ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House: ED DP 12-0-0-1

HCR2023: school districts; expenditure limit; authorization

Sponsor: Representative Kern, LD 20

House Engrossed

Overview

Authorizes the expenditure of local revenues by school districts in excess of the aggregate expenditure limitation in FY 2021.

History

The Arizona Constitution requires the Economic Estimates Commission to determine before May 1st of each year the aggregate expenditure limitation for all school districts for the following fiscal year (Ariz. Const. art. IX, sec. 21). The aggregate expenditure limit is calculated by annually adjusting the expenditures of local revenues for all school districts in FY 1980 to reflect the changes in student population and the cost of living and multiplying the result by 1.10.

By November 1st of each year, the State Board of Education (SBE) is required to report the aggregate expenditures of local revenues for all school districts for the current year to the President of the Senate, Speaker of the House of Representatives and Chairman of the Joint Legislative Budget Committee (A.R.S. § 15-911). If the aggregate expenditures of local revenues for all school districts exceed the aggregate expenditure limitation, two options may occur: 1) SBE must notify each school district of the amount by which it may have to reduce its expenditures of local revenues; or 2) the Legislature may authorize by March 1st expenditures in excess of the limitation for the current fiscal year upon two-thirds vote in both the House of Representatives and the Senate.

The state Constitution defines local revenues to include all monies, revenues, funds, property and receipts of any kind received by or for the account of a school district. However, certain revenues are exempted, such as federal grants and aid except school assistance in federally affected areas, voter-approved bonds and overrides, monies received from the School Facilities Board and Proposition 301 monies.

Provisions

1. Authorizes the expenditure of local revenues by school districts in excess of the aggregate expenditure limitation in FY 2021.

2. Requires two-thirds vote in both the House of Representatives and Senate to become effective.

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6. Initials CH House Engrossed

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