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Bellevue board approves up to $10 million interfund loan as district cites temporary boosts and looming cuts
Summary
The Bellevue School District approved a resolution allowing an interfund loan not to exceed $10 million to stabilize general-fund cash flow. District leaders said one-time revenue boosts improved finances this year but warned of required $6–8 million cuts in coming years without sustained state funding.
The Bellevue School District board on Monday approved Resolution 2026-08 authorizing an interfund loan of up to $10 million to shore up general‑fund cash flow for the 2026–27 school year.
Interim CFO Lauren Telman told the board the district previously used a $13 million interfund loan in July 2025 and that the new request is smaller because the district’s cash position has improved. “The loan was utilized in July of 2025 and is required to be repaid on July of 2026,” Telman said, adding the new request is “not to exceed $10 million” to avoid projected negative cash-flow events over the next 12 months.
Superintendent Dr. Aramaki framed the request within a broader financial update: the district is “about $15.6 million better off than April of last year,” but that improvement reflects several one‑time factors. He described four “boosters” — unspent contingencies, position control holding vacancies, savings in materials and supplies, and an unusually large safety‑net special‑education reimbursement — that together produced a temporary improvement in the district’s fund balance.
District finance staff reported the total fund balance need to sustainably cover payroll and bills is about $27 million, with an April projection of ending fund balance around $1.5 million. Dr. Aramaki warned that, under current state funding assumptions, the district expects expenditures to outpace revenue in coming years and anticipates a recurring need to cut roughly $6–8 million in 2027–28 unless revenue or policy changes occur.
Board members voted to approve the interfund loan by voice vote. President Phil Block framed the measure as a cash‑flow tool that allows the district to meet payroll and avoid higher interest costs from other sources.
What happens next: the loan approval permits district staff to execute an interfund transfer from capital projects to the general fund as needed; the board scheduled a budget preview and a more detailed financial study session for later in June.
