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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
small school adjustments; district eligibility
Purpose
Authorizes a common school district to receive a small school adjustment in FY 2026 if the school district meets outlined eligibility requirements. Repeals the small school adjustment eligibility modifications for FY 2026 on January 1, 2027.
Background
The governing board of a common school district with a student count of fewer than 126 students in kindergarten programs and grades one through eight (K-8) may adopt a budget in excess of the general budget limit without holding an override election. Additionally, the school district governing board (governing board) may revise the school district's budget to include the costs for additional pupils who were not anticipated when the budget was adopted, if: 1) the governing board sends a petition to the county school superintendent requesting authority to revise the budget; 2) the county school superintendent recommends an action to be taken on the petition and forwards the recommendation to the county board of supervisors (county BOS); and 3) the county BOS holds a hearing on the petition and determines to allow the petition or allow the petition after revision. If a county BOS revises or denies a petition, the county BOS must state the reasons for revision or denial in writing. In the first year that a school district exceeds the prescribed student count limit for a small school adjustment, the school district may adopt a budget in excess of the general budget limit without an election, subject to a prescribed limit on the maximum amount the school district may exceed the general budget limit based on the school district's student count and elementary revenue control limit.
A school district that operates under a small school adjustment after FY 1999 and subsequently exceeds the prescribed student count limit for a small school adjustment may continue to adopt a budget in excess of the general budget limit in successive years, subject to an election and a prescribed limit on the maximum amount the school district may exceed the general budget limit based on the school district's student count and elementary revenue control limit (A.R.S. ยง 15-949).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Determines that a common school district is eligible for a small school adjustment in FY 2026 if the school district:
a) is located in a county with a population between 200,000 and 210,000 persons;
b) has a student count for K-8 students between 125 and 150 students; and
c) has an average daily membership for K-8 students of less than 125 in the current year.
2. Repeals the small school adjustment eligibility modifications for FY 2026 on January 1, 2027.
3. Becomes effective on the general effective date.
Prepared by Senate Research
February 17, 2025
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