Student-Based Funding: How to Improve Transparency and Accountability in Arizona Public Education Finance

Posted on April 01, 2009 | Type: Policy Report | Author: Susan Aud
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Like most states, Arizona finances its public schools through the application of complex formulas, some of which depend on enrollment and some of which rely upon categories of spending. One result of this many-layered approach is an inability to easily determine how much money is tied to a single student in a single district or how school and district balance sheets are affected as students move around the state. In times like these, when education dollars are increasingly scarce, it is imperative that parents, educators, and policymakers understand what we are paying for and getting in return.

This analysis examines Arizona’s education funding formulas and offers suggestions for how they might be improved. Specifically, this examination finds:

  • Arizona school districts received an average of $9,563 in total revenue per pupil during the 2006-07 school year. That sum is drawn from numerous sources and formulas.
  • On average, $6,000 per student of education funding comes from the state and follows the student in the move to a new district. The state could give parents discretion over $5,000 in state funding with minimal impact to the state budget. 
  • Per-student funding at the district level would actually increase if 10 percent of parents took advantage of the $5,000 voucher to opt out of Arizona public schools.
  • Accountability and transparency in the financing of education would be improved by allowing tax dollars to follow students.

Read Student-Based Funding here

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