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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
school districts; understatement; expenditures
Purpose
An emergency measure that allows a school district (district) to spend monies levied and collected, under certain circumstances, if an initial budget was adopted based on an understatement of the small school adjustment.
Background
Current statute provides a budget-limit exemption to small districts. Elementary districts qualify for the small school adjustment if the district’s student count is 125 students or less. Districts may use the small school adjustment for both M&O and capital expenses. The small school adjustment is based on the assumption that, due to economies of scale, large districts achieve savings that are not available to these small districts.
For FY 2019, the Bouse Elementary School District adopted an initial budget that was based on an understatement of the small school adjustment. The La Paz County Board of Supervisors levied and collected property taxes on behalf of the district based on the correct small school adjustment. The Bouse Elementary School District then adopted a corrected budget for FY 2019 that was based on the correct statement of the small school adjustment.
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows a district to spend monies levied and collected on behalf of the school if:
a) the district is an elementary district located in a county with a population of less than 21,000 persons but more than 20,000 persons;
b) the district's total attending average daily membership as reported in the Superintendent of Public Instruction's annual report for FY 2017 is less than 30 but more than 25;
c) the district adopted an initial budget for FY 2019 that was based on an understatement of the small school adjustment;
d) the county Board of Supervisors levied and collected property taxes on behalf of the district based on the correct small school adjustment; and
e) after the county Board of Supervisors levied and collected property taxes, the district governing board adopted a corrected budget for FY 2019 that was based on the correct statement of the small school adjustment.
2. Becomes effective on signature of the Governor, if the emergency clause is enacted.
House Action
WM 1/23/19 DP 10-0-0-0
3rd Read 1/30/19 59-0-1
Prepared by Senate Research
February 4, 2019
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