Phoenix Union outlines enrollment decline, budget gaps and forms budget committee
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Summary
District staff reported projected enrollment declines and multi‑year budget shortfalls; the board approved a framework to create a budget advisory committee of seven board‑appointed members plus up to five superintendent‑appointed nonvoting participants, set appointment timing and rules for vacancies and absences.
Superintendent Adande Andrade and Chief Financial Officer (presentation by Mr. De Alba) told the Governing Board that projected enrollment declines will reduce revenue and require the district to “right size.” Staff presented a three‑year fiscal outlook showing the district can cover the current year with one‑time reserves but faces recurring shortfalls in later years unless steps are taken.
District staff said the Maintenance & Operations (M&O) budget is driven by average daily membership (ADM) and that salaries and benefits consume the bulk of spending (staff cited roughly 87% of M&O going to salaries/benefits and about two‑thirds of payroll directed to teachers and instructional aides). For the current year the district projected a total reduction need of about $5.8 million, covered in part by $3.3 million in one‑time reserves; deeper, recurring reductions are projected in later fiscal years. Staff presented scenarios that used one‑time reserves and targeted cuts (district office reductions and transfers from capital to M&O) to avoid immediate insolvency but warned of projected recurring deficits in fiscal years 2027–28 (staff cited example deficits on the order of $11–$14 million under current assumptions).
Given the timing and magnitude of the problem, the board debated whether to create a superintendent‑led advisory group or a board committee with decision‑making authority. Trustees discussed Open Meeting Law constraints, composition, and community representation. Several trustees argued for board control and appointed membership; others recommended a superintendent committee with robust stakeholder participation. Members also recommended training for the committee and board on school finance before the panel meets; a few trustees suggested using an outside trainer (examples discussed included student‑outcomes or student‑based budgeting training organizations).
After discussion the board approved a motion to create a budget advisory committee composed of seven board‑appointed members (one appointee per board member) plus up to five non‑voting superintendent‑appointed participants drawn from staff/associations/community partners. The board set an expectation that board appointees be named by the February board meeting, established two‑year terms for committee members, allowed appointors to name replacements if a member resigns, prohibited board members from appointing themselves, and directed automatic removal of committee members who miss three consecutive meetings (the board also directed staff to support committee formation and to return logistics and training cost estimates). The board and staff agreed the committee will collect stakeholder input (surveys and listening sessions), identify budget priorities aligned to adopted board goals and guardrails, and recommend reallocations for the board’s approval.
Ending: Staff said the committee will follow a compressed timeline with several meetings this spring, a summer pause, and further work in the fall to inform the December budget revision and next budget cycle. Trustees asked staff to return proposed committee operating rules, a public communication plan, and cost estimates for training and facilitation.
