ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
aggregate expenditure limitation; school districts
Purpose
Subject to voter approval, constitutionally modifies the aggregate expenditure limitation determination by adjusting the total amount of expenditures of local revenues for all school districts for FY 2023, rather than FY 1980.
Background
Article IX, Section 21 of the Arizona Constitution establishes the aggregate expenditure limitation for all school districts that limits total expenditures of local revenues to the FY 1980 spending level plus 10 percent, adjusted for inflation and enrollment. Before May 1 of each year, the Economic Estimates Commission must determine the aggregate expenditure limitation for all school districts for the following fiscal year (Ariz. Const. art. 9 21).
The State Board of Education (SBE) by November 1 of each year, must report the aggregate expenditures of local revenues for all school districts for the current year to the President of the Senate, Speaker of the House of Representatives and Chairperson of the Joint Legislative Budget Committee. If the aggregate expenditures of local revenues for all school districts exceeds the limit, the SBE must notify each school district of the amount by which it may have to reduce its expenditures of local revenue. The Legislature may authorize, by March 1st, current fiscal year expenditures in excess of the limitation upon a two-thirds vote in both chambers of the Legislature (A.R.S. 15-911).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Modifies the determination of the aggregate expenditure limitation by requiring the Economic Estimates Commission to adjust the total amount of expenditures of local revenues for all school districts for FY 2023, rather than FY 1980.
2. Makes technical and conforming changes.
3. Requires the Secretary of State to submit the proposition to the voters at the next general election.
4. Becomes effective if approved by the voters and on proclamation of the Governor.
Prepared by Senate Research
February 5, 2021
JO/gs