Fulton finance report: district at 90% of expected revenue for year; benefits overspending flagged

Fulton City School District finance staff presented May financials Wednesday showing the district had realized roughly 90% of expected revenue and reached about 85% of planned expenditures for the fiscal year, and highlighted a concerning trend of benefits expenses running $3.1 million to $3.3 million over budget.

"As of May, we had realized 90% of our revenue that we expect, and we had reached the 85% mark in terms of expenditures," Miss Hooper, the district finance staff member who presented the report, told the board. She said local revenue was slightly above projection while state aid stood near 85% (with a June payment noted) and federal Medicaid reimbursements were at about 84%.

Why it matters

The administration told trustees the benefits line — primarily health insurance and related employee benefits — is the principal area of concern and is driving the need to consider reserve draws and one‑time budget adjustments. Miss Hooper said the benefits overspend has been a steady trend and that the district will continue to track final audit numbers over the summer.

Key financial figures and explanations

- Revenue/expenditure snapshot: As of May, revenue realized ~90%; expenditures ~85% of the $88,400,000 budget. Local revenue exceeded expectations, state aid at ~85% with June payments still arriving and federal Medicaid at ~84%.

- Benefits and debt: Miss Hooper reported a benefits overspending trend of approximately $3.1M–$3.3M and said the district received and made several large debt payments in June that affect year‑end balances. She flagged a $906,800 variance line cited in benefits reporting during the presentation, and said she expects the final audit work this summer will show the final totals.

- Available balance and reserves: On May 31 the projection showed roughly $2.3 million available after encumbrances, though the presenter warned that June debt payments altered that figure and that some reserve transfers would be presented as resolutions later in the meeting.

Board questions and follow‑up actions

Trustees asked whether projected withdrawals and specific reserve uses were the same as the amounts discussed while building the 2025‑26 budget. Miss Hooper said the reserves proposed later in the meeting were for the current year's overage and are different from the reserve draws planned for next year's budget (retirement reserves, DRF and TRF) and that the figures shown were conservative high estimates.

On health insurance costs, Miss Hooper said the administration is looking for multiple cost savings options that preserve current coverage levels. She described steps already taken — raising some deductibles and changing prescription fulfillment logistics — that have produced hundreds of thousands of dollars in projected savings. She said the district is exploring whether joining a larger purchasing pool would preserve benefits while reducing premiums, and that any such change would be negotiated with employee groups.

Formal Board actions recorded in the meeting

During the meeting the board voted, with results recorded in the transcript, to accept the May financials and approve several budget and contract items. Recorded motions and votes included a motion to accept the financial report (passes 6‑0‑0), approval of a transportation contract (passes 6‑0‑0), approval to increase the 2024‑25 budget and transfers related to reserves, and several routine contract and donation acceptances (each recorded as passing 6‑0‑0 in the transcript).

Ending

Finance staff said they will continue to refine projections through the summer audit and will return with any required budget resolutions; trustees asked that administrators notify the board of material changes and to provide updates on negotiations or proposals that would affect health coverage or reserve usage.