Board approves FY26 category transfers; superintendent warns of FY27 state‑aid cuts and possible $3M fund‑balance use

At the May 20 meeting the board voted to approve a set of FY26 budget category transfers and intra‑category adjustments intended to cover a projected overrun in operations of plant. Ms. Jones said she would present approved transfers to the county council once the board had acted.

Ms. Jones reported that the district received $2,300,000 in community‑school revenue and expects to spend about $1,600,000, leaving underspending that will be preserved for those schools. She outlined revenue and expense movements that together produce an estimated revenue shortfall of about $1.2 million offset by projected expense savings, and requested transfers totaling roughly $400,000 from four categories to cover plant overages.

Looking ahead to FY27, Ms. Jones said a new final state‑aid calculation issued the prior day could produce a funding cut of about $224,000—mostly affecting pre‑K funding—and that an appeal might recoup a portion of that amount. She said the board’s earlier proposal to use about $2 million of fund balance may now be closer to $3 million, depending on county action, and clarified the district’s policy target (approximately 16% reserve) while noting the board’s current fund balance and cash‑flow needs.

Board members asked about bus‑fuel cost impacts and about a possible county request for partial support of an $800,000 weapons‑detection proposal (county might fund $400,000 and request a $400,000 match). Ms. Jones described the county’s consideration of a carve‑out for nonrecurring costs so the expense would not become part of future maintenance‑of‑effort calculations.

The board approved the transfer motion by voice vote and authorized staff to proceed with intra‑category smoothing where appropriate; Ms. Jones asked for the board’s timely action so she could seek county council clarity for FY27 budgeting.