Board reviews 2025 investment report, flags education fund deficit and looming operations cut
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Summary
Finance staff reported $617,940.75 in interest earnings for 2025 and described pending reimbursements; board members flagged a roughly $700,000 education fund shortfall and a projected $900,000 operations fund reduction in 2026 that will reduce cash balances unless addressed.
The Board of Finance reviewed the district's 2025 investments and fund balances and discussed reimbursement timing and near-term budget pressures.
David (finance staff; last name not specified) reported that the district earned $617,940.75 in interest in 2025 and that the business office moves unused funds into higher-yield Trust Indiana accounts to increase earnings. He said most of the interest is allocated to the education fund and that bond-related accounts are kept separate for project needs.
Board member Paul reviewed cash flows and told the board the education fund began the year near $5.0 million and ended the year at roughly $4.243 million (approx.), reflecting about $700,000 in deficit spending that the board should watch in 2026. Paul also said the operations fund increased from about $2.7 million to just over $3.0 million in 2025 but warned of a projected $900,000 reduction to the operations fund next year that will lower cash balances and require expense management.
Staff and board members discussed that negative balances in some funds reflect the timing of reimbursable federal grants, not unapproved spending. Debbie (staff) confirmed that pending reimbursements explain negative entries and David said staff are working with Noah Dixon to complete reimbursement requests. Staff reported an approval of roughly $1.2 million on Jan. 5 that should help cover current red balances; staff also noted Title I and Title II funds have begun to be released.
A board member urged school supporters to contact state legislators about funding decisions, warning that cuts to the operations fund would affect bus monitors, custodians, maintenance, IT and kitchen staff and could harm students.
The board did not take any budget-appropriating action at the meeting; members asked staff to continue monitoring cash flow and reimbursements and to report back as needed.