AZED ensures schools receive supplemental dollars to cover earlier shortfall

Action results from new state budget

PHOENIX – Arizona public schools will not face a funding shortfall as the Department of Education sent the necessary information to the state Treasurer this morning, ensuring that supplemental funding approved in the new state budget is sent to schools immediately.

Department Finance personnel began work on this process as soon as the budget was signed into law last week.

In the just-concluded 2025 state Fiscal Year, overall education funding faced a shortfall of just under $200 million due to several factors including a $45 million recalculation of Statewide Average Daily Membership, the $69 million settlement of the Qasimyar tax lawsuit, Empowerment Scholarship Account costs that were $52 million above legislative projections and $17 million less in revenue generated by the Qualifying Tax Rate Levy.

Prior to the passage of the new state budget last week, ADE provided districts and charters with approximately 63 percent of their June payment using funds available at that time. With the new budget, the entire amount due to schools will be paid in full.