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School board hears budget update; finance staff say earlier deficit figure was premature
Summary
Finance staff told the board that a widely reported $4.5 million shortfall was premature because of differences between county cash accounting and school-division accruals, outstanding reimbursements and reversal of accruals; the division now expects carryover funds and presented budget risks including transportation and an impending minimum-wage increase.
Finance staff provided an update on the FY24–25 closeout and on budget risks for the upcoming year, saying the $4.5 million shortfall reported externally did not reflect accruals and outstanding reimbursements and that, after adjustments, the division expects carryover rather than a large deficit.
Miss Tuttle said some federal and state reimbursements (largely payroll-related) were still outstanding at year end and that accruals had not yet been reversed when the county presentation took place; that combination made an interim report look like a deficit. She told the board the division is audited through the county's audit process and said the division had budgeted in the textbook fund for the math-textbook purchase.
Board members asked for projection work from the county (LCI projections) and for more detail on carryover. Miss Tuttle reported $367,000 in carryover from FY23–24 and recommended applying it to capital priorities, with staff directed to work with operations staff on a prioritized list.
Budget risks discussed included transportation (aging fleet, substitute-driver costs, parts and tariff-driven price pressures), driver shortages and staffing needs, and the effect of an anticipated minimum-wage increase on low pay scales and compensation plans. Staff said transportation is exploring upgraded routing software to improve efficiency and that any major changes to services would be subject to policy and statutory limits.
Ending: The board asked staff to obtain county LCI projections and return with more detailed budget projections and a prioritized capital list for the available carryover funds.
