CFO: federal grants restored for 2024-25, but 2026-27 funding remains uncertain; district shows preliminary deficit

CFO O'Brien Wallace told the board on Aug. 12 that the district—s revenues for the just-completed fiscal year were largely as budgeted, but that the preliminary year-end position showed a deficit of about $260,000 and that some federal program funding may not continue beyond 2025-26. Wallace said most revenues are received and the district has nearly all budgeted revenues; property taxes and a few grants still may trickle in. On expenditures she said salary and purchase-service variances largely offset each other, and that the district—s fund-balance drawdown was expected in year one of a planned spend-down. Wallace reported good news on federal programs: previously uncertain funding for Title I and Title IV programs and a 21st Century grant was restored for the current funding cycle in a recent federal package. She cautioned, however, that the 2026-27 federal outlook was uncertain and that those programs likely would not be funded in the next federal budget unless Congress acted. On state grants, Wallace said the district won a competitive digital content curriculum grant for roughly $38,000; the grant was allocated on a first-come, first-served basis and she said the district submitted early and received the award. Wallace said the state could impose a 2% to 6% budget holdback later in the year and that staff would continue to watch the state and federal outlooks as they finalize year-end accounting and required transfers. The financial report was informational; trustees did not take action on the report itself at the meeting.