Board reviews four‑year substitute service costs, raises questions about ESI contract and purchase order limits

The Fountain Hills Unified School District board discussed expenditures for substitute teacher services and the district's contract with ESI (formerly Smart Schools). Dr. Jagadinsky presented four years of totals and said the district is consistently seeing substitute costs in the $200,000 to $225,000 range.

The figures presented from the board packet were: $200,658.02 for fiscal year 2018; $229,072.03 for 2019; $150,068.43 for the pandemic year 2021; and $217,689.52 for the most recent year. Dr. Jagadinsky said the pandemic year falloff likely reflected unusual conditions and extra sick‑leave rules in some districts.

Board members asked several follow‑up questions: how many substitute days each total represented, whether higher‑rate substitutes for hard‑to‑fill positions explain year‑to‑year differences, and what portion of charges is administrative fee versus pay to the substitute. One board member explained the district historically used Smart Schools to allow retired staff to return as subcontracted employees (so the district would not directly rehire during the one‑year rehire restriction), and said recent state changes required substitutes to accrue paid time off, complicating payroll tracking.

Dr. Jagadinsky said staff would return with a more detailed presentation showing head counts, pay rates and a financial simulation if the board wanted to consider bringing substitute administration in‑house or setting a higher purchase‑order authorization for ESI.