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Board hears fiscal briefing on cash flow, June payroll spikes and May 'true-up'; union urges using reserves to save jobs
Summary
District finance staff outlined cash-flow timing risks, the June 'balance of contract' payroll spike and the May state 'true up'; a Licensed Staff Association representative urged the board to consider reserve funds to avoid staff cuts, and staff said the decision rests with trustees.
Director Allen and finance staff told the North Santiam SD 29J board that timing of revenues and expenditures creates cash-flow risk in March–June and highlighted an expected payroll spike in June tied to 'balance of contract' payments to staff.
Lede details: Allen presented the general fund projection (about $34.8 million in projected revenue and $30.8 million in projected expenditures for the fiscal year) and explained that the district pays out additional contract balances in June—sometimes producing three paychecks that month for staff—which increases cash needs late in the fiscal year.
May true-up and fund balance: Finance staff member Rhonda explained the May 'true up' that reconciles prior-year average daily membership and other weighted funding factors; because the true-up is calculated after the fiscal year, districts can unexpectedly owe or be owed funds in May of the following year. Allen and Rhonda said this timing is one reason the district maintains an ending fund balance policy (the board’s working target is about 7 percent) to guard against volatility.
Union plea: a representative of the Licensed Staff Association asked the board to "kindly, but urgently" consider using reserve funds to protect positions that support students, saying, "Isn't this the reason why we have reserve funds?" The association noted the state recommendation of a 5 percent reserve and pressed the board to explain if reserves will not be used.
Superintendent and board response: Superintendent Loving clarified that the decision to use reserves rests with the board. Finance staff and trustees discussed the tradeoffs between conserving reserves to manage risk and using one-time funds to protect current staff.
What happened next: There was no board action taken on reserves during the meeting; the union’s request was heard publicly and will be part of ongoing budget deliberations as the district prepares for next year’s reductions. Staff said they will continue to produce cash-flow projections and provide additional details to trustees.
Context and implications: Finance staff emphasized the structural nature of school budgets—large payroll obligations and revenues that come unevenly through the fiscal year—making reserve management a central policy choice for trustees as they weigh service levels and potential staffing reductions.
Ending: Board members asked follow-up questions and thanked staff for the detailed cash-flow explanation. The board did not vote on using reserves in this session.
