Tucson Unified flagged as one of highest financial-risk districts by state auditor

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TUCSON, Ariz. (13 News) – The Arizona Auditor General is flagging Tucson Unified as one of the highest financial-risk districts in the state.

The TUSD is the only district in Pima County flagged in the Auditor General’s highest-risk category. The other eight major school districts are not listed among the state’s most financially vulnerable.

The auditors point to declining enrollment, rising operating costs, and the end of federal COVID relief money as key factors.

Financial challenges mount

Enrollment is down more than 2%, costing the district about $5 million in lost revenue. At the same time, expenses are climbing.

Salaries have increased more than 20% in four years, and utility costs have surged. The district has used one-time funds to cover ongoing budget demands.

As a result, TUSD is cutting positions, freezing hiring, and planning up to $25 million in operating reductions by fiscal year 2030.

The auditors said these kinds of budget problems don’t have quick fixes — they’re measured in years.

The next governing special board meeting is scheduled for Jan. 27.

The Amphi district, along with Marana, Sunnyside, Tanque Verde, and Vail, all have some high-risk markers but are not in the auditor general’s highest-risk category.

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