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Board authorizes $5.9 million transfer to cover school nutrition deficit
Summary
District financial staff reported a $5.9 million projected deficit in the school nutrition fund and the board approved an operating transfer of $5.9 million from the general fund to prevent a deficit for fiscal year 2025.
The Savannah Chatham County Board of Education approved an operating transfer of $5,900,000 from the general fund to the School Nutrition Fund (Fund 600) on Aug. 13 after district financial staff reported the fund was showing a net loss for the fiscal year that ended June 30.
Finance staff told the board that Fund 600 was currently showing a net loss of $5.9 million and that additional year‑end entries could post during closing; the transfer would prevent a fund balance deficit. Staff said the shortfall reflected lower-than-expected revenues relative to the budgeted amounts and that the district will revisit revenue estimates tied to the Community Eligibility Provision and federal reimbursements.
The board moved and approved an operating transfer in the amount of $5,900,000 from the general fund to the school nutrition fund. The transfer is funded from a set of general fund accounts described in board materials as "various accounts," including salaries, supplies, software and equipment; staff said they would identify specific account transfers in budget amendment documentation.
Board members asked for additional analysis and future reporting on the fiscal impact of the district’s transition to the Community Eligibility Program (CEP), the influence of projected federal reimbursements, and whether the CEP affected revenue assumptions. One board member said the district should evaluate whether the CEP transition produced a material fiscal difference and requested a baseline and further financial reporting.
Why it matters: School nutrition operations affect meal service to students and the district must maintain solvency in that fund to avoid interruptions to meal programs. The board-approved transfer preserves the fund’s solvency for the current fiscal year while staff examine revenue assumptions.
What’s next: Finance staff said they will perform further analysis of school nutrition revenues, coordinate a baseline assessment under CEP, and recommend any necessary budget adjustments going forward. The board approved the transfer and corresponding budget amendment.
