REFERENCE TITLE: school districts; overexpenditures; correction; interest

State of Arizona Senate Fifty-third Legislature Second Regular Session 2018

SB 1237

Introduced by Senators Peshlakai: Bowie, Bradley, Cajero Bedford, Contreras, Dalessandro, Farley, Hobbs, Mendez, Meza, Miranda, Otondo, Quezada; Representatives Andrade, Descheenie, Espinoza, Gabaldón, Gonzales, Saldate, Salman

 

AN ACT

 

amending Laws 2012, chapter 340, section 3; relating to school finance.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

Be it enacted by the Legislature of the State of Arizona:

Section 1.  Laws 2012, chapter 340, section 3 is amended to read:

Sec. 3.  School district budget overexpenditures; correction; interest

A.  Notwithstanding sections 15-905 and 15-915, Arizona Revised Statutes, a school district that overexpended its budget during fiscal year 2003-2004 shall be required to correct this overexpenditure plus any overexpenditures for fiscal years 2004-2005 through 2011-2012 by reducing its budget capacity over a nine‑year twelve-year period beginning in fiscal year 2011-2012 and ending in fiscal year 2019‑2020 2022-2023.  The annual installments shall be one hundred thousand dollars for fiscal year 2011‑2012 and twelve and one‑half per cent percent of the remaining total required reduction for fiscal years 2012‑2013 through 2019‑2020 2022-2023.  This subsection applies to a school district if all of the following conditions exist:

1.  The school district is a unified school district that is located on an Indian reservation.

2.  The school district is currently in receivership pursuant to section 15‑103, Arizona Revised Statutes.

3.  The school district's average daily membership for the 2010-2011 school year was more than two hundred seventy pupils but less than two hundred eighty pupils.

4.  The total amount of the correction that would otherwise be required under section 15-915, Arizona Revised Statutes, excluding interest, is more than five hundred thousand dollars but less than one million one hundred thousand dollars.

B.  Notwithstanding any other law, the department of education shall also reduce the state aid that would otherwise be due a school district that meets the criteria specified in subsection A of this section by one hundred thousand dollars for fiscal year 2011-2012 and twenty‑five per cent percent of the remaining total each fiscal year over a four‑year period beginning in fiscal year 2012‑2013 and ending in fiscal year 2015‑2016. 

C.  In addition to monies required to be repaid pursuant to subsection B of this section, accrued interest must be paid at a rate determined by the superintendent of public instruction.