AZ SCR1042

Proposes a constitutional amendment to remove school districts from the expenditure limitation provisions in Article IX, Section 21 of the Arizona Constitution, which currently caps spending of local revenues based on 1979-1980 levels adjusted for student population and cost of living.

Eliminates the aggregate expenditure limitation for all school districts that currently requires a two-thirds vote of both legislative chambers to exceed for a single fiscal year.

Removes school district-specific exclusions from "local revenues," including proceeds from property sales, capital levy amounts, self-supporting commercial services, and disaster repair funding.

Retains expenditure limitations for community college districts while requiring the legislature to establish separate expenditure limitations for school districts by law, with any excess spending requiring voter approval.

Would take effect for fiscal years beginning after June 30, 2027, if approved by voters at the next general election.