PHOENIX — Arizonans will be voting on Proposition 320, a ballot measure that could require school districts to spend at least 60% of their operational spending on “direct instructional expenses.” Republican lawmakers referred the measure to the ballot, saying districts need to budget better. Meanwhile, public school advocates are sounding the alarm on how it could impact districts.
The measure leaves it to the Auditor General’s Office to define what “direct instructional expenses” actually means. However, according to the definition now, Arizona districts spend an average of 52.1% of their budget on instruction alone.
The latest Auditor General’s report on classroom spending shows that the 52.1% instruction spending falls under the 68% of classroom spending. The rest of the breakdown shows 9.9% for student support and 6% for instruction support. The report says 32% of operational funding is for nonclassroom spending, splitting up between administration, plant operations, food service and transportation.
Jimmy Arwood, the director of governmental relations for the Arizona School Boards Association, says if this measure passes, it could have a huge impact on school districts.
“When we're looking at these changes, these are not just small budget changes. These are massive implications for schools,” he said.
Arwood said that some districts will have to shift spending by tens of millions of dollars. The current definition for instructional spending includes teachers, aides, substitutes and more. However, counselors, nurses, speech pathologists, audiologists and social workers fall under student support. Librarians, special education directors, media specialists and others fall under instructional support.
“All these positions that help kids throughout the day and help them learn, think about things that parents ask for: school security. That's not included in direct instructional expenses. Those things would have to be cut in order to increase funding for direct instructional expenses,” Arwood said.
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However, Republican State Senator TJ Shope said nothing in the measure would mean cuts to state dollars to school districts unless they don't comply, if it's approved.
“There’s nothing about this measure that will increase or decrease the amount of money going to a local school district. What it will force that school district to do is proper budgeting to make sure those dollars are hitting the classroom,” he said.
Shope voted to refer the measure to the ballot, saying it was “it’s the right thing to do.” He added that being in the legislature, he’s heard time and time again of districts asking for more money.
“I do think it’s an issue of choices for elected school district board members to do. We’re done with taking the easy way out for them. They are elected by the people to do a job and to have proper budgeting to send those dollars to the classroom, as the voters of the state may or may not, at the end of the day, to determine in November,” Shope said.
According to the ballot measure, districts that don’t comply can lose funding. Arwood argues that will hurt teachers.
“This measure's requirement is extremely rigid. If a school district misses this by a single dollar, they get a cut to their Classroom Site Fund just like a school district that misses it by millions of dollars,” he said.
"If you're actually doing what you should be doing, as far as making sure the dollars go to the classroom, go to the teacher, instruction in the school, then everything will be just as it is today,” Shope said.
The rule would only apply to districts with at least 7,500 students or those in counties of 500,000 people or more. If voters pass it in November, it would take effect in the 2027-2028 school year.

