ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

 

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HB4034: CTEDs; ADM; apportionment; responsibilities

Sponsor: Representative Gress, LD 4

Committee on Education

Overview

Makes several modifications to statute relating to career technical education districts (CTEDs), including average daily membership (ADM) apportionment and intergovernmental agreement (IGA) requirements.

History

A school district that is part of a CTED is required to use monies received from a CTED to supplement and not supplant base year career and technical education (CTE) courses and directly related equipment and facilities, except as otherwise authorized by statute. Each member school district must submit a report to the CTED governing board and the Arizona Department of Education that outlines the required maintenance of effort and how monies were used to supplement and not supplant base year CTE courses and directly related equipment and facilities.

Any agreement between a CTED governing board and another CTED or a school district, charter school, university or community college district (CCD) must be in the form of an IGA or other written contract. Statute requires the IGA or contract to specify outlined provisions, including: 1) the financial provisions and the format for the billing of all services; 2) the quality of the instruction that will be provided; 3) the amount the CTED will contribute to a CTE course and the amount of support required by the school district, charter school, university or CCD; and 4) that the services provided by the CTED, school district, university or CCD be proportionally calculated in the cost of delivering the service.

The ADM of a student who attends a CTE course or program provided at a facility owned or operated by a school district or charter school (satellite course) is capped at 1.25. The school district and charter school must determine the apportionment of ADM (A.R.S. § 15-393).

Provisions

1.   Adds that the management and control of a CTED that is vested in the CTED governing board includes the funding for the CTED's ADM.

2.   Authorizes a CTED governing board to monitor, review and audit each participating school district's and charter school's use of monies that are distributed by the CTED to ensure that the school district or charter school uses the monies to supplement and not supplant federal, state or local funding for CTE.

3.   Requires each school district and charter school that receives monies from a CTED to submit to the CTED governing board any financial records, documentation or information requested by the CTED governing board that is reasonably necessary for the CTED's oversight.

4.   Modifies the provisions that must be included in the IGA or other written contract between a CTED and another CTED or a school district, charter school, university or CCD by:

a.   specifying the quality of the instruction is as determined by the CTED governing board;

b.   removing the requirement that the services provided by the CTED, school district, charter school, university or CCD be proportionally calculated in the cost of delivering the service; and

c. requiring that, if ADM generated by a CTE program or course is insufficient to pay for the costs, the CTED, school district, charter school, university or CCD must pay a proportional share of the cost of delivery, as calculated by the CTED governing board.

5.   Allocates at least 0.25 of the ADM for a student attending a satellite campus CTE course or program to the CTED unless an IGA or written contract between the school district or charter school and the CTED prescribes a different apportionment.

6.   Makes a CTED governing board responsible for any funding related to the CTED's ADM.

7.   Makes a technical change.

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11.  Initials CH                       HB 4034

12.  2/15/2026  Page 0 Education

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