Gilbert Unified releases FY2025 unaudited annual financial report; board approves item

The Gilbert Unified District Governing Board on Oct. 14 reviewed an unaudited FY2025 annual financial report and school-level reporting form covering operating and capital revenue and expenditures, classroom site fund changes, teacher compensation and class-size averages, bond spending and deferred-maintenance reductions. Board members voted to approve the report as action item 6.01.

Finance presenter Jackie Matinen said, "This is an unaudited report of our spend from last fiscal year." Bonnie Betts, who introduced the presentation, told the board the report is "required by statute" and highlighted staff work to compile the large data set.

Why it matters: the presentation updated the board and public on how override and other revenues were used during FY2025, showed changes in special education and classroom-site fund spending that affect classroom budgeting, and described progress on bond-funded capital projects and deferred maintenance that influence facility safety and the district's long-range capital needs.

Key figures and budget changes - The district reported it generated just over $36,000,000 from the 15% M&O override during FY2025; the override continues through FY2033 with a phased reduction beginning in FY2030. - Revenue from unrestricted and M&O capital by source decreased by about $3,000,000 year over year, while operating and unrestricted capital spending increased by about $4,300,000. - Salaries and benefits charged to M&O decreased by about $6,500,000 in FY2025, while compensation paid from the Classroom Site Fund increased by about $10,000,000; staff explained that employees eligible for Classroom Site Fund receive 100% of those compensation increases through that fund. - Special education (SPED) costs rose; SPED tuition and related costs increased approximately $1,700,000 to $1,900,000 and total SPED spending rose by about $2.5 million. - The district reported spending down fund balance by about $1,800,000.

Class sizes and staffing The report compared planning ratios with actual average pupil–teacher ratios. Presenters stressed averages exclude librarians, specialists and special-education classrooms (which typically have much smaller enrollments) to avoid skewing the metric. The board was told the district continues to monitor and, when thresholds indicate need, may add sections, reassign teachers between schools or provide extra adult support in classrooms to address high enrollments.

Teacher compensation Presenters reported the district raised beginning teacher pay significantly since 2019. The beginning teacher salary rose from $43,533 in the 2019–20 school year to $54,065 at the start of fiscal 2026, an increase of more than $10,500 since the 15% override was first approved.

Food service and nutrition Nutrition services increased its ending fund balance in FY2025 in part because the governing board approved a modest price increase for school meals in the 2024–25 school year and because targeted campus eligibility for universal free meals (Harris was cited as serving 100% of students free) improved revenue. Staff also said the department worked to right-size labor costs after universal free meals changed meal-service patterns.

Bond spending, capital projects and deferred maintenance Presenters reported nearly full spend of the 2019 bond authorization and said FY2025 bond spending included roughly $4,900,000 of bond-funded work; some projects remain encumbered into the next fiscal year (notably transportation vehicle purchases). The district pointed to targeted capital work this summer, including tracks, asphalt repairs, chillers and security fencing.

On deferred maintenance, staff said the district's Facility Condition Index (FCI) dropped from 10.7 in 2023 to 4.6 in 2025 after construction work and a data cleanup of the asset database; the reported deferred-maintenance backlog decreased from about $198,000,000 (earlier assessment) to about $89,600,000 in 2025. Officials said the reduction reflects both completed projects (roughly $40,000,000 of new work since 2023) and more exacting verification of asset ages and needs rather than only spending.

Debt and tax-rate context As of June 30, 2025, the district reported outstanding debt just under $87,000,000 and described that earlier bond sales and accelerated spending had reduced long-term interest costs, saving taxpayers an estimated $27,000,000 in interest compared with alternative schedules.

Board action The governing board voted to approve action item 6.01, the fiscal-year 2025 annual financial report and school-level reporting form. The transcript records a motion and a second and a voice vote in favor; the audio shows "Aye" and no opposition was recorded in the meeting minutes.

Ending Board members and staff thanked finance, operations and transportation teams for the work that produced the report and for the projects completed over the summer. The board moved on to other business, including an executive session later in the evening.