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Cobb schools present pro forma showing $186.2 million unassigned fund balance; CFO says federal shutdown currently poses minimal effect
Summary
CFO David Baker presented the district's pro forma financial statement showing an estimated unassigned general-fund balance of $186,200,000 as of 06/30/2025, above the board's one-month reserve target; staff said federal grant drawdowns were continuing and there was no current indication of disrupted reimbursements due to the federal shutdown.
At the Oct. 16 Cobb County School Board work session, Chief Financial Officer David Baker presented the district's pro forma financial statement for the fiscal year ending June 30, 2025, summarizing estimated general-fund revenues and expenditures and the district's year-end position.
Baker told the board the pro forma shows an estimated unassigned general-fund balance of $186,200,000, down from $198,300,000 the prior year but "comfortably in excess" of the board's one-month reserve target of $139,500,000. "Although unassigned fund balance decreased slightly from $198,300,000 last year, this was a planned decrease," Baker said, noting the decrease reflected planned spending such as absorbing health-insurance and retirement-contribution cost increases.
Baker reviewed the report's dashboard items, noting the district continues to use a state-recommended financial reporting format. He highlighted that the district holds high long- and short-term credit ratings and said the district has no long-term debt.
Board members asked whether the ongoing federal government shutdown would interrupt federal grant reimbursements. Baker and other staff said the U.S. Department of Education systems supporting routine grant transactions remained operational and that the Georgia Department of Education was continuing to process drawdowns. "From what we know at this time, the federal government shutdown should have minimal effect on our reimbursements related to federal grant transactions," Baker said.
The board discussed contingency options if programmatic federal cuts occur in the future. Superintendent Ragsdale and staff noted the district has used fund-balance loans in the past to bridge timing for capital cycles and that a one-time loan from fund balance has precedent but would require board authorization and long-term fiscal analysis if used to replace ongoing program funding.
Baker said the district will present final audited financial statements in January when the external audit is complete and will provide a quarterly financial report next month. Board members asked for continued updates on potential impacts to Title I and special-education funding and for information they could use if they choose to advocate on federal reporting rules or funding formulas.
