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ARIZONA HOUSE OF REPRESENTATIVESFifty-fifth Legislature First Regular Session |
House: APPROP DP 7-6-0-0 |
HB 2898: K-12 education; budget reconciliation; 2021-2022.
Sponsor: Representative Cobb, LD 5
Caucus & COW
Contains budget reconciliation provisions relating to K-12 Education needed for implementing the FY 2022 budget.
History
The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2, Constitution of Arizona, requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt. Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate bills known as Budget Reconciliation Bills (BRBs). These BRBs are prepared according to subject area.
Funding Formulas
1. Increases the base level to $4,390.65 for FY 2022. (Sec. 19)
2. Increases the state support level per route mile for FY 2022 as follows:
a) From 2.74 to 2.77 for 0.5 or less approved daily route mileage per eligible student transported;
b) From 2.24 to 2.27 for more than 0.5 through 1.0 approved daily route mileage per eligible student transported; and
c) From 2.74 to 2.77 for more than 1.0 approved daily route mileage per eligible student transported. (Sec. 24)
3. Increases the support level weights for the following Group B funding categories:
a) MD-SC, A-SC and SID-SC from 5.833 to 5.988; and
b) DD, ED, MIID, SLD, SLI and OHI from 0.003 to 0.093. (Sec. 23)
4. Creates a Group B funding category of G and assigns it a support level weight of 0.007. (Sec. 23)
a) Defines G to mean educational programs for gifted pupils who score at or above the 97th percentile, based on national norms, on a test adopted by the State Board of Education (SBE). (Sec. 19)
b) Removes gifted pupils from the definition of Group A. (Sec. 19)
5. 
Increases charter additional assistance
(CAA) as follows:
a) From $1,875.21 to $1,897.90 per student count in preschool programs for children with disabilities (PSD), kindergarten programs and the 1st-8th grades; and
b) From $2,185.53 to $2,211.97 per student count in the 9th-12th grades. (Sec. 2)
6. Establishes the qualifying tax rate in tax year 2021 as follows:
a) $1.7694 for a high school district or a common school district within a high school district that does not offer instruction in high school subjects; and
b) $3.5388 for a unified school district, a common school district not within a high school district or a common school district within a high school district that offers instruction in high school subjects. (Sec. 32)
7. Adjusts the state equalization assistance property tax rate in tax year 2021 to $0.4263. (Sec. 32)
8. Modifies when apportionments of state aid are made to school districts and charter schools as follows:
a) Removes the requirement that 1/12 of the total amount be apportioned by the close of business on the last day of June;
b) Adds that 1/12 of the total amount is to be apportioned by the close of business on the 15th day of business of July; and
c) Requires 1/12 of the total amount to be apportioned by the close of business on the 15th day of business, rather than the 1st day of business, of August through June. (Sec. 25)
9. Authorizes the Arizona Department of Education (ADE) to require local education agencies to submit the student level data necessary to determine the apportionment of state aid by July 1st and by the first day of each month thereafter. (Sec. 25)
10. Permits the Buckeye Union High School District to submit corrections to the teacher experience index (TEI) data by August 15, 2021 and use the resulting TEI to determine its base support level for FY 2021. (Sec. 37)
Results-Based Funding Fund (RBF Fund)
11. Directs ADE to distribute monies from the RBF Fund for FY 2022 to each school operated by a school district or charter holder as follows:
a) $225 per student count if the school:
i. Had fewer than 60% of students eligible for free or reduced-price lunches (FRPL) at the time the spring 2019 statewide assessment was administered; and
ii. Performed in the top 13% of all schools on the mathematics and language arts portions of the spring 2019 statewide assessment;
b) $400 per student count if the school:
i. Had 60% or more of students eligible for FRPL at the time the spring 2019 statewide assessment was administered; and
ii. Performed in the top 13% of schools on the mathematics and language arts portions of the spring 2019 statewide assessment;
c) $225 per student count if the school:
i. Had 60% or more of students eligible for FRPL at the time the spring 2019 statewide assessment was administered; and
ii. Performed in the top 27%, but not in the top 13%, of schools on the mathematics and language arts portion of the spring 2019 statewide assessment. (Sec. 35)
12. Directs ADE to distribute $400 per student count from the RBF Fund to each alternative high school if the school:
a) Performed in the top 27% of schools that had more than 60% of students eligible for FRPL on the mathematics and language arts portions of the spring 2019 statewide assessment; and
b) Reports the average percentage of students who obtained a passing score on the mathematics and language arts portions of the spring 2019 statewide assessment. (Sec. 35)
In Lieu of Transportation Grants (ILT Grants)
13. Allows a school district, beginning the 2021-2022 school year, to use a portion of its transportation funding to provide in ILT Grants to parents of students who attend the school district pursuant to a plan submitted to ADE. (Sec. 22)
14. Permits, beginning the 2021-2022 school year, a charter school to use a portion of its CAA funding to provide ILT Grants to parents of students who attend the charter school pursuant to a plan submitted to ADE. (Sec. 22)
15. Details that school districts and charter schools may issue ILT Grants to support individual parents or neighborhood carpools in transporting students to school. (Sec. 22)
16. Prohibits a school district's transportation funding allocation from being reduced if the school district awards ILT grants. (Sec. 22)
17. Requires participating charter schools, as required by ADE, to report to ADE regarding the monies awarded to parents. (Sec. 22)
18. Instructs ADE to adopt policies to account for ILT Grant expenditures and to require proof of attendance for students whose transportation is supported through the ILT Grants. (Sec. 22)
Public School Transportation Modernization Grants Program (PSTMG Program)
19. Establishes the PSTMG Program in the Arizona Department of Administration (ADOA). (Sec. 39)
20. Requires ADOA to select an organization to administer the PSTMG Program and outlines requirements the administrator must meet to be selected. (Sec. 39)
21. Directs the administrator to distribute grants to school districts, charter schools or other eligible entities and outlines application and reporting requirements. (Sec. 39)
22. Requires ADE, ADOA and any grant recipient to provide information that is deemed necessary by the administrator to complete the reports and details what the reports must include. (Sec. 39)
23. Instructs the administrator to distribute appropriated monies based on demand and the most innovative solutions. (Sec. 39)
24. Mandates the administrator award at least 25% of grants to rural and remote proposals.
a) Allows the administrator to award fewer than 25% of grants if an insufficient number of qualified remote and rural proposals is submitted. (Sec. 39)
25. Allows the administrator to retain up to 5% of monies appropriated each fiscal year for administration. (Sec. 39)
26. Repeals the PSTMG Program on January 1, 2025. (Sec. 39)
Extraordinary Special Education Needs Fund (ESEN Fund)
27. States that ESEN Fund monies are continuously appropriated, rather than subject to legislative appropriation. (Sec. 16)
28. Transfers administration of the ESEN Fund from SBE to ADE. (Sec. 16)
29. Allows ADE to retain up to 2% of ESEN Fund monies for administration. (Sec. 16)
30. Requires ADE to award ESEN Fund monies to school districts and charter schools with eligible claims. (Sec. 16)
31. Specifies that a school district or charter school is eligible to receive ESEN Fund monies if it is demonstrated that a student receiving special education services has incurred current year costs of at least three times the statewide per pupil funding average. (Sec. 16)
32. Modifies the required information that must be contained in an application for ESEN Fund monies. (Sec. 16)
33. Allows a school district or charter school to submit a claim for up to the full fiscal year if the expense incurred at the time of filing will continue to be incurred in subsequent quarters until the end of the same fiscal year. (Sec. 16)
34. Specifies that total costs submitted must be itemized and attributable to the student for whom the claim is being submitted. (Sec. 16)
35. Allows a school district or charter school to submit a claim for expenses incurred as a result of an independent educational evaluation. (Sec. 16)
36. Removes language that mandates ESEN Fund grants be used in the current year and that all unspent monies return to ADE at the end of the fiscal year. (Sec. 16)
37. Requires ADE to evaluate claim requests on a quarterly basis. (Sec. 16)
38. Outlines how ADE is to prioritize funding if there are insufficient ESEN Fund monies to cover all eligible claims within a given quarter. (Sec. 16)
39. Provides a mechanism for:
a) ADE to notify a school district or charter school to revise its claim if there is insufficient information; and
b) The school district or charter school to revise its claim and receive funding if an additional expense is incurred for a student who received funding for a claim in the same fiscal year. (Sec. 16)
40. Instructs ADE to annually adopt and post on its website ESEN Fund policies and procedures. (Sec. 16)
41. Requires, by December 15 annually, ADE to submit a report to the Governor, President of the Senate, Speaker of the House of Representatives, Joint Legislative Budget Committee (JLBC) and the Governor's Office of Strategic Planning and Budgeting (OSPB) that contains specified information regarding the ESEN Fund. (Sec. 16)
Industry-Recognized Certification and Licensure Reimbursement Fund (IRCLR Fund)
42. Establishes the IRCLR Fund that is administered by ADE and consists of legislative appropriations, gifts, grants and other donations. (Sec. 27)
43. States that IRCLR Fund monies are continuously appropriated and exempt from lapsing. (Sec. 27)
44. Instructs ADE to use IRCLR Fund monies to eliminate or reduce exam costs to obtain industry-recognized certificates and licenses for low-income students. (Sec. 27)
45. Details the qualifications and requirements a student must meet to qualify for a reimbursement. (Sec. 27)
46. Specifies that if available IRCLR Fund monies are insufficient to cover the costs of all qualified applicants, ADE must reduce each student's reward amount in proportion to the exam cost. (Sec. 27)
School Facilities Board (SFB)
47. Allows SFB to spend monies from the Building Renewal Grant (BRG) Fund for assessments to determine whether a BRG is warranted. (Sec. 30)
48. Modifies the costs per square foot from the New School Facilities Fund formula for additional space as follows:
a) From $90 to $270.24 for PSD, kindergarten programs and the 1st-6th grades;
b) From $95 to $285.30 for the 7th-8th grades; and
c) From $110 to $330.30 for the 9th-12th grades. (Sec. 31)
49. Applies the updated costs per square foot to new school facilities that were previously approved by SFB for specified school districts. (Sec. 40)
50. Applies each annual construction market adjustment to all new school construction projects approved by SFB during that year. (Sec. 31)
Investigative Unit and Investigations of Personnel
51. Requires SBE, rather than ADE, to direct and oversee the work of all investigators related to investigating certificated persons, persons seeking certification and noncertificated persons (persons) for immoral or unprofessional conduct. (Sec. 3, 5)
52. Instructs SBE, rather than ADE, to adopt rules prescribing procedures to investigate complaints alleging that a person engaged in immoral or unprofessional conduct. (Sec. 3)
53. Designates investigators as SBE employees and specifies that they are to be housed within SBE. (Sec. 3, 5)
54. Allows SBE to issue subpoenas to compel the attendance and testimony of witnesses and production of documents or physical evidence in connection with an investigation or hearing of an allegation that a person engaged in immoral or unprofessional conduct. (Sec. 3)
55. Permits SBE to petition the superior court to enforce a subpoena, if the subpoena is disobeyed. (Sec. 3)
56. States that any failure to obey a court order may be punished by the court as contempt. (Sec. 3)
57. Repeals statute that allows ADE to issue subpoenas relating to the investigation of a complaint that a certificated person engaged in immoral or unprofessional conduct. (Sec. 4)
58. Requires ADE to provide SBE access to the Educator Information System and any related systems that are deemed necessary by SBE to investigate and adjudicate allegations of conduct constituting grounds for disciplinary action. (Sec. 8)
59. Grants immunity from civil liability to SBE if SBE provides information to a school district regarding a person seeking employment unless the information meets prescribed factors. (Sec. 12)
60. Requires the Director of the Arizona Department of Public Safety (DPS) to authorize the exchange of criminal justice information with SBE to evaluate the fitness of a person if SBE has reasonable suspicion that the person engaged in specified conduct. (Sec. 33)
61. Requires ADE, rather than SBE, to provide DPS with current and updated lists of email addresses for each school district. (Sec. 33)
62. Makes conforming changes relating to the investigative unit and investigations. (Sec. 3, 8, 10, 11, 13, 33)
Open Enrollment Policies
63. Adds that a school district governing board's policies or procedures regarding changing or adopting attendance boundaries must include an assurance that students assigned to a new attendance area may stay enrolled in their current school if:
a) The school remains open; and
b) Capacity is available. (Sec. 6)
64. Prohibits attendance boundaries from being used to require students to attend certain schools based on the student's place of residence. (Sec. 6)
65. Requires a school district governing board's open enrollment policies to:
a) Include information that:
i. Is prescribed by SBE for describing open enrollment options;
ii. Is needed to request enrollment and that is consistent with guidance and state and federal law regarding pupil privacy and civil rights; and
iii. Describes the provision of transportation or resources for transportation;
b) Be easily accessible on the school website's home page in English, Spanish or in any other language used by a majority of the populations served. (Sec. 18)
66. Instructs a school district to update, on each school's website at least once every 12 weeks unless there are no changes to report, the school's capacity and whether the school is currently accepting open enrollment students, by grade level.
a) Directs a school to also post this information by specialized program, if the school has any other separate capacity by specialized program. (Sec. 18)
67. Requires schools to accept pupils throughout the school year as capacity allows and as seats become available. (Sec. 18)
68. States that if a pupil is denied access due to capacity, the pupil must be informed that they are on a wait list and of the details regarding an equitable selection process. (Sec. 18)
69. Mandates a school district enroll at any time any resident pupil who applies for enrollment to the school district. (Sec. 18)
70. Instructs a school district to give enrollment preference to and reserve capacity for:
a) Resident pupils;
b) Pupils returning to the school from the prior year; and
c) Siblings of pupils already enrolled. (Sec. 18)
71. Allows a school district to give enrollment preference to children who:
a) Meet the definition of unaccompanied youth; or
b) Attend a school that is closing. (Sec. 18)
72. Allows a school district to give enrollment preference to and reserve capacity for:
a) Resident transfer pupils and their siblings; and
b) Pupils who meet additional criteria established and published by the school district governing board. (Sec. 18)
73. Requires a school or school district, if remaining capacity at the school is insufficient to enroll all pupils who submit a timely request, to select pupils through an equitable selection process.
a) Specifies that the equitable selection process may be conducted through a lottery.
b) Stipulates that preference must be given to the siblings of a pupil selected through an equitable selection process. (Sec. 18)
74. Prohibits a school from limiting admission based on specified factors. (Sec. 18)
75. Allows a school district governing board to provide transportation of no more than 30 miles, rather than 20 miles, each way for nonresident pupils eligible for FRPL. (Sec. 18)
76. Requires a governing board to provide transportation of no more than 30 miles, rather than 20 miles, each way for nonresident pupils with disabilities whose individual education program specify that transportation is necessary. (Sec. 18)
77. Instructs SBE to adopt a model format that school districts may use for describing open enrollment options to ensure clarity and consistency for parents. (Sec. 18)
78. Requires ADE to investigate and enforce any complaints or substantiated claims of unlawful or inappropriate enrollment practices by school districts pursuant to state and federal law.
a) Directs ADE to refer any complaints received regarding charter schools to the Arizona State Board for Charter Schools (ASBCS).
b) Directs ADE to regularly update SBE on its investigations. (Sec. 18)
79. Instructs ADE to develop an annual participation report that informs the public and policymakers of the open enrollment participation rate by school district, school and county.
a) Outlines the information the participation report must contain. (Sec. 18)
80. Instructs SBE, subject to the availability of appropriated monies and every January, to design a public awareness effort and distribute materials regarding open enrollment and school choice.
a) Allows SBE to collaborate with public and private partners and ADE. (Sec. 18)
81. Defines resident pupil. (Sec. 17)
Disclosure of Student Level Data
82. Requires ADE to adopt policies and procedures that allow county school superintendents, SBE and ASBCS access to student level data for currently enrolled students. (Sec. 26)
83. Instructs ADE to develop policies and procedures, as prescribed by interagency-data sharing agreements, that:
a) Are to be implemented by county school superintendents, SBE and ASBCS; and
b) Comply with the Family Educational Rights and Privacy Act and privacy laws and policies, including policies that manage access to personally identifiable information. (Sec. 26)
84. Details that ADE's policies and procedures must:
a) Contain a detailed data security plan that includes specified guidelines, standards, procedures and policies;
b) Ensure that written agreements involving the disclosure of student level data comply with prescribed conditions, requirements and specifications;
c) Ensure that work products from the use of student level data do not conflict with any state and federal reporting; and
d) Provide access to student level data through an online platform within the parameters of federal law. (Sec. 26)
85. Exempts a homeschool student with an affidavit on file from ADE’s policies and procedures regarding student level data access. (Sec. 26)
School Financial Transparency Portal (Portal) and Report Card Data
86. Directs ADOA, beginning in FY 2022, to develop a transparent and easily accessible Portal. (Sec. 15)
87. Details the school level data the Portal must include for charter schools, individual schools operated by a school district and school districts. (Sec. 15)
88. Instructs ADOA to contract with a third party to develop the Portal.
a) Specifies the experience and requirements the third party must demonstrate to be selected. (Sec. 15)
89. Requires ADE, ASBCS and the Auditor General to provide and assist with any necessary data or financial information ADOA or the selected contractor requests to implement the Portal. (Sec. 15)
90. Removes the requirement, beginning FY 2022, that a school report card contain outlined school level data and instead requires the school report card to have a link to access the Portal. (Sec. 14)
91. Contains a retroactivity clause of July 1, 2021. (Sec. 43)
School Finance Data System Replacement
92. Requires ADE, before each expenditure of any monies appropriated for school finance system replacement, to submit the purpose and estimated costs of the expenditure to ADOA and the Information Technology Authorization Committee for review and approval. (Sec. 38)
93. Directs ADOA to detail development milestones for the replacement of the school finance data system within 30 days after the last day of FY 2021, in consultation with ADE. (Sec. 38)
94. Details what the milestones must include. (Sec. 38)
95. Stipulates that to close a milestone and be eligible to receive funding for complete work on any major milestone or critical deliverable for the replacement of the school finance data system, ADE must receive approval from the Superintendent of Public Instruction (SPI) and the Director of ADOA. (Sec. 38)
96. Mandates ADE submit an expenditure plan on the staffing of the school finance data system project for review by ADOA. (Sec. 38)
97. Instructs ADE to use a portion of the monies appropriated for school finance data system replacement to engage with a third party to conduct independent verification and validation related to the replacement of the school finance data system. (Sec. 38)
98. Requires ADOA to define the terms of any agreement with a third party that conducts independent verification and validation related to the replacement of the school finance data system. (Sec. 38)
99. Directs ADE to update all current agreements with third parties that conduct independent verification and validation related to the replacement of the school finance data system. (Sec. 38)
100. Contains a legislative intent clause. (Sec. 38)
Peach Springs Unified School District Crisis Management Team (Team)
101. Extends the Team, as established by Laws 2020, Chapter 26, from April 1, 2021 to April 1, 2022. (Sec. 34)
102. Eliminates language that prescribes the members of the Team. (Sec. 34)
103. Strikes the ability for the SPI to retain a portion of state monies entitled to Peach Springs Unified School District to compensate Team members. (Sec. 34)
104. Requires the Team to submit a preliminary report by July 1, 2021, rather than July 1, 2020, and a final report by December 31, 2021, rather than December 31, 2020. (Sec. 34)
105. Contains a retroactivity clause of April 2, 2021. (Sec. 43)
Learning Loss and Federal Monies Reporting
106. Mandates, by July 1, 2021, school districts and charter schools to report to ADE whether they offered in-person, teacher-led instruction for at least 100 days in the 2020-2021 school year.
a) Specifies that the report must delineate the number of days of in-person, teacher-led instruction that was offered by school site.
b) Instructs ADE, by August 1, 2021, to compile this information and submit a report to JLBC and OSPB. (Sec. 36)
107. Requires ADE to post on its website, by September 1, 2021, school district and charter school plans to address learning loss by spending Elementary and Secondary School Emergency Relief Fund (ESSERF) monies appropriated to Arizona by the American Rescue Plan Act (ARPA). (Sec. 36)
108. Directs OSPB to post on its website its allocation of $350,000,000 of Coronavirus State Fiscal Recovery Fund monies appropriated to Arizona by ARPA to school districts and charter schools for assistance to supplement monies provided by ESSERF. (Sec. 36)
Career Technical Education Districts (CTEDs)
109. Adds that students in an approved CTED centralized campus or leased campus centralized program may generate an average daily membership (ADM) during any day of the week and at any time between July 1 and June 30 of each fiscal year. (Sec. 9)
110. Allows a CTED, a school district that is part of a CTED or a charter school to include students who are in the 9th grade or in the school year immediately following graduation in the calculation of student count or ADM. (Sec. 9)
111. Allows a CTED to include a student who is enrolled in an internship course as part of a CTED program in student count. (Sec. 9)
112. Restricts funding for the same student to not more than four years. (Sec. 9)
113. Details ADM calculations for students who are in the 9th grade or in the school year immediately following graduation and enrolled in a CTED course. (Sec. 9)
114. Requires the Arizona Office of Economic Opportunity (OEO), in collaboration with ADE and by September 1st annually, to compile an in-demand regional education list (List) of the approved career technical education (CTE) programs that lead to a career path in high demand with median-to-high wages in that region. (Sec. 9)
115. Directs OEO to include industry feedback as part of developing the List. (Sec. 9)
116. Requires OEO to submit the List to the Arizona Career and Technical Education Quality Commission for review and approval. (Sec. 9)
117. Permits funding for a student in the 9th grade only if the student reaches the 40th day of the 11th grade enrolled in an approved CTE program that is included on the List for the student's region in the year they began the program. (Sec. 9)
118. Allows funding for a student in the school year immediately following graduation only if the student is enrolled in an approved CTE program included on the List for the student's region in the year they began the program. (Sec. 10)
119. Adds a separate listing of information to ADE's annual CTED report that contains outlined information regarding students who are in the 9th grade and eligible to receive funding, in the school year immediately following graduation or enrolled in an internship course. (Sec. 10)
Arizona State Schools for the Deaf and Blind (ASDB)
120. Creates the Cooperative Service Fund (CS Fund) that consists of monies from:
a) ADE for special education institutional vouchers for deaf and blind students who are enrolled in regional school cooperatives;
b) Membership fees paid by school districts and charter schools participating in regional school cooperatives; and
c) Fee-for-service payments made by school districts and charter schools on behalf of students enrolled in regional school cooperatives for whom the schools do not receive a special education institutional voucher. (Sec. 29)
121. Provides that monies dedicated to regional school cooperatives are to be deposited in the CS Fund, rather than be continuously appropriated. (Sec. 29)
122. Tasks ASDB with administering the CS Fund.
a) States that monies are subject to legislative appropriation and exempt from lapsing. (Sec. 29)
123. Defines regional school cooperatives. (Sec. 29)
Miscellaneous
124. Declares that the State may only enforce statutory or regulatory requirements for the 2020-2021 school year that are consistent with the approved waiver of the accountability, school identification and related reporting requirements awarded by the United States Department of Education. (Sec. 41)
125. Asserts, notwithstanding any other law or order, that a school district governing board or a charter school governing body may make the final determination on any policy that requires students and staff to use face coverings during school hours and on school property. (Sec. 7)
126. Clarifies that a school, rather than a school district or charter school, may deliver, define, or reallocate instructional time and hours under an adopted instructional time model as specified in Laws 2021, Chapter 299. (Sec. 20)
127. Increases the maximum possible transfer of unclaimed lottery prize monies to the Tribal College Dual Enrollment Program Fund from $250,000 to $325,000 in a fiscal year. (Sec. 1)
128. Requires SBE to also report the aggregate expenditures of local revenues calculation to OSPB. (Sec. 21)
129. Instructs the State Treasurer, by September 1 annually, to report to JLBC and OSPB on prior and current fiscal year distributions made from the Student Support and Safety Fund and the Career Training and Workforce Fund to specified entities. (Sec. 28)
130. Contains a legislative intent clause relating to classroom spending. (Sec. 42)
131. Makes technical changes. (Sec. 1, 2, 3, 6, 8, 9, 14, 16, 18, 19, 20, 21, 29)
132. Makes conforming changes. (Sec. 3, 5, 8, 9, 10, 16, 17, 18, 19, 25, 34)
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HB 2898
Initials CH Page 0 Caucus & COW
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