Kyrene lays out FY26 capital plan: $42.7 million in recent bond proceeds, DAA and override funding to cover projects

Brian Loughrey, the district's director of finance, told the Kyrene Governing Board on May 27 that the presentation pulled together three capital plans and revenue assumptions that will fund school construction, technology and bus replacements in fiscal year 2026.

Loughrey said the district expects about $6,800,000 in District Additional Assistance (DAA) next year, with roughly $1,700,000 of that likely needed to shore up maintenance and operations, leaving about $5,100,000 for capital uses subject to later adjustment. "DAA is that capital funding provided by the state and has some flexibility," Loughrey said. He also noted that the district had recently received $42,700,000 from the first issuance of a voter-approved 2023 bond authorization.

The presentation explained how capital funds are restricted under the Uniform System of Financial Records and Arizona Revised Statutes and that Kyrene budgets capital across multiple fund types. Loughrey said the district typically spends about $27,000,000 a year on capital and curriculum needs but receives roughly $7,000,000 from state funding formulas, making local overrides and bonds essential.

Amy Gingell, director of academic equity and excellence, summarized the curriculum capital plan and five-year adoption cycle the district uses to time purchases and avoid overloading teachers. "We are currently not expecting any updates to the Arizona standards," Gingell said, describing how the district staggers adoptions, pursues multiyear vendor contracts to save money and buys consumable materials and blended-learning resources.

The technology portion of the capital override was presented by Damien (title not specified in the transcript). He described four technology buckets: devices (laptops, Chromebooks, iPads and specialty classroom equipment), curriculum-support hardware, software licensing and infrastructure such as network wiring and servers. "I always joke it's the things that make noise when it hits the table or the ground," Damien said, describing instructional equipment funded through the override. He added that licensing for key district systems (for example, the student information system and financial systems) is paid from capital override funds as well.

Mason Mead, director of facilities, reviewed the 10-year capital master plan tied to the 2023 bond categories: maintain schools, transportation and administrative. For FY26, facilities listed $14.3 million for construction projects, $1.6 million for instruments/equipment/furniture and $4.4 million for technology under the maintained schools category. The FY26 transportation budget includes orders for 10 new 81-passenger buses, 10 new 33-passenger special-services buses and five white-fleet vehicles for grounds and warehouse, with deliveries projected in early 2026.

Mead said several FY25 projects were completed (campus restroom renovations, LED upgrades, playfield and fitness-room work) and FY26 priorities include roof and skylight replacements, mechanical-yard renovations and safety and security upgrades at specific campuses. He noted the capital master plan is a fluid document: projects are added, deferred or reprioritized as needs change.

Loughrey and the presenters also described revenue dynamics: the capital revenues estimated for FY26 are lower than FY25 largely because no new bond sales are planned in FY26; the prior year included the $42.7 million bond issuance. The district continues to pursue state building renewal grants, but Loughrey warned statewide requests typically exceed available appropriations and that SFB (School Facilities Board) funding is not guaranteed.

Board members asked for clarification on curriculum adoption timing, the role of the long-range facilities planning committee in shaping capital decisions and whether the district is addressing artificial intelligence in instructional materials and licensing. Gingell said AI discussions are under way across curriculum and technology teams and would likely involve the board as policies are developed.

Where it matters: the district will rely on a mix of state DAA, the local capital override approved by voters and bond proceeds to fund school repairs, classroom technology and bus replacements in FY26. Bond proceeds from 2023 covered a major portion of FY25 capital work; FY26 will depend on existing fund balances and recurring DAA and override revenues.

Ending: District staff said they will continue to update the governing board as the detailed FY26 budget is finalized and as long-range facilities planning and enrollment changes affect capital priorities.