Republican lawmakers want Arizona voters to force many of the state’s public schools to spend at least 60% of their budgets on instructional costs, like teacher pay.
A recent report by the Arizona Auditor General found that the state’s public school districts spend about 52.1% of their money on those instructional expenses. In addition to pay, that category covers other costs like benefits, aides and substitutes, classroom supplies, field trips and athletics.
That’s down from 52.6% the year prior and well below the 60% threshold long sought by some lawmakers.
That’s why Sen. Jake Hoffman (R-Queen Creek) said he is pushing SCR 1032, which would require public schools to meet that mark and punish districts that don’t make the grade.
Hoffman said it is needed, because districts aren’t making those investments on their own.
“Every single time when districts go out to the voters and they try to pass an override, they say, ‘smaller class sizes and better teacher pay,’” said Hoffman, a former school board member. “And what do teachers get? They get a marginal nugget from the bottom of the totem pole.”
According to the National Education Association, the average teacher salary in Arizona was $62,714 in 2024, which ranked 29th nationally. That was up from $60,275 the year prior, which ranked 32nd.
The average salary in 2025 is $65,613, according to the Auditor General.
Hoffman argued salaries should be rising at a faster rate as the state continues to spend more on education.
School funding is one of the state’s single largest expenditures. And, according to the Arizona Auditor General, overall school district budgets have continued to increase year over year, though that rate is slowing.
In 2023, school districts spent 8.5% more than the year before. In 2024, their total spending rose by 4.1% to $13.1 billion.
In 2025, districts spent a total of $13.4 billion, a 2.3% increase.
“And yet despite that funding, historic levels of funding, the amount of money going into classrooms goes down and the amount of money going to administrators goes up,” Hoffman said. “That is fundamentally backwards.”
But Democrats in the Arizona Senate, who all voted against SCR 1032, argued the measure is flawed and doesn’t account for the realities of operating a school district as Arizona continues to rank in the bottom half of states nationally for education funding.
In 2023, Arizona spent $11,297 per student, which ranked 46th nationally and was well below the $16,630 spent on average by other western states, according to the U.S. Census Bureau.
Sen. Mitzi Epstein (D-Tempe) pointed out that the “instructional spending” category doesn’t account for some student services outside of the classroom like counselors, speech pathologists, resource officers and social workers.
Epstein, also a former school board member, said decisions about how school districts spend their money are best left to the boards elected by local residents.
“I say the people of the school district should have the voice in how their money is spent and not this senator who wants to come in and say, ‘do it his way,’” she said.
Under SCR 1032, many school boards won’t have a choice.
If passed by voters, it would financially penalize districts that have at 7,500 students or are located in a county with at least 500,000 people if they don’t spend 60% of their funds on instruction.
Maricopa, Pima and Pinal are the only Arizona counties that meet that population threshold.
A school district that fails to comply for one year would lose 25% of its “Classroom Site Fund” allocation. That is sales tax money allocated to districts on a per student basis that can pay to reduce class sizes, increase teacher pay and benefits, fund certain student support services and help students meet state academic standards.
That penalty would double for two years of non-compliance and reach 75% by year three. A fourth year of non-compliance would result in a loss of all of a district’s classroom site funds. The bill allows the state schools Superintendent to issue two waivers to districts in a 10 year period.
“If you can’t pay your teachers well within six years, we think there should be a penalty,” Hoffman said.
Public schools received around $800 per student Classroom Site Fund in 2025. The Arizona Auditor General reported CSF monies are used to pay for $11,572, or 18%, of the average $65,613 teacher salary.
Those rules would only apply to public school districts, not charter schools or those receiving voucher dollars.
Epstein accused Hoffman of trying to weaken public schools, which are already experiencing enrollment declines, forcing school closures and other cost cutting moves.
“Why, oh why are they only cutting money from district schools? Charter schools will not be affected. ESAs will not be affected,” she said, referring to Empowerment Scholarship Accounts, the state’s school voucher program.
SCR 1032, which passed the Arizona Senate on a partyline vote, will go before voters on the November ballot if it passes out of the House of Representatives.
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