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ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
AMENDED
school districts; aggregate expenditure limitation
Purpose
Conditioned on enactment of S.C.R. 1034, modifies the statutory factors the Economic Estimates Commission must use to determine the aggregate expenditure limit for school districts.
Background
Article IX, Section 21 of the Arizona Constitution establishes the aggregate expenditure limit that limits the spending for school districts to the FY 1980 spending level plus 10 percent, adjusted for inflation and enrollment. The Economic Estimates Commission, before May 1 of each year, must determine the aggregate expenditure limit for all school districts for the following fiscal year (Ariz. Const. art. 9 § 21).
The State Board of Education, by November 1 of each year, must 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 Chairperson of the Joint Legislative Budget Committee. If the aggregate expenditures of local revenues for all school districts exceeds the limit, the State Board of Education must notify each school district of the amount by which it may have to reduce its local revenue expenditures. The Legislature may authorize, by March 1st, current fiscal year expenditures in excess of the limitation upon a two-thirds vote in both chambers of the Legislature (A.R.S. § 15-911).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Modifies the definition of base limit to be the total amount of expenditures of local revenues of all school districts in FY 2021, rather than in FY 1980, which is used to determine the aggregate expenditure limit for school districts.
2. Requires, in determining the aggregate expenditure limit for all school districts, the Economic Estimates Commission to determine the:
a) aggregate student population for school year 2020, rather than for school year 1979; and
b) estimated or actual gross domestic product price deflator for the 2019 calendar year, rather than for the 1978 calendar year.
3. Conditions the enactment of this legislation on the passage of the constitutional amendment in S.C.R. 1034 at the next general election.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date or later, subject to the provisions of the conditional enactment.
Amendments Adopted by Committee of the Whole
· Adds S.C.R. 1034 as part of the conditional enactment clause to the bill.
Senate Action
APPROP 2/11/20 DP 8-0-1
Prepared by Senate Research
February 18, 2020
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