Cave Creek Unified board approves revised 2024–25 budget after finance staff outline carryover and timeline

The Cave Creek Unified School District Governing Board on May 13 approved a revision to the fiscal year 2024–25 budget after a presentation by Dr. Pletnick, the district’s business officer, outlining updated state funding, carryforward estimates and next steps.

Dr. Pletnick told the board that after the state’s 100‑day student count and the district’s November Annual Financial Report (AFR), the district’s maintenance and operations (M&O) revenue control limit increased; the district’s M&O capacity rose to roughly $34.6 million, driven by an updated state funding estimate and a larger carryforward than originally projected. He said carryforward -- the amount remaining after final expenditures are tallied in the AFR -- was estimated at about $3.7 million, up from the $1.8 million estimated when the budget was adopted last June.

The presentation explained that the district’s unrestricted capital budget limit (UCBL) is roughly $1.775 million after accounting for last year’s capital expenditures, interest earnings and a $2.0 million capital-to-M&O transfer the district used this year. Dr. Pletnick said the $2.0 million transfer reduced the available capital for the year and that future budgets will scale back how much is moved into M&O to protect capital carryforward.

Why it matters: Board members pressed finance staff on how much of the district’s operating safety net (carryforward) is being used and on the timing of future budget steps. Dr. Pletnick warned that continued use of carryforward to cover recurring operating costs risks shrinking the district’s reserve and could require budget revisions later in the year. He laid out a timeline: the governing board approves a May revision, the district will submit the revision to the Arizona Department of Education, continue work on the FY 2025–26 proposed budget in June, and prepare for possible September or December revisions depending on state budget action and final AFR results.

Details from the presentation included state funding calculated from the 100‑day average daily membership (ADM), currently estimated at about $28.5 million for M&O (the exact ADM will be finalized by the state this summer). Dr. Pletnick noted the state’s district additional assistance (DAA) and meal funding added roughly $468,661 to the district’s revenue estimate; he cautioned these amounts finalize later, typically in June. On the capital side, the AFR showed capital expenditures of roughly $843,000 last year versus an estimated $860,000, producing a modest capital carryforward.

Board discussion: Member Walker asked whether the state might provide higher funding than anticipated; Dr. Pletnick said only modest inflationary increases were expected and that capital funding was not expected to grow. Member Moore asked for specifics on why carryforward rose compared with prior estimates; finance staff explained that unfilled positions, lower-than-anticipated spend on some purchase orders and the closing of positions contributed to a higher carryforward than originally estimated. Board members also discussed the district’s recent school-closure actions and whether those changes and other staffing consolidations would produce sustained savings.

Outcome and next steps: The board moved and seconded approval of the revised FY 2024–25 budget and voted to adopt the revision. Dr. Pletnick said the district will finalize FY 2025–26 planning and deliver a proposed FY 2025–26 budget to the board in two weeks, then seek adoption two weeks after that. He warned that the AFR and the state’s “Budget 75” report in October will determine the final carryforward and could trigger a December revision for FY 2025–26 if necessary.

Ending: The board approved the revision and staff said they will continue closing encumbrances, refining year‑to‑date expenditures and presenting updated encumbrance and carryforward estimates to the board as closing occurs.