District Board approves budget revision due to significant drop in ADM enrollment
December 15, 2023 | Tempe Union High School District (4287), School Districts, Arizona
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The Tempe Union High School District (TUHSD) held a special governing board meeting on December 13, 2023, primarily focused on the revision of the 2023-2024 expenditure budget. The meeting began with a public hearing regarding the budget revision, which received no comments from attendees.
Mr. Kranza, the district's business services representative, presented the first revision of the budget, explaining that mid-year adjustments are common and sometimes necessary. This particular revision was mandated due to a significant drop in Average Daily Membership (ADM), which is a key factor in determining funding. The district's ADM fell by 4.7% compared to the previous year, marking the largest decline observed in recent years.
The budget revision reflects a decrease in expected funding from $89.7 million to $86 million, driven by the lower ADM figures. Kranza noted that the state had been monitoring the district's ADM and that the decline exceeded 1%, necessitating the budget revision. The presentation included graphs illustrating the ADM trends and highlighted the importance of accurate enrollment projections for financial planning.
In addition to the ADM adjustments, Kranza discussed other components of the budget, including ongoing funding sources and one-time allocations. The total M&O (Maintenance and Operations) budget limit was reported at $133 million, with a significant portion being one-time funds that will not replenish in future years.
The board members engaged in a discussion about the budget figures, with Member Hodge inquiring about discrepancies in estimates provided to the budget advisory committee. Kranza clarified that the final reconciled figures revealed an additional $3 million in one-time budget capacity, which was a positive development.
The meeting concluded with a unanimous vote to approve the budget revision, reflecting the board's commitment to maintaining financial stability amid declining enrollment figures. The next steps will involve continued monitoring of ADM and further adjustments as necessary to ensure the district's financial health.
Mr. Kranza, the district's business services representative, presented the first revision of the budget, explaining that mid-year adjustments are common and sometimes necessary. This particular revision was mandated due to a significant drop in Average Daily Membership (ADM), which is a key factor in determining funding. The district's ADM fell by 4.7% compared to the previous year, marking the largest decline observed in recent years.
The budget revision reflects a decrease in expected funding from $89.7 million to $86 million, driven by the lower ADM figures. Kranza noted that the state had been monitoring the district's ADM and that the decline exceeded 1%, necessitating the budget revision. The presentation included graphs illustrating the ADM trends and highlighted the importance of accurate enrollment projections for financial planning.
In addition to the ADM adjustments, Kranza discussed other components of the budget, including ongoing funding sources and one-time allocations. The total M&O (Maintenance and Operations) budget limit was reported at $133 million, with a significant portion being one-time funds that will not replenish in future years.
The board members engaged in a discussion about the budget figures, with Member Hodge inquiring about discrepancies in estimates provided to the budget advisory committee. Kranza clarified that the final reconciled figures revealed an additional $3 million in one-time budget capacity, which was a positive development.
The meeting concluded with a unanimous vote to approve the budget revision, reflecting the board's commitment to maintaining financial stability amid declining enrollment figures. The next steps will involve continued monitoring of ADM and further adjustments as necessary to ensure the district's financial health.
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