Treasurer warns of multi‑million shortfalls in four‑year forecast; board approves filing
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Summary
Treasurer presented a four‑year forecast showing a roughly $4 million projected shortfall next year that compounds in subsequent years due to tax law changes and a funding formula update; the board approved submission of the forecast and discussed advocacy options.
The district treasurer presented a four‑year forecast revealing multi‑million dollar deficits beginning next year, and the board approved filing the forecast with the state.
Treasurer Adam (speaker 2) told the board that fiscal year 2026 projected revenues total about $107.1 million while expenditures are about $104 million, leaving a one‑year positive variance for FY26. However, he warned that next year the district faces roughly a $4 million shortfall and deeper deficits thereafter under conservative assumptions, driven in part by changes to state funding formulas and lower expected tax revenues.
"We were supposed to get $56 million in the tax law; the current tax law now gives us $51.4 million this year — that's a $4.5 million annual hit," the treasurer said, explaining how formula and tax changes affect district revenue. He emphasized that the forecast compounds deficits over the coming years and recommended the board consider reductions and further planning.
Board members discussed advocacy steps and professional associations (GFOA, OSBA, ASBO) to highlight the funding change's impact on the district. The treasurer noted the district maintains a healthy fund balance this year but that the multi‑year outlook will likely require difficult budget decisions.
Why it matters: The forecast frames immediate budget priorities and will inform staffing, program and capital decisions. Board-approved forecasts are submitted to the state as required and are the primary planning tool for district leaders.
Next steps: The board approved the forecast for submission; staff will continue to monitor state policy changes and pursue advocacy and collaborative efforts with state and professional organizations to mitigate funding disruptions.