District finance staff presented a year-end fiscal review and a legislative update on the state two‑year budget (House Bill 96), including potential effects on district revenue and several vetoes by the governor.

Staff said the district closed its fiscal year on June 30. Year-to-date revenue collections were slightly below the May forecast, while year-to-date expenditures exceeded the forecast primarily because of timing and larger transfers out of the general fund into capital improvement funds, including transfers to fund buses and FY2029 capital work. The presentation explained that timing of receipts and when purchases are physically received (for example, buses arriving at year-end) affects cash-based accounting and can make expenditures appear higher in a closing year even when encumbrances were set earlier.

Staff noted that with the enacted state budget the district’s five-year forecast was improved relative to earlier projections; however, several governor vetoes affect provisions related to property-tax calculations and levy treatment. The legislature had scheduled consideration of overriding some vetoes; staff said the board would be notified of changes and referenced a July 21 legislative session called by House leadership to consider overrides.

On federal funding, finance staff said the district had not received allocations for some federal titles (Title II-A and Academic Enrichment Title IV allocations were being held at the federal level) and estimated the district was awaiting about $210,000 across a few program lines; staff explained that federal reimbursements are typically made after districts submit requests for reimbursement and that they will monitor allocations and return with contingency plans if funds are not released.

Trustees asked how lost federal funds would be addressed; staff said some federally funded services (for example, special education) are legally required and would be funded from other sources if federal money were not provided, while other grants (professional development, academic-enrichment programs) might be adjusted or postponed if reimbursements are not forthcoming. Staff agreed to prepare a brief contingency analysis on what would be reduced or funded by the general fund if federal allocations were not released.

No board action was taken; staff will continue monitoring state and federal developments and report back as needed.