Executive director reports revenues up, insurance spike adds $1.6M pressure to district finances

John Coleman, introduced by President Kennedy as the executive director of business services, presented the Mukilteo School District’s quarterly financial report for March–May 2026. He said year-to-date revenues were up roughly 2%, driven by approximately $2.5 million more in local funding (linked to levy timing) and about $2.5 million more in state funding, largely tied to special education and transportation reimbursements. "We have $15,600,000 currently in the bank on hand," he told the board.

Coleman reviewed expenditures to date ($240.7 million vs. $234.9 million last year) and noted the district has 94.1% of its budget committed. He said the projected ending fund balance is $22.6 million (6.7% of budgeted revenue) but emphasized a late insurance premium increase will reduce that cushion: the district now expects roughly a $1.6 million increase to total insurance costs next year, about $850,000 more than budgeted earlier in May. Coleman said staff will manage spending conservatively to try to raise the beginning fund balance used in next year’s budget.

The presentation included breakdowns by revenue source (state, local, federal), object categories for spending (salaries, benefits, materials/supplies), and notes on unpredictable elements such as state special-purpose allocations that finalize late in the cycle. Board members asked clarifying questions during the presentation; no formal action was taken on the presentation itself.