District projects multi‑year gap driven by special education growth; board certifies first interim as positive

Bill Flynn, business services staff, presented the district’s first interim financial projection, covering actuals through Oct. 31 and two‑year forecasts. The report showed the district is engaging in planned deficit spending for the current year and projects a Year‑3 structural gap approximately in the low millions (presentation estimated about $4.1 million) if current assumptions hold.

Flynn told trustees a major driver of the pressure is increased special education contributions and associated transportation costs for specialized routes; staff reported the general fund contribution to special education is on the order of tens of millions (administration referenced roughly $25 million as a contribution figure while noting the number encompasses several funding streams and is a moving target). He said rising special education caseloads, 1:1 aides and transportation for medically fragile students are the most significant budget pressures.

Trustees asked about state budget signals and one‑time funds. Flynn explained that the January state budget proposal and one‑time revenue items could alter mid‑range projections and that his team requested and received a short audit filing extension because federal audit guidance for 2024–25 arrived late. The board discussed management options for reducing the anticipated gap while minimizing impact on students.

After discussion, trustees certified the first interim as positive by unanimous vote and directed staff to continue budget‑task force work and return with detailed options for reducing the multi‑year shortfall if state funding projections do not improve.