Budget consultant warns Liberty Elementary District of projected $2.4 million shortfall; urges hiring freeze, PO reviews

Ken Hicks, a budget consultant and chief financial officer at Tolleson Union High School District, told the Liberty Elementary School District governing board during a Feb. work session that the district "has not overspent," but it does have a projection that it will overspend by the end of the fiscal year.

The consultant, who said he was providing unpaid help while the district transitions staff, urged several immediate actions: a hiring freeze, systematic review and reduction of open purchase orders (POs) to lower encumbrances, monthly monitoring of average daily membership (ADM), and routine budget revisions — ideally in December rather than waiting until May. "We should be doing December budget revisions whether ADE says you are required to or not," Hicks told the board.

Why it matters: Liberty's operating reserves and the district's general-fund position were flagged later in the meeting by the Auditor General as areas of elevated risk. The consultant said routine, earlier budget reconciliation helps avoid last-minute use of reserves and gives the board clearer oversight of spending choices.

Key details

- Projection and reserves: Hicks described a projected year‑end overspend (discussed elsewhere in the meeting as roughly in the low millions) driven primarily by current encumbrances and spending trends. He said the district's encumbrances — POs representing committed future spending — are the principal signal that the district could exceed its budget limit if left…