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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
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HB 4041: K-3 reading plan; cash balances
Sponsor: Representative Gress, LD 4
Committee on Education
Overview
Allows a school district to adopt a budget that exceeds its general budget limit (GBL) if the school district has an ending cash balance that exceeds its budget balance carryforwards and more than 30% of the school district's 3rd grade students do not demonstrate sufficient reading skills.
History
A school district governing board (governing board) must publish an annual financial report that contains budgeted and actual expenditures for the preceding fiscal year. The governing board is required to adopt a budget that does not exceed the GBL or unrestricted capital budget limit (A.R.S. §§ 15-904 and 15-905).
A budget balance is the difference between actual and budgeted expenditures. A school district may budget any budget balance in the Maintenance and Operation (M&O) Fund from the current fiscal year for use in the M&O Fund in the budget year, as well as the unexpended budget balance in the Unrestricted Capital Outlay (UCO) Fund from the previous fiscal year. The M&O Fund budget balance carryforward is capped at 4% of the school district's current year revenue control limit (A.R.S. §§ 15-943.01 and 15-947) (Uniform System of Financial Records).
Each school district and charter school must annually submit to the Arizona Department of Education a K-3 reading program plan for improving the reading proficiency of kindergarten, 1st, 2nd and 3rd grade students. The plan must include baseline data on the reading proficiency of the school district's or charter school's students and a budget for spending K-3 and K-3 reading support level weight monies (A.R.S. § 15-211).
Provisions
1. Authorizes a school district that has an ending cash balance in the M&O Fund and UCO Fund for the immediately preceding school year that exceeds the amount the school district budgeted from current year budget balance carryforwards to adopt a budget that exceeds the GBL without a budget override election if the:
a. amount does not exceed 20% of the difference between the ending cash balances and the budget balance carryforwards; and
b. more than 30% of the school district's 3rd grade students do not demonstrate sufficient reading skills as established by the State Board of Education according to the reading portion of the statewide assessment.
2. Requires the school district's budgeted amount to be funded by M&O Fund and UCO Fund monies that were not included in the current year budget.
3. Limits the school district to using the budgeted monies for instructional purposes based on the school district's K-3 reading program plan.
4. Asserts a school district may only use the budgeted monies to supplement and not supplant monies from any other source used for K-3 reading program plan expenditures.
5. Makes technical and conforming changes.
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9. Initials CH HB 4041
10. 2/15/2026 Page 0 Education
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