Assigned to ED FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1091
school districts; bonds; overrides; ballots
Purpose
Prescribes required ballot language for elections related to a school district budget override
continuation or a school district's authority to continue issuing and selling bonds that states the
estimated average secondary property tax reduction if voters reject the override or bond proposal.
Background
If a school district's proposed budget exceeds the statutory aggregate budget limit for the
year, the school district governing board (governing board) must order an override election to be
held at least 90 days before the election. An override election may be held to exceed the revenue
control limit or district additional assistance and may be funded by assessing secondary property
taxes or from revenues other than a property tax levy. If the proposed budget override will be fully
funded by a secondary property tax levy, the override election ballot must contain the amount of
the proposed budget increase over the alternate budget and a statement that contains outlined
information, including: 1) the number of years for which the tax levy would apply; 2) the estimated,
required tax rate to fund the proposed budget override, based on the current net assessed valuation
used for secondary property tax purposes; and 3) that the estimated tax rate is in addition to the
school district's primary property tax rate that will be levied to fund the school district's district
additional assistance or revenue control limit allowed by law (A.R.S. § 15-481).
A school district that previously operated under a small school adjustment may adopt a
budget that exceeds the aggregate budget limit as outlined, subject to an override election. If the
proposed budget override will be fully funded by a secondary property tax levy, the override
election ballot must contain the amount of the proposed budget override compared to the amount
the school district budgeted in the preceding year, the estimated amount of the override for each
year the override is sought and a statement that contains outlined information, including: 1) the
number of years for which the tax levy would apply; 2) the estimated, required tax rate to fund the
proposed budget increase, based on the current net assessed valuation used for secondary property
tax purposes; and 3) that the tax levy would be annually adjusted based on a formula that authorizes
the school district to exceed the revenue control limit by up to 35 percent for kindergarten programs
and grades 1 through 8 or up to 65 percent for grades 9 through 12 (A.R.S. § 15-949).
A governing board may, and on petition of 15 percent of the school district electors must,
hold an election to decide whether school district bonds will be sold to raise monies for specified
purposes in the number and amount provided and payable from the school district's debt service
fund. Monies to redeem bonds and pay interest are raised by assessing secondary property taxes
in the school district. A ballot for an election to decide whether a district may issue bonds must
contain outlined information, including the total amount of monies that will be raised by issuing
the bonds (A.R.S. § 15-491).
There is no anticipated fiscal impact to the state General Fund associated with this legislation. FACT SHEET
S.B. 1091
Page 2
Provisions
1. Requires, if a school district holds an election to propose a budget override continuation and
the override will be funded by a continuation of a secondary property tax levy, the ballot to
include a statement that contains:
a) the estimated average secondary property tax reduction without the budget override
authorization; and
b) the date on which the reduction would begin.
2. Requires, if a school district that previously operated under a small school adjustment holds a
budget override continuation election and the override will be funded by a continuation of a
secondary property tax levy, the ballot to include a statement that contains:
a) the estimated average secondary property tax reduction without the budget override
authorization; and
b) the date on which the reduction would begin.
3. Requires, if a school district holds an election to determine whether to continue the school
district's authority to issue and sell bonds at the same rate in subsequent years and the bonds
will be funded by a secondary property tax levy, the ballot to include a statement that contains:
a) the estimated average secondary property tax reduction without the bond authorization;
and
b) the date on which the reduction would begin.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date.
Prepared by Senate Research
January 27, 2025
MH/SDR/ci