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District projects multi‑year deficits, trustees press staff on use of one‑time funds
Summary
Administrators presented a draft 2026–27 budget that assumes declining enrollment and rising special‑education and health costs; trustees pressed staff on using one‑time block grants to cover ongoing payroll and on transparency around fire insurance revenues and special‑education cost coding.
The district presented its draft 2026–27 budget and multi‑year projection amid detailed trustee questioning about the sustainability of assumed revenues.
Chief business officers told trustees the district expects enrollment to decline roughly 2.3% annually in the projection period and that special‑education costs and health‑insurance increases continue to pressure the general fund. Officials also noted one‑time fire‑related insurance revenues that have materially boosted reserves but are not recurring.
Trustees repeatedly asked staff about the timing and treatment of new state funds described in the governor’s May revise — specifically a discretionary block grant and learning‑recovery block grants that the district had not yet recognized in its adopted budget. Trustees also raised concerns about using one‑time funds for ongoing payroll obligations and about moving roughly $4.5M of special‑education transportation costs into general‑fund coding, which can obscure the true cost of special education.
Dr. Canal said the fiscal stabilization actions adopted earlier in the year are included in the multi‑year projection and that the administration will continue operational reviews — vacancy management, contracted services and special‑education delivery — and coordinate with external oversight (LEO) to support sustainability. He and trustees agreed to continue work streams on grant maximization and to return with clarifications before formal adoption.
Trustees asked for more transparent line‑item reporting and earlier updates if significant block grants come through, citing concerns that late, one‑time dollars could mask structural deficit items in future years. Administration said they will provide further detail to trustees and staff and that work to reconcile coding and expenditure tables would continue before final adoption.
