Phoenix Elementary District adopts fiscal 2025–26 budget with $1M M&O carryforward

The Phoenix Elementary District Governing Board adopted the district's fiscal year 2025'26 budget after a public hearing on the proposal and a presentation from district finance staff.

Mister Whittle, a cabinet member presenting the budget, told the board the state'level budget signed by Governor Hobbs matched the district's earlier projection of a 2% constitutional increase: "We projected our base level amount at the 2% constitutional increase. That's exactly what we got." He said a 6'cent increase in route-mile funding will add about $800 to the district's budget and described other technical changes as immaterial to the decision to adopt the budget as proposed.

Whittle said the state extended the aggregate expenditure limit (AEL) for two years and cautioned the AEL formula has not incorporated recent inflation trends. He noted Proposition 123 (referred to in the meeting as "Prop 123") had sunset in the most recent fiscal year and that district finance officers in Maricopa County will meet on July 21 to learn how the new formula will affect districts. The district expects a December revision after final state forms are issued; Whittle said staff used the auditor general's preliminary forms for the proposed and adopted budgets and will convert to final forms in the December revision.

On carryforward amounts, Whittle said the district projects about $1,000,000 in maintenance-and-operations (M&O) carryforward into FY26 and about $22,000,000 in capital carryforward. He corrected an earlier reading of a line item during his presentation and clarified that capital and M&O carryforwards are tracked separately. Whittle also told the board the auditor general's office has flagged a high risk when districts transfer capital funds to M&O; he said the district did not plan a similar full transfer on the adopted budget and that the district would avoid such transfers to preserve fiscal stability.

After the presentation the board voted to approve the district's proposed FY25'26 budget as the adopted budget. The roll-call vote was three in favor with no recorded dissent.

Votes at a glance: the board also took routine votes earlier in the meeting to adopt the agenda, approve the consent agenda, adjourn to the public hearing where the budget was presented, and adjourn the meeting; each of those motions passed on unanimous roll-call votes of present members.

The board will review a December budget revision after the auditor general releases final forms and additional state guidance; staff indicated they expect to bring those updated numbers back to the board later this year.