CFO warns of ~$8.9 million projected deficit and flags transportation overages
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Summary
CFO Mister Hernandez presented the district’s general-fund snapshot (year-to-date actuals ~$113.5M; encumbrances ~$69M) and repeated a projected general-fund deficit of about $8.9 million. He told the committee transportation was misbudgeted (budgeted $30M; projected $37–39M) and said route counts exceed contract assumptions.
Mister Hernandez, the district’s chief financial officer, told the Finance & Operations committee that the district’s general-fund financial snapshot as of Feb. 28, 2026 shows roughly $113.5 million in actuals and about $69 million in encumbrances, and that the district is carrying a projected general-fund deficit of about $8.9 million.
"None of the numbers that we’re seeing right now are providing us with enough data to believe that that projection will change drastically," Hernandez said, repeating the committee’s year-end deficit projection and noting that final adjustments are expected once additional revenue figures arrive in April and May.
Hernandez identified transportation as a major driver of the variance. He said the transportation line was budgeted at $30 million for the year but that actual needs are expected to be in the $37 million–$39 million range. He attributed part of that gap to a misbudget and part to higher route counts: the contract was written around 260 regular-education buses plus 57 special-education/outplacement routes (a total of 317), but Hernandez said the district is running about 331 routes in current service.
Board members asked about fuel exposure and whether the district or the vendor purchases fuel. Hernandez said the district pays for diesel directly (First Student purchases regular gasoline and bills the district). Committee members requested a dedicated transportation report at the April meeting and suggested the update include electrification planning and route-auditing results.
Hernandez also presented new visualizations that compare month-to-month expenditures and encumbrances year over year; he proposed adding categorical breakdowns so the board can track where overspending occurs (for example, snow-related mitigation). He told the committee a draft budget book will be made available to the board as a point of reference, with the caveat that final amounts will depend on state and mayoral decisions later in the spring.
