Bill Text: AZ SB1174 | 2017 | Fifty-third Legislature 1st Regular | Introduced
Bill Title: Schools; desegregation expenses; special override
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-02-09 - Senate miscellaneous motion: Motion to suspend a portion of Senate Rule 8A-3 for the purpose of returning Senate Bill 1174 to the calendar of the Committee of the Whole. Motion carried. [SB1174 Detail]
Download: Arizona-2017-SB1174-Introduced.html
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REFERENCE TITLE: schools; desegregation expenses; special override |
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State of Arizona Senate Fifty-third Legislature First Regular Session 2017
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SB 1174 |
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Introduced by Senator Lesko
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AN ACT
amending Title 15, chapter 4, article 4, Arizona Revised Statutes, by adding section 15-483; amending section 15‑910, 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 4, article 4, Arizona Revised Statutes, is amended by adding section 15-483, to read:
15-483. Special override election for desegregation expenses
A. Beginning in fiscal year 2019-2020, an additional budget increase may be requested and authorized as provided in this section for a school district that was previously authorized to budget for expenses that were exempt in whole or in part from the revenue control limit related to compliance with a previous court order of desegregation or administrative agreement with the United States department of education office for civil rights pursuant to section 15-910.
B. The maximum amount of the budget increase requested and authorized pursuant to this section may not exceed the limit prescribed by section 15-910, subsection K, paragraph 7 for each fiscal year. The amount approved pursuant to this section is in addition to any other override pursuant to section 15-481 or 15-482.
C. A school district governing board shall order the election pursuant to this section in the same manner provided in section 15-481, subsections A through D. The informational report shall contain the same information required by section 15-481, subsection B and the following information:
1. The year of the original federal court order or administrative agreement that allows the school district to budget for expenses related to section 15-910, subsection G.
2. A summary of the information required by section 15-910, subsection J and the school district's plan to remediate alleged or proven civil rights violations.
D. 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 "desegregation/OCR tax, yes" and "desegregation/OCR tax, no", and the voter shall signify the voter's desired choice. The ballot shall also contain the amount of the proposed budget with the proposed tax compared to the alternate budget, a statement that the amount of the proposed tax will be based on a percentage of the school district's revenue control limit in future years, if applicable, and the following statement:
Any budget increase authorized by this election will 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, will not be realized from monies furnished by the state and is not subject to the limit on taxes specified in article IX, section 18, Constitution of Arizona. Based on the current net assessed valuation used for secondary property tax purposes, funding the proposed increase in the school district's budget would require an estimated tax rate of ___________ dollar per one hundred dollars 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.
E. 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 compared to the alternate budget.
2. The following statement:
Any budget increase authorized by this election will 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 will not be realized from monies furnished by the state.
F. The maximum period of an override authorized pursuant to this section is seven years. In the second to last year of the original budget increase or the renewed budget increase, whichever is applicable, the budget increase is two-thirds of the initial proposed percentage increase and in the last year of the original budget increase or the renewed budget increase, whichever is applicable, the budget increase is one-third of the initial proposed percentage increase. 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 pursuant to this subsection is the same as prescribed by subsection B of this section.
G. Budgeted expenditures approved pursuant to this section shall be made in accordance with section 15-910.
Sec. 2. Section 15-910, Arizona Revised Statutes, is amended to read:
15-910. School district budgets; excess utility costs; desegregation costs; tuition costs for bond issues; costs for registering warrants; report
A. The governing board may budget for the district's excess utility costs that are specifically exempt from the district's revenue control limit. If approved by the qualified electors voting at a statewide general election, the exemption from the revenue control limit under this subsection expires at the end of the 2008‑2009 budget year. The uniform system of financial records shall specify expenditure items allowable as excess utility costs, which are limited to direct operational costs of heating, cooling, water and electricity, telephone communications and sanitation fees. The department of education and the auditor general shall include in the maintenance and operation section of the budget format, as provided in section 15‑903, a separate line for utility expenditures and a special excess utility cost category. The special excess utility cost category shall contain budgeted expenditures for excess utility costs, determined as follows:
1. Determine the lesser of the total budgeted or total actual utility expenditures for fiscal year 1984‑1985.
2. Multiply the amount in paragraph 1 of this subsection by the total percentage increase or decrease in the revenue control limit and the capital outlay revenue limit for the budget year over the revenue control limit and the capital outlay revenue limit for fiscal year 1984‑1985 excluding monies available from a teacher compensation program provided for in section 15‑952.
3. The sum of the amounts in paragraphs 1 and 2 of this subsection is the amount budgeted in the utility expenditure line.
4. Additional expenditures for utilities are budgeted in the excess utility cost category.
B. The governing board shall apply the same percentage increase or decrease allowed in the revenue control limit and the capital outlay revenue limit as provided in section 15‑905, subsection E to the utility expenditure line of the budget.
C. The governing board may expend from the excess utility cost category only after it has expended for utility purposes the full amount budgeted in the utility expenditure line of the budget.
D. The governing board, after notice is given and a public meeting is held as provided in section 15‑905, subsection D, may revise at any time before May 15 the amount budgeted in the excess utility cost category for the current year. Not later than May 18, the budget as revised shall be submitted electronically to the superintendent of public instruction.
E. If the revised excess utility cost category results in an expenditure of monies in excess of school district revenues for the current year, the county school superintendent shall include within the revenue estimate for the budget year monies necessary to meet the liabilities incurred by the school district in the current year in excess of revenues received for the current year.
F. If a school district receives a refund of utility expenditures or a rebate on energy saving devices or services, the refund or rebate shall be applied against utility expenditures for the current year as a reduction of the expenditures, except that the reduction of expenditures shall not exceed the amount of actual utility expenditures.
G. The governing board may budget for expenses of complying with or continuing to implement activities that were required or permitted by a court order of desegregation or administrative agreement with the United States department of education office for civil rights directed toward remediating alleged or proven racial discrimination that are specifically exempt in whole or in part from the revenue control limit and district additional assistance. This exemption applies only to expenses incurred for activities that are begun before the termination of the court order or administrative agreement. If a district is levying a primary property tax on February 23, 2006 and using those monies to administer an English language learner program to remedy alleged or proven discrimination under title VI of the civil rights act of 1964 (42 United States Code section 2000d), the district may spend those monies to remedy a violation of the equal educational opportunities act of 1974 (20 United States Code section 1703(f)). Nothing in this subsection allows a school district to levy a primary property tax for violations of the equal educational opportunities act of 1974 (20 United States Code section 1703(f)) in the absence of an alleged or proven discrimination under title VI of the civil rights act of 1964 (42 United States Code section 2000d).
H. If a governing board chooses to budget monies outside of the revenue control limit as provided in subsection G of this section, the governing board may do one of the following:
1. Use monies from the maintenance and operation fund equal to any excess desegregation or compliance expenses beyond the revenue control limit before June 30 of the current year.
2. Notify the county school superintendent to include the cost of the excess expenses in the county school superintendent's estimate of the additional amount needed for the school district from the primary property tax as provided in section 15‑991.
3. Employ the provisions of both paragraphs 1 and 2 of this subsection, provided that the total amount transferred and included in the amount needed from property taxes does not exceed the total amount budgeted as prescribed in subsection J, paragraph 1 of this section.
I. If a governing board chooses to budget monies outside of district additional assistance as provided in subsection G of this section, the governing board may notify the county school superintendent to include the cost of the excess expenses in the county school superintendent's estimate of the additional amount needed for the school district from the primary property tax as provided in section 15‑991.
J. A governing board using subsections G, H and I of this section:
1. Shall prepare and employ a separate maintenance and operation desegregation budget and capital outlay desegregation budget on a form prescribed by the superintendent of public instruction in conjunction with the auditor general. The budget format shall be designed to allow a school district to plan and provide in detail for expenditures to be incurred solely as a result of compliance with or continuing to implement activities that were required or permitted by a court order of desegregation or administrative agreement with the United States department of education office for civil rights directed toward remediating alleged or proven racial discrimination.
2. Shall prepare as a part of the annual financial report a detailed report of expenditures incurred solely as a result of compliance with or continuing to implement activities that were required or permitted by a court order of desegregation or administrative agreement with the United States department of education office for civil rights directed toward remediating alleged or proven racial discrimination, in a format prescribed by the auditor general in conjunction with the Arizona department of education as provided by section 15‑904.
3. On or before July 15 each year, shall collect and report data regarding activities related to a court order of desegregation or an administrative agreement with the United States department of education office for civil rights directed toward remediating alleged or proven racial discrimination in a format prescribed by the Arizona department of education. The Arizona department of education shall compile and submit copies of the reports to the governor, the president of the senate, the speaker of the house of representatives and the chairpersons of the education committees of the senate and the house of representatives and shall submit a copy to the secretary of state. A school district that becomes subject to a new court order of desegregation or a party to an administrative agreement with the United States department of education office for civil rights directed toward remediating alleged or proven racial discrimination shall submit these reports on or before July 15 or within ninety days of the date of the court order or administrative agreement, whichever occurs first. The Arizona department of education, in consultation with the auditor general, shall develop reporting requirements to ensure that school districts submit at least the following information and documentation to the Arizona department of education:
(a) A district-wide budget summary and a budget summary on a school‑by‑school basis for each school in the school district that lists the sources and uses of monies that are designated for desegregation purposes.
(b) A detailed list of desegregation activities on a district-wide basis and on a school-by-school basis for each school in the school district.
(c) The date that the school district was determined to be out of compliance with title VI of the civil rights act of 1964 (42 United States Code section 2000d) and the basis for that determination.
(d) The initial date that the school district began to levy property taxes to provide funding for desegregation expenses and any dates that these property tax levies were increased.
(e) If applicable, a current and accurate description of all magnet type programs that are in operation pursuant to the court order during the current school year on a district-wide basis and on a school-by-school basis. This information shall contain the eligibility and attendance criteria of each magnet type program, the capacity of each magnet type program, the ethnic composition goals of each magnet type program, the actual attending ethnic composition of each magnet type program and the specific activities offered in each magnet type program.
(f) The number of pupils who participate in desegregation activities on a district-wide basis and on a school-by-school basis for each school in the school district.
(g) A detailed summary of the academic achievement of pupils on a district-wide basis and on a school-by-school basis for each school in the school district.
(h) The number of employees, including teachers and administrative personnel, on a district-wide basis and on a school‑by‑school basis for each school in the school district that is necessary to conduct desegregation activities.
(i) The number of employees, including teachers and administrative personnel, on a district-wide basis and on a school‑by‑school basis for each school in the school district and the number of employees at school district administrative offices that are funded in whole or in part with desegregation monies received pursuant to this section.
(j) The amount of monies that is not derived through a primary or secondary property tax levy and that is budgeted and spent on desegregation activities on a district-wide basis and on a school‑by‑school basis for each school in the school district.
(k) Verification that the desegregation funding will supplement and not supplant funding for other academic and extracurricular activities.
(l) Verification that the desegregation funding is educationally justifiable.
(m) Any documentation that supports the proposition that the requested desegregation funding is intended to result in equal education opportunities for all pupils in the school district.
(n) Verification that the desegregation funding will be used to promote systemic and organizational changes within the school district.
(o) Verification that the desegregation funding will be used in accordance with the academic standards adopted by the state board of education pursuant to sections 15‑701 and 15‑701.01.
(p) Verification that the desegregation funding will be used to accomplish specific actions to remediate proven discrimination pursuant to title VI of the civil rights act of 1964 (42 United States Code section 2000d) as specified in the court order or administrative agreement.
(q) An evaluation by the school district of the effectiveness of the school district's desegregation measures.
(r) An estimate of when the school district will be in compliance with the court order or administrative agreement and a detailed account of the steps that the school district will take to achieve compliance.
(s) Any other information that the Arizona department of education deems necessary to carry out the purposes of this paragraph.
K. If a school district governing board budgets for expenses of complying with a court order of desegregation or an administrative agreement with the United States department of education office for civil rights directed toward remediating alleged or proven racial discrimination, the governing board shall ensure that the desegregation expenses will:
1. Be educationally justifiable.
2. Result in equal education opportunities for all pupils in the school district.
3. Be used to promote systemic and organizational changes within the school district.
4. Be used in accordance with the academic standards adopted by the state board of education pursuant to sections 15‑701 and 15‑701.01.
5. Be used to accomplish specific actions to remediate proven discrimination pursuant to title VI of the civil rights act of 1964 (42 United States Code section 2000d) as specified in the court order or administrative agreement.
6. Be used in accordance with a plan submitted to the department of education that includes an estimate of the amount of monies that will be required to bring the school district into compliance with the court order or administrative agreement and an estimate of when the school district will be in compliance with the court order or administrative agreement.
7. Each fiscal year, not exceed the amount budgeted by the school district for desegregation expenses in fiscal year 2008‑2009.
8. Beginning in fiscal year 2019-2020, if a school district has an existing or previous administrative agreement with the United States department of education office for civil rights directed toward remediating alleged or proven racial discrimination or previously was subject to a court order of desegregation, not exceed the amount approved by an override election for desegregation expenses pursuant to section 15‑483. Notwithstanding the limit prescribed in this paragraph, any amount subject to paragraph 7 of this subsection that is not approved at an override election conducted pursuant to section 15-483 may be budgeted and annually reduced for five consecutive fiscal years by at least fifteen percent beginning in fiscal year 2019-2020. A school district that is subject to this paragraph may not budget for desegregation expenses outside the revenue control limit that exceed the amount approved pursuant to section 15-483 after fiscal year 2023‑2024.
9. Beginning in the second fiscal year following a federal court order declaring a school district to be in unitary status, not exceed the amount approved for desegregation expenses pursuant to section 15-483. Notwithstanding the limit prescribed in this paragraph, any amount subject to paragraph 7 of this subsection that is not approved at an override election conducted pursuant to section 15-483 and the amount budgeted in the fiscal year before a declaration of unitary status may be budgeted and annually reduced for five consecutive fiscal years by at least fifteen percent. A school district that is subject to this paragraph may not budget for desegregation expenses outside the revenue control limit that exceed the amount approved pursuant to section 15-483 after five fiscal years.
L. The governing board may budget for the bond issues portion of the cost of tuition charged the district as provided in section 15‑824 for the pupils attending school in another school district, except that if the district is a common school district not within a high school district, the district may only include that part of tuition that is excluded from the revenue control limit and district support level as provided in section 15‑951. The bond issues portion of the cost of tuition charged is specifically exempt from the revenue control limit of the school district of residence, and the primary property tax rate set to fund this amount shall not be included in the computation of additional state aid for education as provided in section 15‑972, except as provided in section 15‑972, subsection E. The department of education and the auditor general shall include in the maintenance and operation section of the budget format, as provided in section 15‑903, a separate category for the bond issues portion of the cost of tuition.
M. The governing board may budget for interest expenses it incurred for registering warrants drawn against a fund of the school district or net interest expense on tax anticipation notes as prescribed in section 35‑465.05, subsection C for the fiscal year preceding the current year if the county treasurer pooled all school district monies for investment as provided in section 15‑996 for the fiscal year preceding the current year and, in those school districts that receive state aid, the school districts applied for an apportionment of state aid before the date set for the apportionment as provided in section 15‑973 for the fiscal year preceding the current year. The governing board may budget an amount for interest expenses for registering warrants or issuing tax anticipation notes equal to or less than the amount of the warrant interest expense or net interest expense on tax anticipation notes as prescribed in section 35‑465.05, subsection C for the fiscal year preceding the current year as provided in this subsection that is specifically exempt from the revenue control limit. For the purposes of this subsection, "state aid" means state aid as determined in sections 15‑971 and 15‑972.
