Litchfield elementary budget shows district projects, flat teacher pay

The Litchfield Elementary School District closed out the 2025 fiscal year with a nearly balanced budget and a growing portfolio of capital projects, according to its recently published Annual Financial Report.

The district, which serves more than 12,000 students across western Maricopa County, reported $89.8 million in total revenues and $89.1 million in expenditures, with fund balances remaining consistent across operational and capital categories.

At the same time, the district maintained $274 million in total capital assets, including land, buildings and equipment, an indication planned school construction as the district is building its newest campus, Troy Gilbert Elementary. New bond issuances totaled $18.1 million, while bond repayments amounted to $7.78 million, leaving the district with $68.7 million in outstanding debt.

Despite stable finances, the average teacher salary remained virtually unchanged at $66,155, a decrease of $31 from the prior year.

Litchfield’s stagnant salary figures stand in contrast to rising operational demands. Expenditures in the district’s maintenance and operations fund increased by 2.2%, while spending on special education services jumped by 19.4%, reflecting either increased student needs or expanded programming.
Board member Michelle Wallace noted a positive trend in controlling maintenance and operations costs.

“Decreasing the purchase services means that we’re getting more value for our dollar because we’re paying more employees rather than paying higher contract rates,” Wallace said during the board meeting review.

While overall investment in infrastructure remains a priority according to district leaders, the district’s unrestricted capital outlay fund spending dropped by 53% compared to the prior year.

Meanwhile, the district maintains substantial reserves, including $10.6 million in its M&O fund and $16.2 million in its Classroom Site Fund. Wallace expressed support for drawing down some of these funds to benefit students immediately.

“I actually believe it is fiscally prudent, because we have an overabundance of reserves, and I would rather we use our taxpayer funding to improve our schools now than save it for a rainy day beyond the amount that we need to have prudently saved in the coffer,” Wallace said.

Chief Financial Officer Michael J. Vaughn confirmed the spending plan was expected.

“This is pretty much spot on to where I projected we might end the year,” Vaughn said. “This is where we pretty much expected to be, when we approved the budget for the year we’re currently in.”

The report also shows continued reliance on federal education dollars, including funds for Title I and IDEA programs. Some federal project funds began the year with negative balances, a potential red flag for overspending or delayed reimbursements.

The district’s financial presentation was reviewed at a recent governing board meeting and is publicly available on its website.

The district’s leadership has emphasized fiscal responsibility and long-term planning, but key issues remain unresolved. Wallace highlighted an increase in administrative spending as one concern.

“I do want to keep a really close eye on that, because historically, we have had one of the lowest administrative expenses in Arizona,” Wallace said. “And I would really like to keep it that way.”

Visit lesd79.org for more information on the district’s annual financial report.