Bill Text: AZ SB1092 | 2014 | Fifty-first Legislature 2nd Regular | Engrossed
Bill Title: School finance; funding system
Spectrum: Partisan Bill (Republican 10-0)
Status: (Engrossed - Dead) 2014-03-05 - sit Cow Action: [SB1092 Detail]
Download: Arizona-2014-SB1092-Engrossed.html
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Senate Engrossed |
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State of Arizona Senate Fifty-first Legislature Second Regular Session 2014
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SENATE BILL 1092 |
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AN ACT
amending Title 15, chapter 9, article 5, Arizona Revised Statutes, by adding section 15-977.01; amending sections 15‑991.01 and 15‑992, Arizona Revised Statutes; relating to school finance.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 15, chapter 9, article 5, Arizona Revised Statutes, is amended by adding section 15-977.01, to read:
15-977.01. Arizona K-12 education fund
The Arizona K-12 education fund is established consisting of monies generated by the qualifying tax rate determined pursuant to section 41-1276, subsection B and the state equalization assistance property tax rate prescribed in section 15‑994 and monies appropriated from the state general fund for basic state aid and additional state aid for schools. The department of education shall administer the fund. Monies in the fund are continuously appropriated, are exempt from the provisions of section 35-190 relating to lapsing of appropriations and are annually distributed to school districts in the form of basic state aid and additional state aid.
Sec. 2. Section 15-991.01, Arizona Revised Statutes, is amended to read:
15-991.01. Tax levy for property not located in a school district
A. The board of supervisors of each county, at the time of levying other taxes, shall annually levy a tax on property that is not located in a school district. The tax levy shall be at a rate equal to one‑half the qualifying tax rate prescribed in section 15‑971, subsection B, paragraph 2, per one hundred dollars of assessed valuation used for primary property taxes. The tax shall be levied and collected in the same manner as general county taxes on the property. The tax levy provided for in this section is not subject to title 42, chapter 17, articles 2 and 3. The monies received pursuant to this section shall be transmitted by the county treasurer to the state treasurer to be deposited in the state general fund to aid in school financial assistance Arizona K‑12 education fund established by section 15‑977.01.
B. The reduction in taxes prescribed in section 15‑972 applies to taxes levied pursuant to this section on residential property, except that the state shall not make the payments prescribed in section 15‑972, subsection H for this reduction in taxes.
C. This section does not apply to territory that was previously unorganized but that is currently part of a school district that is joined pursuant to section 15‑445.
Sec. 3. Section 15-992, Arizona Revised Statutes, is amended to read:
15-992. School district tax levy; additional tax in districts ineligible for equalization assistance; definition
A. The board of supervisors of each county shall annually levy, at the time of levying other taxes, levy school district taxes on the property in any school district in which additional amounts are required, which shall be at rates sufficient to provide the additional amounts. No delinquency factor for estimated uncollected taxes may be included in the computation of the primary tax rate for school district taxes. No local property taxes may be levied for any deficit in the classroom site fund. The taxes shall be added to and collected in the same manner as other county taxes on the property within the school district. The amount of the school district taxes levied upon on the property in a particular school district shall be paid into the school fund of such the school district, and the county treasurer shall transmit the monies that are generated by the qualifying tax rate determined pursuant to section 41‑1276 and the state equalization assistance property tax levy pursuant to section 15‑994 to the state treasurer for deposit in the Arizona K‑12 education fund established by section 15‑977.01.
B. At the same time of levying taxes as provided in subsection A of this section, the county board of supervisors shall annually levy an additional tax in each school district that is not eligible for equalization assistance as provided in section 15‑971 in an amount determined as follows:
1. Determine the levy that would be produced by fifty per cent of the applicable qualifying tax rate, prescribed in section 15‑971, subsection B, per one hundred dollars assessed valuation.
2. Subtract the amount determined in section 15‑971, subsection A from the levy determined in paragraph 1 of this subsection. This difference is the additional amount levied or collected as voluntary contributions pursuant to title 48, chapter 1, article 8, except that if the difference is zero or is a negative number, there shall be no levy.
C. Monies collected pursuant to subsection B of this section shall be transmitted to the state treasurer for deposit in the state general fund to aid in school financial assistance Arizona K‑12 education fund established by section 15‑977.01.
D. The additional tax prescribed in subsection B of this section is considered to be primary property tax for purposes of section 15‑972, subsection B, except that this state is not required to make the payments prescribed in section 15‑972, subsection H for these reductions in taxes.
E. For the purposes of this section, "assessed valuation" includes the values used to determine voluntary contributions collected pursuant to title 9, chapter 4, article 3 and title 48, chapter 1, article 8.
Sec. 4. Intent
It is the intent of the legislature to:
1. Simplify and improve the current system for funding elementary and secondary education in this state.
2. Reduce restrictions on the use of monies by school districts.
3. Eliminate disparities in per pupil funding.
4. Increase total funding for pupils who enroll in school districts in this state.
5. Establish a new K-12 education fund for the purpose of providing transparency in education funding.
Sec. 5. Conforming legislation
The legislative council staff shall prepare proposed legislation conforming the Arizona Revised Statutes to the provisions of this act for consideration in the fifty‑second legislature, first regular session.
