AZ HB2226

Establishes classroom site fund allocation requiring school districts and charter schools to distribute 40% for performance-based teacher compensation, 20% for base salary increases, and 40% for maintenance and operation purposes.

Requires school district governing boards to adopt a performance-based compensation system at public hearings that includes school performance metrics, academic progress measures, graduation rates, attendance rates, and teacher/administrator input.

Mandates performance pay distribution to the top 20% of teachers at each school based on performance standards adopted by the school district governing board.

Requires school districts and charter schools to submit annual reports by November 15 accounting for classroom site fund expenditures and summarizing results of funded programs.

Establishes specific funding stages for teacher performance pay ranging from 1% to 5.5% of the base level multiplied by prior year statewide weighted student count, contingent on legislative appropriation.