AZ HB2401

Establishes a mandatory phase-down of desegregation funding for school districts with administrative agreements or previous court orders by reducing budgeted amounts by at least 15% annually for 5 years beginning in fiscal year 2017-2018, with funding elimination after fiscal year 2021-2022.

Requires school districts previously subject to court orders of desegregation to reduce budgeted desegregation expenses by at least 7% annually for 10 consecutive fiscal years beginning in fiscal year 2017-2018, with funding elimination after fiscal year 2026-2027.

Allows school districts declared in unitary status by federal court to continue desegregation funding reductions of at least 7% annually for 10 fiscal years following the unitary status declaration, then must cease all desegregation funding outside the revenue control limit.

Maintains existing requirements that desegregation expenses be educationally justifiable, result in equal education opportunities, promote systemic changes, comply with state academic standards, and be used to remediate proven discrimination as specified in court orders or administrative agreements.

Caps annual desegregation expenses at amounts budgeted in fiscal year 2008-2009 (effective fiscal year 2009-2010 onwards) and requires detailed reporting of desegregation activities, budgets, and effectiveness evaluations to the Arizona Department of Education.