Senate Engrossed

State of Arizona Senate Fifty-second Legislature First Special Session 2015

SENATE BILL 1001

 

AN ACT

 

amending section 15‑901, Arizona Revised Statutes; amending Laws 2015, chapter 8, section 34; appropriating monies; relating to education finance.

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

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

Section 1.  Section 15-901, Arizona Revised Statutes, is amended to read:

START_STATUTE15-901.  Definitions

A.  In this title, unless the context otherwise requires:

1.  "Average daily membership" means the total enrollment of fractional students and full‑time students, minus withdrawals, of each school day through the first one hundred days or two hundred days in session, as applicable, for the current year.  Withdrawals include students formally withdrawn from schools and students absent for ten consecutive school days, except for excused absences identified by the department of education.  For the purposes of this section, school districts and charter schools shall report student absence data to the department of education at least once every sixty days in session.  For computation purposes, the effective date of withdrawal shall be retroactive to the last day of actual attendance of the student or excused absence.

(a)  "Fractional student" means:

(i)  For common schools, a preschool child who is enrolled in a program for preschool children with disabilities of at least three hundred sixty minutes each week that meets at least two hundred sixteen hours over the minimum number of days or a kindergarten student who is at least five years of age before January 1 of the school year and enrolled in a school kindergarten program that meets at least three hundred fifty‑six hours for a one hundred eighty day school year, or the instructional hours prescribed in this section.  Lunch periods and recess periods may not be included as part of the instructional hours unless the child's individualized education program requires instruction during those periods and the specific reasons for such instruction are fully documented.  In computing the average daily membership, preschool children with disabilities and kindergarten students shall be counted as one‑half of a full‑time student.  For common schools, a part‑time student is a student enrolled for less than the total time for a full‑time student as defined in this section.  A part‑time common school student shall be counted as one‑fourth, one‑half or three‑fourths of a full‑time student if the student is enrolled in an instructional program that is at least one‑fourth, one‑half or three‑fourths of the time a full‑time student is enrolled as defined in subdivision (b) of this paragraph.

(ii)  For high schools, a part‑time student who is enrolled in less than four subjects that count toward graduation as defined by the state board of education, each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty‑three hours a year, or the equivalent, in a recognized high school.  The average daily membership of a part‑time high school student shall be 0.75 if the student is enrolled in an instructional program of three subjects that meet at least five hundred forty hours for a one hundred eighty day school year, or the instructional hours prescribed in this section.  The average daily membership of a part‑time high school student shall be 0.5 if the student is enrolled in an instructional program of two subjects that meet at least three hundred sixty hours for a one hundred eighty day school year, or the instructional hours prescribed in this section.  The average daily membership of a part‑time high school student shall be 0.25 if the student is enrolled in an instructional program of one subject that meets at least one hundred eighty hours for a one hundred eighty day school year, or the instructional hours prescribed in this section.

(b)  "Full‑time student" means:

(i)  For common schools, a student who is at least six years of age before January 1 of a school year, who has not graduated from the highest grade taught in the school district and who is regularly enrolled in a course of study required by the state board of education.  First, second and third grade students or ungraded group B children with disabilities who are at least five, but under six, years of age by September 1 must be enrolled in an instructional program that meets for a total of at least seven hundred twelve hours for a one hundred eighty day school year, or the instructional hours prescribed in this section.  Fourth, fifth and sixth grade students must be enrolled in an instructional program that meets for a total of at least eight hundred ninety hours for a one hundred eighty day school year, or the instructional hours prescribed in this section.  Seventh and eighth grade students must be enrolled in an instructional program that meets for at least one thousand hours.  Lunch periods and recess periods may not be included as part of the instructional hours unless the student is a child with a disability and the child's individualized education program requires instruction during those periods and the specific reasons for such instruction are fully documented.

(ii)  For high schools, a student not graduated from the highest grade taught in the school district and enrolled in at least an instructional program of four or more subjects that count toward graduation as defined by the state board of education, each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty‑three hours a year, or the equivalent, that meets for a total of at least seven hundred twenty hours for a one hundred eighty day school year, or the instructional hours prescribed in this section in a recognized high school.  A full‑time student shall not be counted more than once for computation of average daily membership.  The average daily membership of a full-time high school student shall be 1.0 if the student is enrolled in at least four subjects that meet at least seven hundred twenty hours for a one hundred eighty day school year, or the equivalent instructional hours prescribed in this section.

(iii)  If a child who has not reached five years of age before September 1 of the current school year is admitted to kindergarten and repeats kindergarten in the following school year, a school district or charter school is not eligible to receive basic state aid on behalf of that child during the child's second year of kindergarten.  If a child who has not reached five years of age before September 1 of the current school year is admitted to kindergarten but does not remain enrolled, a school district or charter school may receive a portion of basic state aid on behalf of that child in the subsequent year.  A school district or charter school may charge tuition for any child who is ineligible for basic state aid pursuant to this item.

(iv)  Except as otherwise provided by law, for a full‑time high school student who is concurrently enrolled in two school districts or two charter schools, the average daily membership shall not exceed 1.0.

(v)  Except as otherwise provided by law, for any student who is concurrently enrolled in a school district and a charter school, the average daily membership shall be apportioned between the school district and the charter school and shall not exceed 1.0.  The apportionment shall be based on the percentage of total time that the student is enrolled in or in attendance at the school district and the charter school.

(vi)  Except as otherwise provided by law, for any student who is concurrently enrolled, pursuant to section 15‑808, in a school district and Arizona online instruction or a charter school and Arizona online instruction, the average daily membership shall be apportioned between the school district and Arizona online instruction or the charter school and Arizona online instruction and shall not exceed 1.0.  The apportionment shall be based on the percentage of total time that the student is enrolled in or in attendance at the school district and Arizona online instruction or the charter school and Arizona online instruction.

(vii)  For homebound or hospitalized, a student receiving at least four hours of instruction per week.

2.  "Budget year" means the fiscal year for which the school district is budgeting and that immediately follows the current year.

3.  "Common school district" means a political subdivision of this state offering instruction to students in programs for preschool children with disabilities and kindergarten programs and either:

(a)  Grades one through eight.

(b)  Grades one through nine pursuant to section 15‑447.01.

4.  "Current year" means the fiscal year in which a school district is operating.

5.  "Daily attendance" means:

(a)  For common schools, days in which a pupil:

(i)  Of a kindergarten program or ungraded, but not group B children with disabilities, and at least five, but under six, years of age by September 1 attends at least three‑quarters of the instructional time scheduled for the day.  If the total instruction time scheduled for the year is at least three hundred fifty‑six hours but is less than seven hundred twelve hours, such attendance shall be counted as one‑half day of attendance. If the instructional time scheduled for the year is at least six hundred ninety‑two hours, "daily attendance" means days in which a pupil attends at least one‑half of the instructional time scheduled for the day. Such attendance shall be counted as one‑half day of attendance.

(ii)  Of the first, second or third grades attends more than three‑quarters of the instructional time scheduled for the day.

(iii)  Of the fourth, fifth or sixth grades attends more than three‑quarters of the instructional time scheduled for the day, except as provided in section 15‑797.

(iv)  Of the seventh or eighth grades attends more than three‑quarters of the instructional time scheduled for the day, except as provided in section 15‑797.

(b)  For common schools, the attendance of a pupil at three‑quarters or less of the instructional time scheduled for the day shall be counted as follows, except as provided in section 15‑797 and except that attendance for a fractional student shall not exceed the pupil's fractional membership:

(i)  If attendance for all pupils in the school is based on quarter days, the attendance of a pupil shall be counted as one‑fourth of a day's attendance for each one‑fourth of full‑time instructional time attended.

(ii)  If attendance for all pupils in the school is based on half days, the attendance of at least three‑quarters of the instructional time scheduled for the day shall be counted as a full day's attendance and attendance at a minimum of one‑half but less than three‑quarters of the instructional time scheduled for the day equals one‑half day of attendance.

(c)  For common schools, the attendance of a preschool child with disabilities shall be counted as one‑fourth day's attendance for each thirty‑six minutes of attendance not including lunch periods and recess periods, except as provided in paragraph 1, subdivision (a), item (i) of this subsection for children with disabilities up to a maximum of three hundred sixty minutes each week.

(d)  For high schools, the attendance of a pupil shall not be counted as a full day unless the pupil is actually and physically in attendance and enrolled in and carrying four subjects, each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty‑three hours a year, or the equivalent, that count toward graduation in a recognized high school except as provided in section 15‑797 and subdivision (e) of this paragraph.  Attendance of a pupil carrying less than the load prescribed shall be prorated.

(e)  For high schools, the attendance of a pupil may be counted as one‑fourth of a day's attendance for each sixty minutes of instructional time in a subject that counts toward graduation, except that attendance for a pupil shall not exceed the pupil's full or fractional membership.

(f)  For homebound or hospitalized, a full day of attendance may be counted for each day during a week in which the student receives at least four hours of instruction.

(g)  For school districts that maintain school for an approved year‑round school year operation, attendance shall be based on a computation, as prescribed by the superintendent of public instruction, of the one hundred eighty days' equivalency or two hundred days' equivalency, as applicable, of instructional time as approved by the superintendent of public instruction during which each pupil is enrolled.

6.  "Daily route mileage" means the sum of:

(a)  The total number of miles driven daily by all buses of a school district while transporting eligible students from their residence to the school of attendance and from the school of attendance to their residence on scheduled routes approved by the superintendent of public instruction.

(b)  The total number of miles driven daily on routes approved by the superintendent of public instruction for which a private party, a political subdivision or a common or a contract carrier is reimbursed for bringing an eligible student from the place of his residence to a school transportation pickup point or to the school of attendance and from the school transportation scheduled return point or from the school of attendance to his residence.  Daily route mileage includes the total number of miles necessary to drive to transport eligible students from and to their residence as provided in this paragraph.

7.  "District support level" means the base support level plus the transportation support level.

8.  "Eligible students" means:

(a)  Students who are transported by or for a school district and who qualify as full‑time students or fractional students, except students for whom transportation is paid by another school district or a county school superintendent, and:

(i)  For common school students, whose place of actual residence within the school district is more than one mile from the school facility of attendance or students who are admitted pursuant to section 15‑816.01 and who meet the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1785) for free or reduced price lunches and whose actual place of residence outside the school district boundaries is more than one mile from the school facility of attendance.

(ii)  For high school students, whose place of actual residence within the school district is more than one and one‑half miles from the school facility of attendance or students who are admitted pursuant to section 15‑816.01 and who meet the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1785) for free or reduced price lunches and whose actual place of residence outside the school district boundaries is more than one and one‑half miles from the school facility of attendance.

(b)  Kindergarten students, for purposes of computing the number of eligible students under subdivision (a), item (i) of this paragraph, shall be counted as full‑time students, notwithstanding any other provision of law.

(c)  Children with disabilities, as defined by section 15‑761, who are transported by or for the school district or who are admitted pursuant to chapter 8, article 1.1 of this title and who qualify as full‑time students or fractional students regardless of location or residence within the school district or children with disabilities whose transportation is required by the pupil's individualized education program.

(d)  Students whose residence is outside the school district and who are transported within the school district on the same basis as students who reside in the school district.

9.  "Enrolled" or "enrollment" means when a pupil is currently registered in the school district.

10.  "GDP price deflator" means the average of the four implicit price deflators for the gross domestic product reported by the United States department of commerce for the four quarters of the calendar year.

11.  "High school district" means a political subdivision of this state offering instruction to students for grades nine through twelve or that portion of the budget of a common school district that is allocated to teaching high school subjects with permission of the state board of education.

12.  "Revenue control limit" means the base revenue control limit plus the transportation revenue control limit.

13.  "Student count" means:

(a)  Through June 30, 2016, average daily membership as prescribed in this subsection for the fiscal year before the current year, except that for the purpose of budget preparation student count means average daily membership as prescribed in this subsection for the current year.

(b)  Beginning July 1, 2016, average daily membership as prescribed in this subsection for the current year.

14.  "Submit electronically" means submitted in a format and in a manner prescribed by the department of education.

15.  "Total bus mileage" means the total number of miles driven by all buses of a school district during the school year.

16.  "Total students transported" means all eligible students transported from their place of residence to a school transportation pickup point or to the school of attendance and from the school of attendance or from the school transportation scheduled return point to their place of residence.

17.  "Unified school district" means a political subdivision of the state offering instruction to students in programs for preschool children with disabilities and kindergarten programs and grades one through twelve.

B.  In this title, unless the context otherwise requires:

1.  "Base" means the revenue level per student count specified by the legislature.

2.  "Base level" means the following amounts plus the percentage increases to the base level as provided in sections 15‑902.04, 15‑918.04, 15‑919.04 and 15‑952, except that if a school district or charter school is eligible for an increase in the base level as provided in two or more of these sections, the base level amount shall be calculated by compounding rather than adding the sum of one plus the percentage of the increase from those different sections:

(a)  For fiscal year 2007‑2008, three thousand two hundred twenty‑six dollars eighty-eight cents.

(b)  For fiscal year 2008‑2009, three thousand two hundred ninety‑one dollars forty-two cents.

(c)  For fiscal years 2009‑2010, 2010‑2011, 2011‑2012 and 2012‑2013, three thousand two hundred sixty‑seven dollars seventy‑two cents.

(d)  For fiscal year 2013‑2014, three thousand three hundred twenty‑six dollars fifty-four cents.

(e)  For fiscal year 2014‑2015, three thousand three hundred seventy‑three dollars eleven cents.

(f)  For fiscal year 2015‑2016, three thousand four hundred twenty‑six dollars seventy-four cents three thousand six hundred dollars zero cents.

3.  "Base revenue control limit" means the base revenue control limit computed as provided in section 15‑944.

4.  "Base support level" means the base support level as provided in section 15‑943.

5.  "Certified teacher" means a person who is certified as a teacher pursuant to the rules adopted by the state board of education, who renders direct and personal services to school children in the form of instruction related to the school district's educational course of study and who is paid from the maintenance and operation section of the budget.

6.  "DD" means programs for children with developmental delays who are at least three years of age but under ten years of age.  A preschool child who is categorized under this paragraph is not eligible to receive funding pursuant to section 15‑943, paragraph 2, subdivision (b).

7.  "ED, MIID, SLD, SLI and OHI" means programs for children with emotional disabilities, mild intellectual disabilities, a specific learning disability, a speech/language impairment and other health impairments.  A preschool child who is categorized as SLI under this paragraph is not eligible to receive funding pursuant to section 15‑943, paragraph 2, subdivision (b).

8.  "ED‑P" means programs for children with emotional disabilities who are enrolled in private special education programs as prescribed in section 15‑765, subsection D, paragraph 1 or in an intensive school district program as provided in section 15‑765, subsection D, paragraph 2.

9.  "ELL" means English learners who do not speak English or whose native language is not English, who are not currently able to perform ordinary classroom work in English and who are enrolled in an English language education program pursuant to sections 15‑751, 15‑752 and 15‑753.

10.  "Full‑time equivalent certified teacher" or "FTE certified teacher" means for a certified teacher the following:

(a)  If employed full time as defined in section 15‑501, 1.00.

(b)  If employed less than full time, multiply 1.00 by the percentage of a full school day, or its equivalent, or a full class load, or its equivalent, for which the teacher is employed as determined by the governing board.

11.  "Group A" means educational programs for career exploration, a specific learning disability, an emotional disability, a mild intellectual disability, remedial education, a speech/language impairment, developmental delay, homebound, bilingual, other health impairments and gifted pupils.

12.  "Group B" means educational improvements for pupils in kindergarten programs and grades one through three, educational programs for autism, a hearing impairment, a moderate intellectual disability, multiple disabilities, multiple disabilities with severe sensory impairment, orthopedic impairments, preschool severe delay, a severe intellectual disability and emotional disabilities for school age pupils enrolled in private special education programs or in school district programs for children with severe disabilities or visual impairment and English learners enrolled in a program to promote English language proficiency pursuant to section 15‑752.

13.  "HI" means programs for pupils with hearing impairment.

14.  "Homebound" or "hospitalized" means a pupil who is capable of profiting from academic instruction but is unable to attend school due to illness, disease, accident or other health conditions, who has been examined by a competent medical doctor and who is certified by that doctor as being unable to attend regular classes for a period of not less than three school months or a pupil who is capable of profiting from academic instruction but is unable to attend school regularly due to chronic or acute health problems, who has been examined by a competent medical doctor and who is certified by that doctor as being unable to attend regular classes for intermittent periods of time totaling three school months during a school year.  The medical certification shall state the general medical condition, such as illness, disease or chronic health condition, that is the reason that the pupil is unable to attend school.  Homebound or hospitalized includes a student who is unable to attend school for a period of less than three months due to a pregnancy if a competent medical doctor, after an examination, certifies that the student is unable to attend regular classes due to risk to the pregnancy or to the student's health.

15.  "K‑3" means kindergarten programs and grades one through three.

16.  "K‑3 reading" means reading programs for pupils in kindergarten programs and grades one, two and three.

17.  "MD‑R, A‑R and SID‑R" means resource programs for pupils with multiple disabilities, autism and severe intellectual disability.

18.  "MD‑SC, A‑SC and SID‑SC" means self‑contained programs for pupils with multiple disabilities, autism and severe intellectual disability.

19.  "MD‑SSI" means a program for pupils with multiple disabilities with severe sensory impairment.

20.  "MOID" means programs for pupils with moderate intellectual disability.

21.  "OI‑R" means a resource program for pupils with orthopedic impairments.

22.  "OI‑SC" means a self‑contained program for pupils with orthopedic impairments.

23.  "PSD" means preschool programs for children with disabilities as provided in section 15‑771.

24.  "P‑SD" means programs for children who meet the definition of preschool severe delay as provided in section 15‑771.

25.  "Qualifying tax rate" means the qualifying tax rate specified in section 15‑971 applied to the assessed valuation used for primary property taxes.

26.  "Small isolated school district" means a school district that meets all of the following:

(a)  Has a student count of fewer than six hundred in kindergarten programs and grades one through eight or grades nine through twelve.

(b)  Contains no school that is fewer than thirty miles by the most reasonable route from another school, or, if road conditions and terrain make the driving slow or hazardous, fifteen miles from another school that teaches one or more of the same grades and is operated by another school district in this state.

(c)  Is designated as a small isolated school district by the superintendent of public instruction.

27.  "Small school district" means a school district that meets all of the following:

(a)  Has a student count of fewer than six hundred in kindergarten programs and grades one through eight or grades nine through twelve.

(b)  Contains at least one school that is fewer than thirty miles by the most reasonable route from another school that teaches one or more of the same grades and is operated by another school district in this state.

(c)  Is designated as a small school district by the superintendent of public instruction.

28.  "Transportation revenue control limit" means the transportation revenue control limit computed as prescribed in section 15‑946.

29.  "Transportation support level" means the support level for pupil transportation operating expenses as provided in section 15‑945.

30.  "VI" means programs for pupils with visual impairments.

31.  "Voc. Ed." means career and technical education and vocational education programs, as defined in section 15‑781. END_STATUTE

Sec. 2.  Laws 2015, chapter 8, section 34 is amended to read:

Sec. 34.  SUPERINTENDENT OF PUBLIC INSTRUCTION

                                                    2015-16

FTE positions                               164.9

Operating lump sum appropriation   $    8,802,100

Fund sources:

State general fund                 $    8,263,800

Teacher certification fund                138,200

Department of education empowerment

  scholarship account fund                400,100

The operating lump sum appropriation includes $683,900 and 8.5 FTE positions for average daily membership auditing and $200,000 and 2 FTE positions for information technology security services.

The appropriation from the department of education empowerment scholarship account fund includes $100,000 in funding for one-time information technology changes.

Basic state aid                   $2,441,592,500  $2,690,421,900

Fund sources:

State general fund                 $2,394,233,000  $2,470,981,400

Permanent state school fund            47,359,500     219,440,500

The above appropriation provides basic state support to school districts for maintenance and operations funding as provided by section 15‑973, Arizona Revised Statutes, and includes an estimated $47,359,500 $219,440,500 in expendable income derived from the permanent state school fund and from state trust lands pursuant to section 37-521, subsection B, Arizona Revised Statutes, for fiscal year 2015-2016.

Receipts derived from the permanent state school fund and any other nonstate general fund revenue source that is dedicated to fund basic state aid shall be expended, whenever possible, before expenditure of state general fund monies.

Except as required by section 37-521, Arizona Revised Statutes, all monies received during the fiscal year from national forests, interest collected on deferred payments on the purchase of state lands, the income from the investment of permanent funds as prescribed by the enabling act and the Constitution of Arizona and all monies received by the superintendent of public instruction from whatever source, except monies received pursuant to sections 15‑237 and 15-531, Arizona Revised Statutes, when paid into the state treasury are appropriated for apportionment to the various counties in accordance with law.  An expenditure may not be made except as specifically authorized above.

Additional inflation                   74,394,000

The department of education shall allocate the $74,394,000 amount appropriated through this line item to school districts and charter schools in fiscal year 2015-2016 in the same manner that it would allocate the monies if the monies were for an additional increase of $54.31 in the base level defined for fiscal year 2015-2016 in section 15-901, subsection B, paragraph 2, Arizona Revised Statutes, and increase budget limits accordingly.  The department shall also increase the budget limits of a school district that is not eligible to receive basic state aid funding for fiscal year 2015‑2016 by the amount that the district's budget limits would be increased under this line item if the school district was eligible to receive basic state aid funding for fiscal year 2015‑2016.  The additional inflation amount is not for an increase in the base level as defined in section 15-901, Arizona Revised Statutes.

K‑3 reading                            39,917,300

The appropriated amount is for funding costs of the K-3 reading weight established in section 15-943, Arizona Revised Statutes.

additional funding                     50,000,000

The department of education shall allocate the appropriated amount to school districts and charter schools on a pro rata basis using the weighted student count for the school district or charter school for the fiscal year pursuant to section 15‑943, paragraph 2, subdivision (a), Arizona Revised Statutes, and increase the budget limits pursuant to section 15‑947, Arizona Revised Statutes, accordingly.  For the purposes of this paragraph, the weighted student count for a school district that serves as the district of attendance for nonresident pupils shall be increased to include nonresident pupils who attend school in the school district.  A School district may budget the allocation that the school district receives pursuant to this paragraph in either the school district's maintenance and operation fund or unrestricted capital outlay fund.

Additional state aid –

  homeowner's rebate                  359,303,700

Additional state aid –

  1 percent cap                         7,380,300

Special education fund                 32,242,100

Other state aid to districts              983,900

Accountability and achievement

  testing                            $ 16,423,600

Fund sources:

State general fund                   $  9,423,600

Proposition 301 fund                    7,000,000

Before making any changes to the achievement testing program that will increase program costs, the state board of education shall submit the estimated fiscal impact of those changes to the joint legislative budget committee for review.

Adult education                         4,500,000

Alternative teacher development

  program                                 500,000

Arizona structured English

  immersion fund                        4,960,400

English learner administration          6,516,800

The department of education shall use the appropriated amount to provide English language acquisition services for the purposes of section 15‑756.07, Arizona Revised Statutes, and for the costs of providing English language proficiency assessments, scoring and ancillary materials as prescribed by the department of education to school districts and charter schools for the purposes of title 15, chapter 7, article 3.1, Arizona Revised Statutes.  The department of education may use a portion of the appropriated amount to hire staff or contract with a third party to carry out the purposes of section 15‑756.07, Arizona Revised Statutes.  Notwithstanding section 41‑192, Arizona Revised Statutes, the superintendent of public instruction also may use a portion of the appropriated amount to contract with one or more private attorneys to provide legal services in connection with the case of Flores v. State of Arizona, No. CIV 92-596-TUC-RCC.

JTED soft capital and equipment      $  1,000,000

The department of education shall distribute the appropriated amount to joint technical education districts with fewer than two thousand average daily membership pupils for soft capital and equipment expenses.  The appropriated amount shall be allocated on a pro rata basis based on the average daily membership of eligible joint technical education districts.

School safety program                   3,646,500

State block grant for vocational

  education                            11,576,300

Teacher certification                $  1,842,500

Fund sources:

Teacher certification fund           $  1,842,500

Total appropriation ‑ superintendent

of public instruction              ______________

                                   $3,015,582,000 $3,240,017,400

Fund sources:

State general fund                  $2,958,841,700 $3,011,196,100

Proposition 301 fund                    7,000,000

Permanent state school fund             47,359,500    219,440,500

Teacher certification fund              1,980,700

Department of education empowerment

  scholarship account fund                400,100

The department shall provide an updated report on its budget status every three months for the first half of each fiscal year and every month thereafter to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees, the director of the joint legislative budget committee and the director of the governor's office of strategic planning and budgeting.  Each report shall include, at a minimum, the department's current funding surplus or shortfall projections for basic state aid and other major formula-based programs and is due thirty days after the end of the applicable reporting period.

Within fifteen days after each apportionment of state aid that occurs pursuant to section 15-973, subsection B, Arizona Revised Statutes, the department shall post on its website the amount of state aid apportioned to each recipient and the underlying data.

Sec. 3.  Budget balance carryforward from fiscal year 2015‑2016 into fiscal year 2016‑2017

In addition to any budget balance carryforward authorized by section 15‑943.01, Arizona Revised Statutes, a school district or other entity that receives additional funding or budget capacity in fiscal year 2015‑2016 as a result of this act may carry forward any portion of that funding or budget capacity into fiscal year 2016‑2017.  The amount budgeted as the budget balance carryforward is specifically exempt from the revenue control limit.

Sec. 4.  Employee compensation increases in fiscal years 2015‑2016 and 2016‑2017

A school district or other entity that receives additional funding or budget capacity in fiscal years 2015-2016 and 2016‑2017 as a result of this act may use the additional monies for increased employee compensation in fiscal years 2015-2016 and 2016‑2017.

Sec. 5.  School district budget deadlines for fiscal year 2015‑2016

Notwithstanding section 15‑905, Arizona Revised Statutes, for fiscal year 2015‑2016, any deadline that is currently specified by law as May 15 for the adoption or adjustment of school district budgets shall be extended to June 30.

Sec. 6.  Appropriations; department of education; additional funding for school districts and charter schools

A.  The sum of $50,000,000 is appropriated annually from the state general fund to the department of education in fiscal years 2016‑2017 through 2019‑2020 for additional funding for school districts and charter schools.  A school district may budget the monies that it receives pursuant to this subsection in either the school district's maintenance and operation fund or unrestricted capital outlay fund.

B.  The sum of $75,000,000 is appropriated annually from the state general fund to the department of education in fiscal years 2020‑2021 through 2024‑2025 for additional funding for school districts and charter schools.  A school district may budget the monies that it receives pursuant to this subsection in either the school district's maintenance and operation fund or unrestricted capital outlay fund.

C.  The department of education shall allocate the appropriated amount in subsections A and B of this section to school districts and charter schools on a pro rata basis using the weighted student count for the school district or charter school for the fiscal year pursuant to section 15‑943, paragraph 2, subdivision (a), Arizona Revised Statutes, and increase the budget limits pursuant to section 15‑947, Arizona Revised Statutes, accordingly.  For the purposes of this subsection, the weighted student count for a school district that serves as the district of attendance for nonresident pupils shall be increased to include nonresident pupils who attend school in the school district.

Sec. 7.  Intent

This act and the terms of House concurrent resolution 2001, fifty‑second legislature, first special session, are intended to fully satisfy the requirements of section 15‑901.01, Arizona Revised Statutes.

Sec. 8.  Retroactivity

This act applies retroactively to from and after June 30, 2015.

Sec. 9.  Legislative findings

The legislature finds that:

1.  It is in the best interests of the State of Arizona to finally resolve the litigation in Cave Creek Unified School District, et al. v. Jeff DeWit, et al., Maricopa County Superior Court Case No. CV2010‑017113, and all appellate proceedings related thereto.

2.  None of the parties to the litigation have acted in bad faith, nor concede nor admit legal error, wrongdoing or illegal action in connection with the litigation.

3.  Including the final judgment in the litigation, this act and the terms of House Concurrent Resolution 2001, fifty‑second legislature, first special session, fully and finally resolve, satisfy and conclude all claims, causes of action, findings, rulings and judgments in the litigation.

Sec. 10.  Conditional enactment

This act does not become effective unless the Constitution of Arizona is amended as prescribed in House concurrent resolution 2001, fifty‑second legislature, first special session, by vote of the people at the special election conducted on May 17, 2016.