Arizona Schools Face Funding Shortfall Amid Budget Delays
Arizona’s educational institutions are on the brink of a financial dilemma, as the absence of an approved state budget could result in schools receiving significantly reduced funding this month. The Arizona Department of Education has informed school districts and charter schools that there is a $200 million gap in Basic State Aid.
The shortfall arises from multiple contributors. A primary factor is a $69 million expense resulting from a legal case against Maricopa County, which required schools to reimburse taxpayers due to overtaxation as determined by a judge.
Additionally, unexpected enrollment adjustments from the previous year added $45 million to the deficit. The state’s school voucher program also exceeded budget forecasts by $52 million, adding to the financial strain. Further complicating the situation, property tax collections fell short by $17 million, accompanied by $10 million in unforeseen costs for technical education programs.
In a letter addressing these issues, the Department of Education stated that schools might receive “approximately 60% of the regular monthly payment” unless the Legislature enacts a new budget or supplemental funds by June 13.
Doug Nick, a spokesperson for the Department of Education, expressed optimism, stating, “We are awaiting the state budget and are confident that any shortfall will be covered.” The department remains in discussion with lawmakers, who are in budget negotiations with Democratic Gov. Katie Hobbs, to secure the necessary funds.
However, if a budget or supplemental appropriation is not approved, the Department may be unable to fulfill the complete payment for June, according to the letter. Lawmakers are not expected to reconvene for budget discussions until at least June 16.
Should only a partial payment be feasible on June 13, the department has assured schools that the remaining balance will be provided once additional funding is secured.
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