Kuna district CFO warns of steeper fund-balance draw, outlines two-year plan to recover
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
CFO Jonathan Gillard told trustees the district now projects a $2.1 million draw on fund balance this year—larger than the $1.5 million assumed in last year’s budget—primarily because of salary-schedule minimums, rising special-education costs and operating expenses; he proposed savings spread over two years and options to increase enrollment revenue.
CFO Jonathan Gillard told the Kuna Joint School District board that the district’s financial picture is weaker than anticipated, projecting a roughly $2.1 million reduction in fund balance this fiscal year, up from the $1.5 million draw assumed when last year’s budget was adopted.
“Based on the projections I’ve run, you’ll be around $2,100,000 that we’ll lose this year based on expenses,” Gillard said. He warned that the shortfall reflects several drivers: state-mandated changes to salary-minimum schedules, operating-cost inflation that outpaced state increases, and escalating special-education expenses.
Why it matters: the district expects to finish the year with about a 17% fund balance, which Gillard described as “still a good healthy amount,” but he cautioned shrinking reserves reduce flexibility to respond to midyear funding changes and could influence bond evaluations if reserves fall further.
Plan presented: Gillard outlined a two-year approach to limit the impact. The administration aims to identify roughly $1.1 million in savings through natural attrition, delaying or phasing capital spending, and trimming materials and services. He said the district will run another round of projections and present a draft 2026–27 budget and a work session in May to detail revenue and expense options.
On revenues: Gillard noted limited local control over enrollment-driven revenue but said small increases in attendance (even a tenth to a half percentage point) could bring meaningful operational dollars. He also warned that Medicaid reimbursements do not keep pace with rising special-education costs and that the general fund increasingly has to absorb the gap.
Next steps: trustees asked for monthly-expenditure figures and additional detail on the components of the projected shortfall. Gillard said he will circulate more granular numbers and bring a fuller 2026–27 revenue projection to the May work session.
The board did not take formal action on the budget at the meeting; Gillard recommended continued monitoring and a phased approach to any reductions.