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Board hears five‑year forecast: $3.7 million projected deficit next year; district frames $8 million referendum to address deferred maintenance
Summary
District staff told the board a roughly $3.7 million operating deficit is projected next year and that the proposed $8 million referendum primarily targets deferred maintenance and capital needs; board members pressed for clearer public messaging showing how the $3.7 million operating shortfall relates to the larger maintenance backlog.
District finance staff presented the five‑year forecast, telling the committee that the general fund balance peaked in 2022 and has declined since. The presenter (identified in the transcript as Josh, S9) said the district is "probably looking at another decrease this year" and estimated a roughly $3,700,000 budget deficit next year under current assumptions.
Staff described several assumptions that shape the forecast, including a 10% expected health‑insurance premium increase that would add about $750,000 to next year’s deficit under a straight premium‑increase scenario. The presenter also highlighted that the district transfers between roughly $9 million and $11 million from the general fund to support special education each year, and that reimbursements cover about 30% of those special‑education costs.
During the communications/referral discussion, district staff and board members framed the upcoming referendum as a response to both operating shortfalls and substantial deferred maintenance. One staff member (S12) explained a per‑student framing of $3,300 that was used in outreach and said that, framed that way, it can imply about $25,000,000 per year under certain assumptions; S12 also said the district has about $25,000,000 in deferred maintenance just for elementary schools and later referenced a districtwide deferred‑maintenance figure of about $57,000,000. Staff said the referendum ask of $8,000,000 is intended to address deferred maintenance and make targeted capital improvements, while board members noted that the operating deficit figure of $3.7 million reflects removing about $4.4 million in identified deferred‑maintenance items from next year’s budget to get to a balanced plan.
Board members urged clearer messaging to the public about the difference between the operating shortfall and the broader deferred‑maintenance need, and recommended showing specific examples — roofs, HVAC, and other tangible projects — so voters understand what the referendum would fund.
