Washoe County School District approves FY2026 tentative budget; deficit trimming begins

The Washoe County School District board of trustees on April 8 approved the district’s tentative fiscal year 2026 budget, voting 7-0 to file the required budget while directing staff to continue work to close a remaining shortfall.

The tentative budget includes roughly $4.1 million in immediate reductions and accounting changes and additional staffing requests that together leave the district with a preliminary general-fund shortfall the staff estimates at about $6.6 million. The board approved the package after a presentation from Chief Financial Officer Mark Mathers and budget staff.

Mathers told trustees that state law requires the district to submit a tentative budget to the state on or before April 15. “We have to approve a tentative budget and submit to the state. That’s a state requirement. And so here we are, before you,” Mathers said.

Why it matters — the district started the FY2026 process with an estimated general-fund deficit of about $9.7 million driven by flat per‑pupil funding and rising costs. The tentative budget approved Tuesday includes several categories of changes: - Stopping ongoing general‑fund contributions to the district’s OPEB trust after actuarial review indicated assets covered projected liabilities (staff estimate: roughly $1.5 million in general‑fund savings avoided). - A change in Medicaid reimbursement administration that the state told the district will increase Medicaid recoveries and yield an estimated $1.2 million in additional revenues for district services. - Department “rebasing” (reductions where departments historically underspend) of about $1.2 million. - Removal of a potential stormwater utility fee the district had previously budgeted ($280,000) because the city appears to have discontinued the fee proposal.

Those items together account for the bulk of the roughly $4.1 million the budget team presented Tuesday. But the tentative budget also builds in several ongoing costs the board approved, including additions tied to special education and other operational needs that reduce the net progress against the deficit. Among the specific additions approved by the board were: funding for veteran partnerships with PBS Reno (moved from ESSER for FY26 and offset by a reduction in the superintendent’s operating budget), new or converted positions to support special education and early childhood programs, and additional positions in capital projects and construction management.

On special education and transportation, district staff proposed new occupational-therapy and speech-language pathologist allocations, a $30,000 increase for strategies curriculum driven by increased IEP counts, and a request to add bus drivers to cover rising service needs for special-needs transportation. The budget presentation included a combined estimate of roughly $1.55 million in ongoing general‑fund costs tied to those special-education and transportation proposals. Staff also proposed a two‑year tuition-reimbursement pilot — estimated at up to $400,000 as a one‑time use of fund balance — to pay college costs for teachers seeking targeted certifications and endorsements (for example, GT endorsement, STRAT or SAP credentials) to fill high‑need positions.

Trustees praised the budget team’s analytic work while noting hard choices remain. Trustee Diane Nicolet moved approval; Vice President Adam Mayberry seconded. The motion passed 7-0. Mathers told trustees the presentation is only the next step and staff will return with further options in May and June as legislative outcomes and revenue projections become firmer.

Ending — The board’s vote files the tentative FY2026 budget with the state and gives staff direction to continue deficit-closing work. Trustees and staff said they will monitor pending legislative action and return with updated recommendations to balance the budget before final adoption.