Moscow School District adopts $25–26 budget, builds contingency and boosts facility funds under new state rules

Moscow School District trustees on June 24 adopted the district'wide fiscal 2025-26 budget after a public hearing required by Idaho law.

The approved budget packages projected revenues of roughly $35.6 million (combining beginning fund balances and anticipated receipts) against expenditures just over $31 million, with a 2% contingency reserve per district policy and an unappropriated balance of just over $4 million.

The budget presentation, delivered at the hearing, explained that local property taxes remain about 41% of general-fund revenue and that state support includes salary apportionment and several statutory and special distributions under Title 33, Chapter 10, Idaho Code. The district included an Avista judgment payment of about $90,000 in the revenue forecast after the company prevailed in litigation over property valuation.

Board members and staff described how expenditures incorporate state-mandated salary minimums and step increases, projections for healthcare and inflation, optional added days for some special-education teachers, and required transfers to other funds. The district plans to transfer about $1.4 million from the general fund to other funds in 2025-26, including required Medicaid match, bus depreciation and food-service support and larger transfers to the plant facilities and land-purchase accounts for capital projects.

The board'appointed contingency reserve equals 2% of estimated revenue per board policy 31-65, leaving the noted unappropriated amount. Administrators said the beginning fund balance for 2024-25 was about $6.8 million, boosted by a one-time gap payment of roughly $650,000 received in May, and the projected 2025-26 beginning balance is about $5.9 million.

Trustees discussed recent legislative changes affecting facilities funding. House Bill 292 now routes bond tax dollars through the state department of education; districts receive bond payments from the state and then any excess flows into an account (fund 435) for facility maintenance and upgrades. The district also has created fund 436 to receive House Bill 521 modernization dollars; administrators said the HB521 money is restricted to capital projects, improvements and renovations. Officials said the district expects the new mechanism to produce an ongoing stream that could approximate $800,000 annually under one scenario, but they cautioned projections vary and final amounts may change in August.

Administrators flagged special funds and program-level concerns. The child nutrition fund (Fund 290) shows lower carryover because of high food inflation, declining participation and replacement of outdated equipment; district staff said they will monitor that fund month-to-month and that, by law, the general fund can transfer money to make the program whole if necessary. Other federal and state grant funds (Title I, IDEA-B, ESSER/ARP lines) were noted as variable and subject to final allocations in October.

After deliberation, the board adopted the 2025-26 budget by a 5-0 vote.

Ending: Finance staff said they will continue to refine the budget as final state allocations arrive and will report updated figures at future meetings and during the annual audit cycle.