Board hears five-year forecast, directs staff to prepare $350,000 alignment with tiered option

Staff presented a five-year fiscal forecast showing the district's revenue increases from state aid are unlikely to offset declines caused by falling enrollment and several potential legislative reductions. The model projects that, without alignments, the district's unassigned fund balance would fall below the board's 8% policy target in the near term and could move into multi-year deficits by FY29'FY31.

Staff identified drivers of the shortfall: declining enrollment (FY26 base ~1,927 students with a projected drop of about 35 students next year and larger cumulative drops thereafter), conservative state-aid assumptions (FY27 modeled at 2.69% rather than earlier expectations), and known or likely legislative changes (special-education transportation reimbursement reductions and compensatory-aid cuts). Staff also flagged district-level costs not covered by state aid, including an estimated $120,000 employer cost for paid family medical leave and additional substitute costs (described as an uncertain, several-hundred-thousand-dollar exposure).

Board members discussed trade-offs between preserving fund balance and minimizing additional program or staffing reductions. Several members warned that larger alignments would further increase class sizes and harm programming; others emphasized the need to be fiscally responsible to protect the district's credit position. After discussion the board coalesced around a staff recommendation to prepare alignment options starting at $350,000 with a tiered option (staff to show how to reach higher targets, e.g., up to $450,000 or $500,000) so the board can make informed choices before the preliminary-budget adoption deadline in June.

Administration will return with specific cut/proposal options and levy/tax-impact information for the board's upcoming budget decisions.