Assigned to ED                                                                                                                               AS ENACTED

 

 

 

 

ARIZONA STATE SENATE

Fifty-Third Legislature, First Regular Session

 

FINAL AMENDED

FACT SHEET FOR H.B. 2385

 

schools; accounting; budgeting; reporting

 

Purpose

 

            Requires schools to report school level budget information and directs the Office of the Auditor General (OAG) to identify the methods and formats for reporting this information beginning in FY 2021.

 

Background

 

In order to establish a uniform system of accounting and budgeting across the state, school districts and charter schools utilize a budget format and Annual Financial Report (AFR). The OAG is primarily responsible for the development of the AFR and the Arizona Department of Education (ADE) is primarily responsible for the development of budget formats. The AFR contains budgeted and actual expenditures for maintenance and operations, capital, transportation and various funds for the preceding fiscal year (A.R.S. § § 15-903 and 15-904).

 

            Separately, each school is required to distribute a report card that contains information on 18 specified items, including school level expenditures per pupil for classroom supplies, classroom instruction excluding classroom supplies, administration, support services-students and all other support services and operations. The per pupil expenditures are required to include the allocation of the district-wide expenditures to each school as provided by the district and a comparison of the school to the state amount for a similar type of district (A.R.S. § 15-746).

 

            There is no anticipated fiscal impact to the state General Fund associated with this legislation.

 

Provisions

 

1.      Directs school districts to develop policies and procedures to allow principals to budget for or assist with budgeting federal, state and local monies.

 

2.      Removes a requirement for school report cards to include school level expenditures and replaces it with a requirement for school report cards and AFRs, beginning in FY 2021, to include the following school level data for charter schools and schools operated by school districts:

a)      detailed total revenues generated by weighted student count;

b)      total allocated federal, state and local revenue;

c)      allocation of Classroom Site Fund monies;

d)      amounts allocated for teacher pay and benefits, classroom supplies, student support and other expenditures; and

e)      a comparison of the school's funding information to other schools in the local education agency.

3.      Directs the OAG to facilitate a process with school districts, charter holders and schools operated by school districts and charter holders to identify the most efficient and transparent methods and formats for reporting the following information beginning in FY 2021:

a)      at the school level:

                         i)      detailed total revenues generated by weighted student count;

                       ii)      total allocated federal, state and local revenue;

                     iii)      allocation of Classroom Site Fund monies; and

                     iv)      amounts allocated for teacher pay and benefits, classroom supplies, student support and other expenditures;

b)      at the district or charter holder level, the amount of monies not allocated to the school level.

c)      for special education, information necessary to determine whether expenditures are equal to, less than or greater than base funding, weighted funding and Individuals with Disabilities Education Act funding at the district and school level.

 

4.      Repeals this session law on January 1, 2022.

 

5.      Makes technical and conforming changes.

 

6.      Becomes effective on the general effective date.

 

Amendments Adopted by Committee

 

1.      Removes an additional requirement for school report cards.

 

2.      Includes in school report cards and AFRs a comparison of individual school's funding information to other schools in the local education agency.

 

3.      Removes a requirement related to the Joint Legislative Audit Committee.

 

4.      Specifies reporting the school level information begins in FY 2021. 

 

Amendments Adopted by Committee of the Whole

 

·         Removes a requirement for the OAG to identify a method for reporting the amount of monies allocated for administrative staff, services and facilities at the school level.

 

House Action                                                              Senate Action

 

ED                   2/13/17     DPA     8-2-0-1                  ED                   3/16/17     DPA     7-0-0

3rd Read          2/21/17                  36-22-2                  3rd Read          4/17/17                  25-4-1

Final Read      4/24/17                  31-24-4-0-1

 

Signed by the Governor 4/27/17

Chapter 211

 

Prepared by Senate Research

May 4, 2017

CB/jn