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North Marion SD 15 reports higher-than-expected fund balance projection, flags enrollment decline and transportation cost spike
Summary
District financial staff reported midyear projections that could yield an ending fund balance near $2.5 million (budgeted $1.276 million), but transportation costs are up (projected ~$2.7 million) and enrollment is declining faster than the state average — a trend that will affect 2026–27 funding.
District financial staff told the North Marion SD 15 board that, halfway through the fiscal year, expenditures are about 35% of budget, and preliminary projections show a potentially favorable outcome with expenditures coming in as much as $900,000 under budget. If current trends hold, staff projected a preliminary ending fund balance near $2,500,000 compared with the budgeted $1,276,000.
At the same time, transportation expenses are projected to end the year near $2,700,000 — a noticeable increase from prior years and larger than the budgeted amount. Staff noted that specialized transportation and regulatory requirements make reductions difficult, though some route reviews are under way.
Staff warned that North Marion’s enrollment decline is outpacing statewide averages; because state funding is calculated using a two‑year lookback, the 02/25/26 enrollment figures will influence the 26/27 budget and could reduce per‑pupil funding if declines persist. The business presenter noted the General Fund ending-balance guideline often cited by finance groups is 8–10% of general fund expenditures, and the board may want a policy clarifying an ending-fund-balance target before the 2026 budget cycle.
Board members discussed options for adopting a fund-balance policy and the potential credit-rating implications. Staff suggested bringing a sample policy to the next work session for first reading and consideration before budget adoption.
