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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
career, technical education; projects fund
Purpose
Includes proceeds from the sale of services provided by a career and technical education (CTE) program in a CTE projects fund (project fund) and reverts excess monies to the school maintenance and operation fund.
Background
A school district governing board may establish a permanent project fund consisting of proceeds from the sale of items produced by CTE programs. Monies in the project fund may be used for the following purposes: 1) to purchase materials for CTE program products to be sold by the school district; 2) to purchase equipment, not exceeding $5,000 per fiscal year, for CTE program products to be sold by the school district; and 3) on expenses directly related to planning and designing CTE program products.
Current statute prohibits monies in the project fund from being used to pay salaries, wages or employee fringe benefits. A project fund established by a school district is a continuing fund, except that all monies in excess of $100,000 at the end of each fiscal year revert to the school plant fund (A.R.S. § 15-1231).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Includes proceeds from the sale of services provided by a CTE program in a project fund.
2. Allows monies in a project fund to be used on expenses related to:
a) materials, equipment, planning and design for CTE programs that provide services to be sold by a school district; and
b) an Arizona Department of Education approved CTE student organization, including costs associated with events, conferences or competitions.
3. Permits the purchase of equipment using project fund monies to exceed $5,000 in any one fiscal year.
4. Reverts project fund monies in excess of $100,000 at the end of a fiscal year to the school maintenance and operation fund, rather than the school plant fund.
5. Requires all purchases made using project fund monies to comply with State Board of Education regulations, including those on procurement practices.
6. Renames the CTE and vocational education projects fund to the CTE projects fund.
7. Makes technical and conforming changes.
8. Becomes effective on the general effective date.
House Action
ED 1/19/21 DP 9-0-0-1
3rd Read 1/28/21 57-2-1
Prepared by Senate Research
February 26, 2021
JO/JP/gs