District financial update shows $542,901 insurance-driven rise in projected expenditures

Dr. Soni Hughes, the district business officer, told the board the general fund projection for the year ending 07/31/2024 showed $137,500,000 in revenue and $152,700,000 in expenditures. "We anticipate to bring in 137,500,000," she said, and later added, "We anticipate at of July 31 to spend 152,700,000, and that is $542,901 higher than the adopted budget."

Hughes said the higher expenditure estimate reflects a liability insurance premium that arrived after the board adopted the budget and that market volatility and inflation are driving similar increases across Oregon school districts. She noted the district will reconcile year-end invoices and that auditors are scheduled to perform the final audit in late October, which could change the final ending fund balance. "So up until the final audit, we will have the final number about the ending fund balance for fiscal year 23, 24," she said.

Directors pressed for details about the insurance increase. Hughes said the change is a market phenomenon affecting pooled insurers and explained the district examined options such as increasing deductibles to reduce premiums. She gave example savings estimates tied to deductible choices and said the district would continue to explore cost-savings measures while monitoring enrollment-driven revenue changes in October.