Cave Creek Unified School District’s superintendent asked the high court to overturn the Arizona Court of Appeals’ ruling issued in February.
The Arizona Supreme Court decided Wednesday against reviewing the ruling.
It will hear an appeal of a case that found the state Legislature must give schools an annual funding increase even in lean years to account for inflation.
The Goldwater Institute conservative watchdog group sued the Cave Creek district to stop its planned use of $13 million left over from a $41 million bond approved in 2000.
A 2010 law allowed school districts to spend excess bond money for purposes not authorized by voters.