Proposition 320 Information
What is Prop #320?
If passed, Proposition 320 would require certain Arizona school districts, including FUSD, to spend at least 60% of operational spending on direct instructional expenses, with a phased compliance process beginning in FY 2027-28.
Understanding How School Spending Is Coded
Proposition 320 focuses on how district expenditures are categorized and coded, not simply whether a service supports students.
Under Prop 320, only expenditures classified as “Instruction” would cound toward the proposed 60% percent.
- Operational spending: Day-to-day spending is grouped into seven categories including Instruction, Student Support, Instruction Support, Administration, Plant Operations, Food Services, and Transportation.
- Classroom spending is broader: The Auditor General’s “classroom spending” measure combines Instruction + Student Support + Instruction Support. Prop 320 references only Instruction.
- Important distinction: Some services that directly serve students are not coded as direct instruction under the current definitions.
What Counts as Direct Instruction?
The 60% requirement includes classroom instruction and certain related expenses, while many essential student and school services fall outside the direct-instruction code.
FUSD FY 2025 Spending
Important note: The proposed 60% requirement applies to Instruction only (50.9%), not FUSD’s 69.1% total classroom spending, which also includes Student Support and Instruction Support.
FUSD Potential Budget Impact
Using financial data from FY25, moving from 50.9% to 60% represents a 9.1%, or $9,796,347, shift in operational spending.
What This Means for FUSD
If Proposition 320 passes, FUSD would need to make a significant shift in how operational spending is allocated and coded over time while continuing to provide services to students, staff, and families.
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Operational spending is the money a school district spends on its day-to-day operations. The Arizona Auditor General groups operational spending into seven categories: Instruction, Student Support, Instruction Support, Administration, Plant Operations, Food Services, and Transportation.
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Under the current Auditor General definitions, instructional spending includes teachers, instructional assistants, substitute teachers, guest lecturers, instructional supplies and aids, field trips, athletics, cocurricular activities, and tuition.
Many other services that support students and schools are categorized separately, including counselors, psychologists, nurses, therapists, instructional coaches, teacher training, librarians, principals, front office staff, transportation, custodial and maintenance services, technology support, safety, food services, and more.
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The available legislative materials and public discussions do not identify a specific study or evidence-based benchmark explaining why 60% was chosen as the threshold or establishing that this percentage is tied to improved student outcomes.
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The proposition includes a phase-in process. Beginning in FY 2027-28, districts below 60% would be required to increase the share of operational spending devoted to direct instructional expenses by at least 0.5 percentage point per year until reaching compliance. The measure also allows increases above 0.5 percentage point to be credited toward certain future annual increases.
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The approximately $9.8 million figure is an estimate based on FUSD’s FY 2025 operational spending and the difference between 50.9% and 60%. The actual dollar amount would need to be calculated in the applicable future fiscal year using FUSD’s actual operational spending and the spending definitions in effect at that time.
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The Auditor General’s classroom spending measure combines three categories: Instruction + Student Support + Instruction Support. Proposition 320 specifically references the Instruction category.
For FY 2025, FUSD reported 69.1% total classroom spending, with 50.9% classified as Instruction.
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The Classroom Site Fund (CSF) is administered by the Arizona Department of Education and is funded through a state sales tax. Districts and charter schools may use CSF dollars for purposes including teacher compensation, class-size reduction, teacher development, assessment intervention, dropout prevention, and certain student support services.
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The withheld money remains in the Classroom Site Fund and is carried forward into the next statewide allocation rather than being returned directly to the district.
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No specific FUSD staffing, program, or service changes have been determined.
If Proposition 320 passes, FUSD would need to evaluate how to meet the phased spending requirement through future budget processes. Because many student services and school operations are categorized outside of direct instruction, any future decisions would depend on district budgets, expenditures, and implementation requirements at that time.
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If approved by voters, the new spending requirement would apply beginning in Fiscal Year 2027-28. The proposition establishes a process for districts below 60% to move toward compliance over time.