REVISED

ARIZONA STATE SENATE

RESEARCH STAFF

JEFFREY ONG

LEGISLATIVE RESEARCH ANALYST

EDUCATION COMMITTEE

Telephone: (602) 926-3171

TO:                  MEMBERS OF THE SENATE

                        EDUCATION COMMITTEE

DATE:            April 14, 2021

SUBJECT:      Strike everything amendment to H.B. 2403, relating to average daily membership; course requirements

Purpose

            Removes the prescribed instructional hour and course requirements from the calculation of average daily membership (ADM) for full-time and part-time high school students.

Background

Under the school finance formula, students are counted using ADM which is the total enrollment of fractional and full-time students, minus withdrawals, of each school day through the first 100 days of the school year. High school students' ADM, and corresponding funding amounts, are fractionalized based on the number of subjects the student takes and the total number of hours the student attends those subjects based on a 180-day school year (A.R.S. § 15-901).

A full-time student generates 1.0 ADM and the full allotment of funding for the student's school district or charter school of attendance. Full-time high school students must attend at least four subjects that each meet for at least 123 hours. Furthermore, the student is required to attend class for a total of 720 hours. This means high school students must either enroll in more classes or attend the minimum four subjects for longer than 123 hours each in order to generate a full 1.0 ADM (A.R.S. § 15-901). The statutory requirements for ADM are as follows:

Full-Time and Part-Time ADM Calculation for High School Students
ADM	Number of Hours Per Course	Number of Subjects	Total Instructional Time
1.0	123 Hours	At least 4	At least 720 Hours
0.75	123 Hours	At least 3	At least 540 Hours
0.5	123 Hours	At least 2	At least 360 Hours
0.25	123 Hours	At least 1	At least 180 Hours

The Joint Legislative Budget Committee (JLBC) fiscal note indicates H.B. 2403 could increase the Basic State Aid formula costs of part-time high school students by approximately $4.4 million each year. This is based on the reported 5,000 ADM in the 2020-2021 school year of part-time high school students enrolled in Arizona public schools and assumes the average Basic State Aid formula funding would increase by $875 per part-time student, or approximately 0.125 ADM (JLBC Fiscal Note).

Provisions

1. Modifies the ADM calculation for a full-time high school student by removing the prescribed minimum 123-hour instructional requirement, or the equivalent, for each subject.

2. Modifies the ADM calculation for a part-time high school student by:

a) removing the required number of enrolled subjects and total instructional hours; and

b) calculating ADM based on the number of instructional hours in a student's program divided by 720 hours, rounded down to the nearest hundredth.

3. Specifies a high school pupil's attendance is not counted as a full day, unless the pupil attends at least three-quarters of the instructional time scheduled for the day, based upon 720 instructional hours in a 180-day school year.

4. Makes technical and conforming changes.

5. Becomes effective on the general effective date.

Revisions

· Updates the fiscal impact statement.