Gilbert Public Schools adopts FY2025 revised budget No. 1 after finance staff report showing multimillion-dollar increases

The Gilbert Public Schools governing board on Feb. 4 voted 5-0 to approve Fiscal Year 2025 revised budget No. 1 after the district's finance team reported higher-than-estimated student counts, larger-than-expected carryforward balances and stronger interest and grant reimbursements.

Director of finance Jackie Netman presented the revision during the work study, saying, “We are presenting the fiscal 20 25 revised budget number 1. We are not required to revise the budget at this time.” Superintendent Shane McCord and budget staff explained the changes and took questions from board members before the vote.

Why it matters: The revision increases the district's M&O revenue control limit and unrestricted capital capacity, restores money the district had planned to transfer from capital to operations and incorporates final carryforward and grant completion reports that were unavailable when the budget was adopted in July.

Key figures and drivers - Average daily membership (ADM) and weighted counts: The district reported an ADM of 30,065 for FY2024 recalculation, an increase from earlier adopted estimates, and an increase in weighted student count of 487. That higher weighted count raised the M&O revenue control limit by roughly $2.7 million. - M&O revenue control limit and carryforward: District staff said carryforward and other adjustments produced an overall M&O budget limit increase of about $5,570,000 and removed a previously planned $2 million transfer from unrestricted capital into M&O because it is no longer necessary. - Unrestricted capital: The district reported an increase in unrestricted capital capacity (district additional assistance) of roughly $5,580,000. Staff described an accounting judgment and reclassification that explained a $390,000 line-item change from the adopted budget to the revision. - Interest earnings strategy: Finance staff said the district intentionally routes state and local revenue first into unrestricted capital to maximize spendable interest earnings. Interest earned on unrestricted capital last year was reported at $1,170,000 versus an original estimate of $420,000. - Grants and federal funds: State and federal grant balances rose in the revision by about $8.6 million, largely from completion reports accepted by the Arizona Department of Education that permit certain unspent grant dollars to be carried forward. ESSER III funds were reported as fully spent and closed. - E‑Rate reimbursement and bond proceeds: Technology services completed a network refresh and the district received roughly $2.2 million in E‑Rate reimbursement for equipment and cabling paid from bond funds; staff said they will propose how to spend that reimbursement over coming years. - Employee benefit trust: The district flagged that recent claims trends are expected to draw down the employee benefit trust by an estimated $3.5 million in the current year; the trust committee will make premium recommendations that will be brought to the board. - Transportation purchases: The district has purchased smaller, non‑CDL buses (10-passenger) to increase routing flexibility; staff expect additional vehicles to enter the fleet this year.

Budget process context and risk Budget staff emphasized that the district is not required to file a revision unless it must reduce an overstated budget by Dec. 15; because the revision adds capacity, it is a voluntary update to reflect finalized FY2024 numbers and to set a current base for FY2026 planning. McCord told the board that legislative action remains an external risk: “When we're looking at projections for student loss, when we're looking at possible salary increases, we will be on the conservative side ... based on what the legislature does we will determine what we can give for an increase.”

Board action and vote Board member Jesse Brainard moved to approve the FY2025 revised budget No. 1; Jill Humphreys seconded. The full board voted in favor 5-0 (Chad Thompson, Shana Murray, Blake Robinson, Jill Humphreys, Jesse Brainard).

What comes next Staff said revised numbers will appear in the next monthly report and that some elements of the revision (for example, projected grant amounts that later change) may be adjusted again before the statutory final revision deadline in mid‑May. The board signed the budget documents as required.

Sources: presentation and discussion at the Feb. 4 Gilbert Public Schools work‑study and subsequent board business meeting; finance staff slides and Q&A with board members.