AZ SB1635

Repeals section 15-911, Arizona Revised Statutes, eliminating an existing school district expenditure limitation provision.

Amends section 15-1285 to exempt monies received by school districts and career technical education districts from budgetary, expenditure, or revenue control limits under Article IX, Section 21 of the Arizona Constitution.

Removes school district provisions from section 41-563 (Economic Estimates Commission expenditure limitation determinations), eliminating the aggregate expenditure limitation calculation for all school districts.

Removes language in sections 42-5010 and 42-5010.01 stating that transaction privilege tax rates are not considered local revenues for expenditure limitation purposes.

Requires passage of a constitutional amendment (Senate Concurrent Resolution) by voters at the next general election and a three-fourths legislative vote to become effective for fiscal years beginning after June 30, 2027.