Board approves five-year forecast and revised appropriations; finance staff warn reserves may fall short by 2030

The board voted to approve the district's updated five-year financial forecast and associated revised appropriations during the Feb. 9 meeting.

Treasury/finance staff explained the forecast reflects a new earned-income tax approved by voters in November 2025, a 13.8% increase in medical premiums for calendar year 2026 and updated state funding tied to current student data. Presenters noted the forecast now uses the current-year budget plus a three-year projection in line with requirements enacted in the most recent state budget (House Bill 96).

On reserves, presenters said the forecast does not meet the board's 90-day operating cash policy in fiscal year 2030. As the presenter explained during Q&A: "90 days in 2030 would be about $66,000,000 and our unreserved cash balance in that year is being shown at about 55 and a half million. So we're about 10,000,000 short of that target." The presenter also noted uncertainty in multi-year projections because of possible state and federal funding changes.

During the meeting the board approved routine financial items earlier in the agenda, including financial reports and investments for November and December 2025, and a "then and now" purchase for Garberg Electrical Contractors that the operations department brought forward after a purchase-order issue.

The board moved and approved the revised appropriations for fiscal year 2026 to align the general fund with the forecast and to capture updates to student activity accounts and federal grant allocations. The superintendent and finance staff said they will continue to monitor federal grant levels and legislative changes that could affect revenues and will present further updates as needed.

Next steps include continued monitoring of revenue projections, a planned March work session to discuss remaining capital needs and bond fund allocation, and continued presentations to the board on forecast updates.