Gilbert USD presents conservative FY2026 budget proposal; revises FY2025 carryforward upward

Gilbert Public Schools finance officials presented a conservative FY2026 proposed budget and sought board approval to advertise the budget for public hearing; trustees also approved a small technical revision (Revision No. 4) to the FY2025 expenditure budget.

At the June 10 meeting, district staff told the board that the FY2026 proposal assumes a conservative enrollment decline (the team used a worst‑case projection of a 1,300‑student ADM loss for planning), a 2% base inflation increase in the governor’s proposed budget assumptions, a modest increase in teacher experience index funding and an anticipated $1.0 million loss in IDEA federal funds that would need to be covered by the maintenance and operations budget.

Revision No. 4 approval

Finance staff explained that, while preparing final forms for the state, they identified an additional $370,000 in budget balance carryforward for FY2025. The board voted to approve Revision No. 4 of the FY2025 expenditure budget (the motion passed), which updates the FY2025 carryforward and enables the district to realize the additional budget capacity.

Key FY2026 planning assumptions and proposed allocations

District staff presented non‑discretionary cost increases (medical insurance premium increases, estimated fuel and utility inflation, and a placeholder for minimum wage increases) and programmatic investments. Notable proposed additions included increased teacher FTE for English language learners and gifted identification, a conversion of some dean positions to assistant principal roles to support recruitment/retention, and a recommended employee pay increase package. Classroom Site Fund and enterprise funds (nutrition, community schools) are anticipated to contribute to part of the increase in personnel costs.

Staff also described unrestricted capital strategy: the proposed FY2026 budget shows a planned unrestricted capital spend of about $30.6 million, of which facilities renewal was the largest share. The district intends to hold a contingency (about $5 million) and retain roughly $9.5 million of unrestricted capital in reserve for potential M&O (maintenance & operations) needs. Staff noted active facility items such as roof and HVAC projects; a Greenfield Junior pool repair was singled out as a new, expected cost with an estimated district share of roughly $300,000 next year (the town of Gilbert and district share pool repair obligations via an IGA).

Why it matters: staff described the proposed budget as a conservative, worst‑case baseline that preserves key priorities — salary competitiveness, safety and social‑emotional supports, and a $2 million annual allocation for class‑size reduction — while preparing for possible state funding or enrollment changes.

Public hearing notice

The board approved advertising the FY2026 proposed budget summary and set the required public hearing schedule (the motion to advertise the FY2026 proposed budget summary and public hearing notice passed). Staff will present final adoption documentation after the required public notice periods and as state revenue decisions become clearer.

Ending: Finance staff underscored budget risks (state funding actions, enrollment fluctuations, IDEA decreases) and opportunities (potential legislative changes or stabilization of certain costs) and said the team will continue monitoring and update the board as the fiscal picture evolves.