Finance staff warn of multi‑million dollar impacts from SB1; district reports $12M in CDs and plans for work session
Summary
The district’s finance officer reviewed investments and fund balances, reporting about $12 million in certificates of deposit and warning that Senate Bill 1 could produce $4.5–5.0 million in near‑term revenue pressure and a possible $2.4 million hit in 2028; board scheduled further review and a work session.
During the board’s annual board of finance meeting, district finance staff reviewed the investment policy and fund balances and laid out a multi‑year outlook affected by state legislation.
Treasurer Mister Street reported about $12 million held in certificates of deposit and described a conservative investment posture (CDs and treasuries only). He said higher interest earnings in recent years bolstered revenues but projected those earnings to decline in 2026 as interest rates fall.
On legislation, staff said Senate Bill 1 (SB1) could create a combination of ‘unprinted credits’ and circuit‑breaker effects that may amount to $4.5–5.0 million in near‑term revenue pressure and a possible $2.4 million loss in 2028. “On the property tax side, we’re probably looking at about another $3,000,000 effects…combination of those two together, 4 and a half to 5,000,000,” a finance presenter said. Board members discussed using attrition and other spending adjustments as mitigation and requested a work session to plan responses.
The finance presentation included charts on fund balances, the 65% education‑fund salary/benefits metric, preschool funding declines and projected small deficits in 2025–2026 under current assumptions. Staff said they will convene additional discussions with leadership teams and bring proposals to the board.
Next steps: schedule a focused work session on operations and education fund strategies and provide detailed modeling of SB1 scenarios.
