Tempe School District CFO: enrollment decline driving shortfall in 2025-26 budget

The Tempe School District held a public hearing on the proposed 2025–26 annual budget in which Chief Financial Officer Eric Thompson said the district will spend more in maintenance and operations (M&O) than it will receive in state and local funding unless additional cuts are made.

“This is part 2 of the budget adoption… It has to be approved by July 15 per state statute,” Thompson said, explaining the timetable and the need to adopt a budget now and revise it later when state numbers are finalized.

Thompson said enrollment — measured as average daily membership (ADM) — is the primary driver of revenue: “The enrollment is the revenue and that drives the budget.” He told the board the district is estimating roughly 9,000 students for the coming year and that various weighted categories (special education preschool, ELL, K–3) increase the district’s weighted pupil count to about 10,500. That weighting and other…