HCR 2007
reporting; teacher salary increases; schools
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Bill overview
This concurrent resolution proposes a change to Arizona school district budgeting, requiring at least 60% of operational spending to be allocated to direct instructional expenses. School districts meeting certain population or student count thresholds are subject to this requirement. Failure to comply could result in reduced funding from the Classroom Site Fund, with the severity of the reduction increasing with the number of consecutive years of non-compliance. A superintendent can issue waivers, but these are limited in duration and frequency.
Key provisions
- School districts with at least 7,500 students or located in counties with over 500,000 residents must spend at least 60% of their operational spending on direct instructional expenses.
- School districts that fall short of the 60% spending requirement must increase that percentage by at least 0.5% annually until compliance is achieved.
- Failure to comply for multiple years (one, two, three, or four) results in progressively larger reductions to the Classroom Site Fund allocation.
- The Superintendent of Public Instruction can issue waivers, but these are limited to one year and capped at two per school district within a 10-year period.
- The auditor general will define ‘direct instructional expenses’ and ‘operational spending’ for the purpose of this resolution.
- The Classroom Site Fund is not mandated to be maintained or funded by this resolution, except as otherwise provided by law.
Who is affected
- School districts in Arizona
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| House Engrossed reporting; teacher salary increases; schools (now:� instructional expenses; operational spending; enforcement) |
| State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026 |
| HOUSE CONCURRENT RESOLUTION 2007 |
A CONCURRENT RESOLUTION
enacting and ordering the submission to the people of a measure relating to school district budgets.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it resolved by the House of Representatives of the State of Arizona, the Senate concurring:
1. Under the power of the referendum, as vested in the Legislature, the following measure, relating to school district budgets, is enacted to become valid as a law if approved by the voters and on proclamation of the Governor:
AN ACT
Amending title 15, chapter 9, article 1, Arizona Revised Statutes, by adding section 15-917; relating to school district budgets.
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 15, chapter 9, article 1, Arizona Revised Statutes, is amended by adding section 15-917, to read:
START_STATUTE15-917. Operational spending; direct instructional expenses; enforcement; waivers
A. Each school district that has a student count of at least seven thousand five hundred or that operates a school in a county with a population of at least five hundred thousand persons shall spend at least sixty percent of the school district's operational spending on direct instructional expenses. Beginning in fiscal year 2027-2028, any school district that spends less than sixty percent of the school district's operational spending on direct instructional expenses shall increase the portion of the school district's operational spending that is spent on direct instructional expenses each year by at least one-half of one percent per year until the school district is in compliance, subject to the following:
1. If a school district increases the portion of the school district's operational spending on direct instructional expenses by more than one-half of one percent per year, the school district may count the portion of the increase that exceeds one-half of one percent toward any increase that is required in a subsequent year.
2. If a school district reduces the portion of the school district's operational spending on direct instructional expenses, both of the following apply:
(a) The auditor general may not consider the reduction when calculating the amount of the annual increase that is required by this subsection for the school district.
(b) The school district may count only the portion of an increase in operational spending on direct instructional expenses FOR a subsequent year that RESULTS IN AN INCREASE ABOVE THE PORTION OF OPERATIONAL SPENDING BEFORE THE REDUCTION.
B. If the auditor general determines that a school district did not comply with the requirements prescribed by subsection A of this section in the immediately preceding fiscal year AND IF THE SCHOOL DISTRICT RECEIVES MONIES FROM THE CLASSROOM SITE FUND ESTABLISHED BY SECTION 15-977, the department shall reduce the school district's allocation pursuant to section 15-977, subsection G for the budget year by the following amounts:
1. If the school district did not comply for one year, an amount that is equal to Twenty-five percent of the amount that would otherwise be allocated to the school district.
2. If the school district did not comply for two years, an amount that is equal to fifty percent of the amount that would otherwise be allocated to the school district.
3. If the school district did not comply for three years, an amount that is equal to seventy-five percent of the amount that would otherwise be allocated to the district.
4. If the school district did not comply for at least four years, an amount that is equal to the amount that would otherwise be allocated to the district.
C. the staff of the joint legislative budget committee shall include monies that are not distributed because of reductions required by subsection B of this section in the carryforward for the purposes of section 15-977, subsection G, paragraph 1.
D. The superintendent of public instruction may waive the requirements prescribed by subsection B of this section for a school district subject to the following:
1. The duration of a waiver pursuant to this subsection may NOT exceed one year.
2. The superintendent of public instruction may not issue more than two waivers for A school district during any ten-year period, except as provided in paragraph 3 of this subsection.
3. If the superintendent issues a second waiver for a school district more than four years after the date on which the superintendent issues a first waiver for the SCHOOL district, the superintendent may issue another waiver for the school district at any time during the ten-year period that begins on the date that the superintendent issues the second waiver.
E. This section does not require THIS STATE OR AN OFFICER OR AGENCY OF THIS STATE TO MAINTAIN THE classroom site fund established by section 15-977 OR ALLOCATE MONIES FOR A CLASSROOM SITE FUND EXCEPT AS OTHERWISE PROVIDED BY the LAWS OF THIS STATE.
F. The auditor general shall define "direct instructional expenses" and "operational spending" for the purposes of this section.END_STATUTE
2. The Secretary of State shall submit this proposition to the voters at the next general election as provided by article IV, part 1, section 1, Constitution of Arizona.