District finance update: $1.67M ending fund balance, encumbrances and boundary work flagged

Nate presented the district’s financial reports (packet pages covering June 30 and monthly statements), saying the district’s final ending fund balance for 24–25 is approximately $1,674,706. He explained how to read the packet (budgeted amounts, year‑to‑date actuals, projections and appropriations) and emphasized that encumbrances for large multi‑month contracts — especially transportation, special education contracts and utilities — are locking portions of budget that make the picture look tighter.

Nate told the board the district has taken on roughly $4,000,000 of additional costs since budget adoption but has identified approximately $3,100,000 in offsetting revenues and adjustments. Drivers cited included collective bargaining outcomes (about $600,000), added staff for class‑size mitigation and PE push‑ins, higher needs students requiring 1:1 supports, and a reclassification of grant timing that pushed $430,000 back into the general fund. He said the district remains within appropriation levels but expects to bring a budget rebalance in early spring.

Board discussion turned to the boundary committee, which the superintendent said is evaluating reconfiguration options because four small elementary schools with one or two sections per grade create staffing inefficiencies that force added FTE early in the year. The superintendent warned that to eliminate planned furlough days next year would require roughly $1.25M per day (an illustrative figure staff used to communicate scale) and that state revenue forecasts due this week will materially influence next steps.

Board members requested a short monthly cover sheet summarizing major drivers of change and asked staff to provide updated student membership counts and to continue communicating risks and mitigation strategies. No formal votes were taken on budget changes at this meeting.