SB 1689
Initials CH Page 1 House Engrossed
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
House Engrossed
Overview
Authorizes the Arizona Department of Education (ADE), without prior notification from a
county school superintendent, to take any actions required by statute if ADE determines that
a school district exceeded its budget limit. Allows a county school superintendent to review
the operations and finances of any school district in the county.
History
Statute requires the county school superintendent, within two business days, to provide
written notice to ADE if the county school superintendent determines that a school district
has committed an overexpenditure. 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 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).
ADE must also notify SBE if a school district's expenditures exceed its general budget limit,
unrestricted capital budget limit, school plant fund limits, the maintenance and operation
budget or capital outlay budget. Statute details the penalties for a school district found to
have violated these limits or budgets by SBE (A.R.S. § 15-905).
Provisions
1. Instructs ADE, without prior notification from a county school superintendent and if ADE
determines that a school district's expenditures exceed the school district's general budget
limit or unrestricted capital budget limit, to notify the county school superintendent and
take any actions as prescribed in statute. (Sec. 1)
2. Authorizes a county school superintendent to review the operations and finances,
including expenditures, of any school district located in the county. (Sec. 2)
3. Makes technical and conforming changes. (Sec. 1, 2)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note