Page 13 - School Finance Manual 2025-26

Budget Formula Construction cont. 13

Additions to the Maintenance & A.R.S §15-481 allows for a special override election
Operations and Unrestricted Capital for capital outlay. For overrides approved by a vote of
Outlay Budget the qualified electors of the school district at an election
held from and after October 31, 1998, the period of the
After allocating the RCL and the District Additional additional increase prescribed in this subsection shall
Assistance (DAA) between the Maintenance & Op- not exceed seven years for any capital override elec-
erations Budget and the Unrestricted Capital Out- tion. This override may be allocated to the Unrestricted
lay Budget there are certain adjustments to be made Capital Outlay Fund only. Starting in 2010-11, capital
in arriving at the total budget for these funds. There outlay override election authorizations are limited to a
are numerous reasons for an increase, but most maximum of 10% of the Revenue Control Limit. There
districts will typically only have some of the adjustments is no phase down process for capital overrides.
noted below. Unless otherwise noted, the adjustment
may be made to both. Overrides are calculated on the RCL calculation using
prior year ADM multiplied by current year budget
factors. Overrides may not be increased for growth in
Budget Overrides student counts. Equalization Assistance is not provided
A.R.S. §15-481 allows a district to increase its budget for override amounts.
up to 15% of its Revenue Control Limit of the prior year
ADM if the voters of the district approve by election.
The voter authorization is given for up to seven years.
If the additional increase is for five years or more, the
percentage increase remains constant (up to 15%),
except during the next to last year when the percentage
decreases to two-thirds of the initial percentage and
during the last year when it decreases to one-third of
the initial percentage. A district can renew its autho-
rized percentage (up to 15%) prior to the phase out of
the existing override of an existing override by passing
another election. This override may only be allocated
to the M&O Fund.

A special override election for special programs may be
held. Five percent of the Revenue Control Limit attrib-
utable to the weighted count in PSD, kindergarten and
grades 1-12 can be requested under the provisions of Tuition Revenue
A.R.S. §15-482. However, when this provision is used Districts are allowed to budget an additional amount for
in combination with the use of proceeds from the sale or tuition and/or certificates of educational convenience
long-term lease of school property (A.R.S. §15-1102) (CEC) revenues. If this revenue was underestimated,
or with an override in accordance with A.R.S. §15-481, the district may increase the budget prior to May 15.
the total increase cannot exceed 15% of the Revenue If this revenue was overestimated, the district must
Control Limit. This special program override can be for reduce expenditures and the general budget limit based
the same duration as an M&O override. This override on actual revenues.
may be allocated to the M&O or Unrestricted Capital
Outlay Fund.

Arizona Association of School Business Officials | School Finance Summary Manual