Arizona-2015-HB2567-Chaptered

House Engrossed

State of Arizona

House of Representatives

Fifty-second Legislature

First Regular Session

2015

CHAPTER 288

HOUSE BILL 2567

AN ACT

Amending Laws 2007, chapter 234, section 5, as amended by Laws 2008, chapter 111, section 9 and Laws 2010, chapter 332, section 29; relating to school district budgets.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Laws 2007, chapter 234, section 5, as amended by Laws 2008, chapter 111, section 9 and Laws 2010, chapter 332, section 29, is amended to read:

Sec. 5. Errors in school district budget calculation; correction

A. Notwithstanding sections 15-905 and 15-915, Arizona Revised Statutes, a school district that miscalculated its fiscal year 2004‑2005 budget shall be required to correct the error over a five-year period beginning in fiscal year 2007-2008 and ending in fiscal year 2011-2012 if each of the following conditions exist:

1. The school district provides evidence to the superintendent of public instruction that the school district's budget for the current year is properly calculated and will not result in any overexpenditures.

2. The total amount of the correction from the maintenance and operations fund that would otherwise be required under section 15-915, Arizona Revised Statutes, is more than two hundred twenty thousand dollars but less than two hundred forty thousand dollars.

3. The total amount of the correction from the unrestricted capital outlay fund that would otherwise be required under section 15-915, Arizona Revised Statutes, is more than three thousand dollars but less than five thousand dollars.

4. The average daily membership of the school district in fiscal year 2004-2005 was more than eight hundred eighty but less than nine hundred forty.

B. Notwithstanding sections 15-905 and 15-915, Arizona Revised Statutes, a school district that miscalculated its budgets during fiscal year 2005-2006 shall correct the error over a six-year period beginning in fiscal year 2007-2008 and ending in fiscal year 2012-2013 if both of the following conditions exist:

1. The department of education erroneously doubled the amount that should have been calculated pursuant to section 15-905, subsection O, Arizona Revised Statutes, and that erroneous action resulted in an overstated general budget limit.

2. The total amount of the correction that would otherwise be required under this section is more than four hundred thousand dollars but less than one million two hundred thousand dollars.

C. Notwithstanding sections 15-905 and 15-915, Arizona Revised Statutes, a school district that miscalculated its budgets during fiscal year 2005-2006 shall be required to correct the error over a five-year period beginning in fiscal year 2007-2008 and ending in fiscal year 2011‑2012 if each of the following conditions exist:

1. The school district reported a total attending average daily membership count of more than one thousand one hundred pupils and less than one thousand two hundred pupils for the 2005-2006 school year in the annual report of the superintendent of public instruction for fiscal year 2005-2006.

2. The total amount of the correction that would otherwise be required under section 15-915, Arizona Revised Statutes, is more than four hundred thousand dollars but less than four hundred fifty thousand dollars.

D. Notwithstanding sections 15-905 and 15-915, Arizona Revised Statutes, a school district that overexpended its budgets during fiscal years 2003-2004, 2004-2005 and 2005-2006 is required to correct these overexpenditures plus any overexpenditures for fiscal year 2006-2007 in installments beginning in fiscal year 2010-2011. The annual installments, including the principal and interest, shall be five per cent in the first, second, third and fourth fiscal years and ten per cent percent in the remaining each fiscal years year. This subsection applies to a school district if each of the following conditions exist:

1. The total amount of the corrections for fiscal years 2003-2004, 2004-2005 and 2005-2006 that would otherwise be required under section 15‑915, Arizona Revised Statutes, is more than three million dollars but less than three million four hundred thousand dollars.

2. The school district did not receive state aid for equalization assistance for education during fiscal year 2005-2006 or fiscal year 2006‑2007.

3. The school district's student count calculated pursuant to section 15-902, Arizona Revised Statutes, during fiscal year 2005-2006 is more than eight hundred but less than nine hundred twenty.

E. In addition to the monies required to be repaid pursuant to subsections A, B, C and D of this section, accrued interest is required to be paid at a rate determined by the superintendent of public instruction.