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Mesa board adopts preliminary FY 2025–26 budget; officials highlight carry-forward and enrollment uncertainty
Summary
Trustees approved the district’s proposed fiscal year 2025–26 budget, citing state budget uncertainty, an estimated drop of 1,800 students in projections and an approximately $100 million carry-forward across funds to buffer revenue volatility.
The Mesa Public Schools Governing Board voted unanimously on July 8 to approve the proposed fiscal year 2025–26 budget, despite state budget figures remaining preliminary and a projected enrollment decline.
Chief Financial Officer Scott Alexander presented the budget and emphasized that state budget figures were not final; the district used preliminary forms from the Arizona Auditor General and made conservative assumptions, including a 2% base increase for maintenance and operations and an estimated $50 per pupil Classroom Site Fund increase. The presentation included a projected net assessed valuation increase of 3.8 percent and an estimated total property tax rate decrease of 0.4124 points, reflecting expiring bonds and other factors.
Officials said the budget assumes an unweighted K–12 average daily membership (ADM) drop of about 1,800 students from October figures used for projections. Staff also told trustees the Auditor General’s revised forms asked districts to show estimated carry-forward funds in a separate line, which made year-to-year comparisons look different in some columns.
Superintendent Matthew Strom and CFO Alexander explained the district projects roughly $100 million across several funds in carry-forward balances and described reasons for maintaining that cushion: federal and state grant uncertainties (including Medicaid/direct service claiming), recent shifts in funding rules that reduce district flexibility, and the need to protect contracts and staffing amid enrollment volatility. Board members pressed staff to explain the large carry-forward balance and whether those funds would be spent or are being held for solvency.
Trustees approved the budget by a vote of 5–0. Officials said the board will revisit the budget in fall or winter if the state budget changes and will return next May for final revision of any carry-forward estimates.
