Higley board reviews first draft of FY26 capital outlay budget; major projects contingent on School Facilities Division funding
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Summary
Finance staff gave a first read of the FY2026 capital outlay budget, noting reduced state capital, no M&O-to-capital transfer this year, priorities on security camera upgrades and a $1 million contingency.
Higley Unified School District staff presented a first review of the district's fiscal year 2025'26 capital outlay budget on Tuesday, emphasizing that major maintenance projects will depend on state School Facilities Division (SFD) grants and noting the district is not transferring maintenance and operations (M&O) dollars to capital this year.
"We are not proposing any transfer of M&O dollars to capital," finance presenter Mr. Moore told the board. He said the district is budgeting an M&O deficit next year and will be "100% reliant on SFD to fund those major maintenance projects for '26." Moore also described ongoing security work, saying the district is completing phase 2 of camera replacements and plans a phase 3 to consolidate remaining systems.
Why it matters: The board heard that a one'time state increase to capital in FY25 (about $300,000) is not expected to continue into FY26; that change and the district's decision not to transfer M&O funds means Higley will prioritize repairs, security and instructional materials while holding a larger contingency. Moore said contingency would be raised by about $1 million to allow for repair'rather'than'replace decisions where feasible.
Budget highlights: The proposed FY26 capital budget total was presented at about $15.8 million, driven by the state capital allocation (District Additional Assistance), the district's $3.5 million lease transfer and projected carryforward funds.
Major categories summarized by staff included:
- Student technology: funds for a freshman device refresh for both high schools (Lenovo devices). - Safety and security: continued camera replacement (phase 3) and leverage of JUUL litigation funds toward camera upgrades. - Instructional materials: a planned K'12 English Language Arts (ELA) adoption in FY26 (with implementation in FY27) after the state indicated the district's prior K'3 resource was no longer on an approved list. - Major maintenance: projects (weatherization, roofing and intercoms) are in the SFD pipeline; Moore estimated about $5 million in building renewal grant applications awaiting funding.
Board questions and context: Trustees asked about timelines for a traffic signal at Williams Field and for the district's textbook adoption schedule. Mr. Moore said the district is engaging Gilbert on student parking and traffic improvements and that, because the ELA adoption process is extensive, the district will begin work in FY26 for a FY27 implementation. In response to a trustee question, academic staff said the district's social studies adoption had last been updated about 2012 and was postponed to prioritize ELA because the state requires approved materials for early literacy moves.
Next steps: The board will consider tentative approval at the next meeting to let maintenance obligate long'lead items and will return to adopt the budget in June. Staff said they will also present vacant land appraisal options at a future meeting to show possible capital funding alternatives.
