ARIZONA STATE SENATE
Phoenix, Arizona
school districts; excess
utilities
Purpose
Establishes a “phase down” implementation formula
for school districts to budget for excess utilities costs until 2009.
Background
Current law allows a school district governing board
to budget for excess utility costs that are exempt from the revenue control
limit for the school district. Excess
utility costs are limited to a school district’s direct operational costs for
heating, cooling, water, electricity, telephone communications and sanitational
fees. Operational expenditure items
allowable as excess utility costs are specifically defined under the Uniform
System of Financial Records.
Laws 2000, 44th Legislature, Fifth
Special Session, Chapter 1 and Proposition 301 approved by the general
electorate in November 2000 terminated excess utility costs as an exemption to
the revenue control limit for school districts’ budgets, expiring the exemption
at the end of the 2008-2009 budget year.
Arizona school districts that budgeted for excess
utilities costs requested approximately $57.7 million in FY 2000 from the
Arizona Department of Education.
There is no fiscal impact to the state general fund
associated with this bill.
Provisions
1. Establishes a “phase down” implementation formula for school districts to budget for excess utilities costs until 2009 as follows:
|
Budget Year |
Percentage of Amount Spent for Excess Utilities in the
2000-2001 budget year |
|
2001-2002 |
90% |
|
2002-2003 |
80% |
|
2003-2004 |
70% |
|
2004-2005 |
60% |
|
2005-2006 |
50% |
|
2006-2007 |
40% |
|
2007-2008 |
30% |
|
2008-2009 |
20% |
2. Provides for a general effective date.
Prepared by Senate Staff
January 23, 2001