Douglas County trustees adopt final 2024–25 budget amendments, warn of shortfall and audit timeline

The Douglas County School District Board of Trustees on June 26 unanimously adopted two resolutions to amend the district’s 2024–25 general fund and to augment several funds after district finance staff said the district faces a budget shortfall for the first time in decades.

Chief financial presenter Sue Estes told the board the district’s revenues have declined because enrollment is lower than anticipated and several cost pressures have accumulated, including higher special‑education and substitute staffing expenses. Estes said a formal corrective picture will be clearer after the district completes its fiscal year close and the external audit process, which begins with a preliminary auditor visit in August and typically culminates with auditors presenting results to the board in December.

Estes and staff described several specific drivers: this year’s enrollment loss is roughly 250 students, which the district estimates reduces funding roughly $2.6 million under the state’s per‑pupil funding model; the special‑education program has produced substantial unbudgeted costs and several case files for reimbursement that were denied initially by the state but may be resubmitted for consideration; and substitute staffing and other payroll pressures, amplified by pandemic‑era attendance patterns, have increased expense lines beyond original estimates.

Finance staff also described a change in state guidance on a recent teacher pay supplement. Estes said money that had been treated one way in the prior year (referred to in the meeting as “SB $2.31 money”) will be continued in a different form under a program staff called “SB 500.” Staff reported the SB 500 funding must be tracked separately and cannot simply be absorbed into the district’s general fund; that accounting requirement will further constrain the district’s flexibility when finalizing the year‑end financials.

Board discussion pressed for timing and audit details. Estes said the district will not complete its final 2024–25 expenditures until an August run of payrolls and encumbrances; she plans to prepare financial statements after that run and the auditors will work through September–October with an expected board presentation in December. The board asked staff to bring regular updates at meetings and to make the audit timeline clear to the public.

Votes at a glance: Trustees adopted Resolution 25‑01, “Resolution to amend the General Fund for fiscal year 2024–25” and Resolution 25‑02, “Resolution to augment and amend certain funds to which ad valorem taxes are not allocated for fiscal year 2024–25.” Both motions passed by unanimous voice vote.

The board also heard public comment about district legal costs and a bus driver raised concerns about pay and the impact of changing state supplements. District staff said they are pursuing several reimbursement and relief avenues while preparing the formal audit and corrective actions.

The board requested staff continue to provide monthly updates on the audit progress, possible reimbursements for special‑education case files and updated enrollment and revenue estimates ahead of the district’s December audit presentation.