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Finance director: ODE adjustments and encumbrance cleanup reduce district deficit to about $800,000
Summary
Finance director Sherry Yeley reported a May 2024 revenue estimate and other adjustments that increased current-year revenues by about $800,000 and, combined with reduced encumbrances, cut the projected deficit from roughly $2.2 million to about $800,000; the board discussed system issues in Infinite Visions and possible financing options.
The Ashland School District's finance director told the school board on May 8 that new state estimates and a cleanup of encumbrances have improved the district's fiscal picture, reducing the projected deficit from roughly $2.2 million to about $800,000 for the current year.
Sherry Yeley said the district received the Oregon Department of Education May 2024 estimate, which reconciled transportation expense, prior-year property-tax collections and teacher experience rating; that reconciliation increased revenues by roughly $500,000. Another adjustment for high-cost disability reimbursements added about $80,000, and a separate property-tax-related update added about $200,000, yielding an aggregate increase of roughly $800,000 for the year.
Yeley also said she spent April reviewing encumbrances and payroll-related projections and removed roughly $1.9 million in previously recorded encumbrances that were overstated or duplicated in reporting. That work, coupled with the additional revenue, reduced the projected deficit from about $2.2 million to about $800,000, she said.
Board members asked for detail about where savings appeared. Yeley said part of the reduction came from updated payroll encumbrances that properly accounted for furlough days and personnel reductions and from correcting spreadsheet formulas and system reporting errors. She warned that some of the district's troubles stem from limits in Infinite Visions, the district financial system, which requires manual work to get correct reports. Yeley said the district will continue to validate reports and will have additional review steps before finalizing the 2025-26 budget.
Loan options and next steps: Yeley said several banks have contacted the district about a possible loan product that functions like a partial line of credit: the district would draw down only what it needs and pay interest only on the drawn portion. She said the district might present loan terms for board review at a possible special meeting next week.
Board reaction: Trustees welcomed the improved picture; several thanked Yeley and district leadership for the rapid review and cleanup and asked staff to continue conservative projections as the budget is finalized.
Numbers summarized: ODE revenue reconciliation ~+$500,000; high-cost disability reimbursement ~+$80,000; other property-tax adjustment ~+$200,000; encumbrance and payroll corrections reduced projected expenditures by roughly $1.9 million; net projected deficit after adjustments approximately -$800,000 for the current fiscal year.
The board will review follow-up materials and any loan options in a future meeting.
