New data from the Arizona Auditor General reveals widespread financial distress across the state’s school districts, with declining enrollment and budget overruns forcing some to close schools or cut staff.
Key findings statewide
The auditor examined 10 financial measures and found troubling trends: A third of all districts are seeing substantial enrollment declines, while another third overspent their budgets. Nine districts now face the highest financial risk, including Tucson Unified, the largest on that list.
Valley districts struggling
In the Phoenix area, Isaac Elementary and Wilson Elementary districts made the high-risk list. Five Valley districts posted enrollment drops near or above 10%, with Isaac Elementary leading the decline.
Budget discipline has collapsed across the region. Thirty-two of the Valley’s 55 districts exceeded their legal spending limits last year. Nadaburg Unified overspent by 92%, while Scottsdale Unified missed its mark by 44%.
Capital funds diverted
Five Valley districts raided money meant for building improvements to cover daily operations: Cave Creek Unified, Paradise Valley Unified, Glendale Union, Riverside Elementary, and Tempe Elementary.
The auditor also flagged three larger districts as approaching high-risk status: Balsz Elementary, Fountain Hills Unified, and Scottsdale Unified.
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