Finance staff told the Board that the district’s fiscal‑year 2025 outlook has stabilized after multi‑year efforts to reduce recurring spending and that Moody’s/S&P changes improved borrowing conditions ahead of a recent bond sale.

Assistant Superintendent and Chief Financial Officer presented revenue and expenditure projections based on actuals through April; staff updated estimated ADA at 44,545 and said total projected revenue is about 97.4% of the adopted budget. The district reported projected non‑payroll savings and an improved fund balance. “We were able to successfully…get our budget turned back in a positive stable direction,” the finance presentation said.

Credit rating and borrowing: Staff briefed the board that a negative outlook from a ratings firm had been changed to stable after budget fixes, supporting a successful bond sale with favorable interest rates. Trustees framed this as an outcome of multi‑year reductions in staffing and central‑office costs.

Legislative context and compensation: The board discussed House Bill 2 proposals to fund teacher pay via a teacher retention allotment that provides $2,500 for teachers with three–four years’ experience and $5,000 for teachers with five or more years. District staff showed an illustrative model: if the district adopted a 3% midpoint raise for other staff, combined with the state teacher retention allotment and other HB2 funding, the estimated district‑funded net cost would be roughly $4.4 million after expected state reimbursement for eligible teacher increases.

Trustee response: Several trustees said 3% would be a baseline. Trustee comments urged more detailed comparisons to peer market rates and called for targeted market adjustments in pay grades that are below 90% of market median. Trustees also supported increasing substitute pay and examining stipends.

Benefits and substitutes: Benefits staff said final TRS/ActiveCare premium decisions were pending and would be available after the TRS board meeting; district staff proposed higher substitute pay and a larger pool of permanent substitutes to increase fill rates and reduce classroom disruptions.

Next steps: Staff planned to bring a compensation resolution to the board for action on June 9 proposing a 3% midpoint increase for other staff and to update budget projections with certified property values in July. Trustees requested further analysis showing market position by pay grade and options for targeted adjustments.