State SealARIZONA HOUSE OF REPRESENTATIVES

 

SB 1152: education; appropriation; noncustodial federal monies

PRIME SPONSOR: Senator Allen S, LD 6

BILL STATUS: Appropriations

 

Legend: ADE – Arizona Department of Education Amendments – BOLD and Stricken (Committee)

Abstract

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteRelating to federal noncustodial monies for education.

Provisions

1.       Declares that the Legislature retains the authority to appropriate noncustodial federal monies to ADE. (Sec. 1)

2.       Defines noncustodial federal monies.

a.       Includes the following federal monies received by ADE:

i.         Monies designated as a block grant.

ii.       Monies designated as general revenue sharing.

iii.     Monies that provide broad authority to make spending decisions for a program or service.

iv.     Monies considered essential to meet total spending obligations of a federally required or matched program or service authorized by the Legislature, in which the federal government requires at least 1% of the funding to come from the state.

b.       Does not include monies awarded directly to school districts or charter schools. (Sec. 1)

3.       Requires ADE to account for all noncustodial federal monies it receives in separate accounts or funds as necessary to meet requirements.

a.       Allows ADE to use the most efficient system of accounts and records consistent with legal requirements and standards, and necessary financial safeguards. (Sec. 1)

4.       Requires ADE to administer and allows ADE to spend the monies if the Legislature does not make an appropriation. (Sec. 1)

5.       Requires the Legislature to specify the purpose for which the monies are to be used in each noncustodial federal monies appropriation to ADE. (Sec. 1)

6.       Allows the Legislature to make a lump sum appropriation to ADE to obtain expenditure authority for monies that may become available when the Legislature is not in session.

a.       Requires JLBC to review the expenditure of any monies by ADE from the lump sum appropriation in advance, subject to any condition specified by the Legislature. (Sec. 1)

7.       Requires noncustodial federal monies be reduced to the amount received, and proportionately among financed activities, if the amount of monies received by ADE is less than the amount appropriated. (Sec. 1)

8.       Requires appropriated noncustodial federal money amounts to remain the same if the amount received by ADE is more than appropriated.

a.       Requires the State Treasurer to credit excess monies to the appropriate ADE account. (Sec. 1)

9.       Contains a delayed effective date of January 1, 2019. (Sec. 2)

Additional Information

There are two categories of federal monies received by the state: custodial and noncustodial.  Federal monies that do not provide state discretion for disbursement are considered custodial or “pass through” monies.  Custodial monies include university research grants and direct federal payments to individuals, such as Social Security and Medicare benefits.  Noncustodial federal monies are block grants and other federal monies that provide the state with discretion regarding the development, implementation or operation of a program or service.

 

 

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Fifty-third Legislature                  SB 1152

Second Regular Session                               Version 1: Appropriations

 

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