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St. Helens SD warns of tight finances; finance director proposes TAN application and spending freeze
Summary
Finance staff told the school board the district’s preliminary ending fund balance is about $224,000, flagged encumbrances and possible overspends, and said staff will prepare a tax‑anticipation note application and freeze nonessential general‑fund spending while finalizing numbers.
The St. Helens School District’s finance staff told the school board that the district is facing a tight fiscal picture, with a preliminary projection showing an ending fund balance of about $224,000.
In a presentation to the board, Linda Murray, who led the financial report, said the figure is an early estimate and that additional review of encumbrances and special‑revenue allocations could change the projection. "We're showing an ending fund balance of only 224,000," Murray said, noting the figure "is a projection. This isn't something to be totally concerned [about] yet — we get more information as we go." She described steps already taken, including reviewing purchase orders and cutting nonessential general‑fund spending.
Murray told the board staff will begin an application for a tax anticipation note (TAN) to preserve the district’s ability to meet payroll in the fall if property tax receipts are delayed, but she said any loan decision would be returned to the board for approval in April. "We're going to go ahead and start the application for TANs loan," she said, adding that applying does not obligate the district to borrow.
The finance report also noted the district’s audit is substantively complete and will be presented to the board for approval next month; Murray said final confirmations with the auditors remain outstanding. She outlined operational options under consideration to stabilize finances, including ensuring payroll FTEs are charged to the appropriate special‑revenue funds, reviewing open purchase orders to reduce encumbrances, and pausing nonessential hires.
Board members and staff discussed structural pressures on the budget, including sustained declines in enrollment and continuing high personnel costs. Murray said administrators have already begun planning for the 2026–27 budget and that, if necessary, the board could consider a supplemental appropriation later in the fiscal year to address payroll timing and appropriation limits.
The board directed staff to return with updated numbers and any formal TAN decision at the April meeting. The district will also bring the completed audit to the board for approval before finalizing state reporting and requests for April state school fund distributions.
The finance presentation and related discussion will inform the board’s decisions during the 2026–27 budget process.
