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Board approves personnel slate and reorders $12 million in FY25 budgets; moves $3 million from fund balance to cover shortfalls
Summary
At the May 13 meeting the Board approved three actions: a personnel slate, an intercategory reallocation of roughly $12 million to cover shortfalls across special education, operations, and student services, and a $3 million draw from fund balance to add to the FY2025 budget to cover projected overages.
The Board of Education voted unanimously at its May 13 meeting to approve three budget‑related actions the district said were needed to close FY2025 accounting gaps and fund immediate operational needs.
What the board approved - Personnel slate: The board approved the regular personnel report as presented (moved by Brenda Thomas; seconded by Tamisha Thomas). The approval covers additions, transfers and separations listed in the formal personnel packet. - Intercategory budget transfer (approx. $12,000,000): The board approved an intercategory reallocation to move funds among general ledger categories to cover shortfalls in several program areas. The reallocation moved funds out of instruction and contracted services into special education (to cover contracted services and non‑public placements), operations of plant (salaries/overtime), and other categories. The motion was moved by Vice Chair Nicole Kramer and seconded by Board Member Tamisha Thomas; the vote was unanimous. - FY2025 budget increase / fund balance transfer ($3,000,000): The board approved increasing the FY2025 budget by moving $3 million from fund balance into the operating budget. CFO Karen Acton and budget manager Sherry Fisher Davis told the board the funds cover expected overruns primarily in mid‑level administration salaries/overtime, special education contracted services/non‑public placements, and operations of plant (salaries, overtime, and other costs). The motion was moved by Brenda Thomas and seconded by Vice Chair Kramer; the vote was unanimous.
Why the increases were requested District staff said three principal drivers pushed projected FY2025 expenditures above budget: - Special education contracted services and non‑public placements: Contracted provider rates increased and several non‑public placements raised tuition; staff noted contractor hourly rates for related services rose substantially and that the district underestimated costs for some non‑public placements. - Salaries and overtime in operations of plant: Custodial and safety staffing overtime and related payroll pressures pushed operation costs up. - Health insurance and other fixed charges: The district reported an increase in fixed‑charge expenses and food‑service delinquent account adjustments.
Key numbers (as presented) - $3,000,000 moved from fund balance to increase the FY2025 budget. - $12,000,000 net intercategory transfer reallocating funds across categories to cover shortfalls. - Earlier in the year the district said it had already moved about $5,000,000 out of fund balance to cover prior FY needs; staff said the district’s fund balance was approximately $38 million before this motion and would decline by additional millions if transfers continue.
Board discussion and next steps Board members pressed staff on drivers of the cost increases and on steps the district will take to limit recurring uses of fund balance. CFO Karen Acton said the district will tighten vendor approvals and require more stringent procurement oversight for contracted services next year. Staff also said they will evaluate whether in‑district options can reduce non‑public placement growth and develop tighter controls on overtime and contracted related‑service purchases.
Why this matters District leaders told the board these steps were needed to avoid FY25 deficits and to ensure legally required services (for example, special‑education placements and related services) are funded; board members emphasized the need to reduce reliance on fund balance for recurring costs.
Ending The board approved all three motions unanimously at the May 13 meeting. District staff will return with further budget details and monitoring steps as the fiscal year closes.
