FORT HUACHUCA — It’s been a surprising and some say shocking two weeks for the Fort Huachuca Accommodation School District ever since the administration and school board were informed by the Arizona auditor general that they could no longer spend the federal impact aid funds they annually receive in the same way they’ve been doing for years.
“We weren’t aware there was a problem,” said Trudy Berry, who as Cochise County superintendent of schools serves as the sole board member for the three schools on Fort Huachuca. “They just informed us we would no longer be able to spend beyond what the state revenue control limit allows.”
The state of Arizona has essentially interrupted “business as usual” at the Fort Huachuca schools, ordering them to re-configure how and where they allocate and expend the extra federal monies received for servicing the children of U.S. military families.
It is a mandate from Phoenix that caught the fort schools’ administration and board off guard, and one that has them scrambling to find ways to reduce a “debt” to the state that may run in excess of $3 million.
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“It’s kind of crazy,” said Berry, whose role with the county places her in charge of the accommodation district on post. “I’ve been in this job for six and a half years, and this is the first time they (the state) said we’re not complying with budgetary reporting requirements.”
Because Fort Huachuca has no inherent property tax base, according to federal law the state may not withhold or reduce funding for any schools operated on post.
But because the schools serve children of active-duty military, they are eligible for federal impact aid that contributes approximately $7 million a year to the district. Among other benefits, these funds have permitted the fort to construct two new school buildings over the past few years and to propel its teachers into the ranks of the highest paid in the county.
But based on the most recent budgetary audit, the Arizona Department of Education is requiring the fort’s schools to live according to the same financial restrictions imposed on all public schools in the state (ranked 49th nationally in per pupil spending), and refrain from using their federal impact funds for any special counseling or tutoring programs that students might require, or from supplementing the maintenance and operations budget that would fund attractive salaries for highly qualified, experienced teachers.
In essence, Phoenix is saying, “You can’t use your federal dollars the way you want.”
The board and administrators are not happy.
“We’re in process of complying with what the ADE is asking us to do,” Berry said, “but we’re not accepting it.”
“We’re working together to solve the problems,” said Ronda Frueauff, superintendent of the fort schools. “Mrs. Berry and I shared the letter we received from the ADE with administrators and staff, and although everyone is still in shock, they were very professional in the way they accepted the information. The teachers and staff will get behind whatever political route we need to go.”
Frueauff has collected cost-and-budget-saving ideas from across all school staff members and is assigning those results to a committee to determine their feasibility.
Frueauff and Berry also collaborated on a letter to all staff that said, in part, “Currently, the state has indicated that whatever amount is overspent each year will be repaid through reduction in state funds over a five-year period (only) if there is legislative intervention.”
What that means is, the state Department of Education intends to go back one fiscal year (they are legally entitled to go back three years) and then tell Fort Huachuca schools how much they overspent their revenue control limit. Financial amends must be made in two years — unless special legislative action is taken to extend the time frame.
Absent such action, the Department of Education may reduce the district’s funding allocation by 50 percent of the “overspend” for the current fiscal year as well as the next. For example, if it were determined that in fiscal year 2006-2007 the district overspent by $3 million, and if the district is due $5 million for the current year, the state would subtract $1.5 million from that amount.
Berry, Frueauff and district business manager Deborah Emery remain in continuing contact with Phoenix to “re-make” the 2007-2008 budget according to the Department of Education’s new orders.
In the meantime, Berry is reaching out to U.S. Rep. Gabrielle Giffords, Maj. Gen. John Custer, state Rep. Jennifer Burns, president of both the State Board of Education and Cochise College Karen Nicodemus, and anyone else with clout she can think of to draft new legislation that would exempt or mitigate what the state dictates over the fort’s schools spending.
“We’ve always spent our federal monies as if they were grants,” Berry said. “The federal government thinks that our students are special and need extra services because of the jobs their parents do for the nation. So they give us extra and we’ve used it for the benefit of those kids.”
The Fort Huachuca Accommodation School District board will have its next regular meeting at 3:30 p.m. on Monday in the library at Gen. Myer School.
HERALD/REVIEW reporter Cindy Skalsky can be reached at 515-4611 or by e-mail at cindy.skalsky@svherald.com.

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Laura Doty wrote on Sep 9, 2007 1:40 PM: