SB 1689
Initials CH Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
Senate: ED DP 6-0-1-0 | 3rd Read 25-3-2-0
House: ED DPA 12-0-0-0
SB 1689: school districts; overexpenditures; ADE; notice
Sponsor: Senator Farnsworth, LD 10
Caucus & COW
Overview
Directs the Arizona Department of Education (ADE) to notify the county school
superintendent and take any actions required by statute if ADE determines, without prior
notification from the county school superintendent, that a school district committed an
overexpenditure.
History
Statute requires the county school superintendent, within two business days, to provide
written notice to ADE if the county school superintendent determines a school district has
committed an overexpenditure. The county school superintendent may not draw a warrant
for an expenditure that exceeds the amount budgeted and that has not been previously
expended unless ADE provides written notification to the county school superintendent that
budget capacity exists. ADE, in conjunction with the county school superintendent, must
monitor and provide technical assistance to the school district to resolve the overexpenditure.
If ADE determines that either the school district has failed to take appropriate action to
resolve the overexpenditure or that the overexpenditure will cause the school district's overall
expenditures to exceed its general budget limit or unrestricted capital budget limit by
$50,000 or 0.5%, ADE must request that the matter be placed on a State Board of Education
(SBE) meeting agenda. After request from ADE, SBE is required to call a public meeting to
consider the school district's overexpenditures and take one of the following actions: 1)
require ADE, in conjunction with the county school superintendent, to monitor the school
district's expenditures; 2) direct ADE to contract with a level one or level two fiscal crisis
team; or 3) appoint a receiver.
An overexpenditure is an expenditure that exceeds: 1) the lesser of the school district's general
budget limit or budgeted amount; or 2) the lesser of the school district's unrestricted capital
budget limit or budgeted capital amount (A.R.S. § 15-107).
Provisions
1. Instructs ADE, without prior notification from a county school superintendent and if ADE
determines that a school district committed an overexpenditure, to notify the county
school superintendent and take any actions as prescribed in statute. (Sec. 1)
2. Makes technical and conforming changes. (Sec. 1, 2)
Amendments
Committee on Education
1. Authorizes a county school superintendent to review the operations and finances,
including expenditures, of any school district located in the county.
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note