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District finance report shows FY26 shortfall and FY27 preliminary budget projecting possible statutory operating debt
Summary
Business manager Janetta told the Lake Park Audubon board the FY26 revised budget projects a negative unassigned balance (~$277,567) and FY27 preliminary projections show a deeper shortfall (unassigned negative ~$463,015), which could place the district in statutory operating debt absent additional cuts or enrollment increases.
The Lake Park Audubon School District’s business manager presented revised FY26 numbers and a preliminary FY27 budget that together show the district is operating with a thin margin and faces a larger projected shortfall next year.
Janetta told the board the FY26 unassigned fund balance is projected to end at approximately a negative $277,567, with total combined revenue of $13,024,000 and expenditures of $13,992,000. She said the district plans to use some reserved MA (medical assistance) revenue and other fund balances to cover deficits this year but cautioned that structural issues remain.
Turning to the FY27 preliminary budget, Janetta said the district projects an unassigned balance of roughly negative $463,015 and total revenues of $12,286,000 against projected expenditures of $12,699,000. “We’re projecting to be at a negative 3.45% fund balance, which would potentially put us into statutory operating debt,” Janetta said, adding that the numbers depend on enrollment, levy adjustments, teacher negotiation outcomes and expense surprises before June 30.
Board members asked detailed questions about community education, where receipts and expenditures are out of alignment, and whether coding errors or missing tuition revenue explain part of the deficit. Janetta recommended a line‑item review and a students‑to‑staff ratio analysis to identify potential savings and said the district plans to use some fund balances and levy adjustments to reduce the shortfall.
Members also discussed teacher negotiations, noting the preliminary budget includes potential negotiated costs; one board member reminded colleagues that the district must adopt a budget by June 30 under state statute and can reapprove a revised budget if needed.
The business office will prepare follow‑up materials requested by the board — including a deeper analysis of the community education deficit, a projection of potential cash‑flow shortages and a list of specific options for cuts or revenue increases to consider before the June statutory deadline.
Key figures reported by the business manager: FY26 unassigned balance ≈ -$277,567; combined FY26 revenue $13,024,000, expenditures $13,992,000. FY27 preliminary unassigned ≈ -$463,015; projected FY27 revenue $12,286,000, expenditures $12,699,000. The board asked staff to return with more detailed analyses ahead of the June budget adoption timeline.
