AZ HB4041

School districts with ending cash balances exceeding budgeted amounts may adopt a budget above the general budget limit (up to 20% of the difference) without voter approval if more than 30% of third-grade pupils fail to demonstrate sufficient reading skills on statewide assessments.

Funds budgeted under this new provision must come from maintenance and operations fund and unrestricted capital outlay fund balances not included in the current year budget.

Districts using this budget increase authority must spend the money only on instructional purposes aligned with their K-3 reading improvement plan and to supplement (not replace) existing reading program funding.

The bill removes the July 1, 2022 deadline for schools to ensure at least one K-3 teacher, literacy coach, or literacy specialist per school has completed dyslexia training, making it an ongoing requirement.