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ArizonaHB 4163Fifty-seventh Legislature - Second Regular SessionHouseWALLET

K-12 education; 2026-2027

Sponsored By: Sponsor information unavailable

Signed by Governor

2026-2027ade (see also: department of education)appropriating moniescharter schoolschild sexual abuse and assault awareness and prevention pilot programdepartment of education (ade)education - title 15expenditure planfailing schools tutoring fundintentk-12 educationproperty proceeds fundstate aidstate government - title 41

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 7 benefits, 1 costs, 3 mixed.

One-time $852,200 for Alhambra schools

The Department of Education recalculates Alhambra Elementary’s FY2024–2025 aid and increases its state aid by $852,200 in FY2026–2027 due to a property valuation change. This section repeals after December 31, 2027.

Higher base funding per student

The state sets the per‑student base level at $4,914.71 for FY2023–2024, $5,013.00 for FY2024–2025, $5,113.26 for FY2025–2026, and $5,215.53 for FY2026–2027. Schools use these amounts in the funding formula.

More school transport funding and options

The state sets per‑route‑mile support at $3.01/$2.47/$3.01 for FY2025–2026 and $3.07/$2.52/$3.07 for FY2026–2027, applied over 180 or 200 days. It sets percentage multipliers for academic, CTE, vocational, and athletic trips by district type and mileage (for example, 0.15, 0.10, 0.25 at 0.5 miles or less). Districts may include motor‑vehicle route miles and riders in transport funding. If a district transports to the state schools for the deaf and blind, it may, on a parent’s request, transport a sensory‑impaired pupil to a closer charter school.

Tougher charter oversight and penalties

Sponsors may ask the state to withhold up to 10% of a charter’s monthly aid for noncompliance, after notice and a public meeting. Fingerprinting violations carry a $1,000 civil penalty per occurrence; first‑time issues are exempt if proof of a DPS application is shown within 48 hours. Charters must send proposed budgets and hearing notices to the state for posting at least 10 days before the hearing and post them on their own website.

Charter aid up; small-school boost tighter

Charter additional assistance rises to $2,174.54 per student (preschool with disabilities and K–8) and $2,534.38 (grades 9–12). Charter holders must combine ADM across their sites, and if combined ADM is over 600 due to listed ties, they cannot apply the small‑school weight to each site. Charters start with an estimated count and must update to actual ADM after the first 40, 100, or 200 days and before May 15. The Auditor General decides which federal or state monies count as basic maintenance and operations for base‑support reductions. Charters may also receive specified state distributions cited in law.

Child abuse prevention pilot in schools

The Department of Education runs a child sexual abuse prevention pilot. By July 1, 2027, schools apply and six are chosen for 2027–2028. Teachers get at least 4 hours of in‑person training. Parents are offered at least 3 hours of in‑person instruction and age‑appropriate materials. The curriculum is survivor‑informed, posted online, and a printed copy is mailed on request. Schools follow a uniform response policy and must notify parents within 24 hours of an incident. Parent participation is voluntary. The pilot ends December 31, 2028.

More uses for tutoring fund in 2026–27

For fiscal year 2026–2027, the Department of Education may use the Failing Schools Tutoring Fund for teacher and principal coaching, tracking school progress, and outreach so families know about tutoring. By September 1, 2026, the Department reports proposed spending from the fund to state leaders.

Lower school property tax rates and caps

Beginning tax year 2026, the law sets the school equalization qualifying tax rate at $1.5128 for high school districts and common districts that do not offer high school. It sets the rate at $3.0256 for unified districts and common districts that offer high school. This lowers the statutory rates used in truth-in-taxation and can slightly reduce school taxes on your property. The law also creates hard caps that limit how high these rates can go—$2.1265 for common or high school districts, $4.253 for unified districts, and $0.5123 for the county equalization rate—these caps take effect only if voters approve them at a statewide general election.

Charter tuition and sponsor counting rules

Charter schools cannot charge tuition to Arizona residents, levy local taxes, or issue bonds. They may admit nonresidents and charge nonresident tuition as allowed by law. School districts are not financially responsible for charters sponsored by state boards, universities, or community colleges. University and community college sponsors cannot count students who attend their sponsored charters in their own enrollment for state funding.

New charter admin and testing rules

Charter governing bodies must work with the approved provider for state‑approved board examinations. A charter may opt out of federal grants if federal law allows and its governing body finds the reporting too burdensome. A county school superintendent may provide district‑type services to a charter on request and may charge a cost‑recovery fee.

New fund for school property proceeds

The law creates the Property Proceeds Fund for money from school building and land sales or leases received on or after July 1, 2026. The legislature must appropriate the money; the State Treasurer invests it, and earnings stay in the fund. Before any sale, schools must get two independent appraisals, send the proposal to the Joint Committee on Capital Review, and follow sale rules. Fees for nonschool events, leases to schools, and leases under one year do not go into the fund. If money is appropriated back to schools, they must submit a spending plan for review.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • David Livingston

    28 • House

  • Julie Willoughby

    13 • House

  • Michael Carbone

    25 • House

  • Neal Carter

    15 • House

  • Steve Montenegro

    29 • House

Roll Call Votes

All Roll Calls

Yes: 31 • No: 5

House vote • 6/11/2026

THIRD: Passed

Yes: 23 • No: 5

House vote • 6/10/2026

C&P

Yes: 8 • No: 0

Actions Timeline

  1. Signed by Governor

    6/13/2026Governor

  2. Senate First Reading

    6/11/2026Senate

  3. Third Reading: Passed

    6/11/2026House

  4. Miscellaneous Motion: Passed

    6/11/2026House

  5. Third Reading: Passed

    6/11/2026House

  6. Committee of the Whole: do pass amended

    6/11/2026House

  7. House Second Reading

    6/10/2026House

  8. undefined: C&P

    6/10/2026House

  9. undefined: DP

    6/10/2026House

  10. House First Reading

    6/9/2026House

Bill Text

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