Senate Engrossed

State of Arizona Senate Forty-ninth Legislature Seventh Special Session 2010

SENATE BILL 1008

 

AN ACT

 

amending sections 15‑185, 15-901, 15-943, 15‑945 and 15‑972, Arizona Revised Statutes; amending Laws 2009, third special session, chapter 12, section 75; mAKING APPROPRIATIONS; relating to kindergarten through grade twelve budget reconciliation.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 15-185, Arizona Revised Statutes, is amended to read:

START_STATUTE15-185.  Charter schools; financing; civil penalty; transportation; definitions

A.  Financial provisions for a charter school that is sponsored by a school district governing board are as follows:

1.  The charter school shall be included in the district's budget and financial assistance calculations pursuant to paragraph 3 of this subsection and chapter 9 of this title, except for chapter 9, article 4 of this title. The charter of the charter school shall include a description of the methods of funding the charter school by the school district.  The school district shall send a copy of the charter and application, including a description of how the school district plans to fund the school, to the state board of education before the start of the first fiscal year of operation of the charter school.  The charter or application shall include an estimate of the student count for the charter school for its first fiscal year of operation. This estimate shall be computed pursuant to the requirements of paragraph 3 of this subsection.

2.  A school district is not financially responsible for any charter school that is sponsored by the state board of education or the state board for charter schools.

3.  A school district that sponsors a charter school may:

(a)  Increase its student count as provided in subsection B, paragraph 2 of this section during the first year of the charter school's operation to include those charter school pupils who were not previously enrolled in the school district.  A charter school sponsored by a school district governing board is eligible for the assistance prescribed in subsection B, paragraph 4 of this section.  The soft capital allocation as provided in section 15‑962 for the school district sponsoring the charter school shall be increased by the amount of the additional assistance.  The school district shall include the full amount of the additional assistance in the funding provided to the charter school.

(b)  Compute separate weighted student counts pursuant to section 15‑943, paragraph 2, subdivision (a) for its noncharter school versus charter school pupils in order to maintain eligibility for small school district support level weights authorized in section 15‑943, paragraph 1 for its noncharter school pupils only.  The portion of a district's student count that is attributable to charter school pupils is not eligible for small school district support level weights.

4.  If a school district uses the provisions of paragraph 3 of this subsection, the school district is not eligible to include those pupils in its student count for the purposes of computing an increase in its revenue control limit and district support level as provided in section 15‑948.

5.  A school district that sponsors a charter school is not eligible to include the charter school pupils in its student count for the purpose of computing an increase in its capital outlay revenue limit as provided in section 15‑961, subsection C, except that if the charter school was previously a school in the district, the district may include in its student count any charter school pupils who were enrolled in the school district in the prior year.

6.  A school district that sponsors a charter school is not eligible to include the charter school pupils in its student count for the purpose of computing the revenue control limit which is used to determine the maximum budget increase as provided in chapter 4, article 4 of this title unless the charter school is located within the boundaries of the school district.

7.  If a school district converts one or more of its district public schools to a charter school and receives assistance as prescribed in subsection B, paragraph 4 of this section, and subsequently converts the charter school back to a district public school, the school district shall repay the state the total additional assistance received for the charter school for all years that the charter school was in operation.  The repayment shall be in one lump sum and shall be reduced from the school district's current year equalization assistance.  The school district's general budget limit shall be reduced by the same lump sum amount in the current year.

B.  Financial provisions for a charter school that is sponsored by the state board of education or the state board for charter schools are as follows:

1.  The charter school shall calculate a base support level as prescribed in section 15‑943, except that sections 15‑941 and 15‑942 do not apply to these charter schools.

2.  Notwithstanding paragraph 1 of this subsection, the student count shall be determined initially using an estimated student count based on actual registration of pupils before the beginning of the school year.  After the first one hundred days or two hundred days in session, as applicable, the charter school shall revise the student count to be equal to the actual average daily membership, as defined in section 15‑901, or the adjusted average daily membership, as prescribed in section 15‑902, of the charter school.  A charter school that provides two hundred days of instruction may use section 15-902.02 for the purposes of this section.  Before the one hundredth day or two hundredth day in session, as applicable, the state board of education or the state board for charter schools may require a charter school to report periodically regarding pupil enrollment and attendance, and the department of education may revise its computation of equalization assistance based on the report.  A charter school shall revise its student count, base support level and additional assistance before May 15.  A charter school that overestimated its student count shall revise its budget before May 15.  A charter school that underestimated its student count may revise its budget before May 15.

3.  A charter school may utilize section 15‑855 for the purposes of this section.  The charter school and the department of education shall prescribe procedures for determining average daily attendance and average daily membership.

4.  Equalization assistance for the charter school shall be determined by adding the amount of the base support level and additional assistance.  The amount of the additional assistance is one thousand five hundred eighty‑eight dollars forty‑four six hundred seven dollars fifty cents per student count in kindergarten programs and grades one through eight and one thousand eight hundred fifty‑one dollars thirty seventy‑three dollars fifty‑two cents per student count in grades nine through twelve.

5.  The state board of education shall apportion state aid from the appropriations made for such purposes to the state treasurer for disbursement to the charter schools in each county in an amount as determined by this paragraph.  The apportionments shall be made as prescribed in section 15‑973, subsection B.

6.  The charter school shall not charge tuition for pupils who reside in this state, levy taxes or issue bonds.  A charter school may admit pupils who are not residents of this state and shall charge tuition for those pupils in the same manner prescribed in section 15‑823.

7.  Not later than noon on the day preceding each apportionment date established by paragraph 5 of this subsection, the superintendent of public instruction shall furnish to the state treasurer an abstract of the apportionment and shall certify the apportionment to the department of administration, which shall draw its warrant in favor of the charter schools for the amount apportioned.

C.  If a pupil is enrolled in both a charter school and a public school that is not a charter school, the sum of the daily membership, which includes enrollment as prescribed in section 15‑901, subsection A, paragraph 2, subdivisions (a) and (b) and daily attendance as prescribed in section 15‑901, subsection A, paragraph 6, for that pupil in the school district and the charter school shall not exceed 1.0, except that if the pupil is enrolled in both a charter school and a joint technological education district and resides within the boundaries of a school district participating in the joint technological education district, the sum of the average daily membership for that pupil in the charter school and the joint technological education district shall not exceed 1.25.  If a pupil is enrolled in both a charter school and a public school that is not a charter school, the department of education shall direct the average daily membership to the school with the most recent enrollment date.  Upon validation of actual enrollment in both a charter school and a public school that is not a charter school and if the sum of the daily membership or daily attendance for that pupil is greater than 1.0, the sum shall be reduced to 1.0 and shall be apportioned between the public school and the charter school based on the percentage of total time that the pupil is enrolled or in attendance in the public school and the charter school, except that if the pupil is enrolled in both a charter school and a joint technological education district and resides within the boundaries of a school district participating in the joint technological education district, the sum of the average daily membership for that pupil in the charter school and the joint technological education district shall be reduced to 1.25 and shall be apportioned between the charter school and the joint technological education district based on the percentage of total time that the pupil is enrolled or in attendance in the charter school and the joint technological education district.  The uniform system of financial records shall include guidelines for the apportionment of the pupil enrollment and attendance as provided in this section.

D.  Charter schools are allowed to accept grants and gifts to supplement their state funding, but it is not the intent of the charter school law to require taxpayers to pay twice to educate the same pupils.  The base support level for a charter school or for a school district sponsoring a charter school shall be reduced by an amount equal to the total amount of monies received by a charter school from a federal or state agency if the federal or state monies are intended for the basic maintenance and operations of the school.  The superintendent of public instruction shall estimate the amount of the reduction for the budget year and shall revise the reduction to reflect the actual amount before May 15 of the current year.  If the reduction results in a negative amount, the negative amount shall be used in computing all budget limits and equalization assistance, except that:

1.  Equalization assistance shall not be less than zero.

2.  For a charter school sponsored by the state board of education or the state board for charter schools, the total of the base support level and the additional assistance shall not be less than zero.

3.  For a charter school sponsored by a school district, the base support level for the school district shall not be reduced by more than the amount that the charter school increased the district's base support level, capital outlay revenue limit and soft capital allocation.

E.  If a charter school was a district public school in the prior year and is now being operated for or by the same school district and sponsored by the state board of education, the state board for charter schools or a school district governing board, the reduction in subsection D of this section applies.  The reduction to the base support level of the charter school or the sponsoring district of the charter school shall equal the sum of the base support level and the additional assistance received in the current year for those pupils who were enrolled in the traditional public school in the prior year and are now enrolled in the charter school in the current year.

F.  Equalization assistance for charter schools shall be provided as a single amount based on average daily membership without categorical distinctions between maintenance and operations or capital.

G.  At the request of a charter school, the county school superintendent of the county where the charter school is located may provide the same educational services to the charter school as prescribed in section 15‑308, subsection A.  The county school superintendent may charge a fee to recover costs for providing educational services to charter schools.

H.  If the sponsor of the charter school determines at a public meeting that the charter school is not in compliance with federal law, with the laws of this state or with its charter, the sponsor of a charter school may submit a request to the department of education to withhold up to ten per cent of the monthly apportionment of state aid that would otherwise be due the charter school.  The department of education shall adjust the charter school's apportionment accordingly.  The sponsor shall provide written notice to the charter school at least seventy‑two hours before the meeting and shall allow the charter school to respond to the allegations of noncompliance at the meeting before the sponsor makes a final determination to notify the department of education of noncompliance.  The charter school shall submit a corrective action plan to the sponsor on a date specified by the sponsor at the meeting.  The corrective action plan shall be designed to correct deficiencies at the charter school and to ensure that the charter school promptly returns to compliance.  When the sponsor determines that the charter school is in compliance, the department of education shall restore the full amount of state aid payments to the charter school.

I.  In addition to the withholding of state aid payments pursuant to subsection H of this section, the sponsor of a charter school may impose a civil penalty of one thousand dollars per occurrence if a charter school fails to comply with the fingerprinting requirements prescribed in section 15‑183, subsection C or section 15‑512.  The sponsor of a charter school shall not impose a civil penalty if it is the first time that a charter school is out of compliance with the fingerprinting requirements and if the charter school provides proof within forty-eight hours of written notification that an application for the appropriate fingerprint check has been received by the department of public safety.  The sponsor of the charter school shall obtain proof that the charter school has been notified, and the notification shall identify the date of the deadline and shall be signed by both parties.  The sponsor of a charter school shall automatically impose a civil penalty of one thousand dollars per occurrence if the sponsor determines that the charter school subsequently violates the fingerprinting requirements.  Civil penalties pursuant to this subsection shall be assessed by requesting the department of education to reduce the amount of state aid that the charter school would otherwise receive by an amount equal to the civil penalty.  The amount of state aid withheld shall revert to the state general fund at the end of the fiscal year.

J.  A charter school may receive and spend monies distributed by the department of education pursuant to section 42‑5029, subsection E and section 37‑521, subsection B.

K.  If a school district transports or contracts to transport pupils to the Arizona state schools for the deaf and the blind during any fiscal year, the school district may transport or contract with a charter school to transport sensory impaired pupils during that same fiscal year to a charter school if requested by the parent of the pupil and if the distance from the pupil's place of actual residence within the school district to the charter school is less than the distance from the pupil's place of actual residence within the school district to the campus of the Arizona state schools for the deaf and the blind.

L.  For the purposes of this section:

1.  "Monies intended for the basic maintenance and operations of the school" means monies intended to provide support for the educational program of the school, except that it does not include supplemental assistance for a specific purpose or title VIII of the elementary and secondary education act of 1965 monies.  The auditor general shall determine which federal or state monies meet the definition in this paragraph.

2.  "Operated for or by the same school district" means the charter school is either governed by the same district governing board or operated by the district in the same manner as other traditional schools in the district or is operated by an independent party that has a contract with the school district.  The auditor general and the department of education shall determine which charter schools meet the definition in this subsection. END_STATUTE

Sec. 2.  Section 15-901, Arizona Revised Statutes, is amended to read:

START_STATUTE15-901.  Definitions

A.  In this title, unless the context otherwise requires:

1.  "Average daily attendance" or "ADA" means actual average daily attendance through the first one hundred days or two hundred days in session, as applicable.

2.  "Average daily membership" means the total enrollment of fractional students and full‑time students, minus withdrawals, of each school day through the first one hundred days or two hundred days in session, as applicable, for the current year.  Withdrawals include students formally withdrawn from schools and students absent for ten consecutive school days, except for excused absences as identified by the department of education.  For computation purposes, the effective date of withdrawal shall be retroactive to the last day of actual attendance of the student.

(a)  "Fractional student" means:

(i)  For common schools, until fiscal year 2001‑2002, a preschool child who is enrolled in a program for preschool children with disabilities of at least three hundred sixty minutes each week or a kindergarten student at least five years of age prior to January 1 of the school year and enrolled in a school kindergarten program that meets at least three hundred forty‑six instructional hours during the minimum number of days required in a school year as provided in section 15‑341.  In fiscal year 2001‑2002, the kindergarten program shall meet at least three hundred forty‑eight hours.  In fiscal year 2002‑2003, the kindergarten program shall meet at least three hundred fifty hours.  In fiscal year 2003‑2004, the kindergarten program shall meet at least three hundred fifty‑two hours.  In fiscal year 2004‑2005, the kindergarten program shall meet at least three hundred fifty‑four hours. In fiscal year 2005‑2006 and each fiscal year thereafter, the kindergarten program shall meet at least three hundred fifty‑six hours.  Lunch periods and recess periods may not be included as part of the instructional hours unless the child's individualized education program requires instruction during those periods and the specific reasons for such instruction are fully documented.  In computing the average daily membership, preschool children with disabilities and kindergarten students shall be counted as one‑half of a full‑time student.  For common schools, a part‑time student is a student enrolled for less than the total time for a full‑time student as defined in this section.  A part‑time common school student shall be counted as one‑fourth, one‑half or three‑fourths of a full‑time student if the student is enrolled in an instructional program that is at least one‑fourth, one‑half or three‑fourths of the time a full‑time student is enrolled as defined in subdivision (b) of this paragraph.

(ii)  For high schools, a part‑time student who is enrolled in less than four subjects that count toward graduation as defined by the state board of education in a recognized high school and who is taught in less than twenty instructional hours per week prorated for any week with fewer than five school days.  A part‑time high school student shall be counted as one‑fourth, one‑half or three‑fourths of a full‑time student if the student is enrolled in an instructional program that is at least one‑fourth, one‑half or three‑fourths of a full‑time instructional program as defined in subdivision (c) of this paragraph.

(b)  "Full‑time student" means:

(i)  For common schools, a student who is at least six years of age prior to January 1 of a school year, who has not graduated from the highest grade taught in the school district and who is regularly enrolled in a course of study required by the state board of education.  Until fiscal year 2001‑2002, first, second and third grade students, ungraded students at least six, but under nine, years of age by September 1 or ungraded group B children with disabilities who are at least five, but under six, years of age by September 1 must be enrolled in an instructional program that meets for a total of at least six hundred ninety‑two hours during the minimum number of days required in a school year as provided in section 15‑341.  In fiscal year 2001‑2002, the program shall meet at least six hundred ninety‑six hours.  In fiscal year 2002‑2003, the program shall meet at least seven hundred hours. In fiscal year 2003‑2004, the program shall meet at least seven hundred four hours.  In fiscal year 2004‑2005, the program shall meet at least seven hundred eight hours.  In fiscal year 2005‑2006 and in each fiscal year thereafter, the program shall meet at least seven hundred twelve hours.  Until fiscal year 2001‑2002, fourth, fifth and sixth grade students or ungraded students at least nine, but under twelve, years of age by September 1 must be enrolled in an instructional program that meets for a total of at least eight hundred sixty‑five hours during the minimum number of school days required in a school year as provided in section 15‑341.  In fiscal year 2001‑2002, the program shall meet at least eight hundred seventy hours.  In fiscal year 2002‑2003, the program shall meet at least eight hundred seventy‑five hours. In fiscal year 2003‑2004, the program shall meet at least eight hundred eighty hours.  In fiscal year 2004‑2005, the program shall meet at least eight hundred eighty‑five hours.  In fiscal year 2005‑2006 and each fiscal year thereafter, the program shall meet at least eight hundred ninety hours.  Until fiscal year 2001‑2002, seventh and eighth grade students or ungraded students at least twelve, but under fourteen, years of age by September 1 must be enrolled in an instructional program that meets for a total of at least one thousand thirty‑eight hours during the minimum number of days required in a school year as provided in section 15‑341.  In fiscal year 2001‑2002, the program shall meet at least one thousand forty‑four hours.  In fiscal year 2002‑2003, the program shall meet at least one thousand fifty hours.  In fiscal year 2003‑2004, the program shall meet at least one thousand fifty‑six hours.  In fiscal year 2004‑2005, the program shall meet at least one thousand sixty‑two hours.  In fiscal year 2005‑2006 and each fiscal year thereafter, the program shall meet at least one thousand sixty‑eight hours.  Lunch periods and recess periods may not be included as part of the instructional hours unless the student is a child with a disability and the child's individualized education program requires instruction during those periods and the specific reasons for such instruction are fully documented.

(ii)  For high schools, except as provided in section 15‑105, a student not graduated from the highest grade taught in the school district, or an ungraded student at least fourteen years of age by September 1, and enrolled in at least a full‑time instructional program of subjects that count toward graduation as defined by the state board of education in a recognized high school.  A full‑time student shall not be counted more than once for computation of average daily membership.

(iii)  Except as otherwise provided by law, for a full‑time high school student who is concurrently enrolled in two school districts or two charter schools, the average daily membership shall not exceed 1.0.

(iv)  Except as otherwise provided by law, for any student who is concurrently enrolled in a school district and a charter school, the average daily membership shall be apportioned between the school district and the charter school and shall not exceed 1.0.  The apportionment shall be based on the percentage of total time that the student is enrolled in or in attendance at the school district and the charter school.

(v)  Except as otherwise provided by law, for any student who is concurrently enrolled, pursuant to section 15-808, in a school district and Arizona online instruction or a charter school and Arizona online instruction, the average daily membership shall be apportioned between the school district and Arizona online instruction or the charter school and Arizona online instruction and shall not exceed 1.0.  The apportionment shall be based on the percentage of total time that the student is enrolled in or in attendance at the school district and Arizona online instruction or the charter school and Arizona online instruction.

(vi)  For homebound or hospitalized, a student receiving at least four hours of instruction per week.

(c)  "Full‑time instructional program" means:

(i)  Through fiscal year 2000‑2001, at least four subjects, each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty hours a year, or the equivalent, or one or more subjects taught in amounts of time totaling at least twenty hours per week prorated for any week with fewer than five school days.

(ii)  For fiscal year 2001‑2002, an instructional program that meets at least a total of seven hundred four hours during the minimum number of days required and includes at least four subjects each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty‑two hours a year, or the equivalent, or one or more subjects taught in amounts of time totaling at least twenty hours per week prorated for any week with fewer than five school days.

(iii)  For fiscal year 2002‑2003, an instructional program that meets at least a total of seven hundred eight hours during the minimum number of days required and includes at least four subjects each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty‑two hours a year, or the equivalent, or one or more subjects taught in amounts of time totaling at least twenty hours per week prorated for any week with fewer than five school days.

(iv)  For fiscal year 2003‑2004, an instructional program that meets at least a total of seven hundred twelve hours during the minimum number of days required and includes at least four subjects each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty‑three hours a year, or the equivalent, or one or more subjects taught in amounts of time totaling at least twenty hours per week prorated for any week with fewer than five school days.

(v)  For fiscal year 2004‑2005, an instructional program that meets at least a total of seven hundred sixteen hours during the minimum number of days required and includes at least four subjects each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty‑three hours a year, or the equivalent, or one or more subjects taught in amounts of time totaling at least twenty hours per week prorated for any week with fewer than five school days.

(vi)  For fiscal year 2005‑2006 and each fiscal year thereafter, an instructional program that meets at least a total of seven hundred twenty hours during the minimum number of days required and includes at least four subjects each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty‑three hours a year, or the equivalent, or one or more subjects taught in amounts of time totaling at least twenty hours per week prorated for any week with fewer than five school days.

3.  "Budget year" means the fiscal year for which the school district is budgeting and which immediately follows the current year.

4.  "Common school district" means a political subdivision of this state offering instruction to students in programs for preschool children with disabilities and kindergarten programs and grades one through eight.

5.  "Current year" means the fiscal year in which a school district is operating.

6.  "Daily attendance" means:

(a)  For common schools, days in which a pupil:

(i)  Of a kindergarten program or ungraded, but not group B children with disabilities, and at least five, but under six, years of age by September 1 attends at least three‑quarters of the instructional time scheduled for the day.  If the total instruction time scheduled for the year is at least three hundred forty‑six hours but is less than six hundred ninety‑two hours such attendance shall be counted as one‑half day of attendance.  If the instructional time scheduled for the year is at least six hundred ninety‑two hours, "daily attendance" means days in which a pupil attends at least one‑half of the instructional time scheduled for the day. Such attendance shall be counted as one‑half day of attendance.

(ii)  Of the first, second or third grades, ungraded and at least six, but under nine, years of age by September 1 or ungraded group B children with disabilities and at least five, but under six, years of age by September 1 attends more than three‑quarters of the instructional time scheduled for the day.

(iii)  Of the fourth, fifth or sixth grades or ungraded and at least nine, but under twelve, years of age by September 1 attends more than three‑quarters of the instructional time scheduled for the day, except as provided in section 15‑797.

(iv)  Of the seventh or eighth grades or ungraded and at least twelve, but under fourteen, years of age by September 1 attends more than three‑quarters of the instructional time scheduled for the day, except as provided in section 15‑797.

(b)  For common schools, the attendance of a pupil at three‑quarters or less of the instructional time scheduled for the day shall be counted as follows, except as provided in section 15‑797 and except that attendance for a fractional student shall not exceed the pupil's fractional membership:

(i)  If attendance for all pupils in the school is based on quarter days, the attendance of a pupil shall be counted as one‑fourth of a day's attendance for each one‑fourth of full‑time instructional time attended.

(ii)  If attendance for all pupils in the school is based on half days, the attendance of at least three‑quarters of the instructional time scheduled for the day shall be counted as a full day's attendance and attendance at a minimum of one‑half but less than three‑quarters of the instructional time scheduled for the day equals one‑half day of attendance.

(c)  For common schools, the attendance of a preschool child with disabilities shall be counted as one‑fourth day's attendance for each thirty‑six minutes of attendance not including lunch periods and recess periods, except as provided in paragraph 2, subdivision (a), item (i) of this subsection for children with disabilities up to a maximum of three hundred sixty minutes each week.

(d)  For high schools or ungraded schools in which the pupil is at least fourteen years of age by September 1, the attendance of a pupil shall not be counted as a full day unless the pupil is actually and physically in attendance and enrolled in and carrying four subjects, each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty hours a year, or the equivalent, that count toward graduation in a recognized high school except as provided in section 15‑797 and subdivision (e) of this paragraph.  Attendance of a pupil carrying less than the load prescribed shall be prorated.

(e)  For high schools or ungraded schools in which the pupil is at least fourteen years of age by September 1, the attendance of a pupil may be counted as one‑fourth of a day's attendance for each sixty minutes of instructional time in a subject that counts toward graduation, except that attendance for a pupil shall not exceed the pupil's full or fractional membership.

(f)  For homebound or hospitalized, a full day of attendance may be counted for each day during a week in which the student receives at least four hours of instruction.

(g)  For school districts which maintain school for an approved year‑round school year operation, attendance shall be based on a computation, as prescribed by the superintendent of public instruction, of the one hundred eighty days' equivalency or two hundred days' equivalency, as applicable, of instructional time as approved by the superintendent of public instruction during which each pupil is enrolled.

7.  "Daily route mileage" means the sum of:

(a)  The total number of miles driven daily by all buses of a school district while transporting eligible students from their residence to the school of attendance and from the school of attendance to their residence on scheduled routes approved by the superintendent of public instruction.

(b)  The total number of miles driven daily on routes approved by the superintendent of public instruction for which a private party, a political subdivision or a common or a contract carrier is reimbursed for bringing an eligible student from the place of his residence to a school transportation pickup point or to the school of attendance and from the school transportation scheduled return point or from the school of attendance to his residence.  Daily route mileage includes the total number of miles necessary to drive to transport eligible students from and to their residence as provided in this paragraph.

8.  "District support level" means the base support level plus the transportation support level.

9.  "Eligible students" means:

(a)  Students who are transported by or for a school district and who qualify as full‑time students or fractional students, except students for whom transportation is paid by another school district or a county school superintendent, and:

(i)  For common school students, whose place of actual residence within the school district is more than one mile from the school facility of attendance or students who are admitted pursuant to section 15‑816.01 and who meet the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1785) for free or reduced price lunches and whose actual place of residence outside the school district boundaries is more than one mile from the school facility of attendance.

(ii)  For high school students, whose place of actual residence within the school district is more than one and one‑half miles from the school facility of attendance or students who are admitted pursuant to section 15‑816.01 and who meet the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1785) for free or reduced price lunches and whose actual place of residence outside the school district boundaries is more than one and one‑half miles from the school facility of attendance.

(b)  Kindergarten students, for purposes of computing the number of eligible students under subdivision (a), item (i) of this paragraph, shall be counted as full‑time students, notwithstanding any other provision of law.

(c)  Children with disabilities, as defined by section 15‑761, who are transported by or for the school district or who are admitted pursuant to chapter 8, article 1.1 of this title and who qualify as full‑time students or fractional students regardless of location or residence within the school district or children with disabilities whose transportation is required by the pupil's individualized education program.

(d)  Students whose residence is outside the school district and who are transported within the school district on the same basis as students who reside in the school district.

10.  "Enrolled" or "enrollment" means when a pupil is currently registered in the school district.

11.  "GDP price deflator" means the average of the four implicit price deflators for the gross domestic product reported by the United States department of commerce for the four quarters of the calendar year.

12.  "High school district" means a political subdivision of this state offering instruction to students for grades nine through twelve or that portion of the budget of a common school district which is allocated to teaching high school subjects with permission of the state board of education.

13.  "Revenue control limit" means the base revenue control limit plus the transportation revenue control limit.

14.  "Student count" means average daily membership as prescribed in this subsection for the fiscal year prior to the current year, except that for the purpose of budget preparation student count means average daily membership as prescribed in this subsection for the current year.

15.  "Submit electronically" means submitted in a format and in a manner prescribed by the department of education.

16.  "Total bus mileage" means the total number of miles driven by all buses of a school district during the school year.

17.  "Total students transported" means all eligible students transported from their place of residence to a school transportation pickup point or to the school of attendance and from the school of attendance or from the school transportation scheduled return point to their place of residence.

18.  "Unified school district" means a political subdivision of the state offering instruction to students in programs for preschool children with disabilities and kindergarten programs and grades one through twelve.

B.  In this title, unless the context otherwise requires:

1.  "Base" means the revenue level per student count specified by the legislature.

2.  "Base level" means:

(a)  For fiscal year 2007‑2008, three thousand two hundred twenty‑six dollars eighty-eight cents.

(b)  For fiscal year 2008-2009, three thousand two hundred ninety-one dollars forty-two cents.

(c)  For fiscal year years 2009‑2010 and 2010-2011, three thousand two hundred sixty‑seven dollars seventy‑two cents.

3.  "Base revenue control limit" means the base revenue control limit computed as provided in section 15‑944.

4.  "Base support level" means the base support level as provided in section 15‑943.

5.  "Certified teacher" means a person who is certified as a teacher pursuant to the rules adopted by the state board of education, who renders direct and personal services to school children in the form of instruction related to the school district's educational course of study and who is paid from the maintenance and operation section of the budget.

6.  "DD" means programs for children with developmental delays who are at least three years of age but under ten years of age.  A preschool child who is categorized under this paragraph is not eligible to receive funding pursuant to section 15-943, paragraph 2, subdivision (b).

7.  "ED, MIMR, SLD, SLI and OHI" means programs for children with emotional disabilities, mild mental retardation, a specific learning disability, a speech/language impairment and other health impairments.  A preschool child who is categorized as SLI under this paragraph is not eligible to receive funding pursuant to section 15-943, paragraph 2, subdivision (b).

8.  "ED‑P" means programs for children with emotional disabilities who are enrolled in private special education programs as prescribed in section 15‑765, subsection D, paragraph 1 or in an intensive school district program as provided in section 15‑765, subsection D, paragraph 2.

9.  "ELL" means English learners who do not speak English or whose native language is not English, who are not currently able to perform ordinary classroom work in English and who are enrolled in an English language education program pursuant to sections 15‑751, 15‑752 and 15‑753.

10.  "Full‑time equivalent certified teacher" or "FTE certified teacher" means for a certified teacher the following:

(a)  If employed full time as defined in section 15‑501, 1.00.

(b)  If employed less than full time, multiply 1.00 by the percentage of a full school day, or its equivalent, or a full class load, or its equivalent, for which the teacher is employed as determined by the governing board.

11.  "Group A" means educational programs for career exploration, a specific learning disability, an emotional disability, mild mental retardation, remedial education, a speech/language impairment, developmental delay, homebound, bilingual, other health impairments and gifted pupils.

12.  "Group B" means educational improvements for pupils in kindergarten programs and grades one through three, educational programs for autism, a hearing impairment, moderate mental retardation, multiple disabilities, multiple disabilities with severe sensory impairment, orthopedic impairments, preschool severe delay, severe mental retardation and emotional disabilities for school age pupils enrolled in private special education programs or in school district programs for children with severe disabilities or visual impairment and English learners enrolled in a program to promote English language proficiency pursuant to section 15‑752.

13.  "HI" means programs for pupils with hearing impairment.

14.  "Homebound" or "hospitalized" means a pupil who is capable of profiting from academic instruction but is unable to attend school due to illness, disease, accident or other health conditions, who has been examined by a competent medical doctor and who is certified by that doctor as being unable to attend regular classes for a period of not less than three school months or a pupil who is capable of profiting from academic instruction but is unable to attend school regularly due to chronic or acute health problems, who has been examined by a competent medical doctor and who is certified by that doctor as being unable to attend regular classes for intermittent periods of time totaling three school months during a school year.  The medical certification shall state the general medical condition, such as illness, disease or chronic health condition, that is the reason that the pupil is unable to attend school.  Homebound or hospitalized includes a student who is unable to attend school for a period of less than three months due to a pregnancy if a competent medical doctor, after an examination, certifies that the student is unable to attend regular classes due to risk to the pregnancy or to the student's health.

15.  "K" means kindergarten programs.

16.  15.  "K‑3" means kindergarten programs and grades one through three.

17.  16.  "MD‑R, A‑R and SMR‑R" means resource programs for pupils with multiple disabilities, autism and severe mental retardation.

18.  17.  "MD‑SC, A‑SC and SMR‑SC" means self‑contained programs for pupils with multiple disabilities, autism and severe mental retardation.

19.  18.  "MDSSI" means a program for pupils with multiple disabilities with severe sensory impairment.

20.  19.  "MOMR" means programs for pupils with moderate mental retardation.

21.  20.  "OI‑R" means a resource program for pupils with orthopedic impairments.

22.  21.  "OI‑SC" means a self‑contained program for pupils with orthopedic impairments.

23.  22.  "PSD" means preschool programs for children with disabilities as provided in section 15‑771.

24.  23.  "P‑SD" means programs for children who meet the definition of preschool severe delay as provided in section 15‑771.

25.  24.  "Qualifying tax rate" means the qualifying tax rate specified in section 15‑971 applied to the assessed valuation used for primary property taxes.

26.  25.  "Small isolated school district" means a school district which meets all of the following:

(a)  Has a student count of fewer than six hundred in kindergarten programs and grades one through eight or grades nine through twelve.

(b)  Contains no school which is fewer than thirty miles by the most reasonable route from another school, or, if road conditions and terrain make the driving slow or hazardous, fifteen miles from another school which teaches one or more of the same grades and is operated by another school district in this state.

(c)  Is designated as a small isolated school district by the superintendent of public instruction.

27.  26.  "Small school district" means a school district which meets all of the following:

(a)  Has a student count of fewer than six hundred in kindergarten programs and grades one through eight or grades nine through twelve.

(b)  Contains at least one school which is fewer than thirty miles by the most reasonable route from another school which teaches one or more of the same grades and is operated by another school district in this state.

(c)  Is designated as a small school district by the superintendent of public instruction.

28.  27.  "Transportation revenue control limit" means the transportation revenue control limit computed as prescribed in section 15‑946.

29.  28.  "Transportation support level" means the support level for pupil transportation operating expenses as provided in section 15‑945.

30.  29.  "VI" means programs for pupils with visual impairments.

31.  30.  "Voc. Ed." means career and technical education and vocational education programs, as defined in section 15‑781. END_STATUTE

Sec. 3.  Section 15-943, Arizona Revised Statutes, is amended to read:

START_STATUTE15-943.  Base support level

The base support level for each school district shall be computed as follows:

1.  The following support level weights shall be used in paragraph 2, subdivision (a) of this section for the following school districts:

(a)  For school districts whose student count in kindergarten programs and grades one through eight is classified in column 1 of this subdivision, the support level weight for kindergarten programs and grades one through eight is the corresponding support level weight prescribed in column 2 or 3 of this subdivision, whichever is appropriate:

      Column 1              Column 2                        Column 3

                        Support Level Weight           Support Level Weight

                         For Small Isolated                 For Small

   Student Count          School Districts               School Districts

       1-99            1.559                          1.399

      100-499           1.358 + [0.0005 x (500         1.278 + [0.0003 x (500

                        - student count)]              - student count)]

      500-599           1.158 + [0.002 x (600          1.158 + [0.0012 x (600

                        - student count)]              - student count)]

(b)  For school districts whose student count in grades nine through twelve is classified in column 1 of this subdivision, the support level weight for grades nine through twelve is the corresponding support level weight prescribed in column 2 or 3 of this subdivision, whichever is appropriate:

      Column 1              Column 2                        Column 3

                        Support Level Weight           Support Level Weight

                         For Small Isolated                 For Small

   Student Count          School Districts               School Districts

       1-99            1.669                          1.559

      100-499           1.468 + [0.0005 x (500         1.398 + [0.0004 x (500

                        - student count)]              – student count)]

      500-599           1.268 + [0.002 x (600          1.268 + [0.0013 x (600

                        - student count)]              – student count)]

2.  Subject to paragraph 1 of this section, determine the weighted student count as follows:

(a)

                              Support                       Weighted

                              Level       Student           Student

Grade Base        Group A     Weight       Count            Count

PSD   1.000   +   0.450   =   1.450   x               =             

K-8   1.000   +   0.158   =   1.158   x               =             

9-12  1.163   +   0.105   =   1.268   x               =             

                                        Subtotal     A             

(b)

                              Support                       Weighted

Funding                       Level      Student            Student

Category                      Weight     Count              Count

HI                            4.771   x                =                 

K, for fiscal year

2006-2007                     0.835   x   _______      =     ____________

K, for fiscal year

2007-2008 and each

fiscal year thereafter        1.352   x   _______      =     ____________

K-3                           0.060   x                =                 

ELL                           0.115   x   _______      =     ____________

MD-R, A-R and    

SMR-R                         6.024   x                =                 

MD-SC, A-SC and              

SMR-SC                        5.833   x                =                 

MD-SSI                        7.947   x                =                 

OI-R                          3.158   x                =                 

OI-SC                         6.773   x                =                 

P-SD                          3.595   x   _______      =     ____________

DD, ED, MIMR, SLD,

SLI and OHI                   0.003   x   ________     =     ____________

ED-P                          4.822   x                =                 

MOMR                          4.421   x                =                 

VI                            4.806   x                =                 

                                     Subtotal         B                 

(c)  Total of subtotals A and B:                                     

3.  Multiply the total determined in paragraph 2 of this section by the base level.

4.  Multiply the teacher experience index of the district or 1.00, whichever is greater, by the product obtained in paragraph 3 of this section.

5.  Add the amount determined in section 15-910.04. END_STATUTE

Sec. 4.  Section 15-945, Arizona Revised Statutes, is amended to read:

START_STATUTE15-945.  Transportation support level

A.  The support level for to and from school for each school district for the current year shall be computed as follows:

1.  Determine the approved daily route mileage of the school district for the fiscal year prior to the current year.

2.  Multiply the figure obtained in paragraph 1 of this subsection by one hundred eighty.

3.  Determine the number of eligible students transported in the fiscal year prior to the current year.

4.  Divide the amount determined in paragraph 1 of this subsection by the amount determined in paragraph 3 of this subsection to determine the approved daily route mileage per eligible student transported.

5.  Determine the classification in column 1 of this paragraph for the quotient determined in paragraph 4 of this subsection.  Multiply the product obtained in paragraph 2 of this subsection by the corresponding state support level for each route mile as provided in column 2 of this paragraph.

      Column 1                                  Column 2

Approved Daily Route                      State Support Level per

Mileage per Eligible                          Route Mile for

Student Transported                       Fiscal Year 2009‑2010 2010‑2011

0.5 or less                                     $2.32 $2.35

More than 0.5 through 1.0                       $1.89 $1.91

More than 1.0                                   $2.32 $2.35

6.  Add the amount spent during the prior fiscal year for bus tokens and bus passes for students who qualify as eligible students as defined in section 15‑901.

B.  The support level for academic education, career and technical education, vocational education and athletic trips for each school district for the current year is computed as follows:

1.  Determine the classification in column 1 of paragraph 2 of this subsection for the quotient determined in subsection A, paragraph 4 of this section.

2.  Multiply the product obtained in subsection A, paragraph 5 of this section by the corresponding state support level for academic education, career and technical education, vocational education and athletic trips as provided in column 2, 3 or 4 of this paragraph, whichever is appropriate for the type of district.

Column 1                       Column 2         Column 3         Column 4

Approved Daily Route

Mileage per Eligible        District Type   District Type    District Type

Student Transported            02 or 03            04               05     

0.5 or less                       0.15            0.10             0.25

More than 0.5 through 1.0         0.15            0.10             0.25 

More than 1.0                     0.18            0.12             0.30 

For the purposes of this paragraph, "district type 02" means a unified school district or an accommodation school that offers instruction in grades nine through twelve, "district type 03" means a common school district not within a high school district, "district type 04" means a common school district within a high school district or an accommodation school that does not offer instruction in grades nine through twelve and "district type 05" means a high school district.

C.  The support level for extended school year services for pupils with disabilities is computed as follows:

1.  Determine the sum of the following:

(a)  The total number of miles driven by all buses of a school district while transporting eligible pupils with disabilities on scheduled routes from their residence to the school of attendance and from the school of attendance to their residence on routes for extended school year services in accordance with section 15‑881.

(b)  The total number of miles driven on routes approved by the superintendent of public instruction for which a private party, a political subdivision or a common or a contract carrier is reimbursed for bringing an eligible pupil with a disability from the place of the pupil's residence to a school transportation pickup point or to the school facility of attendance and from the school transportation scheduled return point or from the school facility to the pupil's residence for extended school year services in accordance with section 15‑881.

2.  Multiply the sum determined in paragraph 1 of this subsection by the state support level for the district determined as provided in subsection A, paragraph 5 of this section.

D.  The transportation support level for each school district for the current year is the sum of the support level for to and from school as determined in subsection A of this section, the support level for academic education, career and technical education, vocational education and athletic trips as determined in subsection B of this section and the support level for extended school year services for pupils with disabilities as determined in subsection C of this section.

E.  The state support level for each approved route mile, as provided in subsection A, paragraph 5 of this section, shall be adjusted by the growth rate prescribed by law, subject to appropriation. END_STATUTE

Sec. 5.  Section 15-972, Arizona Revised Statutes, is amended to read:

START_STATUTE15-972.  State limitation on homeowner property taxes; additional state aid to school districts; definitions

A.  Notwithstanding section 15‑971, there shall be additional state aid for education computed for school districts as provided in subsection B of this section.

B.  The clerk of the board of supervisors shall compute such additional state aid for education as follows:

1.  For a high school district or for a common school district within a high school district which does not offer instruction in high school subjects as provided in section 15‑447:

(a)  Determine the qualifying tax rate for primary property taxes pursuant to section 41‑1276 for the school district which would be levied in lieu of the provisions of this section.

(b)  Determine the following percentage of the qualifying tax rate determined in subdivision (a) of this paragraph:

(i)  Thirty‑five per cent through December 31, 2005.

(ii)  Thirty‑six per cent beginning from and after December 31, 2005 through December 31, 2006.

(iii)  Thirty‑seven per cent beginning from and after December 31, 2006 through December 31, 2007.

(iv)  Thirty‑eight per cent beginning from and after December 31, 2007 through December 31, 2008.

(v)  Thirty‑nine per cent beginning from and after December 31, 2008 through December 31, 2009.

(vi)  Forty per cent beginning from and after December 31, 2009.

(c)  Select the lesser of the amount determined in subdivision (b) of this paragraph or forty per cent of the current qualifying primary property tax rate that would be levied in lieu of the provisions of this section for the district.

(d)  Multiply the rate selected in subdivision (c) of this paragraph as a rate per one hundred dollars assessed valuation by the assessed valuation used for primary property taxes of the residential property in the school district.

2.  For a unified school district, for a common school district not within a high school district or for a common school district which offers instruction in high school subjects as provided in section 15‑447:

(a)  Determine the qualifying tax rate for primary property taxes pursuant to section 41‑1276 for the school district which would be levied in lieu of the provisions of this section.

(b)  Determine the following percentage of the tax rate determined in subdivision (a) of this paragraph:

(i)  Thirty‑five per cent through December 31, 2005.

(ii)  Thirty‑six per cent beginning from and after December 31, 2005 through December 31, 2006.

(iii)  Thirty‑seven per cent beginning from and after December 31, 2006 through December 31, 2007.

(iv)  Thirty‑eight per cent beginning from and after December 31, 2007 through December 31, 2008.

(v)  Thirty‑nine per cent beginning from and after December 31, 2008 through December 31, 2009.

(vi)  Forty per cent beginning from and after December 31, 2009.

(c)  Select the lesser of the amount determined in subdivision (b) of this paragraph or forty per cent of the current qualifying primary property tax rate that would be levied in lieu of the provisions of this section for the district.

(d)  Multiply the rate selected in subdivision (c) of this paragraph as a rate per one hundred dollars assessed valuation by the assessed valuation used for primary property taxes of the residential property in the district.

C.  The clerk of the board of supervisors shall report to the department of revenue not later than the Friday following the third Monday in August of each year the amount by school district of additional state aid for education and the data used for computing the amount as provided in subsection B of this section.  The department of revenue shall verify all of the amounts and report to the county board of supervisors not later than August 30 of each year the property tax rate or rates which shall be used for property tax reduction as provided in subsection E of this section.

D.  The board of supervisors shall reduce the property tax rate or rates that would be levied in lieu of the provisions of this section by the school district or districts on the assessed valuation used for primary property taxes of the residential property in the school district or districts by the rate or rates selected in subsection B, paragraph 1, subdivision (c) and paragraph 2, subdivision (c) of this section.  The excess of the reduction in property taxes for a parcel of property resulting from the reduction in the property tax rate pursuant to this subsection over the amounts listed in this subsection shall be deducted from the amount of additional state aid for education.  The reduction in property taxes on a parcel of property resulting from the reduction in the property tax rate pursuant to this subsection shall not exceed the following amounts except as provided in subsection I of this section:

1.  Five hundred dollars through December 31, 2005.

2.  Five hundred twenty dollars beginning from and after December 31, 2005 through December 31, 2006.

3.  Five hundred forty dollars beginning from and after December 31, 2006 through December 31, 2007.

4.  Five hundred sixty dollars beginning from and after December 31, 2007 through December 31, 2008.

5.  Five hundred eighty dollars beginning from and after December 31, 2008 through December 31, 2009.

6.  Six hundred dollars beginning from and after December 31, 2009.

E.  Prior to the levying of taxes for school purposes the board of supervisors shall determine whether the total primary property taxes to be levied for all taxing jurisdictions on each parcel of residential property, in lieu of the provisions of this subsection, violate article IX, section 18, Constitution of Arizona.  For those properties that qualify for property tax exemptions pursuant to article IX, sections 2, 2.1 and 2.2, Constitution of Arizona, eligibility for the credit is determined on the basis of the limited property value that corresponds to the taxable assessed value after reduction for the applicable exemption.  If the board of supervisors determines that such a situation exists, the board shall apply a credit against the primary property taxes due from each such parcel in the amount in excess of article IX, section 18, Constitution of Arizona.  Such excess amounts shall also be additional state aid for education for the school district or districts in which such parcel of property is located.

F.  The clerk of the board of supervisors shall report to the department of revenue not later than September 5 of each year the amount by school district of additional state aid for education and the data used for computing the amount as provided in subsection B of this section.  The department of revenue shall verify all of the amounts and report to the board of supervisors not later than September 10 of each year the property tax rate which shall be used for property tax reduction as provided in subsection E of this section.

G.  The clerk of the board of supervisors shall report to the department of revenue not later than September 30 of each year in writing the following:

1.  The data processing specifications used in the calculations provided for in subsections B and E of this section.

2.  At a minimum, copies of two actual tax bills for residential property for each distinct tax area.

H.  The department of revenue shall report to the state board of education not later than October 12 of each year the amount by school district of additional state aid for education as provided in this section. The additional state aid for education provided in this section shall be apportioned as provided in section 15‑973.

I.  If a parcel of property is owned by a cooperative apartment corporation or is owned by the tenants of a cooperative apartment corporation as tenants in common, the reduction in the property taxes prescribed in subsection D of this section shall not exceed the amounts listed in subsection D of this section for each owner occupied housing unit on the property.  The assessed value used for determining the reduction in taxes for the property is equal to the total assessed value of the property times the ratio of the number of owner occupied housing units to the total number of housing units on the property.  For the purposes of this subsection, "cooperative apartment corporation" means a corporation:

1.  Having only one class of outstanding stock.

2.  All of the stockholders of which are entitled, solely by reason of their ownership of stock in the corporation, to occupy for dwelling purposes apartments in a building owned or leased by such corporation and who are not entitled, either conditionally or unconditionally, except upon a complete or partial liquidation of the corporation, to receive any distribution not out of earnings and profits of the corporation.

3.  Eighty per cent or more of the gross income of which is derived from tenant‑stockholders.  For the purposes of this paragraph, "gross income" means gross income as defined by the United States internal revenue code, as defined in section 43‑105.

J.  The total amount of state monies that may be spent in any fiscal year for state aid for education in this section shall not exceed the amount appropriated or authorized by section 35‑173 for that purpose.  This section shall not be construed to impose a duty on an officer, agent or employee of this state to discharge a responsibility or to create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose.

K.  For the purposes of this section:

1.  "Owner" includes any purchaser under a contract of sale or under a deed of trust.

2.  "Residential property" includes all owner occupied real property and improvements to the property and all owner occupied mobile homes that are used for residential purposes. END_STATUTE

Sec. 6.  Laws 2009, third special session, chapter 12, section 75 is amended to read:

Sec. 75.  School facilities board lease-to-own

Notwithstanding section 15-2004, subsection M, Arizona Revised Statutes, section 15-2005, subsection M, Arizona Revised Statutes, and section 15-2006, Arizona Revised Statutes, the school facilities board shall enter into lease-to-own transactions for up to a maximum of $100,000,000 by December 31, 2010 June 30, 2011.  The lease-to-own transactions shall be qualified school construction bonds as authorized under the American reinvestment and recovery and reinvestment act of 2009, and or build America bonds as authorized by the American recovery and reinvestment act of 2009 or in subsequent federal law.  These transactions shall only be used for new construction projects.  Priority for the bond proceeds shall first be given to school districts whose actual fiscal year 2009‑2010 average daily membership or projected fiscal year 2009-2010 2010‑2011 average daily membership exceeds their districtwide capacity for new school construction.

Sec. 7.  Additional assistance funding for charter schools; reduction for fiscal year 2010-2011

In addition to any other reductions made in fiscal year 2010‑2011, for fiscal year 2010-2011, the department of education shall reduce by the amount identified in the general appropriations act the amount of additional assistance funding that otherwise would be apportioned to charter schools statewide for fiscal year 2010-2011 pursuant to section 15-185, subsection B, paragraph 4, Arizona Revised Statutes, as amended by this act.  The funding reduction required under this section shall be made on a proportional basis based on the additional assistance funding that each charter school in the state would have received for fiscal year 2010-2011 without the prescribed reduction.

Sec. 8.  Joint technological education district equalization funding; pro rata reduction

A.  Notwithstanding section 15-393, Arizona Revised Statutes, or any other law, the department of education shall fund state aid for joint technological education districts for fiscal year 2010‑2011 at ninety-one per cent of the amount that otherwise would be provided by law.

B.  Notwithstanding subsection A of this section, a joint technological education district shall not receive less equalization formula funding for fiscal year 2010-2011 than it received for fiscal year 2009-2010 except for reductions due to changes in student counts, net assessed property values or other technical factors or due to prior year adjustments or corrections.  For the purposes of this subsection, "equalization formula funding" means the sum of a joint technological education district's base support level, as prescribed in section 15-943.02, Arizona Revised Statutes, and its capital outlay revenue limit and soft capital allocation, as prescribed in section 15‑962.01, Arizona Revised Statutes.

Sec. 9.  Soft capital reduction for school districts for fiscal year 2010-2011

If proposition 100 is approved by the voters at the May 18, 2010 special election, the department of education shall implement the following:

1.  For fiscal year 2010-2011, the department of education shall reduce by $165,120,700 the amount of basic state aid that otherwise would be apportioned to school districts statewide for fiscal year 2010-2011 for the soft capital allocation prescribed in section 15-962, Arizona Revised Statutes, and shall reduce school district budget limits accordingly.

2.  For fiscal year 2010-2011, the department of education shall reduce the soft capital allocation for a school district that is not eligible to receive basic state aid funding for fiscal year 2010-2011 by the amount that its soft capital allocation would be reduced pursuant to paragraph 1 of this section if the district was eligible to receive basic state aid funding for fiscal year 2010-2011 and shall reduce the school district's budget limits accordingly.

3.  To the extent possible, the soft capital reductions required by this section shall be taken against administrative costs, rather than classroom instruction.

4.  Notwithstanding paragraphs 1 and 2 of this section, the department of education shall reduce by fifty per cent the soft capital reduction that would otherwise be calculated pursuant to this section for kindergarten programs and grades one through eight for a school district that has a student count of fewer than six hundred in kindergarten programs and grades one through eight.

5.  Notwithstanding paragraphs 1 and 2 of this section, the department of education shall reduce by fifty per cent the soft capital reduction that would otherwise be calculated pursuant to this section for grades nine through twelve for a school district that has a student count of fewer than six hundred in grades nine through twelve.

Sec. 10.  Soft capital allocation; suspension; contingency

If proposition 100 is not approved by the voters at the May 18, 2010 special election, notwithstanding section 15-962, Arizona Revised Statutes, or any other law, the soft capital allocation specified in section 15-962, Arizona Revised Statutes, is suspended for fiscal year 2010-2011.

Sec. 11.  Career ladder programs; maximum base level increase for fiscal year 2010‑2011

A.  Notwithstanding section 15-918.04, Arizona Revised Statutes, for fiscal year 2010-2011 the maximum base level increase that is permitted for a school district that participates in the career ladder program shall be five per cent.

B.  For fiscal year 2010-2011, the career ladder program is limited only to teachers who participated in the program in the prior fiscal year.

Sec. 12.  Early graduation scholarship program; funding suspension; temporary moratorium on new program participants

A.  Notwithstanding section 15‑105, subsection E, Arizona Revised Statutes, the student count and per pupil funding of a school district or charter school for fiscal year 2010‑2011 shall not be adjusted to reflect requirements under that subsection.

B.  Notwithstanding section 15‑105, subsection F, Arizona Revised Statutes, for fiscal year 2010‑2011 the department of education shall not transmit any monies to the commission for postsecondary education for the early graduation scholarship program.

C.  Notwithstanding section 15‑105, Arizona Revised Statutes, students who were not admitted before July 1, 2009 to participate in the early graduation scholarship program shall not be admitted to participate in the early graduation scholarship program during fiscal year 2010‑2011.

D.  If sufficient monies are available in the early graduation scholarship fund established by section 15‑105, Arizona Revised Statutes, students who were admitted before July 1, 2009 to participate in the early graduation scholarship program shall continue to receive funding to participate in the program in fiscal year 2010‑2011.

Sec. 13.  School district budgets; actual utility costs and funding plan; fiscal year 2010‑2011

A.  Notwithstanding section 15‑910.04, Arizona Revised Statutes, a school district is not permitted to adjust its revenue control limit in fiscal year 2010‑2011 for actual utility costs.

B.  Notwithstanding section 15‑910.03, Arizona Revised Statutes, a school district is not required to submit a funding plan pursuant to that section in fiscal year 2010‑2011.

Sec. 14.  Soft capital expenditures for fiscal year 2010‑2011

Notwithstanding section 15‑962, Arizona Revised Statutes, for fiscal year 2010‑2011, a school district may use its soft capital allocation for any operating or capital expenditures.

Sec. 15.  Annual performance audit; AIMS intervention and dropout prevention program; suspension in fiscal year 2010‑2011

Notwithstanding section 15-809, subsection C, Arizona Revised Statutes, the department of education is not required to contract with a private entity to conduct an annual performance audit of the AIMS intervention and dropout prevention program for fiscal year 2010-2011.

Sec. 16.  Full-day kindergarten instruction in fiscal year 2010‑2011; tuition

Notwithstanding any other law, a school district or charter school may charge tuition for full‑day kindergarten in fiscal year 2010‑2011 if the school district or charter school decides not to provide free full‑day kindergarten instruction during fiscal year 2010‑2011.

Sec. 17.  School facilities board; new construction moratorium

A.  Notwithstanding sections 15-2011 and 15-2041, Arizona Revised Statutes, for fiscal year 2010-2011, the school facilities board shall not authorize or award funding for the design or construction of any new school facility and shall not authorize or award funding for school site acquisitions.

B.  During fiscal year 2010-2011, school districts shall submit capital plans according to section 15-2041, subsection C, Arizona Revised Statutes. The school facilities board may review and award new school facilities as outlined in section 15-2041, Arizona Revised Statutes, subject to future appropriations.

C.  This section does not apply to lease-to-own transactions entered into by the school facilities board pursuant to Laws 2009, third special session, chapter 12, section 75, as amended by this act.

D.  This section does not prevent the school facilities board from distributing monies for construction projects that began construction before fiscal year 2008-2009.

Sec. 18.  Building renewal fund; suspension in fiscal year 2010‑2011

Notwithstanding section 15‑2031, Arizona Revised Statutes, the school facilities board shall not distribute monies from the building renewal fund in fiscal year 2010‑2011.

Sec. 19.  Capital outlay revenue limit; suspension; contingency

If proposition 100 is not approved by the voters at the May 18, 2010 special election, notwithstanding section 15-961, Arizona Revised Statutes, or any other law, the capital outlay revenue limit specified in section 15‑961, Arizona Revised Statutes, is suspended for fiscal year 2010-2011.

Sec. 20.  School facilities board; refinancing or refunding agreement

A.  Notwithstanding section 15‑2004, subsection M, Arizona Revised Statutes, section 15‑2005, subsection M, Arizona Revised Statutes, and section 15‑2006, Arizona Revised Statutes, the school facilities board shall enter into a refinancing or refunding agreement that reduces the school facilities board's fiscal year 2010‑2011 lease‑purchase payments by a total of up to $60,000,000.  The refinancing or refunding agreement shall not decrease the total amount of the school facilities board's lease‑purchase payments in any other fiscal year.

B.  Before entering into a refinancing or refunding agreement pursuant to subsection A of this section, the agreement's proposed terms shall be submitted for review by the joint committee on capital review.

Sec. 21.  Basic state aid and base support level for school districts; reductions for fiscal year 2010-2011; contingency

If proposition 100 is not approved by voters at the May 18, 2010 special election, notwithstanding section 15-943, Arizona Revised Statutes, as amended by this act, or any other law, for fiscal year 2010-2011, the department of education shall reduce by $102,723,300 the amount of base support level funding that otherwise would be apportioned to school districts statewide for fiscal year 2010-2011 and shall reduce school district budget limits accordingly.  The funding reductions required under this section shall be made on a proportional basis based on the base support level of each school district for fiscal year 2010-2011, as prescribed in section 15-943, Arizona Revised Statutes, as amended by this act, relative to the base support level for school districts for the state as a whole for fiscal year 2010-2011.

Sec. 22.  Effective date

Section 15‑972, Arizona Revised Statutes, as amended by this act, is effective from and after June 30, 2011.