Mesa Public Schools officials told the Governing Board on Nov. 13 that projected enrollment declines mean district leaders are planning now for the 2027–28 budget cycle and have begun identifying programs and costs that may need change.

Chiefly, district staff said the enrollment outlook — with larger graduating cohorts and smaller kindergarten classes — reduces state formula revenue and will likely require difficult choices in future years. “This presentation is about being proactive for 27–28 planning and beyond,” a presenter told the board. Staff emphasized there are no board decisions required for 2026–27, but that the district is modeling options now so the board can act early if needed.

Why it matters

Board members heard a series of program-level examples that show how interlinked district spending is with student counts and with one-off grants or policy choices. Officials said some lines of spending are largely fixed (for example, staff salaries and certain site overhead), while other items were selected programs that could be reduced, reconfigured or paid for by other funding streams. The presentation framed the exercise as a way to preserve classroom resources where possible by making targeted changes in central and optional programs.

Key findings and examples

- District administrative redesign: staff said current-year actions reduce district office staffing by about 40 full-time equivalents and approximately $3,600,000 in recurring cost reductions. That reduction is part of a plan staff said is intended to protect school-level services.

- Compensated absences: staff reported an unaudited liability of about $25,000,000 for unused leave accrued by employees (vacation/sick payout liability if employees separate). Staff said that reserve explains part of the need to carry forward general-purpose funds.

- Performance pay: the district pays roughly $3,500,000 in performance pay to non‑certified staff out of Maintenance & Operations (M&O) funds; certified staff performance pay is funded from Classroom Site Fund dollars, staff said.

- Propane-powered buses: Mesa’s school-bus fleet is primarily propane. Staff described federal grants and rebate programs — about $750,000 in a clean-school-bus grant in 2023 and nearly $1,000,000 in federal rebates to date — that have supported the choice of propane. Officials cautioned those rebates may not continue indefinitely and that future cost comparisons between propane, diesel and electric buses will change if federal incentives change.

- Course fees and M&O supplementation: the board’s decision last year to remove course fees for performing-arts and career-technical classes was covered by a $360,000 M&O allocation this year. Staff said they will monitor usage and adjust future budgets if demand increases.

- Mesa Youth Creative Agency (MICA): staff said the district-led workforce-development program has received grant funding (roughly $1.2 million in 2023–24 and about $1.0 million for 2025–26), with grant activity scheduled to end Dec. 31, 2026. Current project revenues are modest (about $17,000), expenditures/encumbrances roughly $568,000 for the remainder of the year, and staff estimated a year-end balance of about $127,000 if grants continue. The board was told MICA could revert to M&O support if grant funds are not renewed.

- Mesa Distance Learning Program (MDLP): staff said full‑time online students generate reduced per‑pupil state funding (95% for full‑time AOI; 85% for part‑time AOI). Staff listed MDLP revenue at about $2,200,000 and said Mesa provides one free online course per semester to brick‑and‑mortar students, at an estimated waived‑revenue cost of about $564,000.

- Choice transportation: under board policy 3‑302 the district provides some choice‑school transportation. Staff said state route funding covers basic to‑and‑from routes but additional routing (double‑backs, extra pickups) is not state‑eligible. The net cost to run extra choice routes was reported at roughly $1,600,000, with state transportation revenue covering about $1,200,000 — leaving an estimated deficit of about $378,000 attributable to choice transportation practices.

- Full‑day kindergarten: staff reminded the board that state funding for full‑day kindergarten is roughly 0.5 FTE per enrolled child; the district’s calculation on straight teacher salaries shows a gap of about $3,100,000 for the full‑day program after comparing state revenue to direct teacher salary costs. Officials noted that the calculation excludes some classroom aides and utilities and is a partial snapshot focused on salaries.

- Small‑school costs and repurposing: staff displayed a small‑school example using O'Connor Elementary (ADM from 2025) and showed that some small elementary campuses operate at an instructional deficit because fixed overhead and staff costs outpace state revenue. Staff said potential savings from repurposing a small campus range from about $600,000 to $1,000,000 but stressed such savings materialize only if displaced students stay in Mesa Public Schools; moving students outside the district can worsen the budget position.

- Preschool: multiple preschool programs were described as running a combined shortfall (staff estimated about $3,600,000 in the red) that district staff partially cover with Title I dollars; staff warned about the sustainability of using federal Title I funds to subsidize universal preschool if federal priorities change.

- Block scheduling, athletics, portables: staff flagged high‑school block scheduling as an item under review with possible financial implications and listed many optional programs (district athletics, Montessori, one‑to‑one devices, administrative facilities consolidation, portables) that could be considered in future budget talks.

Board discussion and next steps

Board members asked for documentation that supports key line‑item claims (for example, the $3.6 million administrative savings) and requested clearer details for how specific staff and services would be preserved or reconfigured. Several board members stated they want more time and more detailed follow‑up on particular programs (for example, preschool funding, propane bus contingency plans if rebates end, and the effect of removing course fees). Staff said they will provide follow‑up material, including the funding tables used for these examples, and that the items discussed are primarily for planning 2027–28 rather than immediate action for 2026–27.

Ending

Superintendent Dr. Strom said transparency with the board was the intent and that staff would return with more detailed analysis where board members requested it. No formal votes were taken on the budget‑planning presentation; staff characterized it as informational to guide follow‑up decisions.

Speakers quoted or referenced in this article

- Mr. Moore, Staff member (presentation)
- Dr. Strom, Superintendent (comment/closing)
- Board President Davis (meeting chair)
- Board Member Hutchinson (questioning)
- Board Member Benson (questions/comments)

Authorities cited in meeting materials

- Board policy 3‑302 (transportation policy; discussed)
- State funding formulas (referenced generically by presenters)

Clarifying details extracted from the meeting

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Provenance

transcript_segments: [{"block_id":"386.71503","local_start":0,"local_end":164,"evidence_excerpt":"Thank you, President Davis, members of the board, here here is why I'm kicking this off. These are public meetings, and we don't wanna cause any anxiety within the district, but the projected enrollment declines with classes of 4,500 graduating and 3,200 students coming in in kindergarten, suggests that the district is on a pathway to probably not, experiencing the growth...","reason_code":"topicintro"},{"block_id":"2072.0798","local_start":0,"local_end":131,"evidence_excerpt":"And so, we just want you to know this is a spirit, I promised the board when I interviewed that we'd be transparent and this is in the spirit of transparency, with the governing board, and much like we did with, you had asked, I think member Chaffee had asked for, summaries on funds ... No decision necessary for 2627. Questions?","reason_code":"topicfinish"}]