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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
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HCR2007: reporting; teacher salary increases; schools
S/E: school districts; instructional expenses; requirements
Sponsor: Representative Gress, LD 4
Committee on Appropriations
Summary of the Strike-Everything Amendment to HCR 2007
Overview
Subject to voter approval, requires each school district with a student count of at least 200 to spend at least 60% of its operational spending on direct instructional expenses. Establishes requirements relating to direct instructional expenses for school districts, the Office of the Auditor General (OAG) and the Arizona Department of Education (ADE).
History
Statute requires the OAG to establish a schoolwide audit team to: 1) conduct performance audits of school districts; and 2) monitor school districts to determine the percentage of every dollar spent in the classroom. Accordingly, the OAG annually publishes the School District Spending Analysis Report, which details school district spending at both the state and school district level to monitor school districts and to determine the percentage of every dollar spent in the classroom by a school district (A.R.S. § 41-1279.03) (OAG).
The School District Spending Analysis Report analyzes total spending, which is combined operational and nonoperational spending. Operational spending includes costs to school districts incurred for day-to-day operations in seven categories, including instruction. The OAG monitors the state's and each school district's instructional spending percentage. This percentage represents how much of the state's or a school district's total operational spending was for instruction versus other operational areas. Instructional spending includes costs for teachers, teachers' aides, substitute teachers, graders, guest lectures, general instructional supplies, instructional aids, field trips, athletics, cocurricular activities and tuition. The FY 2024 School District Spending Analysis Report calculated the statewide instructional spending percentage at 52.6% (FY 2024 School District Spending Analysis).
Provisions
1. Mandates each school district with a student count of at least 200 spend at least 60% of its operational spending as defined by the OAG on direct instructional expenses.
2. Requires, beginning in FY 2028 and until the school district is in compliance, any school district that spends less than 60% of its operational spending on direct instructional expenses to increase the portion of operational spending that is spent on direct instructional expenses each year by at least 0.5% of the portion of operational spending that is spent on direct instructional expenses in the 2024-2025 school year.
3. Allows a school district, if the school district increases the portion of its operational spending on direct instructional expenses by more than 0.5% in any year, to count the portion of the increase that exceeds 0.5% toward any increase that is required in a subsequent year.
4. Instructs ADE, if the OAG determines a school district did not comply with the direct instructional expenses requirement, to withhold from the school district's state aid an amount equal to the difference between the amount the school district was required to spend on direct instructional expenses and the amount the school district spent on direct instructional expenses for the school year that is the subject of the OAG's determination.
5. Stipulates that if the OAG determines a school district did not comply with the direct instructional expenses requirement, the school district:
a. must establish a Direct Instruction Fund;
b. may use Direct Instruction Fund monies only for direct instructional expenses; and
c. may not supplant existing funding with revenues from the Direct Instruction Fund.
6. Requires, if the OAG determines a school district did not comply with the direct instructional expenses requirement, the following to occur:
a. ADE must return to the school district the withheld state aid monies; and
b. the school district must deposit the monies in its Direct Instruction Fund.
7. Requires the OAG, if the OAG determines a school district did not comply with the direct instructional expenses requirement, to include in the annual school district spending analysis report a statement indicating whether the school district spent all of its Direct Instruction Fund monies.
8. Instructs the OAG to annually:
a. determine whether each school district is in compliance with the direct instructional expenses requirement; and
b. report the determinations to ADE.
9. Authorizes the Superintendent of Public Instruction (SPI) to waive the state aid withholding requirement for a school district, except that:
a. the duration of a waiver may not exceed one year; and
b. the SPI may not issue a waiver for a school district for more than two consecutive years.
10. Directs the Secretary of State to submit this proposition to the voters at the next general election.
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14. Initials CH HCR 2007
15. 2/20/2026 Page 0 Appropriations
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