Arizona Constitution Practice Test

What is the maximum amount a unified (K-12) school district may become indebted beyond?

1. 10% of taxable property within the district

2. 15% of taxable property within the district

3. 25% of taxable property within the district

4. 30% of taxable property within the district

The correct answer is: 30% of taxable property within the district

The correct choice reflects the provisions found in the Arizona Constitution regarding the borrowing limits for unified (K-12) school districts. Specifically, under Arizona law, the amount a unified school district may incur as debt cannot exceed 30% of the taxable property value within that district. This limit is designed to ensure that school districts do not overextend themselves financially, which could jeopardize their ability to provide educational services effectively. Understanding the rationale behind this limit involves recognizing the importance of fiscal responsibility in public education financing. By capping debt levels, the constitution seeks to protect both the financial stability of the district and the interests of taxpayers. This safeguard encourages prudent financial practices while still allowing for necessary investment in educational infrastructure. In contrast, the other options reflect lower percentages that do not align with the constitutional provision. Each of these would restrict a school district's ability to generate funding through debt, thereby limiting their ability to address needs such as facility improvements, technology upgrades, or other essential educational resources. Hence, they do not meet the established legal framework governing school district indebtedness in Arizona.