AZ HB2386

Amends Arizona Revised Statutes Section 15-943.01 regarding school district maintenance and operation budget balances and fund reporting requirements.

Maintains the existing 4% revenue control limit cap on budget balance carryforward amounts and clarifies that carryforward amounts are exempt from the revenue control limit.

Requires school district governing boards to submit a budget balance carryforward report to the joint legislative budget committee on or before August 15 each year, detailing ending fund balances and the original funding sources (state general fund, other state, federal, or local monies).

Allows school districts to transfer eligible budget balance amounts from the maintenance and operations fund to a school opening fund for expenses incurred when new schools begin operations, with remaining funds reverting after five years of no activity.