Silver Falls leaders propose one-time transfers to clear multi‑year negative balances, present supplemental budget in June

Kim Kellison, superintendent, told the Silver Falls School District board that updated revenue and expenditure projections now show more resources than previously expected and recommended using those one‑time funds to clear longstanding negative subfund balances.

Kellison said projected state school fund revenue is about $343,000 higher than originally budgeted and local intermediate revenues about $194,000 higher; combined with a beginning fund balance that came in stronger than anticipated, she said the district can propose transfers that would eliminate multi‑year deficits in food service, Medicaid reimbursement carryovers and facility rental deficits.

"We are proposing that we would bring a supplemental budget to the June 9 board meeting that would allow us to transfer the spending authority that the board has provided within instruction to apply to those debts and have Silver Falls walk in 07/01/2025 having completely cleared the books short of long term bonds," Kellison said.

Kellison said the transfers would be presented as an appropriation change (a supplemental budget) and would be advertised publicly per Oregon budget law. She estimated the district could start fiscal year 2025–26 with an estimated $2.1 million ending fund balance after the transfers, up from the level projected when the budget was adopted last year.

Board members asked whether paying those debts now would limit options for restoring staff or programs. Kellison and other district leaders said the transfers do reduce the district's fund balance by that amount but allow the district to remove multi‑year negative subaccounts identified by the auditor. They framed the move as a financial cleanup that auditors had recommended; one board member noted the auditor had requested the district resolve negative subfund balances.

Kellison said the transfers would not touch long‑term bonded debt and that the board would still formally review and vote on the supplemental budget at the June meeting. "This will be a board decision," she said. "There is a formal process to a supplemental budget which does require some public notices."

The board did not vote on the transfers at the meeting; the item will return as a formal supplemental budget request at the June 9 meeting.

Ending: The district plans to present the supplemental budget for board action on June 9; if approved, the transfers will be processed before the new fiscal year begins on July 1.