001Okay. Dr. Sero here, Mrs. Aron here, and Mrs. All in favor say I. Any opposed? Motion carries four to zero. To the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. And the only item on this agenda is the budget. Yes, Mr. uh President, members of the board um public hearing to present the 2026 proposed budget for the A Unified School District number 15. All districts shall prepare the proposed budget and a summary of their proposed budget as allotted by sketch. Um ARS15-905. The district should close the standard 24-hour advanced notice of the board meeting and hold the public hearing. This is a budget hearing for the 2026 proposed budget. There is no board action necessary at this
002time. We have our true professionals finance consultant, Mr. Tyler Moore to present the proposed budget. Mr. Moore can you hear me? Yes, sir. All right. President vehicle issues, so want to make down. Um, tonight I'm presenting a proposed budget for 2026. Um, this takes effects July 1 through June 30, 2026. Can you have the presentation up or do you want go ahead and go through it tire? That'd be fine. The power. Yes. Um, okay. So with the the agenda, I'm going to talk about a little bit about the legislative changes for 26 and go through the M budget, the capital budget changes, and the upcoming budget conversation. With regards to the legislative changes, um right now the state has not still not approved a a state budget. So with no state budget approved, K12 does
003not also have an approved budget. And so what we're proposing um for 26 is these are on preliminary budget forms and a couple things that we do know going into 26 include um a couple potential reductions. Um the onetime money that was appropriated for capital and free and reduced increases as were supplemental increases for 26. um they are not being included in the legislative conversations for 26. But um we knew these were onetime appropriations and we we planned accordingly for those one time appropriations knowing that there were not going to be continuation of funds. Um we do know by statute um the state has to apply a 2% increase inflation increase to the base support level. Um and so we're assuming that 2% inflation increase in this proposed 26 budget. Um the state's uh inflation
004right now somewhere around 3% but they're obligated to minimally appropriate 2%. And they've never historically gone above that but they have done their statuto obligation of 2%. So the aggregate expression limit um has been a hot topic for multiple years now. Um we anticipate that to be exempted in 26 is another one-time exemption. Um, so it's it's still on the table, but again, we we anticipate illustrator adding that into the budget conversations as a onetime exemption for 26. Um, a couple other notes, the ASRS, so the state retirement system that the district pays in, uh, the district makes a contribution and employees make a contribution. Um, that's actually that percentage is going down through 26. So, we'll see a slight savings on both the district and employee side. in terms of those uh retirement contributions.
005So that's a win for both parties. And then with regards to uh the 26 budget and looking at MNL, the district again is taking into consideration the uh 2% increase in the base level amount. So uh this year we were being funded at um just just over $5,000. Uh we're now with a 2% inflation increase being increased to $5,113. Um the how the formula works, you take that amount times the weighted ADM. So uh 670 that may seem high, but remember that's your in-person student count plus all your weighted ADM. You get weighted multipliers for special education, preview students, ELLL, English language learners. And so when you take all that uh the student body as a whole, uh you get to 670 as your multiplier. One thing I've been working on fixing over the last
006couple years when working with AO is the teacher experience index. So what this is is a multiplier um that the district gets to capitalize on and it measures the average teacher experience index um within AO. Historically, Aaho has not been able to capture basically the teaching experience of of a lot of the teachers um from their teaching experience outside of the United States. But that by statute is all eligible in terms of quantifying and and calculating out teacher experience index. So we were able to get that um captured in this fiscal year. And so what this is is a little bit of a bump in funding to account for those extra years of experience that were not previously being captured. So it equates to about $25,000. So it's a nice little um chunk of money
007that wasn't previously being accounted for. So when you take all that into consideration, you get your revenue control limit, which is your basically your state approved uh funding limit of 3.5 million. And then we get to add in a budget balance carry forward. At this point in time, we're not done with the current fiscal year. So we're estimating a very conservative budget amount carry forward. Um we anticipate this ending around 800,000 where we historically have been over the last year or so. Uh but just in case we are estimating low uh just in case we have any more last minute or emergency expenditures from now until June 30. We still got another month to go. So that gives you your total general budget limit at $4.3 million. Um again note there's no add-ons this year
008but we planned we pre-planned for that knowing that those 25 funding sources were going to be removed in 26. When looking at capital much simpler formula, but your state approved capital allocation is uh in this proposed budget is the $269,295. Um we are anticipating carrying forward into this budget 776,000. Again, uh historically has a large carry board showing the contingency and a conservative uh outlook towards uh any sort of future capital expenses that may not be planned such as emergencies etc. um you get to add on your interest earnings and so we are capitalizing on on holding a large balance by by capturing that interest earnings of 10,000 and that gives you a total capital budget of 1 million 56,510 in this proposed 26 budget looking at the the budget initiatives um one thing we
009are proposing in this 26 budget I mentioned at my last uh meeting when I came out We're researching a compensation increase. Um with some of that research, we have proposed a certified increase from classroom site fund of $1,000. Um so the classroom site fund not recognized in this kind of presentation here, but um if you remember that's from prop uh 301 and that appropriation is is based on sales tax that has continued to go up. Um the appropriation next year for 26 is up to $842 per student. And so this uh bucket of money separate from MLM capital um again has continued to go up. It's only eligible for teachers. And so one way to utilize those funds uh is to um provide the compensation increase from those funds. Therefore saving M to provide compensation
010for others and other employee groups who are not eligible. So $1,000 is roughly around a 2% increase uh for all teaching and certified teaching staff. With regard to classified and admin, um we're proposing an increase from M to 50 cents for classified hourly. And again, uh 2% which is about the the average um for admin the 50 cents for classified hourly is is well above 2% averages about three three and a half% increase uh for your classified hourly employees. And then uh lastly, we're just continuing to work on a five-year capital plan with Miss Cotay. We're looking at leveraging several grants to support the safety and security initiatives that I had. Um one grant in particular working with is called the cost grant. It's issued from the the federal bureau and uh we're currently working
011on a proposal about 150,000 with a 25%age. So that will significantly put a head start to a lot of the safety and security initiatives that have already gone on that are currently in place and continuing. So with that, I'll be happy to answer any questions. How does this year budget compare to last year's budget? Uh we we're still trending um pretty level. So most districts I'll give you a little insight into how Maricopa County is doing. Um the average Maricopa County school is declining about 3% in terms of enrollment. So most county school districts, including myself, are are proposing budgets that are less uh far less than what we have in years past. AO is is a unique and I work for several districts and again you guys have had steady enrollment. um it's interest
012rated stay the same and uh that's that's reflected in um a lot of your budget numbers being consistent on an ongoing basis and then leveraging so when you have a consistent enrollment base when you get that 2% increase from the inflation adjustment from the state that's just um additional money where you can again provide such compensation increases that we're proposing Any other questions? The only other one I have is have you figured out if you're going to give any kind of a increase to the non non-teers the other other employees that included the budget? I know it's on the agenda, right? That's a classified increase of cent. That's already in the budget. Yes. Yeah. Yeah. The the 50 the 50 cents to classify hourly represents like a three three and a half% increase when you
013look at percentage, but the 50 cents is is weighted a lot higher um than than a than a 2%. And so we felt talking about Dr. So taro and and honoring some of those lower hourly employees um and using a a dollar amount versus a percentage to provide some some equality with that compensation increase. So that's where we came from in recommending the 50 50 cent. So Mr. Just just a few items that a few more additional items that that Mr. morning. I talked about earlier Friday and today um the classroom cyclone reserve is is is very healthy right now. It's about a $ 1.5 million reserve. So that by itself, it's about 5 to seven years of being sustainable, but like Tyler mentioned, the sales tax has that constant uh income going in. So
014with that constant income from the sales tax like he stated plus the reserve, it's at least seven to 10 years sustainable. what he's talking about. So that's that's very good. If you remember when we first started with Mr. Ga years ago, he mentioned about five to three to five is is what you want. But if you get five to seven and more, that's that's very healthy. It's very that's very ideal. And also uh it in in uh regarding the classified and the certified amount being the same. This is a best practice that other districts Sunnyside Unified School District does that $1,000 for every teacher versus if it was maybe say 2% across the board for all certified. You would have some teachers maybe going up 8 to 850 and some going up 107. So Sunnyside
015has the 1,00 for all certified and the same with classified that amount goes to everyone gets the same increase. So you know it'll be the third year the third consecutive year classified as that increase and also certified as well. So just working with us tomorrow trying to find the best compensation that at the same time is is uh financially responsible. We want to be We want to have the right compensation in place, but we also want to be financially responsible. It's important. You're saying it's the third year going up after many years of not going up. And again, I keep noticing we have fewer and fewer classified resations and throughout the year. That's one of the huge pieces of that. I saw the work today where they're giving $10,000 for anybody to hire teacher or
016school district. What else I wanted to mention is is and talking with Mr. Moore there there are several probably more than several districts around the state but two that come to mind that I've heard over the last year Roosevelt school district and the Isaac school district are closing schools. They're closing schools and and we're financially sound to where we can continue with these compensation increases which is very positive. So just some more information. Okay. Any further questions? Thank you very much. Thank you. Thank you guys. Bye bye. Have a good night. Bye. Okay, I'll make a motion to I will second. All those in favor say I. I. Any opposed? Motion carries 40 to zero. At 616 or so and it's right that the