AZ SB1237

Extends the budget correction period for a specific school district from 9 years (ending fiscal year 2019-2020) to 12 years (ending fiscal year 2022-2023) for correcting overexpenditures from fiscal years 2003-2004 through 2011-2012.

Maintains annual installments of $100,000 for fiscal year 2011-2012 and 12.5 percent of remaining required reduction for subsequent fiscal years through 2022-2023.

Requires the Department of Education to reduce state aid by $100,000 in fiscal year 2011-2012 and 25 percent of the remaining total annually over a four-year period from fiscal years 2012-2013 through 2015-2016.

Applies only to unified school districts located on Indian reservations that are in receivership, have average daily membership between 270-280 pupils in 2010-2011, and have total correction requirements between $500,000 and $1.1 million.

Requires accrued interest to be paid at a rate determined by the superintendent of public instruction in addition to the required repayment amounts.