Bill
HB 4148
Increases per-student charter funding while tightening charter oversight and updating ADM, transportation, and ASDB proceeds with new appraisal and sale rules.
HB 4148 Summary — 57th Arizona Legislature (2nd Regular Session)
Purpose
- Implements FY 2027 budget-related changes for K-12 education in Arizona. The bill primarily updates school funding formulas, transportation funding, and the financing framework for charter schools, as well as provisions related to the Arizona State Schools for the Deaf and Blind (ASDB) and a related capital-proceeds mechanism. It also preserves an intent to increase classroom spending across core categories.
Key Provisions and Changes
1) Charter School Financing and Oversight (Section 15-185 amendments)
- Consolidates funding responsibilities: Charter schools sponsored by state entities (State Board of Education, State Board for Charter Schools, universities, or community college districts) are not financially liable to traditional districts.
- Base support and adjustments: Charter schools determine a base support level with adjustments to the small-school weight for certain charter holders. Specific reductions and conditions apply if charter holders are multi-charter operators or share management structures.
- Enrollment/attendance reporting: Requires periodic reporting on enrollment/attendance; adjustments to equalization assistance may occur after verification (40/100/200 day marks).
- Charter Additional Assistance: Sets per-student levels for preschool-kindergarten-8 and for 9-12 (revised amounts in this bill: preschool-8 at $2,174.54; 9-12 at $2,534.38).
- Withholding and penalties: Sponsor may withhold up to 10% of monthly state aid for noncompliance with federal/state laws or charter terms; civil penalties of $1,000 per fingerprinting violation, with a one-time waiver for the first violation if corrected promptly.
- Tuition/Resident status: Charter schools cannot charge resident students tuition or levy taxes; nonresident students may be charged tuition.
- Bureaucratic flow: Budget, apportionments, and warrants to charter schools follow established state procedures; budget revisions required if counts are over/underestimated.
- Miscellaneous transfers: Charter schools may receive and spend certain DOE distributions; transportation-related actions include potential shared transport with districts for sensory-impaired students under specific distance limits.
2) Definition Revisions and Funding Formulas (Sections 15-901; 15-945)
- Updated definitions and calculation rules for Average Daily Membership (ADM), part-time/full-time status, and other ADM components to reflect nuanced enrollment counting (including preschool, kindergarten, high school enrollment, and concurrent enrollment).
- Transportation funding: 2026-2027 state per-route-mile amounts increase modestly (see Section 15-945).
- Base per-route-mile state support level revised for 2026-2027 in three categories, with increments:
- 0.5 or less: $3.07
- More than 0.5 through 1.0: $2.52
- More than 1.0: $3.07
- Similarly, adjustments apply to academic/career and technical education, vocational education, and athletic trips funding across district types.
3) ASDB Property Proceeds Fund and Disposition (New Section 15-1307; Section 4)
- Establishes a Property Proceeds Fund for proceeds from sale/lease of ASDB buildings/grounds.
- Fund administration: ASDB deposits proceeds; funds are subject to legislative appropriation and do not lapse.
- Expenditure planning: If funds are appropriated, ASDB must prepare an expenditure plan for Joint Legislative Budget Committee review.
- Sale procedures: Independent appraisals (two firms) required; sale to the highest responsible bidder at public sale, with an appraisal-based floor; appraisal services must follow procurement rules and be conducted by qualified entities.
- Notwithstanding other sections, ASDB proceeds designated for this fund are separate from non-lease facility revenues.
4) Truth in Taxation (Section 41-1276)
- Reaffirms and adjusts annual truth-in-taxation calculations to offset changes in property value; provides a process for hearings, notices, and potential two-thirds legislative approval for tax-rate changes beyond truth-in-taxation rates.
5) Failing Schools Tutoring Fund Use (Section 6)
- Allows ADE to use FY 2027 funds from the Failing Schools Tutoring Fund for professional development, progress monitoring, and tutoring outreach, with reporting of proposed expenditures by Sept 1, 2026.
6) Miscellaneous/Intent (Section 8)
- Retains an intent clause to increase classroom spending across instruction, student support, and instructional support, as measured by the auditor general.
Impact Overview
- Increased per-student charter funding (distinct from district funding) and tightened oversight/enforcement for charters.
- Revised ADM definitions, affecting budgets and equalization calculations.
- Slightly higher transportation funding per route mile, with district-type adjustments.
- New ASDB property-proceeds framework with mandatory appraisal and public sale requirements.
- Enhanced transparency and accountability around budget planning and tutoring program funding.
Effective Date
- The bill is introduced in 2026 and reflects budget-year adjustments for FY 2027; specific effective dates align with standard appropriation cycles and fiscal-year start dates.
Compiled from official sources — confirm details with the bill’s official record.
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