Arizona Revised Statutes § 15-949 Small School Districts; Exemption From General Budget Limit; Budget Revision

15-949. Small school districts; exemption from general budget limit; budget revision

A. The governing board of a common school district with a student count in kindergarten programs and grades one through eight of one hundred twenty-five or less, the governing board of a high school district with a student count of one hundred or less or the governing board of a unified school district or the county school superintendent for an accommodation school with a student count of one hundred twenty-five or less in kindergarten programs and grades one through eight or with a student count of one hundred or less in grades nine through twelve shall compute a revenue control limit and a general budget limit, but the governing board or the county school superintendent may:

1. Adopt a budget in excess of the general budget limit without the necessity of an election under section 15-481, provided that for a unified school district or for an accommodation school the excess amount of expenditures shall be attributable to the student count in kindergarten programs and grades one through eight or to the student count in grades nine through twelve as provided in this subsection.

2. Revise its budget to include the costs for additional pupils who were not anticipated when the budget was adopted, if it receives permission as follows:

(a) If a governing board:

(i) The governing board shall send a petition to the county school superintendent requesting authority to revise its budget. The petition shall include a copy of the proposed budget.

(ii) The county school superintendent shall recommend the action to be taken on the petition and forward the recommendation and the petition to the board of supervisors.

(iii) The board of supervisors shall hold a hearing on the petition within twenty days after receipt of the petition and shall determine whether to allow the petition, allow the petition after revision or deny the petition.

(b) If a county school superintendent, the county school superintendent shall send the revised budget to the board of supervisors, and the board of supervisors shall hold a hearing on the recommendation within twenty days after receipt of the recommendation and shall determine whether to allow the revised budget, allow the revised budget after further revision or deny the revision.

B. If the board of supervisors revises or denies the petition or recommendation presented pursuant to subsection A, paragraph 2, subdivision (a), item (iii) or subdivision (b) of this section the reasons for revision or denial shall be stated in writing.

C. School districts that in any year after fiscal year 1984-1985 but before fiscal year 1999-2000 have operated under the provisions of the small school adjustment as provided for in subsection A of this section and that have subsequently exceeded the student count limits expressed in subsection A of this section may continue in successive years to adopt a budget greater than the general budget limit without the necessity of an election under section 15-481, except that the amount greater than the general budget limit shall not exceed fifty thousand dollars. The amount that is adopted without the use of an election under section 15-481 and that is greater than the general budget limit is specifically exempt from the revenue control limit.

D. Notwithstanding subsection C of this section, school districts that exceeded the student count limits prescribed in subsection A of this section may adopt, in the first year that these limits are exceeded, a budget that exceeds the general budget limit without an election conducted pursuant to section 15-481 or pursuant to subsection E of this section, except that the amount that exceeds the general budget limit shall not exceed the amount authorized pursuant to subsection C of this section plus the limit prescribed in subsection E of this section. The amount that is adopted without an election and that exceeds the general budget limit is exempt from the revenue control limit.

E. School districts that in any year after fiscal year 1998-1999 have operated under the provisions of the small school adjustment as provided in subsection A of this section and that have subsequently exceeded the student count limits prescribed in subsection A of this section may continue in successive years to adopt a budget greater than the general budget limit subject to an election, except that the amount that is greater than the general budget limit shall not exceed the amount that is prescribed in this subsection. The amount that is adopted pursuant to this subsection is specifically exempt from the revenue control limit and shall be funded by a levy on secondary property taxes in the school district. The maximum amount that may be adopted pursuant to this subsection is computed as follows:

1. For a unified school district, separate the revenue control limit into elementary and secondary components based on the weighted student count as provided in section 15-971, subsection B, paragraph 2, subdivision (a). Use the elementary component of the revenue control limit for the purposes of paragraph 2 of this subsection and the secondary component of the revenue control limit for the purposes of paragraph 3 of this subsection.

2. For a common or unified district that used the provisions of subsection A of this section based on its elementary student count, the amount is determined as follows:

(a) Subtract one hundred twenty-five from the elementary student count.

(b) Multiply the difference in subdivision (a) of this paragraph by 0.45 per cent.

(c) Subtract the product determined in subdivision (b) of this paragraph from thirty-five per cent. If the result is zero or less than zero, the district is not eligible to use the provisions of this paragraph.

(d) Multiply the difference determined in subdivision (c) of this paragraph by the elementary revenue control limit.

3. For a high school or unified district that used the provisions of subsection A of this section based on its secondary student count, the amount is determined as follows:

(a) Subtract one hundred from the secondary student count.

(b) Multiply the difference in subdivision (a) of this paragraph by 0.65 per cent.

(c) Subtract the product determined in subdivision (b) of this paragraph from sixty-five per cent. If the result is zero or less than zero, the district is not eligible to use the provisions of this paragraph.

(d) Multiply the difference determined in subdivision (c) of this paragraph by the secondary revenue control limit.

4. For a unified school district that used the provisions of subsection A of this section for both its elementary and secondary pupils, combine the amounts determined in paragraphs 2 and 3 of this subsection.

F. For the purposes of subsection E of this section:

1. " Elementary" means kindergarten programs and grades one through eight.

2. " Secondary" means grades nine through twelve.

G. The part of the primary tax rate set to fund the small school district adjustment as provided in subsections D and E of this section shall not be included in the computation of additional state aid for education as prescribed in section 15-972.

H. The election required pursuant to subsection E of this section shall conform to the procedural requirements for calling the election, preparing the informational report and preparing the ballot as prescribed in section 15-481, subsections A, B, C and D. The maximum number of years that a budget override approved pursuant to subsection E of this section may be in effect is five years.

I. If the proposed budget override will be fully funded by a levy of taxes on the taxable property within the school district, the ballot shall contain the words " budget override, yes" and " budget override, no" , and the voter shall signify the voter's desired choice. The ballot shall also contain the amount of the proposed budget override compared to the amount the school district budgeted in the preceding year and the amount the school district would be allowed to budget for if the measure is not approved by the voters. The statement shall also include the estimated amount of the override for each year the override is sought. The ballot shall also include the following statement:

The budget override authorized by this election allows the _______________ school district to levy property taxes in excess of the property tax levy allowed by law to fund the school district's revenue control limit. The property tax levy for the year for which adopted and for ____ subsequent years will be annually adjusted based on a formula that authorizes the _______________ school district to exceed the revenue control limit by up to thirty-five per cent for kindergarten programs and grades one through eight or up to sixty-five per cent for grades nine through twelve. The levy shall not be realized from monies furnished by the state and shall not be subject to the limitation on taxes specified in article IX, section 18, Constitution of Arizona. Based on an estimate of assessed valuation used for secondary property tax purposes, the proposed override in the ________________ school district's budget over that allowed by the revenue control limit would result in an estimated increase in the school district's tax rate of _________________ dollars per one hundred dollars of assessed valuation for the secondary property tax purposes.

J. If the proposed budget override will be fully funded by revenues from other than a levy of taxes on the taxable property within the school district, the ballot shall contain the words " budget override, yes" and " budget override, no" , and the voter shall signify the voter's desired choice. The ballot shall also contain the amount of the proposed budget override compared to the amount the school district budgeted in the preceding year and the amount the school district would be allowed to budget for if the measure is not approved by the voters. The statement shall also include the estimated amount of the override for each year the override is sought. The ballot shall also include the following statement:

Any budget override authorized by this election shall be entirely funded by this school district with revenues from other than a levy of taxes on the taxable property within the school district for the year for which adopted and for ______ subsequent years and shall not be realized from monies furnished by the state.

K. For the purposes of subsections H and I of this section, levy of taxes on the taxable property does not include a levy of the government property lease or park property lease excise taxes assessed pursuant to title 42, chapter 6, article 5.

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Last modified: October 13, 2016