Board approves revised FY25 budget and tables employee stipend proposal

The Washington Elementary School District Governing Board voted May 8 to approve the district's revised fiscal year 2024–25 annual expenditure budget (Revision No. 2) and later tabled a separate proposal on one‑time retention and longevity stipends after extended public comment and board member discussion.

Board President Kyle Clayton called for the vote to accept the revised budget as presented; the motion passed after a second and a voice vote. The budget revision was presented by school finance staff, summarized changes to the district's maintenance and operation (M&O) and capital budgets, and explained why the revision is required by state statute before May 15.

The budget presentation noted a decrease in average daily membership (ADM) used for state funding calculations compared with the December revision but an overall increase in the district's revenue control limit by about $2.6 million due to several factors, including changes in student weighting, a late state allocation tied to Proposition 123 and an increase in carryforward estimates. The district's M&O limit was reported to increase by approximately $4.4 million; the capital (DAA) revision was adjusted by just under $60,000.

Board members asked follow‑up questions about the Annual Financial Report (AFR) timing, how ADM adjustments work, and where the public can find the full state budget forms. Finance staff said the full Arizona state budget forms and attachments are posted on the district website and to required county and state portals; staff also said they would look into translation/accessibility options for non‑English speakers on request.

Separately, the board considered a recommendation developed through interest‑based negotiations (IBN) for a one‑time $100 retention stipend plus $23 per year of service (eligibility and payout timing described by the committee). After multiple public speakers urged larger relief for employees and several board members described concerns about pay compression and the use of reserve funds, Vice President Lindsey Peterson moved to table the stipend item to gather additional information; the motion to table carried on a voice vote.

Votes at a glance - Revised FY24–25 annual expenditure budget (Revision No. 2): motion to accept as presented; outcome: approved (voice vote). Documentation: state budget forms attached to agenda item; statutory deadline noted. - Interest‑based negotiations recommendation (one‑time $100 retention + $23 per year longevity stipend): motion to table pending further information; outcome: tabled (voice vote).

Why it matters: The revised budget establishes how the district will allocate state, local and federal funds for the current fiscal year; changes to ADM, state allocations such as Proposition 123 and carryforward estimates affect the district's spending authority. The stipend proposal touched on longer‑term compensation concerns: several employees and union representatives told the board the proposal would not address salary compression or the loss of previous, larger one‑time payments, and some board members sought more detail before a final vote.

Background and details: Finance staff explained that ADM and student weighting (for example, special education or gifted designations) can change revenue calculations between required revision points and the final AFR; some increases shown in the revision were attributable to delayed state calculations and one‑time allocations. During the public hearing portion of the meeting, staff reiterated that the public may request copies of the full state budget forms from finance or find them on the district website and county/state portals. Board members asked staff to investigate translation options for the forms to improve access for families who speak languages other than English.

What happens next: The budget revision takes effect as approved. The stipend recommendation will return to a future meeting after staff follows up on questions raised during public comment and by board members about prior IBN communications, the district's reserves, and alternative compensation options.