HB2691 - 541R

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

Section 1. Laws 2018, chapter 285, section 27 is amended to read:

Sec. 27. District additional assistance for school districts; reductions; exemption; classroom spending

A. For fiscal years 2018-2019 through 2022-2023, the department of education shall reduce by the amounts specified in paragraphs 1 through 4 of this subsection the amount of basic state aid that otherwise would be apportioned to school districts statewide for district additional assistance prescribed in section 15-961, Arizona Revised Statutes, and shall reduce school district budget limits accordingly. The amount of reduction is:

1. For fiscal year 2018-2019, $257,469,900.

2. For fiscal year 2019-2020, $193,102,400 $45,737,200.

3. For fiscal year 2020-2021, $128,734,900 $45,755,600.

4. For fiscal year 2021-2022, $64,367,400 $45,773,900.

5. For fiscal year 2022‑2023 and each fiscal year thereafter, $0.00.

B. For fiscal years 2018-2019 through 2021-2022, the department of education shall reduce district additional assistance for a school district that is not eligible to receive basic state aid funding by the amount that the school district's district additional assistance would be reduced pursuant to subsection A of this section if the school district were eligible to receive basic state aid funding and shall reduce the school district's budget limits accordingly.

C. School districts with a student count of fewer than one thousand one hundred pupils are exempt from subsections A and B of this section.

D. It is the intent of the governor and the 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 as prescribed by the auditor general.

Sec. 2. Laws 2018, chapter 285, section 28 is amended to read:

Sec. 28. Additional assistance funding for charter schools; reductions

For fiscal years 2018-2019 through 2022-2023, the department of education shall reduce by the amounts specified in paragraphs 1 through 4 of this section the amount of charter additional assistance funding that otherwise would be apportioned to charter schools statewide pursuant to section 15‑185, subsection B, paragraph 4, Arizona Revised Statutes, as amended by this act. The funding reduction required for a fiscal year under this section shall be made on a proportional basis based on the charter additional assistance funding that each charter school in this state would have received for the fiscal year without the prescribed reduction. The amount of reduction is:

1. For fiscal year 2018-2019, $13,628,800.

2. For fiscal year 2019-2020, $10,221,600 $2,465,500.

3. For fiscal year 2020-2021, $6,814,400 $2,447,000.

4. For fiscal year 2021-2022, $3,407,200 $2,428,600.

5. For fiscal year 2022‑2023 and each fiscal year thereafter, $0.00.

Sec. 3. Reduction in school district state aid apportionment in fiscal year 2019-2020; appropriation in fiscal year 2020‑2021

A. In addition to any other appropriation reductions made in fiscal year 2019-2020, notwithstanding any other law, the department of education shall defer until after June 30, 2020 but not later than July 12, 2020 $775,606,400 of the basic state aid and additional state aid payments that otherwise would be apportioned to school districts during fiscal year 2019‑2020 pursuant to section 15-973, Arizona Revised Statutes. The funding deferral required by this subsection does not apply to charter schools or to school districts with a student count of less than six hundred pupils. The department of education shall make the deferral by reducing the apportionment of state aid for each month in the fiscal year by the same amount.

B. In addition to any other appropriations made in fiscal year 2020‑2021, the sum of $775,606,400 is appropriated from the state general fund in fiscal year 2020-2021 to the department of education and the superintendent of public instruction for basic state aid and additional state aid entitlement for fiscal year 2020-2021. This appropriation shall be disbursed after June 30, 2020 but not later than July 12, 2020 to the several counties for the school districts in each county in amounts equal to the reductions in apportioning basic state aid and additional state aid that are required pursuant to subsection A of this section for fiscal year 2019‑2020.

C. Each school district shall include in the revenue estimate it uses to compute its tax rate for fiscal year 2019-2020 the monies it will receive pursuant to subsection B of this section.

Sec. 4. Reduction in school district state aid apportionment in fiscal year 2020-2021; appropriation in fiscal year 2021‑2022

A. In addition to any other appropriation reductions made in fiscal year 2020-2021, notwithstanding any other law, the department of education shall defer until after June 30, 2021 but not later than July 12, 2021 $552,710,500 of the basic state aid and additional state aid payments that otherwise would be apportioned to school districts during fiscal year 2020‑2021 pursuant to section 15-973, Arizona Revised Statutes. The funding deferral required by this subsection does not apply to charter schools or to school districts with a student count of less than six hundred pupils. The department of education shall make the deferral by reducing the apportionment of state aid for each month in the fiscal year by the same amount.

B. In addition to any other appropriations made in fiscal year 2021‑2022, the sum of $552,710,500 is appropriated from the state general fund in fiscal year 2021-2022 to the department of education and the superintendent of public instruction for basic state aid and additional state aid entitlement for fiscal year 2021-2022. This appropriation shall be disbursed after June 30, 2021 but not later than July 12, 2021 to the several counties for the school districts in each county in amounts equal to the reductions in apportioning basic state aid and additional state aid that are required pursuant to subsection A of this section for fiscal year 2020‑2021.

C. Each school district shall include in the revenue estimate it uses to compute its tax rate for fiscal year 2020-2021 the monies it will receive pursuant to subsection B of this section.

Sec. 5. Reduction in school district state aid apportionment in fiscal year 2021-2022; appropriation in fiscal year 2022‑2023

A. In addition to any other appropriation reductions made in fiscal year 2021-2022, notwithstanding any other law, the department of education shall defer until after June 30, 2022 but not later than July 12, 2022 $262,040,000 of the basic state aid and additional state aid payments that otherwise would be apportioned to school districts during fiscal year 2021‑2022 pursuant to section 15-973, Arizona Revised Statutes. The funding deferral required by this subsection does not apply to charter schools or to school districts with a student count of less than six hundred pupils. The department of education shall make the deferral by reducing the apportionment of state aid for each month in the fiscal year by the same amount.

B. In addition to any other appropriations made in fiscal year 2022‑2023, the sum of $262,040,000 is appropriated from the state general fund in fiscal year 2022-2023 to the department of education and the superintendent of public instruction for basic state aid and additional state aid entitlement for fiscal year 2022-2023. This appropriation shall be disbursed after June 30, 2022 but not later than July 12, 2022 to the several counties for the school districts in each county in amounts equal to the reductions in apportioning basic state aid and additional state aid that are required pursuant to subsection A of this section for fiscal year 2021‑2022.

C. Each school district shall include in the revenue estimate it uses to compute its tax rate for fiscal year 2021-2022 the monies it will receive pursuant to subsection B of this section.

Sec. 6. Appropriations; district additional assistance; charter additional assistance

A. The following amounts are appropriated from the state general fund in the following fiscal years to the department of education for district additional assistance prescribed in section 15-961, Arizona Revised Statutes:

1. $147,365,200 in fiscal year 2019-2020.

2. $82,979,300 in fiscal year 2020-2021.

3. $18,593,500 in fiscal year 2021-2022.

B. The following amounts are appropriated from the state general fund in the following fiscal years to the department of education for charter additional assistance prescribed in section 15-185, subsection B, paragraph 4, Arizona Revised Statutes:

1. $7,756,100 in fiscal year 2019-2020.

2. $4,367,400 in fiscal year 2020-2021.

3. $978,600 in fiscal year 2021-2022.