Kyrene CFO outlines $110.1 million M&O revenue estimate as enrollment decline drives budget squeeze

Chris Herman, Kyrene Elementary District chief financial officer, told the governing board during the April 8 study session that the district’s fiscal 2026 general-fund revenue assumptions show continued pressure from declining enrollment and limited state increases.

“The M and O amount for the fiscal year 26 budget is a hundred and $10,100,000,” Herman said. He added the total general-fund estimate is “just under $112,000,000” and explained those figures reflect current projections that could change with legislative action before the June budget adoption.

Herman said Kyrene’s M&O revenue is calculated from three components: the base support level (state per‑pupil funding multiplied by weighted student counts), the revenue control limit (base support level plus the transportation revenue control limit), and additional amounts such as district additional assistance (DAA), the M&O override, and Proposition 123 distributions. He told the board the base support level for fiscal 2026 is approximately $87.8 million and that the district expects a net enrollment‑driven reduction in base funding of about $4.1 million compared with the prior year.

Why it matters: Kyrene is a kindergarten–8 district whose state funding is tied to current‑year enrollment and weighted average…