Maricopa Unified previews FY27 budget; projects $7M in available M&O and proposes 3% raises
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Summary
Finance staff told the governing board on Feb. 10 that early FY27 projections show an M&O limit near $91.5 million, roughly $7 million in available ongoing revenue, and proposed a 3% raise for continuing staff along with $57,000 starting pay for first-year teachers.
Maricopa Unified School District finance staff presented an early preview of the fiscal year 2027 maintenance and operations (M&O) budget at the boards Feb. 10 meeting, projecting an ongoing M&O budget limit of about $91,500,000 and estimated ongoing expenditures of about $84,400,000, leaving roughly $7,000,000 in available ongoing revenue.
"The purpose of this presentation is to preview our early projections for the fiscal year 'twenty 7 budget," Mr. Harmon said, outlining calendar milestones that include a second M&O preview in April, a proposed budget approval and publication on June 10, and a public hearing before a final adoption in July or earlier.
Key drivers in the projection include a 2% increase to the base per-weighted-student amount, a small decrease (0.02 percentage point) in Arizona State Retirement System employer contribution rates that will slightly reduce district costs, and a projected average daily membership (ADM) growth of 365 students. Harmon explained ADM funding is based on the districts first 100 days of instruction and that preschool and kindergarten enrollments are funded at 0.5 ADM.
Harmon described potential one-time "fiscal cliff" items in the governors proposalthe free-and-reduced-price lunch poverty weight and a DIA formula increasethat together account for roughly $500,000 in funding that will require one-time legislative approval. "If they do not approve them, then we will have a reduction in our overall funding formula by about $500,000," Harmon said, adding the district will plan conservatively until the legislative session ends.
The presentation also outlined fixed costs and staffing investments tied to district growth and the opening of Alma Ferrell Innovation Academy. The plan includes nearly $2.7 million in new positions, a $900,000 contingency in M&O for unforeseen needs, a $38,000 increase in cyber insurance tied to raising coverage from $1 million to $3 million, and an assumption of a potential 14% increase in employee health insurance costs.
Harmon said the district seeks to remain competitive on compensation and proposed a 3% increase for continuing staff while raising initial placement for new hires. The presentation listed raising the starting salary for first-year teachers to $57,000 as part of recruitment efforts.
Board members asked clarifying questions about how ADM is calculated and how the district will respond if the legislature does not approve the one-time items. Harmon said the district typically plans as if the one-time items will not be approved until after the legislative session concludes.
Next steps: staff will present updated projections in April and the proposed FY27 budget on June 10, followed by a public hearing before final adoption.