AJUSD presents FY27 budget built on projected enrollment decline; board approves several contracts, warns of fiscal risk

Apache Junction Unified School District finance director Gina Salazar presented the district's proposed FY2027 budget to the governing board on June 23, 2026, warning trustees the plan assumes a continued enrollment decline and that without an override the district may reach an unsustainable financial position.

"Tonight I present the FY27 proposed budget. The budget for next year is going to be $19 million," Ms. Salazar said during her presentation, citing a budgeted Maintenance & Operations (M&O) control limit near $19 million and a capital budget of about $1.4 million. She told the board the draft budget was built on a conservative 9% decline scenario and a projected average daily membership (ADM) of 2,057; the district's 100th‑day ADM this year was reported at 2,257.

Ms. Salazar outlined key drivers: falling state and grant revenues, grant reimbursement timing, and continuing fixed costs such as payroll and transportation. She cautioned that if the district exceeds its budget limit county warrants could be withheld and the state could move toward receivership. Board members asked for additional detail about cash balances, encumbrances and where cuts would fall if revenues do not materialize.

During the action portion of the meeting trustees approved several items related to operations and student services:

- Payroll reporting through Pinal County (motion approved 5–0). - Increasing the student technology fee from $35 to $50 effective July 1, 2026 (approved 5–0). - A three‑year renewal for Linewize filtering software for $47,693.07 (approved 5–0). - A statement of work with Arizona State University to provide dual‑enrollment Universal Learner course access (approved 5–0). - Continued participation in the East Valley Migrant Consortium with Queen Creek USD (approved 5–0).

Trustees pressed for further discussion of longer‑term structural fixes, including an override or bond, administrative consolidations and potential position reorganizations. Ms. Salazar and trustees referenced prior one‑time entries and encumbrance releases that had temporarily improved the district's presented balance; the finance director said those measures cannot be relied on for long‑term sustainability.

The budget must be adopted by July 15. Board members requested additional budget detail and a special meeting or work session before formal adoption to allow more review and community input.

What to watch: The board directed staff to present more granular spending vs. budget reports, clarify grant cashflow timing, and return with scenarios showing the impact of an override versus additional cuts. The district will return to the board for adoption within state timelines.