Phoenix Elementary projects nearly $2.7 million drop in next year's general budget limit as enrollment falls
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Summary
At a budget study session board members were told the district's weighted ADM has declined to about 6,100, driving a projected M&O general budget limit drop from $50.9 million to roughly $48.2 million for FY27; staff outlined cost-control options and long-term planning steps.
Phoenix Elementary District officials told the governing board that a sustained enrollment decline is shrinking state funding and will reduce the district's maintenance-and-operations (M&O) general budget limit by roughly $2.7 million for fiscal year 2027.
"When we adopted our budget, we were working a year ago on this year's budget. The weighted ADM, we thought we were gonna be around 6,611. Right now, we're at 6,100," Mr. Whittle, the district's finance presenter, told the board during the March study session.
The drop in weighted average daily membership (ADM) feeds directly into the revenue control limit (RCL) and the M&O general budget limit. Mr. Whittle showed the board that the district's adopted RCL was about $35 million, its revised projection is about $32.5 million and that the district's current M&O GBL stands near $50.9 million, with FY27 projected to be about $48.2 million.
Why it matters: state funding formulas use weighted ADM (which assigns extra weight to students with special needs) rather than raw head count. That means a change in student mix and declines in the unweighted ADM reduce the district's formula-driven revenue even if nominal enrollment falls by a smaller head-count amount.
Mr. Whittle highlighted other line items that affect flexibility: the district anticipates about $1.3 million in budget-balance carry forward for M&O this year and noted encumbrances (purchase orders and payroll obligations) that lower immediately available funds. He also reviewed major fund balances: capital carry-forwards, classroom-site funds and several cash accounts such as self-insurance and food service.
Board members pressed staff on where cuts would fall if revenue remains lower than expected. Options discussed included tightening class-size standards, aligning staffing across functions (custodial, transportation), and shifting one-time funds rather than recurring dollars. "So the budget shortfall for next year is through making sure that we're working with Dr. Bowman and ensuring that we're aligning to industry standards or having a district standard for class sizes," Mr. Whittle said.
District staff also pointed to one-time improvements: the district's move to self-insurance produced investment income that helps near-term budget capacity. Jack Bowman, who described the district's compensation and staffing strategy, noted the district earned "nearly $400,000 of interest," which staff said will help cover some benefit costs and buy time to stabilize ongoing revenues.
Next steps: staff said they will return with further breakdowns (including unweighted ADM by campus and grade) and a set of proposed adjustments for board consideration, while continuing long-term planning tied to facilities and enrollment strategies.
Ending: The board received the update and signaled a desire for more school- and grade-level detail before making policy decisions; no program cuts or formal actions were adopted at the session.
