Elko County School District adopts FY 2025–26 budget despite projected revenue shortfalls

The Elko County School District Board of Trustees approved its final budget for fiscal year 2025–26 after a presentation from district finance staff detailing spending pressures and planned cuts.

District finance staff member Cassie Stolke told trustees the district budget reflects enrollment and funding uncertainties and cost increases, saying, “Revenues have been pretty much budgeted flat within the governor's projected budget.” The board voted to adopt the budget as presented; the motion was made, seconded and passed on voice vote.

Why it matters: the adopted budget projects a substantial drawdown of the district's reserves and includes both one-time and recurring increases that will affect services and staffing decisions. Stolke told the board the district began the year with an opening fund balance of about $12.9 million and is projecting an ending general-fund balance near $5.97 million for FY26 under the adopted plan.

Key numbers and changes described to the board: - Per-pupil funding used in the FY26 budget was $11,672 based on a budgeting enrollment of 9,500 students; Stolke noted the district is currently funded for roughly 9,200 students and said auditors could reduce funding after quarterly audits. - Projected increases driving expenditures include an estimated PERS (retirement) increase of about $2.3 million and an approximate $2.5 million set aside for merit and longevity increases in salaries and benefits. - Total additional expenditures for FY26 were estimated by staff at about $9.7 million; Cassie Stolke listed a one-time ERP replacement cost near $170,000 and ongoing annual ERP licensing near $20,000. - The district plans an almost $11 million transfer from the general fund to cover special-education costs this year; staff explained much of that figure reflects reclassification of positions and proper charging of school psychologists and other services to special education rather than a sudden increase in service levels. - Federal COVID-era funding is dropping; Stolke reported an anticipated federal funding decrease of roughly $4.6 million as pandemic-era grants expire. - Insurance costs were shown at about $24 million total; employees and retirees pay roughly $3.7 million of that, with the district subsidizing the remainder and planning adjustments intended to reduce the district transfer by about $1.8 million annually if changes take effect as expected.

Board discussion focused on the mechanics of state funding, the timing of legislative changes and the district's contingency planning. Stolke reminded trustees that the annual budget is due to the state June 8 and that, because Nevada is in a legislative session, the district may file an augmented budget within 30 days if state-mandated changes require adjustments (citing NRS 354.598 as the statute that governs augmented budgets in legislative years). Trustees asked for clarifications about the pupil-centered funding audits and how midyear true-ups might reduce district revenue.

Trustees also discussed capital and facilities funding: staff said the district's capital-improvement ("pay-as-you-go") fund had been drawn down and that roughly $4.6 million in local levy receipts is available for use as a match for potential state grants. Staff said they are preparing applications to the governor's office for matching funds for the district's CIP.

The board approved the final budget by voice vote; trustees were advised the budget could be revisited should significant legislative or revenue changes occur before the start of FY27.

What’s next: staff will monitor the close of the legislative session (trustees were told the session was expected to close June 2), update the board if state funding formulas or supplemental bills change allocations, and present a draft CIP for board consideration in June.