Board approves part one of FY 2025–26 budget package including one-time payments and salary and insurance increases

The Tempe Union High School District Governing Board approved the budget advisory committee’s recommendations (part 1) and the superintendent’s FY 2025–26 budget recommendations, adopting multiple one-time and ongoing allocations designed to address current-year deficits and provide compensation adjustments.

What the board approved: Assistant Superintendent Roland Carranza summarized Part 1 recommendations developed by the Budget Advisory Committee (which included community and employee representatives). The committee identified approximately $1,494,000 in one-time budget capacity and $3,412,000 in ongoing capacity. The board voted to accept the recommendations; the motion passed 5-0.

Key items included (committee figures cited in meeting): - One-time funds (approx. $1,494,000) to be used for: a $500 returning-employee stipend for all returning employees in August (estimated cost $738,000); covering current-year deficits in athletic auxiliary accounts and athletic M&O (combined approx. $600,000); transportation charter-bus costs driven by driver-hour limits (approx. $60,000); and an increase of $3 per student in site printing allocation (approx. $36,000). - Ongoing capacity (approx. $3,412,000) identified from sources including a decline in employer retirement contribution rates ($216,000), a teacher experience-index add-on ($710,000), and available Classroom Site Fund balances (proposed uses up to $950,000 for eligible staff salary increases and up to $636,000 to cover medical insurance increases for eligible staff). Carranza explained that Classroom Site Fund carries voter-imposed restrictions and historically had carryover due to prior expiration timing; the committee recommended using available restricted capacity within statutory limits. - Compensation and benefits: The committee recommended and the superintendent supported a 2% salary increase across applicable salary schedules (cost approx. $1,900,000) and coverage of projected medical-insurance increases (13.3% increase; cost approx. $1,272,000). The committee had signaled a minimum 1% commitment earlier and elected to use Classroom Site Fund capacity to support 2%. - Other items: A request from CTE/classified hourly employees for three additional paid holidays was discussed; the committee recommended inclusion for the CTE group (cost estimated at $136,222) while noting broader parity issues and that full coverage for all 9–10 month employees would cost about $900,000 and was not funded in this package.

Board action and vote: The board approved the budget recommendations (item I-2 and superintendent item I-6) by a recorded vote of 5-0: President Barraza — yes; Vice President Steele — yes; Board Member Montero — yes; Board Member Hodge — yes; Board Member Gutierrez Miller — yes.

Context and caveats: Carranza emphasized that one-time funds (for example the difference between assumed and actual average-daily-membership declines generating $832,000) were not expected to recur next year; thus some uses were framed as one-time relief. He also said Classroom Site Fund usage is constrained by voter-approved restrictions (cannot supplant) and is primarily intended for teacher compensation and certain allowable purposes. The committee and administration signaled ongoing work to refine athletics and transportation costs and to monitor ADM and enrollment trends.

Next steps: Superintendent Wilson said she intends to support the committee recommendations; staff will continue to monitor ADM and bring part 2 of budgets and further recommendations back to the board later in the calendar year.