Gilbert Unified board previews FY2027 budget, approves 3% pay increase and superintendent performance pay

The Gilbert Unified District governing board on June 9 reviewed monthly financials and a proposed fiscal year 2027 budget that relies on a mix of ongoing revenues and one-time fund balance to cover pay increases and rising costs.

At a work study presentation, Dr. McCord, the district superintendent, and finance staff including Chief Financial Officer Bonnie Betts, presented budget capacity through April 30, 2026, noting an available maintenance and operations balance of about $14.6 million and an unrestricted capital carryforward projected near $33.9 million. Dr. McCord said the district will advertise the proposed budget and noted that statutory posting requirements limit changes after the public posting.

The presentation flagged three budget risks: changes to state funding pending the legislature, rising operating costs (fuel, utilities and inflation), and grant shifts affecting school safety services. Dr. McCord explained the district received a $1.4 million award tied specifically to school resource officers (SROs) for the next three years, but that specificity leaves roughly $400,000 previously budgeted for social workers and mental‑health counselors that the district will need to absorb into its M&O budget going forward.

Finance staff also reviewed enterprise funds and other program balances. Nutrition services projects an available balance around $5.6 million and will implement a 10‑cent increase for lunch-only pricing; community schools are forecast at about $1.8 million and may see additional summer revenue. Staff reported a projected $4.1 million pass‑through tied to career and technical education (CTE) satellite ADM, and warned of an EVIT court action that could enjoin some funds and shift costs back to M&O if EVIT programs are not approved.

The employee benefit trust reported an expected available balance near $21.1 million but noted a substantial stop‑loss renewal included on the consent agenda. Finance told the board that the stop‑loss renewal represents a 55% overall increase (40% additional on top of a previously accounted 15%), producing roughly a $600,000–$625,000 premium increase to be reflected in the recommendation.

To address cost pressures and recruitment concerns, the leadership team proposed increasing a previously approved 2% base pay increase to 3% across all employee groups in FY2027 (teachers, hourly staff, administrators and exempt professionals). Finance estimated that about $10.1 million is needed for the pay increase, with $6.67 million of that drawn from Classroom Site Fund carryforward. Staff characterized the proposed budget as conservative and signaled a planned budget revision in January–February after enrollment recalc.

Board action

During the brief business meeting that followed, the board approved the consent agenda (including the stop‑loss renewal correction) by voice vote after a motion from board member Jill Humphre. The board then approved the superintendent’s performance pay for fiscal year 2025–26 and approved the recommended 3% pay increase for fiscal year 2027; both motions passed by voice vote with all board members present voting in favor. The board also authorized advertising the FY2027 proposed budget summary and scheduled a public hearing for June 23, 2026, at 6 p.m.; Dr. McCord said the advertisement will appear on the Arizona Department of Education website.

Votes at a glance

• Consent agenda (includes corrected stop‑loss premium disclosure): Motion by Jill Humphre; second: not specified in transcript; outcome: approved (voice vote, all present in favor).

• Superintendent performance pay for FY2025–26: Motion by Jill Humphre; second: not specified in transcript; outcome: approved (voice vote, all present in favor).

• Districtwide 3% pay increase for FY2027: Motion and second recorded in the meeting; outcome: approved (voice vote, all present in favor).

• Advertisement of FY2027 proposed budget summary and scheduling of public hearing (June 23, 2026, 6 p.m.): Motion and second recorded; outcome: approved (voice vote, all present in favor).

What’s next

The administration will post the FY2027 proposed budget summary as required by statute, advertise the June 23 public hearing and continue monthly financial updates; staff said a mid‑year budget revision is likely once final enrollment (ADM) and state budget actions are known.