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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
school district budgets; three years
Purpose
Requires a school district governing board (governing board) to prepare a budget for the next three fiscal years, rather than the fiscal year that immediately follows the current year.
Background
Statute requires a governing board to annually prepare a budget for the budget year. A governing board must prepare: 1) a proposed budget for the budget year includes the total amount of revenues that was necessary to meet the school district's budget for the current year and that will be necessary to meet the school district's proposed budget; and 2) a summary of the proposed budget. The Auditor General (OAG), in conjunction with the Arizona Department of Education (ADE), must prescribe the form of the summary of the proposed budget for each governing board to use.
Additionally, a governing board must prepare a notice for a public hearing and governing board meeting to present the proposed budget for consideration to the residents and taxpayers of the school district. Immediately following a public hearing for a presentation and explanation of the proposed budget, the governing board must call a meeting to adopt the proposed budget. By July 18, a school district's final adopted budget must be submitted to the Superintendent of Public Instruction (SPI) and ADE (A.R.S. § 15-905).
The SPI, in conjunction with the Auditor General (OAG), must prepare and prescribe a budget format for each school district to use. The budget format must contain distinct sections for maintenance and operation, debt service, special projects, capital outlay, adjacent ways and the Classroom Site Fund as prescribed. The budget format must also contain specified information, including: 1) the prominent display of the average salary of all teachers employed by the school district for the current year and previous year; and 2) the prominent display of the dollar increase and percentage increase in the average salary of all teachers employed by the school district for the current year (A.R.S. § 15-903).
Budget year means the fiscal year for which a school district is budgeting and that immediately follows the current year (A.R.S. § 15-901).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Defines budget year as a fiscal year that is both a fiscal year for which a school district is budgeting and one of the three fiscal years that immediately follow the current year, rather than as the fiscal year which the school district is budgeting and that immediately follows the current year.
2. Requires a governing board to budget for the next three fiscal years, rather than the fiscal year that immediately follows the current year.
3. Adds, to the information that a school district budget format must contain:
a) the enrollment projections for each of the next three years, including a description of the methods used to make the projections; and
b) the rate of change in student enrollment between the current year and the fifth year immediately preceding the current year.
4. Requires the OAG to include the rate of change in student enrollment and the enrollment projections for each of the next three years in the form of the summary of the proposed budget.
5. Specifies that a school budget correction may be made in the current year or in the budget year immediately following the current year.
6. Makes technical and conforming changes.
7. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
1. Adds outlined information that a school district budget format must contain.
2. Requires the OAG to include specified information in the proposed budget summary form.
Senate Action
ED 2/19/25 DP 4-3-0
Prepared by Senate Research
March 6, 2025
MH/ci