Maricopa Schools Hold Strong Amid State Budget Crisis Looming Over June Payments

In a concerning turn of events, the Maricopa Unified School District announced it is prepared to manage potential delays in state budget payments, amid a projected $200 million shortfall in Arizona’s basic state aid fund.

The Arizona Department of Education (ADE) signaled trouble in a June letter to school leaders. Unless the legislature approved a new budget or a supplemental appropriation by June 13, full payments would be halted, resulting in a disbursement of only about 60% of usual allocations.

That critical deadline has passed without a new state budget.

Tim McCain, ADE’s chief financial officer, noted in a letter that the fund is facing significant shortages. “If a budget is not passed… ADE will make a partial payment,” he stated, emphasizing the necessity of a supplemental appropriation to address the remaining balances.

The delay revolves around legislative negotiations on the FY2026 budget. A key sticking point appears to be Proposition 123, which proposes to channel state land trust earnings into K-12 funding.

“ADE will exhaust all possibilities to ensure payments… but it is wise planning to prepare for a potential partial payment in June,” McCain advised.

Despite these warnings, the Maricopa schools seem ready for a rainy day.

Jacob Harmon, the district’s CFO, reassured that operations will remain unaffected. “We have sufficient budget reserves to cover a temporary delay in state funding,” he stated. “We expect full payment to be processed once the state budget is finalized.”

As of this report, negotiations were still underway; however, the Senate did pass a budget late yesterday. Lawmakers have yet to provide a definitive timeline for resolution.