The $75 million additional funding provided by Arizona Senate Bill 1735 for FY 2026 will be distributed in two payments: $37.5 million by December 26, 2025, and $37.5 million by June 24, 2026. Individual school district and charter allocations are based on the share of statewide weighted attending Average Daily Membership (ADM). The second$37.5 million payment was calculated based on the same ADM that was used for the FY26 June Classroom Site Fund (CSF) payment.

The file linked below will show the payment amounts per entity. Districts are listed first by county, followed by charters alphabetically.

FY2026 Prop 123 Payment 2 Worksheet

Please contact the School Finance Payment Team at [email protected] for any questions.

The second payment of the Free Reduced Priced Lunch (FRPL), District Additional Assistance (DAA), and Charter Additional Assistance (CAA) will be appropriated on Wednesday, June 24th. These one-time supplemental payments were split into two payments- one in December and another in June. 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 payment amounts.

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

If you have any questions regarding the payment amount, please contact [email protected]. Thank you!

Free Reduced Priced Lunch (FRPL) Worksheet

District Additional Assistance (DAA) Worksheet

Charter Additional Assistance (CAA) Worksheet

Base Level Amount 15-901 & 15-943

2.00% / $102.27 total increase

• $5,215.53

Transportation Support Level 15-945

2.00% increase to support per route mile:

• 0.5 or fewer: $3.07
• 0.5-1.0: $2.52
• More than 1.0: $3.07

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

2.00% increase to CAA:

• Grades PSD-8: $2,174.54
• Grades 9-12: $2,534.38

Qualifying Tax Rate 41-1276

Unified School Districts and Common School Districts not within a High School District (Type 03): $3.0256
Common School Districts within High School District and High School Districts: $1.5128

State Aid Rollover 15-973

$800,727,700 of the FY 2027 basic state aid appropriation to school districts is deferred until July 2027.

This is equal to FY 2026.

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

Classroom Site Fund 15-977 & JLBC FY2027 Estimate

$883 per weighted pupil

($41 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

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

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

Average Daily Membership (ADM) is calculated using data submitted in the Arizona Education Data Standards (AzEDS) system. Data capture stores a static copy of ADM every month on the data capture deadline. ADM is the basis of state aid funding. Monthly state aid payments are a percentage of the annual equalization assistance less previous payments year-to-date.

Ensure data is reconciled and free of integrity errors prior to the monthly data capture dates. Reports are published at https://schoolfinancereports.azed.gov/.

The FY 2027 API is available from 6/1/2026 to 7/15/2027.

*Alternative to FY 2027 AzEDS data available for the first two payments only. Districts will be paid based on AzEDS prior-year ADM, which does not apply to Charters. Charters will be paid based on estimated counts submitted via the ADEConnect Charter Estimated Counts application.

To help districts and charters finalize their May 15th Expenditure Budget revisions, School Finance has put together updated preliminary annual FRPL, DAA, CAA, and Prop 123 one time funding apportionment amounts.

The data that was used for the FRPL, DAA, and CAA supplemental payment values come from the preliminary data for the FY26 May state aid payments using the AzEDS data capture date of April 15th, 2026. The data that was used for the Prop 123 supplemental payment values come from the preliminary data for the FY26 April Classroom Site Fund payment.
 
Please note that these values are not the final values that will be used for the second payment of these apportionments. Data based on the FY26 June state aid payments that use the 5/15/2026 data capture date will be used to finalize payment 2 for the FRPL, DAA, and CAA supplemental fundings. Data based on the FY26 June Classroom Site Fund payment will be used to finalize payment 2 for the Prop 123 supplemental funding. As a result, the finalized data is subject to change compared to the values provided in the spreadsheet.

Please see this spreadsheet for the updated preliminary values: FRPL, DAA, CAA, and Prop 123 One Time Funding Update 

The FY24 9th grade CTED funding adjustment has been calculated and included in the FY26 February state aid payment. This adjustment has been included in the Adjusted Base Support Level. Please see the attached spreadsheet for more information.

Please note that there will be a final adjustment to this funding based on final FY26 ADM during the SRC payment period.

If you have any questions regarding the funding adjustment, please contact the School Finance Payment Team at [email protected]. If you have any questions regarding the ADM, please open a Help Desk ticket with the School Finance Account Analyst Team.

Thank you!

FY24 CTED Funding Adjustment

The $75 million additional funding provided by Arizona Senate Bill 1735 for FY 2026 will be distributed in two payments: $37.5 million by December 26, 2025, and $37.5 million in June 2026. Individual school district and charter allocations are based on the share of statewide weighted attending Average Daily Membership (ADM). The first $37.5 million payment was calculated based on the same ADM that was used for the FY26 December Classroom Site Fund (CSF) payment.

The file linked below will show the first payment amount and total estimated FY 2026 Prop 123 per LEA. Districts are listed first by county, followed by charters alphabetically.

FY2026 Prop 123 Payment 1 Worksheet

Please contact the School Finance Payment Team at [email protected] for any questions.

The first payment of the Free Reduced Priced Lunch (FRPL), District Additional Assistance (DAA), and Charter Additional Assistance (CAA) will be appropriated by Friday, December 26th. These one-time supplemental payments will each be split into two payments- one in late December and another in June. 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 estimated annual payment amounts and the first payment amounts.

For school districts, these funds can be allocated to either the 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]. Thank you!

Free Reduced Priced Lunch (FRPL) Worksheet

District Additional Assistance (DAA) Worksheet

Charter Additional Asistance (CAA) Worksheet

School Finance has completed the FY25 Statewide Recalculation (SRC). Please view the FY25 SRC BSA-55 and corresponding BSA-64 reports on the School Finance website to review these adjustments.
 

The SRC adjustments include specific adjustments for CTEDs regarding 9th grade funding and continuing education (13th grade) funding. These two adjustments are included in the Adjustment Base Support Level (BSL) on the BSA-55 reports.
 

For more information regarding these, please review the following spreadsheets:

•   CTED 9th Grade Funding Adjustment for FY25 SRC
•   CTED Continuing Education (13th Grade) Funding Adjustment for FY25 SRC
   

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

Thank you!

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)