AZ HB2441

Freezes the aggregate tax credit cap for school tuition organization (STO) contributions at the fiscal year 2016-2017 level beginning in fiscal year 2017-2018, eliminating the previous 20% annual increase.

Establishes a new teacher salary increases fund administered by the Department of Education, funded by the state general fund and distributed to school districts and charter schools based on average daily membership for classroom teacher salary increases.

Requires the Joint Legislative Budget Committee to estimate annually the tax revenue savings from freezing the STO credit cap and report that amount to legislative appropriations committees for appropriation to the teacher salary increases fund.

Appropriates $12.4 million in fiscal year 2017-2018, $27.3 million in fiscal year 2018-2019, and $45.1 million in fiscal year 2019-2020 to the teacher salary increases fund.

Requires a two-thirds affirmative vote in both houses of the legislature for enactment, and becomes effective immediately upon the governor's signature or upon a three-fourths vote override of a gubernatorial veto.