HB 2919
Initials JB Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
House: APPROP DPA 11-6-0-1
HB 2919: state budget; structural balance; estimates
Sponsor: Representative Olson, LD 10
House Engrossed
Overview
Requires the General Appropriation Act to be balanced for each fiscal year (FY). Prohibits
the deferral of the basic state aid and additional state aid payments to school districts (K-12
rollover).
History
The Arizona Legislature adopts a budget for each FY that contains general appropriations.
Article IV, Section 20, Part 2 of the Arizona Constitution requires the General Appropriation
Act to contain only appropriations for the different state departments, state institutions,
public schools and interest on public debt.
The General Appropriation Act must include a provision that outlines the revenue and
expenditure estimates for the following three years. The expenditure estimates must be
based on existing statutory funding requirements (A.R.S. § 35-125).
The format of the appropriations for the support and maintenance of state departments and
institutions must be for each FY for all budget units (A.R.S. § 35-121).
For the ongoing K-12 rollover, the FY 2025 General Appropriation Act advance appropriates
$800,727,700 from the State General Fund (GF) in FY 2026 to fund the $800,727,700 deferred
obligation from FY 2025. The funding deferral does not apply to charter schools or to school
districts with a student count of less than 4,000.
Provisions
1. Requires the General Appropriation Act and its expenditure estimates to be balanced for
each FY. (Sec. 2)
2. Specifies that the General Appropriation Act and its expenditure estimates are balanced
if the unreserved State GF beginning balance, together with the GF revenue estimate for
that FY, is greater than or equal to that FY's GF expenditure estimate. (Sec. 2)
3. Requires the expenditure estimates to recognize any spending authorized in the budget
year that was also approved in the prior FY as ongoing spending to calculate the
structural balance of the FY. (Sec. 2)
4. Requires, for each FY, the format of the appropriations for the support and maintenance
of the Arizona Department of Education and the Superintendent of Public Instruction to
recognize the basic state aid and additional state aid entitlement paid to school districts
in the same FY as the FY that the school district's budget capacity recognizes the state
aid. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2919
Initials JB Page 2 House Engrossed
5. Lowers the K-12 rollover payment owed to each school district in FY 2026 by the school
district's total ending cash balances as of June 30, 2024, from the school district's
maintenance and operations fund or unrestricted capital outlay fund as reported in the
school district's FY 2024 annual financial report that was not included in the school
district's FY 2025 adopted budget. (Sec. 3)
6. Allows the Governing Board of a school district to use any portion of the school district's
total ending cash balances as of June 30, 2024, from the school district's maintenance and
operations fund or unrestricted capital outlay fund as reported in the school district's FY
2024 annual financial report that was not included in the school district's FY 2025
adopted budget to replace any revenue from the reduced K-12 rollover payment. (Sec. 3)