This resolution proposes an amendment to Article IX, Section 21 of the Arizona Constitution, which pertains to expenditure limitations for school districts and community college districts. The amendment aims to update the methodology for determining these expenditure limits by adjusting the local revenue expenditures from the fiscal year 2024-2025 to account for changes in student population and the cost of living. The Economic Estimates Commission will be responsible for publishing these limits annually, and any expenditures exceeding these limits may only be authorized by a two-thirds vote of the legislature for a single fiscal year.

Additionally, the resolution outlines definitions for key terms such as "cost of living," "expenditure," and "local revenues," and specifies exclusions from local revenues. It mandates the establishment of a uniform reporting system for compliance and sets forth penalties for non-compliance. The proposed changes will take effect for fiscal years beginning after June 30, 2025, and the Secretary of State is tasked with submitting this proposition to voters at the next general election.