The FY2025 Statewide Recalculation has been completed. Please review your Statewide Recalculation adjustment through your FY2025 SRC BSA-64 report found on the School Finance Reports website.

Positive SRC Adjustments will be included in the FY2026 September payment as a lump sum adjustment to the FY2026 Equalization as shown on the BSA-64 report for the September 22, 2025 state aid payment.

Negative SRC Adjustments will be included in the FY2026 September payment as an adjustment to FY2026 Equalization as shown on the BSA-64 report for the September 22, 2025 state aid payment and will be taken over the entire fiscal year; 3/12ths will be taken in September and 1/12th each payment thereafter.

Pursuant to A.R.S § 15-915, hardship requests are available. Please complete the Hardship Application and submit to [email protected] by 9/10/2025.

With the hardship application, a minimum of 75% must be adjusted in FY25 and 25% will be adjusted in FY26. Adjustments will begin with the September payment. Please include all questions regarding these adjustments in your e-mail with the completed form attached. Exceptions for severe scenarios may be made.

Questions or concerns regarding the recalculated ADM/SPED should be submitted through a Help Desk School Finance Account Analyst Support Request.

Please see Guidelines for Requesting Prior Year Corrections to State Aid or Budget Capacity (ARS § 15-915)

Data Capture Reminder – 08/15/2025

Data in AzEDS will be used to calculate ADM for Payment 3.

Payment 3 will be based on data captured that is passing integrity and generating ADM in AzEDS. There is no option for districts to be paid on prior year data, or for charters to be paid on estimated counts.

Please ensure data is reconciled and free of integrity errors prior to the data capture date. Review the following reports in AzEDS:

• INTEG15 – ensure data is free and clear of membership ADM Integrity errors
• STUD10 – validate all students are listed in AzEDS
• ADM15 – ensure all students expected to generate funding are indicated as fundable
• ADM20, SPED20, and EL20 – ensure ADM amounts for each ADM type 

Important Note: FY26 Calendars need to be submitted, approved, and certified for ADM and funding to be generated.

FY 2026 Monthly Payment and AzEDS Processing Schedule

If additional assistance is needed, please submit a HelpDesk ticket.

Fiscal Year 2026 Truth in Taxation Report can be accessed here.

If you have any questions regarding this report, please contact the School Finance Budget Team at [email protected].

The FY 2026 K-3 Reading Budget and FY 2025 K-3 Reading AFR zip files have been posted to the LEA Budget Resources page of the School Finance website.
 

The completed files must be uploaded via the Budget System by October 1, 2025.
 

If you have any questions, please email School Finance at [email protected].
 

Thank you!

Base Level Amount 15-901

2.00%/$100.26 total increase

• $5,113.26

Transportation Support Level 15-945

2.07% increase to support per route mile

• 0.5 or fewer: $3.01
• 0.5-1.0: $2.47
• More than 1.0: $3.01

District Additional Assistance (DAA) & Charter Additional Assistance (CAA) 15-185 & 15-961

2.00% increase to CAA

• Grades PSD-8: $2,131.90
• Grades 9-12: $2,484.69

Qualifying Tax Rate 41-1276

Unified School Districts and Common School Districts not within a High School District (Type 03): $3.1212

Common School Districts within High School District and High School Districts: $1.5606

State Aid Rollover 15-973

$800,727,700 of the FY 2026 basic state aid appropriation to school districts is deferred until July 2026.

This is equal to FY 2025.

Does not apply to charters or school districts with less than 4,000 ADM.

Classroom Site Fund 15-977

$842 per weighted pupil

($50 Increase)

State Aid Supplement

One-time supplemental proportional funding for School Districts and Charter Districts based on weighted student counts. The additional amount received by each charter and district will increase budget capacity; districts can use their apportionment in either Maintenance & Operation or Unrestricted Capital Outlay funds.

• $75,000,000

One Time Supplement for CAA & DAA

One-time supplemental funding for Charter Additional Assistance (CAA) and District Additional Assistance (DAA) will be allocated on a proportional basis. The additional amount received by each charter and district will increase budget capacity; districts can use their apportionment in either Maintenance & Operation or Unrestricted Capital Outlay funds.

• CAA statewide amount: $5,858,000
• DAA statewide amount: $23,142,000

One Time Supplement for FRPL

One-time supplemental funding for Free and Reduced Priced Lunch (FRPL) will be allocated on a pro rata basis using FRPL weighted ADM. The amount apportioned to each charter and district will increase budget capacity; districts can use their apportionment in either Maintenance & Operation or Unrestricted Capital Outlay funds.

• FRPL statewide amount: $37,000,000.00

School Finance Fiscal Operations – Related Statutes

Arizona Department of Corrections 15-1372

Arizona Department of Juvenile Corrections 15-1371

Arizona Online Instruction 15-808

Certificates of Educational Convenience   15-825   15-976

Charter Equalization 15-185

Classroom Site Fund 15-977

College Credit by Examination Incentive Program 15-249.06

County Jails   15-913.01

County Juvenile Detention 15-913

County Small School 15-365

Definitions 15-901

Determination of equalization assistance payments from county and state funds 15-971

District Cash Advance of State Aid   15-973

District Equalization 15-943

Early Literacy Grants 15-249.09

Instructional Improvement Fund 15-979

Optional Two Hundred Days of Instruction (5% base level increase) 15-902.04

Small School Capital Transportation 15-963

Teacher Experience Index 15-941

Unorganized Territory 15-1001

School Finance has been notified that the FY25 Basic State Aid and Additional State Aid Rollover payment will be appropriated around July 8th. This payment is the statewide $800,727,700 amount that is required to be withheld from FY25 state aid payments for school districts that had greater than 4,000 ADM in the prior fiscal year.

If you have any questions, please contact the School Finance Payment Team at [email protected].

Thank you!

The second payment of the Free Reduced Priced Lunch (FRPL), District Additional Assistance (DAA), and Charter Additional Assistance (CAA) will be appropriated by Tuesday, July 1, 2025. Please view this Hot Topic for more information.

Please see the attached spreadsheets for each payment at the bottom of this Hot Topic for information about the annual payment amounts.

For school districts, these funds can be allocated to either Maintenance and Operations fund 001 (M&O) and/or Unrestricted Capital fund 610 (UNR).

If you have any questions regarding the payment amount, please contact [email protected]. If you have any questions regarding how to input these amounts on the Expenditure Budget form, please contact [email protected]. Thank you!

FRPL Worksheet

DAA Worksheet

CAA Worksheet

BUDG-25 reports for all school districts have been posted to the School Finance website.  FY 2025 June BUDG-25 reports have been calculated using the FY 2025 June BSA-55 information.

• District BUDG-25, BUDG-75, and BSA-55 reports are available to download from this School Finance website. For further instructions on how to navigate the website, please view this Hot Topic.

Please contact the Budget Team ([email protected]) if you have any questions.

Thank you!

The $75 million additional funding provided by Proposition 123 (Laws 2015, 1st Special Session, Chapter 1) for FY 2025 will be distributed in two payments: $37.5 million on December 6, 2024, and $37.5 million by June 30, 2025. Individual school district and charter allocations are based on the share of statewide weighted Average Daily Membership (ADM). The second $37.5 million payment was calculated based on the same ADM that was used for the FY25 June Classroom Site Fund payment. 

The file linked below will show the first, second, and total annual payment amounts for the FY 2025 Prop 123 payment per LEA. Districts are listed first by county, followed by charters alphabetically. 

District and Charter Prop 123

Please contact the School Finance Payment Team at [email protected] if you have any questions about this payment.

Due to the Arizona State budgetary shortfall that impacts the Arizona Department of Education, the fiscal year 2025 June state aid payment to eligible school districts has been split into two payments. The first payment is to be apportioned on Friday, June 20^th, 2025 and the second payment will be made after the fiscal year 2026 Arizona State budget is passed and signed.

The Department of Education was able to appropriate 63.00% of basic state aid funding for the first payment of the June state aid payment for eligible school districts and charters. Additionally, 100% of additional state aid was appropriated.

Please note that as a result of this funding being separated into two payments, the BSA-64 report on the School Finance Reports website will not reflect the individual payment amounts. The BSA-64 report will only show the sum of payment 1 and payment 2 amounts.

Please review this letter sent to school districts and charters on June 4^th for more information.

For any additional questions, please email [email protected] or call 602-542-5695, option 1.

Thank you!