--------------------------
          House Engrossed
 --------------------------
  State of Arizona
  House of Representatives
  Forty-ninth Legislature
  First Regular Session
  2009
 --------------------------
        CHAPTER 6
 --------------------------
     HOUSE BILL 2029
 --------------------------
 

AN ACT

PRESCRIBING STATE AID ALLOCATIONS FOR SCHOOL DISTRICTS.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Calculation of state aid allocations; school districts

A. By the close of business on October 15, 2009, the department of education shall apportion to each qualifying school district from monies appropriated for basic state aid and additional state aid for fiscal year 2009-2010 an amount determined as follows:

1. Identify the total ending cash balance of each school district in this state as of June 30, 2009 in its maintenance and operation funds, capital outlay funds and soft capital allocation funds.

2. Calculate for each school district in this state the sum of the amounts identified in paragraph 1 of this subsection.

3. Identify for each school district in this state the amount, if any, that is budgeted for budget balances for fiscal year 2009-2010 pursuant to section 15-918.04, subsection C, Arizona Revised Statutes, section 15-919.04, subsection D, Arizona Revised Statutes, section 15-943.01, Arizona Revised Statutes, and section 15-947, subsection D, paragraph 4 and subsection E, paragraph 2, Arizona Revised Statutes.

4. Calculate for each school district in this state the sum of the amounts identified in paragraph 3 of this subsection.

5. Subtract for each school district in this state the amount determined in paragraph 4 of this subsection from the amount determined in paragraph 2 of this subsection.

6. Identify the total revenue received by each school district in this state for its maintenance and operation funds, capital outlay funds and soft capital allocation funds for fiscal year 2008-2009, excluding the beginning cash balances in each of those funds.

7. Calculate for each school district in this state the sum of the amounts identified in paragraph 6 of this subsection.

8. Identify the total P.L. 81-874 revenue received by each school district in this state for its maintenance and operation funds, capital outlay funds and soft capital allocation funds for fiscal year 2008-2009.

9. Calculate for each school district in this state the sum of the amounts identified in paragraph 8 of this subsection.

10. Divide for each school district in this state the amount determined in paragraph 9 of this subsection by the amount determined in paragraph 7 of this subsection.

11. Multiply the quotient determined in paragraph 10 of this subsection by the amount determined in paragraph 5 of this subsection.

12. Subtract the amount determined in paragraph 11 of this subsection from the amount determined in paragraph 5 of this subsection.

13. Identify for each school district in this state the amount of basic state aid and additional state aid that was scheduled to be apportioned on May 15, 2009 pursuant to section 15-973, Arizona Revised Statutes, but that was deferred pursuant to legislation enacted into law during May 2009.

14. For each school district in this state except accommodation schools as defined in section 15-101, Arizona Revised Statutes, subtract the amount determined in paragraph 12 of this subsection from the amount determined in paragraph 13 of this subsection. If the computed amount is zero or a negative amount, use zero. For accommodation schools, use the amount identified in paragraph 13 of this subsection. The amount determined pursuant to this paragraph is the amount of the apportionment to the school district or accommodation school.

B. In addition to the amount required by subsection A of this section, by the close of business on October 15, 2009, the department of education shall apportion to each qualifying school district from monies appropriated for basic state and additional state aid for fiscal year 2009-2010 an amount determined as follows:

1. Identify the amount determined in subsection A, paragraph 14 of this section.

2. Multiply the amount determined in paragraph 1 of this subsection by two per cent for an assumed interest rate of two per cent.

3. Multiply the amount determined in paragraph 2 of this subsection by five-twelfths for an assumed five month interest accumulation period. The amount determined pursuant to this paragraph is the amount of the apportionment to the school district or accommodation school.

C. Notwithstanding any provision of law, for fiscal year 2009-2010, if the governing board of a school district incurred interest expenses for registering warrants in fiscal year 2008-2009 or expects to incur interest expenses for registering warrants in fiscal year 2009-2010 related to basic state aid and additional state aid that was scheduled to be apportioned on May 15, 2009 pursuant to section 15-973, Arizona Revised Statutes, but that was deferred pursuant to legislation enacted into law during May 2009, the governing board may budget an estimated amount for those interest expenses. Any such amount is specifically exempt from the revenue control limit in fiscal year 2009-2010. If the budgeted estimate amount is greater than the amount received pursuant to subsection B of this section, the governing board shall not expend more than the amount received pursuant to subsection B of this section. If the budgeted estimate amount is less than the amount received pursuant to subsection B of this section, the governing board may revise its budget during fiscal year 2009-2010 to include the actual amount received pursuant to subsection B of this section and shall not expend more than the amount received pursuant to subsection B of this section.

D. School districts shall include in the revenue estimates that they use for computing their tax rates for fiscal year 2009-2010 the monies that they will receive pursuant to subsection A, paragraph 14 of this section.

E. The county treasurer and county school superintendent in each county shall provide to the department of education any information that is requested by the department of education to carry out the requirements of this section.

APPROVED BY THE GOVERNOR MAY 14, 2009.

FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 14, 2009.