District finance staff report midyear budget variances, propose amendments; carrying costs for idle schools cited

Finance staff presented the district’s six-month general fund statement and told the board they will propose budget amendments at the next meeting to reallocate spending between functions without increasing total budgeted expenditures. "We will not have any budget amendments that will impact or increase our budgeted expenditures," the finance presenter said, adding staff will explain recommendations in detail when they return.

The presenter highlighted several notable variances. Federal revenues through December were $111,006.58, compared with a budgeted $54,001.41 — a favorable variance staff will verify with the business office. Overall, the district’s general fund expenditure budget is $22,400,000, with $11,200,000 spent through six months, roughly 50% of the annual appropriation.

Staff also shared a separate estimate of the carrying cost for three outlined schools — Greenville, Lee and Pineta — that the district is retaining on the books. Those variable costs (property and casualty insurance, utilities and basic maintenance) totaled about $280,000 on a combined basis. As an example, Greenville’s projected annual carrying cost was presented as about $91,000; board members asked staff to break that down into monthly figures for comparison.

Board members raised timing concerns tied to the district’s insurance. Staff said current coverage runs through April and that a new policy would begin May 1, which affects whether idle buildings remain insured and how premiums are budgeted for next fiscal year. One board member emphasized the fiscal risk of idle buildings: "we have buildings sitting there idle, and anything can happen to those buildings. And if it happens, we’re paying for it."

Next steps: staff will return with recommended budget amendments for function-level reallocation and a clearer, itemized carrying-cost and monthly projection for the named properties. The board signaled interest in seeing granular breakdowns before approving any amendments.