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Sparta Area School District approves budget tweaks, sets aside $2.6M for stabilization and transfers $350,000 to capital fund
Summary
The board approved budget revision No. 4, designated $2,601,004.40 for revenue stabilization and authorized a $350,000 transfer to Fund 46 to maximize state aid; votes on the financial items passed unanimously on consent.
The Sparta Area School District board on a unanimous vote approved several finance actions intended to shore up short-term cash flow and plan for capital needs.
Administrators presented Budget Revision No. 4 for the 2025–26 operating funds, saying revenue rose by about $340,000 since the board last acted because of increased high-cost special education aid reimbursements. "Our revenue increased $340,000 from May," Miss Hauser said, summarizing key changes in revenues and expenses.
Miss Hauser told the board the district expects to end the fiscal year with approximately $11.4 million in fund balance. Under district policy the board must hold about 18% of operating expenses (roughly $8.5 million) for cash-flow purposes; administrators recommended designating $2,601,004.40 of the remaining balance for revenue stabilization to help offset projected budget shortfalls. The board approved that designation by roll call, 7–0.
Separately, administrators proposed a $350,000 transfer from Fund 10 to Fund 46, the district’s long-term capital improvement trust, to reach the top of a state aid secondary tier. Miss Hauser said that roughly 70% of that transfer will be returned as state aid in October, reducing the local tax levy. The board approved the transfer by roll call, 7–0.
Board members asked for clarifications about appropriate uses of the revenue stabilization designation. Miss Hauser emphasized it is intended for one-time needs rather than recurring payroll costs and said the district will continue annual reviews of the fund-balance percentage.
The budget revision, fund-balance designation and the Fund 46 transfer were placed on the consent agenda and approved in roll-call votes. The board’s action leaves additional fund balance available to respond to capital or one-time needs while preserving the district’s reserves, administrators said.
What’s next: administrators will finalize accounting entries during the impending year-end audit and will report back to the board on any audit adjustments.
