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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
K-12 education; FY2026
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. 2969 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 |
Miscellaneous
4. Conforms the tax year 2025 qualifying tax rates to reflect the required truth-in-taxation rate adjustment.
5. Authorizes the Arizona Department of Education (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.
6. 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.
7. Authorizes, in FY 2026, the Arizona State School for the Deaf and the Blind (ASDB) to use monies appropriated from the Telecommunication Fund for the Deaf for ASDB's educational and operational costs.
8. 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.
9. Makes technical and conforming changes.
10. Becomes effective on the general effective date.
House Action
APPROP 6/24/25 DP 11-6-0-2
3rd Read 6/24/25 31-25-4
Prepared by Senate Research
June 24, 2025
MH/ci