ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: ED DPA 9-2-0-1

HB4034: CTEDs; ADM; apportionment; responsibilities

Sponsor: Representative Gress, LD 4

Caucus & COW

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 (CTE board) and the Arizona Department of Education (ADE) 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 CTE 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 campus) is capped at 1.25. The school district and charter school must determine the apportionment of ADM (A.R.S. § 15-393).

Provisions

1. Specifies the management and control of a CTED that are vested in the CTE board include the funding for the CTED's ADM.

2. Authorizes a CTE 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 CTE board any financial records, documentation or information requested by the CTE 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 CTE 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 CTE 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 CTE board responsible for any funding related to the CTED's ADM.

7. Makes a technical change.

Amendments

Committee on Education

1. Requires the CTE board to submit to each school district that is part of the CTED a quarterly report that includes aggregate CTED expenditures and CTED expenditures for the benefit of each participating school district.

2. Modifies IGA or written contract requirements by:

a. requiring the IGA or written contract to be executed by July 1 of the year in which it is effective;

b. requiring the IGA or written contract to specify the quality of each instructor, rather than the quality of instruction as determined by the CTE board;

c. requiring the school district, charter school, university or CCD to oversee the evaluation of the instructor unless the IGA or written contract provides otherwise;

d. restoring existing statute that requires the services provided by the CTED, school district, charter school, university or CCD to be proportionally calculated in the cost of delivering the service;

e. adding that the IGA or written contract must specify that any party to the IGA or contract may file a complaint with the State Board of Vocational Education (SBVE) under rules adopted by the State Board of Education (SBE) acting as (SBVE) regarding an IGA or a contract dispute; and

f. including that if a CTE board and school district do not agree to the specified apportionment by July 1, SBE acting as SBVE must mediate the dispute and determine the apportionment for the school year by August 1.

3. Allows a participating school district, if the ADM generated by a CTE program or course is insufficient to pay for the costs of delivering the program or course, to use funding generated by other programs or courses and that exceeds the costs of delivering the other programs or courses to pay for the shortfall.

4. Requires SBE to resolve any complaints submitted regarding an IGA or a contract within 30 days after it receives the complaint and any required documentation.

5. Instructs the CTE board and CTE Division of ADE to accept and consider requests to approve or add satellite campus CTED programs or courses from July 1 through June 30 annually.

6. Modifies statute relating to the apportionment of the ADM generated by a student who attends a satellite campus CTE course or program by:

a. specifying a maximum of 1.0 must be attributed to the school district or charter school and a maximum of 0.25 must be attributed to the CTED, unless otherwise apportioned pursuant to an IGA;

b. directing the school district or charter school and the CTED to determine apportionment of the 0.25 ADM pursuant to a fully executed IGA; and

c. stipulating that in the absence of a fully executed IGA, the school district or charter school may not report an ADM for a satellite campus course or program, and ADM may not be generated for that course or program.

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g. Initials CH HB 4034

h. 2/19/2026 Page 0 Caucus & COW

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