ARIZONA STATE SENATE
Phoenix, Arizona
CORRECTED
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
budgeted approximately $57.5 million in FY 2000 for excess utilities costs.
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 30, 2001