Fountain Hills Unified staff outline $6.3M in possible cuts, warn of five‑figure shortfalls if M&O override fails

District leaders on Thursday laid out a plan of personnel and operational reductions aimed at closing a multi‑year budget gap and preparing for a possible failure of the district’s maintenance-and‑operation (M&O) override.

“We’re going to lose $660,000 the first year and $440,000 the second year,” said Dr. Jay, the district superintendent, as he walked trustees through revenue projections, weighted student counts and estimated base funding. He described a conservative planning scenario that anticipates fewer students next year and no carry‑forward funding.

The administration proposed a mix of actions intended to reduce ongoing salary costs by about $6.3 million in M&O accounts and to find other recurring savings. Specific personnel proposals included eliminating one preschool teacher, one high‑school teacher, two teachers on assignment (one part‑time and one full‑time), a reduction in instructional aides and consolidating one school security position. Dr. Jay said many of the reductions could be achieved through retirements, resignations or not replacing vacant positions, and that district staff had identified likely candidates during planning.

On the operations side, the presentation identified roughly $125,000 in annual savings by moving third‑party IT services to the Educational Technology Consortium at Northern Arizona University and by trimming costs for PowerSchool/Synergy services; the administration also described shifting some positions to grant funds and moving some costs out of the general M&O fund.

Dr. Jay also flagged capital‑related revenue possibilities that would not be available for salaries: pending land sales and facility dispositions could produce funds for roofs, air‑conditioner replacements and other capital repairs but “that can't be used for salaries and sustained salaries,” he said.

The presentation included scenario detail used to estimate revenue: current weighted ADM, base support amounts and transportation revenue control limits. The administration estimated a projected revenue control limit of roughly $7.76 million under a conservative weighted‑ADM forecast and said it would not propose carry‑forward spending that could worsen fiscal pressure next year.

Board members asked about class sizes, which grades would be affected and whether reductions would trigger layoffs. Dr. Jay said the district expects minimal layoffs because of retirements and staff movement but acknowledged the year would be difficult for job availability in public education statewide.

Next steps: the budget reduction proposals and related M&O override timeline will return to the board for further discussion and likely a vote at a future meeting; administration said contracts and staffing decisions will proceed with attention to legal notice and collective‑bargaining obligations.