Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget And Finance topic
No spam. Unsubscribe anytime.
Peoria Unified CFO outlines FY2026 budget pressures, proposed pay increases and one‑time funding uses
Summary
CFO presented a FY2026 budget preview on June 11: declining enrollment and a projected state funding timing issue create a roughly $3M gap; staff proposed targeted raises, classroom site fund investments and using one‑time reserves to bridge near‑term shortfalls.
Peoria Unified finance leadership presented a draft fiscal 2026 budget framework to the governing board June 11, saying the district faces enrollment declines and uncertainty in final state funding that together create a near‑term budget gap staff is working to bridge.
Miss Myers, presenting the revenue and expenditure update, said the district currently models a roughly 1,000‑student decline for FY‑26 and that preliminary budget projections showed a combined impact of about $3.0 million from revised enrollment and current assumptions. She also warned the legislature could delay or partially pay the June state aid payment if a statewide budget supplemental is not approved — a risk ADE has signaled districts could face in mid‑June.
To respond, the district is proposing a mix of ongoing and one‑time measures: faculty and staff salary adjustments that the board previously approved in March (a 2–5% structure and a new minimum teacher placement of $52,000), increases funded through Classroom Site Fund (a 25–35% increase to the portion of eligible exempt certified employees funded from Classroom Site Fund and a $500–$2,000 monetary add‑on by years of service), a bus‑driver hourly increase to $24 (with benefits), and a recommended use of reserves and a portion of the district’s pooled insurance group net position to smooth FY‑26 contributions.
CFO Myers told the board roughly $12.0 million of FY‑26 spending has been supported with one‑time funding sources and will require future resolution unless revenue increases. As near‑term mitigation staff proposed using about $6.7 million from the district’s Valley Schools employee benefit group net position plus other reserves and drawdowns; the board discussed formalizing a carry‑forward policy to clarify reserve floors and re‑build mechanisms.
On staffing directed at literacy, the budget team recommended using additional Classroom Site Fund capacity to hire 15 classroom teachers to support literacy intervention at grades 4–5. That hiring is estimated at about $1.2 million annually and would be a targeted investment tied to ELA/literacy KPIs discussed elsewhere at the meeting.
Board members asked for continued updates and requested a formal reserve/carry‑forward policy and clearer monthly reporting on key budget drivers. CFO Myers said the formal proposed budget will be presented to the board on June 25 with adoption scheduled at the July meeting; additional budget revisions are scheduled in September, December and May as required by statute.
The presentation also noted the district’s long‑standing credit line with the Maricopa County treasurer and said Peoria had not needed tax anticipation notes in recent years but is monitoring the cash‑flow timing risk if the state delays June payments.
