Pasco School Board directs staff to seek budget extension, reduce mandated reserve to 2.5% to close $6.9M shortfall

The Pasco School Board on Tuesday gave district staff informal direction to begin paperwork to reduce the board-mandated fund balance requirement from 5% to 2.5% and to pursue a budget extension to close an estimated $6,900,000 shortfall for the 2024–25 fiscal year.

District staff presented the proposal during the board’s budget closeout update. Dr. Castilleja, the district staff member leading the budget presentation, said the district projects a $6.9 million deficit and that the board’s $24.2 million budgeted fund balance currently includes a $16.5 million board-mandated 5% reserve and $7.8 million in designated assignments. “The staff is requesting [the] board mandated fund balance requirement from 5% to 2.5%, and get us working on initiating the budget extension process,” Dr. Castilleja said.

The nut graph: The reduction is temporary, district staff said, and would be coupled with a…