15-949

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.