A.R.S. tit. 15 ch. 9 — Arizona Revised Statutes Title 15 Chapter 9 — School District Budgeting And Financial Assistance

15-901. Definitions A. In this title, unless the context otherwise requires: 1. "Average daily membership" means the total enrollment of fractional students and full-time students, minus withdrawals, of each school day through the first one hundred days or two hundred days in session, as applicable, for the current year. For the purposes of this paragraph, "withdrawals" means students who are formally withdrawn from schools or students who are absent for ten consecutive school days, except for excused absences identified by the department of education. For computation purposes, a student who is absent for nine or fewer consecutive school days, including the last day of the school year, is not a withdrawal and may not be subtracted from the total enrollment of fractional students and full-time students. For the purposes of this section, school districts and charter schools shall report student absence data to the department of education at least once every sixty days in session. For computation purposes, the effective date of withdrawal shall be retroactive to the last day of actual attendance of the student or excused absence. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subsection in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08. (a) "Fractional student" means: (i) For common schools, a preschool child who is enrolled in a program for preschool children with disabilities of at least three hundred sixty minutes each week that meets at least two hundred sixteen hours over the minimum number of days or a kindergarten student who is at least five years of age before January 1 of the school year and enrolled in a school kindergarten program that meets at least three hundred fifty-six hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section. In computing the average daily membership, preschool children with disabilities and kindergarten students shall be counted as one-half of a full-time student. For common schools, a part-time student is a student enrolled for less than the total time for a full-time student as defined in this section. A part-time common school student shall be counted as one-fourth, one-half or three-fourths of a full-time student if the student is enrolled in an instructional program that is at least one-fourth, one-half or three-fourths of the time a full-time student is enrolled as defined in subdivision (b) of this paragraph. The hours in which a student is scheduled to attend a common school during the regular school day shall be included in the calculation of the average daily membership for that student. (ii) For high schools, a part-time student who is enrolled in less than four subjects that count toward graduation as defined by the state board of education, each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty-three hours a year, or the equivalent, in a recognized high school. The average daily membership of a part-time high school student shall be 0.75 if the student is enrolled in an instructional program of three subjects that meet at least five hundred forty hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section. The average daily membership of a part-time high school student shall be 0.5 if the student is enrolled in an instructional program of two subjects that meet at least three hundred sixty hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section. The average daily membership of a part-time high school student shall be 0.25 if the student is enrolled in an instructional program of one subject that meets at least one hundred eighty hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section. The hours in which a student is scheduled to attend a high school during the regular school day shall be included in the calculation of the average daily membership for that student. (b) "Full-time student" means: (i) For common schools, a student who is at least six years of age before January 1 of a school year, who has not graduated from the highest grade taught in the school district and who is regularly enrolled in a course of study required by the state board of education. First, second and third grade students or ungraded group B children with disabilities who are at least five, but under six, years of age by September 1 must be enrolled in an instructional program that meets for a total of at least seven hundred twelve hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section. Fourth, fifth, sixth, seventh and eighth grade students must be enrolled in an instructional program that meets for a total of at least eight hundred ninety hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section, including the equivalent number of instructional hours for schools that operate on a one hundred forty-four-day school year. The hours in which a student is scheduled to attend a common school during the regular school day shall be included in the calculation of the average daily membership for that student. (ii) For high schools, a student who has not graduated from the highest grade taught in the school district and who is enrolled in at least an instructional program of four or more subjects that count toward graduation as defined by the state board of education, each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty-three hours a year, or the equivalent, that meets for a total of at least seven hundred twenty hours for a one hundred eighty-day school year, or the instructional hours prescribed in this section in a recognized high school. A full-time student shall not be counted more than once for computation of average daily membership. The average daily membership of a full-time high school student shall be 1.0 if the student is enrolled in at least four subjects that meet at least seven hundred twenty hours for a one hundred eighty-day school year, or the equivalent instructional hours prescribed in this section. The hours in which a student is scheduled to attend a high school during the regular school day shall be included in the calculation of the average daily membership for that student. (iii) If a child who has not reached five years of age before September 1 of the current school year is admitted to kindergarten and repeats kindergarten in the following school year, a school district or charter school is not eligible to receive basic state aid on behalf of that child during the child's second year of kindergarten. If a child who has not reached five years of age before September 1 of the current school year is admitted to kindergarten but does not remain enrolled, a school district or charter school may receive a portion of basic state aid on behalf of that child in the subsequent year. A school district or charter school may charge tuition for any child who is ineligible for basic state aid pursuant to this item. (iv) Except as otherwise provided by law, for a full-time high school student who is concurrently enrolled in two school districts or two charter schools, the average daily membership shall not exceed 1.0. (v) Except as otherwise provided by law, for any student who is concurrently enrolled in a school district and a charter school, the average daily membership shall be apportioned between the school district and the charter school and shall not exceed 1.0. The apportionment shall be based on the percentage of total time that the student is enrolled in or in attendance at the school district and the charter school. (vi) Except as otherwise provided by law, for any student who is concurrently enrolled, pursuant to section 15-808, in a school district and Arizona online instruction or a charter school and Arizona online instruction, the average daily membership shall be apportioned between the school district and Arizona online instruction or the charter school and Arizona online instruction and shall not exceed 1.0. The apportionment shall be based on the percentage of total time that the student is enrolled in or in attendance at the school district and Arizona online instruction or the charter school and Arizona online instruction. (vii) For homebound or hospitalized, a student receiving at least four hours of instruction per week. (c) "Regular school day" means the regularly scheduled class periods intended for instructional purposes. Instructional purposes may include core subjects, elective subjects, lunch, study halls, music instruction and other classes that advance the academic instruction of pupils. Instructional purposes do not include athletic practices or extracurricular clubs and activities. 2. "Budget year" means the fiscal year for which the school district is budgeting and that immediately follows the current year. 3. "Common school district" means a political subdivision of this state offering instruction to students in programs for preschool children with disabilities and kindergarten programs and either: (a) Grades one through eight. (b) Grades one through nine pursuant to section 15-447.01. 4. "Current year" means the fiscal year in which a school district is operating. 5. "Daily attendance" means: (a) For common schools, days in which a pupil: (i) Of a kindergarten program or ungraded, but not group B children with disabilities, who is at least five, but under six, years of age by September 1 attends at least three-quarters of the instructional time scheduled for the day. If the total instruction time scheduled for the year is at least three hundred fifty-six hours but is less than seven hundred twelve hours, such attendance shall be counted as one-half day of attendance. If the instructional time scheduled for the year is at least six hundred ninety-two hours, "daily attendance" means days in which a pupil attends at least one-half of the instructional time scheduled for the day. Such attendance shall be counted as one-half day of attendance. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08. (ii) Of the first, second or third grades attends more than three-quarters of the instructional time scheduled for the day. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08. (iii) Of the fourth, fifth or sixth grades attends more than three-quarters of the instructional time scheduled for the day, except as provided in section 15-797. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08. (iv) Of the seventh or eighth grades attends more than three-quarters of the instructional time scheduled for the day, except as provided in section 15-797. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08. (b) For common schools, the attendance of a pupil at three-quarters or less of the instructional time scheduled for the day shall be counted as follows, except as provided in section 15-797 and except that attendance for a fractional student shall not exceed the pupil's fractional membership: (i) If attendance for all pupils in the school is based on quarter days, the attendance of a pupil shall be counted as one-fourth of a day's attendance for each one-fourth of full-time instructional time attended. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08. (ii) If attendance for all pupils in the school is based on half days, the attendance of at least three-quarters of the instructional time scheduled for the day shall be counted as a full day's attendance and attendance at a minimum of one-half but less than three-quarters of the instructional time scheduled for the day equals one-half day of attendance. A school district or charter school may satisfy any of the time and hours requirements prescribed in this item in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08. (c) For common schools, the attendance of a preschool child with disabilities shall be counted as one-fourth day's attendance for each thirty-six minutes of attendance, except as provided in paragraph 1, subdivision (a), item (i) of this subsection for children with disabilities up to a maximum of three hundred sixty minutes each week. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subdivision in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08. (d) For high schools, the attendance of a pupil shall not be counted as a full day unless the pupil is actually and physically in attendance and enrolled in and carrying four subjects, each of which, if taught each school day for the minimum number of days required in a school year, would meet a minimum of one hundred twenty-three hours a year, or the equivalent, that count toward graduation in a recognized high school except as provided in section 15-797 and subdivision (e) of this paragraph. Attendance of a pupil carrying less than the load prescribed shall be prorated. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subdivision in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08. (e) For high schools, the attendance of a pupil may be counted as one-fourth of a day's attendance for each sixty minutes of instructional time in a subject that counts toward graduation, except that attendance for a pupil shall not exceed the pupil's full or fractional membership. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subdivision in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08. (f) For homebound or hospitalized, a full day of attendance may be counted for each day during a week in which the student receives at least four hours of instruction. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subdivision in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08. (g) For school districts that maintain school for an approved year-round school year operation, attendance shall be based on a computation, as prescribed by the superintendent of public instruction, of the one hundred eighty days' equivalency or two hundred days' equivalency, as applicable, of instructional time as approved by the superintendent of public instruction during which each pupil is enrolled. A school district or charter school may satisfy any of the time and hours requirements prescribed in this subdivision in any manner prescribed in the school district's or charter school's instructional time model adopted under section 15-901.08. 6. "Daily route mileage" means the sum of: (a) The total number of miles driven daily by all buses of a school district while transporting eligible students from their residence to the school of attendance and from the school of attendance to their residence on scheduled routes approved by the superintendent of public instruction. (b) The total number of miles driven daily on routes approved by the superintendent of public instruction for which a private party, a political subdivision or a common or a contract carrier is reimbursed for bringing an eligible student from the place of the student's residence to a school transportation pickup point or to the school of attendance and from the school transportation scheduled return point or from the school of attendance to the student's residence. Daily route mileage includes the total number of miles necessary to drive to transport eligible students from and to their residence as provided in this paragraph. 7. "District support level" means the base support level plus the transportation support level. 8. "Eligible students" means: (a) Students who are transported by or for a school district and who qualify as full-time students or fractional students, except students for whom transportation is paid by another school district or a county school superintendent, and: (i) For common school students, whose place of actual residence within the school district is more than one mile from the school facility of attendance or students who are admitted pursuant to section 15-816.01 and who meet the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) for free or reduced-price lunches and whose actual place of residence outside the school district boundaries is more than one mile from the school facility of attendance. (ii) For high school students, whose place of actual residence within the school district is more than one and one-half miles from the school facility of attendance or students who are admitted pursuant to section 15-816.01 and who meet the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) for free or reduced-price lunches and whose actual place of residence outside the school district boundaries is more than one and one-half miles from the school facility of attendance. (b) Kindergarten students, for purposes of computing the number of eligible students under subdivision (a), item (i) of this paragraph, shall be counted as full-time students, notwithstanding any other provision of law. (c) Children with disabilities, as defined by section 15-761, who are transported by or for the school district or who are admitted pursuant to chapter 8, article 1.1 of this title and who qualify as full-time students or fractional students regardless of location or residence within the school district or children with disabilities whose transportation is required by the pupil's individualized education program. (d) Students whose residence is outside the school district and who are transported within the school district on the same basis as students who reside in the school district. 9. "Enrolled" or "enrollment" means that a pupil is currently registered in the school district. 10. "GDP price deflator" means the average of the four implicit price deflators for the gross domestic product reported by the United States department of commerce for the four quarters of the calendar year. 11. "High school district" means a political subdivision of this state offering instruction to students for grades nine through twelve or that portion of the budget of a common school district that is allocated to teaching high school subjects with permission of the state board of education. 12. "Instructional hours" or "instructional time" means hours or time spent pursuant to an instructional time model adopted under section 15-901.08. 13. "Revenue control limit" means the base revenue control limit plus the transportation revenue control limit. 14. "Student count" means average daily membership as prescribed in this subsection for the fiscal year before the current year, except that for the purpose of budget preparation student count means average daily membership as prescribed in this subsection for the current year. 15. "Submit electronically" means submitted in a format and in a manner prescribed by the department of education. 16. "Total bus mileage" means the total number of miles driven by all buses of a school district during the school year. 17. "Total students transported" means all eligible students transported from their place of residence to a school transportation pickup point or to the school of attendance and from the school of attendance or from the school transportation scheduled return point to their place of residence. 18. "Unified school district" means a political subdivision of this state offering instruction to students in programs for preschool children with disabilities and kindergarten programs and grades one through twelve. B. In this title, unless the context otherwise requires: 1. "Base" means the revenue level per student count specified by the legislature. 2. "Base level" means the following amounts plus the percentage increase to the base level as provided in section 15-902.04: (a) For fiscal year 2024-2025, $5,013.00. (b) For fiscal year 2025-2026, $5,113.26. (c) For fiscal year 2026-2027, $5,215.53. 3. "Base revenue control limit" means the base revenue control limit computed as provided in section 15-944. 4. "Base support level" means the base support level as provided in section 15-943. 5. "Certified teacher" means a person who is certified as a teacher pursuant to the rules adopted by the state board of education, who renders direct and personal services to schoolchildren in the form of instruction related to the school district's educational course of study and who is paid from the maintenance and operation section of the budget. 6. "DD" means programs for children with developmental delays who are at least three years of age but under ten years of age. A preschool child who is categorized under this paragraph is not eligible to receive funding pursuant to section 15-943, paragraph 2, subdivision (b). 7. "ED, MIID, SLD, SLI and OHI" means programs for children with emotional disabilities, mild intellectual disabilities, a specific learning disability, a speech/language impairment and other health impairments. A preschool child who is categorized as SLI under this paragraph is not eligible to receive funding pursuant to section 15-943, paragraph 2, subdivision (b). 8. "ED-P" means programs for children with emotional disabilities who are enrolled in private special education programs as prescribed in section 15-765, subsection D, paragraph 1 or in an intensive school district program as provided in section 15-765, subsection D, paragraph 2. 9. "ELL" means English learners who do not speak English or whose native language is not English, who are not currently able to perform ordinary classroom work in English and who are enrolled in an English language education program pursuant to sections 15-751, 15-752 and 15-753. 10. "FRPL" means students who meet the eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) for free or reduced-price lunches, or an equivalent measure recognized for participating in the federal free and reduced-price lunch program and other school programs dependent on a poverty measure, including the community eligibility provision for which free and reduced-price lunch data is not available. 11. "Full-time equivalent certified teacher" or "FTE certified teacher" means for a certified teacher the following: (a) If employed full-time as defined in section 15-501, 1.00. (b) If employed less than full-time, multiply 1.00 by the percentage of a full school day, or its equivalent, or a full class load, or its equivalent, for which the teacher is employed as determined by the governing board. 12. "G" means educational programs for gifted pupils who score at or above the ninety-seventh percentile, based on national norms, on a test adopted by the state board of education. 13. "Group A" means educational programs for career exploration, a specific learning disability, an emotional disability, a mild intellectual disability, remedial education, a speech/language impairment, developmental delay, homebound pupils, bilingual pupils and pupils with other health impairments. 14. "Group B" means educational improvements for pupils in kindergarten programs and grades one through three, educational programs for autism, a hearing impairment, a moderate intellectual disability, multiple disabilities, multiple disabilities with severe sensory impairment, orthopedic impairments, preschool severe delay, a severe intellectual disability and emotional disabilities for school age pupils enrolled in private special education programs or in school district programs for children with severe disabilities or visual impairment, English learners enrolled in a program to promote English language proficiency pursuant to section 15-752 and students who meet the eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) for free or reduced-price lunches, or an equivalent measure recognized for participating in the federal free and reduced-price lunch program and other school programs dependent on a poverty measure, including the community eligibility provision for which free and reduced-price lunch data is not available. 15. "HI" means programs for pupils with hearing impairment. 16. "Homebound" or "hospitalized" means a pupil who is capable of profiting from academic instruction but is unable to attend school due to illness, disease, accident or other health conditions, who has been examined by a competent medical doctor and who is certified by that doctor as being unable to attend regular classes for a period of at least three school months or a pupil who is capable of profiting from academic instruction but is unable to attend school regularly due to chronic or acute health problems, who has been examined by a competent medical doctor and who is certified by that doctor as being unable to attend regular classes for intermittent periods of time totaling three school months during a school year. The medical certification shall state the general medical condition, such as illness, disease or chronic health condition, that is the reason that the pupil is unable to attend school. Homebound or hospitalized includes a student who is unable to attend school for a period of less than three months due to a pregnancy if a competent medical doctor, after an examination, certifies that the student is unable to attend regular classes due to risk to the pregnancy or to the student's health. 17. "K-3" means kindergarten programs and grades one through three. 18. "K-3 reading" means reading programs for pupils in kindergarten programs and grades one, two and three. 19. "MD-R, A-R and SID-R" means resource programs for pupils with multiple disabilities, autism and severe intellectual disability. 20. "MD-SC, A-SC and SID-SC" means self-contained programs for pupils with multiple disabilities, autism and severe intellectual disability. 21. "MD-SSI" means a program for pupils with multiple disabilities with severe sensory impairment. 22. "MOID" means programs for pupils with moderate intellectual disability. 23. "OI-R" means a resource program for pupils with orthopedic impairments. 24. "OI-SC" means a self-contained program for pupils with orthopedic impairments. 25. "PSD" means preschool programs for children with disabilities as provided in section 15-771. 26. "P-SD" means programs for children who meet the definition of preschool severe delay as provided in section 15-771. 27. "Qualifying tax rate" means the qualifying tax rate specified in section 15-971 applied to the assessed valuation used for primary property taxes. 28. "Small isolated school district" means a school district that meets all of the following: (a) Has a student count of fewer than six hundred in kindergarten programs and grades one through eight or grades nine through twelve. (b) Contains no school that is fewer than thirty miles by the most reasonable route from another school, or, if road conditions and terrain make the driving slow or hazardous, fifteen miles from another school that teaches one or more of the same grades and is operated by another school district in this state. (c) Is designated as a small isolated school district by the superintendent of public instruction. 29. "Small school district" means a school district that meets all of the following: (a) Has a student count of fewer than six hundred in kindergarten programs and grades one through eight or grades nine through twelve. (b) Contains at least one school that is fewer than thirty miles by the most reasonable route from another school that teaches one or more of the same grades and is operated by another school district in this state. (c) Is designated as a small school district by the superintendent of public instruction. 30. "Transportation revenue control limit" means the transportation revenue control limit computed as prescribed in section 15-946. 31. "Transportation support level" means the support level for pupil transportation operating expenses as provided in section 15-945. 32. "VI" means programs for pupils with visual impairments. 15-901.01. Inflation adjustments (Caution: 1998 Prop. 105 applies) If approved by the qualified electors voting at a statewide general election, for fiscal years 2001-2002 through 2005-2006, the legislature shall increase the base level or other components of the revenue control limit by two per cent. For fiscal year 2006-2007 and each fiscal year thereafter, the legislature shall increase the base level or other components of the revenue control limit by a minimum growth rate of either two per cent or the change in the GDP price deflator, as defined in section 41-563, from the second preceding calendar year to the calendar year immediately preceding the budget year, whichever is less, except that the base level shall never be reduced below the base level established for fiscal year 2001-2002. 15-901.02. Voluntary full-day kindergarten instruction; requirements; academic quality A. A school district or charter school may offer full-day kindergarten instruction to pupils who meet the enrollment requirements for kindergarten programs. Parents of pupils who meet the enrollment requirements for voluntary kindergarten programs in a school district or charter school that offers full-day kindergarten instruction may choose either half-day kindergarten instruction or full-day kindergarten instruction. If a charter school chooses to offer voluntary full-day kindergarten instruction, any necessary capital monies needed to implement voluntary full-day kindergarten instruction shall be provided by the charter school. B. If a school district or charter school offers more than two and one-half hours of voluntary tuition-free kindergarten instruction during a school day to pupils who are under six years of age, the instruction shall meet all of the following requirements: 1. Meet or exceed the academic standards for kindergarten instruction prescribed by the state board of education and incorporate play as an instructional strategy. 2. Be academically meaningful. 3. Provide active learning enrichment. C. A parent of a kindergarten pupil may choose either half-day kindergarten instruction or full-day kindergarten instruction pursuant to section 15-703. 15-901.03. Transfers; review Notwithstanding section 35-173, subsection C, any transfer to or from the amount appropriated for basic state aid entitlement, additional state aid to schools, the special education fund or other state aid to districts line items shall require review by the joint legislative budget committee. 15-901.05. Application of school finance changes To the extent permitted by the Constitution of Arizona, unless otherwise specified by law, the department shall apply any change to state law that occurs after July 29, 2010 and that modifies or impacts the school finance formulas prescribed in this title, including the base support level, the base revenue control limit, the transportation support level, the transportation revenue control limit, the district additional assistance, the general budget limit or the unrestricted budget limit, on the effective date of that change to state law so that it applies to the entire fiscal year in which the change became effective. 15-901.06. Dropout recovery programs; written learning plan; requirements; annual report; definitions A. Each alternative school within a school district and each alternative charter school that provides instruction to high school students may offer a dropout recovery program for eligible students. An online course provider as defined in section 15-808 or an online school as defined in section 15-808 that provides Arizona online instruction under section 15-808 may not provide a dropout recovery program. B. The state board of education shall prescribe standards and achievement testing requirements for dropout recovery programs that attempt to ensure that the programs are compatible with public school education goals and requirements. The standards shall require dropout recovery programs to do all of the following: 1. Provide curricula aligned to the academic standards adopted by the state board of education. The curricula may be delivered online. An alternative school within a school district or an alternative charter school with a unique entity number may provide a dropout recovery program pursuant to this section if the school is not also an online course provider as defined in section 15-808 or an online school as defined in section 15-808 that provides Arizona online instruction under section 15-808. 2. Provide standardized tests required by federal and state law. 3. Make available appropriate and sufficient supports for students, including tutoring, career counseling and college counseling. 4. Comply with federal and state laws governing students with disabilities. 5. Meet state requirements for high school graduation. C. Each eligible student who is enrolled in a dropout recovery program shall have a written learning plan developed by the student's assigned mentor. The written learning plan shall include the following elements: 1. The start date and anticipated end date of the plan. 2. Courses to be completed by the student during the academic year. 3. Whether courses will be taken sequentially or concurrently. 4. State competency exams to be taken, as necessary. 5. Expectations for satisfactory monthly progress. 6. Expectations for contact with the student's assigned mentor. 7. Whether the student will receive wraparound services or support services, including social work coaching sessions, trauma coaching sessions or food and housing security coaching sessions, that count toward the student's satisfactory monthly progress. Services provided pursuant to this paragraph may count toward a student's satisfactory monthly progress only during the student's initial entry into a dropout recovery program and may not count during any subsequent entries into the same school's dropout recovery program. D. The monthly participation in a dropout recovery program shall be recorded on or before the tenth school day of each month and shall be reported to the department of education at the same time as other data required pursuant to section 15-1042. Monthly participation calculations shall include: 1. Newly enrolled students who have a written learning plan on file on or before the first school day of the previous month. 2. Students who met the expectations for satisfactory monthly progress in the previous month. 3. Students who did not meet the expectations for satisfactory monthly progress in the previous month but did meet the expectations in the month before the previous month. 4. Students who met expectations for program reentry in the revised written learning plan in the previous month. E. Because dropout recovery students are not expected to regularly attend classes at the school district or charter school facilities, standard procedures for recording student attendance cannot be effectively applied to those students. For students participating in a dropout recovery program, an eligible student shall be counted as being in attendance in the school's average daily attendance calculations pursuant to subsection F of this section if the student meets one of the following conditions: 1. Is in the first month of enrollment in the program and completes the program orientation during that month. 2. Is enrolled in teacher-facilitated synchronous or asynchronous courses and meets the expectations for satisfactory monthly progress for the current or previous month. A student who does not meet expectations for monthly progress for two or more consecutive months shall not be counted as being in attendance until the student meets the expectations for program reentry. 3. Meets the expectations for program reentry in the revised written learning plan. F. If a student is enrolled in a school district or charter school other than the school district or charter school that participates in the dropout recovery program and also participates in a dropout recovery program in the same fiscal year, the average daily membership as prescribed in section 15-901, subsection A, paragraph 1, subdivisions (a) and (b) for that student in the school district or charter school and in a dropout recovery program shall not exceed 1.0, except that if the student is enrolled in a dropout recovery program and a career technical education district, the average daily membership provisions of section 15-393 apply. If the student is enrolled in both a school district or charter school and a dropout recovery program in the same fiscal year and the sum of the average daily membership and average daily attendance for that student is greater than 1.0 or the amount prescribed in section 15-393 if the student is enrolled in a career technical education district, the sum shall be reduced to 1.0 or to the amount specified in section 15-393 if the student is enrolled in a career technical education district and shall be apportioned between the school district or charter school and the career technical education district, if applicable, and the dropout recovery program based on the proportionate shares of average daily membership in the school district or charter school and the average daily attendance in the dropout recovery program. The uniform system of financial records shall include guidelines for apportioning student enrollment and attendance as provided in this subsection. Students in a dropout recovery program do not incur absences for purposes of this subsection and may generate average daily attendance for attendance during any hour of the day, during any day of the week and at any time between July 1 and June 30 of each fiscal year. The average daily attendance of a student who participates in a dropout recovery program shall not exceed 1.0 or the amount prescribed in section 15-393 if the student is enrolled in a career technical education district and shall be calculated by fulfilling the requirements of subsection E of this section. Average daily membership shall not be calculated on the one hundredth day of instruction for the purposes of this section. G. Notwithstanding section 15-901, subsection A, paragraph 1, the average daily membership for students who are enrolled in a dropout recovery program shall equal the average daily attendance of the students. H. School districts and charter schools shall be responsible for tuition charges and fees related to student participation in a dropout recovery program, including course materials and access to technology for use with online courses. I. School districts and charter schools may contract with an educational management organization to provide dropout recovery program services. If contracting with an educational management organization, the school district or charter school shall ensure that all of the following requirements are met: 1. The educational management organization is accredited by a regional accrediting body. 2. Teachers provided by the educational management organization hold a current teaching license from any state and a valid Arizona fingerprint clearance card pursuant to section 15-534, and teachers of core subjects are highly qualified in the subjects to which they are assigned. J. The department of education shall create and maintain a list of alternative schools within a school district and alternative charter schools that offer a dropout recovery program and the educational management organization, if any, that provides dropout recovery program services to each school. The department shall update the list described in this subsection on a quarterly basis. K. An alternative school within a school district or an alternative charter school may apply to operate a dropout recovery program by submitting an application to the department of education in the form and manner prescribed by the department. Notwithstanding subsection L of this section, if the school district or alternative charter school contracts with an educational management organization to provide the dropout recovery program, the school district or alternative charter school shall identify the educational management organization in the application required under this subsection. The department shall determine whether the alternative school or alternative charter school meets the criteria prescribed in this section and notify the school district or alternative charter school of the determination within thirty days after receiving the application. The school district or alternative charter school may respond to and appeal the department's determination within thirty days. L. An alternative school within a school district or an alternative charter school that offers a dropout recovery program pursuant to this section shall notify the department of education within thirty days after entering or terminating a contract with an educational management organization for dropout recovery program services. M. Dropout recovery programs are subject to the accountability provisions of section 15-241. N. Entities that are contracted to provide dropout recovery programs may conduct outreach to encourage students who are not currently enrolled in a school district or charter school in this state to return to school. Entities that are contracted to provide dropout recovery programs shall not conduct advertising or marketing campaigns directed at students who are currently enrolled in a school district or charter school, or undertake any other activity that encourages students who are currently enrolled in a school district or charter school to stop attending school in order to qualify for a dropout recovery program. O. On or before July 31 of each year, each school and educational management organization that provides a dropout recovery program shall report to the department of education the following information in the form and manner prescribed by the department: 1. The total number of students who satisfy both of the following requirements during the fiscal year: (a) Are continuously enrolled in the dropout recovery program for at least eighty school days. (b) Earn at least four and one-half credits or earn all the remaining credits that the student needs for graduation. 2. The total number of students who are enrolled in the dropout recovery program on or before January 31 during the fiscal year and who either: (a) Graduated before January 31. (b) Met all of the following requirements on January 31: (i) Were enrolled in the dropout recovery program. (ii) Needed three or fewer credits to satisfy the graduation requirements prescribed by the state board of education. (iii) Needed one or fewer credits in mathematics to satisfy the graduation requirements prescribed by the state board of education. 3. The percentage of students described in paragraph 2 of this subsection who graduated during the fiscal year. 4. The percentage of students described in paragraph 2 of this subsection who earned at least one college and career readiness indicator point. P. On or before November 1 of each year, the department of education shall compile the information received under subsection O of this section in a report, shall submit the report to the governor, the president of the senate and the speaker of the house of representatives and shall post the report on the department's website. Q. For the purposes of this section: 1. "Eligible student" means a student who is not currently enrolled in a school district or charter school and who has been withdrawn from a school district or charter school for at least ten days, unless the school district or alternative charter school determines that the student is unable to participate in other school district or charter school programs. 2. "Satisfactory monthly progress": (a) Means an amount of progress that is measurable on a monthly basis and that, if continued for twelve months, would result in the same amount of academic credit being awarded to the student as would be awarded to a student in a traditional education program who completes a full school year. (b) Includes a lesser required amount of progress for the first two months that the student participates in the program so that wraparound services or support services provided pursuant to the student's written learning plan may be established. 15-901.07. Concurrent coursework; calculation of average daily membership; definition A. A school district or a charter school may include students enrolled in concurrent coursework for the purposes of calculating average daily membership if the school district has received approval from the state board of education or the charter school has received approval from its sponsor to offer concurrent coursework and all of the following apply: 1. A student earns at least three semester hours of credit per semester in the community college or university course. 2. A student is awarded academic credit by the school district or charter school for the concurrent coursework pursuant to section 15-701.01. 3. The concurrent coursework is at a higher level than the course taught at the school district or charter school in grades nine through twelve. 4. A student who is enrolled in concurrent coursework also attends at least one course offered at the school district or charter school per semester. 5. The concurrent coursework is applicable to an established community college academic degree or certificate program that is transferable to a university under the jurisdiction of the Arizona board of regents. Concurrent coursework that is applicable to a community college occupational degree or certificate program may be transferable to a university under the jurisdiction of the Arizona board of regents. 6. The school district or charter school pays the community college or university for the tuition cost of the concurrent coursework or reimburses the student for the tuition cost of the concurrent coursework. B. A course at a community college or university of three semester hours of credit or more is considered a subject for the purposes of meeting the definition of full-time student prescribed in section 15-901. A course at a community college or university of three semester hours of credit or more is not required to meet one hundred twenty-three hours a year, or the equivalent, to be considered a subject. C. Instructional hours provided by a community college or university to a student in concurrent coursework shall be included in the calculation of the average daily membership for that student pursuant to section 15-901. D. Average daily membership for classes at a community college or university shall be based on the community college or university credits earned by the student. For each community college or university course for which three credits are earned, one-eighth of an average daily membership shall be generated. Except as otherwise provided by law, for a full-time high school student who attends concurrent enrollment courses pursuant to this section, the average daily membership may not exceed 1.0. E. For the purposes of this section, "concurrent coursework" means courses at a community college under the jurisdiction of a community college district in this state or at a university under the jurisdiction of the Arizona board of regents in the required or elective subjects that satisfy high school graduation requirements pursuant to section 15-701.01. 15-901.08. School year; school month; instructional time models; requirements; funding; definition A. Except as may be otherwise authorized by the superintendent of public instruction to accommodate a year-round school operation or as otherwise prescribed under an instructional time model adopted pursuant to this section, the school year begins July 1 and ends June 30, and a school month is twenty school days or four weeks of five days each. B. Notwithstanding any other law, for the purposes of meeting the instructional time and instructional hours requirements prescribed in sections 15-797, 15-808 and 15-901, a school district governing board, after at least two public hearings in the school district, or a charter school governing body for one or more schools may adopt any instructional time models as prescribed in this section to meet the minimum annual instructional time and instructional hours requirements prescribed in sections 15-797, 15-808 and 15-901 for all of the following purposes: 1. Determining average daily membership. 2. Determining daily attendance. 3. Determining student count. 4. Any other purpose relating to instructional time or instructional hours prescribed in section 15-797, 15-808 or 15-901. C. Notwithstanding any other law, all of the following apply to an instructional time model adopted by a school district governing board or charter school governing body for one or more schools pursuant to this section: 1. Students shall receive the minimum instructional time or instructional hours required under section 15-797, 15-808 or 15-901, as applicable, for the full school year in any day, week and course length increments adopted by the school district governing board or charter school governing body. 2. A school may deliver the annual required instructional time or instructional hours to students through any combination of the following: (a) Direct instruction. (b) Project-based learning. (c) Independent learning. (d) Mastery-based learning, which may be delivered in a blended classroom serving multiple grade levels or providing blended grade level content. 3. A school may define instructional time and instructional hours to include any combination of the following: (a) In-person instruction. (b) Remote instruction, subject to all of the following: (i) During school year 2021-2022, a school may provide up to fifty percent of its total instructional time in a remote setting without any impact to the school's funding. Beginning in school year 2022-2023 and each school year thereafter, a school may provide up to forty percent of its total instructional time in a remote setting without any impact to the school's funding. (ii) If a school provides instructional time in a remote setting beyond the threshold prescribed in item (i) of this subdivision in any school year, the department of education shall calculate funding as prescribed in subsection D of this section. (iii) The department of education shall annually provide a list of schools that provide more than the allowed instructional time in a remote setting to the state board of education. The state board of education shall determine whether the school must apply to become an online school under section 15-808. (iv) The department of education shall annually provide a list of charter schools that provide more than the allowed instructional time in a remote setting to the state board for charter schools. The state board for charter schools shall determine whether the charter school must apply to become an online school under section 15-808. 4. A school may reallocate any minimum instructional time or instructional hours per course required under section 15-797, 15-808 or 15-901 or any other statute to other courses on a per-student basis so that students are able to spend more of their required instructional time or instructional hours on courses of greater depth or courses that require additional learning time to catch up to grade level or to stay on pace. 5. A school may stagger learning times and schedules for students and may offer courses and other instructional time options on the weekend or in the evenings so that all students are not expected to attend or complete their school day or instructional time at the same time. 6. A school shall align its attendance policies to reflect the instructional time and instructional hours policies prescribed under the adopted instructional time model. D. If a school provides remote instructional time beyond the threshold prescribed in subsection C, paragraph 3, subdivision (b), item (i) of this section in any school year, the department of education shall calculate funding as follows: 1. Calculate the total percentage of instructional time provided by the school in a remote setting. 2. Subtract the allowable threshold prescribed in subsection C, paragraph 3, subdivision (b), item (i) of this section from the amount calculated pursuant to paragraph 1 of this subsection. 3. Fund the percentage of the base support level equal to the percentage calculated in paragraph 2 of this subsection at ninety-five percent of the base support level that would otherwise be calculated for the school. E. For the purposes of this section, "mastery-based learning" means a system in which students advance to higher levels of learning when they demonstrate mastery of concepts and skills regardless of time, place or pace. 15-902.01. Student revenue loss phasedown A. A school district that loses at least five hundred students from its student count as a result of the formation of a joint unified school district pursuant to section 15-450 and that does not receive tuition for those students for the budget year may increase its base support level for the budget year by an amount as follows: 1. For the first year of the loss, six hundred fifty thousand dollars. 2. For the second year following the loss, six hundred thousand dollars. 3. For the third year following the loss, five hundred thousand dollars. 4. For the fourth year following the loss, three hundred thousand dollars. 5. For the fifth year following the loss, one hundred thousand dollars. B. In addition to any adjustment for tuition loss received pursuant to section 15-954, a union high school district that loses at least fifty students from its tuition count as a result of the formation of a joint unified school district pursuant to section 15-450 and that does not receive tuition for those students for the budget year may increase its base support level for the budget year by an amount as follows: 1. For the first year of the loss, one hundred thousand dollars. 2. If during the second year following the initial loss of students the union high school district loses an additional fifty students as a result of the formation of a joint unified school district pursuant to section 15-450 and does not receive tuition for those students for the budget year, two hundred thousand dollars. 3. If during the third year following the initial loss of students the union high school district loses an additional fifty students beyond the second year's additional loss as a result of the formation of a joint unified school district pursuant to section 15-450 and does not receive tuition for those students for the budget year, three hundred twenty-five thousand dollars. 4. If the union high school district was eligible for the three hundred twenty-five thousand dollars as provided in paragraph 3 of this subsection, for the fourth year following the initial loss of students, two hundred thousand dollars. 5. If the union high school district was eligible for the two hundred thousand dollars as provided in paragraph 4 of this subsection, for the fifth year following the initial loss of students, one hundred thousand dollars. 15-902.03. Procedures for determining average daily membership A. The department of education shall recompute and aggregate average daily membership for the previous fiscal year no later than August 30. The department shall inform school districts and charter schools of their final average daily membership no later than September 15. No later than November 1 of each year, state aid calculations for all school districts and charter schools for the previous fiscal year must be finalized and the budget limits for school districts must be adjusted. Any future adjustments in student counts, if discovered by the school district or charter school, shall be made pursuant to section 15-915. B. Notwithstanding subsection A of this section, school districts may continue to make budget adjustments pursuant to section 15-905 and make corrections pursuant to section 15-915. 15-902.04. Optional two hundred days of instruction; definition A. A school district, charter holder or private residential facility that elects to provide at least two hundred days of instruction may increase its base level by five percent. A school district, charter holder or private residential facility that elects to provide at least two hundred days of instruction shall obtain approval from the department of education before the beginning of the fiscal year that the school district, charter holder or private residential facility is planning on offering instruction for at least two hundred days. The school district, charter holder or private residential facility shall ensure that the last day of instruction in any school year occurs before June 30. The school district, charter school or private residential facility shall increase its annual instructional hours by at least ten percent in order to receive the base level increase prescribed in this section. B. For the purposes of this section, "private residential facility" has the same meaning prescribed in section 15-1181. 15-903. Budget format; prohibited expenditures; annual report A. The superintendent of public instruction in conjunction with the auditor general shall prepare and prescribe a budget format to be used by all school districts. B. The budget format shall be designed to allow all school districts to plan and provide in detail for using available monies. The budget format shall contain distinct sections for, but need not be limited to, maintenance and operation, debt service, special projects, capital outlay, adjacent ways and classroom site fund. The maintenance and operation section shall include, but need not be limited to, separate subsections for regular education programs, special education programs and operational exp