ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
ENACTED
AMENDED
FACT SHEET FOR h.b. 2259/S.B. 1148
common school districts; unification; budget
Purpose
An emergency measure allowing a common school district, that elected to become a unified school district, to continue calculating its budget and equalization assistance until a high school is approved by the School Facilities Board (SFB) and constructed for the unified school district.
Background
A common school district that does not offer high school instruction and does not have a high school district within its boundaries may send a maximum of 350 students in grades 9 through 12 to a high school. The common school district is charged tuition for each student equal to the prior fiscal year s average daily membership. If the common school district and receiving school district enter into an agreement for tuition payment, the agreement must include the method for computing tuition and the timing of the payments. The agreement, and any renewals, may not be longer than five years. For the purposes of determining state aid, these pupils are deemed to be enrolled in the common school district and the tuition payments are included in the common school district s revenue control limit, including any transportation charges (A.R.S. 15-824 and 15-951).
Laws 2007, Chapter 283 allowed a common school district that was not within the boundaries of a high school district and that elected to become a unified school district to continue to include tuition costs in its budget and equalization assistance. Because a new high school was not constructed, this provision expired on July 1, 2011. Laws 2010, Chapter 332 extended the amount of time provided to these newly unified school districts to July 1, 2016, or until a new high school is constructed. Laws 2016, Chapter 220 further extended this timeframe to June 30, 2020, or until a high school is constructed. The Nadaburg Unified School District is the only school district affected by this session law.
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Continues to allow a common school district to calculate its budget and equalization assistance, to include tuition charges for high school students, for 15 years after the election or until a high school is built, if the common school district:
a) is outside the boundaries of a high school district; and
b) elected to become a unified school district.
2. Allows the newly formed unified school district, phasing in instruction for grades 9 through 12, to continue calculating its budget and equalization assistance for a maximum of five years after the first year of operation of the new high school in the unified school district.
3. Allows a qualified school district to retroactively adjust only its FY 2021 budget.
4. Repeals Laws 2007, Chapter 283, 6 as amended by Laws 2010, Chapter 332 28 and Laws 2016, Chapter 220.
5. Makes technical changes.
6. Becomes effective on February 12, 2021, retroactive to July 1, 2020.
Amendments Adopted by Committee
Extends, from 10 years to 15 years after the election or until a high school is built, the time period for a school district to continue calculating its budget and equalization assistance.
House Action Senate Action
ED 1/26/21 DPA 10-0-0-0 ED 1/26/21 DPA 8-0-0
3rd Read 2/3/21 57-2-0-0-1 3rd Read 2/4/21 29-0-1
(H.B. 2259 was substituted for S.B. 1148 on 3rd Read)
Signed by the Governor 2/12/21
Chapter 11
Prepared by Senate Research
March 10, 2021
JO/gs