AZ SB1603

Amends Arizona law to modify the Arizona Performance Based Compensation System Task Force, requiring it to develop written recommendations on pay increase scales by December 31, 2011, to be submitted to the state board of education and all school district governing boards.

Requires school district governing boards to adopt performance based compensation systems beginning July 1, 2012, that must include statewide testing performance, academic progress measures, teacher and pupil evaluations, and dropout rates for high school teachers.

Specifies compensation allocation percentages for elementary teachers (50% based on statewide testing, 25% academic progress, 25% teacher/pupil evaluations) and high school teachers (40% statewide testing, 25% academic progress, 25% evaluations, 10% dropout rates).

Establishes that the classroom site fund monies shall be allocated with 40% for performance-based teacher compensation, 20% for teacher base salary increases, and 40% for maintenance and operations purposes including class size reduction, AIMS intervention programs, and dropout prevention.

Removes previous requirements for task force annual evaluations of school districts' performance based compensation systems and eliminates the requirement for teacher approval by 70% affirmative vote for system implementation.