Business officer reports steady general fund outlook but flags federal grant and capital needs; supplemental budget expected in March

Marina (district finance/operations lead) briefed the board on the district’s general fund, special revenue funds, debt service and capital projects and outlined near-term budget actions.

She told the board the general fund is “looking wonderful” year to date. Year-to-date spending was presented (instruction about $10.2 million; support services about $10 million) and the district anticipates total spending roughly in line with budgeted allocations (staff projected about $21.5 million in instruction and roughly $18 million in support services by year-end). Marina said the district set a board-designated contingency consistent with policy (a multi-hundred-thousand to million-level set-aside shown in the packet) and that she may present a supplemental general-fund allocation if needed.

On special revenue (grants), staff said a March supplemental budget will be necessary to spend last year’s carryover plus current-year allocations — a change driven by Oregon Department of Education timing that requires current-year spending to be reported. The administration flagged the district’s dependence on several federal/state grants (Title, SIA, Measure 98, IDEA). Marina noted IDEA annual funding around $815,000 and said reductions in federal funding would be locally significant because many paraeducator positions and special services are funded through those grants; the administration said any loss of federal funds would require program adjustments.

Capital projects: Marina and Dr. Ainsworth explained they will use capital funds and carryover to support initial work on relocating the district office into the Milner Press building. The board packet mentioned a working upfront allocation (discussed in the meeting at about $250,000) to begin classroom upgrades, basic wiring and signage, while larger projects such as a Sunset roof replacement were estimated at $2–2.5 million and would require further budgeting. Staff said they will prepare classroom-by-classroom quotes and bring the March supplemental to the board for approval.

Board members asked about property-tax timing; staff explained an expected lag in receipts and said collections typically level out in March when additional property-tax payments arrive. The business officer also described the federal fund exposure: many titles and special-education supports are grant funded and the district will plan contingencies if those sources change.

Ending: A March supplemental budget packet will add grant allocations and a capital allocation for initial district office remodeling; staff will return with detailed quotes and a recommended list of capital priorities.