Washoe trustees direct FY27 budget to exclude near-term Matter Academy impact, approve $5.73M reductions

The Washoe County School District Board of Trustees voted to direct the superintendent to prepare the district's tentative FY2026-27 budget without counting the near-term enrollment impact from Matter Academy and to approve a budget-reduction plan estimated at $5,727,558.

The move was approved after a multi-hour presentation from Chief Financial Officer Mark Mathers, Deputy Chief of Finance Jeff Bozzo and Chief Human Resources Officer Doug Owen outlining revised deficit estimates and recommended cuts. Mathers told trustees the district had modeled its shortfall and concluded that roughly 72% of the originally projected $18.4 million deficit was attributable to low state per-pupil funding, with the remaining share tied to declining enrollment.

Bozzo said litigation- and permitting-related delays mean Matter Academy likely will not open in August 2026 and that the district can shift the charter's 733-student impact into FY2028. "If we take the 733 student enrollment decrease out," he said, "that leaves us with a $5.3 million deficit for FY27," a level staff said the proposed reductions could resolve.

The approved reduction package concentrates on central-office and nonacademic positions, plus nonpersonnel savings such as software-license reductions and contract renegotiations. Staff told trustees that of the roughly $5.7 million of proposed savings, about $1.8 million are nonpersonnel reductions and the remainder come from position deletions, downgrades or conversions timed to June 30, 2026.

Board members pressed staff on service-level impacts and protections for employees. Chief Human Resources Officer Doug Owen emphasized that affected full-time employees would have access to transfer and placement processes, bumping rights under negotiated agreements where applicable, and that the district has identified vacancies and retirement opportunities over the next months to reduce risk of job loss.

Vice President Woodley moved the motion, which directed the superintendent to prepare the FY27 budget excluding Matter Academy's enrollment impacts, approve the budget-reduction plan estimated at $5,727,558, and directed staff to report back on potential NIAA-sanctioned sports costs and I-Ready reimbursement at the next budget work session in February 2026. Trustee Nicolette seconded the motion. The board voted unanimously in favor.

President Mayberry said the intent of the approach was to resolve the FY27 shortfall while giving employees time and opportunity to apply for vacancies and retirements. Trustees also asked staff to keep communicating with employees and to return with more analysis on items raised during public comment, including home-hospital services and caseloads.

The board adjourned the special meeting at 12:24 p.m.; trustees will meet again for general business at 2:00 p.m.