ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

Senate: ED DP 6-0-1-0 | 3rd Read 25-3-2-0

SB 1689: school districts; overexpenditures; ADE; notice

Sponsor: Senator Farnsworth, LD 10

Committee on Education

Overview

Directs the Arizona Department of Education (ADE) to notify the county school superintendent and take required actions if ADE determines, without prior notification from the county school superintendent, that a school district has committed an overexpenditure.

History

Statute requires the county school superintendent, within two business days, to provide written notice to ADE if the county school superintendent determines a school district has committed an overexpenditure. The county school superintendent may not draw a warrant for an expenditure that exceeds the amount budgeted and that has not been previously expended, unless ADE provides written notification to the county school superintendent that budget capacity exists. ADE, in conjunction with the county school superintendent, must monitor and provide technical assistance to the school district and county school superintendent to resolve the overexpenditure.

If ADE determines that either the school district has failed to take appropriate action to resolve the overexpenditure or that the overexpenditure will cause the school district's overall expenditures to exceed its general budget limit or unrestricted capital budget limit by $50,000 or 0.5%, ADE must request that the matter be placed on a State Board of Education (SBE) meeting agenda. After request from ADE, SBE is required to call a public meeting to consider the school district's overexpenditures and take one of the following actions: 1) require ADE, in conjunction with the county school superintendent, to monitor the school district's expenditures; 2) direct ADE to contract with a level one or level two fiscal crisis team; or 3) appoint a receiver.

An overexpenditure is an expenditure that exceeds: 1) the lesser of the school district's general budget limit or budgeted amount; or 2) the lesser of the school district's unrestricted capital budget limit or budgeted capital amount (A.R.S. § 15-107).

Provisions

1. Stipulates that if ADE, without prior notification from a county school superintendent, determines that a school district has committed an overexpenditure, ADE must:

a) notify the county school superintendent; and

b) take any actions as prescribed in statute. (Sec. 1)

2. Makes technical and conforming changes. (Sec. 1, 2)

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6. SB 1689

7. Initials CH Page 0 Education

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