Liberty ESD projects lower ADM, recommends using classroom-site carryforward to fund raises

Becky Williams, the district business services presenter, told the Liberty Elementary School District governing board that the district’s attendance-driven funding will decline next year after a large eighth-grade class graduates. Using December enrollment data adjusted for graduating eighth graders and current kindergartners, Williams projected a net loss of about 350 average daily membership (ADM) for FY26-27 and increased the state multiplier used for per‑ADM funding from $5,113 to $5,215 to reflect a 2% statutory adjustment.

Williams said the combination of lower ADM and the multiplier change — plus existing override and one-time state funds included provisionally in the draft — yields a projected decrease in the district’s general fund from about $38.0 million (December revision) to roughly $37.05 million for FY26-27. She recommended restoring $100,000 to capital (to a proposed $600,000) after earlier transfers and noted a projected minimum fund balance carryforward of about $750,000 at year end. Williams cautioned that one-time state funding is not guaranteed.

Board members pressed Williams on the arithmetic. A board member calculated that 350 ADM at the base support amount would imply roughly $1.8 million in lost revenue and asked why the budget gap appeared nearer $500,000. Williams and other board members explained that offsets include the 2% per‑ADM increase, a current override the district receives, and one‑time state monies in the December budget that were carried into the projection. Members also discussed whether vacant positions are currently encumbered in the carryforward calculation; Williams said encumbrances do not appear to be included and she would check with payroll for confirmation.

On staffing costs, Williams presented estimated costs to correct step placements and implement raises. Bringing classified employees to the correct steps would cost about $257,000 in total (including roughly $23,000 for bus drivers and $184,000 for classified hourly staff); different raise scenarios (1%, 1.5%, 2%) were modeled and the board was told a 2% across-the-board raise for all employees would total roughly $440,000. Williams recommended paying teacher pay increases from the Classroom Site Fund, which currently shows an approximate $3.0 million carryforward, instead of M&O, while warning the Classroom Site Fund is not guaranteed to replenish at current levels indefinitely.

Several board members argued for moving to a campus-level or zero‑based budgeting approach so the district can see costs per school and per cost center (transportation, maintenance, special education) rather than large aggregated buckets. One member warned that newly built or remodeled campuses with low ADM (Liberty was discussed specifically) will show high per‑student costs. The board asked staff to encumber approved positions when preparing the next revision and to continue budget-committee work on priorities and possible cuts.

The board did not take a formal final budget vote at this meeting; members directed continued work with the budget committee and asked staff for clarifications on encumbrances, carryforward assumptions, and sensitivity to ADM changes.