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Mesa Unified adopts proposed FY26 budget; carries large reserve citing enrollment uncertainty
Summary
The Governing Board approved the district's proposed fiscal year 2025–26 budget, which includes an estimated carryforward of roughly $100 million, an assumed 2% base increase in maintenance and operations, and a projected 3.8% rise in net assessed valuation that yields a modest estimated tax-rate decrease.
The Mesa Unified School District Governing Board voted unanimously to approve the district’s proposed fiscal year 2025–26 budget, adopting preliminary figures based on Auditor General forms and estimates while noting uncertainty in the state budget and student enrollment counts.
District presenters told the board that the budget relies on several conservative assumptions because the state budget had not yet been finalized when the proposal was prepared. The proposal assumes a 2% increase for maintenance and operations base funding and incorporates a $50 per-pupil increase in the Classroom Site Fund. The district used an estimated decline of 1,800 students in the K–12 unweighted average daily membership when projecting revenue, a factor that most strongly affects classroom funding.
The presentation highlighted three major points: bond funds will be exhausted at the end of the current year (zero bond building fund balance projected going into FY26), the adjacent-ways levy balance includes $8 million with $3 million already committed to scheduled projects and $5 million reserved for ongoing work, and federal and state grant revenues are estimated at $55 million (excluding some carryforward items).
Administrators stressed the reason for a substantial carryforward: with state and federal funding streams and student counts still uncertain, the district must hold reserves to manage potential mid-year shortfalls or enrollment shifts. The district described that roughly $100 million of carryforward is spread across multiple funds — operating, classroom site, and capital — and is intended to provide a buffer while avoiding disruptive staffing changes midyear.
Mr. Alexander and Mr. Thompson, the district financial presenters, said preliminary forms from the Auditor General required the district to show estimated carryforward amounts on specific line items, which made some year‑to‑year comparisons appear negative on the surface. They also presented a projected net assessed valuation increase of 3.8% and an estimated overall tax-rate decrease of 0.4124 (primary and secondary combined), a drop largely attributed to expiring bond debt and the district’s conservative debt payoff schedule.
Board members asked for clarity on how carryforward amounts are set and whether the district could spend more on instruction. Presenters answered that some carryforward categories — notably capital and desegregation-related funds — are constrained by statute or past voter actions, and certain dollars must be used for specific purposes. Board members also pressed staff to continue refining the budget after the state budget is finalized; staff noted formal revisions will follow in September and again in May if needed.
The motion to approve the proposed FY26 budget passed by a 5–0 vote. District leaders said they plan to return with a line-item, adopted budget once state figures are finalized.
Key figures presented: a projected 3.8% increase in net assessed valuation; a projected overall tax-rate decrease of 0.4124; estimated federal and state grants of $55 million (carryforward excluded); bond building fund projected to be $0 at the end of the current year; adjacent ways fund estimated at $8 million (with $3 million committed).
