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Oak Grove projects tighter budgets after rising special-ed and health‑care costs; board adopts first interim report
Summary
The district's first interim budget shows revenue increases but larger expense growth—special education and health‑care contributions pushed a $2.8M rise in deficit spending to $19.6M and cut the unrestricted ending balance; trustees approved the first interim report and will rely on reserves in coming years.
Associate Superintendent Evans presented the Oak Grove School District's first interim budget on Dec. 12, reporting revised revenue and expenditure figures and a multi‑year projection that uses one‑time funds and reserves to bridge structural gaps.
Evans told the board that revenues improved by roughly $5.8 million since the June adopted budget (including RDA carryovers), but expenditures rose faster. The board manager reported that the anticipated deficit for 2024–25 grew from $16.8 million to $19.6 million; Evans attributed much of the increase to higher special‑education services, added staff supports and an increased district contribution to employee health care. That change reduced the district's projected ending fund balance from about $31.5 million to $28.6 million, of which roughly $22 million is restricted for specific programs.
The district's average daily attendance (ADA) is about 93.8% and trending upward; staff estimated they may reach just over 94% in the months ahead. The presentation noted that declining enrollment remains a long‑term challenge (county projections cited), and that one‑time pandemic and recovery funds are being depleted.
To balance the multi‑year projection, the district plans transfers from Special Reserve: about $9.5 million in 2025–26 and about $10 million in 2026–27 were shown in the presentation. Evans emphasized that while the reserve strategy provides near‑term stability, the board should work on bringing recurring revenues and expenditures into alignment to avoid structural reliance on reserves.
Board members discussed contract and staffing strategies to reduce contracted special‑education costs and noted that negotiated salary and benefits outcomes will affect future projections; the district's multi‑year outlook currently does not include future negotiated increases. After discussion the board approved the first interim budget report by roll call.
What to watch: the district will update numbers at the second interim (March) and as bargaining outcomes are finalized. The board has signaled interest in reducing contractor reliance for special education to both improve program consistency and control costs.
