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District financial report: $3.5M state payment boosts cash flow; legislature’s testing-funding decisions leave costs uncertain
Summary
District staff reported a $3.5 million state payment improved the district's cash position; board discussed the state legislature's pending budget actions that eliminated funding for the statewide ACT and pulled NSCAS funding, leaving potential costs for local districts uncertain.
At the May 12 Board of Education meeting, district finance staff reported financial gains following a $3.5 million payment from the state and described stronger cash-flow and asset positions compared with the prior year. Board member Skip Baltic provided an update on the state legislature that followed, warning of continued uncertainty over funding for statewide testing that could shift costs to local districts.
District staff said the state payment has improved the district’s fund balance and cash flow. The presenter reported the district’s assets had increased to about $2,300,000 at the end of the reporting period, compared with being in the red by roughly $500,000 the previous year. The presentation also noted general-fund expenditures (excluding payroll) had dropped by about $200,000 during the month and that the district plans a May transfer into the depreciation fund for long-term replacement items such as textbooks, buses or athletic surfaces. The district’s fiscal year runs Sept. 1–Aug. 31.
Following the finance presentation, Skip Baltic briefed the board on the Nebraska Legislature’s work. Baltic said the legislature was on day 77 of 90 and would be focused on passing a two-year budget by day 80. He told the board lawmakers had presented an unbalanced budget and were pulling money from various state funds. Baltic said funding for the statewide ACT was removed and that NSCAS funding had also been pulled; he said the Nebraska Department of Education (NDE) indicated it would seek alternative funding sources and that there may be cost-sharing arrangements, but details were unknown.
Board members asked for clarification on local costs. Baltic and other staff said the district has to estimate what it would pay if the state does not cover the NSCAS work; the district previously contracted for assessment services and would need to review those contracts and costs. Baltic said the legislative timetable and possible line-item vetoes by the governor could affect when other bills come to the floor and whether additional education bills will move forward this session.
No formal action was taken on these matters at the meeting. Staff noted the district will continue monitoring state budget developments and assess possible fiscal impacts, including whether the NDE will provide partial funding for statewide assessments or if costs will shift to districts.
The financial report and legislative update were presented on the record at the May 12 board meeting; board members indicated they will continue to monitor impacts to the district budget.
