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District flags CTE funding risk as EVIT intergovernmental agreement nears expiration
Summary
Bonnie Betts told the board that fund 596 (Career and Technical Education) shows about $13.3 million available with $6.4 million encumbered; she said the district’s intergovernmental agreement with the East Valley Institute of Technology runs through June 30, 2026, and that a judge will hear related matters tomorrow, leaving near‑term use of those funds contingent on the outcome.
Bonnie Betts, presenting the district’s monthly financial report, told the Governing Board that Career and Technical Education (fund 596) has about $13.3 million in available resources and roughly $6.4 million year‑to‑date expended or encumbered. Betts said the district’s intergovernmental agreement with the East Valley Institute of Technology (EVIT) is in force through June 30, 2026, and that the district expects related revenues by September 2026.
Betts warned the board that if an agreement with EVIT is not reached, the district would consider using fund 596 to support CTE staffing and instructional materials; she estimated roughly $4 million would be needed to support instructional materials and staffing for FY27 if EVIT funds were unavailable. Betts also listed capital needs currently tied to fund 596, including the meat lab renovation, woodworking program upgrades and a compressor replacement at Gilbert High, and commercial kitchen work completed previously at Highland High.
District staff emphasized that use of fund 596 is subject to program approval rules tied to EVIT and to federal/state supplanting rules: staffing and materials for EVIT‑approved programs are typically funded from fund 596, but programs that predate EVIT participation must be maintained with maintenance and operations funds rather than supplanting those prior efforts. Betts said a court hearing scheduled for the next day will influence whether the district may use the fund 596 balance as planned.
Board members discussed using bond proceeds (a referenced $136 million bond proposal includes a line item for technical education) and aligning program investments with local industry needs; staff described ongoing planning with the Town of Gilbert and Mesa industry partners to modernize CTE offerings in construction technology, engineering and related fields. No formal action was taken; staff said they will report back after the judge’s hearing and as negotiations with EVIT proceed.
