State SealARIZONA HOUSE OF REPRESENTATIVES

 

HB 2545: K-12 education; budget reconciliation; 2017-2018.

PRIME SPONSOR: Representative Mesnard, LD 17

BILL STATUS: House Engrossed

                APPROP: DPA (8-5-0-1)

 

Legend: ADE – Arizona Department of Education ADM – Average Daily Membership BSA – Basic State Aid CAA – Charter Additional Assistance DAA – District Additional Assistance FRPL – Free and Reduced Price Lunch JTED – Joint Technical Education District SBE – State Board of Education SFB – School Facilities Board Amendments – BOLD and Stricken (Committee)


Abstract

Relating to K-12 and the FY 2018 Budget.

Provisions

School Districts and Charter Schools

1.      Increases the Base Level by 1.31% for FY 2018 from $3,635.64 to $3,683.27.

2.      Increases the Transportation Support Level per route mile formula by 1.31%.

3.      Continues to direct ADE to reduce the amount of BSA by $352,442,700 that otherwise would be apportioned to school districts for FY 2018 as DAA and requires school district budget limits to be reduced accordingly.

  1. Continues to direct ADE to reduce DAA for school districts that are not eligible to receive BSA funding by the amount that would be reduced if the district was eligible for BSA funding and reduce the school district’s budget limits accordingly.   

4.      Continues to declare that it is the intent of the Governor and Legislature that school districts increase the total percentage of classroom spending over the previous year’s percentages in the combined categories of instruction, student support and instructional support. 

5.      Continues to cap the sum of DAA reductions in FY 2018 for school districts with a student count of less than 1,100 at $5 million.

6.      Increases CAA by 1.31% to the following amounts:

a.       For students in preschool programs for children with disabilities and grades K-8, from

$1,752.10 to $1,775.05.

b.      For students in grades 9-12, from $2,042.04 to $2,068.79.

7.      Continues to require ADE to reduce the amount of CAA by $18,656,000 that otherwise would be apportioned to charter schools for FY 2018 and requires budget limits to be reduced accordingly.

  1. Continues to direct the reduction to be made on a proportional basis based on the CAA funding that each charter school would have received without the prescribed reduction.   

Joint Technical Education Districts

8.      Continues to fund JTEDs with a student count of more than 2,000 at 95.5% of what would otherwise be provided by law for FY 2018 and requires ADE to reduce budget limits accordingly.

  1. ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteDirects the reduction to be computed as if the Base Support Level portion of the equalization formula funding for FY 2018 was based on the prior year ADM. 

School Emergency Pilot Program

9.      Continues to designate $100,000 for the School Emergency Readiness Pilot Program from the FY 2018 GF appropriation to ADE for the School Safety Program and establishes the same programmatic requirements for FY 2018 as previously enacted with updated report dates.

College Credit by Examination Incentive Pilot Program

10.  Requires ADE to submit a copy of the pilot program's annual report to JLBC for review and requires the report to include the amount of bonus monies received by each school.

Broadband Expansion Fund

11.  Establishes the Broadband Expansion Fund consisting of legislative appropriations to be used to provide state matching monies for certified broadband connectivity construction projects for qualified applicants.

a.       Instructs ADE to administer the Fund.

b.      Exempts monies from lapsing and continuously appropriates monies in the Fund.

12.  Stipulates that qualified applicants include schools, school districts, libraries and groups of schools or school districts with projects certified by ADE that are eligible for E-Rate.

13.  Requires the first $8 million of cumulative state matching contributions to be provided by the Corporation Commission from the funding mechanism established in accordance with E-Rate.

14.  Permits ADE to disburse Fund monies to applicants once notification is received from the universal service administrative company that the project is approved for E-Rate.

15.  Caps the total amount that an applicant may receive in total from the Fund, Corporation Commission funding mechanism and Federal Universal Service Fund at the cost of the project.

16.  Requires ADE to give priority to applicants with an E-Rate discount of 80% or higher when certifying eligibility.

17.  Requires certified projects to provide sufficient bandwidth to meet the standards for educational services for the relevant funding year by the FCC and not exceed the standards without good cause.

a.       Permits projects to be fiber-based or non-fiber based if justified by cost.

18.  Establishes a biannual reporting requirement for ADE to report specified program information to JLBC and directs the information reported by June 30 to be submitted for JLBC review.

SFB

19.  Modifies the date for schools to submit plans and requests for monies from the New School Construction Fund from September 1 to July 1, retroactive to June 30, 2017.

20.  Modifies the date for SFB approval of New School Construction Fund projects from March 1 to December 1.

21.  Instructs SFB to use the most recent 40th day ADM rather than 100th day when determining the square footage per pupil requirement.

22.  Directs the awarding of New School Construction monies to be based on the most recent 40th day ADM calculation during the current year rather than the approved projection.

Results-Based Funding

23.  Establishes the Results-Based Funding Fund consisting of legislative appropriations and administered by ADE.

a.       Directs monies in the Fund to be continuously appropriated.

24.  Instructs ADE to distribute monies to school districts and charter schools in the following manner for FY 2018:

a.       $225 per student count for each school that meets the following:

        i. Fewer than 60% of enrolled students are eligible for FRPL or an equivalent measure at the

            time the statewide assessment is administered; and

        ii. The school performed in the top 10% of all schools in specified portions of the statewide

             assessment in Spring of 2016.

b.       $400 per student count for each school that meets the following:

        i. At least 60% of enrolled students are eligible for FRPL or an equivalent measure at the time                              the statewide assessment is administered; and

        ii. The school performed in the top 10% of all schools in specified portions of the statewide

             assessment in Spring of 2016.

c.       $400 per student count for alternative high schools subject to a specialized rating system who

in 2014 were assigned the equivalent of an A.

25.  Directs monies to be distributed beginning in FY 2019 in the same manner as FY 2018 except that eligible schools are required to have been designated with an A rather than meet the top 10% requirement and the alternative high school distribution provision is removed.

26.  Requires monies received for this purpose to be separately accounted for in Annual Financial Reports.

27.  Instructs monies to be allocated directly to enhance, expand or replicate the school site that generated the funding and not supplant monies that are generally provided to that school.

28.  Requires the majority of monies to be used for teacher salaries, to hire teachers and provide teacher professional development.

29.  Permits a portion of the monies to be used for the expansion and replication of that school site as a quality school model.

30.  Directs monies to be used to sustain and replicate results, serve more students on a waiting list of an A or B school and increase salaries for teachers, classroom staff and school leaders closing the achievement gap in high-poverty schools.

31.  Requires schools that receive funding for specified areas of replication to show steady improvement after three years to remain eligible for funding.

32.  Defines replication.

Early Literacy Grant Program

33.  Establishes the Early Literacy Grant Program Fund to provide support to improve reading skills, literacy and proficiency for students in grades K-3 in addition to the K-3 Reading Program.

a.       Directs ADE to administer the Fund.

34.  Instructs SBE to adopt policies and procedures to be administered by ADE.

35.  Directs ADE, subject to SBE review and approval, to award grants on a three-year cycle to eligible schools based on available monies and on a per-pupil basis.

36.  Allows eligible schools to use grant monies for eligible expenses to increase K-3 reading proficiency and provide a full-day Kindergarten program structured to increase reading proficiency.

37.  Requires grant monies to supplement and not supplant activities in a schools Reading Program Plan.

38.  Directs ADE, subject to SBE review and approval, to include a report on the Program in the K-3 Reading Program Plan that contains specified information.

39.  Sunsets the Program on July 1, 2025.

40.  Defines eligible expenses and eligible school.

Pilot Program for Nationally Recognized College-Readiness Examinations

41.   Requires CPE to establish a one-year pilot program in School Year 2018 that allows selected public high schools receive grants to administer nationally recognized college-readiness examinations that include tests in English, reading, mathematics and science to 11th grade students.

42.   Instructs CPE to establish application procedures on a first-come first-served basis for selected schools to receive grants to pay for examinations.

43.   Excludes public schools that receive designated monies to provide nationally recognized college-readiness examinations from participation. 

44.   Requires participating public schools to report specified information to CPE in accordance with federal law and prohibits reported information from violating students' personal privacy.

45.   Instructs participating public schools to notify parents of the opportunity for the student to take an assessment free of charge and stipulates that students are not required to take an examination.

46.   Directs CPE to submit a report to the Governor, President of the Senate, Speaker of the House of Representatives and Secretary of State summarizing the results of the pilot program by November 30, 2018.

47.   Repeals the program on January 1, 2019.

48.   Appropriates $235,000 from the GF to CPE in FY 2018 for the pilot program.

Miscellaneous

49.  Permits SFB to use up to $200,000 in the Building Renewal Grant Fund for consultant services for programs associated with lead in school water systems in FY 2018.

50.  Permits a school district in a county of less than 10,000 persons with an ADM between 300-400 in FY 2016 to incur liabilities in excess of the school district budget up to $700,000 in FY 2018 without applying to SFB for Emergency Deficiencies Corrections funding or first petitioning the county school superintendent or board of supervisors and use the excess funding only for critical infrastructure repairs and to purchase or repair student transportation vehicles.

51.  Increases the general budget limit by $1.5 million in FY 2018 for a school district that in FY 2017 was subject to the additional tax for districts ineligible for equalization assistance and in FY 2016 had an ADM of at least 5,000.

52.  Makes technical and conforming changes.

 

 

 

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Fifty-third Legislature                  HB2545

First Regular Session                    Version 3: House Engrossed

 

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