Show Low Unified board approves proposed FY 2026–27 budget; forest-fee receipts improve outlook

The Show Low Unified District board on Tuesday approved a proposed FY 2026–27 budget that district staff said is stronger than earlier estimates after the district received recent forest-fee payments and a modest state increase in per-pupil funding.

Board members voted to approve the proposed budget as presented; the board will return in July to adopt the final budget and may revise figures in December after the annual financial report. Shaye Davis, who presented the budget, emphasized that the document is provisional: "So, keep in mind that this is the proposed," Davis said, noting key assumptions still depend on final state and enrollment numbers.

Why it matters: The budget determines staffing, school safety services and capital purchases across the Show Low Unified District. Staff said the district has seen a small enrollment increase — nine additional students — and is budgeting based on a 2% per-pupil increase announced by the state. Importantly, the district reported receipt of FY24–25 forest-fee payments totaling $456,979 and an expected FY26 forest-fee payment of approximately $240,000, which staff said they typically use for bus purchases and capital needs.

What the board heard - Enrollment and state aid: Presenters said enrollment rose by nine students and that the classroom site fund increased from roughly $8.42 to $8.83 per ADM; Davis said the state also fronted a 2% per-pupil funding increase for planning purposes. - Forest fees and carryforward: Staff reported $456,979 in forest fees received for FY24–25 and estimated an FY26 receipt near $240,000. The proposed budget currently shows an estimated $4.8 million carryforward, a reduction from the prior year in part because of a roughly $1.2 million expense for a grinder pump and HVAC work at Lynen. - Grants and uncertainty: The district expects reductions in some federal competitive grants and noted an overall estimated reduction of about $154,000 in grant funding between FY26 and FY27, largely tied to Title I, II and IV and other federal programs. Dr. Farnsworth briefed the board on national-level proposals affecting federal education grants and warned the outcomes must still pass Congress: "President Trump in his budget to Congress ... they're going to be significant reductions," he said, adding that superintendents nationwide are preparing advocacy letters. - Recommended expenditures: The proposed budget includes placement-chart increases for several employee categories, a 1% across-the-board increase (estimated at $137,000), ongoing classroom-site fund increases that add about $365,000 for teacher base pay, and technology and safety items that include a $330,000 educational-technology package and roughly $33,000 for mobile incident-command hardware. Staff also discussed possible purchases of two buses tied to forest-fee receipts.

Board action and next steps: The board approved the proposed budget to be presented again for adoption in July and signaled a December revised budget will follow after the annual financial report. Staff repeatedly cautioned that several line items remain estimates because state legislative budget actions and final ADM counts will not be available until summer.

Context: District officials said they will continue monitoring state allocations and federal grant results; until those figures are final, the budget presented Tuesday remains a working plan subject to adjustment.