District presents proposed fiscal‑year 2026 budget; CFO projects carryforward and flags federal funding declines
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Summary
Phoenix Elementary District staff presented the proposed FY2026 budget, highlighting a projected $1 million carryforward, state revenue base increases, sunset of ESSER funds, and planned use of lease revenue and overrides to support staffing and capital needs. No final adoption occurred at this meeting.
District business officials presented the Phoenix Elementary District proposed fiscal‑year 2026 budget on June 24 and outlined key revenue assumptions, projected reserves and planned priorities.
The district’s baseline state funding assumption for FY26 was described as a 2% increase to an unweighted ADM base of $5,113.26 per pupil under ARS 15‑901. The CFO said the district used a conservative enrollment assumption (about a 200‑student decline) to compute weighted ADM and a base revenue control limit. The district projected a budget balance carryforward for the current year of about $1 million, with staff noting that number may increase after accounting adjustments and encumbrance close‑out.
Officials highlighted several risks: ESSER federal pandemic relief funds have sunsetted and federal grants declined; Classroom Site Fund allocations fluctuate with state tax revenue; and the district faces long‑term pressure from enrollment declines. The CFO said the district plans to use existing and proposed lease revenue and voter overrides (M&O and UCO/capital override) to support staff retention and recruitment efforts, curriculum purchases and transportation planning tied to the board’s guardrails. The CFO also reminded the board that the UCO override ($3 million) is set to sunset unless voters reauthorize it in November.
Board members pressed for clarity on the carryforward projection, adjustments to the audited financial report for FY2024 and timing for formal budget adoption. The CFO said staff will close and, where necessary, revise the FY2024 AFR (audited financial report) to correct accounting entries (for example, E‑Rate reimbursements that had been charged to M&O) and that revised numbers will be available in the coming months. The district will present an adopted budget for board approval in the next meeting cycle and may file amendments later in the year if the state adopts a different budget.
No vote to adopt the proposed budget occurred at the meeting; staff said an adopted budget and possible future revisions will be brought to the board for formal action.
