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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
school districts; expenditure limit; authorization
Purpose
Authorizes the expenditure of local revenues by school districts in excess of the expenditure limit in FY 2021.
Background
Article IX, Section 21 of the Arizona Constitution establishes the aggregate expenditure limitation for all school districts that limits total expenditures of local revenues to the FY 1980 spending level plus 10 percent, adjusted for inflation and enrollment. Before May 1 of each year, the Economic Estimates Commission must determine the aggregate expenditure limitation for all school districts for the following fiscal year (Ariz. Const. art. 9 § 21).
The State Board of Education (SBE) must, by November 1 of each year, report the aggregate expenditures of local revenues for all school districts for the current year to the President of the Senate, Speaker of the House of Representatives and Chairperson of the Joint Legislative Budget Committee. If the aggregate expenditures of local revenues for all school districts exceeds the limit, the SBE must notify each school district of the amount by which it may have to reduce its expenditures of local revenue. The Legislature may authorize, by March 1st, current fiscal year expenditures in excess of the limitation upon a two-thirds vote in both chambers of the Legislature (A.R.S. § 15-911).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Authorizes in FY 2021, the expenditure of local revenues by school districts in excess of the expenditure limitation.
2. Requires for enactment the affirmative vote of at least two-thirds of the members of each house of the Legislature.
3. Becomes effective on the general effective date.
Prepared by Senate Research
February 5, 2021
JO/JS/gs