Gilbert Public Schools board adopts fiscal 2027 budget built around 1,200‑student ADM decline

The Gilbert Public Schools Governing Board voted to adopt the district’s fiscal year 2026–2027 proposed budget after a presentation from Crystal Zachary, lead budget analyst. The budget assumes a conservative enrollment decline of about 1,200 average daily membership (ADM), split between K–8 and high school, and reflects the governing board’s previously approved 3% pay increase for employees.

Zachary told the board the proposed budget aligns with the district’s strategic operating plan and the 15% maintenance and operations (M&O) override commitments, including funding to maintain salary competitiveness, safety and security personnel, social workers and behavioral health counselors, and a $2 million annual allocation targeted at class size reduction. She said the proposal uses a conservative ADM projection: "This proposed budget is based off of an anticipated and more conservatively adjusted loss of 1,200 ADM."

Key numbers and drivers included an estimated budgetary deficit of about $10.2 million driven by non‑discretionary cost increases (medical premium rises, fuel and utilities, an estimated $1 million reduction to IDEA, and a January 2027 minimum wage increase). The district plans to balance the budget by drawing on M&O one‑time carryforward ($3.02M) and a classroom site fund contribution (~$6.67M), among other adjustments; Zachary said a future revision is likely once final state figures are incorporated and the district will post that revision in the fall.

The presentation noted that Proposition 123 funding did not survive the final state budget, while the legislature added some one‑time district additional assistance (DAA) and free/reduced‑lunch funds that were not in the posted proposal, producing a modest net change. Zachary also reported the FY27 classroom site fund per‑pupil allocation increased from $842 to $883, and that the district’s average teacher salary after the approved 3% increase would be just over $70,000.

During follow‑up discussion, board members asked about the sustainability of sales‑tax‑based classroom site fund revenues; Bonnie Betts (monthly financial presenter) cautioned that sales tax growth is uncertain and emphasized the district’s plan to draw down fund balance to manage the next two to three years. The board discussed other budget risks including further enrollment declines and possible legislative changes.

A motion to adopt the FY2027 proposed budget was moved by Ms. Jill Humphreys and seconded by Ms. Shayna Murray; the board adopted the posted figures by voice vote (members responded "I"). The transcript records the outcome as adopted; no roll‑call tally of individual yes/no votes is recorded in the meeting transcript.

The district expects to present a revised budget in the fall reflecting final state allocations and the auditor general’s updated budget forms.