ARIZONA STATE SENATE
Phoenix, Arizona
FINAL
REVISED
schools; annual financial
reports(NOW:
school district unification and consolidation commission)
An emergency measure that
makes numerous changes relating to school district budgets and budget formats.
Background
S.B. 1118 addresses a number
of issues relating to school district budgets as well as budget formats
submitted to the Arizona Department of Education. The following issues are addressed under the act:
(a)
Limits
specified school information in the budget format and the annual financial
report as submitted by school districts to the State.
(b)
Clarifies
that school districts must prepare individual school budgets and make these
available to the public upon request.
(c)
Prohibits
school district expenditures on campaign literature for school officials.
(d)
Extends
the period for Kirkland Elementary School District to submit a repayment of
monies to the State for an overpayment made by the State in FY 1999-2000.
(e)
Allows
Humboldt School District to reallocate the revenue control limit and capital
outlay revenue limit between the maintenance and operations and the
unrestricted portions of the budget for the 2001-2002 school year.
(f)
Exempts
Murphy School District from the reduction of state aid in FY 2001-2002 as a
result of experiencing a rapid decline in students, due, in part, to the
elimination of the early kindergarten or early first grade programs.
Any fiscal impact to the
state general fund related to this legislation is unknown at this time.
1. Requires the individual school section of the school district budget format to include only aggregate summaries by major function for the maintenance and operation, unrestricted capital outlay and soft capital allocation funds.
2. Limits the reporting by individual schools in the school district annual financial report to annual expenditures aggregated by major function for maintenance and operation, unrestricted capital outlay and soft capital allocation funds.
3. Requires school districts to prepare budgets for each individual school in the district and make these budgets available to the public upon request.
4. Requires the budget format submitted to the Department of Education to include a description of any corrections or adjustments made to the budget.
5. Prohibits school district expenditures on campaign literature associated with school district or charter school officials. Allows the Sate Superintendent to withhold a portion of a school district's state aid if it is found that the school district is in violation of this provision.
6. Allows the State Superintendent to allow a common school district that meets specified criteria to correct state aid errors or budget limit errors made in FY 1999-2000 in a period of no more than four years after the miscalculation is determined. (Kirkland Elementary School District qualifies under this section.)
7. Allows a school district in FY 2001-2002 to reallocate the revenue control limit and capital outlay revenue limit between the maintenance and operations and the unrestricted portions of the budget for the 2001-2002 school year utilizing the provisions of the general budget limit that were available at the time of the school district's original budget adoption. (Humboldt School District qualifies under this section.)
8. Provides, notwithstanding laws adopted in the 2002 3rd Special Session, that the State Superintendent is prohibited from reducing state aid in FY 2001-2002 to a qualifying school district that experienced rapid decline in students, due, in part, to the elimination of the early kindergarten or early first grade programs. (Murphy School District qualifies under this section.)
9. Makes technical and conforming changes.
10. Becomes effective on signature of the Governor.
Amendments Adopted by Committee
1. Requires the individual school section of the school district budget format to include only aggregate summaries by major function for unrestricted capital outlay and soft capital allocation funds.
2. Limits the reporting by individual schools in the school district annual financial report to annual expenditures aggregated by major function for unrestricted capital outlay and soft capital allocation funds.
Amendments Adopted by the House of Representatives
1. A strike-everything amendment was adopted establishing a 19-member School District Unification and Consolidation Commission (Commission) that includes the following provisions:
1. Requires the Commission to study and examine the following:
a) The costs and benefits of unification of consolidation of school districts, or both, and any potential savings associated with a reduction in administrative personnel.
b) Various models for unification or consolidation of school districts.
c) The impact of school district unification and consolidation on stipulated items.
2. Requires the Commission to submit a report to the Governor and Legislature summarizing the Commission's findings and recommendations by September 15, 2003.
3. Requires that any legislation proposed in the 46th Legislature as a result of the report be subject to a joint temporary special rule in the Senate and House that prescribes special rules for amendment and debate of the proposed legislation.
4. Repeals the Commission on January 1, 2004.
Amendments Adopted
by the Free Conference Committee
1. Adopt the version of the bill as passed by the Senate that:
a) requires the individual school section of the school district budget format to include only aggregate summaries by major function for the maintenance and operation and soft capital funds.
b) limits the reporting by individual schools in the school district annual financial report to annual expenditures aggregated by major function for maintenance and operation and soft capital funds.
2. Requires school districts to prepare budgets for each individual school in the district and make these budgets available to the public upon request.
3. Requires the budget format submitted to the Department of Education to include a description of any corrections or adjustments made to the budget.
4. Prohibits school district expenditures on campaign literature associated with school district or charter school officials. Allows the Sate Superintendent to withhold a portion of a school district's state aid if it is found that the school district is in violation of this provision.
5. Allows the State Superintendent to allow a common school district that meets specified criteria to correct state aid errors or budget limit errors made in FY 1999-2000 in a period of no more than four years after the miscalculation is determined. (Kirkland Elementary School District qualifies under this section.)
6. Allows a school district in FY 2001-2002 to reallocate the revenue control limit and capital outlay revenue limit between the maintenance and operations and the unrestricted portions of the budget for the 2001-2002 school year utilizing the provisions of the general budget limit that were available at the time of the school district's original budget adoption. (Humboldt School District qualifies under this section.)
7. Provides, notwithstanding laws adopted in the 2002 3rd Special Session, that the State Superintendent is prohibited from reducing state aid in FY 2001-2002 to a qualifying school district that experienced rapid decline in students, due, in part, to the elimination of the early kindergarten or early first grade programs. (Murphy School District qualifies under this section.)
8. Becomes effective on signature of the Governor with the emergency clause.
Senate Action House Action
ED 1/31/02 DPA 8-0-0-0 ED 4/17/02 W/D
3rd Read 2/13/02 29-1-0-0 APPROP 4/23/02 DPA/SE 7-4-0-5-0
Final Read 5/23/02 24-0-6-0 3rd Read 4/29/02 38-18-4-0
Final Read 5/23/02 49-2-9-0
Signed by the Governor 6/4/02
Chapter 333
Prepared by Senate Staff
June 13, 2002