Budget preview: Pasco district projects $2.2M deficit for 2026-27, outlines path to balance

District finance staff presented a high-level preview of the 2026-27 budget and a multi-year projection to restore fund balance. The presenter said the budget is built on conservative enrollment (budgeting 17,190 students), legislative implicit price deflator (IPD) increases of 2.6% for salaries and operating costs, and capturing staff attrition where appropriate. The presenter stated general fund revenues are estimated at $353,000,000 and total expenditures at $355,600,000, producing a planned deficit of about $2.2 million and a projected ending general fund balance of approximately $14.1 million (about 4% of budgeted revenue).

The presenter walked through the district’s five funds and notable line items: the capital projects fund begins around $45.8 million (largely from the 2023 bond) with projected capital expenditures of about $34.6 million; the associated student body (ASB) fund is tracking to end near $2 million; the debt service fund will see property tax collections and scheduled principal and interest payments; and the transportation vehicle fund expects to collect roughly $1.35 million next year for bus replacement. The presenter noted state-level changes that reduced local effort assistance (LEA) by $734,000 this year and highlighted increases in Title I and special education funding.

On multi-year projections, staff showed progress from prior deficits (about $4.9M) down to this plan’s $2.2M deficit with the possibility of reaching net-zero in 2027-28 under the assumptions used. The presenter said the district will advertise the budget for public comment, present budget #4 on August 11 (followed by a public hearing), and must submit required documentation to OSPI by the end of August. Directors asked questions about the fund balance percentage and requested the presentation materials for review; the presenter agreed to circulate the slides after the meeting.