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HB 2563 - Education funding; use tax; TPT

Tracking Level: Neutral
Sponsor: Michelle Udall
Last Action: 2/18/2019 - House ED Committee action: Do Pass Amended, voting: (8-4-1-0-0-0)
House Committee: Rules
Assigned To:
RevenueNext Bill

Staff Analysis of the Legislation

This bill makes changes to the distributions for Proposition 301 and Repeals language associated with the Prop 301 extension passed in 2018.

 

  1. Repeals language specifying the percentage of Classroom Site Fund (CSF) monies each district and charter school must allocate for specified purposes.
  2. Expands the list of eligible purposes CSF monies may be expended on to include the following:
    1. Educational interventions;
    2. Voluntary Full-Day Kindergarten;
    3. Increased cost of additional school days enacted in 2000;
    4. Student support services;
    5. Tutoring;
    6. Character education;
    7. School Resource Officers; and
    8. Career and Technical Education.
  3. Removes the following as eligible expenses for CSF monies:
    1. Assessment intervention programs; and
    2. Teacher liability insurance premiums.
  4. Requires ADE to annually use $86,280 of CSF monies to fund basic state aid.
  5. Specifies all monies collected from the "Prop 301" tax will be distributed as follows:
    1. 70% to the CSF;
    2. 20% in the following manner:

                                                                    i.        34% to the Technology and Research Initiative Fund (TRIF); and

                                                                 ii.        66% to the Arizona Board of Regents (BAOR) proportionally based on resident tuition enrollment.

    1. 5% in the following manner:

                                                                    i.        $48 million as follows:

        1. $1 million to each community college district for workforce development programs;
        2. $300,000 to each provisional community college district for trade and workforce development programs; and
        3. The remaining monies will be distributed based on the full-time student count of each community college and provisional community college.

                                                                 ii.        $2 million as follows:

        1. $500,000 to each qualifying community college owned, operated or chartered by an Indian Tribe for trade and workforce development programs; and
        2. The remaining monies will be distributed based on full-time student count for each qualifying community college.
    1. 5% in the following manner:

                                                                    i.        $25 million to the General Fund for the low-income tax credit;

                                                                 ii.        $15 million to the Department of Education (ADE) for the school safety program;

                                                               iii.        $7 million to ADE for the education learning and accountability system;

                                                               iv.        $3 million to the Auditor General (OAG) to report on the use of Prop 301 monies by the recipients; and

                                                                 v.        Any remaining monies to the CSF.

  1. States if monies collected from the tax are insufficient to fund the community college workforce development programs as outlined, the distributions will be reduced proportionally.
  2. Specifies the bill is conditional upon the passage of HCR 2024 at the next general election.

 


Bill Summary from the State Site - Click for the State Summary Page / Click for Current Full Text / PDF
Summary:

Education funding; use tax; TPT

Title:

Education funding; use tax; TPT

Introduction Date:

Tuesday, February 12, 2019