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Inflation Options For FY 2023


Posted Date: 03/22/2022

We want to share with you a question that we have received about why the inflation increase for schools and charters for next year is at 2% when actual inflation is significantly above that level. The current budgets for public schools from the Governor’s Office and the legislature propose a 2% inflation increase because they have selected  the lowest possible inflation increase required by law.  ARS 15-901.01 states that for fiscal year 2006-2007 and each fiscal year thereafter “the legislature shall increase the base level or other components of the revenue control  limit by a MINIMUM[I decided to put this in caps} growth rate of either two per cent or the change in the GDP price deflator”. The inflation increase in the GDP price deflator is more than double the 2% increase that is currently being proposed for next year’s base level. However, the state could and should increase the base level for FY 2023 for both charters and school districts  beyond the minimum of 2%. They have exceeded the minimum required increase in the past. See the language that is contained in ARS 15-901.01     https://www.azleg.gov/viewdocument/?docName=https://www.azleg.gov/ars/15/00901-01.htm .

 

 

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