FOR CAUCUS & FLOOR ACTION

REVISED

ARIZONA STATE SENATE

RESEARCH STAFF

KIMBERLY J. YEE

LEGISLATIVE RESEARCH ANALYST

EDUCATION COMMITTEE

Telephone: (602) 542-3171

Facsimile: (602) 542-7833

TO: MEMBERS OF THE SENATE

DATE: February 13, 2001

SUBJECT: Strike Everything Amendment to S.B. 1178

Purpose

Specifies that school districts are ineligible to adjust the budget limit for energy reduction purposes if the school district did not participate in energy conservation measures during FY 2001.

Background

State law allows school districts to request energy reduction adjustments when implementing energy conservation measures that result in a reduction to the district’s excess utilities expenditures. The budget year’s excess utilities are required to be less than the base year’s excess utilities in order for districts to include the energy reduction adjustment as part of their budget. The base year is defined as the year immediately prior to the year in which conservation measures were implemented. One-half of the reduction can be added to the school district’s general budget limit, which applies to the base year and the year prior to the budget year; the remaining one-half of the reduction is required to be used to offset local property taxes within each district.

Twenty-three school districts in Arizona budgeted for the energy reduction adjustment for FYs 2000 and 2001, totaling a budget request to the Department of Education of approximately $1.6 million. The Department of Education eliminated some of the requesting districts from receiving additional monies since eligibility requirements were not met in all cases. As a result, the actual amount for those qualifying districts is approximately $659,000 for FY 2001.

There is no fiscal impact to the state general fund associated with this amendment.

Provisions

1. Specifies that school districts are ineligible to adjust the budget limit for energy reduction purposes if the school district did not participate in energy conservation measures during FY 2001.

2. Provides for a general effective date.

Amendments Adopted by Committee

Adopted the strike everything amendment.

Senate Action

EDU 2/8/01 DPA 8-0-0

KJY/ac

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