In the mission statement that introduces this annual report, the Arizona Superintendent of Public Instruction defines the goals of revamping the state's "Essential Skills" program to reflect high academic standards and achievement, develop a fiscally responsible equitable school finance system, and reorganize the state department of education to improve efficiency and accountability. The first section of the report provides an overview of school enrollment and funding through general statistical information on: (1) state funding and revenues; (2) expenditure history; (3) average daily membership history; (4) state summary of the number and type of public schools; (5) private school enrollment and statistics; (6) state, federal, and private funds administered by the State Board of Education; (7) the annual financial report of county school superintendents; and (8) food service program information. Section 2 contains the school district, county, and state summary of financial data, with reviews of data on enrollment, tax allocation and rates, teacher salaries and other staffing expenditures, and other program expenditures. Section 1 contains 3 graphs and 12 tables. Section 2 contains 6 charts for each of the state's 233 regular school districts, the counties, and the state as a whole. (SLD)