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 fiscal year 1980 spending, adjusted for inflation and enrollment, plus an additional 10%. This resolution allows school districts to utilize local revenues beyond this limit, contingent upon the approval of at least two-thirds of the members in both houses of the legislature.
The resolution is designed to provide flexibility for school districts in managing their finances, particularly in response to rising costs and changing enrollment figures. It is important to note that there is no anticipated fiscal impact on the state General Fund as a result of this legislation. The resolution will take effect only if it receives the necessary legislative approval, ensuring that local school districts can adequately address their funding needs for the specified fiscal year.