The 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 2026-2027 based on 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 will require legislative approval through a two-thirds majority vote in both houses.

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 allows for adjustments to expenditure limits based on governmental function transfers or changes in district boundaries. The proposed changes will take effect for fiscal years beginning after June 30, 2027, and the Secretary of State is tasked with submitting this proposition to voters at the next general election.