Page 12 - School Finance Manual 2021-22

Budget Formula Construction cont. 12

District Additional Assistance Cuts to the District Additional Assistance (DAA) formula
were started by the state in FY2010. The cuts started
Just as there is a formula that determines the Revenue at $144 million in the first year and increased to total of
Control Limit, there is also a formula for Capital Outlay $352 million in FY 2016 and remained at $352 million
in A.R.S. §15-961. The District Additional Assistance until FY2018. The state reduced the cuts to DAA over
(DAA) is an allocation and, like the RCL, may be allo- the next five years until DAA was fully restored starting
cated (in whole or in part) to either the M&O or unre- in FY2021-2022. Also, in FY 2019 and future years DAA
stricted capital fund. The DAA calculation is a multiplica- cuts were eliminated for school districts with fewer than
tion of the unweighted actual student count (100th Day 1100 students. Reduction of the cuts are as follows:
Prior Year ADM) by the appropriate support levels. The
2021-2022 formula for districts of 600 or more students DAA Cuts FY2019-2022
is as follows:
Grade Level Support Level Year Cuts to DAA for School Districts
with 1100 or More Students
PSD $450.76
FY2019 $257,469,900
K-8 $450.76
FY2020 $128,734,900
9-12 $492.94
FY2021 $64,367,400
The sum of the above products is the DAA Base. If a
district’s student count is greater than 5% over the prior FY2022 DAA fully restored
year student count, the DAA Base is increased by 50%
of the actual percentage increase in the school district’s
student count.
Student Count of Less Than 600
The final factor in the DAA formula is an increase for For small and isolated districts, the basic formula per
textbooks for high school students. Prior to 1984, high student dollar amounts for K-8 and 9-12 are multiplied
school students had to pay a rental fee for textbooks. by the corresponding weights as determined from the
In 1984, the Legislature adopted a compulsory educa- chart in the Small Districts Not Designated as Isolated
tion statute which requires students to be 16 or to have table on page 8 of this document and prescribed by
completed the 10th grade prior to leaving school. In A.R.S. §15-943 (for small school districts).
conjunction with the compulsory school requirement,
the Legislature commenced the process of furnishing
textbooks free to high school students. In FY2021-
2022, the allowable amount for high school textbooks
is $69.68 per high school student count. It should be
noted that these provisions apply only to required text-
books and related printed materials. School districts
may continue to charge a reasonable rental fee for
other supplementary materials.

Arizona Association of School Business Officials | School Finance Summary Manual