Dysart Unified District staff explains how the district is funded and the difference between overrides and bonds

A staff member for Dysart Unified District explained how the district is funded, saying most revenue comes from state and local sources and that voter-approved overrides and bonds are the primary ways the district can ask for additional local property-tax revenue.

"School finance can be an intricate topic. It's a web of complicated formulas and funding sources that becomes more complex as you learn more about it," the staff member said, giving an overview of funding streams and spending categories.

The presenter said Dysart receives funding from three main sources: the state of Arizona, the federal government and other local revenues, including property taxes. The presenter said approximately 90% of the districts funding comes from state and local sources and about 10% comes from the federal government. Federal funds, the presenter added, are typically restricted to specific programs such as special education and Title I services and cannot be reallocated to other uses.

The presenter described two budget "pots" used by the district: maintenance and operations (M&O) and capital. The presenter said roughly 95% of Dysarts funds are spent from the M&O pot for day-to-day expenses such as employee salaries, utilities, transportation and supplies; about 5% are spent from capital for multi-year items such as buildings, furniture, technology, textbooks and buses. The staff member said Arizona law requires that capital funds be used only for capital purchases and M&O funds for operating expenses.

The presenter explained the difference between an override and a bond: an override (an M&O or capital override) is a property-tax increase that augments annual operating or capital budgets, while a bond is specifically designated for capital projects. "There's no such thing as an override bond or a bond override," the presenter said, emphasizing the legal separation of the two funding mechanisms.

The presenter reviewed recent local ballot history the district cited: voters approved a continuation of an M&O override in 2020 that the presenter said funds full-day kindergarten, arts and athletics programs and helps maintain class sizes. The presenter said that override provides approximately $26,900,000 to the district's M&O budget. The presenter also said the last time Dysart voters approved a bond was in February 2006.

The presentation included claims about district academic performance, which the presenter attributed to the district: Dysart was described as an A-rated district in Arizona, named best public school district in the West Valley three years in a row, and the presenter cited rankings for individual schools, including Freedom Traditional Academy and mentions of high schools recognized by U.S. News & World Report.

The presenter closed by directing listeners to dysart.org/budget for more information and offering the districts contact line for additional questions.