Board warned of nearly $600,000 transportation funding shortfall in FY2027 preliminary budget

District finance staff reviewed the Catalina Foothills Unified School District's preliminary FY2027 maintenance-and-operations budget at the continuation meeting and highlighted a transportation funding gap board members said will require the district to cover costs from other funds.

Staff noted the transportation revenue control limit on the state form shows roughly $1.6 million, but the district's projected transportation expense subtotal is about $2.1 million, leaving an estimated deficit near $600,000. Director of Finance Lisa Tatel (referenced by presenters) and other staff said an upcoming audit correction related to mileage reporting may reduce the revenue estimate by roughly $100,000, which would increase the district's supplement toward transportation costs. Board members remarked that those dollars otherwise could support teacher pay or other M&O priorities.

The board also discussed fuel and maintenance costs and noted the district maintains on-site fuel tanks at its bus yard; replacement of aging tank infrastructure may require bond funding. Board members asked staff for clarification on auxiliary funds after seeing elevated auxiliary operating figures tied to out-of-state band and choir performances; staff explained that student trip fees flow into auxiliary accounts as pass-through revenue and that boosters supply additional financial assistance for students in need.

Staff said no substantive changes had been made since the May 12 draft and that state budget forms are preliminary; further adjustments likely after state form submissions and audit reconciliations.