The Arizona Auditor General’s office has released data showing that one-third of the state's public schools are at financial risk due to reduced birth rates and decreased funding. The data also revealed that 69 of 207 Arizona school districts are facing financial difficulties due to lower birth rates. School district funding is dependent on student enrollment. In fiscal year 2025, Arizona saw a net increase of two schools, with six schools opening and four closing. A district that closed three schools last year saw its enrollment decline 15% between fiscal year 2020 and 2025. Katie Ratlief, executive director of Common Sense Institute Arizona, said school districts overbuilt classrooms and school buildings while enrollment declined. She also noted that declining school districts nearly doubled their capital expenditures, a bigger hike than those growing ones.