2024 Maintenance & Operations (M&O)
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 Support?
M&O funds pay for people and help SUSD provide a comprehensive education program to students.
SUSD M&O funds support:
- Staff
- Maintaining current class-size ratios
- Competitive teacher compensation
- Free, full-day Kindergarten
- Professional Development
- Athletics and Extracurricular activities
- World Languages
- Fine Arts
When was the last Maintenance and Operations Override?
The current M&O Override was approved by voters in November 2023. 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 2029-2030.
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.
How much does the M&O Override cost the average homeowner?
The 15% M&O Override is approximately total $22 million, at an estimated tax rate of $0.29 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 $607,000. The estimated net assessed valuation of this home is taxed at 10%, or $60,700. With an estimated tax rate of $0.29 applied per $100 of net assessed valuation, the owner of this home would pay $112.17 per year to support the renewed Maintenance and Operations Override.