School District adjusts tax rates and rolls over $5M for CTE renovations

In a recent meeting of the Chandler Unified School District Governing Board, key financial updates were shared that could significantly impact the district's future operations and funding. As the board convened, the atmosphere was charged with anticipation, as members discussed the implications of recent financial decisions and upcoming fiscal strategies.

One of the primary topics was the district's financial reserves, which are currently on a downward trend. The indirect cost fund is notably decreasing, alongside the building renewal fund, as expenditures have been made. This situation highlights the ongoing challenge of managing resources effectively while meeting the needs of the district's programs.

A significant point of discussion was the Career Technical Education (CTE) Division, which faced setbacks after the failure of a $5 million bond proposal in November 2024. This bond was intended for major renovations at several high schools to enhance CTE facilities. However, the board noted that the funds could be rolled over for future use if a new bond passes, allowing for potential improvements in the coming year.

Additionally, the board addressed the increase in debt service due to the sale of the final portion of the 2019 bond. This sale has raised the district's debt obligations, impacting the overall financial landscape. The board emphasized that these changes are driven by program needs and the right-sizing of revenues, reflecting a careful balancing act between available cash and necessary expenditures.

Tax rates were another focal point of the meeting. The overall tax rate for the upcoming fiscal year is projected to decrease from 5.65 to 5.36. This reduction is attributed to adjustments in both primary and secondary tax rates, influenced by state decisions and changes in assessed property values. The board clarified that while they can set tax rates, they do not control the assessed values of properties, which ultimately affect taxpayers' bills.

As the meeting concluded, the board's discussions underscored the complexities of school funding and the importance of strategic planning in navigating financial challenges. With the potential for future bonds and ongoing adjustments to tax rates, the Chandler Unified School District is poised to adapt to the evolving educational landscape while striving to meet the needs of its students and community.