Finance director warns of tentative FY27 ED fund shortfall; proposes bus-lease timing change

Lisa presented the district's tentative FY27 budget and preliminary year-end estimates, telling the board that the figures are her best projections with several items still pending before final numbers are available in July and August. She said some revenues (notably interest income) exceeded expectations this year, but cautioned that next-year assumptions remain uncertain for items including evidence-based funding and health-insurance costs.

On transportation, Lisa proposed making the final payment of an old bus lease in the current fiscal year so that the transportation fund has a predictable two-lease structure next year. "As long as everybody's okay with that, that's what I'd like to do," she said; the board did not take immediate formal action but discussed the approach.

Lisa described project spending and fund balances: capital projects will draw on bond proceeds and transferred working cash, and the O&M fund would use reserves for planned projects. She noted that under the assumptions she used for the tentative FY27 budget the ED fund could end the year with a -$514,000 balance, and she said she deliberately did not give staffing budget increases this cycle because of that risk.

Board members asked clarifying questions about days-of-cash calculations and how project timing affects reserves. Lisa said the district remains above minimum reserve targets across most funds when project carryover is considered, but that FY27 requires careful monitoring. The budget will come back for formal action in September as required by state law.