HB2555 - 472R - Senate Fact Sheet

ARIZONA STATE SENATE

Forty-seventh Legislature, Second Regular Session

FACT SHEET FOR H.B. 2555

~~schools; financial mismanagement provisions~~

(NOW: accommodation schools; board of supervisors)

Purpose

Requires the county school superintendent to present a budget for the accommodation district to the county board of supervisors for adoption and to annually provide a report on the academic and financial plans and status for the accommodation district.

Background

The county board of supervisors and the county school superintendent jointly operate accommodation schools that serve pupils on military reservations, students residing in territories not included within the boundaries of a school district, homeless children or alternative education programs for students in grades six through twelve (A.R.S. §15-101). The county school superintendent maintains operational oversight of the accommodation school district and can provide educational services to other school districts in the county. The county school superintendent also manages the financial interests of the accommodation district and develops the fiscal year budget for the schools based on the same format as used by school districts. (A.R.S. § 15‑308). Accommodation districts are subject to the same yearly audit requirement as school districts and must submit budgets and financial reports to the Arizona Department of Education (ADE) annually. In addition, the Auditor General conducts annual audits of counties that include review of the financial transactions of the accommodation school districts.

Currently, there are nine accommodation school districts in the state located in Coconino, Cochise, Graham, Maricopa, Pinal, Navajo, Pima and Yavapai counties. Maricopa County Regional School District and Ft. Huachuca Accommodation School District operate two of the larger accommodation districts in the state.

The county board of supervisors adopts annual budgets for the Special County School Reserve Fund, which may function as a depository for state, local and federal funds for use by the county or the county school superintendent for rural school needs, transportation and necessary funding for the establishment and operation of accommodation schools and special education programs for children with disabilities (A.R.S. § 15-1001). The county board of supervisors may delegate the responsibility of managing the Special County School Reserve Fund to the county school superintendent. Accommodation districts do not have taxing authority and therefore receive 100 percent state funding through the state’s K-12 school finance formula, in addition to federal monies or local monies provided by the county.

There is no anticipated fiscal impact to the state General Fund.

Provisions

1. Requires the county board of supervisors to consider, modify and adopt annual budgets for accommodation schools presented by the county school superintendent.

2. Directs the county school superintendent to annually submit academic and financial plans and the financial status for accommodation schools to the county board of supervisors by July 1 for the next school year that includes:

a) the number of accommodation schools.

b) the number of students attending accommodation schools.

c) the fiscal soundness of the accommodation district.

d) other financial information requested by the county board of supervisors.

3. Requires the approval of the county board of supervisors for a county school superintendent to carry forward from one year to another any unexpended monies from gifts and grants made to accommodation schools.

4. Specifies that a county board of supervisors has sole discretion to determine the annual budget for the Special County School Reserve Fund.

5. Makes technical and conforming changes.

6. Becomes effective on the general effective date.

House Action

ED 2/22/06 DPA/SE 9-1-0-0

3^rd Read 3/6/06 43-12-5-0

Prepared by Senate Research

March 13, 2006

DN/IS/jas