Report Reveals Arizona’s Surprising Education Spending: More Funds, Fewer Teachers

A recent report indicates that over half of Arizona school districts allocated a smaller percentage of their total funds to classroom instruction last year compared to the previous year.

Rep. Matt Gress, chairman of the House Education Committee, attributes this decline to decisions made by school administrators rather than administrative costs. He notes that, despite Arizona schools spending less on administrative salaries than the national average, the allocation of funds has direct implications for classroom resources and teacher salaries.

Gress argues that each dollar spent should prioritize classroom instruction, contending that the current spending trends divert resources toward other priorities. Paul Tighe, executive director of the Arizona School Administrators Association, counters this perspective by highlighting the essential roles of guidance counselors, nurses, and other support staff, which are often not included in the instructional spending metrics.

The report reveals that while overall instructional spending across districts rose by $158.1 million, the proportion spent on direct instruction fell to its lowest since 2004. Specifically, only 52.6 cents of every dollar went to instruction, a decrease of 0.8 percentage points from the previous year. In contrast, total spending for the 2023-2024 school year reached nearly $10.6 billion, up roughly $500 million from the last year.

As Governor Katie Hobbs and state lawmakers discuss K-12 funding strategies, the debate centers on how to draw from the state land trust. Proposals include a potential salary increase of $4,000 per teacher from Republicans, while the governor’s strategy lacks specific financial figures. Gress emphasizes that education funding mismanagement relates to a reduced percentage of funds being directed toward classroom instruction compared to two decades ago.

Historical data shows that in the 2003-2004 school year, 58.6 cents of every dollar was allocated to instruction. Gress argues that maintaining the same percentage today could free up an estimated $624 million for teacher salaries.

In Arizona, schools have also seen a decline in student numbers, with 149 of 230 districts reporting enrollment drops. This shift has implications for how funds are appropriated, as fewer students often lead to higher costs per pupil.

Chuck Essigs, a lobbyist for the Arizona Association of School Business Officials, points out that utility rate increases are a significant factor in rising operational costs. Additionally, the need for reliable services, even amid reduced enrollments, complicates budgeting. There is also a noticeable decline in the number of seasoned teachers, contributing to stagnant salaries in many districts.

The average teacher salary in Arizona currently stands at $65,113, with around 11.8 years of teaching experience. However, the proportion of teachers with over four years of experience has decreased from 82% in 2023 to 78% in 2024.

The report underscores the ongoing debate about school funding allocations and highlights the pressing need for a reevaluation of spending priorities to effectively support classroom instruction and, ultimately, student learning.