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District projects small net revenue gain but flags $383,000 transportation shortfall and potential supplemental budget
Summary
Business/financial report projected a modest positive adjustment to state school fund revenue but staff told the board the First Student contract and transportation invoicing will push transportation costs well above budget and may require a supplemental appropriation.
The Silver Falls School District received an updated financial and enrollment report on Feb. 10 that projected modest positive revenue adjustments for 2024–25 but flagged an overrun in transportation costs that may require a budget amendment.
The presenter said the district’s May reconciliation with the state could yield an approximately $450,000 positive adjustment tied to property‑tax and transportation grant reconciliations. "What I am verbally, projecting ... we will see approximately a 450,000 if not more positive adjustment in our May payment," the finance presenter told the board.
At the same time, staff said transportation expenditures under the district's contract with First Student are expected to end the year about $383,000 over the budgeted amount, producing pressure in the support‑services portion of the general fund. The presenter apologized for not catching the discrepancy earlier and said delayed invoicing and encumbrance timing contributed to the shortfall. "That is essentially 1 month of transportation bills, that 383,000 that I'm expecting we're gonna be over budget," the presenter said.
Board members asked whether rate increases, unionization at the provider, or route reductions were factors; staff said a combination of higher referee/trip costs, increased per‑route rates and timing of invoices contributed. Staff noted the district reduced some routes this year but still faces variable costs for athletics, field trips and special‑education routing.
Food service operations remain tracked in a separate non‑profit food service fund and are not reflected in the general fund report; staff said that fund has been running a deficit and must be made whole per the auditor. "All food service activity must be tracked in a ... non profit food service fund ... that fund is not allowed to carry an excess balance," the presenter said.
Staff told the board they will monitor projections and, if the transportation overrun persists, bring a supplemental budget request to reallocate available excess revenue and contingency to cover the overage. "If that 2,000 support services function continues to look like it's going to be an excess ... we will be needing to bring you a supplemental budget request," the presenter said.
The board did not vote on budget changes at the meeting. Trustees asked for additional detail on driver invoicing, the effect of reduced routes on savings, and the extent to which extracurricular travel is being paid from school discretionary funds or donations.
