First Regular Session S.B. 1444
COMMITTEE ON EDUCATION
SENATE AMENDMENTS TO S.B. 1444
(Reference to printed bill)
Page 1, between lines 1 and 2, insert:
"Section 1. Section 15-185, Arizona Revised Statutes, is amended to read:
15-185. Charter schools; financing; civil penalty; transportation; definitions
A. Financial provisions for a charter school that is sponsored by a school district governing board are as follows:
1. The charter school shall be included in the district's budget and financial assistance calculations pursuant to paragraph 3 of this subsection and chapter 9 of this title, except for chapter 9, article 4 of this title. The charter of the charter school shall include a description of the methods of funding the charter school by the school district. The school district shall send a copy of the charter and application, including a description of how the school district plans to fund the school, to the state board of education before the start of the first fiscal year of operation of the charter school. The charter or application shall include an estimate of the student count for the charter school for its first fiscal year of operation. This estimate shall be computed pursuant to the requirements of paragraph 3 of this subsection.
2. A school district is not financially responsible for any charter school that is sponsored by the state board of education, the state board for charter schools, a university under the jurisdiction of the Arizona board of regents, a community college district or a group of community college districts.
3. A school district that sponsors a charter school may:
(a) Increase its student count as provided in subsection B, paragraph 2 of this section during the first year of the charter school's operation to include those charter school pupils who were not previously enrolled in the school district. A charter school sponsored by a school district governing board is eligible for the assistance prescribed in subsection B, paragraph 4 5 of this section. The soft capital allocation as provided in section 15‑962 for the school district sponsoring the charter school shall be increased by the amount of the additional assistance. The school district shall include the full amount of the additional assistance in the funding provided to the charter school.
(b) Compute separate weighted student counts pursuant to section 15‑943, paragraph 2, subdivision (a) for its noncharter school versus charter school pupils in order to maintain eligibility for small school district support level weights authorized in section 15‑943, paragraph 1 for its noncharter school pupils only. The portion of a district's student count that is attributable to charter school pupils is not eligible for small school district support level weights.
4. If a school district uses the provisions of paragraph 3 of this subsection, the school district is not eligible to include those pupils in its student count for the purposes of computing an increase in its revenue control limit and district support level as provided in section 15‑948.
5. A school district that sponsors a charter school is not eligible to include the charter school pupils in its student count for the purpose of computing an increase in its capital outlay revenue limit as provided in section 15‑961, subsection C, except that if the charter school was previously a school in the district, the district may include in its student count any charter school pupils who were enrolled in the school district in the prior year.
6. A school district that sponsors a charter school is not eligible to include the charter school pupils in its student count for the purpose of computing the revenue control limit which is used to determine the maximum budget increase as provided in chapter 4, article 4 of this title unless the charter school is located within the boundaries of the school district.
7. If a school district converts one or more of its district public schools to a charter school and receives assistance as prescribed in subsection B, paragraph 4 5 of this section, and subsequently converts the charter school back to a district public school, the school district shall repay the state the total additional assistance received for the charter school for all years that the charter school was in operation. The repayment shall be in one lump sum and shall be reduced from the school district's current year equalization assistance. The school district's general budget limit shall be reduced by the same lump sum amount in the current year.
8. A school district that sponsors a charter school that received an achievement score pursuant to section 15-241, subsection G shall calculate a performance funding adjustment as prescribed in section 15-917. Charter schools that receive an achievement profile pursuant to section 15-241, subsection J are not eligible for the performance funding adjustment. The performance funding adjustment shall be included in the school district's adjustment prescribed in section 15-971.
B. Financial provisions for a charter school that is sponsored by the state board of education, the state board for charter schools, a university, a community college district or a group of community college districts are as follows:
1. The charter school shall calculate a base support level as prescribed in section 15‑943, except that section 15‑941 does not apply to these charter schools.
2. Notwithstanding paragraph 1 of this subsection, the student count shall be determined initially using an estimated student count based on actual registration of pupils before the beginning of the school year. After the first one hundred days or two hundred days in session, as applicable, the charter school shall revise the student count to be equal to the actual average daily membership, as defined in section 15‑901, of the charter school. Before the one hundredth day or two hundredth day in session, as applicable, the state board of education, the state board for charter schools, the sponsoring university, the sponsoring community college district or the sponsoring group of community college districts may require a charter school to report periodically regarding pupil enrollment and attendance, and the department of education may revise its computation of equalization assistance based on the report. A charter school shall revise its student count, base support level and additional assistance before May 15. A charter school that overestimated its student count shall revise its budget before May 15. A charter school that underestimated its student count may revise its budget before May 15.
3. A charter school may utilize section 15‑855 for the purposes of this section. The charter school and the department of education shall prescribe procedures for determining average daily membership.
4. The charter school shall calculate a performance funding adjustment prescribed in section 15‑917.
4. 5. Equalization assistance for the charter school shall be determined by adding the amount of the base support level, and additional assistance and performance funding prescribed in section 15‑917. The amount of the additional assistance is one thousand six hundred fifty‑four dollars forty‑one cents per student count in kindergarten programs and grades one through eight and one thousand nine hundred twenty‑eight dollars nineteen cents per student count in grades nine through twelve.
5. 6. The state board of education shall apportion state aid from the appropriations made for such purposes to the state treasurer for disbursement to the charter schools in each county in an amount as determined by this paragraph. The apportionments shall be made as prescribed in section 15‑973, subsection B.
6. 7. The charter school shall not charge tuition for pupils who reside in this state, levy taxes or issue bonds. A charter school may admit pupils who are not residents of this state and shall charge tuition for those pupils in the same manner prescribed in section 15‑823.
7. 8. Not later than noon on the day preceding each apportionment date established by paragraph 5 6 of this subsection, the superintendent of public instruction shall furnish to the state treasurer an abstract of the apportionment and shall certify the apportionment to the department of administration, which shall draw its warrant in favor of the charter schools for the amount apportioned.
C. If a pupil is enrolled in both a charter school and a public school that is not a charter school, the sum of the daily membership, which includes enrollment as prescribed in section 15‑901, subsection A, paragraph 1, subdivisions (a) and (b) and daily attendance as prescribed in section 15‑901, subsection A, paragraph 5, for that pupil in the school district and the charter school shall not exceed 1.0, except that if the pupil is enrolled in both a charter school and a joint technical education district and resides within the boundaries of a school district participating in the joint technical education district, the sum of the average daily membership for that pupil in the charter school and the joint technical education district shall not exceed 1.25. If a pupil is enrolled in both a charter school and a public school that is not a charter school, the department of education shall direct the average daily membership to the school with the most recent enrollment date. Upon On validation of actual enrollment in both a charter school and a public school that is not a charter school and if the sum of the daily membership or daily attendance for that pupil is greater than 1.0, the sum shall be reduced to 1.0 and shall be apportioned between the public school and the charter school based on the percentage of total time that the pupil is enrolled or in attendance in the public school and the charter school, except that if the pupil is enrolled in both a charter school and a joint technical education district and resides within the boundaries of a school district participating in the joint technical education district, the sum of the average daily membership for that pupil in the charter school and the joint technical education district shall be reduced to 1.25 and shall be apportioned between the charter school and the joint technical education district based on the percentage of total time that the pupil is enrolled or in attendance in the charter school and the joint technical education district. The uniform system of financial records shall include guidelines for the apportionment of the pupil enrollment and attendance as provided in this section.
D. Charter schools are allowed to accept grants and gifts to supplement their state funding, but it is not the intent of the charter school law to require taxpayers to pay twice to educate the same pupils. The base support level for a charter school or for a school district sponsoring a charter school shall be reduced by an amount equal to the total amount of monies received by a charter school from a federal or state agency if the federal or state monies are intended for the basic maintenance and operations of the school. The superintendent of public instruction shall estimate the amount of the reduction for the budget year and shall revise the reduction to reflect the actual amount before May 15 of the current year. If the reduction results in a negative amount, the negative amount shall be used in computing all budget limits and equalization assistance, except that:
1. Equalization assistance shall not be less than zero.
2. For a charter school sponsored by the state board of education, the state board for charter schools, a university, a community college district or a group of community college districts, the total of the base support level and the additional assistance shall not be less than zero.
3. For a charter school sponsored by a school district, the base support level for the school district shall not be reduced by more than the amount that the charter school increased the district's base support level, capital outlay revenue limit and soft capital allocation.
E. If a charter school was a district public school in the prior year and is now being operated for or by the same school district and sponsored by the state board of education, the state board for charter schools, a university, a community college district, a group of community college districts or a school district governing board, the reduction in subsection D of this section applies. The reduction to the base support level of the charter school or the sponsoring district of the charter school shall equal the sum of the base support level and the additional assistance received in the current year for those pupils who were enrolled in the traditional public school in the prior year and are now enrolled in the charter school in the current year.
F. Equalization assistance for charter schools shall be provided as a single amount based on average daily membership without categorical distinctions between maintenance and operations or capital.
G. At the request of a charter school, the county school superintendent of the county where the charter school is located may provide the same educational services to the charter school as prescribed in section 15‑308, subsection A. The county school superintendent may charge a fee to recover costs for providing educational services to charter schools.
H. If the sponsor of the charter school determines at a public meeting that the charter school is not in compliance with federal law, with the laws of this state or with its charter, the sponsor of a charter school may submit a request to the department of education to withhold up to ten per cent of the monthly apportionment of state aid that would otherwise be due the charter school. The department of education shall adjust the charter school's apportionment accordingly. The sponsor shall provide written notice to the charter school at least seventy‑two hours before the meeting and shall allow the charter school to respond to the allegations of noncompliance at the meeting before the sponsor makes a final determination to notify the department of education of noncompliance. The charter school shall submit a corrective action plan to the sponsor on a date specified by the sponsor at the meeting. The corrective action plan shall be designed to correct deficiencies at the charter school and to ensure that the charter school promptly returns to compliance. When the sponsor determines that the charter school is in compliance, the department of education shall restore the full amount of state aid payments to the charter school.
I. In addition to the withholding of state aid payments pursuant to subsection H of this section, the sponsor of a charter school may impose a civil penalty of one thousand dollars per occurrence if a charter school fails to comply with the fingerprinting requirements prescribed in section 15‑183, subsection C or section 15‑512. The sponsor of a charter school shall not impose a civil penalty if it is the first time that a charter school is out of compliance with the fingerprinting requirements and if the charter school provides proof within forty-eight hours of written notification that an application for the appropriate fingerprint check has been received by the department of public safety. The sponsor of the charter school shall obtain proof that the charter school has been notified, and the notification shall identify the date of the deadline and shall be signed by both parties. The sponsor of a charter school shall automatically impose a civil penalty of one thousand dollars per occurrence if the sponsor determines that the charter school subsequently violates the fingerprinting requirements. Civil penalties pursuant to this subsection shall be assessed by requesting the department of education to reduce the amount of state aid that the charter school would otherwise receive by an amount equal to the civil penalty. The amount of state aid withheld shall revert to the state general fund at the end of the fiscal year.
J. A charter school may receive and spend monies distributed by the department of education pursuant to section 42‑5029, subsection E and section 37‑521, subsection B.
K. If a school district transports or contracts to transport pupils to the Arizona state schools for the deaf and the blind during any fiscal year, the school district may transport or contract with a charter school to transport sensory impaired pupils during that same fiscal year to a charter school if requested by the parent of the pupil and if the distance from the pupil's place of actual residence within the school district to the charter school is less than the distance from the pupil's place of actual residence within the school district to the campus of the Arizona state schools for the deaf and the blind.
L. Notwithstanding any other law, a university under the jurisdiction of the Arizona board of regents, a community college district or a group of community college districts shall not include any student in the student count of the university, community college district or group of community college districts for state funding purposes if that student is enrolled in and attending a charter school sponsored by the university, community college district or group of community college districts.
M. The governing body of a charter school shall transmit a copy of its proposed budget or the summary of the proposed budget and a notice of the public hearing to the department of education for posting on the department of education's website no later than ten days before the hearing and meeting. If the charter school maintains a website, the charter school governing body shall post on its website a copy of its proposed budget or the summary of the proposed budget and a notice of the public hearing.
N. The governing body of a charter school shall collaborate with the private organization that is approved by the state board of education pursuant to section 15‑792.02 to provide approved board examination systems for the charter school.
O. If permitted by federal law, a charter school may opt out of federal grant opportunities if the charter holder or the appropriate governing body of the charter school determines that the federal requirements impose unduly burdensome reporting requirements.
P. For the purposes of this section:
1. "Monies intended for the basic maintenance and operations of the school" means monies intended to provide support for the educational program of the school, except that it does not include supplemental assistance for a specific purpose or title VIII of the elementary and secondary education act of 1965 monies. The auditor general shall determine which federal or state monies meet the definition in this paragraph.
2. "Operated for or by the same school district" means the charter school is either governed by the same district governing board or operated by the district in the same manner as other traditional schools in the district or is operated by an independent party that has a contract with the school district. The auditor general and the department of education shall determine which charter schools meet the definition in this subsection."
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Line 9, after "each" insert "eligible"; strike the second "school" insert "holder"
Line 13, strike "school" insert "holder"
Line 16, after the period insert "If the difference is zero or less than zero, use zero."
Line 19, after "year" insert "unweighted attending"
Line 20, strike "school" insert "holder"
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Line 31, strike the first "school" insert "holder"
Line 34, strike "school" insert "holder"
Page 19, line 2, strike "school" insert "holder"
Strike lines 4 through 10, insert:
"3. The reallocation amount shall be computed by multiplying the prior year unweighted attending average daily membership of the school district or charter holder by eighty‑six dollars thirty cents."
Line 11, strike the second "school" insert "holder"
Line 14, after "section" insert "minus the reallocation amount calculated pursuant to subsection A, paragraph 3 of this section"
Between lines 14 and 15, insert:
"C. For fiscal years 2013-2014 through 2016-2017 only, the performance funding amount determined in subsection b of this section shall be reduced by the following percentages:
1. For fiscal year 2013-2014, eighty per cent.
2. For fiscal year 2014-2015, sixty per cent.
3. For fiscal year 2015-2016, forty per cent.
4. For fiscal year 2016-2017, twenty per cent.
D. The performance funding amount allocated pursuant to this section shall not be included in the allowable budget balance carryforward calculated pursuant to section 15-943.01.
E. On the assignment of an achievement profile for an eligible school district or charter holder pursuant to section 15-241, subsection G, the department shall calculate the performance funding amounts and notify each eligible school district and charter holder of this amount.
F. A school district or charter holder shall revise its budget within sixty days after receiving notification from the department of the actual performance funding amount calculated pursuant to this section if the revised budget must be adopted by the governing board at a public hearing pursuant to the requirements of section 15‑185 or 15-905, as applicable, and submitted to superintendent of public instruction."
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Page 19, line 18, strike "school" insert "holder"
Strike lines 24 through 44, insert:
"H. A school district or charter holder is eligible for funding authorized by this section only if the school district or charter holder received an achievement profile and score pursuant to section 15-241, subsection G. School districts or charter holders that receive an achievement profile and score pursuant to section 15-241, subsection J are not eligible for the funding authorized by this section."
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Page 21, strike lines 1 through 17, insert:
"Sec. 4. Section 15-947, Arizona Revised Statutes, is amended to read:
15-947. Revenue control limit; district support level; general budget limit; unrestricted total capital budget limit; soft capital allocation limit
A. The revenue control limit for a school district is equal to the sum of the base revenue control limit determined in section 15‑944 and the transportation revenue control limit determined in section 15‑946.
B. The district support level for a school district is equal to the sum of the base support level determined in section 15‑943 and the transportation support level determined in section 15‑945.
C. The general budget limit for each school district, for each fiscal year, is the sum of the following:
1. The maintenance and operations portion of the revenue control limit for the budget year.
2. The maintenance and operation portion of the following amounts:
(a) Amounts that are fully funded by revenues other than a levy of taxes upon the taxable property within the school district, as listed below:
(i) Amounts budgeted as the budget balance carryforward as provided in section 15‑943.01.
(ii) Tuition revenues for attendance of nonresident pupils.
(iii) State assistance as provided in section 15‑976.
(iv) Special education revenues as provided in section 15‑825, subsection D and section 15‑1204.
(v) Title VIII of the elementary and secondary education act of 1965 assistance determined for children with disabilities, children with specific learning disabilities, children residing on Indian lands and children residing within the boundaries of an accommodation school that is located on a military reservation and that is classified as a heavily impacted local educational agency pursuant to 20 United States Code section 7703 as provided in section 15‑905, subsections K and O.
(vi) Title VIII of the elementary and secondary education act of 1965 administrative costs as provided in section 15‑905, subsection P.
(vii) State assistance for excess tuition as provided in section 15‑825.01.
(viii) Amounts received from the state board of education pursuant to section 15‑973.01.
(ix) Transportation revenues for attendance of nonresident pupils.
(b) Amounts approved pursuant to an override election as provided in section 15‑481 for the applicable fiscal year.
(c) Expenditures for excess utility costs as provided in section 15‑910.
(d) Amounts authorized by the county school superintendent pursuant to section 15‑974, subsection B.
(e) Expenditures for complying with a court order of desegregation as provided in section 15‑910.
(f) Expenditures for the bond issues portion of the cost of tuition as provided in section 15‑910.
(g) Interest on registered warrants or tax anticipation notes as provided in section 15‑910.
(h) Amounts budgeted for a jointly owned and operated career and technical education and vocational education center as provided in section 15‑910.01.
3. The maintenance and operations portion of the capital outlay revenue limit for the budget year.
4. Any other budget item that is budgeted in the maintenance and operation section of the budget and that is specifically exempt from the revenue control limit or the capital outlay revenue limit.
5. The maintenance and operations portion of the performance funding adjustment calculated pursuant to section 15‑917.
D. The unrestricted capital budget limit, for each school district for each fiscal year, is the sum of the following:
1. The federal impact adjustment as determined in section 15‑964 for the budget year.
2. Any other budget item that is budgeted in the capital outlay section of the budget and that is specifically exempt from the capital outlay revenue limit.
3. The unrestricted capital portion of the amounts contained in subsection C of this section.
4. The unexpended budget balance in the unrestricted capital outlay fund from the previous fiscal year.
5. The net interest earned in the unrestricted capital outlay fund the previous fiscal year.
6. The budgeted amount as approved and determined pursuant to section 15‑962, subsection F.
E. The soft capital allocation limit for each school district for each fiscal year is the sum of the following:
1. The soft capital allocation for the budget year.
2. The unexpended budget balance in the soft capital allocation fund from the previous fiscal year.
3. The net interest earned in the soft capital allocation fund the previous fiscal year.
Sec. 5. Section 15-971, Arizona Revised Statutes, is amended to read:
15-971. Determination of equalization assistance payments from county and state funds for school districts
A. Equalization assistance for education is computed by determining the total of the following:
1. The lesser of a school district's revenue control limit or district support level as determined in section 15‑947 or 15‑951.
2. The capital outlay revenue limit of a school district as determined in section 15‑951 or 15‑961.
3. The soft capital allocation of a school district as determined in section 15‑951 or 15‑962.
4. The amount of performance funding calculated pursuant to section 15‑917.
B. From the total of the amounts determined in subsection A of this section subtract:
1. The amount that would be produced by levying the applicable qualifying tax rate determined pursuant to section 41‑1276 for a high school district or a common school district within a high school district that does not offer instruction in high school subjects as provided in section 15‑447.
2. The amount that would be produced by levying the applicable qualifying tax rate determined pursuant to section 41‑1276 for a unified school district, a common school district not within a high school district or a common school district within a high school district that offers instruction in high school subjects as provided in section 15‑447. The qualifying tax rate shall be applied in the following manner:
(a) For the purposes of the amount determined in subsection A, paragraph paragraphs 1 and 4 of this section:
(i) Determine separately the percentage that the weighted student count in preschool programs for children with disabilities, kindergarten programs and grades one through eight and the weighted student count in grades nine through twelve is to the weighted student count determined in subtotal A as provided in section 15‑943, paragraph 2, subdivision (a).
(ii) Apply the percentages determined in item (i) to the amount determined in subsection A, paragraph paragraphs 1 and 4 of this section.
(b) For the purposes of the amounts determined in subsection A, paragraphs 2 and 3 of this section, determine separately the amount of the capital outlay revenue limit and the amount of the soft capital allocation attributable to the student count in preschool programs for children with disabilities, kindergarten programs and grades one through eight and grades nine through twelve.
(c) From the amounts determined in subdivisions (a) and (b), subtract the levy that would be produced by the current qualifying tax rate for a high school district or a common school district within a high school district that does not offer instruction in high school subjects as provided in section 15‑447. If the qualifying tax rate generates a levy that is in excess of the total determined in subsection A of this section, the school district shall not be eligible for equalization assistance. For the purposes of this subsection, "assessed valuation" includes the values used to determine voluntary contributions collected pursuant to title 9, chapter 4, article 3 and title 48, chapter 1, article 8 and the assessed value of all property subject to the government property lease excise tax pursuant to title 42, chapter 6, article 5.
3. The amount that would be produced by levying a qualifying tax rate in a joint technical education district, which shall be five cents per one hundred dollars assessed valuation unless the legislature sets a lower rate by law.
C. County aid for equalization assistance for education shall be computed as follows:
1. Determine the total equalization assistance for all school districts in the county as provided in subsections A and B of this section.
2. Determine the total amount of state equalization assistance collected for all school districts in the county as provided in section 15‑994.
3. Divide the amount determined in paragraph 2 of this subsection by the amount determined in paragraph 1 of this subsection.
4. Multiply the amount determined in subsections A and B of this section by the quotient determined in paragraph 3 of this subsection for each school district.
5. The amount determined in paragraph 4 of this subsection shall be the county aid for equalization assistance for education for a school district.
D. State aid for equalization assistance for education for a school district shall be computed as follows:
1. Determine the equalization assistance for education for a school district as provided in subsections A and B of this section.
2. For each county, determine the levy that would be produced by the state equalization assistance property tax rate prescribed in section 15‑994, subsection A.
3. Prorate the amount determined in paragraph 2 of this subsection to each school district in the county as prescribed by subsection C of this section.
4. Subtract the amount determined in paragraph 3 of this subsection from the amount determined in paragraph 1 of this subsection.
E. Equalization assistance for education shall be paid from appropriations for that purpose to the school districts as provided in section 15‑973.
F. A school district shall report expenditures on approved career and technical education and vocational education programs in the annual financial report according to uniform guidelines prescribed by the uniform system of financial records and in order to facilitate compliance with sections 15‑255 and 15‑904.
G. The additional weight for state aid purposes given to special education as provided in section 15‑943 shall be given to school districts only if special education programs comply with chapter 7, article 4 of this title and the conditions and standards prescribed by the superintendent of public instruction pursuant to rules of the state board of education for pupil identification and placement pursuant to sections 15‑766 and 15‑767.
H. In addition to general fund appropriations, all amounts received pursuant to section 37‑521, subsection B, paragraph 3 and section 42‑5029, subsection E, paragraph 5 and from any other source for the purposes of this section are appropriated for state aid to schools as provided in this section.
I. The total amount of state monies that may be spent in any fiscal year for state equalization assistance shall not exceed the amount appropriated or authorized by section 35‑173 for that purpose. This section shall not be construed to impose a duty on an officer, agent or employee of this state to discharge a responsibility or to create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose."
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Page 21, line 19, strike "A."; strike "August 15, 2015" insert "November 1, 2014"
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Page 21, line 24, strike "B. The department of education shall"; strike "recommended"
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Line 26, strike "session" insert "recommendations to the governor, the president of the senate, the speaker of the house of representatives and the joint legislative budget committee"; strike "is" insert "are"
Lines 27, 34 and 43, strike "schools" insert "holders"
Page 22, lines 9, 15 and 17, strike "schools" insert "holders"
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Amend title to conform