Osborne board approves first FY26 budget revision; administration warns enrollment decline could cost $800K–$900K
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Summary
The Osborne School District Governing Board on Tuesday approved a technical first revision to the FY26 budget to reflect a one‑time state aid supplement, while administrators warned an enrollment decline of about 85–100 students could reduce district revenue by roughly $800,000–$900,000.
The Osborne School District Governing Board approved a fiscal‑year 2025–26 budget revision on Tuesday that incorporates a state‑approved, one‑time aid supplement. Administration told trustees the revision is largely a technical update to align district worksheets with the final state budget, but warned that a separate enrollment decline will require additional adjustments before year‑end.
Director (Colleen) McCabe and Superintendent Dr. Robert Rivera briefed the board. McCabe said the revision being considered that night does not yet reflect an enrollment fall the district is experiencing; the packet went to trustees before the district had completed its first full week of attendance counts. The immediate revision brings a one‑time state aid supplement into the adopted budget (the legislature’s 75‑million allocation that districts received), she said; two additional line items from the state budget will be added in a later revision, likely in December.
McCabe and Rivera asked the board to be prepared for further changes. McCabe estimated the district’s current decline — roughly 85 to 100 students based on preliminary counts — could equate to a maintenance‑and‑operations revenue shortfall of about $800,000 to $900,000. She said the district will not pursue an immediate reduction‑in‑force (RIF) and will instead use carryforward reserves to cover contracts already in place while it identifies other savings. McCabe said the district’s carryforward from the prior year was about $1.8 million and that roughly $170,000 in District Additional Assistance (DAA) funding could be transferred to operational budgets if the board chose to do so, though she cautioned that transfers and midyear compensation adjustments have legal and contractual limits and that a final picture requires reconciliation of weighted student counts.
Trustees debated options — freezing hiring, targeted position changes and other savings — and asked for more detailed follow‑up at upcoming budget‑committee meetings. The board approved the requested revision by voice vote; administration said it will bring a more detailed revision in December after AzEDS and ADE data reconciliation and after the district examines 40‑ and 100‑day counts and weighted student totals.