District finance staff brief board: projected $10.3 million drawdown in fund balance for 2025

District finance staff briefed the board on the general-fund outlook and drivers behind a projected drawdown in fund balance for the fiscal year ending 2025. CFO/Treasurer staff reported a projected total fund balance near $35.6 million, a $10.3 million reduction from the prior year, and noted continued pressure from rising contract salaries and benefits. Staff highlighted the following drivers: - Contract salaries grew substantially year-over-year (detail provided in slides); benefit costs also increased, reflecting employer contributions and trust funding changes. - Some positions previously funded by federal ESSER grants have been transitioned to the general fund, increasing recurring salary obligations (examples cited: RTI coaches, additional assistant principals at secondary schools, bus aides/teacher aides). - The district has historically run general-fund increases tied to required local effort and state FEFP calculations; enrollment declines have not produced equivalent operating cost reductions because personnel remain across many school sites. Staff and the superintendent emphasized that capital needs are funded separately via capital outlay and the voter-approved half-cent sales tax, and that attempting to meet the rollback rate solely by reducing capital could leave the district short of required debt service, technology rotations and other capital obligations. The board received the presentation; staff said they will continue refining year-end estimates and provide additional detail before the final budget hearing.