The proposed bill would update current statutes related to school district compliance with the Uniform System of Financial Records (USFR) by introducing new requirements and penalties. It would require the Arizona Department of Education (ADE) to prepare a uniform system of financial records, replacing the current language that refers to the preparation and implementation of such a system. The State Board of Education (SBE) would gain enhanced authority to direct the superintendent of public instruction to withhold up to ten percent of state funds for each violation and impose civil penalties against the school district's superintendent for ongoing deficiencies. Additionally, the bill mandates that school districts must correct deficiencies within ninety days and undergo training and interventions within thirty calendar days if they fail to do so. If deficiencies persist for eighteen months, a civil penalty of $1,000 per month will be imposed on the superintendent. Furthermore, school district governing boards would be prohibited from calling for override elections until all deficiencies are corrected, ensuring that financial compliance is prioritized before considering budget increases.

Statutes affected:
Introduced Version: 15-272, 15-302, 15-481, 15-491, 16-204, 15-905, 42-12003, 42-12001, 15-422, 15-423, 15-424, 15-426, 15-403, 15-947, 15-482, 15-949, 15-971, 15-447, 15-271