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Court strikes down Arizona law on school bond money

PHOENIX -- The Arizona Court of Appeals has ruled that a 2010 state law allowing school districts to spend unused bond money without asking voters is unconstitutional.

The unanimous decision by a three-judge panel Thursday is a win for the Goldwater Institute and a loss for the Cave Creek Unified School District.

The Goldwater Institute sued the district, which had $13 million left over from a $41 million bond approved in 2000.

The 2010 law allowed school districts to spend excess bond money for purposes not authorized by voters.

The Court of Appeals' decision said the Arizona Constitution permits school districts to change uses of bond issue money only with the permission of voters.

There's no word yet on whether the district will ask the Arizona Supreme Court to review the decision.

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