Churchill County trustees warned of tight budget as federal funds phase down

Churchill County School District trustees heard a detailed budget update on March 26 that showed the district—acing a tighter fiscal year 2025-26 than it had a year earlier, with projected ending reserves near zero unless further savings or reductions are identified.

The update matters because trustees must adopt a final budget this spring and, under state guidance, maintain a minimum ending fund balance. Comptroller Christy Field said the district—started the 2025-26 base budget assuming the Nevada Department of Education—guidance tied to the governor—s recommended budget; that scenario includes modest per-pupil increases but a significant drop in at-risk funding.

Field told the board that the district—s beginning fund balance for FY26, after adjustments to the FY25 estimated results, is about $5,271,000 and that the current base-budget projection would produce an ending fund balance of about $24,200. "Our ending fund balance should be no less than 4% of prior year expenditures," she said, adding that 4% would be roughly $1.5 million. Field also identified line items removed or reduced in the base budget (vacant bus positions, certain IT purchases, contingency) to avoid an immediate shortfall.

Superintendent Daryl Parsons framed the broader fiscal context: federal grant awards are changing, PERS employer rates and insurance premiums are rising, and state revenue proposals show only small per-pupil increases. Parsons said the district is preparing for a likely smaller federal aid envelope and noted, "we don't know a lot yet," about longer-term federal changes, but WestEd and state contacts are warning that block-grant reconfigurations could reduce restricted funding and increase flexibility but with less total money.

Details in the staff presentation include: - A projected PERS employer increase and an assumed 12% rise in insurance costs used for planning (Field estimated roughly $576,000 additional annual insurance expense based on current monthly premiums). - A governor's recommended Pupil-Centered Funding Plan (PCFP) increase of about $39 per pupil (roughly $120,000 district-wide on current certified enrollment). - A reduction in at-risk funding of about $326,000 in the governor—s recommended figures, which more than offsets the small PCFP gain. - Several one-time or grant-funded items shifted off general fund (e.g., one teaching position moved to grant funding, fewer planned IT purchases, a reduced contingency).

Field cautioned that several items remain to be finalized: indirect-cost revenue tied to grants (many ESSER grants are ending), special education transfers, and the effect of any state policy changes still being negotiated. She said current general fund wages and benefits make up about 83.6% of the general fund budget and that without further adjustments the second-year outlook is likely to be constrained.

Trustees pressed staff for concrete, near-term options: trimming open positions this year to boost the FY25 ending balance, tightening discretionary spending immediately, and refining class-size and staffing projections before the April budget meeting. Parsons said administrators are reviewing elementary and secondary master schedules and vacancies to identify efficiency gains while trying to avoid harming instructional programs.

What happens next: staff will return with more detailed modeling and proposed adjustments at the April 9 budget meeting, including updated vacancy savings, possible reductions of budgeted expenditures for FY26, and clarification of any changes from the state or grant offices. The board repeatedly emphasized that any budget reorganization will be presented to trustees for approval.