Tri-City United board approves revised FY26 budget after finance director flags $1.3M shortfall

Julie Grant, the district's newly introduced financial director, told the Tri-City United School District board on March 23 that audited beginning balances and recent revenue forecasts support a revised FY26 budget that reduces the district's previously adopted deficit but still projects roughly $1.3 million in deficit spending.

"We want to make sure that we're conservative with our enrollment numbers," Grant said while walking trustees through slides comparing the adopted and revised budgets. She explained that audited figures produced different beginning balances than earlier estimates and that the revised plan will reduce the general fund balance to a lower percentage than previously projected.

Grant said state foundation-aid forecasts improved in February but that spending growth still outpaces revenue through FY29, creating a long-term structural imbalance. She also noted several specific pressures on the budget, including inflationary costs (which she estimated in the 2.3–2.9% range), reductions in certain library and transportation reimbursements, and uncertainty around compensatory and other special-education funding streams.

Board members pressed for clarity on timing and accuracy. One trustee asked whether the district should expect the pattern from prior years ' where a larger projected deficit narrows when final actuals arrive ' to repeat this year. Grant said she budgets conservatively (higher expenses, lower revenue) and planned to run another revision in May to provide a tighter view before the fiscal year end. "Until I've had that full year ' or until the end of this year ' I won't be able to answer that," she said.

Trustees agreed to approve the revised FY26 budget as presented. The chair called for the motion; board member Susie Ripps moved to approve and another trustee seconded. The motion passed unanimously, 6-0.

Why it matters: The board noted a policy target of maintaining an unassigned fund balance of roughly 17% and that continued deficit spending would erode reserves needed to maintain facilities and core programs. Grant said she will continue revising and monitoring the budget, coordinating with facilities and program directors, and returning with an updated projection in May.

The board adopted the budget at the March 23 meeting and will proceed with routine oversight and follow-up revisions as necessary. The meeting adjourned at 5:57 p.m.