The proposed bill, SB1729, establishes the Arizona Credit Enhancement Eligibility Board and the Arizona Credit Enhancement Program to help school districts and charter schools secure better financing terms by guaranteeing the payment of principal and interest on their debt obligations. The Board, composed of the Governor, Treasurer, and Superintendent of Public Instruction or their designees, will oversee the program, set eligibility criteria, and evaluate applications from schools. Key eligibility requirements include financial stability metrics and performance ratings for charter schools and school districts, along with an annual program participation fee.

Significant changes from current law include the creation of the new Board and Program, which were not previously in place, and the introduction of a program leverage ratio to ensure fiscal responsibility. The bill also mandates that schools notify the Board and Treasurer in advance if they anticipate difficulties in making payments, and it requires regular reporting on guaranteed financings and the program's financial status, thereby enhancing accountability and transparency in the management of state funds for educational financing.