 |
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
common school districts; unification; budget
Purpose
Extends the authorization for a common school district that is not within the boundaries of a high school district (Type 3 district) and that was authorized by the electors to establish a unified school district (Type 3 district authorized to establish a unified district) to continue calculating its budget and equalization assistance as a Type 3 district until a high school is built. Repeals the authorization effective July 1, 2023.
Background
A high school pupil who resides in a Type 3 district (Type 3 district high school pupil) is deemed to be enrolled in the district of residence, which pays tuition to the pupil's school district of attendance (district of attendance). A school district governing board must admit a high school pupil from another school district if the pupil is a Type 3 high school pupil, subject to a 350-pupil limit with exceptions. The district of attendance may charge tuition in an amount up to the product of the: 1) average daily membership (ADM) of the district of attendance from the Type 3 district in the prior year; and 2) current year cost per student count for the district of attendance, including transportation charges if the district transports the pupils (A.R.S. §§ 15-824 and 15-951).
The school funding formula provides for school districts to receive funding in an amount known as the equalization base from local revenues and Basic State Aid. A Type 3 district's equalization base excludes high school pupils from ADM and includes the tuition payable for the students, except for debt service amounts in excess of $150, $200 or the actual cost per pupil depending on the number of pupils. In 2007, the Legislature allowed a Type 3 district authorized to establish a unified district to continue calculating its budget and equalization assistance as a Type 3 district until the high school was built or until 2011. The authorization has been extended and currently expires: 1) the sooner of either 15 years after election or when a high school is built; or 2) if the district is newly-formed as a unified school district and phasing in instruction for grades 9 through 12, up to five years after the first operation of the new high school (Laws 2007, Ch. 283; A.R.S. 15-951).
If extending the authorization for a Type 3 district authorized to establish a unified district to continue calculating its equalization assistance as a Type 3 district results in a change to Basic State Aid costs, there may be a fiscal impact to the state General Fund.
Provisions
1. Allows a Type 3 district authorized to establish a unified district to continue calculating its budget and equalization assistance as a Type 3 district until a high school is built, rather than the earlier of 15 years or until a high school is built.
2. Allows a Type 3 district authorized to establish a unified district to retroactively adjust its FY 2022 budget.
3. Repeals, effective July 1, 2023, the authorizations for a Type 3 district authorized to establish a unified district to:
a) continue calculating its budget and equalization assistance as a Type 3 district until a high school is built;
b) continue calculating its budget and equalization assistance as a Type 3 district for up to five years after the first operation of the new high school, if the district is newly-formed as a unified school district and phasing in instruction for grades 9 through 12; and
c) retroactively adjust its FY 2021 and FY 2022 budget.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date, with a delayed effective date as noted.
House Action
ED 2/8/22 DP 10-0-0-0
3rd Read 2/23/22 59-0-1
Prepared by Senate Research
March 18, 2022
LB/slp