Kyrene board adopts proposed fiscal 2025–26 budget after public hearing; state budget changes provided context

The Kyrene Elementary District Governing Board adopted the district’s proposed budget for fiscal year 2025–26 at its July 8 meeting, approving the plan unanimously after a statutorily required public hearing.

Chris Herman, associate superintendent and chief financial officer, summarized the budget and recent state actions that informed it. He said Arizona’s legislature passed its state budget June 27 with a 2% inflation funding increase for K‑12 that the district had already accounted for. Herman listed state appropriations the district considered while finalizing figures, including a $200 million allocation for school building renewal grants, $29 million for district and charter assistance, $37 million for increased Group B (poverty index) funding, and $3.8 million for free lunches to those qualifying for reduced‑price meals. Herman also said Proposition 123 funding continued at previously distributed levels, funded by roughly $300 million in state aid plus about $72 million from state trust lands.

Key budget figures: Herman told the board the district’s ongoing operating general fund expenditures total approximately $112,000,000 and reflect a permanent reduction of $4,200,000 tied to enrollment declines. The presentation identified $7,400,000 in one‑time expenditures intended for nonrecurring investments drawn from expense savings in prior years; staff said that separation between ongoing and one‑time items preserves structural balance for future years.

Herman also noted that the state legislature waived the aggregate expenditure limit for fiscal years 2026 and 2027, allowing districts to spend budgeted amounts without a permanent statutory fix. He reminded the board that the state reporting deadline is July 15 and that the district will prepare a fiscal year report for possible submission to the Association of School Business Officials (ASBO) for a meritorious budget award.

Board vote and context: After the public hearing, the board moved to adopt the proposed budget. The motion was made by Vice President Trina Nelson, seconded by Board Member Bunny Davis, and carried 5‑0.

Board and community questions: Board members asked whether a recent federal holdback of funds would affect Kyrene; Herman said the district has reserve balances and $7.4 million in one‑time funding it could use to bridge shortfalls and that, at present, the freeze would not force changes to the adopted plan. Board members also discussed utility cost pressures, with Herman noting utility increases of roughly $1.5 million and that the 2% statewide inflation allocation equates to about $1.8 million for the district.

Ending: The adopted budget separates recurring operational costs from targeted one‑time investments and preserves reserves to manage short‑term uncertainties. Staff will finalize state reporting by the July 15 deadline and return with an annual budget report in the coming months.