The Gilbert Public Schools Governing Board approved its 2025-26 budgets during a June 24 meeting, giving the green light to financial plans for maintenance and operations, capital and other required funds.
While the district’s budget work reflects months of planning, officials acknowledged that some major pieces remain uncertain heading into the next school year.
The budget approval comes at a challenging time for the district, which is conservatively projecting a decline of 1,300 students in the upcoming school year.
During the meeting, Associate Superintendent Bonnie Betz presented what she described as a "bare bones budget" that represents a "worst case scenario" as the district still awaits final budget numbers from the state legislature.
"We still do not have a finalized budget from the state legislature,” she said. “So there is really no news or nothing that has changed from what we presented two weeks ago.”
The maintenance and operations portion of the budget, which covers salaries, benefits and operating costs, is projected at $282.82 million.
The approved M&O budget reflects a $130,000 decrease from the previous year, with a total budgetary deficit of nearly $4.8 million that needed to be addressed. To close this gap, the district is utilizing approximately $4.5 million from classroom site funds and implementing various cost-saving measures.
The district's budget is built on conservative projections, including a reduction of 1,300 students in average daily membership, split equally between high school and K-8 levels. ADM is an enrollment-based figure that is key in the state’s funding formula.
The smaller ADM translates to a weighted student count reduction of 1,679, significantly impacting the district's funding.
On the positive side, the district will benefit from a decrease in Arizona State Retirement System rates, saving nearly $500,000.
Additionally, the budget includes a previously approved 2% pay increase for staff, with the possibility of an additional 1% increase in January if enrollment exceeds expectations and if Proposition 123 funding is restored.
The capital budget of $47.98 million shows a significant reduction of $20.7 million compared to the previous year, largely due to decreased carryover funds.
Of the $15.2 million allocated for facility renewal, the majority will go toward structural improvements, particularly roof replacements at Desert Ridge High School, Greenfield Junior High and Gilbert High School, which account for nearly $11 million.
"Most of that $13.5 million (in structural improvements) is in roofs,” Betz said. “So we have to really focus on keeping our students comfortable, students and staff comfortable, safe and dry. And so the roof plays a key role in making sure they are kept dry.”
The district faces several budget risks, including potential further enrollment declines and uncertain state funding.
However, opportunities include the possibility of fewer students leaving than projected, greater funding from the legislature, and the potential restoration of Proposition 123 funding, which would add approximately $2.2 million to the budget.
The estimated tax rate is expected to decrease further than the projected $0.19 per $100 of assessed value once final cash balances are determined.
We would like to invite our readers to submit their civil comments, pro or con, on this issue. Email AZOpinions@iniusa.org. Tom Blodgett can be reached by email at tblodgett@iniusa.org or follow him @sp_blodgett on X.
Meet Tom Tom Blodgett joined Independent Newsmedia, Inc., USA, in 2022, when the company acquired Community Impact Newspaper's Phoenix-area properties. Raised in Arizona, he has spent more than 35 years in journalism in the state.
Community: He has served as an instructional professional in the Walter Cronkite School of Journalism and Mass Communication since 2005, and is editorial adviser to The State Press, the university's independent student media outlet. He also is director of operations for an 18U girls fastpitch softball team from Gilbert.
Education: Arizona State University with a BS in Journalism.
Random Fact: He lived in Belgium during his freshman year of high school.
Hobbies: Tweeting enthusiastically about ASU softball (season-ticket holder) and grumpily about other local sports (pessimistic fan).
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