District says state's move to direct certification reduced compensatory revenue by roughly $2 million

Speaker 1 warned board members that recent state policy changes to student poverty measurement have reduced the district's compensatory revenue and could materially affect the operating budget. He described a shift away from form-based counts to direct certification and said that approach affected districts unevenly.

"The difference between old heartless habit and them referring to exclusively direct certification is about $2,000,000," Speaker 1 said, using the meeting's language to summarize the district's estimate of lost revenue. He added that a harvest provision enacted last year had reduced the district's projected cut but that the issue remained a top legislative priority for district advocates.

Context: Staff said some districts gained and others lost under the change; the district's position is to pursue maintenance of last year's spending level while legislators consider a longer-term fix. Speaker 1 noted a preliminary legislative report due Jan. 26 and a final report later in the year, leaving unresolved whether the revenue formula will be altered before the district completes its budget.

Impact and next steps: The district will monitor the legislature, press for preservation of compensatory revenue and incorporate the funding outlook into the February work-session update. Speaker 1 urged that education organizations make this a top priority during the session to avoid program reductions tied to the revenue shortfall.

No formal action was taken at the meeting; staff described the funding shift, estimated its dollar impact and sought board direction to continue advocacy and monitoring.