In June 2018, Murphy Elementary School District(MESD) was placed into receivership by the Arizona State Board of Education as a result of budget over-expenditures and management concerns. A new management team was brought in to improve budgetary controls and return MESD to financial solvency.

During the past 2 years, MESD has eliminated the accumulated Maintenance & Operations deficit primarily through staff reductions and outsourcing of food service and custodial services. As a result of these significant cuts, MESD will close out FY20 with a budget surplus exceeding $519k in the Maintenance & Operations budget and over $169k in Unrestricted Capital Outlay Budget. The reason for the redirection in the District Additional Assistance was due to the districts previous overspending. In the coming years MESD will have the extensive proceeds from the sale of the Alfred F. Garcia Elementary School property. Thus putting far less strain on the Unrestricted Capital Outlay Budget, allowing for monies in this account to increase in the coming fiscal years. At the time the community approved the sale of Alfred F. Garcia, the Murphy community overwhelmingly supported our capital override increase from $350k to $500k per year, for the next seven years.

Halfway through FY21, MESD does not anticipate the need to move any monies to the General Fund. Following the sale process of the former Alfred F. Garcia Elementary School campus, completion of selling the property is expected to occur in summer 2021.

Moving forward, our FY21 budgetary goals are based upon our forecasted FY22 ADM. The purpose of this is to enter into FY22 with a carry forward well above the current $519k.

Long-Term Foundational Changes​:

Throughout this entire process, the MESD Board has transformed with four new board members joining the MESD Board. They have engaged their efforts and passion for Murphy in their actions as board members. Willingly, the board members have attended training both internally and externally to improve themselves in their capacity as board members.

Also during this time, an entirely new administration team has been created. Along with a new Superintendent, there is a new Business Manager, new Director of Special Education & ELD Programs, new Director of Federal Programs, new Director of HR/Payroll/Benefits, new Director of Curriculum, and a new Board Secretary.

MESD has renewed educational partnerships allowing it to offer additional learning opportunities to its students and better serve its community.

As you can see, through extensive financial, structural, organizational changes, Murphy has progressed significantly towards providing an educational environment that our community deserves. Given the strong financial performance, fewer audit findings in FY20, favorable projected results for FY21, and a stable school board, the administrative team believes MESD is prepared to move out of receivership.