Fifty-Fifth Legislature, Second Regular Session
FACT SHEET FOR H.B. 2866/S.B. 1733
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.
H.B. 2866 contains the budget reconciliation provisions for changes relating to K-12 education.
Base Support Level
1. Increases the base level for FY 2023 from $4,390.65 to $4,775.27.
2. Establishes a Group B weight of 0.018 for children who are eligible for the federal Free-and-Reduced Lunch Program (FRPL) and other school programs dependent on a poverty measure.
3. 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).
4. 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.
5. Defines FRPL.
Transportation Funding
6. 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 |
|
Between 0.5 and 1.0 |
2.27 |
2.32 |
|
Over 1.0 |
2.77 |
2.83 |
Additional Assistance
7. Increases the district additional assistance (DAA) amount per student count for FY 2023 as follows:
8. Increases, from $69.68 to $77.65, the per student count increase to DAA for textbooks and printed subject matter materials for grades 9 through 12.
9. Increases the charter additional assistance amount per student count for FY 2023:
a) from $1,897.90 to $1,985.58 for preschool programs for children with disabilities, kindergarten programs and grades 1 through 8; and
b) from $2,211.97 to $2,314.16 for grades 9 through 12.
Equalization Assistance Tax Rates
10. 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.
11. Conforms the tax year 2022 qualifying tax rates to reflect the required truth-in-taxation rate adjustment.
Results-Based Funding
12. 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 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.
(Retroactive to June 20, 2022)
13. Authorizes a school district for FY 2023, to account for legislative changes to K-12 funding enacted after June 20, 2022, to:
a) adopt a budget that is higher than its proposed budget; or
b) revise a budget, if the adopted budget does not take the legislative changes into consideration.
14. Requires the adopted district budgets to be used for setting the amount required to be levied for each school district from the primary and secondary property tax rates.
15. Requires budget adoption hearing to identify the differences between the proposed budget and the budget presented for adoption.
Empowerment Scholarship Accounts Parent Oversight Committee
(Parent Oversight Committee)
16. 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.
17. 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.
18. Requires the Governor to appoint two Parent Oversight Committee members and requires the following to each appoint one member:
a) the Speaker of the House of Representatives;
b) the President of the Senate;
c) the Minority Leader of the House of Representatives; and
d) the Minority Leader of the Senate.
19. Requires the Parent Oversight Committee to annually elect a chairperson from among its members and meet at least once each calendar quarter.
20. Specifies that a majority of the membership constitutes a quorum for the transaction of business.
21. Prohibits a parent from serving on the Parent Oversight Committee if the parent:
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
22. Establishes the Code Writers Initiative 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 participants;
g) determine the impacts of the 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.
23. Requires the Council to evaluate grant applications and make award recommendations to ADE.
24. 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.
25. Establishes the Postsecondary Success Program within ADE and directs ADE to administer the program.
26. Requires the Postsecondary Success Program to contract with a nonprofit vendor that:
a) has administered, for at least the five previous academic years:
i. college match savings accounts (college match accounts) in which a student's contributions are matched by eight dollars for each dollar the student deposits per academic year;
ii. financial capability training that addresses budgeting, managing student debt, savings, debit management, credit card use, retirement readiness and credit reports; and
iii. workforce readiness training that addresses business mentoring, job shadowing, interviewing and resume skills and career exploration;
b) has served at least 2,000 students in the past 10 years; and
c) currently supports multiple student pathways by partnering with institutions of higher education, including community colleges, universities and career and technical education programs.
27. Requires the college match accounts to be in the form of a custodial account or 529 plan.
28. Establishes the Invest in Postsecondary Success Fund (Postsecondary Success Fund), consisting of legislative appropriations, administered by ADE.
29. Directs ADE to use Postsecondary Success Fund monies to administer the Program and distribute monies to the selected vendor for the purposes of the Program.
30. Directs the selected vendor to:
a) administer college match accounts; and
b) provide financial capability and workforce readiness training.
31. Allows a student to apply to ADE to participate in the Postsecondary Success Program as ADE prescribes and directs ADE to prescribe eligibility criteria.
32. Directs each Postsecondary Success Program participant to open a college match account with the selected vendor.
33. Specifies that Postsecondary Success Fund monies are continuously appropriated and exempt from lapsing.
34. Authorizes ADE to adopt rules for Postsecondary Success Program administration.
Adult Education and Workforce Development Programs
35. 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).
36. Directs ADE to administer the High School and Workforce Program, Workforce Diploma Program and Community College Program and provide adequate staff support for the SBE to comply with the program requirements.
37. 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.
38. 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
39. 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.
40. Allows a high school diploma to be issued to a participating adult learner who meets statutory and SBE-adopted high school graduation requirements.
41. 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).
42. 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.
44. Caps the terms of program school approval at:
a) for initial approval, two school years; and
b) for renewal of approval, four school years.
45. Conditions the renewal of program school approval on specific performance expectations, including student progression, graduation rates and earned industry-recognized credentials.
46. 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.
47. 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.
48. 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 that 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 program school will provide;
i) a description of specific outcomes, goals and metrics the program school will use to determine adult learner success; and
j) the projected number of adult learners the program school will enroll.
49. 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.
50. 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
51. 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.
52. Authorizes the SBE, if the total full-time enrollment requested by program schools exceeds the prescribed caps, to direct ADE to prioritize funding to schools demonstrating the highest performance.
53. Requires the SBE to prioritize new program schools based on the adult learner services and supports outlined on their applications.
54. 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.
55. Specifies that a program school is eligible to receive funding for any adult learner regardless of age.
56. 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.
57. 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.
58. 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 program school's authorization to participate.
59. 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.
60. Requires, by October 30, 2025, and each subsequent year, each program school to submit a report to ADE regarding the High School and Workforce Program.
61. 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, the SBE and Secretary of State.
62. Authorizes the SBE to adopt rules to administer the High School and Workforce Program.
63. 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.
64. Allows the Workforce Diploma Program to be delivered in a campus-based, online or blended modality.
65. Requires the SBE, by October 15 and in consultation with ADE, to place all qualified program providers that submit the required form on an approved program providers list.
66. Requires, for approval to participate in the Workforce Diploma Program, an eligible provider to submit to the SBE, by August 15, on an SBE-developed form, information showing the provider:
a) is operating a regionally-accredited high school diploma-granting entity;
b) has the ability to develop a learning plan for each student that integrates graduation requirements and career goals;
c) provides a course catalog that includes all courses necessary to meet graduation requirements; and
d) has 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.
67. Specifies that approved program providers maintain approval status unless removed from the approved providers list for not meeting minimum performance standards.
68. Directs approved program providers to begin enrolling students by November 15 of each year.
69. 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
70. Establishes the Adult Workforce Diploma Program Fund, administered by ADE and consisting of legislative appropriations, gifts, grants and other donations.
71. Specifies that Workforce Diploma Program Fund monies are continuously appropriated and exempt from lapsing.
72. Directs ADE to pay an approved 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.
73. Directs each approved program provider, by the 10th calendar day of each month, to submit invoices to ADE for milestones met in the previous calendar month.
74. Directs ADE to:
a) pay approved 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 approved 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.
75. Requires the SBE, beginning with the end of the second fiscal year of the Workforce Diploma Program to review approved 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.
76. Authorizes the SBE, in cooperation with ADE, to develop a process to bring an approved program provider into compliance.
77. Directs the SBE to revoke an approved program provider's authorization to participate in the Workforce Diploma Program if the provider does not comply with the program requirements within two years.
78. Requires each approved program provider to annually report to ADE, by October 30, the:
a) total number of students funded through the Workforce Diploma Program;
b) total number of earned credits;
c) total number of earned industry-recognized credentials or stackable credentials earned for each funding tier;
d) total number of students who graduated through the Workforce Diploma Program; and
e) information required by the SBE-adopted performance measures.
79. Directs ADE to compile the reports received from approved program providers and provide an annual report to the Governor, President of the Senate, Speaker of the House of Representatives, SBE and Secretary of State.
80. Defines terms.
Community College Program
81. 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.
82. Requires a Community College Program applicant to be a community college district that provides:
a) high school or HSE diplomas; and
b) workforce training that leads to industry-recognized credentials or workforce or degree programs, including regionally-accredited workforce programs.
83. 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.
84. Establishes the Community College Program Fund, administered by ADE and consisting of legislative appropriations and any other monies.
85. Specifies that Community College Program Fund monies are continuously appropriated and exempt from lapsing.
86. 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 in the program each fiscal year; and
b) for part-time students, funding in proportion to the number of enrolled courses or hours of instruction.
87. 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.
88. 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.
89. 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.
90. 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.
91. Requires, by October 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 ADE.
92. Directs ADE to compile the reports received from participating community colleges and provide an annual report to the Governor, President of the Senate, Speaker of the House of Representatives, SBE and Secretary of State.
93. 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
94. 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.
95. 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.
96. 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.
97. Makes technical and conforming changes.
98. Becomes effective on the general effective date.
1. Increases the FY 2023 per-pupil base level and district additional assistance amounts and reduces the charter additional assistance increase.
2. Adds a Group B weight of 0.018 for children eligible for the federal FRPL Program.
3. Authorizes a school district, to account for legislative changes to K-12 funding enacted after June 20, 2022, to:
a) adopt a budget higher than its proposed budget or revise an adopted budget that does not take the legislative changes into consideration; and
b) revise FY 2023 primary and secondary property tax rates to reflect the adopted budgets.
4. Requires ADE to:
a) administer the adult education and workforce education programs; and
b) provide adequate staff to the SBE for program-related requirements.
5. Aligns the reporting dates for schools and providers participating in the adult education and workforce development programs and requires the reports to be submitted to ADE for compilation into an annual report for each program.
6. Replaces the requirement that the SBE issue a request for qualifications for Adult Workforce Diploma Program providers with a requirement that an eligible provider must submit information showing eligibility.
7. Authorizes the SBE and ADE to develop a process to bring an Adult Workforce Diploma Program provider into compliance, rather than requiring the SBE and ADE to place a provider on probationary status for noncompliance.
8. Establishes the Postsecondary Success Program and Postsecondary Success Fund and outlines administration and funding requirements.
9. Adds, to the Parent Oversight Committee, one member appointed by each minority leader of the Legislature.
10. Makes conforming changes.
House Action Senate Action
APPROP 6/21/22 DP 8-5-0-0 APPROP 6/22/22 DP 6-3-1
3rd Read 6/23/22 48-10-2 3rd Read 6/23/22 21-7-2
(H.B. 2866 was substituted for S.B. 1733 on 3rd Read)
Signed by the Governor 6/28/22
Chapter 317
Prepared by Senate Research
June 30, 2022
LB/slp