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Fort Zumwalt finance chief warns of $600,000 hit this year and multimillion-dollar ongoing shortfall from state funding changes
Summary
Finance staff told the board the district faces a roughly $600,000 reduction this year from a state high-needs fund shortfall and said a lowered state adequacy target will cut district revenue by about $4 million annually unless the state reverses course.
Brian Woodall, the district finance presenter, told the Fort Zumwalt R-II Board that the district’s revenue projections changed after the state announced a shortfall in the high-needs fund and an adjustment to the state adequacy target. He said the district’s share of the high-needs shortfall is about $600,000 this year.
Why it matters: Woodall said the other, larger change is the state adequacy target used in the funding formula. He described that revision as significant and said the district’s model shows it will reduce revenue by roughly $4,000,000 annually compared with prior forecasts unless the state provides new guidance or action. “So that’s 600,000 less we’ll receive this year than we were planning on,” he told the board, and later added the longer-term change “worked out to 4,000,000 less” than anticipated.
Details: Woodall said most district expenditures are already contracted for this year—salaries and purchases—which limits the ability to make midyear cuts. He noted higher-than-normal property-tax receipts could offset some of the current-year shortfall if collections hold. Board members asked clarifying questions; a colleague noted the district had negotiated multiyear agreements anticipating prior funding levels.
Context and next steps: Woodall said staff are reviewing options and that the district has some time to respond. He reported speaking with the state budget director, who indicated the new figure is likely to remain unless the legislature intervenes. The board did not take action on cuts at the meeting; Woodall said staff would return with analysis and options.
Ending: The board moved to other business after the financial presentation. Staff said they will continue scenario planning and will report back with recommendations on program adjustments, pacing of new initiatives, or other budget changes.
