ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

House: 3rd Read 45-14-1-0

Senate: 3rd Read 23-6-1-0

HCR2039: school district expenditures; authorization.

Sponsor: Representative Bowers, LD 25

Transmitted to the Secretary of State

Overview

Authorizes school districts to exceed the aggregate expenditure limitation (AEL) by $1,154,028,997 in FY 2022.

History

The Arizona Constitution requires the Economic Estimates Commission (EEC) to determine, before May 1 annually, the AEL for all school districts for the following fiscal year (Ariz. Const. art. IX, sec. 21). The AEL 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 1 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 exceeds the AEL, 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 1, expenditures in excess of the AEL for the current fiscal year upon two-thirds vote in both the House of Representatives and the Senate.

For FY 2022, the EEC calculated the AEL to be $6,019,638,192. SBE calculated the aggregate expenditures of local revenues to be $7,173,667,189. This means for FY 2022 school districts will exceed the AEL by $1,154,028,997.

Provisions

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteAuthorizes, in FY 2022, school districts to spend $1,154,028,997 in local revenues in excess of the AEL.

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

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6.                     HCR 2039

7.   Initials CH Page 0 Transmitted

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