Board approves positive certification after 2nd interim report showing tighter multiyear outlook

Assistant Superintendent Jason Vaughn presented the Franklin‑McKinley School District’s 2025–26 second interim financial report and recommended a positive certification, citing updated multiyear projections aligned to the governor’s 2026–27 budget proposal and local enrollment forecasts.

"Based on current assumptions, $8.3 million will be left in our ending fund balance by 2027‑28," Vaughn told the board, and he highlighted risks including a lower COLA estimate (2.41% in the governor’s proposal, down from an earlier 3%) and the state’s proposed "settle up" maneuver that he said could divert roughly $909 per ADA — about $4.5 million for the district. Vaughn also described one‑time state funds the district expects to receive, including an estimated $2.56 million from the student support and professional development discretionary block grant and $1.0 million from learning recovery funds.

Trustees pressed Vaughn on assumptions and categorization. A trustee asked whether the governor’s proposal had been finalized; Vaughn responded that the proposal still requires legislative negotiation. Trustees also asked where administrative salaries appear in the budget and why actual ending fund balances have historically exceeded projections; Vaughn explained salary classifications, timing of expenditures and carryovers as common causes of variance.

After discussion, Trustee (S9) moved to approve the 2nd interim with a positive certification; the motion was seconded and passed unanimously. The board will use May‑revise and finalized state budget information during the district’s budget adoption process for fiscal year 2026–27.