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Board hears budget pressures, audit delays and plan to 'be lean' next year
Summary
Superintendent and finance staff told the Ontario School District board that rising costs, potential insurance increases and an unresolved multiyear audit mean the district will operate with reduced flexibility next year and may use reserves to manage the first year of a new funding biennium.
Superintendent and finance staff updated the Ontario School District 8C board on budget pressures and a delayed audit that the district says has dragged on for three years.
District finance staff reported increases in several cost drivers, including anticipated higher casualty insurance (PACE) and shifts in retirement (PERS) projections. The superintendent told the board the district expects to be "lean" in the coming year: "We're going to be lean with that," the superintendent said, explaining the district will be careful about refilling positions and will use reserves to smooth budget timing between biennial state funding cycles.
Board members and staff noted the district expects the first year of a two-year state funding biennium to cover a smaller portion of increases, which may require drawing on reserves in year one and balancing in year two. The superintendent explained the state funds are allocated unevenly across the biennium and that some negotiated compensation increases will produce a near-term deficit that the district plans to cover with reserves.
Board members expressed concern about an audit that has not been completed for three years. The superintendent said the auditor has repeatedly missed estimated completion dates and that the district has pressed for a firm end date. "We want to know an end date... This has gone on 3 years," the superintendent said. The board indicated it will change auditors for next year and said legal remedies were being discussed if the current auditor does not provide a timely conclusion.
The finance staff also outlined scheduling for the district’s budget hearing and other calendar items. The board approved moving the May board meeting to June 2 and later set the budget hearing for May 29 to meet public-notice publishing windows.
Superintendent and staff said federal funding allocations remain uncertain at the national level; the district is watching possible federal changes and planning contingencies. The board was told that some federal allocations (for example, Title I) may not be confirmed until July 1 due to national-level uncertainty.
Board members were told the district plans to avoid layoffs but may not refill some positions and will closely monitor enrollment and staffing to keep the budget balanced. The superintendent said the district has a "healthy ending fund balance" but will be operating with less flexibility.
