Kyrene School District Governing Board approves its proposed, balanced budget for fiscal year 2023-24, before its scheduled public hearing and assumed final adoption on Tuesday, July 11.
During its June 27 meeting, the governing board unanimously approved the budget as presented.
District Chief Financial Officer Chris Herrmann led the latest presentation on the upcoming school year’s budget, providing updates and minor changes since the board’s June 13 study session.
“Before the budget is reviewed and voted on, I think it’s really important that our community understands some of the important foundations that are in place from our former policy regulation,” Herrmann said at the meeting.
A 2020 change in Kyrene’s budget development aimed to increase clarity, transparency and accountability in the budget process — what Herrmann said is the cornerstone for presenting a sustainable and balanced budget.
The district also uses a zero-based budgeting concept, meaning expenditures must be independently reviewed and justified annually, and any unspent funding or budgets in district offices do not roll over into the following year.
Although, each district school is allowed to roll over unspent balances.
Kyrene’s budget process addresses four main areas: the preparation of the annual balanced budget, the creation of a transparent, responsible budget process to maximize student benefits, the development of a five-year curriculum plan, and the development and administration of a 10-year facilities master plan.
Funding totals
For the coming school year, the district anticipates total revenues from all governmental funds, including ongoing revenue and one-time funding, to total $218.5 million, while its expenditures are expected to total $239.8 million, bringing the difference to $21.2 million.
While it appears expenditures outweigh revenues, the final proposed budget is balanced once its operational funds, which support the district’s day-to-day functions, are incorporated.
“On the next few slides, it will show in some cases that expenditures might be greater than the revenues in some funds but a balanced budget means that current year ongoing revenues are equal to or greater than current year ongoing expenditures,” Herrmann said.
He noted that there are some outlying cases that impact budget balancing like one-time expenditures, one-time state funding and the use of carry forward balances, which he said will impact the following year’s budget.
Expected impacts for 2023-24 entail a delayed $9.3 million bond sale following expenditures made; $2.1 million in special revenue carry-forward balances; $4.3 million in District Additional Assistance override carry-forward balances and $210,000 in debt services carry-forward balances.
Adjustments were also made since the last meeting within the total revenue and expenditures of operational funds like the general, classroom site, instructional improvement, civic center and community school funds.
“Those amounts shown today now reflect a more accurate picture for the expected bond interest and principal payments next year after confirming those numbers with our bond underwriters,” Herrmann said.
Like the overall revenue and expenditure totals, those for the district’s operational funds showed varied results in terms of having a balanced budget for each category.
However, Herrmann did say looking at the budget at this level of detail gives a more accurate overall picture of the budget and whether it is sustainable.
In his presentation, he also clarified concerns with the district’s staffing budget. At an earlier budget meeting, staff presented that there would be a $1.5 million reduction to school-based staffing in conjunction with a $1.4 million investment in 19 additional teachers to decrease class sizes from kindergarten to the third grade.
Based on enrollment projections, there was an initial $2.9 million reduction in classroom staff, but with the goal to decrease class sizes, $1.4 million of that was used to provide the additional staff members. This left the district with a net budget impact of $1.5 million.
Changes were also made since the last meeting concerning one-time expenditures, bringing the total amount down to roughly $8.6 million. Funds in this category are made up of $4.1 million in one-time state funding and $4.5 million in carry-forward balances from the 2022-23 fiscal year.
These funds will go toward employee stipends, strategic planning, school/student support, special education, professional growth, and operational and election costs.
With board approval, the budget will have its public hearing on July 11, where it will likely be adopted and then submitted to the state.
Reporter Caroline Yu can be reached at cyu@iniusa.org
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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.
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“Those amounts shown today now reflect a more accurate picture for the expected bond interest and principal payments next year after confirming those numbers with our bond underwriters,” Herrmann said.
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