Prescott Unified board approves FY‑26 budget with 2.5% pay increase, issues staff contracts and several policy and calendar changes

PRESCOTT, Ariz. — The Prescott Unified School District (PUSD) governing board on March 4 approved the district's proposed fiscal year 2025‑26 budget package, authorized issuance of staff contracts for the 2025‑26 school year and approved a set of related fiscal and operational items, including acceptance of the district's FY24 audit documents and a revision to the district rental fee schedule.

The board voted to adopt the overall budget package after staff presented enrollment projections, expected cost increases and recommended salary changes. District staff recommended a 2.5% salary increase for all employee groups in the package the board approved. "We are recommending for all staff a 2.5% raise," PUSD presenter Mister Moore said during the budget discussion, noting how the increase breaks down across employee groups.

The budget vote followed an extended presentation by district finance staff and discussion of line items that increase costs (medical insurance, APS rates, Trust/workers' comp costs) and items that increase revenue or reduce expenses (teacher experience index adjustments, federal high‑cost special education reimbursement). The board was also briefed on a projected 92‑student decrease in enrollment compared with last year and on one‑time and recurring changes to staffing and program funding to manage student needs.

What the board approved - Budget package for FY 2025‑26, including a 2.5% recommended raise for employees. District staff said the total cost of the raise in the conceptual package is about $604,000; staff gave a breakdown during the meeting (teachers ~ $292,000; classified ~ $200,000; psychologists and related service providers ~ $74,000; administration ~ $35,000). Staff warned the package draws modestly on reserves under the scenario presented.

- Issuance of contracts and agreements to eligible PUSD staff for the 2025‑26 school year so the district can begin offering contracts to certificated staff within statutory time windows. "Now that the proposed budget has been approved ... we want to issue our contracts as soon as possible," Mr. Binder told the board.

- Approval of the PUSD salary placement schedules (the schedules that govern initial placement of new hires on district salary lanes) updated to reflect the board's compensation direction.

- Acceptance of the district's FY24 Single Audit Reporting Package (SARP), Annual Comprehensive Financial Report (ACFR) and Uniform System of Financial Records (USFR) compliance questionnaire. The auditor and district leaders reported no material weaknesses in federal grant testing and said the district had seven findings on the USFR compliance questionnaire (within a typical range). The board conducted a roll call for that item; named board members voted aye.

- Approval of a revised PUSD rental fee schedule (new category added for community partners and modest hourly fee adjustments) to better align rental charges with costs while trying to keep community partner events affordable.

- Approval of an out‑of‑state/out‑of‑country student travel request: Prescott High School will send students and chaperones to Prescott's sister city exchange in Zeitz, Germany (May 30–June 14, 2025). The board approved the trip after staff described fundraising and tax credit options that reduce individual student costs.

- Approval of the student activities fund statement of receipts and disbursements for March 2025 with an amendment: the monthly summary section was removed from the approval to allow staff time to correct clerical errors and republish the summary.

- Adoption of new district mission and vision statements developed during the district's recent retreat: the board approved the short mission — "Rigorous, supportive, safe: every child, every day" — and an updated vision/portrait of a graduate.

- Approval of a one‑time calendar change for 2025‑26: PUSD will move fall parent‑teacher conferences (K–8 standards‑based report card rollout) to the week after fall break to allow teachers time to complete the new report cards and meet with families.

What the board discussed but did not vote on - Revisions to a suite of policies tied to federal Title IX rules and Arizona practice were presented as a first reading. District staff and board members discussed the updated definitions and procedural changes required by recent federal guidance; the board did not act and requested follow‑up and clarification on a few items before a second reading.

- A discussion of public participation at board meetings: the board debated whether to keep the current practice of allowing comments only on agendized items (study and voting session items) or to broaden public comment. Board members asked staff to draft revised policy language (including a proposal for a community input form) for consideration at the next meeting.

Discussion highlights and context District staff walked the board through cost pressures (a projected 5% increase in medical/insurance premiums in the conceptual budget was cited as roughly $210,000) and revenue assumptions (the board packet estimated a 2% inflation‑driven state funding increase would add about $507,000 to the district's revenue under the assumed scenario). Staff also identified recurrent and one‑time savings and additional expenditures tied to special education staffing, bus driver wage increases, and a marketing/communications restructuring.

Board members asked about whether staffing reductions implied layoffs; staff said teacher reductions shown in the staffing adjustments were tied to attrition or restructuring and that the district planned to work to match affected classified staff with alternate positions where feasible.

Several trustees praised district staff engagement with school employees ahead of the budget vote. "We asked about it a lot in our listening tours and it was positively received," one board member said while describing campus visits and staff consultations that helped shape budget choices.

Next steps The board set the next regular meeting for April 1, 2025. Staff said the budget package approved on March 4 is conceptual and that the district will return with the official FY26 budget documents after the Arizona Legislature's actions and any final insurance underwriting updates are known.

Ending Board members and staff noted the meeting also included student recognitions and campus reports from principals and trustees. The board voted on several additional routine consent items that were included in the packet and passed them without extended debate. The board's discussion of public participation policy and the ASBA Title IX policy updates will continue at the coming meetings.