District projects drop in enrollment that could cut revenue; board hears staffing and program changes for FY2025–26

At the April 8 meeting, district finance and administrative staff presented an information-only update on the budget outlook for fiscal year 2025–26 and described proposed staffing, program and policy changes that would feed into the board\'s formal budget decisions later this year.

The presenter told the board, "for fiscal 25, 26 ... my projection calls for 3,390 students," citing enrollment trends and the district\'s rollover student database. Staff said preliminary counts had reached 3,307 as of April 4, up from an earlier rollover figure of 3,262.

District staff warned the board the difference between graduating seniors and incoming kindergarteners produced a projected revenue shortfall. The presenter said the projection implied a potential revenue loss of more than $770,000 for next year. Staff also noted other uncertainties: the state\'s aggregate expenditure limit (AEL) and other state actions could reduce revenue, and the district maintains contingency set-asides to manage such risks. Staff told the board the district\'s carryover available today is about $7,500,000 and that the recommended operating contingency was being held at roughly 10% of operating funds (the presenter noted that figure is higher than historic minimums used by some districts), effectively giving the district about $2,000,000 set aside and an additional $2,000,000 contingency associated with the AEL scenario for a technical total contingency cited in discussion as about $4,000,000.

Compensation and benefits: Staff recommended a 5% increase in salaries for next year and said they would absorb the employer portion of the employee insurance increase; renewals had arrived at a modest rate (presenter cited a renewal near 3.7% for certain coverage). As part of compensation discussions, the board reviewed a proposed reinstatement of a leave-buyback policy (policy 4-302). Staff estimated the buyback program could cost about $91,000 annually if every eligible employee cashed out the maximum amount allowed under the proposed parameters (the policy sets eligibility thresholds and limits; presenters said employees must retain a minimum balance and the plan would not allow balances to fall below the set threshold).

Staffing and program adjustments: The presentation cataloged proposed changes by site and department to align staff with projected enrollment and instructional priorities. Highlights included:

- Adding one instructional coach at Rio Rico High School (presenter referred to the role as an instructional coach focused on ELA, math and science support) and a dedicated IT technician at each school site. - Shifting an intervention/personalized-pathways specialist from one high-school site to elementary technology instruction; repurposing some paraprofessional positions from PE to computer/technology support at elementary sites to support the district\'s 1:1 device deployment and a new elementary technology curriculum. - Introducing a K–2 athletic coordinator role (repurposed from PE staffing) to expand youth athletics and coordinate with high-school programs; adding stipends for a new high-school flag-football program and an assistant coach stipend for golf. - Creating a new learning and professional development coordinator position in curriculum to train long-term substitutes and new teachers and to develop local teacher pathways. - Reclassifying human-resources support to increase coverage (moving a part-time office specialist to full time and changing titles to increase cross-training), and a request to reintroduce a dispatcher in transportation (under review for contract length).

Preschool and early-childhood funding: Staff said the district\'s regular preschool program has relied on Quality First scholarships and an Arizona High-Quality Early Learning grant. Staff reported those funding sources are being reduced and that the district-run regular preschool cost the district roughly $500,000; adding licensing and fees pushed that closer to $600,000, and in combination with full-day kindergarten operations staff referenced roughly $1 million of related local cost. Because those grant funds are shrinking, staff said they proposed sunsetting the regular (non-special-education) portion of the district-run preschool and maintaining only required special-education preschool services while exploring partnerships with local childcare and early-learning providers.

Other operational items: The board was told of planned increases for utilities, a competitive procurement for facilities contracts (six proposals received), a one-time comprehensive IT assessment, and consulting support for HR onboarding.

What the board decided: The presentation was informational; no budget adoption or binding decisions were made at the meeting. Board members asked clarifying questions about the hundredth-day enrollment emphasis for teachers and asked staff to remind principals and teachers about retention of students through the hundredth-day to protect state funding.

Why it matters: Enrollment trends drive the district\'s state funding formula and set the district\'s expenditure limit. The projected shortfall and the reduction in preschool grant funding will factor into final budget choices for staffing, programs and contingency planning in the coming months.