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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: APPROP DPA/SE 11-7-0-0 |
HCR
2007: reporting; teacher salary increases; schools
NOW: instructional expenses; operational spending; enforcement
Sponsor: Representative Gress, LD 4
Substituted
Subject to voter approval, requires each school district with a student count of at least 7,500 or that operates a school in a county with a population of at least 500,000 to spend at least 60% of its operational spending on direct instructional expenses. Reduces a school district's Classroom Site Fund (CSF) allocation as outlined if the school district that fails to comply with the direct instructional expenses requirement.
History
The Auditor General (OAG) schoolwide audit team conducts school district performance audits and monitors school districts to determine the percentage of every dollar spent in the classroom. As statutorily required, the OAG annually publishes the School District Spending Analysis Report, which details a school district's total spending (combined operational and nonoperational spending). Operational spending includes costs incurred for day-to-day operations in seven categories: 1) instruction; 2) student support; 3) instruction support; 4) administration; 5) plant operations; 6) food service; and 7) transportation. The OAG monitors the state's and each school district's instructional spending percentage to determine 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 2025 School District Spending Analysis Report calculated the statewide instructional spending percentage at 52.1% (A.R.S. § 41-1279.03) (FY 2025 School District Spending Analysis Report).
The CSF consists of a portion of education sales tax monies and expendable earnings from the Permanent State School Fund. CSF monies must be used for class size reduction, teacher compensation and development, assessment intervention programs, dropout recovery programs, teacher liability insurance premiums and student support services. The Joint Legislative Budget Committee (JLBC) staff annually determines a per pupil amount from the CSF for the budget year according to the estimated current year statewide weighted student count and the estimated budget year CSF balance, adjusted for any prior year carryforward or shortfall. Charter schools and school districts receive an amount equal to the per pupil amount established by JLBC staff, multiplied by the charter school's or school district's weighted student count (A.R.S. § 15-977).
Provisions
1. Mandates each school district with a student count of at least 7,500 or that operates a school in a county with a population of at least 500,000 spend at least 60% of its operational spending 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% per 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% per year, to count the portion of the increase that exceeds 0.5% toward any increase required in a subsequent year.
4. Prohibits the OAG, if a school district reduces the portion of its operational spending on direct instructional expenses, from considering the reduction when calculating the amount of the required annual direct instructional expenses spending increase.
5. Stipulates that if a school district reduces the portion of its operational spending on direct instructional expenses, the school district may count only the portion of an increase in operational spending on direct instructional expenses for a subsequent year that results in an increase above the portion of operational spending before the reduction.
6. Directs the Arizona Department of Education to reduce a school district's CSF allocation for the budget year as follows if the school district receives CSF monies and the OAG determines the school district did not comply with the direct instructional expenses spending requirement in the immediately preceding fiscal year:
a. 25% of the amount that would otherwise be allocated if the school district did not comply for one year;
b. 50% of the amount that would otherwise be allocated if the school district did not comply for two years;
c. 75% of the amount that would otherwise be allocated if the school district did not comply for three years; and
d. an amount equal to the amount that would be otherwise allocated if the school district did not comply for at least four years.
7. Instructs JLBC staff to include in the CSF carryforward the monies that are not distributed because of the required reductions.
8. Authorizes the Superintendent of Public Instruction (SPI) to waive the CSF reduction requirements for a school district, except that:
a. the duration of a waiver may not exceed one year;
b. the SPI may not issue a waiver for a school district for more than two consecutive years; and
c. if the SPI issues a second waiver for a school district more than four years after the SPI issues a first waiver, the SPI may issue another waiver for the school district at any time during the 10-year period beginning the date the SPI issues the second waiver.
9. Clarifies the state, a state officer or a state agency is not required to maintain the CSF or allocate monies for a CSF except as otherwise provided by state law.
10. Requires the OAG to define direct instructional expenses and operational spending.
11. Directs the Secretary of State to submit this proposition to the voters at the next general election.
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15. Initials CH HCR 2007
16. 6/17/2026 Page 0 Substituted
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