SB 1521 K-12 education; budget reconciliation; (Kavanagh)

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SB 1521 K-12 educatin; budget recnciliatin; 2018-2019 (Kavanagh) Belw are the details f funding and prcedural changes which affect K-12 educatin in Arizna. The page numbers belw reference the intrduced versin f SB1521/HB2663. The page numbers nted belw refer t the intrduced versin f SB1521 Base Level Adjustment Increases the base level in FY 2019 by $276.80 t $3,960.07. This amunt accunts fr 1.77% inflatin factr and increased teacher pay apprpriatins. (PG 45) Teacher Pay Reprting Requires schl districts and charter schls t include in their budgets and prminently pst n their website the fllwing infrmatin: The average salary f all teachers emplyed by the schl district r charter schl fr the current and previus year. The dllar and percentage increase in the average salary f all teachers emplyed by the district r charter fr the current year. Districts and charters will prminently pst the abve infrmatin n its site s hmepage. (Pg. 17) Requires the department f educatin t cmpile this infrmatin frm district and charter budgets and submit t the Legislature and the gvernr. District Additinal Assistance Requires ADE t reduce the frmula suspensin fr district additinal assistance statewide: FY 2019, $257,469,900. (+$100M) FY 2020, $193,102,400. (+$64.4M) FY 2021, $128,734,900. (+64.4M) FY 2022, $64,367,400. (+$64.4M) FY 2023 and each fiscal year thereafter, $0.00. (+$64.4M) Fr FY 2019-2022 ADE will reduce budget limits fr nn-state aid districts t accunt fr their share f DAA reductins.

Districts with a student cunt f fewer than 1,100 students are exempt frm the abve reductins and will receive 100% f DAA allcatin in FY2019(PGs. 80-81 Charter Schls Enables the spnsr f a charter schl t deny a request fr charter renewal r t revke that charter if they deem that the charter hlder has failed t meet the financial perfrmance expectatins set ut in the perfrmance framewrk r any imprvement plans (Pgs. 6-7). Increases charter schl additinal assistance by 1.77% fr the annual inflatin adjustment (Pg. 13) Restres Charter Schl Additinal Assistance t full frmula funding by FY2022. (Pg. 81) Prcurement Many f the fllwing prvisins are already included in prcurement rules adpted by the SBE, r elsewhere in statute, except where indicated by bld type. Requires the State Bard f Educatin (SBE) t adpt rules fr the prcurement by districts and charters f any materials, services, gds, cnstructin, r cnstructin services that ensure maximum practicable cmpetitin and require cntracts t be awarded based n the lwest qualified bidder. They shall als require that a persn: That cntracts fr r purchases any f the abve items in a manner that vilates SBE s rules be held persnally liable fr the recvery f all public funds plus 20% f that amunt and legal interest frm the date f payment and all csts and damages arising ut f the vilatin. That intentinally r knwingly des the abve pursuant t a scheme r artifice t avid the rules be subject t a class 4 felny. That prepares prcurement specificatins may nt receive any direct r indirect benefit frm using them. That serves n a selectin cmmittee fr a prcurement may nt be a cntractr r subcntractr wh benefits frm the prcurement. Cmmitteepersns wh fail t disclse cntact with a representative f a cmpeting vendr r wh fail t prvide required accurate infrmatin are subject t a civil penalty.

Requires SBE t adpt rules requiring districts and nnexempt charters t btain and maintain a recrd f prf that a cntracted cnstructin r cnstructin services prvider has a valid license t practice in Arizna. (Pg. 19) Requires schl gverning bards t prvide t the public their ratinale fr awarding a cntract. Enables the Attrney General (AG) t take the fllwing actin against an emplyee f a district, nnexempt charter, r a schl purchasing cperative if the AG has reasnable cause t believe that they have vilated r will vilate SBE s prcurement rules: The AG may require that emplyee t file a statement r reprt in writing and under ath as t all the facts and circumstances cncerning a vilatin f the rules, alng with any ther infrmatin deemed necessary. Examine under ath any persn in cnnectin with a vilatin f the rules. (Pg. 21) Prhibits a district r charter emplyee wh has cntrl ver persnnel actins frm taking reprisal against anther emplyee wh has disclsed infrmatin that is a matter f public cncern t a public bdy. (Pg. 22) Establishes that a persn wh supervises r participates in cntracts, purchases, payments, claims, r ther financial transactins, r a persn wh participates r supervises in the planning, recmmending, selecting, r cntracting fr materials, services, gds, cnstructin, r cnstructin services f a district, nnexempt charter, r schl purchasing cperative is guilty f a class 6 felny if they slicit, accept, r agree t accept any persnal gift r benefit with a value f 300 dllars r mre frm a persn r vendr wh benefits frm the prcurement. If the gift is less than 300 dllars, then the individual will be subject t a class 1 misdemeanr. A gift r benefit des nt include an item f nminal value, such as a pen. (Pg 23) Prhibits a district frm hiring the same auditr r auditing firm fr mre than three cnsecutive years. The firm r auditr cannt receive cnsulting fees. (Pg.24) Cmputer Prgram Science Fund

Establishes the Cmputer Science Prgram Fund under ADE. The fund cnsists f apprpriated funds and grants, gifts, and dnatins frm public r private surces. It will receive nging funding and ADE will distribute Fund grants t districts and charters t fund quality training fr prspective cmputer science teachers. Districts and charters will demnstrate hw they plan t use grant funds. Recipients must prvide evidence that the training they prvide addresses academic standards fr cmputer science and must submit an annual reprt t ADE by June 30th n the utcmes achieved and n hw the funds were used. Prhibits ADE frm distributing grant funds unless matching funds are received frm private surces. ADE may use up t 5% f depsited funds fr administrative purpses. (Pg. 26) Rural Schls Schls arecnsidered rural fr the purpses f federal funding eligibility if they are lcated in a cunty with a ppulatin that is less than r equal t 10% f Arizna s ppulatin r if they are lcated in a cunty that exceeds this amunt but is lcated mre than ten miles frm a municipality with a ppulatin f mre than 50,000. (Pg. 27) Schl Facilities Bard (SFB) Subjects emplyees f SFB t Arizna laws n cnflicts f interest. Additinally, SFB members may nt slicit, accept, r prvide gifts that are prhibited by state law. (PG. 53) Emplyees als cannt have a direct r indirect financial interest in any prperty purchased, facility cnstructed, r cntract financed with Bard r any ther public funds. Vilatrs are subject t a class 1 misdemeanr. (Pg. 53) Requires SFB t establish plicies and prcedures fr: Establishing a prject eligibility assessment fr all prjects submitted fr Building Renewal Grant funding r emergency deficiencies crrectin funding. They must als establish standardized criteria fr prject eligibility. (PG.55) Building renewal grant change rders s that districts that apprve wrk referenced in an rder befre SFB apprves are held respnsible fr the cst and cnstructin f the prject. (Pg. 53)

Ntificatins fr districts n the services and funding available frm the bard fr facility cnstructin, renvatin, and repair prjects. It must be ensured that schls will receive these ntificatins in a unifrm and timely manner at least annually. This infrmatin will be updated and psted n the bards website by July 1st f each year. (PG. 53) The bard will als establish and maintain a list f the peple respnsible fr facilities management at each district, which will als be updated and psted n the bards site by July 1st f each year. A district will prmptly ntify the bard f any change t persns wh are respnsible. (PG. 53) Maintaining standardized dcumentatin f all prjects submitted t the bard fr cnsideratin t receive services r a financial award. The dcumentatin will include the fllwing as part f the eligibility determinatin criteria: Whether the prblem the prpsed prject intends t address caused the building r facility t fall belw the minimum schl facility adequacy guidelines. Whether the district perfrmed the required rutine preventive maintenance n the building r facility. Requiring a district t submit cntact infrmatin fr each prpsed prject, including that f individuals wh are respnsible fr the district s facilities management. Requiring districts t prvide justificatin fr each prpsed prject, including numerus items such as any citatin r reprt frm gvernment entities. Requiring districts t reprt the preventive maintenance activities cmpleted during the previus twelve mnths fr the facility they are requesting Building Renewal Grant funds fr. Requiring that a cmplete applicatin be received by the bard at least 15 business days befre the next regularly scheduled bard meeting s that it can be cnsidered at the meeting. An incmplete applicatin can be cnsidered if bth bard staff and the district's superintendent deem the prject critical. Plicies and prcedures will be established that allw districts t submit incmplete applicatins and request technical assistance frm the staff f the bard if the district is unable t prvide sufficient infrmatin in the initial applicatin. Plicies and prcedures will be established that allw the staff f the bard t prvide a written ntificatin t a district prir t an applicatin s review by the

bard that the prpsed prject des nt meet eligibility criteria, which will include dcumentatin t supprt this decisin. A district can appeal this decisin directly t the executive directr f the bard and can appeal a rejectin frm the directr directly t the bard. A district can appeal the denial f a request fr funds r any ther appealable agency actin by the bard. (Pgs. 55-57) Enables SFB t deny a district funding fr their prject if there are insufficient funds available and if the prject is cnsidered nncritical by the bard. (Pgs. 66-67). Enables a district gverning bard t delegate authrity in writing t the superintendent f the district t submit plans fr new schl facilities t SFB fr the purpse f certifying that the plans meet minimum schl facility adequacy guidelines. (Pg. 38) Eliminates SFB's ability t priritize a schl districts prject if they can prvide a match f the funds distributed frm the Building Renewal Grant Fund. (PG. 66) Terminates SFB n July 1, 2022 and repeals Arizna statutes relating t SFB, such as laws that establish the Building Renewal Grant Fund, n January 1, 2023 if either: The bard has n utstanding state schl facilities revenue bnds, n utstanding state schl imprvement revenue bnds, and n utstanding lease-t-wn transactins. The legislature has therwise prvided fr paying r retiring any f the abve items. If neither f these cnditins ccur n r befre January 1, 2023, then the affected laws will be repealed 30 days after the retirement f all revenues bnds issued and any utstanding lease-t-wn transactins issued. (Pg. 78) Allws the SFB t distribute $825K frm the new schl facilities fund t Bensn Unified Schl District t accunt fr increased cst per square ft n its apprved cnstructin prject. (Pgs. 79-80) Requires districts and cunty schl superintendents t cperate with and prvide infrmatin and recrds t the Auditr General t facilitate the cmpletin f their special audit f SFB, which will be cmpleted by June 30, 2019. Transprtatin Funding Increases the State Supprt Level per Rute Mile fr FY 2018 by 1.77% fr the required inflatin adjustment. (PG. 50)

Arizna State Schls fr the Deaf and the Blind Enables ASDB t use funds frm the telecmmunicatin fund fr the deaf in FY 2018 t supprt the expansin f its birth-t-three prgram. (PG 80) Miscellaneus Requires each district t prminently pst n its website hme page a cpy f its prfile pages that displays the percentage f every dllar spent in the classrm by that district frm the mst recent status reprt issued by the Auditr General. (PG 76) The general budget limit fr a district that in FY 2018-2018 was subject t the additinal tax in districts ineligible fr equalizatin assistance and that in FY 2016 had a ttal attending ADM f at least 5,000 students accrding t the annual reprt f the Superintendent f Public Instructins fr FY 2016 shall be increased by $1,500,000 in FY 2018 abve the amunts that therwise wuld be cmputed. (Cave Creek Unified Schl District)(Pg. 81) In FY 2018 $4,145,600 is apprpriated t ADE fr the schl safety prgram, cmpared t $3,646,500 in FY 2017. The prgram will be repealed n December 31, 2019 instead f December 31, 2018. (PG 78-79)