HCR 2048
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
HCR2048: schools; teacher salary increases; reporting.
Sponsor: Representative Smith, LD 29
Committee on Appropriations
Overview
Requires each school district and charter school to revise its salary schedules to increase the
base salary of all eligible teachers above the FY 2025 base salary, subject to voter approval
and if the voters approve the increase to the Permanent State School Fund's annual
distribution rate. Creates the Teacher Pay Fund (Fund) and details calculation, compliance
and reporting requirements.
History
The Arizona State Land Department (ASLD) manages approximately 9.2 million acres of
state trust lands for 13 beneficiaries designated by the Enabling Act (ASLD). A permanent
fund is established for each of the 13 beneficiaries, each of which consists of permanent and
expendable receipts (JLBC). The largest beneficiary of state land trust monies is common (K-
12) schools, with distributions made to the Permanent State School Fund (Ariz. Const. art.
10, sec. 7). Proposition 123 increases, for FYs 2016-2025, the annual distribution rate of the
permanent funds from 2.5% to 6.9% of the preceding five-year average monthly market
values. Beginning in FY 2026, each permanent fund's annual distribution rate returns to
2.5%.
A school district governing board (governing board) is authorized to fix the salaries and
benefits of employees for the next year. A governing board may also reduce salaries or
eliminate certificated teachers to effectuate economies in the operation of the school district
or to improve the efficient conduct and administration of its schools. A notice of general salary
reduction must be given to each affected certificated teacher (A.R.S. §§ 15-502, 15-544).
Each governing board and charter school governing body (governing body) must establish a
system to evaluate the performance of teachers that results in at least one evaluation each
school year. This system must include four performance classifications, with teachers being
designated as: 1) highly effective; 2) effective; 3) developing; and 4) ineffective (A.R.S. §§ 15-
189.06, 15-537).
Provisions
Base Salary of Eligible Teachers
1. Mandates each school district and charter school, if the voters approve the increase to the
Permanent State School Fund's distribution rate, revise its salary schedules to increase
the base salary of all eligible teachers who are or will be employed. (Sec. 3)
2. Prohibits a school district or charter school, if the salary increases are required, from
reducing the base salary of eligible teachers below the FY 2025 base salary schedule
reported to the Arizona Department of Education (ADE). (Sec. 3)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HCR 2048
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3. Defines eligible teacher as a person who is employed by a charter school or school district
and who either:
a) meets both of the following:
i. is employed for a full school day or full class load, or the equivalents, as determined
by ADE; and
ii. devotes more than 75% of their work time to nonadministrative activities that
provide student instruction; or
b) meets both of the following:
i. is employed as a special education teacher for a full school day or full class load,
or the equivalents, as determined by ADE; and
ii. devotes more than 50% of their work time to support student academic
achievement as prescribed by the governing board or governing body. (Sec. 3)
4. Includes, in eligible teacher, current teachers and teachers who begin work for the school
district or charter school after the effective date. (Sec. 3)
5. Excludes, from eligible teacher, an administrator or a person designated in either of the
two lowest performance classifications after a teacher performance evaluation. (Sec. 3)
6. States a school district's or charter school's authority to adjust an individual teacher's
salary in a manner consistent with the applicable base salary schedule is not restricted.
(Sec. 3)
Fund
7. Establishes the Fund consisting of legislative appropriations and Permanent State School
Fund distributions. (Sec. 3)
8. Tasks ADE with administering the Fund and establishing procedures for determining
eligibility for Fund monies. (Sec. 3)
9. States that Fund monies are:
a) continuously appropriated;
b) exempt from lapsing;
c) in addition to any other monies the school district or charter school receives and may
not supplant, replace or cause a reduction in other funding sources; and
d) exempt from the revenue control limit. (Sec. 3)
10. Stipulates the required eligible teacher base salary increases must be:
a) the State Treasurer's estimate of the Permanent State School Fund distributions that
are deposited in the Fund for the budget year; and
b) the same amount for each eligible teacher, regardless of experience level. (Sec. 3)
11. Directs ADE, if salary increases are required, to allocate Fund monies to eligible school
districts and charter schools in an amount equal to the per teacher amount determined
by Joint Legislative Budget Committee (JLBC) Staff, multiplied by the number of eligible
teachers employed by the school district or charter school. (Sec. 3)
12. Requires the following to occur by March 30 annually:
a) the State Treasurer must provide, to JLBC Staff, an estimate of the amount of
Permanent State School Fund distributions that will be deposited in the Fund for the
budget year; and HCR 2048
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b) JLBC Staff must determine a per teacher amount from the Fund for the budget year
using the reported statewide number of eligible teachers and based on the State
Treasurer's estimate. (Sec. 3)
13. Stipulates ADE must allocate monies appropriated by the Legislature to the Fund for
other salary increases according to the terms of the appropriation. (Sec. 3)
Fund Reporting and Compliance
14. Instructs a school district or charter school that receives Fund monies to submit, by
November 15 annually and to the Superintendent of Public Instruction, a report that
provides an accounting of the expenditures of Fund monies from the previous fiscal year.
(Sec. 3)
15. Tasks ADE and the Auditor General (OAG) with prescribing the format of the school
district and charter school Fund expenditures report. (Sec. 3)
16. Requires ADE, on report from the OAG, to determine whether school districts and charter
schools are complying with the prescribed Fund and salary requirements. (Sec. 3)
17. Declares a school district or charter school that is determined to not be in compliance, or
that has failed to correct a deficiency within 90 days of notice from the OAG, is ineligible
to receive Fund monies from the date of the determination until the OAG reports that the
school district or charter school is in compliance. (Sec. 3)
Miscellaneous
18. Includes, in a school district's budget format, a statement identifying the number of
eligible teachers who are employed for the current year. (Sec. 4)
19. Adds that a charter school's budget must contain:
a) the salary schedule for eligible teachers who are employed for the current year; and
b) a statement identifying the number of eligible teachers who are employed for the
current year. (Sec. 2)
20. Directs the Secretary of State to submit this proposition to the voters at the next general
election. (Sec. 5)
21. Makes conforming changes. (Sec. 4)