Gilbert Development News

Gilbert Public Schools Governing Board Adopts FY2027 Budget Amidst Financial Planning and Projections

The Governing Board of Gilbert Public Schools adopted the proposed budget for Fiscal Year 2027. The budget development process included aligning with the Strategic Operating Plan (SOP) and override commitments. Key components of the budget include cost increases for salary competitiveness, safety personnel, social workers, behavioral health counselors, and class size reduction. The budget is based on a projected loss of 1,200 Average Daily Members (ADM), with the decrease split between K-8 and high school students. The Maintenance & Operations (M&O) budget capacity projection was influenced by the governor's proposed budget and specific details, including base level amounts and transportation support. While some state budget changes occurred after the proposed budget was posted (e.g., Proposition 123 not being included, but one-time additional funds for DAA and free/reduced lunch being included), the proposed budget adoption proceeded based on the initial public posting, with revisions planned for the fall. The budget also accounts for teacher experience index increases and student count decreases. The classroom site fund allocation increased per student, with a projected draw down of the fund balance to cover the difference. Operating cost increases include a 3% pay increase, medical insurance premium increases, inflationary increases for fuel, estimated loss of safety grants, reduction to IDEA funding, and estimated minimum wage increases. Budgetary savings are projected from a decrease in personnel due to fewer students, district office personnel reductions, vacancy and turnover savings, and the closure of Pioneer. The total budgetary deficit of approximately $10.2 million is to be balanced through ongoing spending for pay and minimum wage increases, M&O one-time budget balance carry forward, and classroom site fund contribution. The unrestricted capital fund is projected to receive significant funds from district additional assistance and budget balance carry forward, with interest earnings contributing to this. Facility renewal is allocated $17 million. Other fund budgets for community schools, nutrition services, instructional improvement, state and federal grants, and other cash funds are also detailed, with some adjusted as needed. Average teacher salary is projected to exceed $70,000 with the approved 3% pay increase. Estimated tax rates show a year-over-year reduction of roughly 8 cents, primarily due to the M&O override. Risks and opportunities were identified, including AEL calculation, further student loss, potential legislative funding reductions, Proposition 123, inflationary increases, and minimum wage increases, balanced by opportunities such as increased student counts and greater legislative increases. The final adopted budget reflects adjustments based on the legislature's actions, with a net adjustment of approximately half a million dollars compared to initial projections, and a revision planned for the fall using updated forms.