Liberty Elementary board approves administration's FY25 strategy to avoid zero carryforward
Loading...
Summary
The Liberty Elementary District board approved a staff plan to close the FY25 budget gap using a $700,000 transfer from district additional assistance, roughly $900,000—1,000,000 in journal adjustments, a hiring freeze, and reduced purchase order encumbrances. The motion passed on a unanimous voice vote.
The Liberty Elementary District Governing Board on a voice vote approved an administration plan on April 30 to close a projected fiscal-year 2025 budget shortfall by transferring capital funds into the maintenance and operations (M&O) budget, moving selected expenses into other eligible funds, cutting purchase order encumbrances and imposing a hiring freeze.
The plan approved by the board centers on four actions staff described as the quickest path to end FY25 with a positive carryforward: (1) reduce and close open purchase orders, (2) a hiring freeze with exceptions routed to cabinet or the superintendent, (3) accounting journal entries that move roughly $940,000—1,000,000 of expenses out of M&O into other eligible funds, and (4) a budget-limit transfer of about $700,000 from District Additional Assistance (DAA, a capital funding category) into the M&O budget.
Ken Hicks, presenting the proposal for the administration, summarized the approach and figures and said, "we're recommending at least a $700,000, DAA transfer" and that staff expected journal entries to move "between $940 and a million dollars" of expenses out of M&O. Hicks described closing purchase orders and a hiring freeze as reversible, short-term steps that would preserve day-to-day operations while staff complete the accounting adjustments.
Superintendent Dr. Monroe framed the request as a practical set of steps to preserve a modest carryforward while the district develops deeper cuts for FY26. Dr. Monroe also told the board he would expect cabinet to weigh exceptions to the hiring freeze "very carefully" and that administrators would bring any needed hires back to the board for approval.
Board members pressed for clarity on the carryforward that would remain if the plan is implemented. Hicks said the administration's midpoint estimate is that, after the transfers and adjustments, the district could end FY25 with roughly $400,000—00,000 in carryforward, but that the official carryforward will not be known until the Annual Financial Report (AFR) and ADM (average daily membership) adjustments are final. He cautioned the numbers could shift and that the administration was using rounded estimates to account for changes.
Votes at a glance
Motion: "I make a motion to approve the proposed strategy to complete the 24 25 fiscal year budget as proposed." (mover: Board member Kenyon; second: Board member Schmidt) Vote: Aye -- Kenyon; Aye -- Mitch Schmidt; Aye -- Cerencioni; Aye -- Vice President Zimmerman. Tally: 4 yes, 0 no. Outcome: approved.
What the approval does and does not do
The board's approval authorized the administration to proceed with the four-part plan described above; it does not permanently reclassify funds or approve specific layoffs. Hicks and Dr. Monroe emphasized that many steps (closing or reducing POs, journal entries, transfers) can be reversed or adjusted and that the board will be updated monthly on progress.
Next steps and timing
Administration said it will implement PO reductions and the hiring freeze immediately, complete the journal-entry work and fund transfers prior to year end, and return to the board with more detailed monthly reports. The AFR and final ADM adjustments will determine the official carryforward figure and may alter final results.
