Why It Matters
Arizona voters will decide in November whether to override local school board authority and mandate how public districts allocate taxpayer funds. The measure targets instructional spending levels across the state’s largest districts.
What Happened
The Arizona legislature sent Proposition 320 to the ballot on June 13, concluding a late-night session at nearly 4 a.m. Republicans advanced five ballot referrals on party-line votes to bypass potential vetoes from Democratic Gov. Katie Hobbs. Ballot referrals do not require the governor’s signature.
Sen. Jake Hoffman, leader of the Arizona Freedom Caucus, sponsored the referral. The measure requires covered districts to increase direct instructional spending by 0.5 percentage points annually until reaching at least 60%. Non-compliant districts would see their Classroom Site Fund share decreased by 25% annually until it reaches zero.
The Arizona Auditor General will define “direct instructional spending” and evaluate compliance under Prop. 320. The mandate applies to 71 districts in Maricopa and Pima counties plus five larger rural districts with at least 7,500 students. These 76 districts educate nearly 83% of Arizona’s 845,000 public school students.
Republicans and conservative organizations support Prop. 320, arguing it will improve test scores and raise teacher pay without additional spending. Democrats and school advocacy groups oppose Prop. 320, arguing Arizona schools are chronically underfunded and local boards should decide hiring needs.
By the Numbers
0.5 percentage points — Annual required increase in direct instructional spending
60% — Minimum target for direct instructional spending
25% — Annual penalty reduction to Classroom Site Fund for non-compliance
76 — Total number of districts affected by the spending mandate
nearly 83% — Percentage of state public school students educated by affected districts
$1,156 — Per-pupil administrative spending in fiscal year 2020
$1,309 — Per-pupil administrative spending in fiscal year 2025
52% — Statewide instructional spending percentage in fiscal year 2025
Zoom Out
An Arizona Auditor General analysis found per-pupil administrative spending rose from $1,156 in fiscal year 2020 to $1,309 in fiscal year 2025. Adjusted for inflation, 2020 administrative spending is equivalent to $1,424 in 2025. Statewide instructional spending percentage fell to 52% in fiscal year 2025, down from 54.5% in fiscal year 2022.
Total school spending increased by $300 million despite the drop in instructional spending percentage. Per-pupil instructional spending rose from $6,253 in fiscal year 2023 to $6,541 in fiscal year 2025. Chris Thomas of the Goldwater Institute argued schools are expanding spending on support and administration rather than focusing on teaching.
What’s Next
Voters will decide on Prop. 320 in November. If approved, the Arizona Auditor General will implement compliance evaluations for the 76 affected districts. Districts must adjust budgets to meet the annual 0.5 percentage point increases toward the 60% instructional spending target.