Scottsdale Unified projects $2.8–$4.2 million shortfall for 2025–26; board weighs moving capital funds to operations

Scottsdale Unified School District leaders told the governing board on Feb. 11 that a decline in weighted student counts and unresolved state funding could produce a $2.8 million to $4.2 million shortfall for fiscal year 2025–26.

Shannon, a district finance staff member, said the district is estimating an average daily membership (ADM) decline consistent with recent trends (about a 2% annual decline) and a net loss in weighted student count that translates to roughly $2.9 million in revenue. She said higher weights for free-and-reduced meals and gifted students were larger than projected, but overall the district’s estimated weighted count would fall, producing the revenue gap.

The shortfall scenarios depend on whether a one-time state funding source (referred to in the meeting as “Prop 123/1 2 3”) continues. Without that funding the district would face approximately a $4.2 million gap; if that funding is restored the gap narrows to about $2.8 million.

To address the gap, staff presented several options for reductions and reallocation of funds. Key proposals…