Sultan School District presents 2024–25 budget and four‑year outlook showing roughly $1.19M ending fund balance

District finance staff presented the Sultan School District’s proposed 2024–25 budget and four‑year outlook at the board meeting, reporting an anticipated August 31, 2025 ending fund balance of about $1,186,638 and an operating shortfall for the year of roughly $148,300.

The finance presenter said the general fund revenues in the budget are about $41,815,624 with total appropriations near $41,998,986; transfers include an annual non‑voted debt payment (LG1) of approximately $97,400. “The budget is defined as authority to expend,” the presenter said, emphasizing that including grant or revenue capacity in the budget does not commit the district to spending unless awards or decisions are made.

The presenter identified two corrections that materially improved the district’s multi‑year outlook. First, a forecasting error in the earlier draft had removed High‑Poverty Learning Assistance Program (HP LAP) eligibility for buildings beginning in 2025–26; the corrected model assumes buildings remain eligible, adding significant recurring revenue (about $700,000 per year, the presenter said). Second, the forecast had undercounted transitional kindergarten (TK) enrollment in later years; adding a third TK session (raising modeled TK from 36 to 54 students) produced additional projected revenue.

Staff also detailed budget line items: staffing accounts for roughly 79.2% of general fund appropriations (about $32.98 million), materials and operations about 20.6% (about $8.92 million), and transfers about $97,400. The capital projects fund shows approximately $5.87 million in revenues and about $3.91 million in expenditures after staff added omitted recurring technology and ongoing project costs to the draft.

The Transportation Vehicle Fund includes capacity for a possible electrified‑bus grant (presenter cited ~$4.5 million as a plausible award). The presenter said those revenues and corresponding expenditures are included as authority to spend only if the district applies for and receives such a grant.

Separately, staff explained that a February migration from Skyward to the vendor’s updated package (referred to in the presentation as “Cumulative”) has produced a known reporting issue that overstated the district’s reported FTE counts by duplicating supplemental assignments. “We are not overstating pay or revenue,” the presenter said; staff and the Educational Service District reviewers will correct the displayed FTE values.

Dan, a district staff member who spoke during the meeting, reported current enrollments are roughly 92–94 students over budgeted counts; staff said a conservative expectation is to finish the enrollment cycle about 40–50 students over budget, which would help the fund balance. Presenter and staff told the board there will be a resolution on the regular business agenda to adopt the appropriations (the budget provides authority to expend) and that Dan will sign the required MSO disclosure form as part of the closing procedures.

The presenter noted the State Auditor Office’s Fiscal Intelligence Tool rates many districts as concerning on some metrics; Sultan’s overall rating was described as 'concerning' due chiefly to weighted fund‑balance metrics. While the corrected forecasts keep the district in the black across the four‑year outlook, the presenter said the results do not yet meet the board’s reinstated goal of a 4% minimum fund balance and that further revenue enhancements or cost containment will be needed to reach that target.

The board thanked staff for clarifications about the FTE reporting discrepancy and other corrections; a motion to adjourn passed unanimously and the meeting ended shortly after 6 p.m.