School district financial risk analysisDecember 2020
District
Demographic information 
Less common revenues
| County: | Pinal County | |
| Operational peer group (FY 2020): | 3 | |
| Legislative district(s): | 8 and 16 | |
| FY 2019 | FY 2020 | |
| Students attending: | 3,318 | 3,146 |
| Number of Schools: | 5 | 5 |
| FY 2020 | |
|---|---|
Desegregation |
0 |
Federal impact aid |
0 |
Small school adjustment |
0 |
Voter-approved budget overrides |
0 |
| Total less common revenues per pupil | 0 |
Analysis results
The District’s weighted student count has declined 21 percent since fiscal year (FY) 2017, reducing its student-count-generated revenues and budget limits. By not cutting spending below available revenues (i.e., negative operating margin), the District diminished its General Fund balance while also reducing its operating budget limit reserve. In FYs 2019 and 2020, the District’s General Fund balance decreased 16 and 28 percent, respectively. In FYs 2018 and 2019, the District’s operating budget limit reserve decreased 91 percent. In FYs 2020 and 2021, the District redirected 42 and 39 percent of its capital monies, respectively, to operational spending to avoid overspending its operating budget limit. Those redirected monies contributed to the 79 percent reduction in its capital budget limit reserve since FY 2017.
The District has faced several financial challenges over the past 10+ years, challenges that include but are not limited to the following; declining enrollment; increased special education costs, and failure to pass a Bond or override in over 15 years.
The District’s Financial Risk Mitigation plan focuses on the impact declining enrollment has on staffing needs across the district. To reduce costs as we face reduced enrollment, we are engaged in the following practices:- Implemented a hiring freeze in various departments as needs are reviewed and confirmed.
- Collapse positions for resigning and retiring employees when student numbers no longer support such positions. This action reduced expenditures by $243,000. For example, a third-grade teacher resigned from her position at an elementary school with reduced numbers. AJUSD reassigned a teacher on campus to fill the position. Current staff allocation allowed for the position to be absorbed by the campus, without the need for a new hire.
- Reduce the amount of Special education contracted staff hired by the district (implementation 2021-2022).
- Review staffing models for increased efficiency and savings.
- Special Education (e.g., certified, related services, and classified) - 2021/2022
- School Nurses (e.g, RN & LPN) - 2021/2022
- Transportation Department: Reduction in transportation positions reducing expenditures by $115,000 - 2020/2021
- School Office Staff: Reduction of school office staff positions reducing expenditures by $50,000. - 2021/2022
- Provide a Voluntary Furlough in certain departments during online and hybrid model schooling to allow impacted employees to collect Unemployment while also saving the district money.
- Exploring incentive programs for staff to use fewer substitute days per school year to lower the yearly cost of substitutes in the district.
- Implement TimeClock Plus in the fiscal year 2020-2021. The system will only allow employees to clock in/out using an individual personnel code, to reduce any risk of overtime payments. This action is projected to reduce expenditures by approximately $40,000 in comparison to 2019-20.
Change in weighted student count
| -8.5% | -20.7% |
|---|---|
| (1-year) | (4-year) |
| Fiscal year | Group A WSC |
|---|---|
| 2021 | 3,426 |
| 2020 | 3,743 |
| 2019 | 3,948 |
| 2018 | 4,157 |
| 2017 | 4,320 |
Operating budget limit reserve
| -0.1% | -90.9% |
|---|---|
| (1-year change) | (3-year change) |
| Fiscal year | Balance |
|---|---|
| 2020 | $174,872 |
| 2019 | $175,097 |
| 2018 | $580,129 |
| 2017 | $1,929,875 |
Capital budget limit reserve
| -74.5% | -78.5% |
|---|---|
| (1-year change) | (3-year change) |
| Fiscal year | Balance |
|---|---|
| 2020 | $54,869 |
| 2019 | $215,541 |
| 2018 | $324,926 |
| 2017 | $255,048 |
General Fund operating reserve ratio
| 8.4% | 25.5% |
|---|---|
| FY 2020 unaudited | 2019 audited |
| Fiscal year | Balance | Expenditures |
|---|---|---|
| 2020 unaudited | $1,849,693 | $22,109,541 |
| 2019 audited | $6,200,173 | $24,361,377 |
General Fund operating margin ratio
| -2.7% | -5.2% |
|---|---|
| FY 2020 unaudited | 2019 audited |
| Fiscal year | Revenue | Expenditures |
|---|---|---|
| 2020 unaudited | $21,519,216 | $22,109,541 |
| 2019 audited | $23,158,236 | $24,361,377 |
General Fund change in fund balance
| -27.9% | -16.1% |
|---|---|
| FY 2019 to FY 2020 unaudited | 2018 to 2019 audited |
| Fiscal year | Change amount |
|---|---|
| 2019 to 2020 unaudited | ($716,836) |
| 2018 to 2019 audited | ($1,186,165) |
Capital monies redirected to operations
| 39.2% | 16.3% |
|---|---|
| (FY 2021) | (5-year average) |
| Fiscal Year | Capital monies | Amount redirected |
|---|---|---|
| 2021 | $1,276,871 | $500,000 |
| 2020 | $1,085,575 | $460,000 |
| 2019 | $597,612 | $0 |
| 2018 | $218,007 | $0 |
| 2017 | $236,368 | $0 |
Small school budget limit adjustment
N/A - District is too large to be eligible for adjustment.
| Fiscal year | Adjustment |
|---|---|
| 2021 | $0 |
| 2020 | $0 |
| 2019 | $0 |
| 2018 | $0 |
| 2017 | $0 |
Frozen tax rate
District's primary property tax rate is not frozen.
Receivership
District is not in receivership.