Cedar Unified School District (“CUSD’) acknowledges the remaining deficit balance of $336,253.00 in the new school facilities fund. In February 2019, the District developed a Receivership Exit Plan that was provided to the Arizona State Board of Education. The Receivership Exit Plan included the repayment of the New School Facilities Fund deficit over a five year period to be completely eliminated by end for FY 2023. As of the end of fiscal year 2020, CUSD’s reduction of the New School Facilities Fund deficit exceeds the District’s repayment schedule provided in the District’s Receivership Exit Plan. The district has been paying the deficit from funds allocated by Impact Aid through direct transfer from Impact Aid allocations.

The reduction in the District’s weighted student count (‘WSC”) from FY 2019 to the current WSC is the result of a combination of the Covid-19 pandemic resulting in reduced enrollment in the kindergarten program and over the last four years, the superintendent position with the district has been a revolving door. This has led to mistrust from the community, lack of leadership in the academic programs, and other discords in the school including corrective action in different programs. In addressing the fluctuation of student enrollment, the current superintendent and personnel have developed and implemented a strategic plan that starts with regaining the trust of the community through academic standards based aligned curriculum, professional development that addresses the needs of the students, parents and staff, that lead to student achievement and through creating a culture conducive to a healthy environment for all involved.

The District continuously monitors student-count-generated revenues and budget limits and makes the necessary spending adjustments through hiring freezes reduction in staffing and reduced spending when necessary as a result of reduced State funded revenues. During the Covid-19 pandemic and the current reduced student count the district has been operating at a reduced staff and has had reduced transportation costs both in fuel and repairs and maintenance that has enable the District to operate within the amounts funded by the State.

The District has and continues to operate only within its amounts funded by the State and not to the funding budget capacity limit. The District does receive Impact Aid Funds that are used to for capital expenses and operational spending in excess of amounts funded by the State. However, the District does not spend unfunded budget limits and has consistently underspent the amounts funded by the State over the last several years.

Although the District redirects its capital monies to operational spending that is funded by the State. The District capital spending needs has been funded by Impact Aid or through School Facilities Board grants. During FY 21, the District has been provided with a CARES ACT grant, some of which has been allocated to capital spending.