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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
VETOED
K-12 education; 2025-2026
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.
H.B. 2956 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 |
Annual Teacher Retention Study and Report
4. Requires the Arizona Department of Education (ADE) to conduct and complete an annual comprehensive study to determine the retention rate of teachers in Arizona school districts and charter schools.
5. Requires the study to include:
a) a summary of the total number of teachers, the retention rate and turnover rate for:
i. certificated teachers, by each type of teaching certificate;
ii. teachers to whom a certificate was issued during the past year, disaggregated by the type of teaching certificate and whether the applicant was certified via reciprocity;
iii. noncertificated charter school teachers;
iv. teaching assignment, including the subject area and grade level taught;
v. location, including by school site, school district or charter school, city or town and county;
vi. the number of years of experience of each teacher;
vii. the number of teachers who, within their first three years of teaching, received formal mentorship from an individual with five or more years of teaching experience;
viii. the number of teachers in each demographic segment in Arizona and each school district; and
ix. the number of teachers who failed to renew the teacher's certificate or endorsement during the past year and the renewal requirements that the teacher failed to satisfy;
b) a summary of the number of vacant teaching position, including the average time to fill a vacancy, for each:
i. teaching assignment, including subject area and grade level taught.
ii. location, including by school site, school district or charter school, city or town and county; and
iii. the manner by which the vacancy is filled, if applicable, including whether the vacancy is unfilled or temporarily filled by a long-term substitute teacher or certificated teacher whose regular teaching assignment is in a different subject area or grade level; and
c) an analysis of data for each State Board of Education (SBE) approved teacher preparation program, including:
i. data relating to program completion;
ii. program emphasis, if any, including subject area and grade level;
iii. enrollment, disaggregated by endorsement; and
iv. the number of years that individuals spend working as teachers in Arizona after completing the program.
6. Specifies that grade level data includes data for teachers who are assigned to kindergarten programs.
7. Requires SBE and the Arizona State Board for Charter Schools to collect and provide any data or information requested by ADE for the study.
8. Directs ADE to analyze public job postings by school districts and charter schools to compile information on teacher retention, turnover rates and vacant teaching positions.
9. Requires ADE to allow the SBE to access any data and information ADE collects for the study.
10. Requires ADE, by December 31, 2025, and each year after, to annually submit the study results and recommendations to the Governor, the Senate President and the Speaker of the House of Representatives and to provide a copy to the Secretary of State.
11. Requires ADE to develop and maintain a publicly accessible, interactive dashboard on ADE's website that contains the study results and recommendations and the data and information compiled for the study.
12. Adds, to the information contained in a school district or charter school budget, the number of full-time equivalent teachers that the school included in the budget for the current year, including the number of teachers included in the budget for each school site, if applicable, disaggregated by subject area and grade level.
Continuing High School and Workforce Training Program (Repeals on July 1, 2027)
13. Caps, retroactive to July 1, 2025, a Continuing High School and Workforce Training Program school's FY 2026 total projected full-time enrollment at 130, rather than 1400.
Ninth Grade On-Track Grant Program (Repeals January 1, 2031)
14. Requires ADE to establish and administer the Ninth Grade On-Track Grant Program (Grant Program).
15. Allows ADE to adopt rules, policies and procedures to carry out the purposes of the Grant Program.
16. 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.
17. 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.
18. 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 in the school district or charter school during the term of the grant.
19. Caps the total number of grade nine students who may be funded by the Grant Program at 6,650 students.
20. 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.
21. 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.
22. 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.
23. Specifies that a school district or charter school must maintain records of meetings held to review data and develop intervention strategies for grade nine students and provide those records to ADE upon request.
24. 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.
School Financial Transparency Portal Transfer
25. Transfers oversight and administrative requirements relating to the School Financial Transparency Portal (Portal) from the Arizona Department of Administration (ADOA) to ADE.
26. Transfers ADOA's contracts, rules, property, records, data, investigative findings and obligations relating to the Portal to ADE on the general effective date.
27. Transfers all unspent and unencumbered monies appropriated to ADOA for the Portal to ADE.
28. Specifies that ADE may use the transferred Portal monies for the costs of the Portal.
Temporary Automatic External Defibrillator Requirements
29. 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.
30. 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
31. 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.
32. 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.
33. 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.
34. 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.
Miscellaneous
35. 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.
36. 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.
37. Conforms the tax year 2025 qualifying tax rates to reflect the required truth-in-taxation rate adjustment.
38. 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.
39. Defines terms.
40. Makes technical and conforming changes.
41. Becomes effective on the general effective date, with a retroactive provision as noted.
Governor's Veto Message
The Governor indicates in her veto message that H.B. 2956, and this version of the FY 2026 budget as a whole, does not provide adequate funding for health care coverage and K-12 education and inadequately addresses priorities such as childcare affordability, veteran homelessness and public safety. The Governor encourages working in a productive fashion to deliver a bipartisan solution for Arizonans.
House Action Senate Action
APPROP 6/12/25 DP 11-7-0-0 3rd Read 6/25/25 16-11-3
3rd Read 6/13/25 31-0-29
Vetoed by the Governor 6/25/25
Prepared by Senate Research
June 26, 2025
MH/slp