The Scottsdale Unified School District (SUSD) has called for an election on November 7, 2023 to ask voter approval to continue the Maintenance and Operation (M&O) Override that voters last authorized in November 2019. SUSD must renew the current M&O Override by November 2024, or the funding will begin being reduced by one third each fiscal year until the override expires on June 30, 2025.
What is the Maintenance and Operations Override?
The Maintenance and Operations budget is established by an Arizona Legislature formula that considers Average Daily Membership (ADM), Student Weighted Counts and a set dollar amount per student weighted count. M&O Override funds are used to supplement the state funding formula for schools.
The District Revenue Control Limit is used to determine the maximum possible amount of a Maintenance and Operation (M&O) Override. The current M&O Override is 15% of the Revenue Control Limit, and that is what voters are being asked to renew in November. Funds raised through overrides go directly to the local school district, unlike state tax funds, which are allocated to school districts statewide. Overrides offer the community control over a portion of their annual taxes.
WHAT CAN THE FUNDS BE USED TO SUPPORT?
M&O funds pay for people and help SUSD provide a comprehensive education program to students.
SUSD M&O funds support:
Maintaining current class-size ratios
Competitive teacher compensation
Free, full-day Kindergarten
Athletics and Extracurricular activities
What's the difference between M&O and DAA?
Maintenance and Operations (M&O) dollars primarily support salaries; District Additional Assistance (DAA) dollars support capital purchases, such as furniture, fixtures, equipment and curriculum.
When was the last Maintenance and Operations Override?
The current M&O Override was approved by voters in November 2019. M&O Overrides are in effect for seven years; however, if voters do not reapprove an override by year five of its seven-year life, it begins phasing down by one-third each year until it is gone. The phase-down in this instance comes to approximately $7.3 million per year and would begin in fiscal year 2025-2026.
The current M&O Override is set to expire on June 30, 2025. We are asking that it be renewed a fiscal year ahead of time so that if it does not pass this November, the district has the option of calling another election in November 2024, before the current funding starts being phased down. This is common practice among Arizona school districts.
How much will the M&O Override cost the average homeowner?
If approved, this continuation of the 2019 voter-approved, 15% M&O Override would total $22,350,888, at an estimated tax rate of $0.3318 per $100 of net assessed valuation. According to the State and County Abstract from the Arizona Department of Revenue, the value of an average home in Scottsdale is $523,750. The estimated net assessed valuation of this home is taxed at 10%, or $52,375. With an estimated tax rate of $0.3318 applied per $100 of net assessed valuation, the owner of this home would pay $173.78 per year to support the renewed Maintenance and Operations Override.
Limited Property Value = $523,750
10% Assessment Ratio
Estimated Net Assessed Valuation = $52,375
Per $100 of Net Assessed Valuation = $523.75
$0.3318 Tax Rate
Estimated Annual Tax to Support the Renewed Override = $173.78