Chandler Unified board adopts 2024–25 budget revision after enrollment drop; approves internal line-item flexibility

The Chandler Unified School District governing board on May 7 unanimously adopted the district's second revision to the 2024'25 annual expenditure budget, reflecting a drop in average daily membership, adjustments to state and federal grants, and updated carryover and capital figures.

"This is the last time you'll see the budget revision for 2425," budget presenter Mrs. Berry told the board as she opened the public hearing and slideshow on the revision. The board approved the revision following staff discussion and questions from several board members.

The revision reflects a net enrollment decline and related funding changes. District staff reported an average daily membership (ADM) of 39,984 in the final revision, down from 41,102 in the prior fiscal year and lower than the district's adopted projection of 40,702. District staff said the aggregate reduction of about 1,118 ADM includes roughly 74 ADM adjustments tied to fiscal year 2023'24; the most recent change from the December revision was a decline of 28 ADM. Mrs. Berry said the funding reduction tied to the latest 28-student adjustment was $759,911 and that some categorical weights (for example, special categories such as gifted identification) were underreported in state data and are still being reconciled.

Staff outlined line-item and fund changes across three principal categories: maintenance and operations (M&O), federal and state projects (grants), and other funds (including auxiliary, debt service and capital). Key figures presented by staff include: - A revised maintenance-and-operations base and weighted calculation that produced a total of $286,659,205 before one-time supplements; after a newly allocated one-time supplement from the state, the revised M&O total rose to $288,530,285. - An increase of $1,804,972 tied to a one-time legislative supplement and district additional assistance allocations the district had sought at the state level. - Net changes to federal and state grant budgets, including decreases in some Title allocations (Title I, Title II) and increases where carryover and final awards were higher than projected; staff reported an overall adjustment across grants and other funds that raised the district's total budget from $636,339,993 (December revision) to $638,694,383, an increase of $2,354,390.

Mrs. Berry and other staff emphasized that many grant figures reflect carryover, final allocations or completion reports that arrive after the district submits its initial budget. She also described adjustments to student-activity, tax-credit and auxiliary accounts that commonly appear as negative interim balances and are reconciled in the annual financial report.

Board members asked for detail on two subjects highlighted during the hearing. Board member Mr. Rohrs asked whether the reported drop in gifted funding was a headcount issue; Mrs. Berry said it appears to be a reporting issue in the state data feed and that district staff are working to reconcile the roughly 3,400 identified gifted students so those weights can be restored. Board member Mr. Heap asked about the causes of the ADM decline; staff said exit information is limited by state privacy rules and noted a combination of factors (homeschooling, private school, ESA use, family moves tied to employment) contribute to net changes.

The board approved two formal actions tied to the budget work that evening: - Adoption of the 2024'25 District Annual Expenditure Budget Revision No. 2 (item 11.01). The motion to adopt was made by Mr. Rohrs, seconded by Mrs. Mendoza, and passed unanimously by voice vote. - Authorization to exceed maintenance-and-operations fund subsections when necessary (item 11.02). That formal authorization, a routine compliance step required to avoid audit findings when subsection coding adjustments or small overspends occur, was moved by Mr. Heap, seconded by Mrs. Motson, and also passed unanimously.

During discussion of the subsection authorization, district staff said the measure does not allow the district to exceed its overall maintenance-and-operations appropriation; it permits limited reclassification or overspending within subsections provided the total M&O appropriation is not exceeded. Staff framed the request as a recurring procedural action that prevents audit findings and permits routine year-end adjustments and coding corrections.

Staff also summarized other budget updates: debt service figures were adjusted to reflect principal and interest payment timing; capital budgets were updated in light of capital plans and 2024 bond activity; transportation, fueling and utilities were increased where actual expenses exceeded earlier projections; and the district set aside instructional improvement dollars to provide schools with $15,000 each to support tiered literacy materials and other classroom needs.

Board President Serrano and Superintendent Narducci thanked staff for the work on the budget and noted ongoing uncertainty in some state and federal funding streams. Mrs. Berry and staff said they are monitoring possible state-level changes tied to Proposition 123 funding and to proposals that could alter how some state or federal dollars are distributed. Staff said entitlement grants for 2025'26 are largely forward-funded and that grant applications are in progress; the district will report any substantive changes back to the board.

The budget revision and the subsection authorization are effective immediately as board actions. Board members and staff said final accounting and the annual financial report will reconcile carryover items, student-activity accounts and any remaining differences before the fiscal year closes.

Votes at a glance - Consent agenda (routine contracts, donations, interagency agreements): motion by Mrs. Motson; passed unanimously. - Item 11.01: Adopt 2024'25 district annual expenditure budget revision number 2. Motion by Mr. Rohrs; second by Mrs. Mendoza; outcome: approved unanimously. - Item 11.02: Authorize exceeding fund subsections within maintenance and operations when necessary (compliance authorization). Motion by Mr. Heap; second by Mrs. Motson; outcome: approved unanimously.

The board recorded no amendments to the adopted budget in the public meeting. Staff said any remaining technical adjustments will be included in the annual financial report, which the governing board reviews later in the year.

Ending: The district will present finalized reconciliations and the annual financial report in coming months; staff reiterated they will notify the board if state or federal allocations change materially for 2025'26.