Bill Text: AZ HB2518 | 2020 | Fifty-fourth Legislature 2nd Regular | Introduced


Bill Title: Schools; expenditure limit; overrides

Spectrum: Bipartisan Bill

Status: (Introduced) 2020-05-19 - Assigned to House RULES Committee [HB2518 Detail]

Download: Arizona-2020-HB2518-Introduced.html

 

 

 

REFERENCE TITLE: schools; expenditure limit; overrides

 

 

 

 

State of Arizona

House of Representatives

Fifty-fourth Legislature

Second Regular Session

2020

 

 

 

HB 2518

 

Introduced by

Representatives Lieberman: Butler, Campbell, Cobb, Cook, Dunn, Epstein, Hernandez D, Osborne, Pawlik, Shah, Shope, Sierra

 

 

AN ACT

 

amending sections 15-302 and 15‑481, arizona revised statutes; relating to overrides.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 15-302, Arizona Revised Statutes, is amended to read:

START_STATUTE15-302.  Powers and duties

A.  The county school superintendent shall:

1.  Distribute all laws, reports, circulars, instructions and forms that the county school superintendent may receive for the use of school officers.

2.  Record all official acts.

3.  Appoint governing board members of school districts to fill all vacancies, but the term of the appointment shall be until the next regular election for governing board members, at which time a successor shall be elected to serve the unexpired portion of the term.  Within thirty days after notification of a vacancy, the school district governing board may submit up to three names to the county school superintendent for consideration of an appointment to fill the vacancy.  The county school superintendent is not required to appoint a governing board member from the list of names submitted by the governing board.  The county school superintendent, if the county school superintendent deems it in the best interest of the community, may call a special election to fill the vacancies.  If an election is called, the newly elected member shall serve for the remainder of the unexpired portion of the term.

4.  Make reports, when directed by the superintendent of public instruction, showing matters relating to schools in the county as may be required on the forms furnished by the superintendent of public instruction.

5.  Have such powers and perform such duties as otherwise prescribed by law.

6.  On or before October 1 of each year, report to the superintendent of public instruction the amount of monies received from state school funds, special school district taxes and other sources, the total expenditures for school purposes and the balance on hand to the credit of each school district at the close of the school year.

7.  Contract with the board of supervisors for the board of supervisors to conduct all regular school district elections.

8.  Be responsible, in cooperation with the school district governing boards and the board of supervisors, for all special school district elections.

9.  Maintain teacher and administrator certification records of effective dates and expiration dates of teachers' and administrators' certificates in compliance with guidelines prescribed in the uniform system of financial records for those school districts for which the county school superintendent is the fiscal agent.  The county school superintendent shall not draw a warrant in payment of a teacher's, substitute teacher's or administrator's salary unless the teacher, substitute teacher or administrator is legally certified during the fiscal year in which the term for payment is demanded.

10.  Notify a school district three years before the expiration of a revenue control limit override that the school district's budget must be adjusted in the final two years of the override pursuant to section 15‑481, subsections P and Q, if the voters do not approve another override.

11.  10.  In collaboration with the department of education and other state agencies, provide assistance to school districts, charter schools, county free library districts, municipal libraries, nonprofit and public libraries, tribal libraries, private schools and tribal schools on the use of student data, staff development, curriculum alignment and technology to improve student performance.

12.  11.  Assist schools in meeting yearly adequate progress goals as defined by criteria established by the state board of education and implemented by the department of education.

B.  At the request of school districts and charter schools, the county school superintendent may provide discretionary programs in addition to the programs prescribed in subsection A of this section.

C.  The county school superintendent may provide the services prescribed in subsections A and B of this section in the county or jointly with two or more counties pursuant to title 11, chapter 7, article 3.

D.  Each county school superintendent may establish an advisory committee to the office of the county school superintendent. END_STATUTE

Sec. 2.  Section 15-481, Arizona Revised Statutes, is amended to read:

START_STATUTE15-481.  Override election; budget increases; informational pamphlet; notice; ballot; effect

A.  If a proposed budget of a school district exceeds the aggregate budget limit for the budget year, at least ninety days before the proposed election the governing board shall order an override election to be held on the first Tuesday following the first Monday in November as prescribed by section 16‑204, subsection F for the purpose of presenting the proposed budget to the qualified electors of the school district who by a majority of those voting either shall affirm or reject the budget.  At the same time as the order of the election, the governing board shall publicly declare the deadline for submitting arguments, as set by the county school superintendent pursuant to subsection B, paragraph 9 of this section, to be submitted in the informational pamphlet and shall immediately post the deadline in a prominent location on the district's website.  In addition, the governing board shall prepare an alternate budget that does not include an increase in the budget of more than the amount permitted allowed as provided in section 15‑905.  If the qualified electors approve the proposed budget, the governing board of the school district shall follow the procedures prescribed in section 15‑905 for adopting a budget that includes the authorized increase.  If the qualified electors disapprove the proposed budget, the governing board shall follow the procedures prescribed in section 15‑905 for adopting a budget that does not include the proposed increase or the portion of the proposed increase that exceeds the amount authorized by a previously approved budget increase as prescribed in subsection P of this section.

B.  The county school superintendent shall prepare an informational pamphlet on the proposed increase in the budget and a sample ballot and, at least forty days prior to before the election, shall transmit the informational pamphlet and the sample ballot to the governing board of the school district.  The governing board, on receipt of the informational pamphlet and the ballot, shall mail or distribute the informational pamphlet and the ballot to the households in which qualified electors reside within the school district at least thirty‑five days prior to before the election.  Any distribution of material concerning the proposed increase in the budget shall not be conducted by children enrolled in the school district.  The informational pamphlet shall contain the following information:

1.  The date of the election.

2.  The voter's polling place and the times it is open.

3.  The proposed total increase in the budget that exceeds the amount permitted pursuant to section 15‑905.

4.  The total amount of the current year's budget, the total amount of the proposed budget and the total amount of the alternate budget.

5.  If the override is for a period of more than one year, a statement indicating the number of years the proposed increase in the budget would be in effect and the percentage of the school district's revenue control limit that the district is requesting for the future years.

6.  The proposed total amount of revenues that will fund the increase in the budget and the amount that will be obtained from a levy of taxes on the taxable property within the school district for the first year for which the budget increase was adopted.

7.  The proposed amount of revenues that will fund the increase in the budget and that will be obtained from other than a levy of taxes on the taxable property within the school district for the first year for which the budget increase was adopted.

8.  The dollar amount and the purpose for which the proposed increase in the budget is to be expended for the first year for which the budget increase was adopted.  The purpose statement shall only present factual information in a neutral manner.  Advocacy for the expenditures is strictly limited to the arguments submitted pursuant to paragraph 9 of this subsection.

9.  At least two arguments, if submitted, but no not more than ten arguments for and two arguments, if submitted, but no not more than ten arguments against the proposed increase in the budget.  The arguments shall be in a form prescribed by the county school superintendent, and each argument shall not exceed two hundred words.  Arguments for the proposed increase in the budget shall be provided in writing and signed by the governing board.  The ballot arguments for the proposed increase in the budget shall be signed as the governing board of the school district without listing any member's individual name for the arguments for the proposed increase.  If submitted, additional arguments in favor of the proposed increase in the budget shall be provided in writing and signed by those in favor.  Arguments against the proposed increase in the budget shall be provided in writing and signed by those in opposition.  The names of persons and entities submitting written arguments shall be included in the informational pamphlet.  The county school superintendent shall review all factual statements contained in the written arguments and correct any inaccurate statements of fact.  The superintendent shall not review and correct any portion of the written arguments that are identified as statements of the author's opinion.  The county school superintendent shall make the written arguments available to the public as provided in title 39, chapter 1, article 2.  A deadline for submitting arguments to be included in the informational pamphlet shall be set by the county school superintendent.

10.  A statement that the alternate budget shall be adopted by the governing board if the proposed budget is not adopted by the qualified electors of the school district.

11.  The current limited property value and the net assessed valuation provided by the department of revenue, the first year tax rate for the proposed override and the estimated amount of the secondary property taxes if the proposed budget is adopted 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.

12.  If the election is conducted pursuant to subsection L or M of this section, the following information:

(a)  An executive summary of the school district's most recent capital improvement plan submitted to the school facilities board.

(b)  A complete list of each proposed capital improvement that will be funded with the budget increase and a description of the proposed cost of each improvement, including a separate aggregation of capital improvements for administrative purposes as defined by the school facilities board.

(c)  The tax rate associated with each of the proposed capital improvements and the estimated cost of each capital improvement for the owner of a single family home that is valued at eighty thousand dollars $80,000.

C.  For the purpose of this section, the school district may use its staff, equipment, materials, buildings or other resources only to distribute the informational pamphlet at the school district office or at public hearings and to produce such information as required in subsection B of this section, provided that nothing in this subsection shall does not preclude school districts from holding or participating in any public hearings at which testimony is given by at least one person for the proposed increase and one person against the proposed increase.  Any written information provided by the district pertaining to the override election shall include financial information showing the estimated first year tax rate for the proposed budget override amount.

D.  If any amount of the proposed increase will be funded by a levy of taxes in the district, the election prescribed in subsection A of this section shall be held on the first Tuesday following the first Monday in November as prescribed by section 16‑204, subsection F.  If the proposed increase will be fully funded by revenues from other than a levy of taxes, the elections prescribed in subsection A of this section shall be held on any date prescribed by section 16‑204.  The elections shall be conducted as nearly as practicable in the manner prescribed in article 1 of this chapter, sections 15‑422 through 15‑424 and section 15‑426, relating to special elections, except that:

1.  The notices required pursuant to section 15‑403 shall be posted not less than twenty‑five days before the election.

2.  Ballots shall be counted pursuant to title 16, chapter 4, article 10.

E.  If the election is to exceed the revenue control limit and if the proposed increase will be fully funded by a levy of taxes on the taxable property within the school district, the ballot shall contain the words "budget increase, yes" and "budget increase, no", and the voter shall signify the voter's desired choice.  The ballot shall also contain the amount of the proposed increase of the proposed budget over the alternate budget, a statement that the maximum amount of the proposed increase will be based on the initial proposed percentage of the school district's revenue control limit in future years, if applicable, as provided in subsection P of this section and the following statement:

Any budget increase authorized by this election shall be entirely funded by a levy of taxes on the taxable property within this school district for the year for which adopted and for ____ subsequent years, shall not be realized from monies furnished by the state and shall not be subject to the limitation on taxes specified in article IX, section 18, Constitution of Arizona.  Based on the current net assessed valuation used for secondary property tax purposes, to fund the proposed increase in the school district's budget would require an estimated tax rate of $__________ dollar per one hundred dollars $100 of net assessed valuation used for secondary property tax purposes and is in addition to the school district's tax rate that will be levied to fund the school district's revenue control limit allowed by law.

F.  If the election is to exceed the revenue control limit and if the proposed increase will be fully funded by revenues from other than a levy of taxes on the taxable property within the school district, the ballot shall contain the words "budget increase, yes" and "budget increase, no", and the voter shall signify the voter's desired choice.  The ballot shall also contain:

1.  The amount of the proposed increase of the proposed budget over the alternate budget.

2.  A statement that the maximum amount of the proposed increase will be based on the initial proposed percentage of the school district's revenue control limit in future years, if applicable, as provided in subsection P of this section.

3.  The following statement:

Any budget increase authorized by this election shall be entirely funded by this school district with revenues from other than a levy of taxes on the taxable property within the school district for the year for which adopted and for ______ subsequent years and shall not be realized from monies furnished by the state.

G.  Except as provided in subsection H of this section, the maximum budget increase that may be requested and authorized as provided in subsection E or F of this section or the combination of subsections E and F of this section is fifteen percent of the revenue control limit as provided in section 15‑947, subsection A for the budget year.  If a school district requests an override pursuant to section 15‑482 or to continue with a budget override pursuant to section 15‑482 for pupils in kindergarten programs and grades one through three that was authorized before December 31, 2008, the maximum budget increase that may be requested and authorized as provided in subsection E or F of this section or the combination of subsections E and F of this section is ten percent of the revenue control limit as provided in section 15‑947, subsection A for the budget year.

H.  Special budget override provisions for school districts with a student count of less than one hundred fifty‑four in kindergarten programs and grades one through eight or with a student count of less than one hundred seventy‑six in grades nine through twelve are as follows:

1.  The maximum budget increase that may be requested and authorized as provided in subsections E and F of this section is the greater of the amount prescribed in subsection G of this section or a limit computed as follows:

(a)  For common or unified districts with a student count of less than one hundred fifty‑four in kindergarten programs and grades one through eight, the limit computed as prescribed in item (i) or (ii) of this subdivision, whichever is appropriate:

(i)

           Small School   Support Level Weight                  Phase Down

Student    Student        for Small Isolated                    Reduction

Count      Count Limit    School Districts        Base Level    Factor    

        -      125      x 1.358 + (0.0005 x     x $           = $         

                          (500 - Student Count))

                                                  Small Isolated

           Phase Down     Phase Down              School District

              Base        Reduction Factor        Elementary Limit

           $150,000    -  $                     = $               

(ii)

           Small School   Support Level Weight                  Phase Down

Student    Student        for Small                             Reduction

Count      Count Limit    School Districts        Base Level    Factor    

       -      125     x 1.278 + (0.0003 x     x $          = $         

                          (500 - Student Count))

                                                    Small

           Phase Down     Phase Down                School District

              Base        Reduction Factor          Elementary Limit

           $150,000    -  $                      =  $               

(b)  For unified or union high school districts with a student count of less than one hundred seventy‑six in grades nine through twelve, the limit computed as prescribed in item (i) or (ii) of this subdivision, whichever is appropriate:

(i)

           Small School   Support Level Weight                  Phase Down

Student    Student        for Small Isolated                    Reduction

Count      Count Limit    School Districts        Base Level    Factor    

        -      100      x 1.468 + (0.0005 x     x $           = $       __

                          (500 - Student Count))

                                                    Small Isolated

           Phase Down     Phase Down                District

              Base        Reduction Factor          Secondary Limit

           $350,000    -  $                      =  $              

(ii)

           Small School   Support Level Weight                  Phase Down

Student    Student        for Small                             Reduction

Count      Count Limit    School Districts        Base Level_   Factor    

       -      100     x  1.398 + (0.0004 x     x $           = $         

                          (500 - Student Count))

                                                    Small

           Phase Down     Phase Down                School District

              Base        Reduction Factor          Secondary Limit

           $350,000    -  $                      =  $              

(c)  If both subdivisions (a) and (b) of this paragraph apply to a unified school district, its limit for the purposes of this paragraph is the combination of its elementary limit and its secondary limit.

(d)  If only subdivision (a) or (b) of this paragraph applies to a unified school district, the district's limit for the purposes of this paragraph is the sum of the limit computed as provided in subdivision (a) or (b) of this paragraph plus ten percent of the revenue control limit attributable to those grade levels that do not meet the eligibility requirements of this subsection.  If a school district budgets monies outside the revenue control limit pursuant to section 15‑949, subsection E, the district's limit for the purposes of this paragraph is only the ten percent of the revenue control limit attributable to those grade levels that are not included under section 15‑949, subsection E.  For the purposes of this subdivision, the revenue control limit is separated into elementary and secondary components based on the weighted student count as provided in section 15‑971, subsection B, paragraph 2, subdivision (a).

2.  If a school district utilizes this subsection to request an override of more than one year, the ballot shall include an estimate of the amount of the proposed increase in the future years in place of the statement that the amount of the proposed increase will be based on a percentage of the school district's revenue control limit in future years, as prescribed in subsections E and F of this section.

3.  Notwithstanding subsection P of this section, the maximum period of an override authorized pursuant to this subsection is five years.

4.  Subsection P, paragraphs 1 and 2 of this section do not apply to overrides authorized pursuant to this subsection.

I.  If the election is to exceed the revenue control limit as provided in section 15‑482 and if the proposed increase will be fully funded by a levy of taxes on the taxable property within the school district, the ballot shall contain the words "budget increase, yes" and "budget increase, no", and the voter shall signify the voter's desired choice.  The ballot shall also contain the amount of the proposed increase of the budget over the alternate budget, a statement that the maximum amount of the proposed increase will be based on the initial proposed percentage of the school district's revenue control limit in future years, if applicable, as provided in subsection Q of this section, and the following statement:

Any budget increase authorized by this election shall be entirely funded by a levy of taxes on the taxable property within this school district for the year for which adopted and for _____ subsequent years, shall not be realized from monies furnished by the state and shall not be subject to the limitation on taxes specified in article IX, section 18, Constitution of Arizona.  Based on the current net assessed valuation used for secondary property tax purposes, to fund the proposed increase in the school district's budget that will be funded by a levy of taxes on the taxable property within this school district would require an estimated tax rate of $_________ dollar per one hundred dollars $100 of net assessed valuation used for secondary property tax purposes and is in addition to the school district's tax rate that will be levied to fund the school district's revenue control limit allowed by law.

J.  If the election is to exceed the revenue control limit as provided in section 15‑482 and if the proposed increase will be fully funded by revenues other than a levy of taxes on the taxable property within the school district, the ballot shall contain the words "budget increase, yes" and "budget increase, no", and the voter shall signify the voter's desired choice.  The ballot shall also contain the amount of the proposed increase of the proposed budget over the alternate budget, a statement that the maximum amount of the proposed increase will be based on the initial proposed percentage of the school district's revenue control limit in future years, if applicable, as provided in subsection Q of this section and the following statement:

Any budget increase authorized by this election shall be entirely funded by this school district with revenues from other than a levy of taxes on the taxable property within the school district for the year for which adopted and for _____ subsequent years and shall not be realized from monies furnished by the state.

K.  The maximum budget increase that may be requested and authorized as provided in subsection I or J of this section, or a combination of both of these subsections, is five percent of the revenue control limit as provided in section 15‑947, subsection A for the budget year.  For a common school district not within a high school district or a common school district within a high school district that offers instruction in high school subjects as provided in section 15‑447, five percent of the revenue control limit means five percent of the revenue control limit attributable to the weighted student count in preschool programs for children with disabilities, kindergarten programs and grades one through eight as provided in section 15‑971, subsection B.  For a unified school district, five percent of the revenue control limit means five percent of the revenue control limit attributable to the weighted student count in preschool programs for children with disabilities, kindergarten programs and grades one through twelve.  For a union high school district, five percent of the revenue control limit means five percent of the revenue control limit attributable to the weighted student count in grades nine through twelve.

L.  If the election is to exceed district additional assistance and if the proposed increase will be fully funded by a levy of taxes on the taxable property within the school district, the ballot shall contain the words "budget increase, yes" and "budget increase, no", and the voter shall signify the voter's desired choice.  An election held pursuant to this subsection shall be held on the first Tuesday after the first Monday of November.  The ballot shall also contain the amount of the proposed increase of the proposed budget over the alternate budget and the following statement:

Any budget increase authorized by this election shall be entirely funded by a levy of taxes on the taxable property within this school district for the year in which adopted and for _____ subsequent years, shall not be realized from monies furnished by the state and shall not be subject to the limitation on taxes specified in article IX, section 18, Constitution of Arizona.  Based on the current net assessed valuation used for secondary property tax purposes, to fund the proposed increase in the school district's budget would require an estimated tax rate of $___________ dollar per one hundred dollars $100 of net assessed valuation used for secondary property tax purposes and is in addition to the school district's tax rate that will be levied to fund the school district's district additional assistance allowed by law.

M.  If the election is to exceed district additional assistance and if the proposed increase will be fully funded by revenues from other than a levy of taxes on the taxable property within the school district, the ballot shall contain the words "budget increase, yes" and "budget increase, no", and the voter shall signify the voter's desired choice.  An election held pursuant to this subsection shall be held on the first Tuesday after the first Monday of November.  The ballot shall also contain the amount of the proposed increase of the proposed budget over the alternate budget and the following statement:

Any budget increase authorized by this election shall be entirely funded by this school district with revenues from other than a levy of taxes on the taxable property within the school district for the year in which adopted and for ______ subsequent years and shall not be realized from monies furnished by the state.

N.  If the election is to exceed a combination of the revenue control limit as provided in subsection E or F of this section, the revenue control limit as provided in subsection I or J of this section or district additional assistance as provided in subsection L or M of this section, the ballot shall be prepared so that the voters may vote on each proposed increase separately and shall contain statements required in the same manner as if each proposed increase were submitted separately.

O.  If the election provides for a levy of taxes on the taxable property within the school district, at least thirty days prior to before the election, the department of revenue shall provide the school district governing board and the county school superintendent with the current net assessed valuation of the school district.  The governing board and the county school superintendent shall use the current net assessed valuation of the school district to translate the amount of the proposed dollar increase in the budget of the school district over that allowed by law into a tax rate figure.

P.  If the voters in a school district vote to adopt a budget in excess of the revenue control limit as provided in subsection E or F of this section, any additional increase shall be included in the aggregate budget limit for each of the years authorized.  Any additional increase shall be excluded from the determination of equalization assistance.  The school district governing board, however, may levy on the net assessed valuation used for secondary property tax purposes of the property in the school district the additional increase if adopted under subsection E of this section for the period of one year, two years or five through seven ten years as authorized.  If an additional increase is approved as provided in subsection F of this section, the school district governing board may only use revenues derived from the school district's prior year's maintenance and operation fund ending cash balance to fund the additional increase.  If a budget increase was previously authorized and will be in effect for the budget year or budget year and subsequent years, as provided in subsection E or F of this section, the governing board may request a new budget increase as provided in the same subsection under which the prior budget increase was adopted, which shall not exceed the maximum amount permitted allowed under subsection G of this section.  If the voters in the school district authorize the new budget increase amount, the existing budget increase no longer is in effect.  If the voters in the school district do not authorize the budget increase amount, the existing budget increase remains in effect for the time period for which it was authorized.  The maximum additional increase authorized as provided in subsection E or F of this section and the additional increase that is included in the aggregate budget limit is based on the initial proposed percentage of a school district's revenue control limit in future years.  , if the budget increase is authorized for more than one year.  If the additional increase:

1.  Is for two years, the proposed increase in the second year is equal to the initial proposed percentage increase.

2.  Is for five years or more, the proposed increase is equal to the initial proposed percentage increase in the following years of the proposed increase, except that in the next to last year it is two‑thirds of the initial proposed percentage increase and it is one‑third of the initial proposed percentage increase in the last year of the proposed increase.

Q.  If the voters in a school district vote to adopt a budget in excess of the revenue control limit as provided in subsection I or J of this section, any additional increase shall be included in the aggregate budget limit for each of the years authorized.  Any additional increase shall be excluded from the determination of equalization assistance.  The school district governing board, however, may levy on the net assessed valuation used for secondary property tax purposes of the property in the school district the additional increase if adopted under subsection I of this section for the period of one year, two years or five through seven ten years as authorized.  If an additional increase is approved as provided in subsection J of this section, the increase may only be budgeted and expended if sufficient monies are available in the maintenance and operation fund of the school district.  If a budget increase was previously authorized and will be in effect for the budget year or budget year and subsequent years, as provided in subsection I or J of this section, the governing board may request a new budget increase as provided in the same subsection under which the prior budget increase was adopted that does not exceed the maximum amount permitted under subsection K of this section.  If the voters in the school district authorize the new budget increase amount, the existing budget increase no longer is in effect.  If the voters in the school district do not authorize the budget increase amount, the existing budget increase remains in effect for the time period for which it was authorized.  The maximum additional increase authorized as provided in subsection I or J of this section and the additional increase that is included in the aggregate budget limit is based on the initial proposed percentage of a school district's revenue control limit in future years.  , if the budget increase is authorized for more than one year. If the additional increase:

1.  Is for two years, the proposed increase in the second year is equal to the initial proposed percentage increase.

2.  Is for five years or more, the proposed increase is equal to the initial proposed percentage increase in the following years of the proposed increase, except that in the next to last year it is two‑thirds of the initial proposed percentage increase and it is one‑third of the initial proposed percentage increase in the last year of the proposed increase.

R.  If the voters in a school district vote to adopt a budget in excess of district additional assistance as provided in subsection L of this section, any additional increase shall be included in the aggregate budget limit for each of the years authorized.  The additional increase shall be excluded from the determination of equalization assistance.  The school district governing board, however, may levy on the net assessed valuation used for secondary property tax purposes of the property in the school district the additional increase for the period authorized but not to exceed ten years.  For overrides approved by a vote of the qualified electors of the school district at an election held from and after October 31, 1998, the period of the additional increase prescribed in this subsection shall not exceed seven ten years for any capital override election.

S.  If the voters in a school district vote to adopt a budget in excess of district additional assistance as provided in subsection M of this section, any additional increase shall be included in the aggregate budget limit for each of the years authorized.  The additional increase shall be excluded from the determination of equalization assistance.  The school district governing board may only use revenues derived from the school district's prior year's maintenance and operation fund ending cash balance and capital outlay fund ending cash balance to fund the additional increase for the period authorized but not to exceed ten years.  For overrides approved by a vote of the qualified electors of the school district at an election held from and after October 31, 1998, the period of the additional increase prescribed in this subsection shall not exceed seven ten years for any capital override election.

T.  In addition to subsections P and S of this section, from the maintenance and operation fund and capital outlay fund ending cash balances, the school district governing board shall first use any available revenues to reduce its primary tax rate to zero and shall use any remaining revenues to fund the additional increase authorized as provided in subsections F and M of this section.

U.  If the voters in a school district disapprove the proposed budget, the alternate budget that, except for any budget increase authorized by a prior election, does not include an increase in the budget in excess of the amount provided in section 15‑905 shall be adopted by the governing board as provided in section 15‑905.

V.  The governing board may request that any override election be cancelled if any change in chapter 9 of this title changes the amount of the aggregate budget limit as provided in section 15‑905.  The request to cancel the override election shall be made to the county school superintendent at least eighty days prior to before the date of the scheduled override election.

W.  For any election conducted pursuant to subsection L or M of this section:

1.  The ballot shall include the following statement in addition to any other statement required by this section:

The capital improvements that are proposed to be funded through this override election are to exceed the state standards and are in addition to monies provided by the state.

___________ school district is proposing to increase its budget by $__________ to fund capital improvements over and above those funded by the state.  Under the students first capital funding system, _________ school district is entitled to state monies for new construction and renovation of school buildings in accordance with state law.

2.  The ballot shall contain the words "budget increase, yes" and "budget increase, no", and the voter shall signify the voter's desired choice.

3.  At least eighty‑five days before the election, the school district shall submit proposed ballot language to the director of the Arizona legislative council.  The director of the Arizona legislative council shall review the proposed ballot language to determine whether the proposed ballot language complies with this section.  If the director of the Arizona legislative council determines that the proposed ballot language does not comply with this section, the director, within ten calendar days of the receipt of after receiving the proposed ballot language, shall notify the school district of the director's objections, and the school district shall resubmit revised ballot language to the director for approval.

X.  If the voters approve the budget increase pursuant to subsection L or M of this section, the school district shall not use the override proceeds for any purposes other than the proposed capital improvements listed in the informational pamphlet, except that up to ten percent of the override proceeds may be used for general capital expenses, including cost overruns of proposed capital improvements.

Y.  Each school district that currently increases its budget pursuant to this section is required to shall hold a public meeting each year between September 1 and October 31 at which an update of the programs or capital improvements financed through the override is discussed and at which the public is permitted allowed an opportunity to comment and:

1.  If the increase is pursuant to subsection L or M of this section, at a minimum, the update shall include the progress of capital improvements financed through the override, a comparison of the current status and the original projections on the construction of capital improvements, the costs of capital improvements and the costs of capital improvements in progress or completed since the prior meeting and the future capital plans of the school district.  The school district shall include in the public meeting a discussion of the school district's use of state capital aid and voter‑approved bonding in funding capital improvements, if any.

2.  If the increase is pursuant to subsection E, F, I or J of this section, the update shall include at a minimum the amount expended in the previous fiscal year and the amount included in the current budget for each of the purposes listed in the informational pamphlet prescribed by subsection B of this section.

Z.  If a budget in excess of district additional assistance was previously adopted by the voters in a school district and will be in effect for the budget year or budget year and subsequent years, as provided in subsection L or M of this section, the governing board may request an additional budget in excess of district additional assistance.  If the voters in a school district authorize the additional budget in excess of district additional assistance, the existing district additional assistance budget increase remains in effect.

AA.  Notwithstanding any other law, the maximum budget increase that may be authorized pursuant to subsection L or M of this section is ten percent of the school district's revenue control limit.

BB.  If the election is to continue to exceed the revenue control limit and if the proposed override will be fully funded by a continuation of a levy of taxes on the taxable property in the school district, the ballot shall contain the words "budget override continuation, yes" and "budget override continuation, no", and the voter shall signify the voter's desired choice.  The ballot shall also contain the amount of the proposed continuation of the budget increase of the proposed budget over the alternate budget, a statement that the amount of the proposed increase will be based on a percentage of the school district's revenue control limit in future years, if applicable, as provided in subsection P of this section and the following statement:

Any budget increase continuation authorized by this election shall be entirely funded by a levy of taxes on the taxable property in this school district for the year for which adopted and for _______ subsequent years, shall not be realized from monies furnished by the state and shall not be subject to the limitation on taxes specified in article IX, section 18, Constitution of Arizona.  Based on the current net assessed valuation used for secondary property tax purposes, to fund the proposed continuation of the increase in the school district's budget would require an estimated continuation of a tax rate of $___________ dollar per one hundred dollars $100 of assessed valuation used for secondary property tax purposes and is in addition to the school district's tax rate that will be levied to fund the school district's revenue control limit allowed by law.

CC.  If the election is to continue to exceed the revenue control limit as provided in section 15‑482 and if the proposed override will be fully funded by a continuation of a levy of taxes on the taxable property in the school district, the ballot shall contain the words "budget override continuation, yes" and "budget override continuation, no", and the voter shall signify the voter's desired choice.  The ballot shall also contain the amount of the proposed continuation of the budget increase of the proposed budget over the alternate budget, a statement that the amount of the proposed increase will be based on a percentage of the school district's revenue control limit in future years, if applicable, as provided in subsection P of this section and the following statement:

Any budget increase continuation authorized by this election shall be entirely funded by a levy of taxes on the taxable property in this school district for the year for which adopted and for ______ subsequent years, shall not be realized from monies furnished by the state and shall not be subject to the limitation on taxes specified in article IX, section 18, Constitution of Arizona.  Based on the current net assessed valuation used for secondary property tax purposes, to fund the proposed continuation of the increase in the school district's budget would require an estimated continuation of a tax rate of $__________ dollar per one hundred dollars $100 of net assessed valuation used for secondary property tax purposes and is in addition to the school district's tax rate that will be levied to fund the school district's revenue control limit allowed by law. END_STATUTE

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