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District finance director outlines enrollment drop, FTE mechanics and a negative fund balance as budget season continues
Summary
Shelton School District staff presented monthly budget status: enrollment-related FTE dropped by roughly 18–20 from January to February, partial re-enrollment recovered about half, and staff said the general fund shows a fund-balance deficit described as "1.4 in the negative" that will improve when recent reductions are recognized in March.
District staff reviewed monthly financial data and a board packet slide showing enrollment trends, full-time-equivalent (FTE) calculations and the district's fund balances as the board moves through budget season.
Mr. Sherman, who presented the report, explained the difference between head count and FTE and said the district “lost around 18 to around 20 kids from January to February” and has “proactively pulled about half those kids back into our system” through programs and options the district offers. He said FTE, not head count, is the metric used for state funding and that various programs (for example, CTE and running start) affect FTE calculations.
On fund balance, Sherman said the district is “at a little over negative million this month” and later described the position as “generated at at 1.4 in the negative.” He said the initial reduction in force enacted in January is not yet reflected in the accounting and that the associated savings will show up in March. Sherman said the district is working with OSPI and the educational service district (ESD) and pursuing vendor negotiations and other cost-saving measures to reach a positive fund balance by the end of the fiscal year.
Sherman also summarized different fund types for the board: the debt service fund (bond tax revenues used only to service debt), the transportation vehicle fund (depreciation-based dollars restricted to buses), capital projects (facility construction and major replacements) and ASB funds (student body activity funds).
The presenter said the district is undergoing routine audits — a state financial audit, a federal audit and an accountability audit — and that staff participated in the state auditor's initial interviews.
No formal board action on the budget status report was recorded at the meeting; Sherman invited members of the public to review the clearer board-packet PDF online and to contact him with questions about the data.
