Lake Oswego School District business staff presented a preliminary, unaudited general fund summary for the fiscal year ended June 30, 2025, reporting an ending fund balance of approximately $6,067,000 and outlining drivers of the result.

Mister Ketzler said early projections in 2024 signaled a potential shortfall tied to rising PERS costs and state funding pressures. He said the district took “proactive measures” — such as not immediately backfilling vacant positions and managing discretionary spending — that, along with slightly better revenue realizations, produced an ending balance higher than earlier projections but still below the board’s reserve target.

Ketzler said the district is below its 8% minimum fund balance and that the difference between current reserves (about 5%) and the 8% target represents roughly $3.8 million. “We won’t be able to make that up in one fiscal year or two,” he said, calling it a multiyear effort.

Ketzler called out two central service areas with notable year‑to‑year changes: psychological services (noting a roughly $975,000 expansion relative to prior‑year budget figures) and computer network/device repair costs (about $1.9 million expended in FY25, including roughly $250,000 in device repair costs that exceeded prior year levels). He said these shifts were managed within the overall budget through offsetting discipline elsewhere.

Ketzler noted the report is unaudited and that the auditors’ field work would begin the following week; any audit adjustments would likely be immaterial, he said. He also said the district’s monthly cash burn is roughly $10 million and that an unexpected state funding interruption could force difficult operational decisions.

Ending: Ketzler said staff plan a financial‑model update after the state’s December revenue adjustments, and he anticipated bringing a revised forecast back to the board in December.