Statewide Ballot Measure Proposition 320 Information

School District Operational Spending Requirements

Proposition 320 is a statewide ballot measure. On November 3, 2026, Arizona voters will decide Proposition 320. This page provides factual information for educational purposes. Red Rock Elementary School District #5 does not advocate for or against Proposition 320.

✓ What We Know

  • RRSD5 would be subject to Proposition 320.
  • Covered districts would ultimately face a 60% direct instructional spending requirement.
  • The Auditor General will define the applicable spending terms.
  • Noncompliance can reduce Classroom Site Fund (CSF) allocations.
  • RRSD5’s FY2025 Instruction percentage was 60.5% under the current methodology.

‘?’ What We Don’t Yet Know

  • The final definition of “direct instructional expenses.”
  • Whether every expense currently classified as Instruction will qualify.
  • RRSD5’s actual percentage in the first compliance year.
  • What operational changes RRSD5 would make if changes become necessary.
  • Whether RRSD5 would ever incur a penalty.

→ What Happens Next?

November 3, 2026
Arizona voters decide Proposition 320.

If it does not pass:
Current laws governing school district budgets remain in place.

If it passes:
The Auditor General will define the applicable spending terms. Annual improvement requirements would begin in FY2027–28 for affected districts below 60%.

What Would Proposition 320 Do?

60%
Spending Requirement

Covered districts would ultimately be required to spend at least 60% of operational spending on direct instructional expenses.

RRSD5
Would Be Covered

Proposition 320’s requirements would apply to Red Rock Elementary School District.

0.5%
Annual Progress

Beginning in FY2027–28, districts below 60% would be required to increase their percentage by at least one-half of one percentage point per year.

AG
Definitions Still to Come

The Arizona Auditor General would define “direct instructional expenses” and “operational spending.”

What Does “Instruction” Mean Today?

Instruction

Currently Counted in the Instruction Percentage

The Auditor General’s current Instruction percentage includes only expenditures classified in the Instruction category.

Other Services Currently Outside the “Instruction” Category

  • Student Support
  • Instruction Support
  • Administration
  • Operations
  • Transportation
  • Food Service

These are accounting classifications. Services can be necessary to educate or serve students without currently being classified as Instruction.

The final definition is not yet known. Proposition 320 directs the Arizona Auditor General to define “direct instructional expenses.” RRSD5’s current Instruction percentage is being used only as a planning reference.

Where Is RRSD5 Today?

60.5%

FY2025 Instruction Spending

79%

Salaries & Benefits

97.80%

Classroom Site Fund

Important context: FY2025 is a historical reference point based on the Auditor General’s current methodology. It is not a future Proposition 320 compliance determination.

What Happens if a District Does Not Meet Its Requirement?

Proposition 320 establishes reductions to Classroom Site Fund allocations for consecutive years of noncompliance.

1 Year

25%
CSF Reduction

2 Years

50%
CSF Reduction

3 Years

75%
CSF Reduction

4+ Years

100%
CSF Reduction

Limited one-year waivers may be available under conditions established by the measure.