Page 7 - School Finance Manual 2018-19

Budget Formula Construction cont. 7

Maintenance and Operations Budget

The Maintenance & Operations (M&O) Fund budget
is where most of the day-to-day expenditures take The Equalization Formula consists of the following:
place. Typical budgeted expenditures include: salaries, • Base Support Level (BSL) (A.R.S. §15-943) (CY ADM)
employee benefits, supplies, utilities, maintenance and • Transportation Support Level (TSL)/Transportation
repair, and miscellaneous expenditures not of a capital Revenue Control Limit (TRCL)
nature. • District Additional Assistance; (DAA) (PY ADM),
(A.R.S. §15-961)
Although the format and formula computation of the • Tuition
M&O Fund is very structured, the process of deter- • Consolidation/Unification Assistance
mining how the monies will be spent varies among
school districts. Typically, the budgeting process starts These budget limit components may be allocated to
months before the budget year begins. M&O or Capital.

The M&O Budget limit is based on a number of formulas
which are heavily dependent upon the Average Daily
Membership (ADM) (A.R.S. §15-901). The M&O Budget
is funded on current year (CY) ADM. ADM means the
average enrollment of fractional students and full-time
students, minus withdrawals (A.R.S. §15-901). A.R.S.
§15-902.04 provides an option to offer a 200-day
calendar and receive additional 5% of base level
funding. The modified calendar requires a10% increase
in instructional time.

Arizona Association of School Business Officials | School Finance Summary Manual