Superintendent and School Board Present Joint FY 2026 Budget: Sustaining Our Investment in Students, Staff and Schools

Budget prioritizes staff compensation, safety, and student-centered investments, while addressing significant funding challenges

APS Superintendent Dr. Francisco Durán and the School Board presented the jointly developed proposed budget for fiscal year (FY) 2026 on March 13.

The proposed $845.4 million budget represents a 2.31% increase over FY 2025, with a continued focus on compensation, staffing adjustments, safety, and operational efficiency. Despite these investments, APS began this budget cycle with a $41.4 million deficit and identified $22.36 million in reductions to help close the gap, primarily through cuts to Central Office positions and operational efficiencies.

“Our staff remain a top priority because they are the foundation of our success,” said Dr. Durán. “This budget reflects our commitment to supporting all students and delivering on the promises of our 2024-30 Strategic Plan while ensuring we operate efficiently and responsibly.”

Investing in Staff, Students and Schools

The top priority in the proposed budget remains staff compensation, with $24.96M million allocated for an average 4.26% pay increase. This includes a step increase for eligible employees and a 2% cost-of-living adjustment (COLA) to keep APS competitive with neighboring school divisions. The proposal also funds six additional weeks of parental leave for staff, adding to the two weeks provided in last year’s budget.In addition to compensation, APS is making targeted staffing adjustments to align with student needs, including:

• $630,000 to adjust bus driver contracts, reducing overtime costs and aligning with regional practices, and to recruit and transition international teachers for dual language immersion
• $5.5 million to adjust school staffing based on enrollment and student demographics (additional 23.3 full-time employees)
• $2.29 million to begin implementing phase one of the Planning Factor Study for English learners and students with disabilities
• $1.34 million to enhance student safety, adding six new School Safety Coordinators (SSCs) and increasing athletic training staff, including reclassifying positions

Reducing Costs While Preserving Student-Facing Resources

To manage the budget gap, APS is cutting Central Office expenditures by $12.66 million, eliminating 27.5 positions, including four positions transferred to grant funding. In the FY 2025 budget, we reduced 21 positions, adding up to a two-year reduction of 48.5 Central Office positions totaling 31.06 million.Other key reductions include:

• $5.54 million in efficiencies through optimizing student-teacher ratios
• $3 million in savings by making Extended Day a self-supporting program

“This budget is the result of months of careful planning and collaboration to ensure that we are being good stewards of public funds and implementing sustainable budgeting practices,” said School Board Chair Mary Kadera. “We worked to preserve student-facing resources, invest in compensation, and avoid class size increases. While this budget cannot fund every need, it reflects our commitment to keeping APS as strong as possible for years to come.”

Unfunded Needs

Significant needs remain unfunded totaling $50.6 million, including an additional 2% COLA increase ($12.24 million) for staff, further class size reductions ($8.7 million) and $27 million needed for additional instructional staffing enhancements to support student success.

Advocating for Additional Funding

APS continues to rely heavily on local and state funding. The proposed County transfer increases by 1.2%, and state revenue rises by 7.96% under the General Assembly’s budget amendments. However, APS urges continued advocacy for increased state and local funding to address ongoing financial challenges.“This budget reflects difficult choices, but our commitment to our students, staff and families remains firm,” said Dr. Durán. “We want to thank the County for their ongoing support and partnership, and we will continue to work with the County and state to secure the resources needed to sustain and grow APS to best serve all students.”

Next Steps

The School Board will hold multiple work sessions and a public hearing before adopting the final budget on May 1. APS encourages staff, families, and the community to review the budget materials and share feedback through [email protected] or at the April 3 public hearing.

View the full budget presentation. For more information on the budget process, visit our website.