Arizona Intermediate Court Upholds Diversion of State's School Facilities Funds

On August 14, 2003, in Roosevelt School District v. State, Arizona's intermediate-level Court of Appeals overturned a lower-court decision that had declared "unconstitutional" the legislature's under funding of the Building Renewal Fund, part of the state's "Students FIRST" system for funding school facilities and equipment. Plaintiffs will appeal to the Arizona Supreme Court.

The current lawsuit was filed in 1999, soon after the legislature diverted funds from the Building Renewal Fund (BRF) for the first time. Since then, the legislature has continued to under fund the BRF, plaintiffs have amended their complaint, and the Maricopa County Superior Court has held that the legislative actions violate the Students FIRST statute and the state constitution, as explicated by the state supreme court between 1994 and 1998 in earlier Roosevelt litigation.

The BRF is intended to provide annual funding to school districts for major repairs and renovations to upgrade building systems and extend the useful life of school buildings. The Students FIRST statute set up a School Facilities Board which oversees the state's entire school facilities and equipment system, which includes the BRF, a New Schools Fund, and a Deficiency Corrections Fund.

Prepared August 26, 2003