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District finance director outlines FY26 tentative budget, warns of shrinking fund balance
Summary
District financial staff presented a tentative FY26 budget showing projected declines in ending fund balance and multiple cost pressures including PERS increases, reduced federal COVID funding, and enrollment declines.
District financial staff presented the Elko County School District’s tentative FY26 budget as a required nonaction item under state law, outlining revenue and expenditure projections and explaining drivers of a projected deficit.
Presenting staff said audited ending fund balance for FY24 was about $12.2 million and that, under current projections, the district’s ending balance could fall to roughly $5.9 million for FY26 if contingency is used; the presenter noted contingency would keep the balance near $6.9 million if untouched. Key pressures included lower state revenues compared with prior years, a projected 3% statewide PERS increase, negotiated salary increases (2.5 percent), and the end of supplemental federal COVID funding.
To offset the revenue decline the presenter said the district plans site-level cuts (about 35 percent of consumables) and will pursue attrition to limit personnel reductions. The presentation also flagged capital needs: staff estimated annual pay-as-you-go maintenance needs between $15 million and $22 million to fully maintain aging facilities, while next year’s proposed pay-as-you-go budget was about $6 million.
The presenter said federal funding allocations remain uncertain and the district budgeted conservatively with an assumed 20% reduction for federal programs pending final allocations. Staff also noted the district will continue to review insurance costs; the insurance fund has a projected multi‑million dollar shortfall that requires a general‑fund transfer (the presentation cited a planned transfer of about $8.4 million to cover insurance costs next year).
Board members asked clarifying questions about revenue sources, the influence of state allocations and people-centered funding, and whether potential new charter schools or enrollment changes were reflected in the state’s projections. The presenter said state allocation rules drive many final numbers and the district must use the state-determined figures when preparing the budget.
The presentation was received as a nonaction item; trustees will consider the final budget at a subsequent meeting.
