Kyrene School District is set to begin its budget development process for the coming school year, taking a look at the proposed state budget at its latest governing board meeting held virtually on Jan. 23.
With Gov. Katie Hobbs’s budget proposal released on Jan. 12, Kyrene School District Governing Board received a presentation at its Jan. 23 meeting from district CFO Chris Herrmann about what this might mean for the district’s budget and education at large.
As explained in the presentation, Kyrene staff will begin the development of the district’s operational budget in February, which will consist of enrollment and revenue projections, capital projects, organizational staffing and department spending and consumption. This process will go through May.
“Each one of those areas will be brought forward to the board during study session presentations during the spring,” Herrmann said at the meeting.
Going into the highlights of the governor’s proposed budget, Herrmann discussed areas of the document that might impact Kyrene.
These areas include a proposed $200 million in building renewal funding, $166.2 million in required inflation adjustments, $29 million in capital additional assistance funding and $4.5 million to provide free meals to students eligible for reduced-price meals.
Of the $200 million in statewide building renewal funding proposed, Herrmann said the district expects an ongoing baseline of $16.7 million for building renewal grants and $183.3 million in one-year funding.
In discussing the governor’s inflation adjustments, he noted while school districts experience inflation increases based on the annual change in GDP, which was 5.8% in the last year, the maximum increase for districts is 2%.
“This funding amount is definitely not equivalent to the actual inflation increases that have been experienced across the state this past year,” Herrmann said.
Other areas related to K-12 education in the governor’s proposed budget that Herrmann discussed in his presentation were:
$250,000 for an actuarial study exploring whether to include educators and school personnel in state health insurance;
A one-time $15 million investment in the Arizona Teacher’s Academy for scholarships and supporting future educators;
$77.9 million in funding for new school construction across seven different school districts;
The establishment of a permanent fix to the Aggregate Expenditure Limit for K-12 schools;
Reform for ESA vouchers for accountability, transparency, fiscal responsibility and student safety; and
Proposition 123 to fund schools and provide teachers and support staff with raises.
Following his presentation, board Vice President Margaret Wright asked for clarification on how the potential for state health insurance for district employees would interact with Kyrene’s existing system.
In response, Herrmann said there are still details to work out in terms of coverage, plan options and participation, especially given the funding for that study was just proposed.
“I think at this point it’s just too hard to tell or to know what some of those things are, but it’s something we definitely want to keep our eye on and be aware of if those possibilities might exist in future years,” he said.
Arizona’s legislative session began Jan. 8, and still so early in the budget process a lot of questions remain on how the district will actually be impacted.
Board President Kevin Walsh also had a question regarding the alternative expenditure limit, confirming with Herrmann that changes to the AEL are not squarely within the control of state leadership, and any changes would require a constitutional amendment by voters.
Herrmann confirmed, with Walsh following up with another question on the AEL, asking about Kyrene being “off the hook” for the current year based on action in the previous year’s legislative session.
Kyrene received a one-year exemption, which exempted the district’s limit from any changes for the 2023-24 fiscal year, so its AEL should remain the same in its coming budget proposal.
Kyrene will vote on its proposed budget on June 25 along with a call for a public hearing. A public hearing will again be held on July 9 as well as the board’s vote on the adoption of the district’s budget.
July 15 is the deadline for the district’s budget to be adopted and submitted to the state.
Reporter Caroline Yu can be reached at cyu@iniusa.org. To voice your opinion on this story, connect with us at AzOpinions@iniusa.org.
Meet Caroline Caroline Yu joined Independent Newsmedia, Inc., USA, in 2020 as a summer intern covering Scottsdale. As an intern, she continued her coverage of Scottsdale, Paradise Valley and Tempe. After graduating in 2022, Caroline became a full-time reporter for Scottsdale and Paradise Valley. She is currently reporting for the Tempe market.
Community: She is a supporter of the environment and tries to get involved with related community events.
Education: Arizona State University with a BA in Journalism and Mass Communications, with a minor in French.
Random Fact: She used to be a ballet dancer for 10 years.
By 
“Each one of those areas will be brought forward to the board during study session presentations during the spring,” Herrmann said at the meeting.
In response, Herrmann said there are still details to work out in terms of coverage, plan options and participation, especially given the funding for that study was just proposed.
Comments
No comments on this item Please log in to comment by clicking here