Board approves midyear budget adjustments, one-time staff payments and reserve transfers

The Academy District 20 Board of Education approved a midyear budget update that tightens revenue and expense estimates for the 2024-25 fiscal year, authorizes one-time payments to district employees and moves several million dollars into capital and project reserves.

Becky Allen, district finance staff, told trustees the midyear process adjusts assumptions made in May, including actual ending fund balances, staffing shortfalls and updated enrollment. Allen said the district’s unassigned fund balance at the end of the previous fiscal year was $13.1 million higher than budgeted in part because about $9.7 million of payroll budget went unspent when positions remained vacant.

The board-approved resolution (17-25) includes one-time payments to recognize staff work during vacancies: $1,250 for full-time staff, $1,000 for those between half and full time, and $750 for under-half-time employees. The midyear package also authorizes a transfer of roughly $5.2 million to the capital reserve and recommends moving $3.0 million of board contingency to a PSMI reserve to help fund the Douglas Valley PK–8 match requirement.

Allen also reported modest enrollment changes: the district’s total headcount declined slightly compared with last year, but the budgeted enrollment estimate was 65 students lower than actual count due in part to charter movement. The midyear budget uses the state’s multi-year averaging method for pupil counts. Allen warned that the state is entering a difficult legislative session with a large budget shortfall, so some recurring costs are being funded with one-time dollars as a conservative measure.

On expenses, the midyear update recognizes recurring pressures for special education, including contractor costs to fill service gaps while positions remain open. The board approved a small increase in schools’ custodial and operating allocations ($7,000 per school) and consolidated employee-benefit reserves, including staff leave buyback funding.

Trustees voted by roll call to approve the midyear budget. Missus Kans, Missus Shandy, Mister Wilburn, Missus Yanez and Mister Salt cast aye votes.

The resolution moves the district’s target unassigned fund balance to about 10.7% of annual expenditures, within the district policy range. Finance staff said the midyear decisions aim to shore up near-term reserves while directing one-time funds to staff and capital needs.

Board members praised the finance staff for transparency and for identifying small spend items in monitoring reports that prompted internal process refinements.

Outcome: the board approved the midyear budget adjustments and authorized the listed transfers and payments.