Lockwood K-12 budget committee hears preliminary $266,000 shortfall as insurance and fuel costs rise

Diane, the district official presenting the preliminary figures, told the budget committee that "I put in a preliminary budget ... and we're over by $266,000," saying that amount reflects basic operating costs such as salaries, benefits and property insurance with no discretionary additions.

The committee heard that insurance renewals came in at an increase of 4%, slightly above the administration's target of about 3.5%. Members also flagged rising transportation costs tied to high diesel prices; the chair asked staff to check whether the district's transportation contract would allow a diesel surcharge adjustment.

Committee members discussed options for covering the shortfall: shifting some rent-derived revenue where permissible, using grant flex funds, adjusting athletics and travel budgets, and reviewing the maintenance/reserve accounts. Diane reported reserves in the meeting as "1,100,000,000.0" and noted about $84,000 was earmarked for major maintenance; staff said they would review investments to determine whether some funds could be used to reduce pressure on the general fund (the reserves figure is reported as stated in the meeting and flagged for internal verification).

Officials emphasized calendar constraints: the budget will be finalized on the 14th and must be submitted to the county in August, and staff said they will meet to identify moves (reassigning grants, adjusting encumbrances and line items) to narrow the shortfall before that deadline.

Next steps: staff will refine line items (including athletics after a meeting with Jake), confirm whether transportation vendor contracts trigger a diesel surcharge and report back to the committee with updated options and verified reserve figures.