Litchfield Elementary revises FY25 budget, recognizes $1.1M added for special education; trustees approve several items

Litchfield Elementary School District trustees on Tuesday approved a second revision to the district’s FY2025 expenditure budget that raises M&O funding by about $1,100,000, driven largely by higher weighted student counts for students with special education needs.

The revision, presented by CFO Vaughn, also recognizes a onetime state aid supplement of about $545,000 that the district plans to apply to capital projects, including reducing the bond-funded portion of a modular classroom project at Palm Valley Elementary.

Why it matters: The added recurring M&O dollars reflect state funding that follows changes in student classifications; a single student reclassified into higher-weighted special education categories can change the district’s funding materially. The one-time state capital funds are constrained to capital uses, the district said, and were earmarked to limit the use of bond proceeds on an already-planned modular classroom project.

Details of the revision

CFO Vaughn told the board the increase in the M&O budget results from changes in the district’s average daily membership and weighted student count tied to student characteristics and special education classifications. He summarized the overall effect: "These changes in average daily membership and weighted student count are increasing the M and o budget by a little over 1,100,000.0." Vaughn said the state recalculates annual funding monthly based on the student counts districts report.

Vaughn said the revision shifted budget capacity away from purchased professional services or contracted staffing into salaries, benefits and supplies because earlier projections overestimated the need for contracted services. He added that an increase in custodial supplies drove some of the supplies growth. On capital, Vaughn said the district recognized an additional $545,000 in onetime state aid that had not been communicated in time for an earlier revision and that the district intends to use that money to help pay for modular classrooms at Palm Valley and to avoid shifting more bond funds to that project.

The presentation listed ongoing or recently completed capital projects that the district expects will largely consume capital outlays this year: Chromebook replenishment (about $600,000), rollout of Promethean interactive boards, completion of modular classrooms previously started, installation of walk-in freezers at two sites, playground installation at L. Thomas Heck, district-wide time clock replacements, Apple-device refreshes, and curriculum and assessment investments. Vaughn said the district had begun procurement work for a district-wide IT network replacement and expected capital spending this fiscal year to finish just under $5.5 million if current projects close before June 30.

Board questions and clarifications

Board member Moran asked whether the higher special education weights were caused by students newly enrolling in the district or by reclassification of current students after testing. Vaughn replied: "All of the above. So as new students come to us and they get categorized..." and explained that both new enrollments and updated classifications can change funding because the state recalculates funding monthly.

Trustees moved quickly through the discussion and had no additional changes to the presentation.

Votes at a glance

- Revision of FY2025 expenditure budget (Revision No. 2): Motion to approve the revision as presented; mover: Mr. Owens; second: Mr. Mikes. Vote: Miss Wallace — yes; Mr. Mikes — yes; Mr. Owens — yes; Miss Moran — yes; motion passes.

- Appointment of Special Education Director (Item 8.1): Motion to approve appointment of Tom Coyne as district Special Education Director; mover: Miss Moran; second: Mr. Mikes. Vote: unanimous; motion passes.

- Approval of revised job description for Food Service Technician Supervisor (Item 8.2/7.5): Motion to approve revised job description as submitted; mover: Miss Moran; second: Miss Wallace. Vote: unanimous; motion passes.

- Addendum to solar design/installation agreement (Troy Gilbert ES): Motion to adopt resolution authorizing an addendum to the district’s solar agreement and authorize execution of related documents; mover: Mr. Mikes; second: Mr. Owens. Vote: unanimous; motion passes.

- ASBA delegate appointment: Motion to appoint Miss Wallace as the district’s Arizona School Boards Association delegate and Mr. Mikes as alternate. Vote: unanimous; motion passes.

Context and next steps

CFO Vaughn noted the district’s capital and recurring revenues are roughly aligned for FY25 if current projects wrap up before the fiscal year end. The onetime state aid is designated for capital and cannot be moved into M&O, the board was told. The board’s approval allows staff to finalize budget changes and proceed with the planned capital and operational adjustments for the current fiscal year.

(Reporting note: budget figures and project lists are drawn from the district’s presentation to the governing board; specific line-item allocations and final year-end spending will be reflected in the district’s audited financial statements and future board updates.)