Business report: enrollment steady, fund balance up year-over-year; transportation funding shift flagged

Marshall Cruz presented an executive summary of the district business report on March 11, telling the board that overall enrollment is on budget while Crossroads enrollment has declined as an interdistrict agreement with Lake Stevens sunsets. He said K–12 counts are up and special education (SPED) enrollment is higher than budgeted. Cruz reported the district’s general fund balance is approximately $970,000 better than the same time last year though January showed a negative balance of about $66,000.

Cruz walked the board through a year-end forecast: beginning fund balance around $2,370,000, projected revenue roughly $46.5 million and expenditures close to $46 million, producing an expected fund balance near the district’s target (about 5.8–6%). He noted encumbrance accounting quirks and that worksite learning FTE is added at year end and will slightly increase revenue.

On transportation, Cruz said the district recently received a new full-size bus and a smaller bus arriving for inspection. He warned of a likely change in the state budget that would move depreciation schedules for buses to 15 years, which would reduce replacement funding and increase maintenance: "It's moving all of them to a 15 year depreciation schedule, which will mean more maintenance, but less money to buy buses." He also quoted a local line discussing current bus price: "Full size big bus is $1.85 now" (the transcript did not specify units; likely denotes millions but units are not stated).

A board member and Cruz also confirmed plumbing fixture replacements were 100% grant-funded (approximately $70,000) and asked that the grant be noted in the board materials.

Cruz said the board will need a future conversation about fund-balance policy and long-term planning given enrollment and funding trends.