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Maintenance and Operations Funding by Source of Funding for Elementary and Secondary Education Per Student Per $1,000 of Per Capita Personal Income, Arizona State Government

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The general fund was the primary source of maintenance and operations funding for K-12 education, accounting for 54 percent of the total in fiscal year (FY) 2014. Local government property taxes also provided substantial revenues (36 percent of the total in FY 2014). The permanent fund, which consists of receipts from state land sales and leases, provided less than 1 percent of the funding. Proposition 301, which is funded by the 0.6 percentage point increase in the sales tax rate that was approved by voters in November 2000, contributed less than 8 percent. The federal government paid for 1 percent.

Measured per student relative to the ability of the state’s residents to pay, general fund appropriations for maintenance and operations in FY 2014 was 22 percent less than the FY 2007 peak. Proposition 301 monies are closely tied to the economic cycle and began to rebound in FY 2012 following three years of declines, but in FY 2014 still were 18 percent lower than in FY 2007. Federal support in the last three years was the lowest since records began in 2000. In contrast, local funding from the property tax was 17 percent higher than in FY 2007.