District projects larger near‑term deficit but multi‑year outlook improves; trustees urge steady pension contributions

District finance staff delivered the second interim update, reporting a revised current‑year deficit projection and laying out multi‑year projections and fund balances.

Staff said the district moved the current‑year projection from a $12.2 million deficit to about $14.7 million, driven by timing shifts (textbook costs), special‑education fluctuations and salary projection assumptions for future negotiations. Despite the current‑year deficit projection, the multi‑year view shows improvement, with staff projecting a $1.2 million deficit next year and an approximate $2.4 million surplus in 2026–27 under current assumptions.

The presentation noted key balances: an adopted ending fund balance line and reserves (3% board reserve, 3% state reserve) and a pension reserve trust balance of $5.1 million. Staff also noted developer fee funds with an ending balance projected near $27 million but cautioned those funds are earmarked for capital and subject to nexus rules.

A trustee commended building the pension reserve but warned the $5.1 million is small relative to the district’s net pension liability and urged continued contributions. Staff described next budget milestones: a public hearing on the draft budget planned for May 27, the governor’s May revise will affect projections, and final budget adoption scheduled for June 10.

Staff will continue budget development and return with updated multi‑year projections and public hearing materials as state budget details become available.