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School board files second interim budget with county, establishes committed fund balance under GASB 54
Summary
Trustees approved the district's second interim budget report, authorized filing with the Kern County Superintendent of Schools, and adopted a resolution creating a committed fund balance under GASB 54. Presenters cited rising enrollment, a growing TK population and a shrinking operating deficit, while cautioning about future cost pressures.
The school board approved the district's second interim financial report and voted to file the document with the Kern County Superintendent of Schools, and separately adopted Resolution 24-11 establishing a committed fund balance under GASB 54.
The recommendation to approve the second interim report and file it with the county was presented by Dan (staff member). Dan reported current average daily attendance of about 95.48 percent, enrollment of roughly 4,197 students districtwide and a net increase of six students from the prior month. He told the board the district is up about 129 students from the last day of school the previous year and that kindergarten-appropriate TK enrollment currently stands at 210 students, with staff projecting at least 250 TK students next year as full TK implementation begins.
Dan said the district's projected multiyear deficit continues to shrink: the interim shows the deficit reduced by more than $1,200,000 compared with earlier projections. He reported a strong cash balance that does not drop below about $30 million — roughly six months of operating expenditures — and an ending reserve percentage of 31.99 percent in the third year of the budget projection. Dan also said the district expects about $1.2 million in one-time, unrestricted funds next year that were not included in the interim because the money is not yet received.
The board discussed cost pressures that could affect future budgets, including health benefit costs (projected to rise between 6 and 9 percent), construction-material price volatility, and increases in classified personnel costs tied in part to restoring special-education programs. Dan noted the district budgets conservatively for about 30 students of growth annually but said recent trends have exceeded that assumption.
Trustees moved, seconded and approved the second interim report and the separate resolution committing a portion of the general fund in accordance with GASB Statement No. 54. The motions passed by voice vote; no roll-call tallies were recorded in the meeting transcript.
Why it matters: Average daily attendance and enrollment drive state funding for schools; the board and staff said rising TK and overall enrollment are improving revenue prospects, but health-care and personnel cost increases remain key risks as the district prepares next year's budget.
Board actions
- Approved and authorized filing of the district's second interim report with the Kern County Superintendent of Schools (motion passed by voice vote). - Adopted Resolution 24-11, Committed Fund Balance (GASB 54) (motion passed by voice vote).
