities fund. The record shall be made in such form as the governing board of the
school district prescribes. Copies of the record shall be presented to the governing
board of the school district not less than once during each calendar month.
B. Student activities fund monies may be invested and reinvested by the governing
board of a school district. All monies earned by investment shall be credited to the
student activities fund of the school district.

15-1124 Student activities revolving fund for expenses
The governing board of a school district may, by resolution entered upon its
minutes, establish a revolving fund for the purpose of meeting necessary current expenses
connected with student activities as defined by this article. The amount of the
revolving fund shall be determined by the governing board which establishes the fund and
provision for its establishment shall be included in the budget. The amount of monies
provided in the revolving fund shall, at the end of each fiscal school year, be returned
to the credit of the school district and the fund reestablished as provided in this
section.

15-1125 Auxiliary operations fund defined
The auxiliary operations fund shall consist of all monies raised with the approval
of the school district governing board in pursuance of and in connection with all
activities of school bookstores and athletic activities.

15-1126 Accounting; deposit; disposition of monies
A. Auxiliary operations fund monies shall be accounted for in accordance with the
requirements of the uniform system of financial records.
B. Auxiliary operations fund monies shall be deposited after authorization by the
governing board in a bank account designated as the auxiliary operations
fund. Disbursements from the fund shall be authorized by the governing
board. Disbursements shall be made by check signed by two employees of the school
district designated by the governing board. Persons authorized by the governing board to
sign checks shall give a bond in an amount determined by the governing board, and the
cost of bond premiums may be a charge against the fund.
C. Auxiliary operations fund monies may be invested and reinvested by the governing
board of a school district. All monies earned by investment shall be credited to the
auxiliary operations fund of the school district.
D. The governing board may establish an imprest petty cash fund at each school
within the school district for activities which require immediate cash outlays for
postage, freight, express, parcel post, travel or other minor disbursements, but not
including salaries or wages, which are proper as ultimate expenditures from the school
district auxiliary operations fund. Imprest petty cash funds established by the
governing board shall be funded from the school district auxiliary operations fund in an
amount to be determined by the governing board.
E. The governing board may establish a revolving fund bank account for each school
within the school district for necessary current expenditures in connection with school
bookstore and athletic activities. The revolving funds shall be funded from the auxiliary
operations fund in an amount to be determined by the governing board. The school shall
return the monies in the revolving fund bank account at the end of each fiscal year to
the credit of the school district auxiliary operations fund.

15-1141 Definitions
In this article, unless the context otherwise requires:
1. "Community school" means any school engaged in a community school program.
2. "Community school monies" means monies received as fees, tuitions, grants or
donations from any person or agency for a community school program.
3. "Community school program" means the involvement of people in the development of
an educationally oriented community. The community school serves the purposes of
academic and skill development for all citizens, furnishes supervised recreational and
avocational instruction, supplies remedial and supplemental education, furnishes meeting
places for community groups and provides facilities for the dissemination of a variety of
community related services, including extended day resource programs as defined in
section 15-1105.

15-1142 Powers of the governing board
The governing board of any school district may:
1. Establish and operate a community school program in any school in its school
district.
2. Budget and expend from the maintenance and operation section of the budget, as
defined in section 15-903, to employ a qualified director necessary for each school or
combination of schools engaged in community school programs.
3. Expend community school monies for operation of a community school program.
4. Establish tuition and fee charges for community school programs.

15-1143 Community school program fund
Monies deposited in a community school fund of a school district may be used for
community school programs only and are not subject to reversion, except upon termination
of a community school program. Upon termination of a community school program any
remaining funds shall revert to the operating budget of the school district.

15-1151 Definition of school meal programs
In this article, unless the context otherwise requires, "school meal programs" means
programs under which meals are served by a public or private school on a nonprofit basis
to children in attendance, including a program under which federal assistance is
received.

15-1152 School meal programs; nonschool meal programs; powers of state board of education
The state board of education may enter into agreements with an agency of the federal
government, a governing board or another agency or person, direct the disbursement of
federal and state monies in accordance with provisions of federal and state law, direct
the distribution of commodities as provided by federal and state law, prescribe
regulations, employ personnel, give technical advice and assistance to governing boards
in connection with establishment and operation of school meal programs, assist in
training personnel engaged in operation of school meal programs and take other action it
deems necessary to provide for the establishment and maintenance of school meal
programs. The state board of education and the governing boards may also accept gifts
for use in connection with a school meal program. Agreements entered into pursuant to
this section are exempt from the provisions of section 11-952, subsections D and F. The
form to be used in the agreements shall be approved annually by the attorney general
prior to its use in such agreements. The department of education shall file with the
secretary of state by January 1 one blank copy of the agreement form and a list of the
agencies with which the department entered agreements during the preceding year.

15-1153 Federal funds; acceptance; disbursement
A. The state board of education may accept and direct the disbursement of funds
appropriated by act of Congress and apportioned to the state for use in connection with
school meal programs. The state board shall deposit, pursuant to sections 35-146 and
35-147, such funds in the school meal program fund. Disbursements from the fund shall
be made in accordance with the provisions of section 35-185.
B. Notwithstanding any provision of title 35, chapter 1 limiting the drawing of
warrants after the expiration of the fiscal year in which an obligation is incurred, the
state board of education may accept and direct the allocation of federal funds
apportioned to the state for use in connection with school meal programs, which are
received and the allocation effected not later than six months after expiration of the
fiscal year for which the allocation is made. 15-1154 Operation of school meal programs by governing boards; school meal program fund; revolving fund
A. A governing board may operate school meal programs, and for that purpose may
employ personnel, purchase equipment and food and incur other necessary expenses, making
payment therefor through the use of gifts or donations, proceeds of sales of school
meals, contributions made available by the federal government or monies obtained by
school district levy, but no monies acquired by the levy of state, county or school
district taxes shall be expended for food.
B. Any monies received in the operation of a school district school meal program
shall be deposited with the county treasurer who shall credit the deposits to the school
meal program fund of the respective school district. Monies deposited to the credit of a
school meal program fund may be withdrawn by voucher as approved by the governing board
for operation of the school district school meal program, except that a revolving fund of
five hundred dollars may be established in the manner and for the purposes prescribed in
subsection C of this section. The school meal program fund of a school district is a
continuing fund not subject to reversion.
C. The governing board of any school district with the consent of the county school
superintendent may establish for the operation of school meal programs a revolving fund
of five hundred dollars which may be used for payment of freight on commodities, purchase
of food required in emergencies, employment of temporary personnel for employment which
does not exceed eight hours for any person or other minor disbursements. The revolving
fund monies shall be deposited in a federal reserve bank in a designated account and
shall be withdrawn by check signed by two bonded employees appointed by the governing
board of the school district.
D. Upon approval of a revolving fund as prescribed by subsection C of this section,
the county school superintendent shall draw a warrant to the order of the designated
employees and charge the amount thereof against the school district school meal program
fund, but no revolving fund shall be established unless the designated employees are
bonded for an amount equal to twice the amount of the fund. The cost of the bond shall
be a proper charge against the school district school meal program fund.
E. The designated employees shall periodically submit a voucher with supporting
papers covering disbursements from the school meal revolving fund prescribed by
subsection C of this section to the county school superintendent who shall issue a
warrant for the voucher to reimburse the fund. If the school district is dissolved,
consolidated, unified or subdivided, or if the governing board decides to terminate the
revolving fund, the designated employees shall return the original amount of the
revolving fund to the county treasurer by the date that the dissolution, consolidation,
unification or subdivision becomes effective or within thirty days after the date that
the governing board decides to terminate the revolving fund, whichever is appropriate,
for deposit in the school meal program fund of the respective school district.

15-1155 Records, reports, regulations, audits and inspections by state board of education
The state board of education shall prescribe regulations for keeping accounts and
records and making reports, under the supervision of governing boards. The accounts and
records shall be available at all times for inspection and audit by authorized officials
and shall be preserved for a period, not exceeding five years, as prescribed by the state
board. The state board shall conduct or cause to be conducted audits, inspections and
administrative reviews of accounts, records and operations as are necessary to determine
whether the school meal programs are being administered according to the provisions of
this article and the regulations made by the state board.

15-1157 Inclusion of expenses in budget of superintendent of public instruction
There shall be included in the budget of the superintendent of public instruction,
for presentation to the legislature, such amounts as required by the state board of
education for and limited to the administration of this article, including the
establishment, maintenance, operation and expansion of school meal programs.

15-1158 Agreements for meals for persons sixty years of age or older
A. The governing board of any school district may enter into an agreement with any
individual, firm, partnership, corporation, association or public agency whereby the
school district agrees to prepare meals for persons sixty years of age or older and their
spouses, or any group of such persons, by utilizing the systems and procedures already
developed for use in the school meal programs of such school district.
B. An agreement entered into by a governing board of a school district, pursuant to
the provisions of this section, shall not:
1. Involve the expenditure by the school district of any federal or state school
meal monies or other school monies or the use of any school meal commodities or school
district personnel, equipment or facilities unless the agreement includes a provision
requiring full reimbursement for such expenditure.
2. Provide for payment to the school district of any amount in excess of the
estimated cost of food, personnel, equipment, facilities and other necessary expenditures
involved in the performance of the agreement.
3. Permit any program of meals for persons sixty years of age or older and their
spouses to interfere in any way with the use of school meal facilities for school
purposes.
C. The department of education may cooperate with any individual, firm,
partnership, corporation, association or public agency in the planning of programs
whereby school districts may prepare meals for persons sixty years of age or older and
their spouses, or any group of such persons, by utilizing the systems and procedures
already developed for use in the operation of school meal programs.
D. The department of education shall adopt regulations containing guidelines for
governing boards of school districts entering into such agreements.

15-1171 Trust assets of ARIZONA rural rehabilitation corporation; transfer to state board of education
The state board of education is designated as the state agency empowered to make
application to the secretary of agriculture of the United States, or any other proper
federal official, pursuant and subject to the provisions of act of May 3, 1950 (P.L.
81-499; 40 U.S.C. sec. 440 et seq.) for the trust assets, either funds or property, held
by the United States as trustee on behalf of the ARIZONA rural rehabilitation
corporation.
15-1172 ARIZONA youth farm loan fund
Notwithstanding any other law, funds and the proceeds of the trust assets shall be
received by the state board of education and shall be deposited, pursuant to sections
35-146 and 35-147, in a special fund to be known as the ARIZONA youth farm loan fund that
is maintained as a revolving fund and that is appropriated for continuing expenditure or
obligation as provided by this article.
15-1173 Use of funds
A. Except as provided in subsection C of this section, monies in the ARIZONA youth
farm loan fund may be used only for such of the rural rehabilitation purposes as are
permissible under the ARIZONA rural rehabilitation corporation's charter as it appeared
during the calendar year 1960 and as may from time to time be agreed upon by the state
board of education and the secretary of agriculture of the United States or his delegate,
including but not limited to furnishing financial assistance to deserving young persons
under twenty-five years of age who are students or former students of vocational
agriculture or young farmers in organized vocational agriculture classes in becoming
satisfactorily established in farming through guaranteed loans, if they cannot obtain
needed financing elsewhere on reasonable rates and terms.
B. Administrative expenses of carrying out the provisions of this article,
including but not limited to salaries, capital outlay, professional services, travel and
current expenditures, shall be paid from annual appropriations made by the legislature to
the state board of education, and no part of the trust funds as provided by subsection A
of this section may be used for any purpose not expressly listed in subsection A or C of
this section.
C. On notice from the state board of vocational 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.
15-1174 Powers and duties
The state board of education on behalf of the state of ARIZONA is authorized and
empowered to:
1. Collect, compromise, adjust or cancel claims and obligations arising out of or
administered under this article or under any mortgage, lease, contract or other agreement
entered into or administered pursuant to this article and, if in its judgment necessary
and advisable, pursue the same to final collection in any court having jurisdiction.
2. Bid for and purchase at any execution, foreclosure or other sale, or otherwise
to acquire, property upon which the state board has a lien by reason of a judgment or
execution, or which is pledged, mortgaged or conveyed or which otherwise secures any loan
or other indebtedness owing to or acquired by the state board under this article.
3. Accept title to any property so purchased or acquired, to operate or lease such
property for such period as may be deemed necessary to protect the investment therein and
to sell or otherwise dispose of such property in a manner consistent with the provisions
of this article.
15-1175 Liability
The United States, and the secretary of agriculture thereof, shall be held free from
liability by virtue of the transfer of the assets to the state board of education
pursuant to this article.
15-1181 Definitions
In this article, unless the context otherwise requires:
1. "Child" means a person who is at least three years of age by September 1 of the
current year but who is under twenty-two years of age.
2. "Foster parent" means a person who may serve as the parent of a child with
disabilities if that person has an ongoing, long-term parental relationship with the
child, is willing to make educational decisions for the child and has no personal
interest that would conflict with the interests of the child.
3. "Fund" means the special education fund.
4. "Home school district" has the same meaning prescribed in section 15-761.
5. "Individualized education program" has the same meaning prescribed in section
15-761.
6. "Parent" means the natural or adoptive parent of a child, the legal guardian of
a child, a relative with whom a child resides and who is acting as the parent of that
child or a surrogate parent who has been appointed for a child pursuant to section
15-763.01. Parent does not mean this state if the child is a ward of the state.
7. "Place" or "placement" means placement of a child in a private residential
facility for residential special education placement as defined in section 15-761 or by a
state placing agency for care, safety or treatment reasons.
8. "Private residential facility" means a private facility that is licensed by the
department of economic security or department of health services and to which one of the
following also applies:
(a) For special education placements, the facility has been approved by the
division of special education pursuant to section 15-765 for the purpose of providing
special education and related services.
(b) For other than special education placements, the facility has been accredited
by the north central association of colleges and secondary schools, except that private
facilities applying for initial approval as a private school are not required to receive
accreditation until three years after the date of initial approval as long as continual
progress toward accreditation is maintained.
9. "Related services" means related services as defined in section 15-761.
10. "Residential special education placement" has the same meaning prescribed in
section 15-761.
11. "Special education" has the same meaning prescribed in section 15-761.
12. "State placing agency" means the department of juvenile corrections, the
department of economic security, the department of health services or the administrative
office of the court.

15-1182 Special education fund; administration
A. There is established a special education fund which shall consist of legislative
appropriations made to the fund for purposes of this section and section 15-1202.
B. The fund shall be administered by the superintendent of public instruction for
the purposes provided in this article and article 7 of this chapter.
C. Each fiscal year the state board of education shall include in its budget
request for assistance to schools a separate line item for the fund.
D. The fund shall provide monies for the education of a child who has been placed
in a residential facility by a state placing agency or who requires a residential special
education placement as defined in section 15-761.
E. If a child has been placed in a residential facility by a state placing agency,
the fund shall provide monies for the following types of vouchers:
1. Initial residential education vouchers to fund the educational costs for any
child, whether or not eligible for special education. This paragraph applies to a child
who has been placed in a residential facility and who has either not received a
comprehensive education evaluation as provided in section 15-766, who has previously
received such an evaluation and was determined to be ineligible for special education
services or who is eligible for special education and for whom necessary procedures for
changing the child's educational placement must be completed. This voucher expires on
the expiration of sixty calendar days or completion of the educational evaluation or
review of special education placement, whichever occurs first.
2. Continuing residential education vouchers that fund the educational costs for
any child, whether or not eligible for special education, who requires placement in a
residential facility after the expiration of the initial education voucher and who is not
eligible for a residential special education voucher.
F. When a school district makes a residential special education placement, the fund
shall provide monies to fund the residential special education placement.
G. Monies in the fund are exempt from the provisions of section 35-190 relating to
lapsing of appropriations. Any monies left unexpended may be distributed to school
districts by the department of education for the following purposes:
1. To provide educational counseling, training and support services to a child with
a disability in order to maintain the child's educational placement in the least
restrictive environment.
2. To provide educational transition assistance to children who return to their
home after placement in a residential facility.
3. To train personnel for and develop and implement model programs for use by
school districts to serve children with emotional disabilities.
H. The total amount of state monies that may be spent in any fiscal year by the
superintendent of public instruction for the purposes of this article shall not exceed
the amount appropriated or authorized by section 35-173 for that purpose. This article
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.

15-1183 Placement; voucher application requirements
A. A voucher may not be issued pursuant to this article and a residential special
education placement may not be made in a private residential placement facility unless
the requirements of section 15-765, subsection G have been met.
B. If a state placing agency places a child in a private residential facility for
care, safety or treatment reasons, the state placing agency is responsible for requesting
an initial residential education voucher and notifying the home school district of the
placement. The home school district is responsible for completing screening or other
identification procedures for determining if the child is a child with a disability as
defined in section 15-761 and for reviewing the placement of a child with a disability to
determine whether a residential special education placement is necessary. Responsibility
for monitoring the educational services during the time a child is placed in the
residential facility and for planning for transition from the private residential
facility to a public school remains with the home school district.
C. An initial residential education voucher may be extended for good cause, as
determined by the director of the division of special education, on application by the
home school district. If an extension is denied or a home district fails to complete the
requirements for a continuing residential education voucher, the home school district is
responsible for payment of educational costs until the requirements of subsection B of
this section have been met.
D. In order to receive a continuing residential education voucher, an evaluation
pursuant to section 15-766 must be conducted and the following must occur:
1. The home school district shall provide prior written notice to the parent
indicating that the child is or is not eligible for special education and shall submit to
the department of education a copy of the prior written notice, the evaluation from which
the eligibility decision is made and, if the child is eligible for special education but
does not require residential special education placement, a copy of the individualized
education program indicating the special education to be provided while the child is
placed in the residential facility. If the child requires a residential special
education placement, section 15-765, subsection G applies.
2. On receipt from the home school district of the documentation specified in
paragraph 1, the department of education shall convert the initial residential education
voucher to a continuing residential education voucher that is valid for no longer than
the remainder of the school year during which it is issued.

15-1184 Vouchers; requirements; budgets; prohibited uses
A. The director of the division of special education shall develop requirements for
the approval of vouchers, as provided in this section, including the following:
1. For a special education residential placement voucher, documentation that the
requirements of section 15-765 have been met.
2. For an initial residential education voucher, documentation that the
requirements of section 15-1183, subsection B have been met.
3. For a continuing residential education voucher, documentation that the
requirements of section 15-1183, subsection C have been met.
B. The home school district shall consider recommendations from the state placing
agency when determining whether the child should be placed solely in the private
residential facility or should be placed for part of the school day in a school operated
by a school district as provided in section 15-1185.
C. The private residential facility must demonstrate that previously received
voucher monies were spent appropriately.
D. If approved, the appropriate voucher shall be issued in an amount not exceeding
the sum of the following and shall be paid directly to the private residential facility
in a manner prescribed by the superintendent of public instruction:
1. For group A and for placements not requiring special education services, the
base level multiplied by two.
2. For group B, the sum of the support level weight as provided in section 15-943,
paragraph 2, subdivision (a) for kindergarten programs through grade eight or for grades
nine through twelve, whichever is appropriate, and the support level weight for the
category, multiplied by the base level.
3. For both group A and group B, two hundred forty dollars for capital outlay costs
or related services and fifty dollars for transportation or related services
costs. Beginning with fiscal year 1991-1992, the amounts provided in this paragraph for
capital outlay and transportation are increased by the growth rate prescribed by law,
subject to appropriation.
E. When an initial residential education voucher expires the funding for the
initial residential education voucher shall be paid directly to the private facility from
the date of initial placement until the date on which the voucher expires pursuant to
section 15-1183.
F. For the purpose of this article, the chief official of each state placing agency
and the superintendent of public instruction shall jointly prescribe a uniform budgeting
format to be submitted by each private institution and to be used in determining
instructional costs and residential costs of persons placed.
G. Any residential special education placement or residential education voucher
issued pursuant to this article shall not be used in any private residential facility
that discriminates on the basis of race, religion, creed, color, national origin or
disability.
H. Voucher monies shall only be spent to provide education and related services to
children placed as provided in this article. The state board of education may withhold
funding from an institution for noncompliance with any applicable statute or any
applicable rule adopted by the state board.
I. The individualized education program for any child requiring a residential
special education placement must include exit criteria that indicate when the educational
placement of the child shall be reviewed in order to determine whether the child can be
moved to a less restrictive placement.

15-1185 School district responsibility; integration into a school
A. For a child who is placed in a private residential facility pursuant to this
article, the home school district is responsible for reviewing the child's educational
progress and planning for integrating the child into a public school when it is
educationally appropriate.
B. The private residential facility and the state placing agency shall work with
the home school district for purposes of integrating the child into a public school when
it is educationally appropriate.
C. If a child who has been placed in a private residential facility for care,
safety or treatment reasons attends a public school in other than the home school
district on either a part-time or full-time basis, the residential education voucher
terminates and the following apply:
1. The school district of attendance must apply for a certificate of educational
convenience as provided in section 15-825, subsection B.
2. If the child attends school in the residential facility on a part-time basis,
the school district of attendance must apply for a certificate of educational convenience
and either provide direct services in the residential facility or contract with the
residential facility for that portion of educational services that the private
residential facility is to provide.
D. If a child who requires residential special education placement is placed
outside of the home school district and is able to attend a nonresidential school on a
part-time basis, the residential special education placement voucher terminates. The
school district of attendance shall apply for a certificate of educational convenience
and pay a prorated tuition amount to the private residential facility.

15-1201 Definitions
In this article, unless the context otherwise requires:
1. "Fund" means the special education fund established by section 15-1182.
2. "Institution" means the ARIZONA state schools for the deaf and the blind, the
ARIZONA training program facilities as provided in section 36-551 and the ARIZONA state
hospital.
3. "Place" or "placement" means placement of a person in an institution, as defined
in this section, for special education only or for special education and residential and
custodial care.
4. "Special education" means the adjustment of the environmental factors,
modification of the course of study and adaptation of teaching methods, materials and
techniques to provide educationally for those children who are at least three but not
more than twenty-one years of age and who are gifted or disabled to such an extent that
they do not profit from the regular course of study or need special education services in
order to profit. Difficulty in writing, speaking or understanding the English language
due to an environmental background in which a language other than English is spoken
primarily or exclusively shall not be considered a sufficient handicap to require special
education.

15-1202 Special education fund account; administration; expenditure limitation
A. There is established a separate account within the fund which shall consist of
legislative appropriations to the account for special education institutional vouchers.
B. The account shall be administered by the superintendent of public instruction
for the purposes provided in this article.
C. Each fiscal year the state board of education shall include in its budget
request for assistance to schools a separate line item for the account.
D. The total amount of state monies that may be spent in any fiscal year by the
superintendent of public instruction for the purposes of this article shall not exceed
the amount appropriated or authorized by section 35-173 for that purpose. This article
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.

15-1203 Placement; requirements
A. No child may be placed for the purpose of special education in an institution
unless the institution has applied for and had issued a voucher pursuant to this article.
Initial approval for placement shall be given when evaluation information, a copy of the
individualized education program and placement documentation are provided to the special
education section of the department of education. These documents shall be maintained by
the school district or charter school and the receiving institution.
B. A school district may make an interim placement of an eligible child in an
institution pursuant to an interim individualized education program. For purposes of
this subsection, "interim placement" means placement of a child in an institution for a
period of time not to exceed sixty days for the purpose of completing an educational
evaluation as required by section 15-766 and making a specific placement.
C. No child who is a resident of an institution may be placed in a school special
education program unless the school has applied for and had issued a special education
institutional voucher pursuant to this article.

15-1204 Voucher; application; approval; requirements; budgets; prohibited uses; advances
A. When an institution decides to place a person in an institutional special
education program, the institution, upon application to and approval by the division of
special education, shall have a permanent special education institutional voucher issued
pursuant to this article to pay the special education instructional costs of the person
at the institution.
B. When an institution decides to place a person who resides in the institution in
a school special education program, the school, upon application to and approval by the
division of special education, shall have a permanent special education institutional
voucher issued pursuant to this article to pay the special education instructional costs
of the person in the school.
C. No person residing in an institution and attending a school may have a
certificate of educational convenience issued pursuant to section 15-825, subsection A.
D. The director of the division of special education shall develop requirements for
the approval of vouchers, pursuant to this section, including the requirement that the
person be educationally evaluated.
E. If approved, the voucher, in an amount not exceeding the sum of the following,
shall be paid directly to the institution or deposited with the county treasurer to the
credit of the school, with notice to the county school superintendent:
1. For group A, the base level multiplied by two.
2. For group B, the sum of the base for kindergarten through eight and the support
level weight for the category, multiplied by the base level.
3. For both group A and group B, one hundred dollars for capital outlay costs and
fifty dollars for transportation costs.
F. The budget format developed cooperatively between the department of economic
security and the department of education pursuant to section 8-503 shall be used by the
institutions to determine and segregate residential costs from educational instructional
costs.
G. If sufficient appropriated monies are available and upon a showing by an
institution that additional state monies are necessary for current expenses, an advance
apportionment of state aid may be paid to an institution. In no event shall an
institution have received more than three-fourths of its total apportionment under this
section 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.
H. Notwithstanding subsection G of this section, when making the April payment to
an institution, the department of education may include an additional amount based on an
estimate of monies payable to the institution in May. Before the department of education
apportions monies to the institution in June, it shall adjust the June payment to account
for any discrepancies between the monies actually paid in April and May and the amount
which should have been paid. If an overpayment in May exceeds the total amount payable
in June, the institution shall refund to the department of education an amount equal to
the overpayment within sixty days of notification of the overpayment. If the overpayment
is not refunded within sixty days by the institution, the superintendent of public
instruction shall reduce the state aid entitlement to the institution for the succeeding
fiscal year to recover any overpayment of state aid received during the current fiscal
year.
I. Any special education institutional voucher issued pursuant to this article
shall not be used in any school or institution that discriminates on the basis of race,
religion, creed, color or national origin.
J. The state board of education may withhold state aid from an institution for
noncompliance with any applicable statute or any applicable rule adopted by the state
board.

15-1205 Voucher; evaluation; placement; definition
A. An application for a voucher pursuant to this article shall not be approved
unless the child has been educationally evaluated and recommended for placement in
accordance, as nearly as practicable, with the conditions and standards prescribed by the
superintendent of public instruction pursuant to rules of the state board of education.
B. In determining the recommendation for placement the chief official of the
institution shall consult at a minimum with the following:
1. The parent, as defined in section 15-761 of the child recommended for placement.

2. The person performing the educational evaluation pursuant to this section.
3. A special educator who is certified in an area related to the child's
disability.
C. The placing agency may sign a voucher application for submission to the
department of education.
D. Nothing in this article shall be construed to prevent a child who has not been
educationally evaluated from being placed in an institution if such placement is for the
purpose of residential and custodial care only and not for educational reasons. The
institutional voucher shall not be paid for such placements.
E. For the purposes of this section, "educationally evaluated" means an evaluation
pursuant to section 15-766.

15-1221 Bank account; federal savings bonds; withholdings; vendor electronic payments
A. The governing board may establish a bank account for the purpose of depositing
the monies it withholds for each employee for payments under federal savings bond plans
until the employee accumulates sufficient monies for the purchase of bonds under the
plan. The governing board may make disbursements from the bank account only by check
payable to the financial institution in which the monies are deposited for the purchase
of bonds by the employee from the financial institution. The bank account may be
interest-bearing, and the governing board shall transfer any interest at the end of the
fiscal year to the county treasurer for credit to the maintenance and operation fund of
the school district.
B. The governing board may establish a bank account for the purpose of making
electronic payments to vendors. The account may be a revolving account, funded by
the school district by a warrant requested from the county school superintendent and
drawn on the county treasurer for an amount equal to the vendor's payment amount. The
account may be an interest bearing account. The account shall be a clearing account
maintaining a zero balance and shall not accumulate funds except for any account interest
balances. The district governing board shall transfer any interest at the end of the
fiscal year to the county treasurer for credit to the maintenance and operation fund of
the school district.
C. The governing board of a school service program established pursuant to section
15-365 may establish a bank account for the purpose of making electronic payments to
vendors. The account may be a revolving account, funded by the school service program by
a warrant requested from the county school superintendent and drawn on the county
treasurer for an amount equal to the vendor's payment amount. The account may be an
interest bearing account. The account shall be a clearing account maintaining a zero
balance and shall not accumulate funds except for any account interest balances.
D. The auditor general in conjunction with the department of education shall
prescribe the procedures for accounting for the monies withheld pursuant to this section
in the uniform system of financial records.

15-1222 Bank account; employee income tax; withholdings
A. The governing board of a school district may establish a bank account for the
purpose of depositing the monies it withholds for each employee for application toward
the employee's state income tax liability until the governing board must pay the monies
to the department of revenue as provided in section 43-401. The governing board may make
disbursements from the bank account only by check payable to the department of revenue.
The bank account may be interest-bearing, and the governing board shall transfer any
interest at the end of the fiscal year to the county treasurer for credit to the
maintenance and operation fund of the school district.
B. The auditor general in conjunction with the state board of education shall
prescribe the procedures for accounting for the monies withheld pursuant to this section
in the uniform system of financial records.

15-1223 Bank accounts; employee insurance; interest; accounting procedures
A. The governing board of a school district may establish bank accounts in which to
deposit the monies it withholds for employee insurance programs, the monies contributed
by the district for employee insurance programs and the monies received from former
employees, board members, former board members and surviving spouses and dependents of
board members or former board members for the insurance programs. The governing board
may disburse monies from the bank accounts only by check payable to the insurance
carriers or to make refunds of insurance to individuals.
B. The bank accounts may be interest-bearing, and the governing board shall
transfer any interest at the end of the fiscal year to the county treasurer for credit to
the maintenance and operation fund of the school district.
C. The auditor general in conjunction with the department of education shall
prescribe the procedures for accounting for monies pursuant to this section in the
uniform system of financial records.

15-1224 Grants to teachers for instruction
A. The governing board shall deposit in a separate bank account grants or gifts
which are less than one thousand five hundred dollars and designated for use by a teacher
for instructional purposes if the governing board does not deposit the grant or gift as
prescribed in section 15-341, subsection A, paragraph 15.
B. A separate record shall be maintained for each grant or gift deposited in the
bank account.
C. Disbursements from the bank account shall be by check signed by two employees of
the school district appointed by the governing board and shall be authorized by the
teacher designated to use the grant or gift as provided in the uniform system of
financial records.
D. If any of the monies are not spent before the end of the fiscal year in which
the gift or grant was accepted, the balance of the monies shall remain in the bank
account until needed for instructional purposes as designated by the teacher, or
determined by the grantor.

15-1231 Career and technical education and vocational education projects fund
A. The governing board of a school district may establish a permanent career and
technical education and vocational education projects fund in an amount not to exceed one
hundred thousand dollars. The fund shall consist of proceeds from the sale of items
produced by career and technical education and vocational education programs. Monies in
the fund may be used for any of the following purposes:
1. Purchase of materials for use by career and technical education and vocational
education pupils in an instructional program that produces a product that may be sold by
the school district.
2. Purchase of equipment, not to exceed five thousand dollars in any one fiscal
year, for use by career and technical education and vocational education pupils in an
instructional program which produces a product that may be sold by the school district.
3. Expenses directly related to the planning and design of career and technical
education and vocational education program products.
B. Monies in the career and technical education and vocational education projects
fund may not be used to pay salaries, wages or employee fringe benefits.
C. The career and technical education and vocational education projects fund of a
school district is a continuing fund, and monies in the career and technical education
and vocational education projects fund are not subject to reversion, except that all
monies in the fund in excess of one hundred thousand dollars at the end of the fiscal
year shall revert to the school plant fund.
15-1241 Academic contests fund; state board of education powers and duties; distribution of monies
A. The state board of education shall establish an academic contests fund
consisting of monies appropriated by the legislature or received by the state board as
provided in subsection D of this section.
B. The state board of education shall prescribe rules for the distribution of fund
monies to school districts for the purpose of sending pupils from the school district who
are state level winners of academic contests and their chaperons to the national levels
of these contests so that the pupils may represent this state.
C. The criteria on which the state board shall base its rules for the distribution
of fund monies shall include at least the following:
1. The contests must be academic in nature and motivate pupils to be creative and
to demonstrate excellence.
2. Contests must be sponsored by a recognized national organization.
3. Contests must be open to all pupils, regardless of race, creed, gender or
national origin, except that a contest may separate pupils by age or grade level.
4. The opportunity to compete at the national level must be the result of
successfully competing at the local or state level, or both, of that contest.
D. The state board of education may accept gifts or grants of monies for deposit in
the academic contests fund as provided in this section.
E. A school district which receives monies as provided in this section shall
include the monies in the special projects section of the budget as provided in section
15-903, subsection F.

15-1251 State block grant for early childhood education; evaluation
A. The state block grant for early childhood education program is established in
the state board of education. The purpose of the program is to promote improved pupil
achievement by providing flexible supplemental funding for early childhood programs,
including preschool programs for economically disadvantaged children, and programs that
serve all public school pupils statewide who are in kindergarten programs and grades one,
two and three.
B. Funding for the program for each fiscal year shall be allocated based on the
number of pupils in kindergarten programs and grades one, two and three in each charter
school or school district who were eligible for free lunches during the prior fiscal year
under the national school lunch and child nutrition acts (42 United States Code sections
1751 through 1785). Any charter school or school district that did not determine for the
prior fiscal year if its pupils in kindergarten programs and grades one, two and three
were eligible for free lunches under the national school lunch and child nutrition acts
shall receive funding for the program in the current fiscal year based on the number of
its pupils in kindergarten programs and grades one, two and three who would have been
eligible for free lunches in the prior fiscal year according to the statewide
kindergarten programs and grades one, two and three eligibility average for all school
districts and charter schools collectively for the prior fiscal year. Notwithstanding
this section, a school district or charter school with an average daily membership of
more than six hundred pupils in kindergarten programs and grades one, two and three in
the prior fiscal year shall have participated in the national school lunch and child
nutrition acts free lunches program in the prior fiscal year to be eligible for program
funding in the current fiscal year.
C. A school district or charter school that devotes part or all of its program
funding to preschool programs shall comply with all of the following requirements:
1. Restrict the preschool program only to preschool children eligible for free or
reduced price lunches under the national school lunch and child nutrition acts.
2. Allow participating pupils to receive preschool services only from a public,
federally funded or private child care provider, each of which shall be licensed by the
department of health services and each of which, beginning in fiscal year 1999-2000, also
shall be accredited by a state board of education approved organization that provides
accreditation for preschool programs.
3. Provide all federally funded or private child care providers located within the
school district or within ten miles of the charter school with information necessary for
them to participate in the program, including names and addresses of children selected
for participation and of their parents or guardians.
4. Provide all parents or guardians of children selected for the program with a
list of licensed federally funded or private child care providers located within the
school district or within ten miles of the charter school and explain to parents or
guardians that they may choose to have their child receive services under the program
from any provider on the list if that provider agrees to participate.
5. Allow at least fifty per cent of pupils selected for the program to receive
preschool services from a federally funded or private child care provider of their
parent's or guardian's own choosing.
6. Allow any eligible child care provider located within the school district or
within ten miles of the charter school to participate in the program if it is willing to
provide services at a unit cost similar to that paid to other providers in the area under
the program.
7. Limit the use of contracts with federally funded and private child care
providers to financial agreements pertaining to numbers of children to be served, hours
of service to be provided per child, payment rates and other financial aspects of the
program.
8. Limit to five per cent the amount of block grant monies that may be used locally
for program administration.
9. Pay participating federally funded and private child care providers in a timely
manner.
D. The legislative council shall conduct a programmatic evaluation of the state
block grant for early childhood education program every three years. For this evaluation,
the staff of legislative council shall develop outcome measures to indicate the
effectiveness of the early childhood education program. The department of education shall
assist the staff of legislative council in collecting any information necessary to
complete the evaluation.