Bill Text: AZ HB2126 | 2017 | Fifty-third Legislature 1st Regular | Introduced
Bill Title: Schools; prior-year funding.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2017-01-18 - House read second time [HB2126 Detail]
Download: Arizona-2017-HB2126-Introduced.html
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REFERENCE TITLE: schools; prior-year funding. |
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State of Arizona House of Representatives Fifty-third Legislature First Regular Session 2017
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HB 2126 |
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Introduced by Representatives Coleman: Carter, John
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AN ACT
amending sections 15‑393, 15‑447.01, 15‑824, 15‑902.03, 15‑910 and 15‑943, Arizona Revised Statutes; amending Title 15, chapter 9, article 3, Arizona Revised Statutes, by adding section 15-948; amending sections 15‑951, 15‑973, 15‑991, 15‑1371 and 15‑1372, Arizona Revised Statutes; appropriating monies; 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 15-393, Arizona Revised Statutes, is amended to read:
15-393. Joint technical education district governing board; report; definitions
A. The management and control of the joint district are vested in the joint technical education district governing board, including the content and quality of the courses offered by the district, the quality of teachers who provide instruction on behalf of the district, the salaries of teachers who provide instruction on behalf of the district and the reimbursement of other entities for the facilities used by the district. Unless the governing boards of the school districts participating in the formation of the joint district vote to implement an alternative election system as provided in subsection B of this section, the joint board shall consist of five members elected from five single member districts formed within the joint district. The single member district election system shall be submitted as part of the plan for the joint district pursuant to section 15‑392 and shall be established in the plan as follows:
1. The governing boards of the school districts participating in the formation of the joint district shall define the boundaries of the single member districts so that the single member districts are as nearly equal in population as is practicable, except that if the joint district lies in part in each of two or more counties, at least one single member district may be entirely within each of the counties comprising the joint district if this district design is consistent with the obligation to equalize the population among single member districts.
2. The boundaries of each single member district shall follow election precinct boundary lines, as far as practicable, in order to avoid further segmentation of the precincts.
3. A person who is a registered voter of this state and who is a resident of the single member district is eligible for election to the office of joint board member from the single member district. The terms of office of the members of the joint board shall be as prescribed in section 15‑427, subsection B. An employee of a joint technical education district or the spouse of an employee shall not hold membership on a governing board of a joint technical education district by which the employee is employed. A member of one school district governing board or joint technical education district governing board is ineligible to be a candidate for nomination or election to or serve simultaneously as a member of any other governing board, except that a member of a governing board may be a candidate for nomination or election for any other governing board if the member is serving in the last year of a term of office. A member of a governing board shall resign the member's seat on the governing board before becoming a candidate for nomination or election to the governing board of any other school district or joint technical education district, unless the member of the governing board is serving in the last year of a term of office.
4. Nominating petitions shall be signed by the number of qualified electors of the single member district as provided in section 16‑322.
B. The governing boards of the school districts participating in the formation of the joint district may vote to implement any other alternative election system for the election of joint district board members. If an alternative election system is selected, it shall be submitted as part of the plan for the joint district pursuant to section 15‑392, and the implementation of the system shall be as approved by the United States justice department.
C. The joint technical education district shall be subject to the following provisions of this title:
1. Chapter 1, articles 1 through 6.
2. Sections 15‑208, 15‑210, 15‑213 and 15‑234.
3. Articles 2, 3 and 5 of this chapter.
4. Section 15‑361.
5. Chapter 4, articles 1, 2 and 5.
6. Chapter 5, articles 1, 2 and 3.
7. Sections 15‑701.01, 15‑722, 15‑723, 15‑724, 15‑727, 15‑728, 15‑729 and 15‑730.
8. Chapter 7, article 5.
9. Chapter 8, articles 1, 3 and 4.
10. Sections 15‑828 and 15‑829.
11. Chapter 9, article 1, article 6, except for section 15‑995, and article 7.
12. Sections 15‑941, 15‑943.01, 15‑952, 15‑953 and 15‑973.
13. Sections 15‑1101 and 15‑1104.
14. Chapter 10, articles 2, 3, 4 and 8.
D. Notwithstanding subsection C of this section, the following apply to a joint technical education district:
1. A joint district may issue bonds for the purposes specified in section 15‑1021 and in chapter 4, article 5 of this title to an amount in the aggregate, including the existing indebtedness, not exceeding one percent of the net assessed value of the full cash value of the property within the joint technical education district. For the purposes of this paragraph, "full cash value" and "net assessed value" have the same meanings prescribed in section 42‑11001.
2. The number of governing board members for a joint district shall be as prescribed in subsection A of this section.
3. The student count for the first year of operation of a joint technical education district as provided in this article shall be determined as follows:
(a) Determine the estimated student count for joint district classes that will operate in the first year of operation. This estimate shall be based on actual registration of pupils as of March 30 scheduled to attend classes that will be operated by the joint district. The student count for the district of residence of the pupils registered at the joint district shall be adjusted. The adjustment shall cause the district of residence to reduce the student count for the pupil to reflect the courses to be taken at the joint district. The district of residence shall review and approve the adjustment of its own student count as provided in this subdivision before the pupils from the school district can be added to the student count of the joint district.
(b) The student count for the new joint district shall be the student count as determined in subdivision (a) of this paragraph.
(c) For the first year of operation, the joint district shall revise the student count to the actual average daily membership as prescribed in section 15‑901, subsection A, paragraph 1 for students attending classes in the joint district. A joint district shall revise its student count, the base support level as provided in section 15‑943.02, the revenue control limit as provided in section 15‑944.01 and the district additional assistance as provided in section 15‑962.01 prior to May 15. A joint district that overestimated its student count shall revise its budget prior to May 15. A joint district that underestimated its student count may revise its budget prior to May 15.
(d) After March 15 of the first year of operation, the district of residence shall adjust its student count by reducing it to reflect the courses actually taken at the joint district. The district of residence shall revise its student count, the base support level as provided in section 15‑943, the revenue control limit as provided in section 15‑944 and the district additional assistance as provided in section 15‑962.01 prior to May 15. A district that underestimated the student count for students attending the joint district shall revise its budget prior to May 15. A district that overestimated the student count for students attending the joint district may revise its budget prior to May 15.
(e) The procedures for implementing this paragraph shall be as prescribed in the uniform system of financial records.
(f) Pupils in an approved joint technical education district centralized program may generate an average daily membership of 1.0 during any day of the week and at any time between July 1 and June 30 of each fiscal year.
(g) A joint district is not eligible for adjustment pursuant to section 15‑948 for the first year of its operation.
For the purposes of this paragraph, "district of residence" means the district that included the pupil in its average daily membership for the year before the first year of operation of the joint district and that would have included the pupil in its student count for the purposes of computing its base support level for the fiscal year of the first year of operation of the joint district if the pupil had not enrolled in the joint district.
4. A student includes any person enrolled in the joint district without regard to the person's age or high school graduation status, except that:
(a) A student in a kindergarten program or in grades one through nine who enrolls in courses offered by the joint technical education district shall not be included in the joint district's student count or average daily membership.
(b) A student in a kindergarten program or in grades one through nine who is enrolled in career and technical education courses shall not be funded in whole or in part with monies provided by a joint technical education district, except that a pupil in grade eight or nine may be funded with monies generated by the five cent qualifying tax rate authorized in subsection F of this section.
(c) Beginning July 1, 2016, a student who has graduated from high school or received a general equivalency diploma or who is over twenty‑one years of age shall not be included in the student count of the joint district for the purposes of chapter 9, articles 3, 4 and 5 of this title.
(d) A student who is enrolled in any internship course as part of a joint technical education district program shall not be included in the student count of the joint district for that internship course for the purposes of chapter 9, articles 3, 4 and 5 of this title.
5. A joint district may operate for more than one hundred eighty days per year, with expanded hours of service.
6. A joint district may use the carryforward provisions of section 15‑943.01.
7. A school district that is part of a joint district shall use any monies received pursuant to this article to supplement and not supplant base year career and technical education courses, and directly related equipment and facilities, except that a school district that is part of a joint technical education district and that has used monies received pursuant to this article to supplant career and technical education courses that were offered before the first year that the school district participated in the joint district or the first year that the school district used monies received pursuant to this article or that used the monies for purposes other than for career and technical education courses shall use one hundred percent of the monies received pursuant to this article to supplement and not supplant base year career and technical education courses.
8. A joint technical education district shall use any monies received pursuant to this article to enhance and not supplant career and technical education courses and directly related equipment and facilities.
9. A joint technical education district or a school district that is part of a joint district or a charter school shall only include pupils in grades ten through twelve in the calculation of student count or average daily membership if the pupils are enrolled in courses that are approved jointly by the governing board of the joint technical education district and each participating school district or charter school for satellite courses taught within the participating school district or charter school, or approved solely by the joint technical education district for centrally located courses. Student count and average daily membership from courses that are not part of an approved program for career and technical education shall not be included in student count and average daily membership of a joint technical education district.
E. The joint board shall appoint a superintendent as the executive officer of the joint district.
F. Taxes may be levied for the support of the joint district as prescribed in chapter 9, article 6 of this title, except that a joint technical education district shall not levy a property tax pursuant to law that exceeds five cents per one hundred dollars assessed valuation except for bond monies pursuant to subsection D, paragraph 1 of this section. Except for the taxes levied pursuant to section 15‑994, such taxes shall be obtained from a levy of taxes on the taxable property used for secondary tax purposes.
G. The schools in the joint district are available to all persons who reside in the joint district and to pupils whose district of residence within this state is paying tuition on behalf of the pupils to a district of attendance that is a member of the joint technical education district, subject to the rules for admission prescribed by the joint board.
H. The joint board may collect tuition for adult students and the attendance of pupils who are residents of school districts that are not participating in the joint district pursuant to arrangements made between the governing board of the district and the joint board.
I. The joint board may accept gifts, grants, federal monies, tuition and other allocations of monies to erect, repair and equip buildings and for the cost of operation of the schools of the joint district.
J. One member of the joint board shall be selected chairman. The chairman shall be selected annually on a rotation basis from among the participating school districts. The chairman of the joint board shall be a voting member.
K. A joint board and a community college district may enter into agreements for the provision of administrative, operational and educational services and facilities.
L. Beginning July 1, 2016, any agreement between the governing board of a joint technical education district and another joint technical education district, a school district, a charter school or a community college district shall be in the form of an intergovernmental agreement or other written contract. The auditor general shall modify the uniform system of financial records and budget forms in accordance with this subsection. The intergovernmental agreement or other written contract shall completely and accurately specify each of the following:
1. The financial provisions of the intergovernmental agreement or other written contract and the format for the billing of all services.
2. The accountability provisions of the intergovernmental agreement or other written contract.
3. The responsibilities of each joint technical education district, each school district, each charter school and each community college district that is a party to the intergovernmental agreement or other written contract.
4. The type of instruction that will be provided under the intergovernmental agreement or other written contract, including individualized education programs pursuant to section 15‑763.
5. The quality of the instruction that will be provided under the intergovernmental agreement or other written contract.
6. The transportation services that will be provided under the intergovernmental agreement or other written contract and the manner in which transportation costs will be paid.
7. The amount that the joint technical education district will contribute to a course and the amount of support required by the school district or the community college.
8. That the services provided by the joint technical education district, the school district, the charter school or the community college district be proportionally calculated in the cost of delivering the service.
9. That the payment for services shall not exceed the cost of the services provided.
10. That the joint technical education district will provide the following minimum services for all member districts:
(a) Professional development of career and technical teachers in the joint district who are teaching programs or courses at a satellite campus.
(b) Ongoing evaluation and support of satellite campus programs and courses to ensure quality and compliance.
11. An itemized listing of other goods and services that are provided to the member district and that are paid for by the retention of satellite campus student funding.
M. A member school district or charter school may not submit requests for the approval or addition of satellite campus joint district programs or courses directly to the career and technical education division of the department of education, but shall submit all appropriate application documentation and materials for programs or courses to the joint district. On approval from the joint board, a joint district shall only submit requests for the approval or addition of satellite campus joint district programs or courses directly to the career and technical education division of the department of education. If the career and technical education division of the department of education determines that a course does not meet the criteria for approval as a joint technical education course, the governing board of the joint technical education district may appeal this decision to the state board of education acting as the state board of vocational education.
N. Notwithstanding any other law, the average daily membership for a pupil who is enrolled in a joint technical education course defined in section 15‑391 and who does not meet the criteria specified in subsection P or Q of this section shall be 0.25 for each course, except the sum of the average daily membership shall not exceed the limits prescribed by subsection D, P or Q of this section, as applicable.
O. If a career and technical education course or program is provided on a satellite campus, the sum of the average daily membership, as provided in section 15‑901, subsection A, paragraph 1, for that pupil in the school district or charter school and joint technical education district shall not exceed 1.25. The school district or charter school and the joint district shall determine the apportionment of the average daily membership for that pupil between the school district or charter school and the joint district. A pupil who attends a course or program at a satellite campus and who is not enrolled in the school district or charter school where the satellite campus is located may generate the average daily membership pursuant to this subsection if the pupil is enrolled in a school district that is a member district in the same joint technical education district.
P. The sum of the average daily membership of a pupil who is enrolled in both the school district and joint technical education district course or program provided at a community college pursuant to subsection K of this section or at a centralized campus shall not exceed 1.75. The member school district and the joint district shall determine the apportionment of the average daily membership and student enrollment for that pupil between the member school district and the joint district, except that the amount apportioned shall not exceed 1.0 for either entity. Notwithstanding any other law, the average daily membership for a pupil in grade ten, eleven or twelve who is enrolled in a course that meets for at least one hundred fifty minutes per class period at a centralized campus shall be 0.75. To qualify for funding pursuant to this subsection, a centralized campus shall offer programs and courses to all eligible students in each member district of the joint technical education district.
Q. The average daily membership for a pupil in grade ten, eleven or twelve who is enrolled in a course that meets for at least one hundred fifty minutes per class period at a leased centralized campus shall not exceed 0.75. The sum of the average daily membership, as provided in section 15‑901, subsection A, paragraph 1, of a pupil who is enrolled in both the school district and in joint technical education district courses provided at a leased centralized campus shall not exceed 1.75 if all of the following conditions are met:
1. The course qualifies as a joint technical education course as defined in section 15‑391.
2. The course is offered to all eligible students in each member district of the joint technical education district and enrolls students from multiple high schools.
3. The joint technical education district program in which the course is included addresses a specific industry need and has been developed in cooperation with that industry, or the leased facility is a state or federal asset that would otherwise be unused or underutilized.
4. The lease is established at fair market value if the lease is executed for a facility located on the site of a member district and was approved by the joint committee on capital review, except that a lease that was executed or renewed before December 31, 2012 is not subject to approval by the joint committee on capital review.
R. A student who is enrolled in an accommodation school as defined in section 15‑101 may be treated as a student of the school district in which the student physically resides for the purposes of enrollment in a joint technical education district and shall be included in the calculation of average daily membership for either the joint technical education district or the accommodation school, or both.
S. Notwithstanding any other law, the student count for a joint technical education district shall be equivalent to the joint technical education district's average daily membership.
T. A school district or charter school may not prohibit or discourage students who are enrolled in that school district or charter school from attending courses offered by a joint technical education district, including requiring students to generate a full 1.0 average daily membership or to enroll in more courses than are needed to graduate before enrolling in and attending programs or courses offered by a joint district.
U. The governing board of the joint technical education district may contract with any charter school that is located within the boundaries of the joint technical education district to allow that charter school to offer career and technical education courses or programs as a satellite campus.
V. Beginning in 2020 and every five years thereafter, the career and technical education division of the department of education shall review joint technical education district programs and joint technical education courses to ensure compliance, quality and eligibility. Any program or course deemed to not meet the requirements set forth by law shall not be funded for the preceding school year and shall be removed from the approved program and course list. The career and technical education division may establish a staggered schedule for reviewing each joint technical education district.
W. For the purposes of this section:
1. "Base year" means the complete school year in which voters of a school district elected to join a joint technical education district.
2. "Centralized campus" means a facility that is owned and operated by a joint technical education district for the purpose of offering joint technical education district programs or joint technical education courses.
3. "Lease" means a written agreement in which the right of occupancy or use of real property is conveyed from one person or entity to another person or entity for a specified period of time.
4. "Leased centralized campus" means a facility that is leased and operated by a joint technical education district for the purpose of offering joint technical education district programs or joint technical education courses.
5. "Satellite campus" means a facility that is owned or operated by a school district or charter school for the purpose of offering joint technical education district programs or joint technical education courses.
Sec. 2. Section 15-447.01, Arizona Revised Statutes, is amended to read:
15-447.01. Common school districts; offer of instruction in grade nine
A. Before a common school district offers instruction in grade nine pursuant to section 15‑901, subsection A, paragraph 3, subdivision (b), the common school district governing board shall:
1. Conduct a preliminary vote at a public meeting to consider the question of offering instruction in grade nine.
2. Send a letter expressing the common school district's interest in offering instruction in grade nine to the union high school district or the unified school district where a majority of the common school pupils would otherwise enroll in grade nine.
3. Hold a public hearing on the issue at least ninety days after the letter of interest is sent as prescribed in paragraph 2 of this subsection.
4. Conduct a final vote on the issue of offering instruction in grade nine. The final vote prescribed in this paragraph shall occur no later than January 15 of the school year that precedes the school year in which instruction in grade nine will first be offered and at least thirty days after the public hearing prescribed in paragraph 3 of this subsection.
B. Notwithstanding any other law, a common school district that offers instruction in grade nine pursuant to section 15‑901, subsection A, paragraph 3, subdivision (b) may:
1. Conduct an election to exceed the revenue control limit as provided in sections 15‑481 and 15‑482 and use the weighted student count of pupils in grade nine as part of the calculation for the increase in the revenue control limit.
2. Use the count of pupils in grade nine to determine equalization assistance pursuant to section 15‑971.
C. A common school district may not offer instruction in grade nine in a school facility where instruction is provided to pupils in kindergarten programs and grades one through six, or any combination of kindergarten instruction or grades one through six.
D. Notwithstanding any other law, a common school district that offers instruction in grade nine pursuant to section 15‑901, subsection A, paragraph 3, subdivision (b) may not increase the revenue control limit and district support level for the school district for the current year due to growth in the grade nine student population pursuant to section 15‑948.
Sec. 3. Section 15-824, Arizona Revised Statutes, is amended to read:
15-824. Admission of pupils of other school districts; homeless children; tuition charges; definitions
A. The governing board of a school district shall admit pupils from another school district or area as follows:
1. On the presentation of a certificate of educational convenience issued by the county school superintendent pursuant to section 15‑825.
2. For three hundred fifty or fewer pupils, to a high school without the presentation of such a certificate, if the pupil is a resident of a common school district within this state that is not within a high school district and that does not offer instruction in the pupil's grade. The three hundred fifty or fewer pupil limitation prescribed in this paragraph does not apply to a small isolated school district as defined in section 15‑901. Tuition shall be charged as prescribed in subsection E of this section for each pupil admitted pursuant to this paragraph, each pupil from a school district that provides only financing for pupils who are instructed by another school district and each pupil from a unified district that does not offer instruction in the pupil's grade. The school membership of such pupils is deemed, for the purpose of determining student count and for apportionment of state aid, to be enrollment in the school district of the pupil's residence.
B. The residence of the person having legal custody of the pupil is considered the residence of the pupil, except as provided in subsection C of this section and in section 15‑825, subsection B.
C. The current residence of a homeless pupil who does not reside with the person having legal custody of the pupil is considered to be the residence of the homeless pupil if the person having legal custody of the pupil is a resident of the United States. For the purposes of this subsection, "homeless pupil" means a pupil who has a primary residence that is:
1. A supervised publicly or privately operated shelter designed to provide temporary living accommodations.
2. An institution that provides a temporary residence for individuals intended to be institutionalized.
3. A public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings.
D. The school enrollment of a pupil who is a resident of this state or who is admitted to a school district under section 15‑823, subsection B, C, E, F or H is deemed, for the purpose of determining student count and for apportionment of state aid, to be enrollment in the school district of actual attendance, except as provided in section 15‑825, subsection A, paragraph 1 and subsection A, paragraph 2 of this section and except for pupils for whom the superintendent of public instruction is charged tuition pursuant to section 15‑825, subsections B and D and section 15‑976 or for whom another school district is charged tuition as provided in subsections E and G of this section.
E. If tuition is required to be charged for pupils attending school in a school district other than that of their residence, the tuition shall be determined and paid in the following manner:
1. The number of high school pupils for which tuition may be charged to a common school district that is not within a high school district is equal to the average daily membership in the district of attendance from the common school district for the prior fiscal year, except that for the first year in which a common school district not within a high school district stops teaching high school subjects, the district of attendance may charge tuition for the number of pupils that is equal to the average daily membership for high school pupils in the common school district for the prior fiscal year. This number may be adjusted if the common school district increases its revenue control limit and district support level or recomputes its revenue control limit as provided in section 15‑948.
2. The tuition for pupils attending school in a school district other than that of their residence, except pupils provided for by section 15‑825, subsections B and D and any pupils included in the definition of child with a disability in section 15‑761, shall not exceed the cost per student count of the school district attended, as determined for the current school year. Tuition for pupils included in the definition of child with a disability in section 15‑761 shall not exceed the actual cost of the school attended for each pupil as determined for the current year. The school district of attendance shall not include in the cost per student count a charge for transportation if no transportation is provided, and the charge for transportation shall not exceed the actual costs of providing transportation for the pupils served, as prescribed in the uniform system of financial records. The school district of attendance shall provide the school district of residence with the final tuition charge for the current year and with an estimate of the budget year's tuition charge by May 1 of the current year. The school district of residence shall pay at least one‑fourth of the total amount of the estimated tuition by September 30, December 31 and March 31, and it shall pay the remaining amount it owes after adjustments are made by June 30.
3. Notwithstanding paragraph 2 of this subsection and subsection G of this section, if two school districts enter into a voluntary agreement for the payment of tuition, the agreement shall specify the method for computing the tuition amount and the timing of the payments. The agreement shall not be longer than five consecutive years. If two school districts enter into an agreement and choose to renew the agreement, each renewal shall not be longer than five consecutive years. The agreement shall specify that a parent or legal guardian of a pupil affected by a tuition agreement entered pursuant to this section or section 15‑816.01 may choose not to send the pupil or pupils to a school district or school that is a party to the agreement.
4. Tuition of pupils as provided in section 15‑825, subsection D shall not exceed the excess costs for group B children with disabilities minus the amount generated by the equalization base as determined in section 15‑971, subsection A for these pupils. A school district may submit to the superintendent of public instruction a record of actual excess costs to educate a group B child with a disability if the costs are higher than the calculated excess costs or if a pupil has been placed in a private school for special education services. The superintendent shall determine if the additional costs will be paid, and if the costs are paid, whether the additional costs will be paid by the state or the resident district.
5. The amount received representing contributions to capital outlay as provided in subsection G, paragraph 1, subdivision (b) of this section shall be applied to the capital outlay fund or the debt service fund of the school district.
6. The amount received representing contributions to debt service as provided in subsection G, paragraph 1, subdivisions (c) and (d) of this section shall be applied to the debt service fund of the school district if there is one. Otherwise the amount shall be credited to the capital outlay fund of the school district.
F. A school district may submit to the superintendent of public instruction a record of actual costs paid by the school district to educate a pupil who qualifies for a certificate of educational convenience under section 15‑825, subsection B. If the actual costs for that pupil exceed the costs per student count computed pursuant to subsection G of this section, the superintendent of public instruction shall reimburse the school district for these additional costs subject to legislative appropriation.
G. For the purposes of this section:
1. "Costs per student count" means the sum of the following for the common or high school portion of the school district attended, whichever is applicable to the pupil involved, as prescribed in the uniform system of financial records:
(a) The actual school district expenditures for the regular education program subsection of the maintenance and operation section of the budget divided by the school district's student count for the common or high school portion of the school district, whichever is applicable.
(b) The actual school district expenditures for the capital outlay section of the budget as provided in sections 15‑903 and 15‑905 excluding expenditures for transportation equipment and buildings if no transportation is provided and expenditures for the acquisition of building sites, divided by the school district's student count for the common or high school portion of the school district, whichever is applicable.
(c) The actual school district expenditures for debt service divided by the school district's student count for the common or high school portion of the school district, whichever is applicable.
(d) The result obtained in subdivision (c) of this paragraph shall not exceed:
(i) Seven hundred fifty dollars if the pupil's school district of residence pays tuition for seven hundred fifty or fewer pupils to other school districts or one hundred fifty dollars if the state pays tuition for seven hundred fifty or fewer pupils to a school district pursuant to section 15‑825, subsection D or section 15‑976.
(ii) Eight hundred dollars if the pupil's school district of residence pays tuition for one thousand or fewer, but more than seven hundred fifty, pupils to other school districts or two hundred dollars if the state pays tuition for one thousand or fewer, but more than seven hundred fifty, pupils to a school district pursuant to section 15‑825, subsection D or section 15‑976.
(iii) The actual cost per student count if either the pupil's school district of residence or the state pays tuition for more than one thousand pupils to other school districts.
2. "Legal custody" means:
(a) Custody exercised by the natural or adoptive parents with whom a pupil resides.
(b) Custody granted by order of a court of competent jurisdiction to a person or persons with whom a pupil resides unless the primary purpose for which custody was requested was to circumvent the payment of tuition as provided in this section.
Sec. 4. Section 15-902.03, Arizona Revised Statutes, is amended to read:
15-902.03. Procedures for determining average daily membership
A. The department of education shall recompute and aggregate average daily membership for the previous fiscal year no later than August 30. The department shall inform school districts and charter schools of their final average daily membership no later than September 15. No later than November 1 of each year, state aid calculations for all school districts and charter schools for the previous fiscal year must be finalized and the budget limits for school districts must be adjusted. Any future adjustments in student counts, if discovered by the school district or charter school, shall be made pursuant to section 15‑915.
B. Notwithstanding subsection A of this section, school districts may continue to make budget adjustments pursuant to section 15‑905 and make corrections pursuant to section 15‑915 and use the adjustment for growth in student count pursuant to section 15‑948.
Sec. 5. 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 that 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 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 that 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 that are specifically exempt in whole or in part from the revenue control limit and district additional assistance. This exemption applies only to expenses incurred for activities that 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 educational opportunities 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 educational opportunities 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. If a governing board chooses to budget monies outside of district additional assistance 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 that 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 that 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 each year, 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 Arizona department of education 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 and shall submit a copy to the secretary of state. 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:
(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 Arizona 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. Each fiscal year, 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 that 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 that 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.
Sec. 6. Section 15-943, Arizona Revised Statutes, is amended to read:
15-943. Base support level
The base support level for each school district shall be computed as follows:
1. The following support level weights shall be used in paragraph 2, subdivision (a) of this section for the following school districts:
(a) For school districts whose student count in kindergarten programs and grades one through eight is classified in column 1 of this subdivision, the support level weight for kindergarten programs and grades one through eight is the corresponding support level weight prescribed in column 2 or 3 of this subdivision, whichever is appropriate:
Column 1 Column 2 Column 3
Support Level Weight Support Level Weight
For Small Isolated For Small
Student Count School Districts School Districts
1-99 1.559 1.399
100-499 1.358 + [0.0005 x (500 1.278 + [0.0003 x (500
- student count)] - student count)]
500-599 1.158 + [0.002 x (600 1.158 + [0.0012 x (600
- student count)] - student count)]
(b) For school districts whose student count in grades nine through twelve is classified in column 1 of this subdivision, the support level weight for grades nine through twelve is the corresponding support level weight prescribed in column 2 or 3 of this subdivision, whichever is appropriate:
Column 1 Column 2 Column 3
Support Level Weight Support Level Weight
For Small Isolated For Small
Student Count School Districts School Districts
1-99 1.669 1.559
100-499 1.468 + [0.0005 x (500 1.398 + [0.0004 x (500
- student count)] – student count)]
500-599 1.268 + [0.002 x (600 1.268 + [0.0013 x (600
- student count)] – student count)]
2. Subject to paragraph 1 of this section, determine the weighted student count as follows:
(a)
Support Weighted
Level Student Student
Grade Base Group A Weight Count Count
PSD 1.000 + 0.450 = 1.450 x =
K-8 1.000 + 0.158 = 1.158 x =
9-12 1.163 + 0.105 = 1.268 x =
Subtotal A
(b)
Support Weighted
Funding Level Student Student
Category Weight Count Count
HI 4.771 x =
K-3 0.060 x =
K-3 reading 0.040 x =
ELL 0.115 x _______ = ____________
MD-R, A-R and
SID‑R 6.024 x ________ = ____________
MD-SC, A-SC and
SID-SC 5.833 x =
MD-SSI 7.947 x =
OI-R 3.158 x =
OI-SC 6.773 x =
P-SD 3.595 x _______ = ____________
DD, ED, MIID, SLD,
SLI and OHI 0.003 x ________ = ____________
ED-P 4.822 x _ =
MOID 4.421 x ________ = ____________
VI 4.806 x _ =
Subtotal B
(c) Total of subtotals A and B:
3. Multiply the total determined in paragraph 2 of this section by the base level.
4. Multiply the teacher experience index of the district or 1.00, whichever is greater, by the product obtained in paragraph 3 of this section.
5. For the purposes of this section, the student count is the average daily membership as prescribed in section 15‑901 for the current year, except that for the purposes of computing the base support level used in determining school district rollover allocations and school district budget override amounts, the student count is the average daily membership as prescribed in section 15‑901 for the prior year.
Sec. 7. Title 15, chapter 9, article 3, Arizona Revised Statutes, is amended by adding section 15-948, to read:
15-948. Adjustment for growth in student count
A. A school district, after the first one hundred days or two hundred days in session, as applicable, of the current year, may determine whether it is eligible to increase its revenue control limit and district support level for the current year due to growth in the student population as follows:
1. Determine the student count used for calculating the base support level for the current year.
2. Determine the average daily membership or adjusted average daily membership, as applicable, through the first one hundred days or two hundred days in session, as applicable, of the current year.
3. Subtract the amount determined in paragraph 1 of this subsection from the amount determined in paragraph 2 of this subsection.
4. If the amount determined in paragraph 2 of this subsection is greater than the amount determined in paragraph 1 of this subsection, the school district governing board may compute an increase to its revenue control limit and district support level for the current year.
B. A school district, after the first one hundred days or two hundred days in session, as applicable, of the current year, may determine whether it is eligible to compute an increase to its revenue control limit for the current year due to growth in the number of pupils in the group B categories of moderate or severe intellectual disability, visual impairment, hearing impairment, multiple disabilities, multiple disabilities with severe sensory impairment, orthopedic impairment, preschool severe delay and pupils with emotional disabilities enrolled in private special education programs or in school district programs for pupils with severe disabilities as follows:
1. Determine the weighted student count for all group B children with disabilities used for calculating the base support level for the current year.
2. Determine the weighted average daily membership for all group B children with disabilities through the first one hundred days or two hundred days in session, as applicable, of the current year.
3. Subtract the amount determined in paragraph 1 of this subsection from the amount determined in paragraph 2 of this subsection.
4. If the amount determined in paragraph 2 of this subsection is greater than the amount determined in paragraph 1 of this subsection, the school district governing board may compute an increase to its revenue control limit and district support level for the current year by using the amount determined in paragraph 3 of this subsection for the weighted student count and the base level for the district for the current year.
C. If a school district meets the criteria specified in subsection A or B of this section, or both, the school district governing board, after giving notice and holding a public hearing as provided in section 15-905, may revise its budget at any time before May 15 to include the increase in its revenue control limit and district support level for the current year using the procedure prescribed in subsection A or B of this section, or both. Not later than May 18, the governing board shall submit the revised budget electronically to the superintendent of public instruction.
D. If the governing board adopts the revised budget at the public hearing and submits it electronically as provided in subsection C of this section, the school district shall receive state aid based on the adjusted revenue control limit or the adjusted district support level in the manner specified in section 15-971, except that the school district may not receive less state aid than it would have received if it had not used this section.
E. If the adjusted revenue control limit results in an expenditure of monies that is greater than 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.
Sec. 8. Section 15-951, Arizona Revised Statutes, is amended to read:
15-951. District additional assistance, district support level and student count for a common school district not within a high school district
A. Notwithstanding section 15‑947, the revenue control limit for a common school district not within a high school district is the sum of the following:
1. The base revenue control limit computed as prescribed in section 15‑944 but excluding pupils admitted to another school district as provided in section 15‑824, subsection A, paragraph 2.
2. The tuition payable for high school pupils who attend school in another school district as provided in section 15‑824, subsection A, paragraph 2, including any transportation charge, except as provided in subsection F of this section.
3. The transportation revenue control limit for all pupils who reside in the district except those high school pupils transported by another district.
B. Notwithstanding subsection A of this section, for the purposes of sections 15‑481, 15‑482 and 15‑1102, the revenue control limit for a common school district not within a high school district is the sum of the following:
1. The base revenue control limit for pupils computed as prescribed in section 15‑944 but excluding pupils admitted to another school district as provided in section 15‑824, subsection A, paragraph 2.
2. The transportation revenue control limit for all pupils who reside in the district except those high school pupils transported by another district.
C. Notwithstanding section 15‑961, district additional assistance for a common school district not within a high school district is district additional assistance as prescribed in section 15‑961 but excluding pupils who are admitted to another school district as provided in section 15‑824, subsection A, paragraph 2, except that if the school district transports high school pupils, the district additional assistance amount prescribed in section 15‑961 shall be increased by an amount equal to fifty percent of the district additional assistance per pupil amount prescribed for the school district pursuant to section 15‑961 multiplied by the number of high school pupils transported.
D. Notwithstanding section 15‑947, the district support level for a common school district not within a high school district is the sum of the following:
1. The base support level computed as prescribed in section 15‑943 but excluding pupils who are admitted to another school district as provided in section 15‑824, subsection A, paragraph 2.
2. The tuition payable for high school pupils who are admitted to another school district as provided in section 15‑824, subsection A, paragraph 2, including any transportation charge, except as provided in subsection F of this section.
3. The transportation support level for all pupils who reside in the school district except those high school pupils transported by another school district.
E. For the purpose of determining eligibility to increase the revenue control limit and district support level or recompute the revenue control limit as provided in section 15‑948, the student count for a common school district not within a high school district is the student count for pupils in kindergarten programs and grades one through twelve, including pupils enrolled in another school district as provided in section 15‑824, subsection A, paragraph 2.
F. The tuition amount in subsections A and D of this section shall not include amounts per student count for bond issues as prescribed by section 15‑824, subsection G, paragraph 1, subdivision (c) in excess of the following:
1. One hundred fifty dollars if the pupil's school district of residence pays tuition for seven hundred fifty or fewer pupils to other school districts.
2. Two hundred dollars if the pupil's school district of residence pays tuition for one thousand or fewer, but more than seven hundred fifty pupils to other school districts.
3. The actual cost per student count if the pupil's school district of residence pays tuition for more than one thousand pupils to other school districts.
Sec. 9. Section 15-973, Arizona Revised Statutes, is amended to read:
15-973. Apportionment of funds; expenditure limitation
A. The state board of education shall apportion state aid from appropriations made for that purpose to the several counties on the basis of state aid entitlement for the school districts in each county. An allowance shall not be made for nonresident alien children or for wards of the United States for whom tuition is paid, but attendance of a student in a school of a county adjoining the county of the student's residence outside the state under a certificate of educational convenience as provided by section 15‑825 shall be deemed to be enrollment in the school of the county or school district of the student's residence.
B. Apportionments shall be made as follows:
1. By the close of business on the first day of business of August, one‑twelfth of the total amount to be apportioned during the fiscal year.
2. By the close of business on the first day of business of September, one‑twelfth of the total amount to be apportioned during the fiscal year.
3. By the close of business on the first day of business of October, one‑twelfth of the total amount to be apportioned during the fiscal year.
4. By the close of business on the first day of business of November, one‑twelfth of the total amount to be apportioned during the fiscal year.
5. By the close of business on the first day of business of December, one‑twelfth of the total amount to be apportioned during the fiscal year.
6. By the close of business on the first day of business of January, one‑twelfth of the total amount to be apportioned during the fiscal year.
7. By the close of business on the first day of business of February, one‑twelfth of the total amount to be apportioned during the fiscal year.
8. By the close of business on the first day of business of March, one‑twelfth of the total amount to be apportioned during the fiscal year.
9. By the close of business on the first day of business of April, one‑twelfth of the total amount to be apportioned during the fiscal year.
10. By the close of business on the first day of business of May, one‑twelfth of the total amount to be apportioned during the fiscal year.
11. By the close of business on the first day of business of June, one‑twelfth of the total amount to be apportioned during the fiscal year.
12. By the close of business on the last day of business of June, one‑twelfth of the total amount to be apportioned during the fiscal year.
The superintendent of public instruction shall furnish to the county treasurer and the county school superintendent an abstract of the apportionment and shall certify the apportionment to the department of administration, which shall draw its warrant in favor of the county treasurer of each county for the amount apportioned. On receipt of the warrant, the county treasurer shall notify the county school superintendent of the amount, together with any other monies standing to the credit of that school district, in the county school fund.
C. Notwithstanding subsection B of this section, if sufficient appropriated monies are available and on a showing by a school district that additional state monies are necessary for current expenses, an apportionment or part of an apportionment of state aid may be paid to the school district prior to before the date set for that apportionment by subsection B of this section. After the first forty days in session of the current year, a school district may request additional state monies to fund the increased state aid due to anticipated student growth through the first one hundred days or two hundred days in session, as applicable, of the current year as provided in section 15‑948. A school district may not receive more than three‑fourths of its total apportionment before May 1 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.
D. The superintendent of public instruction shall not make application to the federal government to utilize title VIII of the elementary and secondary education act of 1965 monies in determining the apportionment prescribed in this section.
E. If a school district that is eligible to receive monies pursuant to this article is unable to meet a scheduled payment on any lawfully incurred long‑term obligation for debt service as provided in section 15‑1022, the county treasurer shall use any amount distributed pursuant to this section to make the payment. The county treasurer shall keep a record of all the instances in which a payment is made pursuant to this subsection. Any monies subsequently collected by the district to make the scheduled payment shall be used to replace the amount diverted pursuant to this subsection. When determining the total amount to be funded by a levy of secondary taxes on property within the school district for the following fiscal year, the county board of supervisors shall add to the amounts budgeted to be expended during the following fiscal year an amount equal to the total of all payments pursuant to this subsection during the current fiscal year that were not repaid during the current year.
F. The total amount of state monies that may be spent in any fiscal year by the state board of education for apportionment of state aid for education shall not exceed the amount appropriated or authorized by section 35‑173 for that purpose. This section does not impose a duty on an officer, agent or employee of this state to discharge a responsibility or 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.
Sec. 10. Section 15-991, Arizona Revised Statutes, is amended to read:
15-991. Annual estimate by county school superintendent of monies for ensuing year; review and approval by property tax oversight commission
A. The county school superintendent shall recompute the equalization assistance for education for each school district pursuant to section 15‑971, subsection A and compute the additional amount to be levied pursuant to section 15‑992, subsection B using the property values provided by the county assessor under section 42‑17052. The county school superintendent must certify in writing to the property tax oversight commission on or before July 25 of each year the amount of equalization assistance for education and the amount to be levied for each school district from the primary property tax pursuant to section 15‑992.
B. The county school superintendent must prepare and file with the governing board of each school district in the county and the property tax oversight commission on or before July 25 of each year a written estimate of the amount of monies required by each school district for the ensuing school year based on the proposed budget adopted by each school district governing board. The estimate shall contain:
1. A statement of the student count of each school district.
2. The total amount to be received for the year by each school district from the county school fund and the special county school reserve fund.
3. The anticipated interest earnings for each school district.
4. Revenues equal to the amount included in the adopted budget for the maintenance and operation section of the budget permitted by section 15‑947, subsection C, paragraph 2, subdivision (a), items (ii), (iii), (iv), (v) and (vi) and subdivision (c). The county school superintendent shall estimate the additional amounts needed for each school district from the primary property tax and the secondary property tax. The county school superintendent shall certify those amounts to the board of supervisors and the property tax oversight commission in writing at the time of filing the estimate. When estimating the additional amount needed from the primary property tax for a school district that is not eligible for equalization assistance as provided in section 15‑971, the county school superintendent shall include the school district governing board's estimate of the increase in the revenue control limit as prescribed by section 15‑948 for the applicable year, except that the percentage increase in average daily membership used to compute the estimated increase in the revenue control limit may not exceed the average of the percentage increase in average daily membership in the three years before the year for which the estimate is made.
5. The calculation of the amount to be levied as prescribed by section 15‑992 using the values provided by the county assessor under section 42‑17052.
C. The property tax oversight commission must review the primary property tax calculations filed under subsection B, paragraph 5 of this section.
D. The county school superintendent must file in writing with the county board of supervisors and the property tax oversight commission on or before the third Monday in August of each year the amount that is required to be levied for each school district from both the primary property tax prescribed by section 15‑992 and the secondary property tax.
E. On or before September 1, the governing board of a school district shall file with the county school superintendent an estimate of the amount of title VIII of the elementary and secondary education act of 1965 monies it is eligible to receive during the current year. On or before June 1, the governing board shall file with the county school superintendent and the superintendent of public instruction a statement of the actual amount of title VIII of the elementary and secondary education act of 1965 monies it received during the current year. This subsection does not apply to accommodation schools.
F. The department may collect any other similar or related information from school districts that the department may determine is necessary to carry out the purposes of this section.
Sec. 11. Section 15-1371, Arizona Revised Statutes, is amended to read:
15-1371. Equalization assistance for state educational system for committed youth; state education fund for committed youth
A. The superintendent of the state educational system for committed youth shall calculate a base support level as prescribed in section 15‑943 and district additional assistance as prescribed in section 15‑961 for the educational system established pursuant to section 41‑2831, except that:
1. Notwithstanding section 15‑901:
(a) The student count shall be determined using the following definitions:
(i) "Daily attendance" means days in which a pupil attends an educational program for a minimum of two hundred forty minutes, not including meal and recess periods. Attendance for one hundred twenty or more minutes but fewer than two hundred forty minutes shall be counted as one‑half day's attendance.
(ii) "Fractional student" means a pupil who is enrolled in an educational program of one hundred twenty or more minutes but fewer than two hundred forty minutes a day, not including meal and recess periods. A fractional student shall be counted as one‑half of a full‑time student.
(iii) "Full‑time student" means a pupil who is enrolled in an educational program for a minimum of two hundred forty minutes a day, not including meal and recess periods.
(b) "Pupils with serious emotional disabilities enrolled in a school district program as provided in section 15‑765" includes pupils with serious emotional disabilities enrolled in the department of juvenile corrections school system.
2. All pupils shall be counted as if they were enrolled in grades nine through twelve.
3. The teacher experience index is 1.00.
4. The base support level shall be calculated using the base level multiplied by 1.0, except that the state educational system for committed youth is also eligible for additional teacher compensation monies as specified in section 15‑952.
5. Section 15‑943, paragraph 1 does not apply.
B. The superintendent may use section sections 15‑855 and 15‑948 in making the calculations prescribed in subsection A of this section. The superintendent of the system and the department of education shall prescribe procedures for determining average daily membership.
C. Equalization assistance for the state educational system for committed youth for the budget year is determined by adding the amount of the base support level and district additional assistance for the budget year calculated as prescribed in subsection A of this section.
D. The state educational system for committed youth shall not receive twenty‑five percent of the equalization assistance unless it is accredited by the north central association of colleges and secondary schools.
E. The state education fund for committed youth is established. Fund monies shall be used for the purposes of the state educational system for committed youth, and notwithstanding section 35‑173, monies appropriated to the fund shall not be transferred to or used for any program that is not within the state educational system for committed youth. State equalization assistance for the state educational system for committed youth as determined in subsection A of this section, other state and federal monies received from the department of education for the state educational system for committed youth and monies appropriated for the state educational system for committed youth, except monies appropriated pursuant to subsection F of this section, shall be deposited in the fund. The state treasurer shall maintain separate accounts for fund monies if the separate accounts are required by statute or federal law.
F. The department of juvenile corrections may seek appropriations for capital needs for land, buildings and improvements, including repairs and maintenance, that are required to maintain the state educational system for committed youth.
G. The state board of education shall apportion state aid and deposit it, pursuant to sections 35‑146 and 35‑147, in the state education fund for committed youth in an amount as determined by subsection A of this section. The apportionments shall be as follows:
1. On July 1, one‑third of the total amount to be apportioned during the fiscal year.
2. On October 15, one‑twelfth of the total amount to be apportioned during the fiscal year.
3. On December 15, one‑twelfth of the total amount to be apportioned during the fiscal year.
4. On January 15, one‑twelfth of the total amount to be apportioned during the fiscal year.
5. On February 15, one‑twelfth of the total amount to be apportioned during the fiscal year.
6. On March 15, one‑twelfth of the total amount to be apportioned during the fiscal year.
7. On April 15, one‑twelfth of the total amount to be apportioned during the fiscal year.
8. On May 15, one‑twelfth of the total amount to be apportioned during the fiscal year.
9. On June 15, one‑twelfth of the total amount to be apportioned during the fiscal year.
H. In conjunction with the department of administration, the superintendent of the state educational system for committed youth shall establish procedures to account for the receipt and expenditure of state education fund for committed youth monies by modifying the current accounting system used for state agencies as necessary.
Sec. 12. Section 15-1372, Arizona Revised Statutes, is amended to read:
15-1372. Equalization assistance for state educational system for persons in the state department of corrections; fund
A. The state department of corrections shall provide educational services for pupils who are under the age of eighteen years and pupils with disabilities who are age twenty‑one or younger who are committed to the state department of corrections. The department of education shall provide technical assistance to the state department of corrections on request and shall assist the state department of corrections in establishing program and personnel standards.
B. The state education fund for correctional education is established. Subject to legislative appropriation, fund monies shall be used for the purposes of providing education to pupils as specified in subsection A of this section. Notwithstanding section 35‑173, monies appropriated to the fund shall not be transferred to or used for any program that is not directly related to the educational services required by this section. State equalization assistance, other state and federal monies received from the department of education for which the pupils in correctional education programs qualify and monies appropriated for correctional education except monies appropriated pursuant to subsection C of this section shall be deposited in the fund. The state treasurer shall maintain separate accounts for fund monies if the separate accounts are required by statute or federal law.
C. The state department of corrections may seek appropriations for capital needs for land, buildings and improvements, including repairs and maintenance, that are required to maintain the educational services required by this section.
D. The state board of education shall apportion state aid and deposit it, pursuant to sections 35‑146 and 35‑147, in the state education fund for correctional education in an amount as determined by subsection E of this section. The apportionments are as follows:
1. On July 1, one‑third of the total amount to be apportioned during the fiscal year.
2. On October 15, one‑twelfth of the total amount to be apportioned during the fiscal year.
3. On December 15, one‑twelfth of the total amount to be apportioned during the fiscal year.
4. On January 15, one‑twelfth of the total amount to be apportioned during the fiscal year.
5. On February 15, one‑twelfth of the total amount to be apportioned during the fiscal year.
6. On March 15, one‑twelfth of the total amount to be apportioned during the fiscal year.
7. On April 15, one‑twelfth of the total amount to be apportioned during the fiscal year.
8. On May 15, one‑twelfth of the total amount to be apportioned during the fiscal year.
9. On June 15, one‑twelfth of the total amount to be apportioned during the fiscal year.
E. The director of the state department of corrections shall calculate a base support level as prescribed in section 15‑943 and district additional assistance as prescribed in section 15‑961 for the educational services required by this section, except that:
1. Notwithstanding section 15‑901, the student count shall be determined using the following definitions:
(a) "Daily attendance" means days in which a pupil attends an educational program for a minimum of one hundred eighty minutes, not including meal and recess periods. Attendance for ninety or more minutes but fewer than one hundred eighty minutes shall be counted as one‑half day's attendance.
(b) "Fractional student" means a pupil who is enrolled in an educational program of ninety or more minutes but fewer than one hundred eighty minutes per day, not including meal and recess periods. A fractional student shall be counted as one‑half of a full‑time student.
(c) "Full‑time student" means a pupil who is enrolled in an educational program for a minimum of one hundred eighty minutes per day, not including meal and recess periods.
(d) "Pupil with a disability" has the same meaning as child with a disability prescribed in section 15‑761.
2. All pupils shall be counted as if they were enrolled in grades nine through twelve.
3. The teacher experience index is 1.00.
4. The calculation for additional teacher compensation monies as prescribed in section 15‑952 is available.
5. Section 15‑943, paragraph 1 does not apply.
6. The base support level and capital outlay amounts calculated pursuant to this section shall be multiplied by 0.67.
7. The school year shall consist of a period of not less than two hundred eight days.
F. The director of the state department of corrections may use section sections 15‑855 and 15‑948 in making the calculations prescribed in subsection E of this section. The director of the state department of corrections and the department of education shall prescribe procedures for calculating average daily membership.
G. Equalization assistance for correctional education programs provided for those pupils specified in subsection A of this section is determined by adding the amount of the base support level and district additional assistance for the budget year calculated as prescribed in subsection E of this section.
H. The director of the state department of corrections shall keep records and provide information as the department of education requires to determine the appropriate amount of equalization assistance. Equalization assistance shall be used to provide educational services in this section.
I. The department of education and the state department of corrections shall enter into an intergovernmental agreement that establishes the necessary accountability between the two departments regarding the administrative and funding requirements contained in subsections A and B of this section. The agreement shall:
1. Provide for appropriate education to all committed youths as required by state and federal law.
2. Provide financial information to meet requirements for equalization assistance.
3. Provide for appropriate pupil intake and assessment procedures.
4. Require pupil performance assessment and the reporting of results.
Sec. 13. Appropriation; department of education; prior‑year funding
The sum of $31,000,000 is appropriated from the state general fund in fiscal year 2017-2018 to the department of education for distribution to school districts and charter schools on a per pupil basis for the costs associated with prior‑year funding.
