Board accepts clean audit; superintendent warns of $7.5–$13 million potential budget cuts

The Gresham-Barlow School Board accepted the district’s 2024–25 Annual Comprehensive Financial Report after auditors issued a clean opinion and staff outlined potential near‑term budget reductions.

Pete, the district’s finance director, summarized the audit and said auditors identified sensitive estimates—particularly PERS liabilities—that affect reported assets and liabilities but that the overall audit opinion was unmodified (clean). "Fraud risk assessment didn't indicate a high risk of material misstatement," Pete said, and he highlighted improvements that removed prior findings.

Superintendent Tracy told the board the district faces rising operational and staffing costs, substantial PERS obligations, and state and federal revenue uncertainty that could require $7.5 million to $13 million in reductions for the 2026–27 biennium. "We are currently developing a reduction plan and are committed to a process defined by communication and collaboration," Tracy said, inviting community participation in outreach beginning next month.

Sean moved to accept the 2024–25 ACFR and the board approved the motion. Board members thanked the finance team for addressing prior audit findings and for producing a clean result.

Pete also presented a one‑page monthly financial update showing improved ending fund balances driven in part by property tax recognition. He said forecasts use data from county assessors and internal projections to triangulate revenue expectations.

Next steps: District staff will continue budget planning, perform community outreach on proposed reductions and return options to the board for deliberation.