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Clover Park updates budget: $26.4M fund balance, board told to plan for $12M reductions amid insurance spike
Summary
Finance staff reported a $26.4 million general fund balance in April and outlined a budget development plan that targets a 6% fund balance, anticipates about $12 million in expenditure reductions, and must absorb a roughly 51% increase in the district's insurance assessment (about $2 million). Preliminary budget review is scheduled for June 22 with a public hearing and resolution in July.
Matt Young, director for business services, told the board the district ended April with approximately $26.4 million in general fund balance, boosted by Impact Aid receipts and levy collections.
"We ended April with approximately $26,400,000 in our general fund balance," Young said, describing seasonal revenue timing and Impact Aid receipts that contributed to the April balance.
Amy Day, leading the budget development presentation, said state funding represents about 76% of district revenue and Impact Aid accounts for a material federal revenue source (she referenced Impact Aid at over $16 million). Day outlined targets the board discussed in April: a 6% fund balance goal with a 5% minimum required by board policy; staff are working to identify roughly $12 million in expenditure reductions for 2026–27 to meet those targets while managing significant cost pressures.
Major cost drivers discussed included utility increases, fuel and transportation costs and a large increase in the district's Washington Schools Risk Management Pool (WSRMP) insurance assessment. Day said the district initially budgeted for an 18% increase but the pool later indicated a larger adjustment; staff are now planning for roughly a 51% increase in the assessment that amounts to about $2 million in additional cost to the district.
Board members asked whether insurance costs could be negotiated; staff said changing providers would be a multiyear process and that the pool's revised estimate followed actual payouts in recent quarters. Directors and staff also discussed the transportation fund mechanics, enrollment forecasting as the primary revenue driver, and options such as electric buses as longer‑term conversations.
Next steps: staff will present a preliminary budget on June 22, hold a public hearing and seek a resolution on the 2026–27 budget in July, and continue refining forecasts and proposed expenditure reductions for board consideration.
