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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
2025-2026; K-12 education
Purpose
Makes statutory and session law changes relating to K-12 education necessary to implement the FY 2026 state budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.
S.B. 1744 contains the budget reconciliation provisions for changes relating to K-12 education.
Provisions
Basic State Aid
1. Increases the base level for FY 2026 from $5,013.00 to $5,113.26.
2. Increases the charter additional assistance amount per student for FY 2026:
a) from $2,090.10 to $2,131.90, for students in preschool programs for children with disabilities, kindergarten programs and grades 1 through 8; and
b) from $2,435.97 to $2,484.69, for students in grades 9 through 12.
3. Increases the transportation support level formula per-route-mile amount for FY 2026 as follows:
|
FY 2025 |
FY 2026 |
|
|
2.95 |
3.01 |
|
|
Between 0.5 and 1.0 |
2.42 |
2.47 |
|
Over 1.0 |
2.95 |
3.01 |
FY 2026 Small Schools Adjustment Eligibility Modification (Repeals on January 1, 2027)
4. Determines that, retroactive to July 1, 2025, a common school district is eligible for a small school adjustment in FY 2026 if the school district:
a) is located in a county with a population that is between 200,000 and 210,000 persons;
b) has a student count for students in kindergarten programs and grades 1 through 8 (K-8) that is between 125 and 150 students; and
c) has an average daily membership for K-8 students of less than 125 in the current year.
Adult Workforce Diploma Program Transfer and Modifications (Retroactive to July 1, 2025)
5. Transfers oversight and administrative requirements relating to the Adult Workforce Diploma Program (Diploma Program) and the Diploma Program Fund from the State Board of Education (SBE) to the Office of Economic Opportunity (OEO).
6. Requires the OEO to include, on the list of approved Diploma Program providers, any Diploma Program provider who was previously included on the list developed by the SBE and not removed from the list due to the Diploma Program provider's authorization being revoked by the SBE.
7. Adds, to the information that the OEO must provide to Diploma Program providers in a monthly written update, the aggregate number of currently enrolled students for whom one or more invoices have been submitted and for whom invoices have not yet been submitted.
8. Directs the OEO to begin reviewing Diploma Program provider data to ensure minimum Diploma Program performance standards as outlined in FY 2028.
9. Prohibits the OEO from using more than five percent of Diploma Program Fund monies for administrative costs.
Community College Adult Education Workforce Development Program Transfer and Modifications (Retroactive to July 1, 2025)
10. Transfers oversight and administrative requirements relating to the Community College Adult Education Workforce Development Program (Workforce Development Program) and the Workforce Development Program Fund from the SBE to the OEO.
11. Raises, from $3,000 to $5,000, the amount of funding each Workforce Development Program school may receive per full-time student in the Workforce Development Program.
12. Determines that the OEO must distribute Workforce Development Program Fund monies on a quarterly basis.
13. Prohibits the total amount of Workforce Development Program Fund monies distributed in any quarter from exceeding the sum of:
a) one-fourth of the total amount that is allocated for Workforce Development Program schools in the fiscal year; and
b) the amount of unspent monies, if any, that were allocated for Workforce Development Program schools in a previous quarter.
14. Directs the OEO to:
a) accept applications from Workforce Development Program applicants between July 1 and June 30 of each year; and
b) determine whether each applicant is eligible to participate in the Workforce Development Program within six weeks of receiving the applicant's completed application.
15. Removes, from the requirements for a Workforce Development Program school to receive Workforce Development Program Fund monies, the requirement that each participating adult learner participate in integrated education and training.
16. Prohibits the OEO from using more than five percent of the monies appropriated to the Workforce Development Program Fund each year for administrative costs.
Performance Measures for the Diploma Program and Workforce Development Program (Retroactive to July 1, 2025)
17. Requires the SBE, in cooperation with the OEO, to adopt performance measures to evaluate the performance of the Diploma Program and Workforce Development Program.
18. Requires the adopted performance measures to include:
a) measurements of adult learner progress towards earning a high school diploma or high school equivalency diploma;
b) the number of high school diplomas or high school equivalency diplomas earned;
c) the number of industry-recognized credentials earned;
d) the number of adult learners or graduates who have matriculated at an institution of higher learning or postsecondary educational institution;
e) the number of adult learners or graduates who have newly acquired employments, who are now earning higher wages or who have obtained a better job or promotion; and
f) other relevant measures as adopted by the SBE in cooperation with the OEO.
19. Determines that the adopted performance measures must:
a) allow for a comparable evaluation across the Diploma Program and Workforce Development Program; and
b) consider the variety of learning levels of adult learners who are entering the Diploma Program and Workforce Development Program.
Temporary Automatic External Defibrillator Requirements
20. Requires, beginning on the general effective date and until August 1, 2026, each public school in Arizona that provides instruction to students in any of grades 9 through 12 and sponsors an athletic team or sports program to provide an automated external defibrillator (AED) at each school campus.
21. Allows a public school to accept gifts, grants, donations and in-kind donations for the purposes of the requirements relating to AEDs, including to purchase and maintain AEDs.
Permanent Automatic External Defibrillator Requirements
22. Requires, beginning August 1, 2026, each public school in Arizona that provides instruction to students in any of grades 9 through 12 and sponsors an athletic team or sports program to provide an AED at each school campus and school-sponsored athletic event;
23. Requires a public school to
ensure that each AED provided at each school campus and
school-sponsored athletic event is:
a) in an unlocked location that is clearly marked and easily accessible during the school day and at each school-sponsored athletic event;
b) in a location from which the AED may be promptly retrieved and used at the school or school-sponsored athletic event;
c) in a location that complies with guidelines that are established by a nationally recognized organization that is focused on emergency cardiovascular care; and
d) maintained in good working order and tested according to the manufacturer's guidelines.
24. Allows a public school to accept gifts, grants, donations and in-kind donations for the purposes of the requirements relating to AEDs, including to purchase and maintain AEDs.
25. Defines school sponsored event as an event that takes place on a school campus and is related to a sport or other athletic activity in which students participate as individuals or as members of a team, including scheduled practices, trainings and competitions.
Ninth Grade On-Track Grant Program
26. Establishes the Ninth Grade On-Track Grant Program (Grant Program), administered by the Arizona Department of Education (ADE).
27. Establishes the Grant Program Fund, administered by ADE and consisting of legislative appropriations, gifts, grants and other donations.
28. Directs ADE to use Grant Program Fund monies to provide grant awards to participating school districts and charter schools.
29. Allows ADE to adopt rules, policies and procedures to carry out the purposes of the Grant Program.
30. Directs ADE to establish procedures for:
a) a school district or charter school to apply for a grant;
b) ADE to evaluate Grant Program applications; and
c) ADE to award grants to eligible school districts and charter schools for a term of between one and five years.
31. Requires ADE to:
a) ensure that the grant application and reporting requirements do not impose an undue burden on the school districts and charter schools;
b) require each grant application to be approved by a majority vote of the school district governing board or charter school governing body before the school district or charter school may submit an application to ADE;
c) award grants on a first-come, first-served basis to each eligible school district or charter school; and
d) provide administrative support to grant recipients for implementing ninth grade on-track programs and services.
32. Determines that a grant must be awarded in an amount that is equal to at least $150 for each grade nine student who is enrolled or projected to be enrolled in the school district or charter school during the term of the grant.
33. Caps the total number of grade nine students who may be funded by the Grant Program from exceeding:
a) 22,650, for grants that are awarded in FY 2026; and
b) 0, for grants that are awarded beginning in FY 2027.
34. Requires each school district and charter school that receives a grant award to:
a) use the monies to establish and expand programs, opportunities and strategies that help grade nine students complete sufficient credits to be on track to graduate in four years; and
b) on request from ADE, provide any information to necessary to demonstrate compliance with Grant Program requirements.
35. Deems a student is on track to graduate in four years if the student:
a) by the end of grade nine, completes at least 25 percent of the credits required for the student to graduate from high school; and
b) does not earn more than one F letter grade, or the equivalent, in grade nine.
36. Specifies that programs, opportunities and strategies that help grade nine students complete sufficient credits to be on track to graduate in four years includes:
a) providing real-time, accessibly formatted data regarding student grades, attendance and behavior to grade nine teachers and support staff;
b) allocating time for grade nine teachers and support staff to meet during the school day to review data and develop intervention strategies for grade nine students;
c) providing timely, actionable data for grade nine teachers, including providing access to data and developing teachers' data literacy;
d) creating highly effective grade nine success teams;
e) establishing foundational structures and conditions for grade nine on-track work;
f) establishing systems and processes to optimize operations of the grade nine success team;
g) systematizing grade nine success by recruiting and engaging all stakeholders;
h) creating and executing proactive and data-driven intervention and referral systems and processes;
i) implementing proactive and high-leverage intervention strategies;
j) creating and executing a comprehensive system of grade nine transition supports;
k) creating a personalized and supportive environment for grade nine students;
l) providing early preparation for high school entry;
m) providing proactive supports to grade nine teachers and support staff;
n) implementing high quality instructional strategies and fair grading practices;
o) developing learning-centered professional communities and student-centered learning communities; and
p) establishing a partnership with an organization that has at least five years of experience providing ninth grade on-track programs and services to school districts and charter schools to increase grade nine on-track rates.
37. Requires each school district and charter school that receives Grant Program monies to supplement and not supplant programs, opportunities and strategies that help grade nine students complete sufficient credits to be on track to graduate in four years.
38. Specifies that Grant Program Fund monies are continuously appropriated and exempt from lapsing.
Early Education and Career Exploration Program Delayed Repeal
(Retroactive to June 30, 2025)
39. Delays, from June 30, 2024, to June 30, 2026, the date by which ADE must submit a report as prescribed to outlined individuals in the Early Education and Career Exploration Program.
40. Delays, from July 1, 2025, to July 1, 2027, the repeal date of the Early Education and Career Exploration Program and Fund and the requirements relating to education and career action plans.
Miscellaneous
41. Authorizes ADE to use Failing Schools Tutoring Fund monies in FY 2026 for the following school improvements:
a) providing assistance to school districts and charter schools for professional development and coaching for teachers and principals;
b) monitoring the progress of school districts and charter schools towards improved academic outcomes; and
c) outreach to ensure that schools and parents have access to tutoring opportunities.
42. Requires, by September 1, 2025, ADE to report the proposed expenditures for FY 2026 Failing Schools Tutoring Fund monies to the Governor, the Senate President, the Speaker of the House of Representatives, the Joint Legislative Budget Committee Director and the Governor's Office of Strategic Planning and Budgeting Director.
43. Conforms the tax year 2025 qualifying tax rates to reflect the required truth-in-taxation rate adjustment.
44. Continues to state as the intent of the Legislature and the Governor that school districts increase the total percentage of classroom spending over the previous year’s percentages in the combined categories of instruction, student support and instructional support as prescribed by the Auditor General.
45. Defines terms.
46. Makes technical and conforming changes.
47. Becomes effective on the general effective date, with a retroactive provision as noted.
Prepared by Senate Research
June 16, 2025
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