TAPBI is a distance-learning program pilot that served over 15,000 students in fiscal year 2006. Currently, Arizona statutes allow seven school districts and seven charter schools to operate TAPBI schools. The TAPBI Program is funded using Average Daily Membership (ADM), the same method used for traditional K-12 education. Although statute limits funding to 1.0 ADM per student, errors resulted in about 6,800 TAPBI students being funded at 1.17 ADM each, on average, for a total overfunding of about $6.4 million. At $5,526 per pupil in fiscal year 2006, TAPBI schools spent $1,223 less per pupil than brick-and-mortar schools largely because TAPBI schools do not provide transportation and food services, and they have lower plant operation costs. However, costs could be further reduced, particularly for software and management agreements, and charter school administration. Finally, the TAPBI Program’s effect on student achievement is unclear. Certain practices, such as ensuring that the number of minimum instructional hours are met and providing teacher training related to online teaching, can help TAPBI schools better support student achievement.