A new law that limits state spending on vocational and technical education districts has a northern Arizona school district in a quandary: it’s governing board must decide what to do with money originally earmarked to join such a district.

The Flagstaff Unified School District (FUSD) in November was successful in asking voters to approve a 5-cent secondary property tax increase so it could join an existing joint technical education district. But the governor’s signature on H2418 (Laws 2005 Chapter 294) puts the district’s plan to expand its technical and vocational education in jeopardy, says Flagstaff Unified Governing Board President Chris Bavasi.

“We’re not exactly sure what we’re going to do,” he said. “We have a bit of a moral dilemma, as well as a practical dilemma.”

The school district went to voters with its plan to join the Coconino Association for Vocation Industry and Technology, or CAVIAT, joint technical education district. At the time, state statute provided a 3-to-1 match in funds to the joint technical district. The joint technical district, or JTED, typically keeps a percentage of the funds — usually an 80-20 split — with the remainder being disseminated to member school districts.

FUSD sought to join CAVIAT to boost career and technical education programs already in place. Mr. Bavasi said the matching funds from the state were instrumental in getting support of voters.

The proposal was overwhelmingly approved, with more than 69 percent of voters in favor.

Bill Prohibits New Districts

A component of H2418, however, forbids school districts from joining existing JTEDs. It also continues the prohibition against creation of new JTEDs.

In essence, instead of having upwards of $1.5 million to expand existing career and technical education programs, FUSD will now only have $320,000 to $340,000 at its disposal because of the loss of matching funds from the state.

Mr. Bavasi said the district can still collect the property tax money to expand current programs, though he said he was unsure what exactly could be done and whether the board has the right to use the money since the funds were approved with the expectation the state would match them.

Rep. Mark Anderson, R-18, sponsored the bill and said the halting of state matching funds for future JTED expansions was done because of a concern that school districts were exploiting an ambiguity in the law. Because no new JTEDs may be formed, school districts were increasingly seeking to join existing technical education districts, the expansion of which was paid for by the state.

“People were basically taking advantage of a loophole, so to speak, of how the funding was done,” he said.

Mr. Anderson said closing the loophole has less to do with the growing need for career and technical education and more to do with the rising cost to the state as the number of school districts joining JTEDs increased.

Another part of the legislation was to form a task force on JTEDs to investigate how to allow for more vocational training in Arizona schools without draining the state’s coffers.

“I’m a strong believer in the importance and the value of these programs,” Mr. Anderson said.

Mr. Bavasi said he and other governing board members hope the Legislature will reconsider JTED funding as soon as possible.

The FUSD Governing Board expects to decide what to do with the tax money at either a July 12 or August 9 meeting, officials said. —