District CFO reports $1.2M special‑education safety‑net reimbursement and projected positive fund balance for 2024–25

The district’s executive director of financial services presented July financial results and a mid‑year outlook, reporting a $1.2 million special education safety‑net reimbursement and a projected positive ending fund balance for fiscal year 2024–25.

Why it matters: Special‑education and transportation cost pressures were identified as ongoing budgetary challenges; the safety‑net reimbursement and small enrollment growth helped the district avoid a deeper shortfall and improved its OSPI financial indicator projection.

Gina Zutwalks (executive director of financial services) told the board that after closing July she saw both positives and challenges. Positives included community support for levies, compliance with staffing ratios for kindergarten–third grade, and an enrollment increase of about 59 students above the budgeted figure for 2024–25.

On special education, Zutwalks reported a special‑education safety‑net award of $1,200,000 that will reimburse the district for high‑cost placements and extraordinary services incurred during the prior fiscal year. She explained the application and documentation process and said the funds materially improved the district’s fund balance outlook.

Zutwalks estimated the OSPI financial indicators score at about 2.2 for 2024–25 (using extrapolation of year‑end data); she noted the district’s score for 2023–24 had been 1.5, which placed the district in OSPI’s financial warning range. The presentation reviewed both OSPI and State Auditor Office tools that flag districts with cautionary indicators.

Zutwalks said the district had made interfund loans to meet cash‑flow needs during low‑revenue months (especially June) in recent years but reported those interfund loans were repaid, and, after entries for August were complete, she expected an ending fund balance for 2024–25 of more than $2,000,000. She cautioned the fiscal year was not fully closed as of the July report and staff would finalize entries for August.

Board members asked about the timing of reimbursements; Zutwalks said reimbursement lag can mean costs are incurred from September through the year and that legislative changes may move to quarterly payments for 2025–26, reducing future lag.

The presentation also reviewed the district’s participation in the State’s transportation safety net and the Washington Schools Risk Management Pool (covered elsewhere in the meeting). Zutwalks closed by noting the district would continue to monitor federal funding uncertainty and rebuild fund balance over time.

Ending: The report was informational; no vote was required. The board said it appreciated the update and asked staff to finalize year‑end entries.