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Board hears budget review showing multi‑million shortfall; special‑education costs flagged
Summary
Trustees were presented with a budget overview showing enrollment declines and a projected $2.2 million negative general‑fund balance next year. Presenters said special‑education costs are rising (estimated at $15.5 million) and staff outlined a timeline of budget actions aimed at restoring a positive budget status.
The Sunny Cro School District governing board on March 5 heard a detailed budget overview that highlighted a multi‑year decline in enrollment and a looming budget shortfall.
Chief business staff (Marilyn) told trustees the district has lost about 600 students over nine years — a decline the presentation estimated as roughly a $9 million annual revenue loss — and that the district is projecting a $2.2 million negative general‑fund balance in the coming year. Marilyn said special‑education spending currently totals about $15.5 million, of which approximately $5 million is from federal and state sources and about $10.5 million is being covered by the general fund.
"We estimate our special education cost at $15.5 million," Marilyn said during the presentation, noting federal contributions remain far short of the 40% level envisioned by federal law and that the district currently receives roughly 8% federal support for special education.
The presentation outlined factors driving the deficit: long‑term enrollment decline, step and benefit cost increases, and uncertainty around state and federal revenues tied to the governor’s May revise. Board members and staff described an active process of budget reduction planning, county partnership and multiple interim reports leading up to a proposed budget adoption in June and a first interim target in December 2026.
Board members said they are working to preserve jobs where possible. "We're working really creatively to to certify positive and ensure that we don't have any cuts," Board Member Antonio Martinez said, adding the district is exploring options to avoid layoffs while balancing required reserve targets.
Public commenters linked the budget discussion to accountability and priorities. Alison Murio, a community member, told the board the district faces a "severe fiscal crisis" and called for clearer accountability around administrative spending and priorities.
Next steps: staff will bring a second interim budget update at a special board meeting March 12 and prepare a May financial revision in advance of the state May revise; trustees said they plan further budget hearings and a proposed budget for adoption in June.
