PHOENIX (AZFamily) — A recent report from Arizona’s Auditor General reveals concerning trends about the financial health of the state’s school districts, with twice as many districts at or near the highest financial risk compared to the previous year.
The annual financial risk assessment examined more than 200 Arizona school districts and found a significant increase in districts struggling with budget challenges. Rising costs, declining enrollment and insufficient funding all contribute to the financial strain facing public education.
Financial risk doubles across state
Jimmy Arwood with the Arizona School Boards Association said the report should serve as a wake-up call to state lawmakers.
“Fundamentally, we are not funding schools at the level they should be and that is a concern for all of us. Should be a concern for businesses, concern for leaders in the state,” Arwood said.
This year’s report said nine districts are at the highest financial risk and nine are approaching the highest-risk category.
Arwood said the increasing financial pressure reflects broader systemic issues.
“Every year, costs are going up for school districts and we’re asking school districts to do more and more and we just aren’t matching the number of dollars they need just to keep up with inflation,” he said.
Capital budgets show alarming trends
The findings on capital budgets proved especially concerning, with more than 35% of school districts at high risk of a financial crisis.
Arwood said the state Legislature has been under-funding public schools for years, which led to a lawsuit filed against the state to meet minimum funding guidelines.
State superintendent questions accuracy
Arizona Superintendent of Public Instruction Tom Horne expressed skepticism about the audit findings.
“If true, it’s very concerning but we are not sure the auditor general’s reports are that accurate,” Horne said.
Despite his questions about the report’s accuracy, Horne said he will continue advocating for increased school funding, particularly for teacher salaries. His office remains available to assist struggling districts.
“We’ve told them if you need help, come to us. We are a service organization, part of our mission statement, and we will help you,” Horne said.
Districts at highest risk
The audit identified eight districts in the highest-risk category:
- Antelope Union High School District
- Hayden-Winkelman Unified School District
- Isaac Elementary School District
- Joseph City Unified School District
- Palominas Elementary School District
- Santa Cruz Elementary School District
- Sierra Vista Unified School District
- Tucson Unified School District
- Wilson Elementary School District
Nine additional districts are approaching the highest-risk category, including Scottsdale Unified School District, Chino Valley Unified School District and Fountain Hills Unified School District.
The complete Arizona Auditor General report is available by clicking/tapping here.
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