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Finance officer says local property and sales tax are stronger than expected, warns of state funding uncertainty
Summary
Brad Willard told the board on April 22 that ad valorem tax receipts have exceeded projections and sales tax timing temporarily boosted March revenue, but state funding formula changes and pending legislation could affect the 2026–27 budget.
Brad Willard, the district's finance and facilities officer, told the school board at its April 22 finance/facilities meeting that local ad valorem collections have outpaced projections and that a timing quirk produced higher sales tax receipts in March.
Willard said, “We have current year to date actuals of 29,200,000 where we had originally projected 28,” and explained that two sales tax payments were received in March that together covered February and March collections. He said the district's largest bond payment was made in February and only a smaller bond payment remains due in June.
The details matter because Willard said the district is preparing its 2026'27 budget during a reassessment year and must account for state funding adjustments. He warned that state revenue lines ' including the general fund, the EIA allocation and retiree insurance ' were affected by the district's 45th-day attendance count. "We will not be recouping any of that at the 135th day because we had December graduates," he said, meaning the district cannot rely on those students returning for a later count.
Willard presented other key figures: general fund expenditures are about 70% year to date (on track for this stage of the year), special revenue showed roughly $16.7 million in revenues vs. $16.9 million in expenditures, and debt service revenue is near $30,000,000 driven by ad valorem receipts. On student activity and food service, board members and staff discussed participation rates; a board member summarized breakfast participation in the range of about 66'69% and lunch near 70'74% across the district, which Willard said are cumulative counts.
Board members pressed Willard on several practical points. Dr. King asked how rental-account balances are used; Willard said those funds are treated as operations revenue and are used for general maintenance or needs at each location as they arise. A board member asked why professional and technical services spending is high; Willard replied that shortages in certified staff for specialized roles (special education, psychological services, speech-language pathology) have forced the district to contract agencies to provide services, increasing costs in that category.
Willard also identified possible statewide budget risks. He described proposals under discussion in the legislature, including a paid parental-leave measure that could expand leave from six weeks to 12 weeks and could affect school districts if they are included in the state's employee definition. "That piece is in there because there's a debate of whether school districts should be included within the state employee language. And if we're inserted or reinserted in that, then it would apply to us as well," Willard said. He added that the district had been told a continuing resolution is possible if the state budget is not finalized by June 30, which would force the district to operate under current funding levels for some period.
Why it matters: the near-term revenue strength gives the district room as it finishes the fiscal year, but legislative changes and attendance-count mechanics could reduce state funding available for the 2026'27 budget. Willard said he will continue to monitor changes and bring budget details to the board during upcoming budget work sessions.
The finance report concluded with Willard offering to take questions; the board discussed a range of follow-ups and the meeting moved on to facilities items.
