Ocean View fiscal officer warns of smaller COLA, $1.3M shift in multi‑year projection

Keith Farrow, the district’s assistant superintendent of administrative services and chief business official, presented the board with an update on the governor’s January budget proposal and its impact on the district’s multiyear financial projection.

Farrow said the state’s cost-of-living adjustment (COLA) assumptions for 2026–27 and 2027–28 were reduced in the current proposal, producing a nearly $1.3 million decline in the district’s projected ending fund balance (from $9.5 million to $8.2 million) under the updated assumptions. He said the change reflects state-side COLA assumptions and that enrollment and attendance also affect revenue. Farrow emphasized the information is preliminary and will be revised in the May revision and again when the governor signs the budget in June.

He noted the governor’s proposal includes a $2.8 billion one-time discretionary fund that, if distributed per ADA at roughly $512, could yield the district approximately $3.0 million in one-time funds. Farrow cautioned those funds are one-time and the district is planning conservatively, distinguishing ongoing versus one-time spending.

Board members asked clarifying questions about how COLA is calculated and the temporary nature of discretionary funds. Farrow said district staff will monitor the May and June budget developments and prepare the second interim projection for the board in March, at which point staffing will be reviewed and updated.

Farrow’s presentation included an updated planning view prepared by fiscal staff and reiterated the district’s approach to conservative assumptions pending state action.