The resolution SCR1042 authorizes school districts in Arizona to exceed the aggregate expenditure limitation (AEL) for the fiscal year 2026-2027. The AEL, established by the Arizona Constitution, restricts local revenue expenditures for school districts to a level based on FY 1980 spending, adjusted for inflation and enrollment, plus an additional 10%. This resolution allows school districts to utilize local revenues beyond this limit, provided it receives approval from at least two-thirds of the members in both the Senate and the House of Representatives.

The resolution is significant as it addresses the financial constraints imposed by the AEL, enabling school districts to allocate more resources to meet their operational needs. The current AEL for FY 2026 is set at approximately $7.08 billion, and the resolution is expected to have no fiscal impact on the state General Fund. The measure will take effect only upon the required legislative approval, emphasizing the collaborative nature of budgetary decisions within the Arizona legislature.