Fairfield Union approves May five-year forecast, outlines $13M in proposed capital transfers and warns of 2029 deficit

The Fairfield Union Local School District Board of Education on May 19 unanimously approved its May 2025 five-year financial forecast, hearing from Treasurer Mrs. Roberts and Superintendent Bellville about proposed transfers to capital funds and risks that could leave the district running an operating deficit by 2029.

The forecast shows the district received about $29,000,000 in revenue so far this fiscal year, compared with $26.6 million the prior year, and has spent roughly $22,000,000 to date. "I still feel confident we're in good financial shape," Treasurer Mrs. Roberts told the board during the forecast presentation, but she said several variables could change the projection significantly.

Mrs. Roberts told the board the district faces two major pressures in the forecast: an expected $4.6 million reduction in revenue across the five-year window if the state does not implement previously anticipated base-cost increases to the school funding formula, and a roughly $3 million increase in purchase-service costs over five years driven largely by special-education placements and expanding preschool services.

The forecast also incorporates the district's first full year participating in the federal Community Eligibility Provision (CEP), which provides universal free breakfast and lunch at the district. Mrs. Roberts said CEP funding rose from about $959,000 in 2024 to roughly $2.2 million in 2025 and that CEP reimbursements are included through 2028 in the forecast.

Capital plan and proposed transfers

As part of the forecast, Roberts outlined a capital-improvement plan that would move funds from the general fund into three capital-related accounts (permanent improvement, maintenance, and a general capital-improvement fund). The treasurer said the district is proposing transfers that could total roughly $13 million across the five-year plan: a proposed $5.8 million transfer in 2025 (including $500,000 supplemental annual contribution to permanent improvements and other items), a $3.3 million transfer in 2026, and smaller transfers in subsequent years.

Roberts said those transfers would fund known needs such as a $2.2 million estimate to repave parking lots, ongoing roof work (high school, middle school, and activity center remain to be addressed), HVAC-related debt retirement, fleet purchases (buses), and IT and facility maintenance projects. She noted that the district had earlier transferred $4 million to pay off HVAC-control debt and continues to invest cash in short- and multi-year instruments to earn interest while preserving liquidity.

"We have about $35,000,000 invested right now," Roberts said, describing a mix of short-term instruments and longer investments. The district is using those earnings to help cushion operations; interest income was about $1.2 million last year and is projected to be similar in 2025.

Risks and timing

Roberts repeatedly cautioned that proposed transfers are a plan, not an immediate action. Board members were told that no transfer would be executed without a subsequent board vote and that the district could delay transfers pending final state action on school funding. She recommended waiting until later this month or the June 23 meeting for any firm transfer decisions so the board can incorporate any late changes from the state legislature.

The treasurer highlighted the forecast’s projected operating shortfalls if current funding levels persist: the district could show a $574,000 deficit in 2028 and roughly $2 million in 2029 under the model she presented. "We cannot get to 2029 and be operating in a deficit," she told the board, and urged that the district continue planning for contingencies and possible state changes to the funding formula.

Board members asked about the timeline for state action; Roberts said the Senate could vote in early June with a conference committee aiming to finish before June 20. Until the state’s final actions are known, she said the district would present transfer proposals only when necessary.

What the board approved and next steps

The board approved the May 2025 five-year forecast, assumptions and notes, by unanimous roll call. Treasurer Roberts said the forecast ties line-for-line to the district’s capital plan; any transfers would return to the board for project-specific approval.

The board is scheduled to reconvene on June 9 and will hold a final meeting of the fiscal year on June 23; Roberts said the district may be prepared to act on some transfers at that later meeting depending on state developments.

Ending

Roberts urged the board and public that while the district’s short-term fiscal position is sound, longer-term uncertainty in state funding and rising special-education costs require continued monitoring and potential strategic adjustments. The board approved the forecast unanimously and will consider specific transfer motions if and when recommended by district staff.