Kyrene board approves proposed 2025–26 budget, calls public hearing for July 8

The Kyrene Elementary District Governing Board on June 24 voted 5–0 to approve a proposed budget for fiscal year 2025–26 and called a public hearing on July 8 to consider final adoption before the state deadline.

Chris Herman, who presented the budget materials to the board, told members that the state Legislature had not yet passed a budget and that the district prepared its proposed figures using the best available estimates. Herman said the timing is unusual but that statute-driven elements — including an annual inflation increase — are expected to occur even if final appropriation timing remains uncertain.

Herman summarized the district's financial picture: total projected revenues of $191,000,000 versus total expenditures just under $223,000,000 across all funds; $7,400,000 in one-time items included in the 2025–26 budget; ongoing general-fund revenues of $112,200,000 and ongoing general-fund expenditures of $102,500,000, which he said shows the general fund is structurally balanced when one-time items are separated. Herman also said the district has committed $4,200,000 in permanent expense reductions for 2025–26 to address expected enrollment-related funding losses.

Herman told the board that school districts must submit adopted budgets to the state by July 15 and that Kyrene will call a public hearing on July 8 and, after at least 10 days, return to adopt the final budget. He said the district can make adjustments later in the year if the Legislature enacts changes and that reserve balances provide flexibility to respond to shortfalls.

Board members asked about where the district would receive further guidance if legislative changes occur. Herman said guidance could come from the Arizona Auditor General, the Arizona Department of Education, the district's external auditors or outside counsel, depending on the nature of any statutory or funding changes.

The board approved the proposed budget by a 5–0 vote. Vice President Trina Nelson moved to approve the proposed budget; Cedric Collins seconded. The board then voted 5–0 to call a public hearing and a board meeting at 6 p.m. July 8 in the governing board room to adopt the budget.

Herman said the district will prepare an annual budget report for submission to the Association of School Business Officials International for a meritorious budget award after adoption.

Because the state budget remained unsettled at the time of the meeting, Herman and Superintendent Laura Tenas told the board they would notify the board and adjust plans if the Legislature provides new appropriation language or timing that affects district revenues.