PROP 320A 60% classroom-spending rule for larger school districts

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REFERENCE TITLE: educator salary increases; school reporting

State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026

SCR 1032

Introduced by
Senator Hoffman

A CONCURRENT RESOLUTION

ENACTING AND ORDERING THE SUBMISSION TO THE PEOPLE OF A MEASURE RELATING
TO SCHOOL EMPLOYEES.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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Be it resolved by the Senate of the State of Arizona, the House of 1
Representatives concurring: 2
1.  Under the power of the referendum, as vested in the legislature, 3
the following measure, relating to school employees, is enacted to become 4
valid as a law if approved by the voters and on proclamation of the 5
Governor: 6
AN ACT 7
AMENDING SECTION 15-189.05, ARIZONA REVISED STATUTES; AMENDING 8
TITLE 15, CHAPTER 2, ARTICLE 2, ARIZONA REVISED STATUTES, BY 9
ADDING SECTION 15-248.01; AMENDING SECTION 15-903, ARIZONA 10
REVISED STATUTES; RELATING TO SCHOOL EMPLOYEES. 11
Be it enacted by the Legislature of the State of Arizona: 12
Section 1.  Section 15-189.05, Arizona Revised Statutes, 13
is amended to read: 14
15-189.05.  Charter school budgets; posting of teacher
15
salary information; annual report 16
A.  The budget for each charter school shall contain the 17
following information: 18
1.  The average salary of all teachers employed by the 19
charter school for the current year. 20
2.  The average salary of all teachers employed by the 21
charter school for the previous year. 22
3.  The dollar increase in the average salary of all 23
teachers employed by the charter school for the current year. 24
4.  The percentage increase in the average salary of all 25
teachers employed by the charter school for the current year. 26
5.  THE SALARY SCHEDULE FOR ELIGIBLE TEACHERS AS DEFINED 27
IN SECTION 15-248.01 WHO ARE EMPLOYED BY THE CHARTER SCHOOL 28
FOR THE CURRENT YEAR. 29
6.  A STATEMENT IDENTIFYING THE NUMBER OF ELIGIBLE 30
TEACHERS AS DEFINED IN SECTION 15-248.01 WHO ARE EMPLOYED BY 31
THE CHARTER SCHOOL FOR THE CURRENT YEAR. 32
B.  Each charter school shall prominently post the 33
information required by subsection A of this section on its 34
website home page separately from its budget. 35
C.  On or before November 30 of each year, the 36
department of education shall electronically submit to the 37
joint legislative budget committee and the governor's office 38
of strategic planning and budgeting a report that compiles the 39
information required by subsection A of this section for all 40
charter schools statewide.  41

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Sec. 2.  Title 15, chapter 2, article 2, Arizona Revised 1
Statutes, is amended by adding section 15-248.01, to read: 2
15-248.01.  Teachers; base salary increases; teacher pay
3
fund; eligibility; distribution; annual 4
estimate; definition 5
A.  IF THE VOTERS APPROVE AN INCREASED DISTRIBUTION RATE 6
FROM THE STATE LAND TRUST PERMANENT FUNDS PURSUANT TO ARTICLE 7
X, SECTION 7, SUBSECTION N, CONSTITUTION OF ARIZONA, EACH 8
SCHOOL DISTRICT AND CHARTER SCHOOL IN THIS STATE SHALL REVISE 9
ITS SALARY SCHEDULE OR SCHEDULES TO INCREASE THE BASE SALARY 10
OF ALL ELIGIBLE TEACHERS WHO ARE OR WILL BE EMPLOYED BY A 11
SCHOOL OPERATED BY THE SCHOOL DISTRICT OR CHARTER SCHOOL.  IF 12
SALARY INCREASES ARE REQUIRED UNDER THIS SUBSECTION, THE 13
INCREASE SHALL BE ALL OF THE FOLLOWING: 14
1.  THE AMOUNT ESTIMATED PURSUANT TO SUBSECTION E OF 15
THIS SECTION. 16
2.  THE SAME AMOUNT FOR EACH ELIGIBLE TEACHER WITHOUT 17
REGARD TO TEACHER EXPERIENCE LEVELS. 18
B.  NOTWITHSTANDING SECTIONS 15-502 AND 15-544, IF 19
SALARY INCREASES ARE REQUIRED BY SUBSECTION A OF THIS SECTION, 20
A SCHOOL DISTRICT OR CHARTER SCHOOL MAY NOT REDUCE THE BASE 21
SALARY OF ELIGIBLE TEACHERS WHO ARE OR WILL BE EMPLOYED BY THE 22
SCHOOL DISTRICT OR CHARTER SCHOOL BELOW THE BASE SALARY 23
SCHEDULE REPORTED TO THE DEPARTMENT OF EDUCATION IN FISCAL 24
YEAR 2026-2027.  THIS SUBSECTION DOES NOT RESTRICT A SCHOOL 25
DISTRICT'S OR CHARTER SCHOOL'S AUTHORITY TO ADJUST AN 26
INDIVIDUAL TEACHER'S SALARY IN A MANNER THAT IS CONSISTENT 27
WITH THE APPLICABLE BASE SALARY SCHEDULE, INCLUDING AN 28
ADJUSTMENT FOR ANY CHANGE IN EMPLOYMENT STATUS.   29
C.  THE TEACHER PAY FUND IS ESTABLISHED CONSISTING OF 30
LEGISLATIVE APPROPRIATIONS AND DISTRIBUTIONS FROM THE 31
PERMANENT STATE SCHOOL FUND PURSUANT TO ARTICLE X, SECTION 7, 32
SUBSECTION N, CONSTITUTION OF ARIZONA.  MONIES IN THE FUND ARE 33
CONTINUOUSLY APPROPRIATED AND ARE EXEMPT FROM THE PROVISIONS 34
OF SECTION 35-190 RELATING TO LAPSING OF APPROPRIATIONS.  THE 35
DEPARTMENT OF EDUCATION SHALL ADMINISTER THE FUND AND 36
ESTABLISH PROCEDURES FOR DETERMINING WHETHER SCHOOL DISTRICTS 37
AND CHARTER SCHOOLS ARE ELIGIBLE TO RECEIVE MONIES FROM THE 38
FUND.  IF INCREASES ARE REQUIRED UNDER SUBSECTION A OF THIS 39
SECTION, THE DEPARTMENT SHALL ALLOCATE MONIES FROM THE FUND TO 40
EACH ELIGIBLE SCHOOL DISTRICT OR CHARTER SCHOOL IN AN AMOUNT 41
EQUAL TO THE AMOUNT DETERMINED PURSUANT TO SUBSECTION F OF 42
THIS SECTION MULTIPLIED BY THE NUMBER OF ELIGIBLE TEACHERS 43
EMPLOYED BY THE SCHOOL DISTRICT OR CHARTER SCHOOL AS REPORTED 44
PURSUANT TO SECTION 15-189.05 OR 15-903 TO FUND THE INCREASES 45

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MADE UNDER SUBSECTION A OF THIS SECTION.  THE MONIES 1
DISTRIBUTED PURSUANT TO THIS SUBSECTION ARE IN ADDITION TO ANY 2
OTHER MONIES, PUBLIC OR PRIVATE, THAT THE SCHOOL DISTRICT OR 3
CHARTER SCHOOL RECEIVES FROM ANY LAWFUL SOURCE AND MAY NOT 4
SUPPLANT, REPLACE OR OTHERWISE CAUSE A REDUCTION IN OTHER 5
FUNDING SOURCES FOR THE SCHOOL DISTRICT OR CHARTER SCHOOL.  6
THE MONIES DISTRIBUTED PURSUANT TO THIS SUBSECTION ARE EXEMPT 7
FROM THE REVENUE CONTROL LIMIT PRESCRIBED BY SECTION 15-947. 8
D.  NOTWITHSTANDING SUBSECTION C OF THIS SECTION, IF THE 9
LEGISLATURE APPROPRIATES MONIES TO THE TEACHER PAY FUND FOR 10
SALARY INCREASES NOT REQUIRED BY SUBSECTION A OF THIS SECTION, 11
THE DEPARTMENT OF EDUCATION SHALL ALLOCATE THE APPROPRIATED 12
MONIES TO EACH ELIGIBLE SCHOOL DISTRICT AND CHARTER SCHOOL 13
ACCORDING TO THE TERMS OF THE APPROPRIATION. 14
E.  ON OR BEFORE MARCH 30 OF EACH YEAR, THE TREASURER 15
SHALL PROVIDE TO THE STAFF OF THE JOINT LEGISLATIVE BUDGET 16
COMMITTEE AN ESTIMATE OF THE AMOUNT OF DISTRIBUTIONS PURSUANT 17
TO ARTICLE X, SECTION 7, SUBSECTION N, CONSTITUTION OF 18
ARIZONA, THAT WILL BE DEPOSITED IN THE TEACHER PAY FUND FOR 19
THE BUDGET YEAR. 20
F.  ON OR BEFORE MARCH 30 OF EACH YEAR, THE STAFF OF THE 21
JOINT LEGISLATIVE BUDGET COMMITTEE SHALL DETERMINE A PER 22
TEACHER AMOUNT FROM THE TEACHER PAY FUND FOR THE BUDGET YEAR 23
USING THE STATEWIDE NUMBER OF ELIGIBLE TEACHERS AS REPORTED 24
PURSUANT TO SECTION 15-189.05 OR 15-903 AND BASED ON THE 25
ESTIMATE PURSUANT TO SUBSECTION E OF THIS SECTION. 26
G.  EACH SCHOOL DISTRICT AND CHARTER SCHOOL THAT 27
RECEIVES MONIES FROM THE TEACHER PAY FUND SHALL SUBMIT A 28
REPORT ON OR BEFORE NOVEMBER 15 OF EACH YEAR TO THE 29
SUPERINTENDENT OF PUBLIC INSTRUCTION THAT PROVIDES AN 30
ACCOUNTING OF THE EXPENDITURES OF MONIES DISTRIBUTED FROM THE 31
FUND DURING THE PREVIOUS FISCAL YEAR.  THE DEPARTMENT OF 32
EDUCATION IN CONJUNCTION WITH THE AUDITOR GENERAL SHALL 33
PRESCRIBE THE FORMAT OF THE REPORT UNDER THIS SUBSECTION.   34
H.  THE DEPARTMENT OF EDUCATION, ON REPORT FROM THE 35
AUDITOR GENERAL, SHALL DETERMINE WHETHER SCHOOL DISTRICTS AND 36
CHARTER SCHOOLS ARE COMPLYING WITH THE REQUIREMENTS PRESCRIBED 37
IN THIS SECTION.  IF THE DEPARTMENT DETERMINES THAT A SCHOOL 38
DISTRICT OR CHARTER SCHOOL IS NOT IN COMPLIANCE OR HAS FAILED 39
TO CORRECT A DEFICIENCY WITHIN NINETY DAYS AFTER RECEIVING 40
NOTICE OF NONCOMPLIANCE FROM THE AUDITOR GENERAL, THE SCHOOL 41
DISTRICT OR CHARTER SCHOOL IS INELIGIBLE TO RECEIVE MONIES 42
FROM THE TEACHER PAY FUND PURSUANT TO SUBSECTION C OR D OF 43
THIS SECTION FROM THE DATE OF THE DETERMINATION UNTIL THE 44
AUDITOR GENERAL REPORTS THAT THE SCHOOL DISTRICT OR CHARTER 45

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SCHOOL IS COMPLYING WITH THE REQUIREMENTS PRESCRIBED IN THIS 1
SECTION. 2
I.  FOR THE PURPOSES OF THIS SECTION, "ELIGIBLE 3
TEACHER":  4
1.  MEANS A PERSON WHO IS EMPLOYED BY A CHARTER SCHOOL 5
OR A SCHOOL OPERATED BY A SCHOOL DISTRICT IN THIS STATE AND 6
WHO EITHER: 7
(a)  MEETS BOTH OF THE FOLLOWING: 8
(i)  IS EMPLOYED FOR A FULL SCHOOL DAY, OR ITS 9
EQUIVALENT, OR FOR A FULL CLASS LOAD, OR ITS EQUIVALENT, AS 10
DETERMINED BY THE DEPARTMENT OF EDUCATION. 11
(ii)  DEVOTES MORE THAN SEVENTY-FIVE PERCENT OF THE 12
PERSON'S TIME AT WORK TO NONADMINISTRATIVE ACTIVITIES THAT 13
PROVIDE INSTRUCTION TO STUDENTS. 14
(b)  MEETS BOTH OF THE FOLLOWING:  15
(i)  IS EMPLOYED AS A SPECIAL EDUCATION TEACHER FOR A 16
FULL SCHOOL DAY, OR ITS EQUIVALENT, OR FOR A FULL CLASS LOAD, 17
OR ITS EQUIVALENT, AS DETERMINED BY THE DEPARTMENT OF 18
EDUCATION. 19
(ii)  DEVOTES MORE THAN FIFTY PERCENT OF THE PERSON'S 20
TIME AT WORK TO SUPPORT STUDENT ACADEMIC ACHIEVEMENT AS 21
PRESCRIBED BY THE SCHOOL DISTRICT GOVERNING BOARD OR THE 22
CHARTER SCHOOL GOVERNING BODY. 23
2.  INCLUDES CURRENT TEACHERS AND TEACHERS WHO BEGIN 24
WORK FOR THE SCHOOL DISTRICT OR CHARTER SCHOOL AFTER THE 25
EFFECTIVE DATE OF THIS SECTION. 26
3.  DOES NOT INCLUDE AN ADMINISTRATOR OR A PERSON WHO 27
HAS BEEN DESIGNATED IN EITHER OF THE TWO LOWEST PERFORMANCE 28
CLASSIFICATIONS AFTER AN EVALUATION CONDUCTED PURSUANT TO 29
SECTION 15-189.06 OR 15-537.  30
Sec. 3.  Section 15-903, Arizona Revised Statutes, is 31
amended to read: 32
15-903.  Budget format; prohibited expenditures; annual
33
report 34
A.  The superintendent of public instruction in 35
conjunction with the auditor general shall prepare and 36
prescribe a budget format to be used by all school districts. 37
B.  The budget format shall be designed to allow all 38
school districts to plan and provide in detail for using 39
available monies.  The budget format shall contain distinct 40
sections for, but need not be limited to, maintenance and 41
operation, debt service, special projects, capital outlay, 42
adjacent ways and classroom site fund.  The maintenance and 43
operation section shall include, but need not be limited to, 44
separate subsections for regular education programs, special 45

SCR 1032

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education programs and operational expenditures for pupil 1
transportation.  Each subsection shall clearly distinguish 2
classroom instruction expenditures.  The special education 3
program subsection shall include a subtotal for the disability 4
classifications as defined in section 15-761 and programs for 5
gifted, vocational and technical education, remedial education 6
and bilingual students.  The total expenditures for each of 7
these programs shall be included on the budget form.  The 8
pupil transportation subsection shall include all operational 9
expenditures relating to transporting pupils, including all 10
operational expenditures within a contract if the school 11
district contracts for pupil transportation. 12
C.  The capital outlay section of the budget shall 13
include a subsection for unrestricted capital outlay.  The 14
unrestricted capital outlay subsection shall include budgeted 15
expenditures for acquisitions by purchase, lease-purchase or 16
lease of capital items as defined in the uniform system of 17
financial records and shall include: 18
1.  Land, buildings and improvements to land and 19
buildings, including labor and related employee benefits costs 20
and material costs if work is performed by school district 21
employees. 22
2.  Furniture, furnishings, athletic equipment and other 23
equipment, including computer software. 24
3.  Pupil and nonpupil transportation vehicles and 25
equipment, including all capital expenditures within a 26
contract if the school district contracts for pupil 27
transportation. 28
4.  Textbooks and related printed subject matter 29
materials adopted by the governing board. 30
5.  Instructional aids. 31
6.  Library books. 32
7.  Payment of principal and interest on bonds. 33
8.  School district administration emergency needs that 34
are directly related to pupils. 35
D.  The budget format shall contain distinct subsections 36
for the following: 37
1.  Special programs to improve academic achievement of 38
pupils in kindergarten programs and grades one through three 39
as provided in section 15-482. 40
2.  School plant funds. 41
3.  Capital outlay budget increases as provided in 42
section 15-481. 43

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4.  Property taxation, including the following: 1
(a)  The primary tax rates for the school district for 2
the current year and the budget year. 3
(b)  The secondary tax rates for maintenance and 4
operation, K-3 and capital overrides for the school district 5
for the current year and the budget year. 6
(c)  The secondary tax rates for class A bonds for the 7
school district for the current year and the budget year. 8
(d)  The secondary tax rates for class B bonds for the 9
school district for the current year and the budget year. 10
5.  A description of any corrections or adjustments made 11
to the budget pursuant to section 15-915. 12
E.  The budget format shall also contain: 13
1.  A statement identifying proposed pupil-teacher 14
ratios and pupil-staff ratios relating to the provision of 15
special education services for the budget year. 16
2.  A STATEMENT IDENTIFYING THE NUMBER OF ELIGIBLE 17
TEACHERS AS DEFINED IN SECTION 15-248.01 WHO ARE EMPLOYED BY 18
THE SCHOOL DISTRICT FOR THE CURRENT YEAR. 19
2.  3.  The prominent display of the average salary of
20
all teachers employed by the school district for the current 21
year.  The school district shall also prominently post this 22
information on its website home page separately from its 23
budget. 24
3.  4.  The prominent display of the average salary of 25
all teachers employed by the school district for the previous 26
year.  The school district shall also prominently post this 27
information on its website home page separately from its 28
budget. 29
4.  5.  The prominent display of the dollar increase in 30
the average salary of all teachers employed by the school 31
district for the current year.  The school district shall also 32
prominently post this information on its website home page 33
separately from its budget. 34
5.  6.  The prominent display of the percentage increase 35
in the average salary of all teachers employed by the school 36
district for the current year.  The school district shall also 37
prominently post this information on its website home page 38
separately from its budget. 39
F.  The special projects section shall include budgeted 40
expenditures for state special projects, including special 41
adult projects, career education, deficiencies correction fund 42
projects and new school facilities fund projects, such federal 43
special projects as ESEA title programs, vocational education 44
and title IV Indian education, and other special projects. 45

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G.  A school district shall not make expenditures for 1
campaign literature associated with school district or charter 2
school officials.  If the superintendent of public instruction 3
determines that a school district has violated this 4
subsection, the superintendent of public instruction may 5
withhold any portion of the school district's apportionment of 6
state aid. 7
H.  The budget format shall include an electronic format 8
that shall be submitted for each proposed, adopted and revised 9
budget. 10
I.  On or before November 30 of each year, the 11
department of education shall electronically submit to the 12
joint legislative budget committee and the governor's office 13
of strategic planning and budgeting a report that compiles the 14
information required by subsection E, paragraphs 2 through 15
5  6 of this section for all school districts statewide.
16
2.  The Secretary of State shall submit this proposition to the 17
voters at the next general election as provided by article IV, part 1, 18
section 1, Constitution of Arizona. 19