ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

First Regular Session

 

HCR2025: school districts; expenditure limit; authorization.

Sponsor: Representative Udall, LD 25

Committee on Education

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 annually, 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 annually, 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.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteAuthorizes the expenditure of local revenues by school districts in excess of the expenditure limitation in FY 2021. (Sec. 1)

2.   Requires two-thirds vote in both the House of Representatives and Senate to become effective. (Sec. 1)

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6.                     HCR 2025

7.   Initials CH Page 0 Education

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