AZ HB2686

School districts that levy the qualifying tax rate and have no budget override in place may retain a portion of taxes that would normally be transmitted to the state general fund if they receive less funding per student than adjoining school districts with approved budget overrides.

The amount a school district may retain equals the lowest average per-pupil funding from adjoining districts' budget overrides, multiplied by the district's student count, or the amount that would go to the state—whichever is less.

Any remaining tax amounts levied under this section must still be transmitted to the state treasurer for deposit in the state general fund.

School districts may increase their budget limits by the additional funding they retain under this provision.

Technical amendments clarify language regarding tax levies and modernize terminology (e.g., "per cent" to "percent," "upon" to "on").