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Board reviews FY27 budget preview and warns of M&O override reductions if not renewed
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Summary
District finance staff previewed FY27 projections showing a Classroom Site Fund increase, lower-than-expected health-renewal costs, a potential $350,000 fuel cost pressure, and outlined program reductions that could follow if the district's 10% M&O override is not continued in November.
District finance staff gave a preliminary look at the Maricopa Unified School District’s fiscal 2026–27 budget and explained how the district’s maintenance and operations (M&O) override affects staff and programs.
Chief financial officer Jacob Harmon said the Joint Legislative Budget Committee’s Classroom Site Fund allocation rose by $41 per pupil and that health insurance renewal costs came in at 9% (below an earlier 14% estimate), which reduced fixed-cost projections. Harmon warned, however, that fuel-price volatility could add approximately $350,000 to next year’s costs if high diesel prices persist.
Harmon described the district’s unrestricted capital outlay budget and a capital-expenditure plan that earmarks $750,000 for transportation vehicles, $400,000 for curriculum refresh, and $500,000 for safety and security upgrades. He said the current expenditure plan leaves roughly $847,000 in available funds for operations.
On the M&O override — the locally approved property-tax increase that supplements state funding — Harmon reminded the board that M&O overrides are voter-approved and typically last seven years. He said MUSD currently operates under a 10% M&O override and provided a hypothetical reduction plan should the override not be continued: initial eliminations could include technology, counselors, and certain academy positions, followed by phased FTE reductions estimated across sites in subsequent years. "If we do not successfully pass the override continuation this upcoming November, next school year will be the last fully funded year," Harmon said.
Board members pressed for details: how fuel estimates were derived, whether state or federal relief might be available, and which sites and positions would be affected by reductions. Harmon noted the three-year reduction scenarios were hypothetical and did not yet include projected enrollment growth or other changes.
The presentation was informational; no override decision was made. Board members asked staff to provide additional data, including school-level participation and comparative meal-pricing from neighboring districts, in follow-ups to the budget process.
