District finance staff presented the fourth-quarter financial report at the Sept. 9 board meeting, saying expenditures for the year exceeded budget in some areas and that a conservative projection shows the district's unspent balance is lower than previously forecast.

A district finance presenter said some FY2023 costs rose because the district front-loaded capital projects and recorded certain grant-related purchases through the general fund. The presenter noted roughly $1.1 million of current-year expenditures tied to camera purchases for a federal grant that will be reimbursed.

CFO Kurth told the board that the district's board policy target for unspent balances is 5 to 10 percent. "The board's policy is 5 to 10%. That's our target," Kurth said. Board discussion focused on whether the district had room to hire additional teachers this year. Finance staff and the superintendent advised caution: while the district would like to add staff to reduce class size, the district's projections assume continued enrollment pressure and uncertain federal allocations; staff recommended monitoring enrollment and final state/federal allocations before committing to new hires.

Key operational notes from the presentation:
- The district's projection model currently assumes a slight enrollment decline in coming years; the October 1 certified enrollment count will materially affect funding for the following fiscal year.
- Federal Title allocations for the current year remained uncertain at the time of the meeting; state rules and lagging data on free/reduced-price-lunch counts affected federal grant distributions.
- The presenter said capital-project spending patterns explain some apparent overages in fund-percent metrics (for example, a small remaining balance spent at year-end can push percent-of-budget figures above 100 percent for minor funds).

Board members asked whether an influx of students after the start of the year would change this year's funding. Finance staff said funding is based on the October count for the next fiscal year; midyear additions do not change current-year state funding but would affect the following year if they are on the count date.

Why this matters: the district must balance classroom staffing needs against long-term fiscal stability. Staff recommended keeping the district's unspent-balance target in mind and watching October enrollment and pending federal allocations before approving additional classroom hires.

The board took no immediate hiring action at the Sept. 9 meeting and asked staff to return with updated enrollment and budget projections after the October 1 count and after the state issues final allocations.