Washoe trustees begin FY26 budget process; direct reviews of allocations, reserves, aides and student-teacher pay

The Washoe County School District Board of Trustees on Feb. 11 opened its fiscal year 2025-26 budget process with a staff presentation on state, federal and local revenue outlooks and directed the superintendent to prepare several detailed analyses to guide budget decisions.

The briefing by Chief Financial Officer Mark Mathers and Budget Director Jeff Bozzo described a constrained state education fund picture, flat per-pupil growth in the governor's recommended budget and local impacts from declining enrollment and rising retirement (PERS) costs. After that presentation the board voted to request examinations of the district's allocations process, the fiscal impact of reducing the district's targeted ending fund balance, studies on compensating student teachers, and analyses of pay/hours/benefits for classroom aides and English Learner (EL) program assistants.

Why it matters: the district receives most general-fund revenue from the state, so changes in the state's Pupil-Centered Funding Plan, sales-tax projections and the state general-fund transfer strongly shape what the district can afford. Trustees said they want targeted analyses now so the board can make informed choices if the district faces a shortfall or needs to reallocate resources.

Mark Mathers, the district CFO, told trustees that "99% of our general fund revenues come from the state," underscoring the district's dependence on the statewide funding picture. Staff briefed trustees on three revenue pressures: (1) a nearly flat statewide Pupil Centered Funding Plan under the governor's recommendation, (2) a shortfall in sales-tax-driven revenue compared with earlier post-pandemic projections, and (3) a state-level reduction in transfers to the State Education Fund identified in late budget amendments.

Staff said statewide totals in the governor's recommendation showed only modest growth for K-12 in fiscal 2026 (about 2.1% to 2.4% across the biennium as presented to the board) and that the statewide adjusted base per-pupil amount increased by only $2 from FY25 to FY26 in the governor's materials presented to trustees. CFO Mathers told the board that recent budget amendments included a $52 million reduction to the state's transfer to the state education fund that was used as part of the governor's corrections to the overall state proposal.

Trustees asked about revenue drivers. Jeff Bozzo, the budget director, explained that roughly 40% of State Education Fund revenues come from the local school support sales tax; when sales tax underperformed earlier in the current biennium, the state-wide education pot shrank relative to previous expectations. Bozzo summarized the sales-tax dynamics: unexpectedly high goods purchases after the COVID-19 federal stimulus raised prior projections, then more-normal spending and weaker sales-tax receipts left a revenue gap. Trustees noted the effect of gaming and marijuana taxes and staff said those are relatively small pieces of a $5 billion state education fund.

On expense pressures, staff highlighted two large district-level items. - Retirement (PERS): staff described an anticipated PERS employer-rate increase. Using a hypothetical $60,000 salary, staff showed an employee gross-pay adjustment and a net district cost increase; districtwide the projected PERS increase was presented as roughly a $4.6 million net cost to the general fund in the staff example. Trustees pressed on checks and balances for PERS-rate-setting; staff explained PERS rates result from actuarial reports and are enacted by the PERS board, with effects that flow into the state budget. - New school fixed costs: opening the Debbie Smith CTE Academy next year will add roughly $4.5 million in fixed personnel and non-personnel costs (principal and core school staff, custodial/maintenance, athletics, transportation, utilities and school supplies) based on the staff presentation.

Staff also summarized federal and other funds. The district reported approximately $37 million of new U.S. Department of Education funding allocated in FY25 (including Title I and IDEA); about $12.5 million of the federal total was identified as IDEA special-education funding and nearly $13 million as Title I allocations in staff remarks. Nutrition services (U.S. Department of Agriculture) funding supporting Community Eligibility Provision (CEP) and free meals totaled about $29 million, staff said.

Trustees pressed staff for details they can use in policy decisions. Trustee JJ Phoenix moved and Clerk Woodley seconded a motion directing the superintendent to prepare a review of the district's allocations process to be presented at the next budget meeting. The board's motion asked that the review include, but not be limited to, state-mandated and district class-size ratios, the process for allocations before each school year, midyear allocations, allocations to collaborative schools, how special-education students are counted in both special-education and general-education settings, and Count Day calculations. The motion passed 7-0.

Board members then requested several further analyses. Vice President Adam Mayberry moved an analysis of the fiscal impact of reducing the district's targeted unrestricted ending fund balance (the board's stated target is 12% of general-fund expenditures); Trustee Colleen Westlake seconded. After a procedural re-vote to clarify the record, the board approved that analysis by roll-call 6-1 (yes 6, no 1).

President Beth Smith moved and Trustee Colleen Westlake seconded a directed fiscal and administrative analysis of compensating student teachers; trustees said the study should examine feasibility, administrative barriers and fiscal implications as a possible long-term recruitment pipeline. The motion passed 7-0.

Trustee Westlake moved and Trustee Christine Hall seconded a study of compensation, hours and benefits for all classroom aides and assistants in special education, general education and EL programs; trustees said they wanted the analysis to examine whether changes in aides' pay/hours/benefits would reduce turnover and improve classroom supports. The motion passed 7-0.

Trustee Dr. Diane Nicolette also asked for a fiscal-impact study of reducing high-school walk zones (the distance students are expected to cover to qualify for transportation); Trustee JJ Phoenix seconded. The board approved that fiscal-impact analysis 6-1.

In summary, trustees said they did not expect immediate expenditures from these motions but wanted staff analyses, to be scheduled, that would inform budget tradeoffs ahead of final decisions in late spring after the state economic forum updates revenue projections.

Votes at a glance

- Review of allocations process: mover JJ Phoenix; second Clerk Woodley; outcome: approved 7-0. - Analysis on reducing ending fund balance (unrestricted ending fund balance target of 12%): mover Adam Mayberry; second Colleen Westlake; outcome: approved 6-1. - Fiscal and administrative analysis for compensating student teachers: mover Beth Smith; second Colleen Westlake; outcome: approved 7-0. - Analysis of compensation/hours/benefits of all classroom aides and assistants (special ed, general ed, EL): mover Colleen Westlake; second Christine Hall; outcome: approved 7-0. - Fiscal-impact analysis of reducing high-school walk zones (transportation): mover Diane Nicolette; second JJ Phoenix; outcome: approved 6-1. - Final blanket direction to compile and report on budget items discussed: mover Clerk Woodley; second Adam Mayberry; outcome: approved 7-0.

The board and staff scheduled further budget work sessions through June; staff told trustees the May economic-forum revenue update and final legislative action will be critical inputs for the district's final FY26 budget.