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Higley finance director outlines funding mix, override phase-down and capital constraints
Summary
CFO Tyler Martin and finance staff delivered a school-finance overview showing the district relies heavily on state equalization aid for operating dollars, outlined the phase-down of a seven-year maintenance-and-operations override, and described limited School Facilities Board funding for capital projects.
Tyler Martin, chief financial officer for Higley Unified, gave a primer on district finances, explaining how state formulas, local property tax collections and voter-approved overrides combine to fund operations and capital.
“This budget limitation is formula generated, derived by ADM, and then the state base level support for the per-pupil amount,” Martin said, summarizing the maintenance-and-operations calculation the district uses to set its primary operating budget.
Why it matters: Understanding revenue sources — local property tax, state equalization aid, federal and state grants, and voter-approved overrides — frames future budget choices, including whether to ask voters for new capital or operating levies.
Martin told the board that Higley’s local property tax base covers a minority of operating costs. “Our local property taxes only basically support 36% of our budget. 72% is equalization assistance from the state,” he said, describing how state aid makes up for assessed-valuation limits in rapidly growing residential areas.
Capital and the School Facilities Board: Martin reviewed capital funding channels and the limitations of the state’s School Facilities Board (SFB). He described a recent SFB-approved project — a weatherization grant for Higley High of about $1.2 million — and noted many district SFB applications remain in a prioritized queue because SFB funding is oversubscribed.
Override schedule: The district is in the final years of a seven-year maintenance-and-operations (M&O) override approved in 2019. Martin said the override will phase down: fiscal year 2026 is projected at about $9.5 million and fiscal year 2027 at about $14 million (figures reflect phase-down schedule presented to the board).
Program and fund structure: Martin outlined the district’s major funds — M&O (operations), capital (district additional assistance), federal and state grants, debt service, classroom site fund (teacher-pay fund) and several enterprise funds for food service, athletics and rentals. He emphasized restrictions: classroom site fund dollars are limited largely to teacher compensation and performance pay and cannot be used to supplant M&O expenditures.
Efficiency and teacher pay: The presentation included a classroom-spending report that showed Higley’s relatively high share of instruction spending and progress raising average teacher pay above the state average in recent years. Martin said the district has moved some positions from M&O to other eligible funds where allowed, to stretch operating dollars.
The board asked clarifying questions about assessed valuation growth, bonding capacity and whether the district must resubmit SFB applications; Martin said projects remain in the queue and do not necessarily need full resubmission if appropriately documented.
No budget actions were taken at the meeting; the presentation aimed to inform future budget discussions and possible bond or override considerations.
