Sierra Vista Unified officials present draft FY25–26 budget; board hears enrollment drop and fund-shift strategy

Sierra Vista Unified District interim Superintendent Terry Romo and business official Janet Klein presented the district’s proposed fiscal year 2025–26 budget during a public hearing called to order at 5:30 p.m., when the board noted four members were present and one (Kim Robinson) was absent. The presentation stressed that declining enrollment and the end of federal ESSER funds are major drivers of the draft budget and that the document filed with the Arizona Department of Education is an initial submission that must be revised as new revenue and roll-over data arrive.

Klein said the proposed budget is an initial draft that must be accepted by July 15 and then revised as updated figures arrive: “This is just the initial budget that is due to be accepted, by July 15 and then gets posted to ADE, and then we immediately begin revising the budget based on all the new information that we have gathered since it was put together.” She told board members the district will post the document to ADE and to its website for public review.

The budget presentation identified enrollment as the principal fiscal driver: district staff reported a projected decline of 156 students between FY2025 and the FY2026 projection, while noting the projection does include an expected increase of 26 kindergartners and 50 high-school students. Klein and other staff said that per‑pupil funding and the loss of one‑time federal funding will materially affect the maintenance and operations (M&O) budget.

Klein described several specific funding issues: federal ESSER funds have ended and federal project revenue is lower; some capital balances from fund 610 (capital) are being transferred into M&O as a bridge strategy for FY2026; CTE funding arrives in fund 596 and other grants (Title I–IV, IDEA, E‑rate, impact aid, Indian gaming instructional improvement) are accounted for in grant pages though some amounts remain projections until state/federal notices are final. She also said the district used a consultant spreadsheet prepared with assistance from “Heinfeld, Meach” to compile the draft figures.

Board members asked line‑item questions about a roughly 49.9% increase shown for general administration in one category and about the absence of a permanent teacher‑salary increase in the draft. Staff said some increases previously were one‑time retention stipends paid during ESSER years and that a small salary adjustment came at the start of FY2025; hourly staff received additional personal leave as a nonmonetary benefit. Staff indicated the draft contains encumbrances for positions that may be removed in revisions and that the administration will update the figures when vacant positions are confirmed as not continuing.

Janet Klein described the budget process and timeline, including that the district must file the initial budget forms with ADE by July 15 and will begin formal revisions thereafter as final state and federal allocations are confirmed. Klein also invited board members and the public to submit questions after the hearing for further research.

The board adopted the meeting agenda at the start of the hearing (motion, second; vote recorded as “Passes 4 0”). No formal motion to adopt the FY2025–26 budget was recorded in the transcript of this hearing. The meeting concluded with a motion to adjourn (motion, second; vote recorded as “Passes 4 0”).