Carson City trustees hear $5.4 million FY2027 shortfall projection, approve short-term CIP change to buy three buses

Carson City — The Carson City School District board on Oct. 14 was warned that, if current staffing and benefit levels continue, the district faces a projected structural deficit of about $5.44 million in fiscal year 2027.

Spencer Windward, a district staff member who presented the numbers, told trustees the combination of the current year’s remaining structural shortfall and new salary-and-benefit costs would push the gap higher. “If we continued staff exactly how we are, what FY ’27 would look like,” Windward said, summarizing the projection. He showed a FY2026 structural deficit that would roll into FY2027 and then add an estimated $1.5 million for step increases and negotiated items, producing the $5.44 million figure.

Why it matters: the district’s general fund is heavily weighted to salaries and benefits — roughly 87% of expenses — so projections that assume no staffing or benefit changes produce large deficits quickly. Trustees repeatedly said they want to avoid abrupt staff reductions and instead pursue options that minimize impacts on classrooms.

Short-term capital action: The board voted to revise the district’s capital-improvement plan (CIP) to reallocate up to $800,000 of existing CIP authority into a transportation fleet procurement line so the district can buy three transit buses that are immediately available. The buses were offered because another district’s order changed; vendors said new-build availability is currently 14–18 months. Trustee Walt moved the CIP revision; Trustee Peterson seconded. The motion passed on a voice vote.

Spencer Windward said the buses cost about $252,500 each and that the requested $800,000 includes a small contingency. He told trustees the purchase will be funded by rearranging existing CIP budget authority and by accessing pay-as-you-go funds in a subsequent December budget amendment. The pay-as-you-go account must keep at least 50% of next year’s debt-service principal and interest under state law; after the transfer the district would still hold more than 100% of that threshold, Windward said.

Board response and next steps: Trustees and staff agreed the projected FY2027 gap requires a multi-pronged strategy. President Ramirez told the room that solving the shortfall “is going to take the entire board. It’s gonna take everybody.” Trustees directed staff to schedule a series of public budget workshops to present options and to model the fiscal impact of possible changes, including vacancy savings, targeted reductions, and other revenue assumptions.

What the vote did not do: The CIP revision approved on Oct. 14 reallocated existing capital authority; it did not change the board’s approved FY2025–26 budget authority. Windward said district staff will restore or reassign the originally planned CIP projects during the usual December budget amendment so capital projects already planned are not canceled, only temporarily rephased.

Numbers and details: Windward summarized the district’s position as follows: beginning fund balance roughly $15.2 million at the start of FY2026; an estimated structural shortfall of about $3.9 million for the current year after updates; and roughly $1.5 million in additional salary-and-benefit pressures rolling to FY2027, producing a projected structural deficit of $5.44 million if no program or staffing changes are made. The buses available now cost about $757,500 total; the board approved up to $800,000 to cover the purchase and incidental fees.

The board approved the CIP revision by voice vote (motion by Trustee Walt; second by Trustee Peterson).