HB 2906
Initials CH Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
House: APPROP DP 9-7-1-0
HB 2906: K-12 education; 2024-2025
Sponsor: Representative Livingston (with permission of Committee on
Rules), LD 28
House Engrossed
Overview
Contains provisions relating to K-12 education needed to implement the FY 2025 budget.
History
The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general
appropriations. Article IV, Section 20, Part 2 of the Constitution of Arizona requires the
General Appropriations Act (feed bill) to contain only appropriations for the different state
departments, state institutions, public schools and interest on public debt. Statutory changes
necessary to reconcile the appropriations made in the feed bill and other changes are drafted
into separate budget bills. These bills are prepared according to subject area.
Provisions
School Finance Formula (Permanent Law)
1. Increases the base level for FY 2025 from $4,914.71 to $5,013.00. (Sec. 10)
2. Raises the FY 2025 state support level per route mile from:
a) $2.89 to $2.95 for 0.5 or less approved daily route mileage;
b) $2.37 to $2.42 for more than 0.5 through 1.0 approved daily route mileage; and
c) $2.89 to $2.95 for more than 1.0 daily approved route mileage. (Sec. 11)
3. Increases charter additional assistance from:
a) $2,049.12 to $2,090.10 per student count in preschool programs for children with
disabilities, kindergarten and the 1st-8th grades; and
b) $2,388.21 to $2,435.97 per student count in the 9th-12th grades. (Sec. 1)
4. Adjusts TY 2024 qualifying tax rates in accordance with statutory truth-in-taxation
requirements. (Sec. 16)
Arizona Empowerment Scholarship Account (ESA) Program (Permanent Law)
5. Modifies permissible ESA expenses by stipulating ESA monies may be used for:
a) tuition or fees only at a qualified school that requires all teaching staff and personnel
who have unsupervised contact with students to be fingerprinted; or
b) tutoring or teaching services if the individual who provides these services is not
subject to disciplinary action by the State Board of Education (SBE) for immoral or
unprofessional conduct. (Sec. 13)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2906
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6. Requires the Arizona Department of Education (ADE) to:
a) ensure any individual who provides tutoring or teaching services to qualified students
is not subject to disciplinary action by SBE; and
b) remove any individual who is subject to disciplinary action by SBE from all platforms
ADE provides to parents and qualified students for the purchase of goods or
educational services using ESA monies. (Sec. 13)
7. Instructs ADE to verify that a parent's child is a qualified student in the year the parent
seeks to renew the ESA, though ADE is not required to annually verify the child's
disability, if applicable. (Sec. 13)
8. Directs ADE, in consultation with the Auditor General, to develop risk-based auditing
procedures for the statutorily required annual audits of ESAs. (Sec. 14)
9. Mandates ADE annually review a random sample of ESAs to determine whether the
parent or qualified student is in compliance with the ESA contract, applicable laws, rules
and orders relating to the ESA Program. (Sec. 14)
10. States the ESA of a parent or qualified student who is in good standing may be randomly
selected for review only once during any five-year period. (Sec. 14)
11. Allows ADE, if an eligible applicant completes an application in advance for an ESA to be
funded beginning on a later date, to enroll the applicant on the later date, except the
applicant cannot be enrolled:
a) more than two fiscal quarters after the fiscal quarter in which the application is
completed; or
b) on a date that is after March 31 and before July 1. (Sec. 14)
12. Stipulates ADE must enroll an applicant on or after July 1 if the applicant completes an
application after March 31 and before July 1. (Sec. 14)
13. Directs ADE to enroll all other applicants when ADE issues an award letter. (Sec. 14)
14. Prohibits a qualified student from receiving ESA monies while enrolled in a school district
or charter school. (Sec. 14)
15. Modifies the requirement for ADE to provide the estimated amount required to fund ESAs
for the following fiscal year by directing ADE to provide the amount:
a) by September 1 and November 1, rather than by May 30; and
b) to the Governor's Office of Strategic Planning and Budgeting. (Sec. 14)
16. Requires ADE to maintain an online database of allowable and disallowed expense
categories and provide a link to the database on its website. (Sec. 14)
17. Mandates ADE allow ESA monies to be used to reimburse the parent of a qu alified
student or qualified student for the purchase of a good or educational service that is an
allowable expense. (Sec. 14)
Adult Education
18. As permanent law, repeals, on July 1, 2025, the
a) Continuing High School and Workforce Training Program;
b) Adult Workforce Diploma Program and Adult Workforce Diploma Program Fund;
c) Community College Adult Education Workforce Diploma Program (Community
College Program) and Community College Program Fund; and HB 2906
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d) directive for SBE and ADE to adopt performance measures to evaluate these adult
education and workforce programs. (Sec. 2, 4)
19. As permanent law, expands the study and support services the Community College
Program provides by adding:
a) academic instruction aligned with adult education and literacy activities as defined in
the federal Workforce Innovation and Opportunity Act (WIOA); and
b) community college certificates. (Sec. 3)
20. As permanent law, allows a Community College Program school to receive Community
College Program Fund monies for each adult learner who:
a) enrolls in a community college adult education program;
b) participates in integrated education and training as defined in the federal WIOA; and
c) pursues academic skills development related to adult education and literacy activities
as defined in WIOA. (Sec. 3)
21. As permanent law, includes, in the data a Community College Program school must
report, the number and type of community college certificates earned by adult learners.
(Sec. 3)
22. As session law, reduces the maximum projected full-time enrollment cap for Continuing
High School and Workforce Training Program schools in FY 2025 from 800 to 520. (Sec.
19)
Kindergarten Entry Evaluation (KEA) Tool
23. Eliminates the requirement for SBE, if sufficient monies are appropriated, to adopt a
KEA tool that school districts and charter schools may administer to kindergarten
students. (Sec. 8)
24. Removes the specifications that each school district governing board and charter school
governing body must:
a) select evaluation methods or assessments, or both, to administer to kindergarten
students for the purposes of the KEA tool; and
b) administer the selected KEA tool within 45 days after the beginning of the school year
or after a student enrolls. (Sec. 8)
Arizona State Schools for the Deaf and the Blind (ASDB)
25. As permanent law, removes ASDB from the state agencies that are excluded from
participation in the state motor vehicle fleet. (Sec. 15)
26. As session law for FY 2025, allows ASDB to use monies appropriated from the
Telecommunication Fund for the Deaf for educational and operational costs. (Sec. 22)
Program and Fund Repeals
27. As session law, amends the Arizona Civics Education and Leadership Development
Program (Civics Program) by:
a) removing the limitation that ADE administer the Civics Program in only FY 2024;
b) repealing the Civics Program and Civics Program Fund on July 1, 2025; and
c) transferring any unexpended and unencumbered monies from the Civics Program
Fund to the state General Fund (GF). (Sec. 17)
28. As session law, amends the requirements for early education and career action plans
(career plans) and the Early Education and Career Exploration Program (Career
Program) by: HB 2906
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a) removing the limitation that:
i. SBE require public schools to complete career plans for each high school student
only in FY 2024;
ii. ADE administer the Career Program only in FY 2024; and
iii. ADE contract with a nonprofit entity to provide a career mapping tool and
specified training and resources only in FY 2024;
b) repealing the outlined career plans requirements, Career Program and Career
Program Fund on July 1, 2025; and
c) transferring any unexpended and unencumbered monies from the Career Program
Fund to the state GF. (Sec. 18)
29. As session law, repeals the Dual Enrollment Teacher Development Fund and the Dual
Enrollment Student Development Fund. (Sec. 20)
Miscellaneous
30. As permanent law, sets March 15 as the earliest date a school district governing board
may offer a teaching contract for the next school year to a probationary or continuing
teacher. (Sec. 6, 7)
31. As permanent law, allows a career technical education district to build, maintain and
provide housing facilities and support services for students who are in foster care or who
meet the federal definition of unaccompanied youth. (Sec. 5)
32. As permanent law, modifies the permissible uses of a school district's Litigation Recovery
Fund by allowing a school district to:
a) use monies received for purposes other than for replacing or repairing school property
for remedial measures reasonably related to a legal controversy or litigation by or
against the school district; and
b) use, after all other authorized expenditures, remaining monies in the Litigation
Recovery Fund for maintenance and operation or unrestricted capital outlay. (Sec. 12)
33. As session law in FY 2025, continues to authorize ADE to use Failing Schools Tutoring
Fund monies for:
a) providing assistance to school districts and charter schools for professional
development and coaching for teachers and principals;
b) monitoring the progress of school districts and charter schools towards improved
academic outcomes; and
c) outreach to ensure that schools and parents have access to tutoring opportunities.
(Sec. 21)
34. As session law, requires ADE, by September 1, 2024, to report proposed FY 2025 Failing
schools Tutoring Fund expenditures for the outlined purposes to specified legislative and
executive branch individuals. (Sec. 21)
35. As session law, continues to contain a legislative intent clause relating to classroom
spending. (Sec. 23)
36. Makes technical changes. (Sec. 3, 5, 6, 7, 9, 13, 14)
37. Makes conforming changes. (Sec. 3, 9, 10, 13, 14, 15)