If voters approve it, large school districts would have to spend at least 60 percent of their operating money on direct classroom costs or lose classroom site fund money.
School districts with at least 7,500 students, or that run a school in a county with at least 500,000 people, would have to spend at least 60 percent of operating spending on direct instructional expenses.
A district that misses the target and gets classroom site fund money would lose 25 percent of that allocation after one year of noncompliance, rising to 50, 75, and then 100 percent for two, three, and four or more years.
The measure would go to voters at the next general election. It does not require the state to keep the classroom site fund.
A new section of law would require covered districts to spend at least sixty percent of operational spending on direct instructional expenses. It covers school districts with a student count of at least 7,500, or that operate a school in a county with a population of at least 500,000. The auditor general would define "direct instructional expenses" and "operational spending." Districts below 60 percent must raise their share by at least one-half of one percent each year until they comply, and may count larger increases toward later years. The yearly increases begin in fiscal year 2027-2028. The measure takes effect only if voters approve it and the Governor proclaims it.
The department would reduce a noncompliant district's classroom site fund allocation under a set schedule. The superintendent of public instruction may waive the cut. It covers noncompliant districts that receive money from the classroom site fund under section 15-977. The auditor general must find that the district did not comply in the preceding fiscal year. A waiver can last no more than one year, and no more than two waivers may be issued per district in a ten-year period, with an exception if a second waiver comes more than four years after the first. Money not distributed because of the cuts is counted in the carryforward for the fund. Cuts apply to the budget year after the auditor general finds noncompliance.
The Secretary of State must put the measure before voters at the next general election. It covers Arizona voters and the Secretary of State. The section does not require the state, or any state officer or agency, to maintain the classroom site fund or allocate money to it except as other law provides. The vote would be at the next general election.
No hearings or votes scheduled.