Arizona School Districts Build New Facilities Despite Declining Enrollment, Creating Financial Strain

Traditional public schools in Arizona are facing an increasing number of issues, including a shortage of students and an excess of space. School buildings that were once filled with activity are now mostly empty throughout the state, which causes taxpayers financial strain and raises concerns about the use of education funds.

A new report by the Common Sense Institute (CSI)  shows most public school buildings in Arizona are only 67% full. The lowest-rated schools are just 19% full, while the best schools reach about 70% capacity. 

For many years, Arizona built more schools as more families moved to the state. Most kids attended their local public school, prompting districts to build new classrooms and purchase more buses continually.

But things changed after 2008. Fewer students started enrolling in public schools each year, the CSI indicates. Since 2019, enrollment has dropped by 5%. At the same time, more families began choosing charter schools and private schools. Now, 4 out of 10 kindergarteners go to charter or private schools instead of traditional public schools.

Growing Financial Issues

Even with fewer students, school districts built 499 new buildings in the last five years. They increased their total building space by 3%, creating 78 million square feet of unused space. Spending has gone up, too:

• Building costs have increased 67% since 2019, reaching $8.9 billion per year.
• Transportation costs grew 11% to $561.2 million, despite a 45% decrease in the number of students riding buses.
• Urban districts now drive 63% more bus miles per student.

Education Falling Short

Despite increased spending, student performance has worsened. Math scores dropped 25% since 2019. The schools with the lowest ratings are operating at only one-fifth capacity.

The state's financing structure, originally designed for steady growth, now struggles to adapt to a more diverse educational marketplace where families actively choose between traditional public, charter, or private schooling. 

With half of Arizona's K-12 students already enrolled in some form of school choice option, and charter schools operating at 95% capacity compared to public schools' 67%, the imbalance seems likely to continue growing.

Education officials and policymakers now face difficult decisions about how to help resource actual student needs while managing the financial responsibilities of existing infrastructure funding.