Litchfield schools detail override, bond spending as November election approaches

By Stacy Mantle
Mail

Litchfield Elementary School District spent approximately $11.7 million in maintenance and operations override funding during fiscal year 2026, according to a report during its latest public meeting.

The funds are intended to support employee compensation as the district prepares for a November election that will determine whether the funding continues.

Chief Financial Officer Michael Vaughn presented the district's annual financial report and separate updates on its voter-approved override and bond programs during the Oct. 13 governing board meeting.

The board unanimously approved the financial report in a separate vote following approval of its consent agenda.

Override supports employee compensation

According to Vaughn, the district's existing 15% maintenance and operations override provided compensation to 704 employees, including teachers, instructional coaches, special education personnel and other staff.

The override accounted for about $11.7 million of the district's operating budget during fiscal year 2026.

Vaughn said the district sent individual notices to affected employees explaining how much of their compensation was funded through the override.

Vaughn said the district intended to inform employees how much of their compensation came from the local override, not suggest their pay would immediately disappear if voters rejected its renewal.

He acknowledged some employees interpreted the notices as a warning that their compensation would disappear if the override failed.

The current override has two years remaining before a required phase-down would begin without voter renewal.

When board member Kimberly Moran asked whether the district would have to adjust its finances if the override were not renewed, Vaughn responded, "We would have to balance the budget. Yes."

The November ballot includes a proposition asking voters to continue the existing override.

District reports lower-than-expected operating deficit

The district used approximately $2.25 million in carryover funds to support maintenance and operations during fiscal year 2026, about $1 million less than projected in March.

Vaughn attributed the improvement partly to approximately $484,000 in state funding that the district had previously treated as temporary, along with spending that came in approximately $481,000 below projections.

Still, the district relied on prior-year funds to cover a portion of its operating costs.

Vaughn said the administration will continue examining recurring revenues and expenditures as it develops the fiscal year 2028 budget, with the long-term goal of balancing ongoing spending against ongoing revenue.

The district also reported about 80% of its maintenance and operations spending went toward salaries and benefits, with another 12% used for purchased services, primarily contracted employees filling otherwise vacant positions.

Bond spending includes security and school construction

The district also reviewed expenditures from its 2014 and 2023 voter-approved bond programs.

Of the $35 million authorized in 2014, about $33.9 million had been spent as of June 30, leaving about $1.1 million.

The 2023 bond program has supported construction of Troy Gilbert Elementary School, campus security improvements, transportation purchases and renovations at existing schools.

Among fiscal year 2026 expenditures were:

• $2.1 million for security camera systems
• $917,000 for front-office remodeling
• $4 million for modular classrooms at Palm Valley Elementary School
• $1.2 million for restroom renovations at Western Sky Middle School

Vaughn also reported approximately $7.1 million in energy and water savings improvements.

Spending associated with Troy Gilbert Elementary School totaled about $35.8 million through June 30, although Vaughn emphasized that the figure was not the completed project's final cost.

The district spent about $57.6 million from bonds issued under the 2023 authorization, with approximately $32.4 million in available proceeds remaining as of June 30.

Board member Moran praised the district's management of its bond funds.

"The fact that we still have a million dollars left from the bonds from 2014 means that we are not just spending this money willy-nilly," Moran said. "We are spending it very intentionally to make sure that we are making the most of every dollar."

District officials said future bond work will include playground improvements, fire alarm replacements and roofing projects.

Editor’s note:   A grant from the Arizona Local News Foundation made this story possible. The foundation awarded 15 newsrooms to pay for solutions-focused education reporters for two years. Please submit comments at yourvalley.net/letters or email them to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.

Stacy Mantle
Education Solutions Reporter

smantle@iniusa.org

Meet Stacy
Stacy Mantle is joining the team at Independent Newsmedia, Inc. as an Education Solutions journalist, thanks to a grant from the Arizona Community Collaborative. She has a long history in education that ranges from teaching junior high and middle school to developing curriculum and standards-based assessments.

Community: A longtime advocate for animal welfare, Stacy is deeply involved in rescue efforts and volunteers with several nonprofit organizations.

Random Fact: Once upon a time, she shared her home with a pet coyote and two wolf hybrids. The experiences were wild enough to become the subject of her first book!

Education: She holds a BA in English with a minor in Political Science, a Post-baccalaureate in Secondary Education, and an MBA with a emphasis on Marketing.

Hobbies: In her spare time, Stacy writes fast-paced urban fantasy novels, crafts small-batch artisan soap, and is always up for hiking or off-roading through the Arizona wilderness with her husband of 23 years.