Eagle Point School District 9 leaders told the board on Sept. 12 that the district’s projected ending general fund balance for the 2024–25 year will be materially lower than the May budget projection. Administrators said the district’s current estimate for the ending fund balance is about $2.86–$2.9 million — roughly $2.1 million less than the figure presented in May.

Board members heard a multi‑part explanation from district staff: the audited beginning fund balance for the fiscal year came in higher than the projection used in the May budget, but during the fiscal year roughly $2 million in appropriations were moved into special revenue (ESSER and related funds), reducing the general fund. Staff also cited lagging or delayed grant reimbursements, including seismic and HVAC project reimbursements and other timing differences, as drivers of the variance.

Gwen (district staff) and Superintendent Andy briefed directors on steps under way to firm up numbers: the first payroll run (scheduled within days of the meeting) will provide clearer salary and benefits costs; open enrollment for benefits had just closed, and employee elections could shift the district’s liability; grant reconciliation is ongoing; and the district is auditing special revenue and construction funds to ensure correct allocations. Staff said they are working with outside forensic accounting help to review the books.

Key financial details cited in the meeting include:
- Current projected ending general fund balance: about $2.86 million (est.).
- Difference from May projection: roughly $2.1 million lower than previously expected.
- One‑time appropriations moved to special revenue this summer: about $2.0 million.
- Seismic Rehabilitation Grant award (Upper Table Rock Elementary): about $2.5 million (project costs have been incurred; reimbursement is pending).
- High school HVAC/seismic funds: roughly $500,000 in reimbursement currently held up.
- Insurance line items: liability/property/workers’ comp running approximately $150,000 over budget.
- Electricity exposure: staff estimated an additional $80,000 over budget based on recent rate and usage changes.

District staff warned that reliance on grants such as ESSER, Student Investment Account (SIA) and Student Success Act (SSA) creates long‑term vulnerability: many support staff, counselors and CTE teachers are funded through these grants, and state or federal reductions or delays would affect staffing. Staff said they expect to know more about state funding impacts in December and are planning for contingencies.

No formal budget decisions were adopted at the Sept. 12 meeting. Staff outlined near‑term actions: run payroll to finalize estimates, continue grant reconciliations, consider a hiring slowdown for non‑essential positions, evaluate non‑critical capital projects and prepare for the possibility of a supplemental budget request to the board. The superintendent said the board should be prepared for difficult decisions if the downward trend continues and that the district will pursue cost‑saving options (insurer RFPs, postponing bus purchases, tighter grant controls) before deeper staffing cuts.

Board members asked several procedural questions about the last audit, grant accounting and timing of reimbursements. Staff committed to providing a clearer monthly package showing general fund, special revenue and construction balances; to bring recommended control changes to prevent future re‑allocations without notification; and to return to the board with updated numbers after payroll runs and further reconciliation.