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District projects $17 million favorable variance; board to consider final legal budget and tentative 2024-25 plan
Summary
Finance staff told the board the district expects roughly $780 million in general fund revenue and an overall budget of about $1.1 billion; higher interest income contributed to a projected $17 million favorable variance, directed toward a one-time 2% employee payment, stabilization reserves and unassigned fund balance.
District finance staff presented the final legal budget outlook for the current fiscal year and a preliminary look at the 2024-25 budget. Staff estimated general fund revenues at approximately $780 million and a total budget near $1.1 billion, noting an estimated favorable variance of about $17 million driven largely by higher interest earnings (cited as roughly 5% in current cash returns compared with 0.1% two years ago).
The finance presentation allocated roughly $10.5 million to a 2% one-time payment for employees, about $2 million to the district's economic stabilization account (board-designated reserves), and roughly $5 million to increase unassigned fund balance. Staff also reviewed debt-service and capital funds, stating the district intends to use $27 million of fund balance to pay down debt principal and reported outstanding debt of roughly $442 million.
Budget staff discussed assumptions driving the outlook, including a projected decline of about 1,500 students next year tied to birth-rate and cohort-size trends. The finance team said next steps include a public budget hearing and formal adoption of the final legal budget at the next board meeting; the tentative 2024-25 budget will be presented for initial consideration without anticipating a tax increase.
Board members asked clarifying questions about reserves, self-insurance funding and the long-term capital allotment used for recurring remodel and maintenance needs.
