Finance advisory committee: 2023–24 ends $1.2M in the red; staff expects May state adjustment to improve position

Finance staff presented a year-end review on Nov. 6 showing Newberg SD 29J’s 2023–24 general fund revenues totaled about $60.9 million versus a budgeted $65.0 million, leaving the district with a reported negative ending fund balance of about $1.2 million. Gail, the district’s finance presenter, told the committee the largest variance came from state school fund formula adjustments and earlier overestimates of property-tax inputs to the state calculation.

The presentation traced several drivers of the shortfall. Gail said the district budgeted $53.8 million for the state school fund (object 3101) but received about $49.0 million after a May prior-year adjustment and changes to the state’s funding ratio. She also identified accounting reclassifications and improved interest-allocation practices that reduced the projected deficit from earlier estimates near $1.7–2.0 million to the reported $1.2 million.

Committee members pressed on programmatic drivers. Gail said special education less-restrictive-placement programs (object 1250) ran about $900,000 over budget, largely because the district could not hire certain specialized staff midyear and relied on contracted services, which are more expensive. Transportation costs also exceeded the figures that were in the adopted budget because a later contract renewal returned service to the former contractor and contract amounts were not reflected in the budget.

Gail described one-off and timing items that should improve the final position. She said the district expects a May 2025 state payment tied to prior-year adjustments and an inclusion of high-cost disability funding; the staff estimate was roughly $2.7 million to $3.0 million. If those funds arrive as projected, the committee heard, the district would move from the reported $1.2 million deficit for 2023–24 to a net positive position when the May payment posts and the proceeds roll to the 24–25 year.

On appropriations, Gail told the committee auditors noted a $281,547 over-appropriation for support services that will be reported to the state; auditors flagged it in the report but did not recommend fiscal penalties. She said the district will monitor appropriations monthly and bring supplemental-budget resolutions to the board as needed.

Gail also reviewed the proposed 2024–25 budget frame: total revenues of about $56.5 million, with a conservative treatment of property-tax timing and a separate line for high-cost disability revenue ($800,000 budgeted to the 32xx object). Staff are not charging an indirect rate to grants this year, which increases grant-funded direct services but reduces general-fund offsets.

Committee members asked for more detail on line items (for example, board legal costs and specific purchase-service charges) and recommended that staff present more-focused monthly reports showing expected versus actual spend by date to aid midyear forecasting. Gail said staff will return with regular appropriation monitoring and more granular reports. The committee set a tentative next advisory meeting for early February to align with state updates and budget committee work.

The committee approved procedural minutes at the start of the meeting by roll call vote.