A.R.S. § 15-185(D) Reduction of Equalization Assistance for Charter Schools Receiving Federal and State Monies Intended for Maintenance and Operations of the School for Fiscal Year 2025

A.R.S. § 15-185(D) requires the reduction of the base support level and equalization assistance by the amount of federal and state monies received by a charter school that are intended for the basic maintenance and operations of the school.

Monies intended for basic maintenance and operations (M&O) are those intended to support the educational program of the school. They do not include supplemental federal and state grants for specific purposes, such as ESEA Title I, IDEA Part B, and federal food program reimbursements. In addition, by statute, they do not include Federal Impact Aid (Title 8, P.L. 103-382) monies. The Auditor General will make the final determination of what monies are intended for basic maintenance and operations.

To assist the Arizona Department of Education (ADE) and the Auditor General in identifying the types of monies applicable to this reduction, charter holders who have monies to report must complete the form on page 2. An electronic copy of the form, including signature, must be sent by email to [email protected] on or before 4:30 p.m. on July 1, 2024. Charter holders with no monies to report should not complete or return the form.

Charter schools receiving Indian School Equalization Program (ISEP) funds must report data used in the calculation of state aid separately for the ISEP students and the non-ISEP students. This allows ADE to accurately apply A.R.S. § 15-185(D) only to the state aid generated by the ISEP-funded students. Students that are non-ISEP will generate monthly state aid for the charter because these students are not funded by the federal Indian School Equalization Program. ISEP students will not generate state aid.

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