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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
K-12 education; 2022-2023.
Purpose
Makes statutory and session law changes relating to K-12 education necessary to implement the FY 2023 state budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.
S.B. 1733 contains the budget reconciliation provisions for changes relating to K-12 education.
Provisions
Base Support Level
1. Increases the base level for FY 2023 from $4,390.65 to $4,736.63.
2. Increases, from 0.093 to 0.292, the Group B support level weight for children with developmental delays (DD), emotional disabilities (ED), mild intellectual disabilities (MIID), a specific learning disability (SLD), a speech or language impairment (SLI) and other health impairments (OHI).
3. Repeals the 1.25 percent base level increase for additional teacher compensation for school districts that are approved by the State Board of Education (SBE) as meeting recommended standards relating to teacher evaluations.
Transportation Funding
4. Increases the transportation support level formula per-route-mile amount for FY 2023 as follows:
|
FY 2022 |
FY 2023 |
|
|
0.5 or less |
2.77 |
2.83 |
|
Over 0.5 through 1.0 |
2.27 |
2.32 |
|
Over 1.0 |
2.77 |
2.83 |
Additional Assistance
5. Increases the district additional assistance (DAA) amount per student count for FY 2023 as follows:
7. Increases the charter additional assistance amount per student count for FY 2023:
a) from $1,897.90 to $2,057.32 for preschool programs for children with disabilities, kindergarten programs and grades 1 through 8; and
b) from $2,211.97 to $2,397.78 for grades 9 through 12.
Equalization Assistance Tax Rates
8. Repeals the requirement that each county board of supervisors annually levy a state equalization assistance property tax rate (SETR) and removes the subtraction of SETR distributions from state equalization assistance provided to a school district.
9. Conforms the tax year 2022 qualifying tax rates to reflect the required truth-in-taxation rate adjustment.
Results-Based Funding
10. Continues to suspend the statutory Results-Based Funding distributions and requires the Arizona Department of Education (ADE) to distribute monies from the Results-Based Funding Fund in FY 2023 as follows:
a) $225 per student count for each district or charter school that:
i. has less than 60 percent of enrolled pupils eligible for free or reduced-price lunches (FRPL) or an equivalent measure, including the community eligibility provision; and
ii. performed in the top 13 percent of all Arizona schools on the statewide assessment in spring 2021;
b) $400 per student count for each district or charter school that:
i. has at least 60 percent of enrolled pupils eligible for FRPL, or an equivalent measure including the community eligibility provision; and
ii. performed in the top 13 percent of schools on the statewide assessment in spring 2021 of those schools with at least 60 percent of enrolled pupils eligible for FRPL or an equivalent measure;
c) $225 per student count for each district or charter school that:
i. has at least 60 percent of enrolled pupils eligible for FRPL, or an equivalent measure including the community eligibility provision; and
ii. performed within the top 13.1 to 27 percent of schools on the statewide assessment in spring 2021 of those schools with at least 60 percent of enrolled pupils eligible for FRPL or an equivalent measure; and
d) $400 per student count for each alternative high school that performed in the top 27 percent of schools on the statewide assessment in spring 2021, with at least 60 percent of enrolled pupils eligible for FRPL or an equivalent measure.
Empowerment Scholarship Accounts Parent Oversight Committee
(Parent Oversight Committee)
11. Establishes the Parent Oversight Committee consisting of six members who are parents of students who:
a) receive empowerment scholarship account (ESA) monies;
b) are children with disabilities determined by an independent third party to be eligible to receive additional educational therapies or services as outlined; and
c) use ESA monies for the prescribed additional educational therapies or services permissible for children with disabilities.
12. Directs the Parent Oversight Committee to collaborate and interact with ADE, the SBE, the Attorney General and, as appropriate, the Auditor General to review:
a) the implementation of ESA Program policies and procedures and the Program's effectiveness;
b) the concerns of parents of students who receive ESA monies; and
c) the work of the Ombudsman-Citizens Aide on complaints associated with ESA Program administration.
13. Requires the following to each appoint two members to the Parent Oversight Committee:
a) the President of the Senate;
b) the Speaker of the House of Representatives; and
c) the Governor.
14. Requires the Parent Oversight Committee to annually elect a chairperson from among its members and meet at least once each calendar quarter.
15. Specifies that a majority of the membership constitutes a quorum for the transaction of business.
16. Prohibits a parent from serving on the Parent Oversight Committee who:
a) is an employee or relative of an employee of ADE;
b) receives monies or compensation from or is otherwise associated with a lobbyist organization, a school choice advocacy group or a private financial management firm that manages ESAs; or
c) provides goods or services to students that qualify as permissible ESA expenses.
Code Writers Initiative Program
17. Establishes the Code Writers Initiative Program (Program) within ADE to provide grants on a competitive basis and requires grantees to:
a) introduce a computer code writing curriculum for students in grades 9 through 12;
b) deliver a technology-focused education, which may be offered through after-school programs, to Native American students that will prepare them for the global economy;
c) instruct Native American students in computer code writing and work with industry partners to develop internships and programs that will be made available to students who complete Program curriculum;
d) instruct teachers and administrators in a technology-focused curriculum;
e) develop assessment metrics to measure progress to be used to determine the Program's effectiveness;
f) install audiovisual distance learning equipment at key delivery points to maximize the number of Program participants;
g) determine the impacts of the Program's curriculum and teacher instruction on students' standardized test scores and graduation rates; and
h) submit, by September 1, an annual report to the President of the Senate, Speaker of the House of Representatives, the ADE Indian Education Advisory Council (Council) and ADE containing detailed information on the Program requirements for the most recent school year.
18. Requires the Council to evaluate grant applications and make award recommendations to ADE.
19. Requires ADE to maximize available funding by awarding grants to participants that will leverage state monies by securing gifts, grants and donations from other sources.
Adult Education and Workforce Development Program Measurements
20. Directs, by July 1, 2024, the SBE, in cooperation with ADE, to adopt performance measures to evaluate the performance of the following adult education and workforce development programs:
a) the Continuing High School and Workforce Training Program (High School and Workforce Program);
b) the Adult Workforce Diploma Program (Workforce Diploma Program); and
c) the Community College Adult Education Workforce Development Program (Community College Program).
21. Requires the SBE-adopted performance measures to include:
a) measurements of adult learner progress toward earning a high school or high school equivalency (HSE) diploma;
b) the number of high school or HSE diplomas earned;
c) the number of industry-recognized credentials earned;
d) the number of adult learners or graduates who have matriculated at an institution of higher learning or postsecondary educational institution;
e) the number of adult learners or graduates who have newly-acquired employment, who are earning higher wages or who have obtained a better job or promotion; and
f) other relevant measures as adopted by the SBE, in cooperation with ADE.
22. Requires the SBE-adopted performance measures to:
a) allow for a comparable evaluation across adult education and workforce development programs; and
b)
take into consideration the
variety of learning levels of adult learners entering the programs.
High School and Workforce Program
23. Directs the SBE to establish a High School and Workforce Program that:
a) provides adult learners with alternative study services; and
b) leads to the issuance of a high school diploma and industry-recognized credentials.
24. Allows a high school diploma to be issued to a participating adult learner who meets statutory and SBE-adopted high school graduation requirements.
25. Requires the SBE to authorize eligible service providers to participate in the High School and Workforce Program and establish a school in partnership with a school district or charter school (program school).
26. Deems a service provider to be eligible for High School and Workforce Program participation if the provider:
a) is a 501(c)(3) nonprofit corporation or an adult education provider approved by ADE Adult Education Services; and
b) demonstrates at least a 10-year history of providing workforce training and career services in Arizona to persons:
i. who are at least 18 years old; and
ii. whose educational and training opportunities have been limited by educational disadvantages, disabilities or other barriers to education, such as a lack of affordable and reliable transportation, lack of child care or food insecurity.
28. Caps the terms of program school approval at:
a) for initial approval, two school years; and
b) for renewal of approval, four school years.
29. Conditions the renewal of program school approval on specific performance expectations, including student progression, graduation rates and earned industry-recognized credentials.
30. Caps total projected full-time enrollment of program schools at:
a) 600 in FY 2023;
b) 1,000 in FY 2024; and
c) 1,400 in FY 2025 and each subsequent fiscal year.
31. Directs ADE to develop application procedures for the High School and Workforce Program and requires a service provider to submit an application on behalf of a program school.
32. Requires a High School and Workforce Program application to include:
a) a description of the service provider's partnership with a school district or nonprofit charter school;
b) a description of the program school's administrative structure, activities, staff, budget and specific curriculum that is aligned with state academic standards;
c) the program school's academic calendar and a schedule describing the length of school day, program sequence, multidisciplinary courses, pace and instructional activities;
d) confirmation of the program school's location and a description of the program school's facility, including accessibility, available classroom space, childcare space and health and safety requirements;
e) a description of specific academic, behavioral and emotional support services the service provider will offer to enrolled adult learners;
f) a description of the adult learner and family supports that will be provided at no cost to adult learners, including on-site childcare, local transportation assistance, career and higher education counseling and job placement assistance;
g) a description of the available counseling services that assist adult learners in overcoming barriers to educational success, including educational disadvantages, homelessness, criminal history or disabling conditions;
h) a description of the career technical education (CTE) instruction the school will provide;
i) a description of specific Program outcomes, goals and metrics the school will use to determine adult learner success; and
j) the projected number of adult learners the school will enroll.
33. Requires the program school CTE instruction and courses to lead to industry-recognized credentials or result in an adult learner earning university or community college course credits.
34. Allows a service provider to partner with a community college district or career technical education district to provide CTE instruction.
High School and Workforce Program Funding, Compliance and Reporting
35. Requires
ADE to distribute to a program school $7,700 per full-time student and requires
part-time students to be funded in proportion to the number of enrolled courses
or hours of instruction.
36. Authorizes the SBE, if the total full-time enrollment requested by program schools exceeds the prescribed caps to prioritize funding to schools demonstrating the highest performance.
37. Requires the SBE to prioritize new program schools based on the adult learner services and supports outlined on their applications.
38. Deems a program school to be ineligible for any other school finance formula funding for enrolled adult learners, including transportation funding, Arizona online instruction funding, base support level funding and additional assistance.
39. Specifies that a program school is eligible to receive funding for any adult learner regardless of age.
40. Requires a program school to meet all applicable legal requirements for public schools, including:
a) requirements for student assessments and special education services; and
b) prohibitions against admission limits based on ethnicity, national origin, gender, income level, disabling condition, English language proficiency or athletic ability.
41. Prohibits a program school from:
a) conducting advertising or marketing campaigns directed at students currently enrolled in a school district or charter school;
b) undertaking any other activity that encourages students currently enrolled in a school district or charter school to stop attending in order to enroll in a program school; or
c) enrolling a student who, within the preceding 30 days, was enrolled in a school district or charter school.
42. Directs the SBE, if a service provider fails to meet any High School and Workforce Program requirements or SBE-adopted rules, to immediately:
a) initiate a process to bring the program school into compliance; or
b) revoke the school's authorization to participate.
43. Requires a program school to annually report to ADE the following information on adult learners enrolled in the school:
a) the number enrolled;
b) the graduation rate and average progress toward meeting graduation requirements;
c) the number and type of industry-recognized credentials earned;
d) the number of adult learners who have newly-acquired proficiency in the English language;
e) a descriptive summary of the academic, behavioral and emotional support services the service provider offers; and
f) information required by the SBE-adopted performance measures.
44. Requires, beginning in 2025, ADE to submit an annual report by December 15 evaluating High School and Workforce Program effectiveness to the Governor, President of the Senate, Speaker of the House of Representatives and Secretary of State.
45. Authorizes the SBE to adopt rules to administer the High School and Workforce Program.
Workforce Diploma Program
46. Establishes the Workforce Diploma Program within the SBE to assist a person who is at least 21 years old in earning a high school diploma and developing critical employability and career and technical skills to prepare for employment.
47. Directs the SBE to operate the Workforce Diploma Program in cooperation with ADE and allows the Program to be delivered in a campus-based, online or blended modality.
48. Requires the SBE to annually:
a) by August 15, issue a request for qualifications for Workforce Diploma Program providers (program providers) to participate in the Program; and
b) by October 15 and in consultation with ADE, approve all qualified program providers for placement on an approved program providers list.
49. Prescribes the following criteria for approval as a program provider:
a) be operating a regionally-accredited high school diploma-granting entity;
b) have the ability to develop a learning plan for each student that integrates graduation requirements and career goals;
c) provide a course catalog that includes all courses necessary to meet graduation requirements; and
d) have the ability to provide:
i. remediation opportunities in literacy and numeracy;
ii. career pathways coursework;
iii. preparation for industry-recognized credentials and stackable credentials;
iv. career placement services; and
v. academic skill intake assessments and transcript evaluations.
50. Specifies that program providers maintain approval status unless removed from the approved providers list for not meeting minimum performance standards.
51. Directs approved program providers to begin enrolling students by November 15 of each year.
52. Defines approved program provider as a public, nonprofit or other entity that meets Workforce Diploma Program requirements and does not receive federal or state funding or private tuition for a student who is funded through the Program.
Workforce Diploma Program Funding, Compliance and Reporting
53. Establishes the Adult Workforce Diploma Program Fund, administered by ADE and consisting of legislative appropriations, gifts, grants and other donations.
54. Specifies that Workforce Diploma Program Fund monies are continuously appropriated and exempt from lapsing.
55. Directs ADE to pay a program provider the following amounts from the Adult Workforce Diploma Program Fund for each student who completes the following milestones:
a) $250 for each half unit of high school credit;
b) $250 for each employability skills certification;
c) $250 for each industry-recognized credential or stackable credential requiring up to 50 hours of training;
d) $500 for each industry-recognized credential or stackable credential requiring between 50 and 100 hours of training;
e) $750 for each industry-recognized credential or stackable credential requiring over 100 hours of training; and
f) $1,000 for each high school diploma.
56. Directs each program provider, by the 10th calendar day of each month, to submit invoices to ADE for milestones met in the previous calendar month.
57. Directs ADE to:
a) pay program providers in the order in which monthly invoices are submitted until all available monies are exhausted; and
b) by the last calendar day of each month, provide a written update to program providers that includes the aggregate total dollars paid to providers to date and the estimated number of enrollments still available for the program year.
58. Requires the SBE, beginning with the end of the second fiscal year of the Workforce Diploma Program to review program provider data in cooperation with ADE to ensure that each provider is achieving minimum performance standards, including:
a) a graduation rate of at least 50 percent; and
b) an average cost per graduate of $7,000 or less.
59. Directs the SBE, in cooperation with ADE, to:
a) place a program provider that does not meet minimum performance standards on probationary status for the remainder of the fiscal year; and
b) remove, from the approved providers list, a provider that does not meet the minimum performance standards for two consecutive years.
60. Requires each program provider to annually report, by July 15, to the SBE:
a) the total number of students funded through the Workforce Diploma Program;
b) the total number of earned credits;
c) the total number of earned industry-recognized credentials or stackable credentials earned for each funding tier;
d) the total number of students who graduated through the Program; and
e) the information required by the SBE-adopted performance measures.
61. Defines terms.
Community College Program
62. Establishes the Community College Program, within the SBE to be operated in cooperation with ADE, to provide adult learners with integrated education and training programs and additional study and support services that lead to the issuance of both:
a) a high school or HSE diploma; and
b) an industry-recognized credential or a community college degree.
63. Requires a Community College Program applicant to be a community college that:
a) is a recognized high school or HSE diploma provider; and
b) provides education and workforce training that leads to industry-recognized credentials or community college degrees.
64. Allows the SBE, in cooperation with ADE, to request information from any Community College Program applicant or participating community college to determine eligibility and funding distributions.
Community College Program Funding, Compliance and Reporting
65. Establishes the Community College Program Fund, administered by ADE and consisting of legislative appropriations and any other monies.
66. Specifies that Community College Program Fund monies are continuously appropriated and exempt from lapsing.
67. Directs ADE to distribute Community College Program Fund monies to all eligible community colleges in a proportional manner based on the number of adult learners served as follows:
a) up to $3,000 per full-time student enrolled each fiscal year; and
b) for part-time students, funding in proportion to the number of enrolled courses or hours of instruction.
68. Requires a participating community college to use Community College Program Fund monies:
a) for adult learners to participate in a high school or HSE diploma program that also offers an industry-recognized credential or a community college degree; and
b) to supplement and not supplant current program offerings.
69. Allows a portion of the Community College Program Fund monies to be used for additional support services to ensure the success of participants, including transportation assistance, childcare services, college and career counseling and job placement assistance.
70. Allows a participating community college to accept and spend federal monies and private grants, gifts, contributions and devises to assist the community college in Community College Program purposes.
71. Allows the SBE, in cooperation with ADE, to develop a process to bring a participating community college into compliance or revoke the college's authorization to participate in the Community College Program at the SBE's discretion, in cooperation with ADE.
72. Requires, by September 30 of each year in which the Legislature appropriates monies to the Community College Program Fund, each participating community college to submit a report to the Governor, President of the Senate, Speaker of the House of Representatives and Secretary of State.
73. Requires each report to include at least the following information on adult learners for the preceding school year:
a) the number enrolled;
b) the completion rate of high school and HSE diplomas;
c) the average progress toward meeting completion criteria;
d) the number and type of industry-recognized credentials, community college degree credits and community college degrees earned;
e) a descriptive summary of the Community College Program offered;
f) the number of adult learners who have newly-acquired proficiency in the English language; and
g) the information required by the SBE-adopted performance measures.
Miscellaneous
74. Expands county jail education program eligibility, from all prisoners who are under 18 years of age and prisoners with disabilities who are 18 to 21 years of age, to all prisoners who:
a) are 21 years of age or younger, regardless of disability; and
b) do not have a high school diploma or general equivalency diploma.
75. Requires the Arizona Department of Administration's Division of School Facilities to annually, by June 30, submit a report on any unobligated monies in the Building Renewal Grant Fund to the Joint Legislative Budget Committee and the Governor's Office of Strategic Planning and Budgeting
76. Continues to state as the intent of the Legislature and the Governor that school districts increase the total percentage of classroom spending over the previous year’s percentages in the combined categories of instruction, student support and instructional support as prescribed by the Auditor General.
77. Makes technical and conforming changes.
78. Becomes effective on the general effective date.
Prepared by Senate Research
June 20, 2022
LB/slp