Treasurer warns May forecast will need scenarios amid pending state policy changes

Mount Vernon City Treasurer Judy told the board the district’s May financial forecast must account for several pending state-level proposals that could change revenue and reserve expectations.

Judy said the March closing shows revenues and expenditures close to projections, with property-tax receipts largely in and expenditures running slightly above expectations because of salary and supply timing. But she told the board that ongoing legislative proposals — including steps under discussion to adjust how excess cash is treated at the state level — make forecasting uncertain.

Judy described a new Auditor of State tool, financial health indicators for schools, that uses 17 measures to flag districts as red, yellow or green based on past data. She said the indicators can warn districts headed toward deficit spending but noted the tool was designed before the state's recent conversations about redirecting some district reserves.

Board members asked Judy to prepare multiple forecast scenarios and recommended a special session in the first half of May so the board can review facility funding options alongside the forecast. One board member noted the district’s current unrestricted balance was near 34% of an available benchmark and that a proposed state change from 25% to 30% could affect future planning.

Judy said the district will model alternative assumptions for the May forecast and present options to the board at the requested work session. The treasurer and board agreed transparency with the public about capital plans will be important if the district pursues a funding measure.