The FY2022 Statewide Recalculation has been completed and a list of results can be seen in the file linked below; Charters and Districts are listed alphabetically.

FY2022 Statewide Recalculation Adjustment

Positive SRC Adjustments will be included in the FY2023 September payment as a lump sum adjustment to FY2023 Equalization on the BSA64-1 report for September 2022.

Negative SRC Adjustments will be included in the FY2023 September payment as an adjustment to FY2023 Equalization on the BSA64-1 report for September 2022 and will be taken over the entire fiscal year; 3/12ths 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 9/30/2022.

With the hardship application, a minimum of 75% must be adjusted in FY23 and 25% will be adjusted in FY24. 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)

Note: This Hot Topic was revised on 7/14/2022 to clarify distribution of additional funds received after 6/27/2022. 

FY2022 Instructional Improvement Fund Payment 2 was distributed on June 29, 2022. This payment was based on actual Instructional Improvement Fund revenues received in the 3rd and 4th quarters as of 6/27/2022 ($11,482,504.02). Additional funds were received after 6/27/2022 and will be distributed in the first FY 2023 payment in the next few weeks.

FY2023 School Finance Fiscal Operations Updates

Base Level Amount 15-901

$4,775.27

          $384.62/8.76% total increase

          ARS 15-952 repealed / eliminates separate 1.25% increase

Transportation Support Level 15-945

2.2% increase to support per route mile

0.5 or fewer: $2.83

0.5-1.0: $2.32

More than 1.0: $2.83

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

4.6% increase to CAA

            Grades PSD-8: $1,985.58

            Grades 9-12: $2,314.16 

11.4% increase to DAA (amounts below for student count 600+)

            Grades PSD-8: $502.33

            Grades 9-12: $549.33

            HS Textbooks: $77.65

Qualifying Tax Rate

Unified School Districts and Common School Districts not within a High School District (Type 03): $3.4266

Common School Districts within High School District and High School Districts: $1.7133

Group B Add On

New add-on category "FRPL" with support level weight 0.018 for students who meet the eligibility requirements for free or reduced-price lunches, or an equivalent measure recognized for participating in the federal free and reduced-price lunch program.

Increased support level weight for DD,ED,MIID, SLD to 0.292 (previously 0.093)

State Aid Rollover 

$800,727,700 of the FY 2023 basic state aid appropriation to school districts is deferred until July 2023.

            This is $65M lower than FY2022

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

Classroom Site Fund 15-977

$708 per weighted pupil 

Prop 123 Additional Funding Laws 2015, 1^st Special Session, Chapter 1, Section 6

$75,000,000 (FY21-FY26)

Results-Based Funding

$68,600,000 allocated based on Spring 2021 AZ Merit Test Results notwithstanding 15-249.08

Certificates of Educational Convenience   Forms/Memos   15-825/ 15-976

School Finance is no longer accepting copies of certificates throughout the fiscal year. Counties will submit one electronic data sheet June 30, 2023 for all certificates issued the FY2022-2023 year.

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

Result Based Funding 15-249.08

Small School Capital Transportation 15-963

State equalization assistance property tax levy 15-994

Teacher Experience Index 15-941

Unorganized Territory 15-1001

School Finance has calculated payments for Average Daily Membership (ADM) in excess of 1.0 generated through participation in Arizona Online Instruction (AOI) in July 2020 in accordance with Laws 2020, Chapter 47. The payment amount for each district and charter and a summary of the payment calculation process are in the file below. These will be included in the June 30, 2022 Equalization payment as an adjustment on the BSA55. 

Summer AOI - July 2020 Payment

Please see the previous Hot Topic for information about the June 2020 payment and please contact [email protected] with any questions or concerns about this calculation.

Budget Considerations for Type 03 Districts

Basic state aid formula funding is calculated in accordance with statute based on the grade levels in which a school district or charter is approved to provide instruction. For most elementary school districts that are not within a high school district (type 03 districts), formula funding is only calculated for kindergarten through 8^th grade. High School students in type 03 districts, including SPED/ELL student counts, ​are funded based on the tuition amount charged by the attending district in accordance with ARS 15-824. 

Elementary districts that are not within a high school district should keep the following process in mind when closing out FY 2022 and preparing the FY 2023 budget:

• Budgeted tuition out amounts appear in the initial BUDG25 and BSA55 reports
• If a revised budget is submitted, tuition values in the BUDG25 and BSA55 reports will be updated
• Elementary districts that are not within a high school district (type 03 districts) should ensure that final tuition numbers are included in final budget revisions
  • Districts charging tuition are required to provide final tuition invoices by May 1st
• Type 03 districts are required to submit tuition invoices and final copies of the calculation worksheets for the previous fiscal year by October 31st
  • The final tuition amount supported by invoices will be used in the BUDG75 report and will result in an adjustment if the invoice amount does not match the amount in the final budget/BSA55
• If a district realizes that the tuition amount in the final budget or AFR is incorrect after statewide recalculation or after the AFR has been submitted, the tuition amount can be correct through the prior-year data correction process defined in ARS 15-915. Please click here for more information about prior-year data corrections.

Budgeting for the Tuition Out Adjustment:

The funded tuition out adjustment is based on districts' most recent successfully submitted budget as of the time of calculation. The chart below shows the specific locations in the budget file in which reporting by the district is required:

The values that a district enters for the required budgeted tuition amounts/transported counts will appear in the BUDG25 and BSA55 reports. If a revised budget is submitted, tuition values in the BUDG25 and BSA55 reports will be updated in the next calculation.

Reconciling Final Tuition Invoices to the Budget:

Districts can ensure that final tuition invoice amounts are reflected in final budget revisions by comparing the product of the tuition out ADM and tuition charge (tuition x ADM) in the budget to the total tuition invoice amount.

Correcting the Budget through A.R.S. 15-915:

If a district realizes that the tuition amount in the final budget or AFR is incorrect after statewide recalculation or after the AFR has been submitted, the tuition amount can be corrected through the 15-915 process; please see this Hot Topic for steps to request a 15-915 correction.

For questions regarding budgeting for Type 03 Tuition Out or Transporting High School Count, please send an email to [email protected]. For questions regarding your Type 03 Tuition Out adjustment or Transported High School Count on your BSA55, please email [email protected].

FY 2022 Results-Based Funding Payment 2 has been calculated and will distribute in May, 2022. Below is a file that will show the FY 2022 Results-Based Funding Total Amount, FY 2022 Results-Based Funding Payment 1 Amount, and FY 2022 Results-Based Funding Payment 2 Amount (Amounts being distributed in May, 2022-highlighted column). On the LEA-Level tab, Districts are listed by county, followed by charters listed alphabetically. A second tab will show the School-Level amounts. For questions regarding your payment, please contact [email protected]

FY 2022 Results-Based Funding Payment Amounts

Please see FY 2022 Results-Based Funding Payment 1 Hot Topic

FY 2022 Prop 123 Payment 2 has been calculated and will be distributed early May 2022. This completes the full distribution of $75,000,000.00. The file linked below will show the FY 2022 Prop 123 amounts per LEA. Districts are listed first by county, followed by charters alphabetically. The yellow highlighted column is FY 2022 Prop 123 Payment 2 and the most recent distribution, but the other columns indicate the full FY 2022 Prop 123 Amount for that LEA, as well as FY 2022 Prop 123 Payment 1 for that LEA. Please direct any questions to [email protected] 

FY 2022 Prop 123 Payment Amounts

School Finance has manually calculated initial add-on payments for gifted students in accordance with Laws 2021, Chapter 404 and the files below describe the calculation process and details for each district and charter. The additional funding for districts and charters will appear as adjustments to the base support level in BSA55 reports. Calculations will be updated one time after statewide recalculation in July to reflect final student data. 

FY 2022 Gifted Add-on Payment Summary

FY2022 Gifted Group B Funding.xlsx

Please refer to our September Hot Topic about reporting gifted students for more information.

In FY 2023, the gifted add-on weight is expected to be fully implemented in ADE student data and payment systems and will appear in the BSA55 report along with other add-on funding

FY2022 School Finance Fiscal Operations Updates

Base Level Amount 15-901

$4,390.65 ($4,445.53 w/1.25% Teacher Compensation 15-952)

$84.92/1.97% total increase

$52.10/ 1.21% inflation

$32.82/ Teacher Salary Increase ($50M previously funded one-time from Classroom Site Fund)

Transportation Support Level 15-945

1.21% inflation to support per route mile

0.5 or fewer: $2.77

0.5-1.0: $2.27

More than 1.0: $2.77

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

1.21% inflation to CAA

Grades PSD-8: $1,897.90

Grades 9-12: $2,211.97

No change to DAA per student count

Reduction to DAA and CAA has been eliminated in FY2022

Qualifying Tax Rate

Unified School Districts and Common School Districts not within a High School District (Type 03): $3.5388

Common School Districts within High School District and High School Districts: $1.7694

Group B Add On

New add-on category "G" with support level weight 0.007 - Means educational programs for gifted pupils who score at or above the ninety-seventh percentile, based on national norms, on a test adopted by the State Board of Education.

Increased support level weight for MD-SC, A-SC, SID-SC to 5.988 (previously 5.833)

Increased support level weight for DD,ED,MIID, SLD to 0.093 (previously 0.003)

State Aid Rollover 

$865,727,700 of the FY22 basic state aid appropriation to school districts is deferred until July 2022. 

This is $65M lower than FY2021

 Does not apply to charters or school districts with less than 2000 ADM.

Classroom Site Fund 15-977

$733 per weighted pupil 

Prop 123 Additional Funding Laws 2015, 1^st Special Session, Chapter 1, Section 6

$75,000,000 (FY21-FY26)

Results-Based Funding

$68,600,000 allocated based on Spring 2019 AZ Merit Test Results notwithstanding 15-249.08

Certificates of Educational Convenience   Forms/Memos   15-825/ 15-976

School Finance is no longer accepting copies of certificates throughout the fiscal year. Counties will submit one electronic data sheet June 30, 2022 for all certificates issued the FY2021-2022 year.

School Finance Fiscal Operations – Related Statutes

Additional Monies for Teacher Compensation (1.25% base level increase) 15-952

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

Result Based Funding 15-249.08

Small School Capital Transportation 15-963

State equalization assistance property tax levy 15-994

Teacher Experience Index 15-941

Unorganized Territory 15-1001

FY2021 Prop 123 Payment 2 has been calculated and was distributed June 7, 2021. This completes the full distribution of $75,000,000.00. The file linked below will show the FY2021 Prop 123 amounts per LEA. Districts are listed first by county, followed by charters alphabetically. The yellow highlighted column is FY21 Prop 123 Payment 2 and the most recent distribution, but the other columns indicate the full FY21 Prop 123 Amount for that LEA, as well as FY21 Prop 123 Payment 1 for that LEA.

FY2021 Prop 123 Amounts