The resolution SCR1041 authorizes school districts in Arizona to exceed the aggregate expenditure limitation (AEL) for the fiscal year 2025-2026. The AEL, established by the Arizona Constitution, restricts school districts' spending of local revenues to a level adjusted for inflation and enrollment based on FY 1980 spending, plus an additional 10 percent. This resolution allows 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, which can limit school districts' ability to allocate necessary funds for educational needs. The anticipated AEL for FY 2026 is set at approximately $7.08 billion, and the resolution is designed to ensure that school districts can meet their financial obligations without being hindered by this constitutional limitation. Importantly, there is no expected fiscal impact on the state General Fund as a result of this legislation.