Citizen Portal
Sign In

Troy board hears stark fiscal forecast, flags federal and state funding risks

5942560 · October 14, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Board members discussed a five‑year financial forecast showing a projected drawdown in reserves and debated near‑term risks from state budget action and possible loss of federal funds. The board approved the forecast but asked staff to update the board as revenue and legislative developments evolve.

The Troy City School District Board of Education on an unspecified date approved a five‑year financial forecast that projects a net decline in available cash through fiscal 2029 and identified several risks that could require future adjustments.

Board members heard a detailed presentation from district finance staff describing assumptions behind the forecast, including uncertain state biennial budget actions, possible reductions in federal program funding, and local property valuation changes. The board voted to approve the forecast as presented while emphasizing that it is a working document and will be revised as material changes occur.

The presentation noted two near‑term fiscal risks: (1) ongoing state budget negotiations after a veto that could change revenue assumptions, and (2) potential reductions in federal funds that currently support staffing and programs. Finance staff said Title I and IDEA Part B were expected to remain among the largest federal revenue sources but cautioned that other federal grants could disappear as early as the end of the school year, which would shift costs to the general fund unless replacements are found.

Board members pressed staff for clarity on the timing and magnitude of potential adjustments. One board member pointed to an assumed 1.5 percent growth in income tax collections and questioned whether that was conservative relative to recent history. Staff said some assumptions reflect limited data from the county and state and that additional updates will be provided as more information becomes available.

On expenditures, staff called attention to increases in special education costs tied to regional ESC (Educational Service Center) billings, an expanded capital outlay because the general fund will now cover the district's Chromebook replacement cycle (the 1:1 initiative), and an anticipated increase in purchased‑service costs (natural gas) that the board later addressed by extending a utility hedging agreement.

Board members requested regular updates and said they expected staff to notify the board when forecast changes approach a material threshold. Finance staff said they would use the weekly board update and return to the board for formal reapproval if changes accumulate to the point that a resubmittal is required.

Vote: The board voted to approve the five‑year financial forecast for fiscal years ending 06/30/2026 through 2029 (motion moved and seconded; roll call recorded as yes from all voting members).