Scottsdale Unified board adopts balanced FY2627 budget, approves transfers from capital to cover gap

The Scottsdale Unified School District governing board adopted the proposed fiscal year 2627 expenditure budget on June 23 following a public hearing and staff presentation.

Miss Croer, the district staff member presenting the budget, said the district projects a drop in average daily membership of about 478 students this year and a weighted-student-count decrease of roughly 591. "Even though there's an increase of 2% the reduction in ADM is anticipated to be a little bit more than 2%. So we're anticipating a reduction in revenue from that," Croer said. She told the board the state recently set the per-student base at $5,215.

To balance the year, Croer said the district will transfer approximately $9.6 million from capital into maintenance and operations. "To make the budget work this year, we are moving approximately 9.6 million from capital to M," she said, adding the transfer is allowable and the district's policy would allow up to roughly $11 million in transfers depending on enrollment. She also described roughly $847,000 of additional state funding that will move into the baseline after prior one-time Prop 123 support.

The adopted budget totals just under $400 million, Croer said, with the bulk of the M&O budget focused on salaries and benefits. "Eighty-four to 85 percent of our budget is salary and benefits," she said, noting that certified employees represent the largest salary group.

At the public hearing resident Mike Benard asked what percentage of the budget is classroom spending; board member Amy Carney referenced the Auditor General's look-back showing classroom expenditures at 70.6% in the previous year, with 54% for instruction, 11.3% for student support and 5.3% for instruction support. Staff said a more detailed breakdown based on the proposed budget will be posted and that a deeper district-office expenditure presentation was scheduled later in the agenda.

After hearing public comment, the board moved and seconded the budget adoption. The motion carried on a unanimous roll-call vote, 5-0. Board members thanked staff for the work; several noted that pending legislative changes on classroom-spending rules warrant continued monitoring and possible future amendments.

What happens next: staff said some programmatic adjustments and budget amendments will follow if additional grant awards are finalized. The board also scheduled continued review of long-term structural solutions tied to the district's multi-year approach to declining enrollment and school capacity.