Gravette School Board approves 2024-25 financial report, adopts 2025-26 budget and authorizes temporary $350,000 transfer

The Gravette School District Board of Education on a unanimous voice vote approved the district's annual financial report for fiscal year 2024-25, adopted the operating budget for 2025-26 and authorized the business manager to temporarily transfer up to $350,000 from the building fund to general operating cash to cover short-term cashflow needs until property tax receipts arrive.

The action followed a detailed finance presentation by Dennis, the district's finance lead, who told the board that property-tax and state foundation timing left the district short on operating cash in early October even though year-to-date revenues and cash on hand are larger than the same point last year. Dennis said the district received roughly $400,000 in property tax receipts this month, reported state foundation and salary support payments, and had paid a sizable property-insurance bill that reduced operating liquidity.

Board members stressed that the transfer is temporary and must be repaid when the mid-October tax receipts arrive. The motion authorizes the business manager to move up to $350,000 from building-fund cash to the operating account and to return those funds once property-tax receipts are posted.

Nut graf: The board framed the transfer and budget adoption as pragmatic steps to manage timing-related cashflow pressures rather than changes to policy. At the same meeting board members and staff continued a broader discussion of declining enrollment, recurring cost increases (including insurance and health-match increases), federal funding changes and the need to prioritize spending for student achievement and personnel retention.

Key details and supporting facts

- The board voted to approve the annual financial report for 2024-25 and to adopt the 2025-26 budget as presented. - The board authorized a temporary transfer of up to $350,000 from the building fund to operating cash until mid-October property-tax receipts arrive; the transfer is intended to be repaid when receipts post. - Finance materials presented year-to-date revenues, highlighted that net revenues equaled about 7% of budget while the district is 17% through the fiscal year, and showed nearly $8.8 million cash at the end of August before the insurance payment and other transactions reduced balances. - District leaders called out multiple recurring cost increases (property insurance, health-insurance match) that together represent over $1.3 million of new or unexpected recurring cost pressure.

Votes at a glance (formal actions recorded in the meeting)

- Motion: Approve annual financial report for 2024-25 and adopt 2025-26 budget. Outcome: Approved (unanimous voice vote). Tally: unanimous (board present: 7 members). Referenced in actions[] below.

- Motion: Authorize business manager to temporarily transfer up to $350,000 from building fund cash to general operating cash until receipt of property taxes. Outcome: Approved (unanimous voice vote). Tally: unanimous (7 yes).

- Motion: Approve increase in cafeteria substitute pay to $13.16 per hour for the 2025-26 school year. Outcome: Approved (unanimous voice vote).

- Motion: Approve submission of a greenhouse grant for a plant-systems career pathway at Gravette High School (to pursue grant funding; additional board action required if grant awarded and local funds needed). Outcome: Approved (unanimous voice vote).

- Motions related to personnel (employment, resignations, termination) were presented and approved during or immediately after executive session; see actions[] for details.

Board and staff comments

Dennis, the district finance lead, described cashflow timing risks tied to property-tax timing and a number of recurring cost pressures. He told the board the district had received property-tax receipts and state payments but still faced a timing gap before the next large tax deposit, and that an insurance premium payment and other costs had reduced liquid balances.

A board member asked whether the timing of state payments or the recent insurance increases could be addressed at the state level; Dennis said he had discussed the matter with the district's state representative and planned to seek clearer timing and accounting from state agencies.

Procedural notes

The board held an executive session for personnel and legal matters before returning to open session to approve personnel-related motions. All actions recorded here were approved by voice vote with no roll-call tallies recorded in the public transcript; the meeting record shows unanimous "aye" responses for the items that passed.

Ending: The board adjourned after approving the motions; staff said the temporary transfer would be reversed after the October property-tax receipts.