Page 7 - School Finance Manual 2023-24

Budget Formula Construction cont. 7

Maintenance and Operations Budget Equalization Formula

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

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 through the first 100 school days of the
calendar, minus withdrawals (A.R.S. §15-901). Addi-
tionally, 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 a 10%
increase in instructional time.

Arizona Association of School Business Officials | School Finance Summary Manual