Fountain Hills Unified School District

In fiscal year 2010, Fountain Hills Unified School District’s student achievement was similar to peer districts’ and above state averages, and its operational efficiencies were mixed, with some costs higher and some costs lower than peer districts’. The District’s administrative and plant operations per-pupil costs were higher than peer districts’. Further, the District did not take full advantage of all opportunities resulting from an August 2011 school closure to lower these costs. Specifically, the District chose to retain the closed school’s principal, essentially deciding to employ four principals for three schools. In addition, the District did not follow a consultant’s advice on temperature settings for the closed school, and the costs to purchase and subsequently move playground equipment from the closed school further reduced the District’s cost savings. The District’s food service and transportation programs were reasonably efficient. However, the District did not sufficiently oversee its food service contract to ensure that year-to-year per-meal price increases reflected contract provisions. In addition, the District had to subsidize its transportation program by $105,000, in part because it underreported mileage and therefore did not receive some transportation funding. Further, in fiscal year 2010, the District reduced its classroom spending and shifted monies to other operational areas, primarily administration.