Cave Creek USD work study weighs closing two elementary schools, moving sixth grade to curb multimillion-dollar shortfall

Cave Creek Unified School District held a work study on Jan. 28 to review the district—s budget and discuss a staff recommendation to close two elementary schools, redraw attendance boundaries and reconfigure grade levels as a way to address declining enrollment and multimillion-dollar shortfalls.

District administrators told the board that maintenance and operations (M&O) spending has been roughly $32 million annually while student enrollment has fallen, and that the district has repeatedly redirected capital (DAA) funds into operations. Administration said the district has moved about $2 million a year from capital to M&O for multiple years, totaling roughly $10 million over five years, and that capital carryforward has fallen to levels the presenters described as "very, very dangerous." The Auditor General—s report, administration said, places the district in high-risk categories tied to enrollment decline, redirected capital and the district—s change in general fund balance.

Why it matters: The administration presented projections showing capital carryforward shrinking to roughly $170,000 under current spending patterns and that continuing the present practice of transferring capital to operations could put the district into a…