Bill Text: AZ HB2061 | 2010 | Forty-ninth Legislature 2nd Regular | Introduced
Bill Title: Teacher performance pay; special assessment
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-03-18 - House Committee of the Whole action: Retained on the Calendar [HB2061 Detail]
Download: Arizona-2010-HB2061-Introduced.html
PREFILED JAN 07 2010
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REFERENCE TITLE: teacher performance pay; special assessment |
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State of Arizona House of Representatives Forty-ninth Legislature Second Regular Session 2010
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HB 2061 |
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Introduced by Representative Boone
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AN ACT
amending sections 15-458, 15-459, 15-539 and 15-910, Arizona Revised Statutes; amending title 15, chapter 9, article 1, Arizona Revised Statutes, by adding section 15‑917; repealing title 15, chapter 9, article 1.1, Arizona Revised Statutes; amending sections 15-953 and 15‑977, Arizona Revised Statutes; relating to school finance.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 15-458, Arizona Revised Statutes, is amended to read:
15-458. Formation of new district or districts by subdivision of existing district; division of assets
A. In a school district containing a student count of more than six hundred, a new school district or districts may be formed by a subdivision of the existing school district.
B. On the request of the governing board or on receipt of petitions bearing the signatures of at least ten per cent of the qualified electors in the area proposed to be a new school district or the signatures of at least fifty of the qualified electors in the area proposed to be a new school district, whichever is more, and at least ten per cent of the qualified electors in the area proposed to continue as the existing school district or at least fifty signatures of the qualified electors in the area proposed to continue as the existing school district, whichever is more, the county school superintendent shall within ten days shall call an election to determine if the existing school district should be divided and a new school district or districts formed, except that if the existing school district is a union high school district, the county school superintendent shall call the election only on the request of the governing boards of the union high school district and each of the common school districts comprising the union high school district or on receipt of petitions bearing the signatures of at least ten per cent of the qualified electors in each of the common school districts or at least fifty signatures of the qualified electors in each of the common school districts, whichever is more. This subsection does not require the submission of the signatures of more than fifty per cent of the qualified electors of the existing school district to the county school superintendent in order to call an election for the purposes of this section. The petition shall state the proposed boundaries of the school district or districts to be formed together with the student count, specific reasons why it is in the best interest of the current district residents to have a new district or districts formed and the amount of real property valuation within the school district or districts to be formed. No new school district may be formed unless the state board of education determines that the real property valuation per student count is sufficient to support the school district in a manner comparable to other school districts of similar size and that a sufficient number of pupils will exist in each of the new districts to ensure that educational programs and services will be of similar or better quality after the subdivision.
C. The election shall be held concurrently and as provided in section 15‑459, except that a majority of the votes cast by the qualified electors in each of the areas proposed as a school district must approve the division of the existing school district and the formation of the new school district.
D. The governing board of the existing school district shall prepare a projected list of assets for the existing district prior to the end of the fiscal year in which the election is held. The governing boards of the original and new school district or districts shall prepare a final statement of assets for the formerly existing school district as of the end of the fiscal year in which the election was held and shall have the statement of cash and bonded indebtedness certified by the county treasurer by August 30 of the year in which the new school district or districts become operative. The governing boards of the original school district and the new school district or districts shall set aside sufficient assets or provide other means to satisfy the liabilities of the former existing district except for bonded indebtedness and approve the final division of all assets by September 15 of the year in which the new school district or districts become operative. If one or more of the governing boards fail to provide for satisfying the liabilities and fail to approve the division of assets by September 15, the county attorney shall determine the means to satisfy the liabilities and final division of assets by October 1 of the fiscal year in which the new school district or districts become operative.
E. The division of the bonded indebtedness of the original school district shall be in accordance with the provisions of section 15‑457, subsection B.
F. An original or new school district formed by a subdivision of an existing school district or districts after June 30, 1992 is not eligible to determine its budget using the provisions of section 15‑949 or the support level weights prescribed in section 15‑943, paragraph 1. These districts are also not eligible to participate in a small district service program as prescribed in section 15‑365 or to apply to the state board of education for a capital levy adjustment as prescribed in section 15‑963.
G. If two or more common school districts are within the boundaries of a union high school district, two or more unified school districts may be formed by a subdivision of the existing union high school district and by unification with the common school districts as provided in this section, subject to the following provisions:
1. Formation of a unified school district pursuant to this subsection shall be initiated if a majority of the governing board members of each of the districts affected unites unite in a petition to the county school superintendent for the establishment of a unified school district or if ten per cent of the number of qualified electors who voted in whichever of the last two general elections resulted in the higher number of ballots cast and who reside in each of the areas proposed to be the new unified school districts unite in a petition to the county school superintendent for the establishment of a unified school district. The petition shall include a statement of the proposed boundaries of the new unified school districts and shall request that the subdivision of the union high school district and formation of the unified districts be submitted to the qualified electors who reside within the proposed districts. The petition shall also include a detailed description of desegregation funding and expenses for the resulting school district as set forth in paragraph 7 of this subsection and may include the new school district name and other information as desirable. On receipt of the petitions, the county school superintendent shall examine the petitions within fifteen days of receipt to determine their sufficiency including the adequacy of the signatures of electors. If the petitions are found sufficient, the county school superintendent shall call an election to be held to determine the question. The county school superintendent shall prepare and the governing board shall distribute a subdivision and unification plan that includes:
(a) The proposed boundary changes.
(b) The impact of the proposed boundary changes, including where pupils will attend school, changes in pupil transportation services, changes in availability of special education services, changes in pupil‑teacher ratio and operational costs.
(c) If paragraph 7 of this subsection applies to one or more of the existing school districts, a detailed description of desegregation funding and expenses for the resulting school districts as set forth in paragraph 7 of this subsection.
(d) Any other information the county school superintendent deems appropriate to include.
2. If the governing boards or the petitioners wish the new districts to receive unification assistance as provided in section 15‑912.01, they shall notify the department of education and the joint legislative budget committee by August 1 of the fiscal year before the new districts would begin operation and provide the department and the joint legislative budget committee with information required to project the costs of unification assistance to the new districts for the first year of operation. The department shall include sufficient monies to cover these unification costs in its budget request for state aid for the following fiscal year.
3. The election shall be held as provided in section 15‑459, except that the ballot shall contain the words "subdivision and unification, yes" and "subdivision and unification, no", and there shall be one of the following two ballot questions, whichever is applicable, stated as follows:
(a) Should (insert the name of the district) union high school district be subdivided with boundaries identical to the boundaries of (insert the name of the districts) common school districts and simultaneously creating (insert the number of the districts) unified school districts with the respective common school districts as specified in the subdivision and unification plan?
(b) Should (insert the name of the district) union high school district be subdivided simultaneously with the subdivision of (insert the name of the districts) common school districts and simultaneously creating (insert the number of the districts) unified school districts with the subdivided common school districts as specified in the subdivision and unification plan?
4. If the formation of the new unified school districts is authorized, the terms of the governing board members of the common and union high school districts do not expire on the effective date of unification but continue until January 1 following the next general election, during which time the members of the governing boards of the previously existing school districts shall serve as the governing board of the new school district in which they reside. At the next general election held after the formation and thereafter, members shall be elected as prescribed in section 15‑448, subsection E. The governing boards of the new unified school districts shall prepare policies, curricula and budgets for the new unified school districts. The policies prepared by the governing boards shall include the provisions of section 15‑459, subsection M.
5. If the common school district is not subdivided, the new unified school district that includes the boundaries of the previously existing common school district shall assume the bonded indebtedness of that previously existing common school district. If the common school district is subdivided, the provisions of subsection E of this section shall apply.
6. If the common school district is not subdivided, existing bond authorization of the common school districts automatically continues for the original purpose authorized. If the common school district is subdivided, the existing bond authorization of the common school district will expire unless it is divided between the new unified school districts as specified in the subdivision and unification plan.
7. If any of the school districts were authorized to budget for expenses of complying with or continuing to implement activities that were required or permitted by court order of desegregation or administrative agreement with the United States department of education office for civil rights directed towards remediating alleged or proven racial discrimination pursuant to section 15‑910, this authorization does not expire on the effective date of the subdivision and unification but only applies to schools included in the court order or administrative agreement.
8. If the union high school district and the common school district or districts with which it is unified all have authorization for an override as provided in section 15‑481 that would have continued after the subdivision and unification, the override authorization continues for the new district and expires at the time that the earliest override would have expired.
9. If one or more of the previously existing school districts were participating in a career ladder program pursuant to chapter 9, article 1.1 of this title before subdivision and unification, notwithstanding any other law the state board shall expedite the processing of and may approve an updated application for program reapproval for the new school district that includes the existing school district that was participating in the program.
10. 9. The employee's years of employment in the previously existing school district shall be included in determining the employee's years of employment in the new school district after a subdivision and unification. An employee who was entitled to continuing contract status in the previously existing school district is entitled to continuing employment contract status in the new school district.
11. 10. The base salary and benefits of each employee for the first year of operation of the new school district after a subdivision and unification shall not be lower than the employee's base salary and benefits for the prior year in the previously existing school district.
12. 11. Notwithstanding paragraphs 9 and 10 and 11 of this subsection and pursuant to section 15‑544, nothing in this section shall be construed to restrict the ability of the governing board to implement a reduction in force or to scale back salaries of certified teachers, administrators or noncertificated employees for reasons of economy or to improve the efficient conduct of schools within the district following a subdivision and unification.
Sec. 2. Section 15-459, Arizona Revised Statutes, is amended to read:
15-459. Consolidation of districts; petition; election; notice; report; ballots; canvass of votes; governing board
A. On the request of the governing boards of two or more school districts in the same county or in adjacent counties or on receipt of petitions bearing the signatures of ten per cent or more of the number of qualified electors who voted in whichever of the last two general elections resulted in the higher number of ballots cast and who reside in each of two or more school districts in the same county or in adjacent counties to consolidate the school districts or parts of the districts, the county school superintendent of each of the counties affected, within ten days, shall call an election to determine the question on consolidation.
B. Consolidations allowed pursuant to subsection A of this section include:
1. To change the boundaries of a school district to include any part of an adjacent school district.
2. If all the common school districts within the boundaries of an existing union high school district desire to consolidate into one common school district.
3. If two or more adjacent school districts of like character, either common, high or unified school districts, desire to consolidate into one common, high or unified school district.
4. If a common school district that is not a part of a union high school district desires to consolidate with an adjacent unified school district.
5. If two or more common school districts desire to consolidate into one school district and unify the consolidated district with a union high school district to form one unified school district.
C. Notice of the election to determine consolidation of school districts shall be posted in not less than three public places in each of the school districts proposed to be consolidated at least twenty‑five days before the election.
D. The county school superintendent shall prepare and the governing board shall distribute a report on the proposed boundary changes in a manner similar to that prescribed in section 15‑481, subsection B. The report shall contain the following information:
1. The date of the election.
2. The polling places and times they are open.
3. The full cash value, the assessed valuation and the estimated amount of the primary property taxes and the estimated amount of the secondary property taxes under the proposed boundary changes for each of the following:
(a) An owner occupied residence whose assessed valuation is the average assessed valuation of property classified as class three, as prescribed by section 42-12003 for the current year in the school district.
(b) An owner occupied residence whose assessed valuation is one-half of the assessed valuation of the residence in subdivision (a) of this paragraph.
(c) An owner occupied residence whose assessed valuation is twice the assessed valuation of the residence in subdivision (a) of this paragraph.
(d) A business whose assessed valuation is the average of the assessed valuation of property classified as class one, as prescribed by section 42‑12001, paragraphs 12 and 13 for the current year in the school district.
4. A consolidation plan to include:
(a) The proposed boundary changes.
(b) The impact of the proposed boundary changes, including where pupils will attend school, changes in pupil transportation services, changes in availability of special education services, changes in pupil‑teacher ratio and operational costs.
(c) If subsection P of this section applies to one or more of the existing school districts, a detailed description of desegregation funding and expenses for the resulting school district as set forth in subsection P of this section.
(d) Any other information the county school superintendent deems appropriate to include.
E. Ballots shall be prepared by the county school superintendent, shall be delivered to the inspector at least forty‑eight hours before the opening of the polls as prescribed in section 16‑509 and shall contain the information prescribed in subsection D, paragraph 3 of this section and the following statement: "Consolidation includes the assumption of liability by the resulting school district for all indebtedness of existing school districts or those parts of school districts proposed for consolidation. Do you support consolidation under the specified provisions of the consolidation plan? Yes ( ) No ( )." If the election is to simultaneously consolidate and unify two or more common school districts, the ballot shall contain: "Do you support the consolidation of the (insert names of common school districts) and the subsequent unification of the consolidated districts with the (insert name of union high school district) to form one unified school district under the consolidation and unification plan? Yes ( ) No ( )."
F. The county school superintendent shall hold the election during the fiscal year preceding the fiscal year consolidation is proposed to be effective on a date prescribed by section 16‑204. The election shall be held in the manner and electors shall possess qualifications as prescribed for the election of governing board members. The results of the election shall be reported to the county school superintendent.
G. The county school superintendent and the chairman of the board of supervisors, on the seventh day after the election, shall canvass the vote. If a majority of the votes cast in each district favors favor consolidation, the districts are consolidated and become one district from and after June 30 next following the election. If parts of two or more school districts are proposed to be consolidated, a majority of the voters in the part of a school district or districts not affected by the proposed consolidation and a majority of the voters in the part of the school district or districts proposed for consolidation must approve the consolidation.
H. If a school district provides only financing for pupils who are instructed by another school district in the same county or in an adjacent county, the school district or any part of the school district may be consolidated with the school district providing the instructional program as follows:
1. The governing board of the financing school district approves the consolidation or ten per cent of the qualified electors residing in the school district, or that part of the school district proposed for consolidation, petitions the county school superintendent to call an election to approve the proposed consolidation.
2. The governing board of the school district providing instruction approves the consolidation.
3. At an election called by the county school superintendent of each of the counties affected, a majority of the persons voting in the school district, or that part of the school district providing financing, approves the proposed consolidation and a majority of the persons voting in the district providing instruction approves approve the proposed consolidation.
I. Elections held as provided in subsection H of this section shall be conducted in the same manner as elections prescribed in subsections C through G of this section and shall be held concurrently as prescribed in section 15‑458.
J. If the consolidated district includes territory located in two or more counties, the county of jurisdiction is the county in which the largest number of qualified electors of the consolidated school district resides, except that if all of the existing school buildings are in one county, that county is the county of jurisdiction. The county school superintendent of the jurisdictional county shall perform all duties for and with respect to the consolidated school district as required to be performed by county school superintendents. The board of supervisors of the jurisdictional county shall perform all duties for and with respect to the consolidated school district as required to be performed by boards of supervisors, except that school district taxes to be levied on property in the portion of the consolidated school district lying in another county shall be levied by the board of supervisors of the other county or counties and on receipt shall be transferred to the county of jurisdiction. All school buildings located within the consolidated school district, together with all equipment and furnishings, become the property of the consolidated school district. Any assumed indebtedness is an indebtedness of the consolidated school district for the purpose of determining the debt incurring authority of the consolidated school district.
K. Sections 15‑457, 15‑975 and 15‑997 apply to school districts which that are consolidated as provided in subsection H of this section.
L. Consolidation pursuant to this section is not allowed if the resulting school district would have a student count for the current year of more than ten per cent of the total student count of all school districts in this state.
M. The governing board shall prepare policies, curricula and budgets for the new school district. These policies shall require that:
1. The base salary and benefits of each employee for the first year of operation of the new school district shall not be lower than the employee's base salary and benefits for the prior year in the previously existing school district.
2. The employee's years of employment in the previously existing school district shall be included in determining the employee's years of employment in the new school district. An employee who was entitled to continuing employment contract status in the previously existing school district is entitled to continuing employment contract status in the new school district.
3. Notwithstanding paragraphs 1 and 2 of this subsection and pursuant to section 15‑544, nothing in this section shall be construed to restrict the ability of the governing board to implement a reduction in force or to scale back salaries of certified teachers, administrators or noncertificated employees for reasons of economy or to improve the efficient conduct of schools within the district following a school district consolidation.
N. If all of the districts to be consolidated have authorization for an override as provided in section 15‑481 that would have continued after the consolidation, the override authorization continues for the new district and expires at the time that the earliest override would have expired.
O. If one or more, but not all, of the districts to be consolidated have authorization for an override as provided in section 15‑481 that would have continued after the consolidation, the override authorization shall only apply to the schools included under the terms of the prior override authorization. Consolidation of school districts does not consolidate or pool the liability to be taxed for the override, and only property that was located within the boundaries of the district that approved the override prior to consolidation is to pay taxes to support the override. This subsection also applies if all of the districts to be consolidated have authorization for overrides, but the authorizations are pursuant to different subsections of section 15‑481 or the override amounts are not the same percentage of the revenue control limit.
P. Notwithstanding section 15‑457, consolidation of school districts does not consolidate or pool the liability of the former school districts into the resulting school district. Outstanding indebtedness incurred by a school district before consolidation shall be repaid without interruption according to existing debt schedules as determined by the county board of supervisors. If a school district consolidates after July 1, 2004, the new school district may pay tuition to the district of attendance when a pupil is precluded by distance or lack of transportation from attending school in the district of a pupil's residence.
Q. If one or more of the previously existing school districts was were authorized to budget for expenses of complying with or continuing to implement activities that were required or permitted by 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 pursuant to section 15‑910, this authorization does not expire on the effective date of consolidation but only applies to schools included in the court order or administrative agreement.
R. If one or more of the previously existing school districts was participating in a career ladder program pursuant to chapter 9, article 1.1 of this title before consolidation, notwithstanding any other law the state board shall expedite the processing of and may approve an updated application for program reapproval that incorporates the geographic boundaries of the resulting school district and the inclusion of the additional staff in the career ladder program.
S. R. If the formation of a new consolidated and unified school district is authorized, the terms of the governing board members of the common and union high school districts do not expire on the effective date of the unification. The governing board members of the previously existing school districts shall serve as provided in section 15‑430, except that the power of the governing board members of the previously existing school districts acting as the governing board of the unified school district is limited to the maintenance and operation of the previously existing school districts and compliance with the consolidation and unification plan.
Sec. 3. Section 15-539, Arizona Revised Statutes, is amended to read:
15-539. Dismissal of certificated teacher; due process; written charges; notice; hearing on request
A. On a written statement of charges presented by the superintendent, charging that there exists cause for the suspension without pay for a period of time greater than ten school days or dismissal of a certificated teacher of the district, the governing board, except as otherwise provided in this article, shall give notice to the teacher of its intention to suspend without pay or dismiss the teacher at the expiration of ten days from the date of the service of the notice.
B. Whenever the superintendent presents a statement of charges wherein the alleged cause for dismissal constitutes immoral or unprofessional conduct, the governing board may adopt a resolution that a complaint be filed with the department of education. Pending disciplinary action by the state board of education, the certificated teacher may be reassigned by the superintendent or placed on administrative leave by the board pursuant to section 15‑540.
C. The governing board shall give a certificated teacher who has been employed by the school district for more than the major portion of three consecutive school years notice of intention to dismiss if its intention to dismiss is based on charges of inadequacy of classroom performance as defined by the governing board pursuant to subsection D of this section. The governing board or its authorized representative shall give the teacher a written preliminary notice of inadequacy of classroom performance at least ten instructional days before the start of the period of time within which to correct the inadequacy and overcome the grounds for the charge. The governing board may delegate to employees of the governing board the general authority to issue preliminary notices of inadequacy of classroom performance to teachers pursuant to this section without the need for prior approval of each notice by the governing board. In all cases in which an employee of the governing board issues a preliminary notice of inadequacy of classroom performance without prior approval by the governing board, the employee shall report its issuance to the governing board within five school days. The written preliminary notice of inadequacy of classroom performance shall specify the nature of the inadequacy of classroom performance with such particularity as to furnish the teacher an opportunity to correct the teacher's inadequacies and overcome the grounds for the charge. The written preliminary notice of inadequacy of classroom performance shall be based on a valid evaluation according to school district procedure, shall include a copy of any evaluation pertinent to the charges made and shall state the date by which the teacher has to correct the inadequacy and overcome the grounds for the charge. That evaluation shall not be conducted within two instructional days of any school break of one week or more. The written preliminary notice of inadequacy of classroom performance shall allow the teacher not less than sixty instructional days within which to correct the inadequacy and overcome the grounds for the charge. If within the time specified in the written preliminary notice of inadequacy of classroom performance the teacher does not demonstrate adequate classroom performance, the governing board shall dismiss the teacher either within ten days of the service of a subsequent notice of intention to dismiss or by the end of the contract year in which the subsequent notice of intention to dismiss is served unless the teacher has requested a hearing as provided in subsection G of this section. If the teacher demonstrates adequate classroom performance during the period allowed to correct such deficiencies as specified in the written preliminary notice of inadequacy of classroom performance, the governing board may not dismiss the teacher for the reasons specified in the written preliminary notice of inadequacy of classroom performance. If the governing board of a school district has received approval to budget for a career ladder program, the governing board may define inadequacy of classroom performance by establishing a single level of performance that is required of all teachers or by establishing more than one required level of performance. If more than one level is established, the same level of performance for minimum adequacy shall be required of all teachers who have completed the same number of years of teaching in the district.
D. The governing board shall develop a definition of inadequacy of classroom performance that applies to notices issued pursuant to section 15‑536, section 15‑538 and this section. The governing board shall develop its definition of inadequacy of classroom performance in consultation with its certificated teachers. The consultation may be accomplished by holding a public hearing, forming an advisory committee, providing teachers the opportunity to respond to a proposed definition or obtaining teacher approval of a career ladder program that defines of inadequacy of classroom performance.
E. Any written statement of charges alleging unprofessional conduct, conduct in violation of the rules or policies of the governing board or inadequacy of classroom performance shall specify instances of behavior and the acts or omissions constituting the charge so that the certificated teacher will be able to prepare a defense. If applicable, it shall state the statutes, rules or written objectives of the governing board that the certificated teacher is alleged to have violated and set forth the facts relevant to each occasion of alleged unprofessional conduct, conduct in violation of the rules or policies of the governing board or inadequacy of classroom performance.
F. The notice shall be in writing and shall be served on the certificated teacher personally or by United States registered or certified mail addressed to the teacher's last known address. A copy of the charges, together with a copy of this section and sections 15‑501, 15‑538.01, 15‑540, 15‑541, 15‑542 and 15‑544 through 15‑547, shall be attached to the notice.
G. The certificated teacher who receives notice that there exists cause for dismissal or suspension without pay shall have the right to a hearing if the teacher files a written request with the governing board within ten days of service of notice. The filing of a timely request shall suspend the imposition of a suspension without pay or a dismissal pending completion of the hearing.
Sec. 4. Section 15-910, Arizona Revised Statutes, is amended to read:
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. If a district is levying a primary property tax on February 23, 2006 and using those monies to administer an English language learner program to remedy alleged or proven discrimination under title VI of the civil rights act of 1964 (42 United States Code section 2000d), the district may spend those monies to remedy a violation of the equal education act of 1974 (20 United States Code section 1703(f)). Nothing in this subsection allows a school district to levy a primary property tax for violations of the equal education act of 1974 (20 United States Code section 1703(f)) in the absence of an alleged or proven discrimination under title VI of the civil rights act of 1964 (42 United States Code section 2000d).
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 Arizona 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 Arizona 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 Arizona 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 Arizona 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 is 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 is not derived through a primary or secondary property tax levy and that is 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.
7. Beginning in fiscal year 2009‑2010 and continuing each fiscal year thereafter, not exceed the amount budgeted by the school district for desegregation expenses in fiscal year 2008‑2009.
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. END_STATUTE
Sec. 5. Title 15, chapter 9, article 1, Arizona Revised Statutes, is amended by adding section 15-917, to read:
15-917. Special school district assessment for statewide teacher pay
A. Beginning with the 2010‑2011 fiscal year, school districts, by a majority vote of the governing board, may budget for a special assessment for statewide teacher pay. The assessment shall be limited to an amount of not more than five and one‑half per cent of the revenue control limit pursuant to section 15-947. The amount of the assessment shall be exempt from the revenue control limit and shall be funded by an assessment on the primary property tax rate of the school district. All school districts may budget for a special assessment for statewide teacher pay pursuant to this section. School districts that are funded solely with state equalization assistance shall use available federal impact aid instead of property taxes to implement this section.
B. The monies generated by the special assessment shall be recorded in a separate single program code in the maintenance and operation fund as determined by the auditor general's office and shall be used for teacher compensation increases based on performance, teacher professional development programs and employment related expenses.
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 for the special assessment budgeted pursuant to this section.
D. The portion of the primary tax rate to fund the special assessment provided in this section shall not be included in the computation of additional state aid for education prescribed in section 15-972. END_STATUTE
Sec. 6. Repeal
Title 15, chapter 9, article 1.1, Arizona Revised Statutes, is repealed.
Sec. 7. Section 15-953, Arizona Revised Statutes, is amended to read:
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.
Sec. 8. Section 15-977, Arizona Revised Statutes, is amended to read:
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 of each year. 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 adjusted for any prior year carryforward or shortfall.
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.
3. For each fiscal year in which the legislature appropriates sufficient monies for teacher performance pay pursuant to this section, the amount appropriated shall equal the product of the base level prescribed in section 15‑901 multiplied by the prior year statewide weighted student count multiplied by the following percentages:
(a) For stage one, one per cent.
(b) For stage two, two per cent.
(c) For stage three, three per cent.
(d) For stage four, four per cent.
(e) For stage five, five per cent.
(f) For stage six, five and one‑half per cent by June 30, 2018.
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. If a school district is approved for a career ladder program pursuant to section 15‑918.04 or an optional performance incentive program pursuant to section 15‑919, the school district may continue to participate in those programs or may choose to receive additional teacher performance pay monies pursuant to subsection G, paragraph 3 of this section. If a school district chooses to receive monies pursuant to subsection G, paragraph 3 of this section, the school district shall reduce the amount of funding for its career ladder program or optional performance incentive program, as applicable, in an amount that is equal to the amount appropriated by the legislature for the applicable stage specified in subsection G, paragraph 3 of this section. If a school district is approved for a career ladder program pursuant to section 15‑918.04 or an optional performance incentive program pursuant to section 15‑919 and that school district chooses to receive monies for stage one pursuant to subsection G, paragraph 3 of this section, the school district shall continue to receive funding through the remaining stages specified in subsection G, paragraph 3 of this section, subject to legislative appropriation. A school district that is subject to this subsection shall notify the department of education of the school district's intention to receive monies pursuant to subsection G, paragraph 3 of this section no later than July 1 of the fiscal year that stage one monies are appropriated.
P. 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.
Sec. 9. Retroactivity
This act is effective and applies retroactively to from and after June 30, 2010.
