Lawmakers who have experience on school boards said forcing school districts to spend down their savings as a way to balance a massive state deficit doesn't make sense and would harm schools.

One Republican is proposing requiring school districts to spend an estimated $330 million of unused state money to offset an equal amount of cuts in the upcoming fiscal year. Rep. Carl Seel said that would help the state avoid raising taxes or borrowing massive amounts of money to balance a $3 billion deficit.

State law allows school districts to save up to 4 percent of their budget. The practice, known as "carry forward," is essential for school districts, according to critics of Seel's proposal.

"Districts use carry forward as a rainy-day fund for sorts, to give some buffer," said Rep. Rick Murphy, a Republican who serves on the Peoria Unified School District governing board.

The ability to set some money means they are able to establish a contingency fund to cope with unexpected costs that seem to come up every year, said Rep. Eric Meyer. The Paradise Valley Democrat, who is also a member of the Scottsdale Unified School District governing board, said one year his district had to tap into the funds to accommodate dozens of students who showed up at its schools during the middle of the school year after their charter school closed unexpectedly.

"We're told to operate our school districts like businesses. Well, businesses have contingency money," he said.

And some districts set aside money for several years as a way to save up for large purchases, said Rep. Rich Crandall, chairman of the House Education committee. Crandall, a former school board president from Mesa, said he recently spoke with a superintendent from a rural district who was planning on using the carry forward to buy a new school bus, which would ultimately be cheaper than leasing one.

Crandall also noted that lawmakers, in solving a budget crisis earlier this year, have completely drained an account designed to pay for what he called "catastrophic" events at schools that require immediate repairs. Mesa Public Schools, one of the state's largest districts, is setting aside money to pay for any major repairs because the state will not be able to.

Murphy said his district has set aside money during each of the last two years to prepare for the loss next year of a special property tax that funds utility expenses. Saving the money over several budget cycles will lessen the impact to the district's operations next year, he said.

"Out there in the real world, what (this proposal) is going to end up doing is penalizing the districts that plan ahead and reward districts that spend down to the nub," he said.