Kyrene board adopts FY25 budget revision, approves 1% raises for staff and a $1,000 retention stipend

At a May 13 regular meeting, the Kyrene Elementary District governing board adopted a final revised fiscal year 2025 budget at a public hearing and approved several personnel and procurement actions intended to stabilize staffing.

Budget revision adopted Brian Loughrey, the district’s director of finance, presented the proposed final FY25 revised budget and said it represents “the maximum budget capacity allowed by law.” He told the board the net change from the adopted budget is approximately $5.8 million, driven by adjustments across the general budget limit, unrestricted capital (DAA) and federal projects. Specific points Loughrey highlighted included: - General budget limit (maintenance & operations and transportation): net increase of about $2,500,000, with the base support level reduced by about $247,000 because of lower student counts and updated special-education weight estimates. - District Additional Assistance (DAA): staff returned funds to the DAA capital account (rather than transferring them to maintenance and operations) because those dollars are expected to be needed for future capital work; that decision added about $1.7 million to the DAA balance. - Carry-forward true-ups and other adjustments: final carry-forward and override true-ups increased capacity by about $3.8 million. - Grants and federal awards: final allocations and carry-forward for federal grants, plus a new multiyear grant to fund 16 school counselors (about $2.6 million over FY25–26), raised federal and state grant budgets by about $5.0 million from adopted projections.

Loughrey cited Arizona Revised Statutes section 15-905 as the statutory requirement that boards adopt a final revised budget by May 15. After public notice and a hearing, the board voted to approve the FY25 budget revision (motion by Vice President Trina Nelson; second by Member Amy Satri). The motion passed unanimously, 5–0.

Procurement and audit items - ADE procurement review: Loughrey reported that the Arizona Department of Education completed a procurement review of the district’s food services program for FY24 and issued no findings. The board approved acceptance of that report by roll-call vote, 5–0. - Purchasing authorization (cooperative contract): The board approved use of a cooperative contract (SAVE contract 23-06 USD 1 awarded by Tucson Unified School District) to procure university instructors for special-education staffing. Assistant superintendent and labor negotiators explained the district uses contract providers in areas—particularly special education and transportation—where recruiting certified staff has been difficult. The motion to use the cooperative contract passed 5–0 (mover: Member Bunny Davis; second: Member Cedric Collins). KEA president Dahlia Leighton said the association is disappointed about reliance on contract staff but acknowledged the recruitment challenge.

Employee compensation and retention The board approved a 1% salary-schedule lift for three employee groups for the 2025–26 school year: educational support professionals (ESP), certified teachers and administrators. - ESP schedule lift cost: approximately $360,000; starting pay for an ESP on the A10 band would rise from $15.51 to roughly $15.67 per hour. - Certified teachers schedule lift cost: approximately $716,616; the stated starting teacher salary would increase from $49,909.37 to about $50,436.50 (not including performance pay or other stipends). - Administrative schedule lift cost: approximately $126,399. - Total estimated cost to lift all schedules by 1%: roughly $1,200,000.

Board members and district leaders emphasized the 1% increase reflects current budget constraints. Assistant Superintendent Lisa Gibson and Chris Herman framed the 1% as the maximum sustainable ongoing increase based on FY26 budget assumptions; they said any additional state funding later this summer would prompt immediate bargaining/meet-and-confer discussions and could result in revised compensation actions before the school year begins.

Retention stipend To address near-term staffing retention, the board approved a one-time retention stipend for FY26 paid in two installments: - $1,000 total for full-time employees (two payments of $500, one in December and one in June). - $500 total for employees working less than 0.5 full time equivalent (two payments of $250). Talent management estimated the stipend cost at about $2,200,000, funded from underspending (vacancy savings) in FY25. The motion passed 5–0 (mover: Member Cedric Collins; second: Vice President Trina Nelson).

Board and union reaction KEA president Dahlia Leighton said the association was disappointed that additional funding was limited but appreciated transparency and the district’s willingness to reconvene if the Legislature provides new funds. District staff and board members repeatedly underscored that any additional state funding would be reviewed with employee groups and could be routed to salary schedules (if ongoing) or stipends (if one-time).

Votes at a glance (selected actions taken May 13, 2025) - FY25 final budget revision — approved 5–0 (motion: Vice President Trina Nelson; second: Member Amy Satri). - ADE food-services procurement review (FY24) — accepted 5–0 (roll-call vote). - Use of cooperative contract 23-06 (university instructors) — approved 5–0 (motion: Member Bunny Davis; second: Member Cedric Collins). - 1% lift, ESP salary schedules — approved 5–0 (motion: Vice President Trina Nelson; second: Member Amy Satri). - 1% lift, certified salary schedules — approved 5–0 (motion: Member Bunny Davis; second: Member Cedric Collins). - 1% lift, administrative salary schedules — approved 5–0 (motion: Member Amy Satri; second: Member Trina Nelson). - FY26 retention stipend (one-time) — approved 5–0 (motion: Member Cedric Collins; second: Vice President Trina Nelson).

What the board said about future steps Board members asked staff to return quickly if the state provides new ongoing funds so the district and its employee associations can negotiate how to apply those funds. Chris Herman and Lisa Gibson said they would prepare information for any rapid reconvening of bargaining teams and for board consideration.

Ending District leaders told the board the budget revision secures statutory budget capacity while staff continue to monitor enrollment, grant awards and state budget developments that could change funding available for staff compensation.