Page 12 - School Finance Manual 2025-26

Budget Formula Construction cont. 12

District Additional Assistance Aggregate Spending Limit
In 1980, a new public school funding formula which
Just as there is a formula that determines the Revenue equalized funding across all public-school districts was
Control Limit, there is also a formula for Capital Outlay
in A.R.S. §15-961. The District Additional Assistance established. At this same time, Arizona voters approved
a limit on what public schools are allowed to spend in
(DAA) is an allocation and, like the RCL, may be allo-
cated (in whole or in part) to either the M&O or unre- a year. This established a limit on school districts both
at the individual and the aggregate. In recent years,
stricted capital fund. The DAA calculation is a multiplica-
tion of the unweighted actual student count (100th Day Arizona school district funding has moved to current
year funding, meaning funding is based on current year
Prior Year ADM) by the appropriate support levels. The
2025-2026 formula for districts of 600 or more students enrollment. However, the aggregate spending limit
is based on prior year enrollment. In 2018, the state
is as follows:
Legislature approved the continuation of the Class-
Grade Level Support Level room Site Fund (CSF) for an additional 20 years (begin-
ning in FY22). Since this was not sent to the voters
PSD $549.45 for an exemption from the limit, this action removed the
exemption which allowed these monies being excluded
K-8 $549.45 from the formula. With CSF funding now in the formula,
it is projected Arizona school districts will continue to
9-12 $600.86 exceed the limit. To make a permanent change to the
limit, the State Legislature would need to refer the issue
to voters, or the legislature can override this limit annu-
The sum of the above products is the DAA Base. If a
district’s calculated student count is greater than 5% ally by a super-majority vote. During the Regular Legis-
lative Session, the state legislature approved the over-
over the prior year student count, the DAA Base is
increased by 50% of the actual percentage increase in ride for FY26 & FY27 budgets.
the school district’s student count.

The final factor in the DAA formula is an increase for
textbooks for high school students. Prior to 1984, high
school students had to pay a rental fee for textbooks.
In 1984, the Legislature adopted a compulsory educa-
tion statute which requires students to be 16 or to have
completed the 10th grade prior to leaving school. In
conjunction with the compulsory school requirement,
the Legislature commenced the process of furnishing
textbooks free to high school students. In FY2025-
2026, the allowable amount for high school textbooks
is $84.93 per high school student count. It should be
noted that these provisions apply only to required text-
books and related printed materials. High Schools may
continue to charge a reasonable fee for other supple-
mentary materials.

Arizona Association of School Business Officials | School Finance Summary Manual