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Kingman USD adopts FY2026 budget while federal hold on funds threatens 21st Century after‑school programs

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Summary

Board adopted a proposed FY2026 budget; administrators said an Arizona Department of Education notice that some U.S. Department of Education funds are on hold could remove about $700,000 in federal support and put 21st Century Community Learning Center programs at Mount Tipton and Black Mountain at risk.

The Kingman Unified School District Governing Board adopted a proposed budget for fiscal year 2026 during a public hearing and regular meeting on July 8, while district officials warned that a federal hold on several U.S. Department of Education grants could reduce funding for after‑school and other programs.

Director of Business Services told the board the district’s revenue control limit is roughly $55.7 million, plus a 2% state inflation increase that adds about $1 million; the total state revenue was described at about $59.5 million when carryover is included. The district estimated M&O carryover at approximately $5.8 million and capital carryover around $3.5 million. Superintendent Gretchen Dorner and district staff said they currently expect to use a portion of that carryover in FY2026 but cautioned against depleting reserves.

Administrators said the district lost about 200 students between FY2024 and FY2025, a reduction that equates to roughly $1 million in state funding. Dr. Dorner said enrollment projections remain fluid: several high schools appeared to be adding students in pre‑enrollment queues (Lee Williams High at about 1,000 students, Kingman High at about 900 and Cola at about 250, with roughly 250 additional students in inbound queues across those sites).

The board heard that the Arizona Department of Education notified districts a hold has been placed on several federal awards from the U.S. Department of Education; the district estimated the hold affects about $700,000. District staff said the 21st Century Community Learning Centers grant for Mount Tipton and Black Mountain is currently on hold and may be dissolved, though ADE had not made a final determination at the time of the meeting. The hold would primarily affect after‑school programming, family engagement, tutoring and related activities. District staff said they are exploring rural school funding as a partial backstop and reviewing options to cover staff salaries if federal funds do not arrive.

Board members asked how long carryover funds can be used to restore services. The district cautioned that continued use of reserves at the present rate could exhaust carryover within a few years and stressed the need for future revenue to match or exceed expenditures. The board voted to adopt the proposed FY2026 budget after the public hearing and returned to regular session to finalize the adoption.

Superintendent Dorner said the district will monitor average daily membership (ADM) monthly, report revised ADM and budget changes at future workshops, and notify the public of updates from ADE regarding the federal funds hold.