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Rockwood auditors give clean opinion; board hears preliminary 2026–27 budget amid tax-collection pressure
Summary
Auditors from Kerber and Buckle issued an unmodified (clean) opinion on Rockwood School District's 2024-25 financial statements and federal grants. Finance leaders presented preliminary 2026-27 budget projections that assume a 95% property-tax collection rate and a modest use of reserves as state transportation and legislative changes create uncertainty.
Auditors from Kerber and Buckle told the Rockwood Board of Education on Dec. 16 that the district's 2024-25 financial statements, federal awards and state compliance examinations received unmodified (clean) opinions.
"On the financial statement audit, we did issue an unmodified or clean opinion, which is the best opinion you can have," said Britney Wolfrom, the audit manager who presented the report. She told the board auditors found no material weaknesses in internal controls and no compliance findings for the programs they tested.
Board members then turned to the district's preliminary budget outlook for fiscal year 2026-27. Cindy Bias, the district chief financial officer, and Dan Steinbergie, the director of finance, said the presentation is an initial set of projections that will be refined before a formal proposed budget in May and a final vote expected June 16, 2026.
Key assumptions include a preliminary tax-collection rate of about 95% tied to implementation of Missouri Senate Bill 190 (the senior tax-freeze program) and the district's estimate that county tax collections are running far behind historical timing. "As of this week, our total collection of 2025 taxes from St. Louis County is only 14 million when we would have received about 80 million by this time in prior years," Bias said, calling the lag a "huge pressure on our cash flow." She said the district can meet payroll through January using fund balance rather than issuing a tax-anticipation note.
Finance staff also incorporated recent state law changes in their FY27 estimates, including elements of Senate Bill 727 that shift some state funding calculations toward enrollment and reduce transportation reimbursements. That change, together with declining enrollment and the collection-rate assumption, produces a preliminary plan that uses roughly $3.9 million in reserves for FY27, staff said. They described that use as manageable (under 1.5% of total expenditures) but not sustainable long term without restored revenue or future cost adjustments.
Board members pressed staff on the sensitivity of the budget to attendance and state funding. Steinbergie said a 2-percentage-point drop in attendance can cut state formula revenue by about $3 million, underscoring the district's emphasis on improving daily attendance. The board identified the governor's upcoming budget proposals and further legislative action on transportation funding as the primary external risks to the FY27 outlook.
The board moved to accept the audit report as presented; the motion passed by voice vote.
What happens next: finance staff will update the projections as county collections and state budget signals become clearer, incorporate results of contract negotiations with four employee groups, and present a formal proposed budget in May for a June approval vote.
