Midyear finance update: Shoreline fund balance shrank to near‑policy minimum; special‑education gap about $6.3M; enrollment shows modest growth

Shoreline School District staff told the board on March 18 that the district’s general fund has tightened materially and that special education remains the largest driver of the gap between revenues and expenditures.

Assistant Superintendent of Business and Operations Angela Von Essen opened the midyear financial update by saying, “our total fund balance has declined from 9.4% to 2.3% in 2425,” and explained how operating timing and growing expenditures have reduced reserves. Art Clark, Director of Finance and Business Services, provided a line‑by‑line budget comparison and enrollment analysis.

What the update found

- Fund balance: staff reported the district’s total fund balance fell to about 2.3% in the 2024–25 original budget picture; the revised forecast improved the ending fund balance to an estimated 2.4% — still below the board’s 4–5% minimum policy. - Revised budget movement: revenues were revised up by about $2.0 million (primarily from higher basic‑education allocations tied to enrollment), and expenditures were revised up by roughly $372,000. The district’s projected deficit narrowed from about $4.1 million to $2.4 million under the revision. - Special education: special education is the largest area of deficit spending, with staff projecting an approximate $6.3 million funding gap relative to state funding for special‑education services. - Monthly spending and cash: monthly expenditures averaged roughly $15 million and are about 7.3%…