Arizona SCR 1035: expenditure limitation; local revenues; exception

Bill Text

SCR1035 - 571R - I Ver 

 REFERENCE TITLE: expenditure limitation; local revenues; exception

 State of Arizona

 Senate

 Fifty-seventh Legislature

 First Regular Session

 2025

 SCR 1035

 Introduced by 

 Senators 
 Diaz: Alston, Bravo, Sundareshan

A Concurrent 
Resolution

proposing an amendment to the 
Constitution of Arizona; amending article IX, section 21, Constitution of 
Arizona; relating to expenditure limitations. 

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it resolved by the Senate of the State of Arizona, the House 
of Representatives concurring:

1. Article IX, section 21, Constitution of Arizona, 
is proposed to be amended as follows if approved by the voters and on 
proclamation of the Governor:

START_STATUTE21. Expenditure limitations for school districts and community 
college districts

Section 21. (1) The economic estimates 
commission shall determine and publish prior to before April 1 of each year the expenditure limitation for the 
following fiscal year for each community college district. The 
expenditure limitations shall be determined by adjusting the amount of 
expenditures of local revenues for each such district for fiscal year 1979-1980 
to reflect the changes in the student population of each district and the cost 
of living. The governing board of any community college district shall 
not authorize expenditures of local revenues in excess of the limitation 
prescribed in this section, except in the manner provided by law.

(2) The economic estimates commission shall 
determine and publish prior to before 
May 1 of each year the aggregate expenditure limitation for all school 
districts for the following fiscal year.� The aggregate expenditure limitation 
shall be determined by adjusting the total amount of expenditures of local 
revenues for all school districts for fiscal year 1979-1980 to reflect 
the changes in student population in the school districts and the cost of 
living, and multiplying the result by 1.10. The aggregate expenditures 
of local revenues for all school districts shall not exceed the limitation 
prescribed in this section, except as provided in subsection (3) of this 
section.

(3) Expenditures in excess of the limitation 
determined pursuant to subsection (2) of this section may be authorized by the 
legislature for a single fiscal year, by concurrent resolution, upon 
on an affirmative vote of two-thirds of the membership of 
each house of the legislature.

(4) As used in for the purposes of this section:

(a) "Cost of living" means either:

(i) The price of goods and services as measured by 
the implicit price deflator for the gross national product or its successor as 
reported by the United States department of commerce, or its successor agency.

(ii) A different measure or index of the cost of 
living adopted at the direction of the legislature, by concurrent resolution, upon on an affirmative vote of two-thirds 
of the membership of each house of the legislature. Such measure or 
index shall apply for subsequent fiscal years, except it shall not apply for 
the fiscal year following the adoption of such measure or index if the measure 
or index is adopted after March 1 of the preceding fiscal year.

(b) "Expenditure" means any amounts 
budgeted to be paid from local revenues as prescribed by law.

(c) "Local revenues" includes all 
monies, revenues, funds, property and receipts of any kind whatsoever received 
by or for the account of a school district or community college district or any 
of its agencies, departments, offices, boards, commissions, authorities, 
councils and institutions, except:

(i) Any amounts or property received from the 
issuance or incurrence of bonds, or other lawful long-term obligations 
issued or incurred for a specific purpose, or any amounts or property collected 
or segregated to make payments or deposits required by a contract concerning 
such bonds or obligations. For the purpose purposes of this subdivision long-term obligations shall 
not include warrants issued in the ordinary course of operation or registered 
for payment by a political subdivision.

(ii) Any amounts or property received as payment 
of dividends and interest, or any gain on the sale or redemption of investment 
securities, the purchase of which is authorized by law.

(iii) Any amounts or property received by a school 
district or community college district in the capacity of trustee, custodian or 
agent.

(iv) Any amounts received as grants and aid of any 
type received from the federal government or any of its agencies except school 
assistance in federally affected areas.

(v) Any amounts or property received as grants, 
gifts, aid or contributions of any type except amounts received directly or 
indirectly in lieu of taxes received directly or indirectly from any private 
agency or organization, or any individual.

(vi) Any amounts received from the 
this state for the purpose of purchasing land, buildings 
or improvements or constructing