Bill
SB 1841
SB 1841 refines Arizona school funding and oversight, adjusting charter funding, ADM rules, transportation support, and adds a state property proceeds fund with enhanced transparen
SB 1841 (57th Legislature, 2nd Regular Session, Arizona) – K-12 Education
Overview
SB 1841 is a comprehensive education funding and governance bill that amends multiple sections of the Arizona Revised Statutes related to charter schools, school funding formulas, transportation, school property disposition, truth in taxation, and related administrative provisions. The bill aims to refine funding calculations, enhance oversight, and authorize new uses of certain funds, with implications for districts, charter schools, and state schools for the deaf and blind.
Key Provisions and Changes
1) Charter School Financing and Oversight (Section 15-185; related sections)
- Clarifies financial responsibility for charter schools sponsored by various state entities (e.g., state board of education, state board for charter schools, universities, community college districts).
- Modifies base and equalization funding for sponsor-based charter schools. Key elements include:
- Base support level calculations per student, with specific adjustments:
- Small school weight adjustments subject to conditions (e.g., management contracts, overlapping ownership, multiple charters).
- Transitional adjustments for 2015-2016 and 2016-2017 (temporary reduction of the small school weight).
- Initial estimated student counts with subsequent revisions to actual average daily membership (ADM) after specified days in session, with deadlines (May 15) for budget and count adjustments.
- Charter additional assistance set amounts: about $2,131.90 per student (preschool-kindergarten-8) and $2,484.69 per student (9-12), with updated figures in the document (slightly adjusted amounts shown in redlines).
- Rules on tuition, resident status, and apportionment to charter schools.
- Provisions for withholding state aid for noncompliance with federal/state law or charter terms (up to 10% per event), with due-process steps and corrective action plans.
- Prohibitions against double taxation (charter schools can accept grants/gifts, but payments to support basic operations come from public funding).
- Special guidance on apportionment when pupils attend both charter and traditional public schools.
- Withholding and penalties tied to fingerprinting requirements; civil penalties transfer to the state general fund if unpaid.
2) Definitions and ADM/Enrollment (Section 15-901)
- Updates to definitions of average daily membership, full-time/part-time students, and related terms to reflect refined counting, concurrent enrollment, and homebound/hospitalized scenarios.
- Provides detailed rules for calculating ADM across preschool, K-3, and high school cohorts, including special rules for repeat-kindergarten, concurrent enrollment, and absence/withdrawal timing.
- Clarifies rules around attendance calculations for part-time students and different school-year structures (e.g., year-round calendars).
3) Transportation Funding (Section 15-945)
- Sets methodology for transportation support levels ("per route mile" funding) for current year, including:
- Calculation steps using prior-year route mileage, number of eligible transported students, and categorization by district type.
- Distinct columns for different district types and corresponding per-route-mile funding levels, with updates for 2025-2026 to 2026-2027.
- Separate calculation sections for transportation, academic/career/CTE, and extended school year services for students with disabilities, including adjustments to growth rates and odometer reporting.
4) State School Property Proceeds Fund (Section 15-1307)
- Establishes a Property Proceeds Fund for proceeds from the sale or lease of school buildings/grounds for the Arizona State Schools for the Deaf and Blind.
- Requires independent appraisals, review by the Joint Committee on Capital Review, and a public sale process with protection against underselling below appraised value.
- Specifies that non-school-event facility fees do not count as property proceeds for this fund.
5) Truth in Taxation (Section 41-1276)
- Requires the Joint Legislative Budget Committee to determine truth-in-taxation rates to offset changes in statewide net assessed value.
- Establishes procedures for notices, hearings, and potential two-thirds legislative approval for tax rate increases above truth-in-taxation rates.
- Sets caps and potential statewide tax rate thresholds (e.g., specific maximum rates if elector-approved).
6) Failing Schools Tutoring Fund Use (Section 15-241)
- Allows use of the failing schools tutoring fund in 2026-2027 for professional development, monitoring progress, and tutoring outreach, with a forthcoming expenditure plan due by September 1, 2026.
7) Intent
- Indicates legislative intent to increase the share of classroom spending in instructional, student support, and instructional support categories, as measured by the auditor general.
Impact and Beneficiaries
- Charter schools: potential changes to funding calculations, eligibility, reporting requirements, and penalties for noncompliance; revised ADM timing and reporting deadlines.
- School districts: updated transportation funding calculations; potential shifts in base and transfer payments.
- State Schools for the Deaf and Blind: new property proceeds fund and related disposition procedures.
- Taxpayers: truth-in-taxation framework could influence annual property tax rates and transparency.
- Auditors and the Joint Legislative Budget Committee: enhanced oversight and reporting duties.
Timeline and Procedural Notes
- Amendments reference fiscal years 2026-2027 and beyond; some provisions include deadlines (e.g., May 15 budget revisions, September 1 expenditure plan).
- Truth-in-taxation procedures trigger hearings and potential two-thirds legislative votes for exceeding truth-in-taxation rates.
Conclusion
SB 1841 seeks to refine funding mechanics for charter schools and transportation, broaden oversight of charter compliance, enable asset disposition planning for specialized state schools, and strengthen transparency around property taxes and district budgeting, all with an emphasis on aligning funding with instructional time and program quality.
Compiled from official sources — confirm details with the bill’s official record.
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