SOUTHERN ARIZONA LEADERSHIP COUNCIL
School instructional spending requirement
A requirement for covered school districts to spend at least 60% of operational dollars on direct instruction, with a phase-in and funding penalties for districts that fall short.
A spending formula cannot tell the whole story.
We want education dollars to help students succeed. But a single spending formula cannot account for the different needs of Arizona’s students and school districts. We support financial transparency and accountability; we oppose a mandate that could limit local decisions and squeeze services students depend on.
Major Impacts
- A 60% spending target. Covered districts must devote at least 60% of operational spending to direct instruction, as defined by the Arizona Auditor General.
- Not every district is covered. The measure covers districts with at least 7,500 students anywhere in Arizona, or any district operating a school in a county with at least 500,000 residents, impacting Maricopa, Pima and Pinal counties.
- A phased path, then penalties. Below-target districts must increase their instructional share by at least one-half of one percent annually from FY2027-28, subject to credit rules.
How much funding could be at risk?
Classroom Site Fund allocations can fall by 25%, 50%, 75% or 100% as years of noncompliance accumulate. Waivers are possible.
SALC Recommends: VOTE NO on Proposition 320
Rejects the new mandate and its funding penalties.
Common Questions
Does opposing this mean opposing classroom investment?
No. SALC supports investing in student success. Our concern is that a fixed spending ratio can overlook transportation, support services, reading specialists and special education services that help students get to class and succeed.
Would districts have to reach 60% immediately?
No. Districts below the threshold would follow an annual improvement path beginning in FY2027–28. The measure also includes rules for crediting larger increases and handling declines.
Could a district lose its entire budget?
No. The penalties apply to its Classroom Site Fund allocation, not its entire budget. The potential reduction grows with the years of noncompliance.
Can districts receive a waiver?
Yes. The Superintendent of Public Instruction may waive a penalty for up to one year. Generally, no more than two waivers are allowed in ten years, with an exception for extraordinary circumstances.
Where would withheld money go?
According to the Legislative Council analysis, withheld money would go to districts meeting the requirements in the following school year.