AZ SB1823

Allows school districts meeting specific criteria to opt into a "state student funding formula" instead of the standard school finance formula, with eligibility based on having no overrides, limited bond debt (four or fewer years remaining), and meeting declining support level ratio thresholds starting at 90% in FY 2026-2027 and dropping to 50% by FY 2030-2031.

School districts using the state student funding formula are prohibited from using other property tax-generated funding sources, including overrides, certain bonds, and cannot receive district additional assistance or apply for school facilities funding (except for new school facilities).

Renames "charter additional assistance" to "state additional assistance" throughout the statutes, applying this funding mechanism to both charter schools and school districts that elect to use the state student funding formula.

Establishes procedures for school districts to elect the state student funding formula through either a governing board vote (if tax rates won't increase) or a voter election (if tax rates will increase), and allows districts to revert to the standard formula through a subsequent voter election.

Modifies Arizona online instruction funding calculations to reference "state additional assistance" instead of "charter additional assistance" and maintains the 95% funding rate for full-time online students and 85% for part-time online students.